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MarketScreener Homepage  >  Equities  >  Stock Exchange of Hong Kong  >  Fosun International Limited    0656   HK0656038673

FOSUN INTERNATIONAL LIMITED

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Fosun International : PROPOSED ADOPTION OF THE YUYUAN TRANCHE I EMPLOYEE SHARE OPTION INCENTIVE SCHEME

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10/08/2019 | 06:00am EST

THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

If you are in any doubt as to any aspect of this circular or as to the action to be taken, you should consult a stockbroker or other registered dealer in securities, bank manager, solicitor, professional accountant or other professional adviser.

If you have sold or transferred all your shares in Fosun International Limited, you should at once hand this circular to the purchaser(s) or transferee(s) or to the bank, stockbroker or other agent through whom the sale or transfer was effected for transmission to the purchaser(s) or transferee(s).

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this circular, 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 circular.

PROPOSED ADOPTION OF THE YUYUAN TRANCHE I EMPLOYEE

SHARE OPTION INCENTIVE SCHEME

A notice convening the EGM to be held at 10 a.m. on Wednesday, 30 October 2019 at 39th Floor, Tower S1, the Bund Finance Centre, 600 Zhongshan No.2 Road (E), Huangpu District, Shanghai, the PRC, as set out in this circular and a form of proxy are despatched together with this circular. Such form of proxy is also published on the websites of the Hong Kong Stock Exchange (www.hkexnews.hk) and the Company (www.fosun.com). Whether or not you are able to attend the EGM, you are requested to complete, sign and return the enclosed form of proxy in accordance with the instructions printed thereon and return the same to the share registrar of the Company, Computershare Hong Kong Investor Services Limited, at 17M Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong as soon as possible but in any event not less than 48 hours before the time appointed for the holding of the EGM or any adjournment thereof. Completion and return of the enclosed form of proxy will not preclude you from attending and voting in person at such meeting or any adjournment meeting should you so wish.

8 October 2019

CONTENTS

Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

i

Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1

Letter from the Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

Appendix I - Summary of the principal terms of the Yuyuan Tranche

I Employee Share Option Incentive Scheme . . . . . . . . . . . . . . . . . . . . .

9

- i -

DEFINITIONS

In this circular, unless the context otherwise requires, the following expressions have the following meanings:

"Board"

the board of Directors

"Business Day"

any day (excluding Saturday and Sunday) on which the Hong Kong

Stock Exchange generally is open for business of dealing in

securities

"Company" or

Fosun International Limited (復星國際有限公司), a company

"Fosun International"

incorporated in Hong Kong with limited liability, the shares of

which are listed on the Main Board of the Hong Kong Stock

Exchange

"CSRC"

China Securities Regulatory Commission

"Date of Grant"

the date on which an Offer is made to a Participant which shall be a

trading day on the SSE

"Director(s)"

the director(s) of the Company

"EGM"

the extraordinary general meeting of the Company to be held at 10

a.m. on Wednesday, 30 October 2019 at 39th Floor, Tower S1, the

Bund Finance Centre, 600 Zhongshan No.2 Road (E), Huangpu

District, Shanghai, PRC for the purpose of considering and

approving the proposed adoption of the Yuyuan Tranche I

Employee Share Option Incentive Scheme

"Exercise Period"

the period during which a Grantee may exercise the Options in

accordance with the terms of the Yuyuan Tranche I Employee

Share Option Incentive Scheme

"Exercise Price"

the price per Yuyuan Share at which a Grantee may subscribe for

the Yuyuan Share upon the exercise of an Option

"Grantee(s)"

any Participant who accepts an Offer in accordance with the terms

and conditions of the Yuyuan Tranche I Employee Share Option

Incentive Scheme

"Hong Kong"

the Hong Kong Special Administrative Region of the PRC

"Hong Kong Stock Exchange"

The Stock Exchange of Hong Kong Limited

"Latest Practicable Date"

27 September 2019, the latest practicable date prior to the printing

of this circular for ascertaining certain information contained herein

- 1 -

DEFINITIONS

"Listing Rules"

The Rules Governing the Listing of Securities on the Hong Kong

Stock Exchange

"Offer"

the offer of the grant of an Option made in accordance with the

Yuyuan Tranche I Employee Share Option Incentive Scheme

"Option(s)"

option(s) to be granted to subscribe for the Yuyuan Shares pursuant

to the Yuyuan Tranche I Employee Share Option Incentive Scheme

"Participant(s)"

means the senior and mid-level management team of Yuyuan and

the core management team of the wholly-owned subsidiaries of

Yuyuan

"PRC"

the People's Republic of China, which for the purpose of this

circular only, excludes Hong Kong, Macau Special Administrative

Region of the People's Republic of China and Taiwan

"PRC Company Law"

the Company Law of the PRC (中華人民共和國公司法), as

amended, supplemented or otherwise modified from time to time

"PRC Equity Incentives Measures"

the Measures for the Administration of Equity Incentives of Listed

Companies of the PRC (中華人民共和國上市公司股權激勵管理辦

), as amended, supplemented or otherwise modified from time to

time

"PRC Securities Law"

the Securities Laws of the PRC (中華人民共和國證券法), as

amended, supplemented or otherwise modified from time to time

"RMB"

Renminbi, the lawful currency of the PRC

"Share(s)"

ordinary share(s) of the Company

"Shareholder(s)"

holder(s) of the Share(s)

"SSE"

The Shanghai Stock Exchange

"Yuyuan"

Shanghai Yuyuan Tourist Mart (Group) Co., Ltd.* (上海豫園旅遊

商城(集團)股份有限公司), a limited liability company

incorporated in the PRC, whose A shares are listed on the SSE

(stock code: 600655), and a non-wholly owned subsidiary of the

Company

"Yuyuan Share(s)"

the A share(s) of RMB1.00 each in the capital of Yuyuan which is/

are listed and traded on the SSE

"Yuyuan Supervisory Committee"

the supervisory committee of Yuyuan

- 2 -

DEFINITIONS

"Yuyuan Tranche I Employee Share Option Incentive Scheme" or "Scheme"

"Yuyuan Tranche I Share Option Incentive Scheme"

the tranche I employee share option incentive scheme of Yuyuan proposed to be adopted by the Shareholders at the EGM, the principal terms of which are set out in Appendix I to this circular

the tranche I share option incentive scheme of Yuyuan adopted by the Shareholders at the extraordinary general meeting dated 27 November 2018, the principal terms of which are set out in Appendix I to the circular of the Company dated 9 November 2018

"Yuyuan Tranche II Share Option

the tranche II share option incentive scheme of Yuyuan adopted by

Incentive Scheme"

the Shareholders at the annual general meeting of the Company

dated 5 June 2019, the principal terms of which are set out in

Appendix I to the circular of the Company dated 25 April 2019

"%"

per cent

* For identification purposes only

- 3 -

LETTER FROM THE BOARD

Executive Directors:

Registered office:

Mr. Guo Guangchang (Chairman)

Room 808

Mr. Wang Qunbin (Chief Executive Officer)

ICBC Tower

Mr. Chen Qiyu (Co-President)

3 Garden Road

Mr. Xu Xiaoliang (Co-President)

Central

Mr. Qin Xuetang

Hong Kong

Mr. Wang Can

Mr. Gong Ping

Independent Non-executive Directors:

Mr. Zhang Shengman

Mr. Zhang Huaqiao

Mr. David T. Zhang

Mr. Yang Chao

Dr. Lee Kai-Fu

8 October 2019

To the Shareholders

Dear Sir or Madam,

PROPOSED ADOPTION OF THE YUYUAN TRANCHE I EMPLOYEE

SHARE OPTION INCENTIVE SCHEME

  1. INTRODUCTION

The purpose of this circular is to provide you with details of the ordinary resolution to be proposed for voting at the EGM relating to the proposed adoption of the Yuyuan Tranche I Employee Share Option Incentive Scheme to enable you to make informed decisions.

- 4 -

LETTER FROM THE BOARD

  1. PROPOSED ADOPTION OF THE YUYUAN TRANCHE I EMPLOYEE SHARE OPTION INCENTIVE SCHEME
    1. Introduction

The board of directors of Yuyuan passed a board resolution on 23 August 2019 and the shareholders of Yuyuan will consider a shareholder's resolution at its general meeting on 23 October 2019 to adopt the Yuyuan Tranche I Employee Share Option Incentive Scheme, subject to the approval by the Shareholders at the EGM. An ordinary resolution will be proposed at the EGM to pass the proposed adoption of the Yuyuan Tranche I Employee Share Option Incentive Scheme.

The Yuyuan Tranche I Employee Share Option Incentive Scheme is designed to provide the Participants with the opportunity to acquire interests in Yuyuan, which will improve the corporate governance structure of Yuyuan and align the interests of the Grantees and Yuyuan. The Board believes that the Yuyuan Tranche I Employee Share Option Incentive Scheme will promote a well- established incentive mechanism, motivate the pro-activeness of Yuyuan's senior and mid-level management team and the core management team of Yuyuan's subsidiaries, and effectively align the interests and benefits of Yuyuan and Yuyuan's shareholders and management team. This will encourage parties to concentrate on and work together for the long-term development of Yuyuan. Accordingly, the Board considers that it is in the interest of the Company and the Shareholders as a whole to adopt the Scheme.

The Yuyuan Shares to be issued upon an exercise of the Options granted under the Scheme will be the A shares of Yuyuan, not the Shares of Fosun International. The A shares of Yuyuan are listed on the SSE.

Yuyuan has selected the Black-Scholes model to calculate the fair value of the Options, and calculated the estimated fair value of the Options to be granted under the Scheme on the Latest Practicable Date by using this model (the actual fair value will be calculated on the Date of Grant). The total estimated fair value of the 3,650,000 Options is RMB6,690,000. Relevant factors for calculating the estimated fair value are set out below:

Price of the underlying shares: RMB8.63 per share (assuming the Date of Grant is the Latest Practicable Date, the closing price of Yuyuan Shares is RMB8.63 per share);

Exercise price: RMB8.62 per share;

Validity period: 1.5 years, 2.5 years and 3.5 years (based on the weighted average Exercise Period in each tranche);

Volatility rate: 33.86%, 30.84% and 25.80% (based on the respective historical volatility rate of Yuyuan in the past 1.5 years, 2.5 years and 3.5 years);

Risk-free interest rate: 2.62%, 2.70% and 2.79% (based on maturity yield of Chinese treasury bonds);

- 5 -

LETTER FROM THE BOARD

Dividend rate: 0

The calculation results of the fair value of the Options are subject to a number of assumptions of the parameters used herein and the limitation of the model adopted, therefore the estimated value of the Options may be subjective and uncertain.

Copy of the Yuyuan Tranche I Employee Share Option Incentive Scheme will be available for inspection at the Company's registered office at Room 808, ICBC Tower, 3 Garden Road, Central, Hong Kong during normal business hours from 9:00 a.m. to 6:00 p.m. on any Business Day from the date of this circular up to and including the date of the EGM.

2. Principal Terms of the Yuyuan Tranche I Employee Share Option Incentive Scheme

A summary of the principal terms of the Yuyuan Tranche I Employee Share Option Incentive Scheme to be adopted is set out in Appendix I to this circular. The draft Yuyuan Tranche I Employee Share Option Incentive Scheme and its summary have also been published on the website of the SSE.

As at the Latest Practicable Date, a total number of 3,881,063,864 Yuyuan Shares had been issued by Yuyuan. The total number of new Yuyuan Shares may be issued upon exercise of all Options to be granted under the Yuyuan Tranche I Employee Share Option Incentive Scheme is 3,650,000 Yuyuan Shares, representing approximately 0.094% of the total issued shares of Yuyuan as at the Latest Practicable Date and the date of the passing of the resolution to approve the adoption of the Scheme by the Shareholders (assuming that no Yuyuan Shares are repurchased, issued or cancelled by Yuyuan prior to the EGM). As at the Latest Practicable Date, save for the Yuyuan Tranche I Share Option Incentive Scheme and Yuyuan Tranche II Share Option Incentive Scheme, Yuyuan had no other existing share option schemes and there was no other outstanding options, warrants or any other securities to be exercised or converted into Yuyuan Shares.

The Participants of the Yuyuan Tranche I Employee Share Option Incentive Scheme include Yuyuan's senior and mid-level management team, as well as the core management team of Yuyuan's subsidiaries. The list of the proposed Grantees and the number of Options to be granted to each Grantee shall be determined by the board of directors of Yuyuan, reviewed by Yuyuan Supervisory Committee and approved by the shareholders of Yuyuan. The Scheme shall take effect upon completion of certain procedures. Please refer to pages 23 to 24 of this circular for details of such procedures. As at the Latest Practicable Date, except for the following procedures, all those procedures have been completed:

  1. The independent directors of Yuyuan collect proxy forms from all shareholders of Yuyuan in respect of voting on the Scheme;

- 6 -

LETTER FROM THE BOARD

  1. A general meeting of Yuyuan is convened for the voting on the Scheme, in which online voting shall be permitted in addition to on-site voting. The terms of the Scheme shall be voted in the general meeting, and be approved by more than 2/3 of the attending shareholders with voting rights. In addition to the directors, supervisors and senior management of Yuyuan, the shareholders individually or collectively holding more than 5% of Yuyuan Shares, the voting by other shareholders of Yuyuan shall be separately counted and disclosed. The shareholders of Yuyuan who are proposed Grantees or related to any of them shall abstain from voting;
  2. Fosun International convenes a general meeting to consider and approve the Scheme; and
  3. Yuyuan grants the Options to the Grantees within the prescribed time after approval of the Scheme at the general meetings of Yuyuan and Fosun International and upon the fulfilment of grant conditions as set out in the Scheme. The board of directors of Yuyuan shall be responsible for handling matters in relation to the grant, exercise and cancellation of the Options in accordance with the mandate granted to it at the general meeting of Yuyuan.

Yuyuan shall grant the Options to the Grantees and complete the relevant announcement and registration procedures within 60 days after the approval of the shareholders of Yuyuan and the approval of the Shareholders of Fosun International at their respective general meetings. Certain conditions shall be satisfied before the Options are granted to the Grantees. Please refer to pages 12 to 16 of this circular for details of grant conditions.

3. Listing Rules Implications

Pursuant to Chapter 17 of the Listing Rules, a share option scheme of a listed issuer or any of its subsidiaries must be approved by shareholders of the listed issuer in general meeting. Yuyuan is a non-wholly owned subsidiary of the Company. Accordingly, the Yuyuan Tranche I Employee Share Option Incentive Scheme is subject to the approval by the Shareholders at the EGM.

To the best knowledge, information and belief of the Directors, having made all reasonable enquiries, none of the Grantees and their respective associates is a Shareholder entitled to vote at the EGM. No Shareholder has any material interest in the resolution proposed to be resolved at the EGM and therefore, no Shareholder is required to abstain from voting in respect of this resolution at the EGM.

  1. RESPONSIBILITY STATEMENT

This circular, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief, the information contained in this circular is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this circular misleading.

- 7 -

LETTER FROM THE BOARD

IV. EGM

A notice convening the EGM to be held at 10 a.m. on Wednesday, 30 October 2019 at 39th Floor, Tower S1, the Bund Finance Centre, 600 Zhongshan No.2 Road (E), Huangpu District, Shanghai, the PRC, as set out in this circular and a form of proxy for the EGM are despatched together with this circular. Such form of proxy is also published on the websites of the Hong Kong Stock Exchange (www.hkexnews.hk) and the Company (www.fosun.com). Whether or not you are able to attend the EGM, you are requested to complete, sign and return the enclosed form of proxy in accordance with the instructions printed thereon and return the same to the share registrar of the Company, Computershare Hong Kong Investor Services Limited, at 17M Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong as soon as possible but in any event not less than 48 hours before the time appointed for the holding of the EGM or any adjournment thereof. Completion and return of the enclosed form of proxy will not preclude you from attending and voting in person at such meeting or any adjournment meeting should you so wish.

  1. CLOSURE OF REGISTER OF MEMBERS

The register of members of the Company will be closed from Monday, 28 October 2019 to Wednesday, 30 October 2019, both days inclusive, during which period no transfer of shares will be effected. In order to be eligible to attend and vote at the EGM to be held on Wednesday, 30 October 2019, all share transfer documents accompanied by the relevant share certificates and other relevant documents, if any, must be lodged with Computershare Hong Kong Investor Services Limited, the share registrar of the Company, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong, for registration no later than 4:30 p.m. on Friday, 25 October 2019.

VI. VOTING BY POLL

Pursuant to Rule 13.39(4) of the Listing Rules, any vote of shareholders at a general meeting must be taken by poll except where the chairman, in good faith, decides to allow a resolution which relates purely to a procedural or administrative matter to be voted on by a show of hands. Accordingly, the resolutions will be put to vote by way of poll at the EGM. An announcement on the poll vote results will be made by the Company after the EGM in the manner prescribed under Rule 13.39(5) of the Listing Rules.

VII. RECOMMENDATION

The Board (including the independent non-executive Directors) considers that the resolution relating to the proposed adoption of the Yuyuan Tranche I Employee Share Option Incentive Scheme is fair and reasonable and in the best interests of the Company and the Shareholders as a whole, and therefore recommends the Shareholders to vote in favour of the resolution at the EGM.

Yours faithfully,

By the Order of the Board

Fosun International Limited

Guo Guangchang

Chairman

- 8 -

APPENDIX I

SUMMARY OF THE PRINCIPAL TERMS OF

THE YUYUAN TRANCHE I EMPLOYEE SHARE

OPTION INCENTIVE SCHEME

The following is a summary of the principal terms of the Yuyuan Tranche I Employee Share Option

Incentive Scheme to be adopted at the EGM:

1. PURPOSE OF THE YUYUAN TRANCHE I EMPLOYEE SHARE OPTION INCENTIVE SCHEME

The purpose of the Yuyuan Tranche I Employee Share Option Incentive Scheme is (i) to improve the corporate governance structure of Yuyuan, (ii) to align the interests of the Grantees and Yuyuan, (iii) to promote a well-established incentive mechanism, (iv) to motivate the pro-activeness of Yuyuan's senior and mid-level management team and the core management team of Yuyuan's subsidiaries, (v) to effectively align the interests and benefits of Yuyuan and Yuyuan's shareholders and management team and (vi) to encourage parties to concentrate on and work together for the long-term development of Yuyuan.

2. PARTICIPANTS OF THE YUYUAN TRANCHE I EMPLOYEE SHARE OPTION INCENTIVE SCHEME AND BASIS OF DETERMINING THE ELIGIBILITY OF PARTICIPANTS

The Participants of the Yuyuan Tranche I Employee Share Option Incentive Scheme include Yuyuan's senior management and mid-level management team as well as the core management team of Yuyuan's subsidiaries. The independent directors, supervisors, shareholders individually or collectively holding 5% or more of the shares of Yuyuan or the ultimate controller and their spouse, parents or children are excluded from participating in the Yuyuan Tranche I Employee Share Option Incentive Scheme.

The basis of determining the eligibility of Participants is determined by the board of directors of Yuyuan in accordance with the PRC Company Law, the PRC Securities Law, the PRC Equity Incentives Measures and other applicable laws, regulations, regulatory documents and the articles of association of Yuyuan, with consideration of the actual circumstances.

The Grantees shall be determined and verified in accordance with the following mechanism:

  1. following the approval of the Scheme by the board of directors of Yuyuan, the names and positions of the Grantees will be published by Yuyuan internally for no less than 10 days;
  2. the list of Grantees will be reviewed by Yuyuan Supervisory Committee, taking into consideration any internal feedback. Yuyuan will publish the review results of Yuyuan Supervisory Committee and any internal feedback 5 days prior to the general meeting of Yuyuan; the list of Grantees adjusted by the board of directors of Yuyuan shall also be reviewed by Yuyuan Supervisory Committee.
  3. Yuyuan shall enquire whether any person with inside information has traded Yuyuan Shares and derivatives within 6 months prior to the publication of the draft Yuyuan Tranche I Employee Share Option Incentive Scheme. Unless there was no finding of insider trading under the applicable laws, regulations, and judicial interpretation, any person with inside

- 9 -

APPENDIX I

SUMMARY OF THE PRINCIPAL TERMS OF

THE YUYUAN TRANCHE I EMPLOYEE SHARE

OPTION INCENTIVE SCHEME

information who has traded Yuyuan Shares shall not be a Grantee under the Scheme. Any person who leaks the inside information, which leads to an insider trading, shall not be a Grantee under the Scheme either.

The following conditions must be satisfied before the Options are granted to any Grantee, including:

  1. no following event has occurred on the part of Yuyuan:
    1. issue of an accountants' report with adverse opinion or which indicates an inability to give opinion by a certified public accountant with respect to the accountants' report of Yuyuan for its most recent financial year;
    2. issue of an accountants' report with adverse opinion or which indicates an inability to give opinion by a certified public accountant with respect to the internal control of the accountants' report of Yuyuan for its most recent financial year;
    3. distribution of profits that contravenes with applicable laws and regulations, the articles of association of Yuyuan or public undertakings in the last 36 months;
    4. prohibition from implementation of a share option incentive scheme by laws and regulations or applicable listing rules of the SSE; or
    5. any other circumstances as determined by the CSRC or relevant regulatory authorities;
  2. no following event has occurred on the part of the Grantee:
    1. being identified as an ineligible personnel by the SSE in the last 12 months;
    2. being identified as an ineligible personnel by the CSRC and its resident agencies in the last 12 months;
    3. imposition of administrative penalties or measures prohibiting from entering into the market by the CSRC and its resident agencies in the last 12 months due to material non- compliance of laws or regulations;
    4. being prohibited from acting as a director or senior management personnel of Yuyuan under the PRC Company Law;
    5. being prohibited from participating in a share option incentive scheme of a listed company under laws and regulations or applicable listing rules of the SSE; or
    6. any other circumstances as determined by the CSRC or relevant regulatory authorities.

- 10 -

APPENDIX I

SUMMARY OF THE PRINCIPAL TERMS OF

THE YUYUAN TRANCHE I EMPLOYEE SHARE

OPTION INCENTIVE SCHEME

3. MAXIMUM NUMBER OF YUYUAN SHARES SUBJECT TO OPTIONS

The total number of new Yuyuan Shares may be issued upon exercise of all 3,650,000 Options to be granted under the Yuyuan Tranche I Employee Share Option Incentive Scheme is 3,650,000 Yuyuan Shares, representing approximately 0.094% of the total issued shares of Yuyuan as at the Latest Practicable Date and the date of the passing of the resolution to approve the adoption of the Scheme by the Shareholders (assuming that no further Yuyuan Shares are repurchased, issued or cancelled prior to the EGM). The source of shares under the Scheme shall be A shares of Yuyuan to be issued by Yuyuan to the Grantees.

An aggregate of 3,650,000 Options shall be granted to fifty Grantees pursuant to the Yuyuan Tranche I Employee Share Option Incentive Scheme and the allocation is as follows:

Percentage to the

total share capital

Number of

Percentage to the

of Yuyuan as at

Percentage to the

Yuyuan Shares to

total share capital

the date of the

total number of

be issued upon

of Yuyuan as at

approval of the

Number of

Options to be

exercise of

the Latest

Scheme by the

Name

Title

Options granted

granted

Options

Practicable Date

Shareholders (3)

Jiang Wei (蔣偉)

Chairman Assistant

136,000

3.73%

136,000

0.004%

0.004%

and Board

Secretary

Wang Jin (王瑾)

Vice President

136,000

3.73%

136,000

0.004%

0.004%

Zou Chao (鄒超)

Vice President

136,000

3.73%

136,000

0.004%

0.004%

Hao Yuming (郝毓鳴)

Vice President

136,000

3.73%

136,000

0.004%

0.004%

Zhang Yi (張毅)

President Assistant

107,000

2.93%

107,000

0.003%

0.003%

and Chief Growth

Officer

Shao Chong (邵沖)

President Assistant

97,000

2.66%

97,000

0.002%

0.002%

Hu Junjie (胡俊傑)

President Assistant

97,000

2.66%

97,000

0.002%

0.002%

Other Participants

10 mid-level

658,000

18.03%

658,000

0.017%

0.017%

management team

members of

Yuyuan

33 core management

2,147,000

58.82%

2,147,000

0.055%

0.055%

team members of

Yuyuan's

subsidiaries

Total

50 Grantees

3,650,000

100%

3,650,000

0.094%

0.094%

- 11 -

APPENDIX I

SUMMARY OF THE PRINCIPAL TERMS OF

THE YUYUAN TRANCHE I EMPLOYEE SHARE

OPTION INCENTIVE SCHEME

Notes:

  1. The maximum number of Yuyuan Shares to be issued to any of the above Grantees upon exercise of the options granted under all effective share option schemes of Yuyuan does not exceed 1% of the total share capital of Yuyuan.
  2. The total number of underlying shares of Yuyuan involved in all effective share option incentive schemes of Yuyuan shall not exceed 10% of total share capital of Yuyuan at the time of submission of relevant proposal to the general meeting of Yuyuan.
  3. Assuming that no further Yuyuan Shares are repurchased, issued or cancelled prior to the date of the EGM.
  4. None of the Grantees is a director, chief executive or substantial shareholder of Yuyuan and/or Fosun International.
  5. None of the Grantees had been granted of or is expected to be granted any options of Yuyuan Shares in the past 12 months before the proposed grant of the Options.

4. DURATION OF THE YUYUAN TRANCHE I EMPLOYEE SHARE OPTION INCENTIVE SCHEME AND GRANT OF OPTIONS

The effective term of the Yuyuan Tranche I Employee Share Option Incentive Scheme shall

commence from the Date of Grant to the date when all the Options granted to the Grantees have been exercised or cancelled, provided that the term shall not exceed 48 months.

The Date of Grant shall be determined by the board of directors of Yuyuan after the approval of the shareholders of Yuyuan and the approval of the Shareholders of Fosun International at their respective general meetings and the Date of Grant must be a trading day. Yuyuan shall grant the Options to the Grantees and complete the relevant announcement and registration procedures within 60 days after the approval of the shareholders of Yuyuan and the approval of the Shareholders of Fosun International at their respective general meetings. In the event that Yuyuan fails to complete the said procedures within the requisite period, Yuyuan shall disclose the reason for such failure promptly, the Yuyuan Tranche I Employee Share Option Incentive Scheme shall terminate immediately and any Options not granted shall lapse immediately.

5. MINIMUM PERIOD FOR WHICH OPTIONS MUST BE HELD BEFORE THEY CAN BE EXERCISED AND THE EXERCISE PERIOD

Minimum Period

The minimum period for which Options must be held before they can be exercised is 12

months from the Date of Grant.

- 12 -

APPENDIX I

SUMMARY OF THE PRINCIPAL TERMS OF

THE YUYUAN TRANCHE I EMPLOYEE SHARE

OPTION INCENTIVE SCHEME

Exercise Period

The date on which Options can be exercised by the Grantees must be a trading day, but no Options shall be exercised during the following periods:

  1. the period commencing from 30 days prior to the publication of regular results reports by Yuyuan, or, if the publication of such regular reports are postponed due to special reasons, 30 days before such reports are scheduled to be published and ending on the day before such reports are published;
  2. the period commencing from 10 days prior to the publication of the estimated results announcements and preliminary results announcements by Yuyuan;
  3. the period commencing from the date on which an event which may materially affect the trading price of Yuyuan's securities and other derivatives occurs or the decision making process of which begins, and ending on the second trading day after the announcement thereof is published in accordance with the relevant rules and regulations; and
  4. other periods as determined by the CSRC, the SSE and/or the Hong Kong Stock Exchange.

Subject to fulfilment of the conditions for exercising the Options, after the expiry of 12 months from the Date of Grant, Grantees may exercise their Options in three tranches as follows:

Percentage

of Option

Tranche

Exercise period

exercisable

First tranche

From the first trading day after the

33%

("First Tranche")

expiry of 12 months from the Date

of Grant to the last trading day

within 24 months from the Date of

Grant

Second tranche

From the first trading day after the

33%

("Second Tranche")

expiry of 24 months from the Date

of Grant to the last trading day

within 36 months from the Date of

Grant

Third tranche

From the first trading day after the

34%

("Third Tranche", together

expiry of 36 months from the Date

with First Tranche and Second

of Grant to the last trading day

Tranche, each a "Tranche")

within 48 months from the Date of

Grant

- 13 -

APPENDIX I

SUMMARY OF THE PRINCIPAL TERMS OF

THE YUYUAN TRANCHE I EMPLOYEE SHARE

OPTION INCENTIVE SCHEME

Upon the expiration of the Exercise Period, the Options that have been granted but not exercised shall be cancelled by Yuyuan.

Lock-up Restriction

The lock-up provisions of the Scheme shall be implemented in accordance with the PRC Company Law, the PRC Securities Law, and other relevant laws, regulations and regulatory documents and the articles of association of Yuyuan. Details of such lock-up provisions are as follows:

  1. If a Grantee is a director or a member of senior management of Yuyuan, the number of Yuyuan Shares that may be transferred each year during his/her term of office must not exceed 25% of the total number of Yuyuan Shares held by him/her. No Yuyuan Share held by him/her can be transferred within half year after his/her termination of office.
  2. If a Grantee is a director or a member of senior management of Yuyuan and if he/she disposes of any Yuyuan Shares within six months after the acquisition of the same, or buys back any Yuyuan Shares within six months after disposal of the same, all gains arising therefrom shall be vested with Yuyuan and the board of directors of Yuyuan shall recover all such gains.
  3. If, during the effective term of the Scheme, there is any change to the requirements regarding the transfer of shares by a director and senior management under the PRC Company Law, the PRC Securities Law, the other relevant laws, regulations and regulatory documents and the articles of association of Yuyuan, a Participant shall comply with the amended PRC Company Law, the PRC Securities Law, the other relevant laws, regulations and regulatory documents and the articles of association of Yuyuan, when transferring Yuyuan Shares held by him/her.

6. CONDITIONS FOR EXERCISING OPTIONS

During the Exercise Period, a number of conditions must be satisfied before the Grantees can exercise their Options, including:

  1. no following event has occurred on the part of Yuyuan:
    1. issue of an accountants' report with adverse opinion or which indicates an inability to give opinion by a certified public accountant with respect to the accountants' report of Yuyuan for its most recent financial year;
    2. issue of an accountants' report with adverse opinion or which indicates an inability to give opinion by a certified public accountant with respect to the internal control of the accountants' report of Yuyuan for its most recent financial year;

- 14 -

APPENDIX I

SUMMARY OF THE PRINCIPAL TERMS OF

THE YUYUAN TRANCHE I EMPLOYEE SHARE

OPTION INCENTIVE SCHEME

    1. distribution of profits that contravenes applicable laws and regulations, the articles of association of Yuyuan or public undertakings in the last 36 months;
    2. prohibition from implementation of a share option incentive scheme by laws and regulations or applicable listing rules of the SSE; or
    3. any other circumstances as determined by the CSRC or relevant regulatory authorities;
  1. no following event has occurred on the part of the Grantee:
    1. being identified as an ineligible personnel by the SSE in the last 12 months;
    2. being identified as an ineligible personnel by the CSRC and its resident agencies in the last 12 months;
    3. imposition of administrative penalties or measures prohibiting from entering into the market by the CSRC and its resident agencies in the last 12 months due to material non- compliance of laws or regulations;
    4. being prohibited from acting as a director or senior management personnel of Yuyuan under the PRC Company Law;
    5. being prohibited from participating in share option incentive schemes of a listed company under laws and regulations or applicable listing rules of the SSE; or
    6. any other circumstances as determined by the CSRC or relevant regulatory authorities;
  2. Yuyuan achieving the annual financial performance targets for each of the three financial years from 2019 to 2021 as follows:

Tranche

Financial performance targets

First Tranche

the basic earnings per Yuyuan Share for the year of 2019 is not

lower than RMB0.85 per Yuyuan Share, or Yuyuan achieves a

compound annual growth rate of no less than 12% in the net

profit attributable to the shareholders of Yuyuan for the year of

2019 as compared with the one for the year of 2018

Second Tranche

the basic earnings per Yuyuan Share for the year of 2020 is not

lower than RMB0.85 per Yuyuan Share, or Yuyuan achieves a

compound annual growth rate of no less than 12% in the net

profit attributable to the shareholders of Yuyuan for the year of

2020 as compared with the one for the year of 2018

- 15 -

APPENDIX I

SUMMARY OF THE PRINCIPAL TERMS OF

THE YUYUAN TRANCHE I EMPLOYEE SHARE

OPTION INCENTIVE SCHEME

Third Tranche

the basic earnings per Yuyuan Share for the year of 2021 is not

lower than RMB0.9 per Yuyuan Share, or Yuyuan achieves a

compound annual growth rate of no less than 12% in the net

profit attributable to the shareholders of Yuyuan for the year of

2021 as compared with the one for the year of 2018

  1. subject to the achievement of the relevant annual financial performance targets by Yuyuan, and according to the relevant salary and performance assessment operational code of Yuyuan, the performance results of the Grantee is "good" or above in the year immediately prior to the relevant performance assessment.

If any event in conditions (a) or (b) occurs, the Options which have been granted to, but not exercised by, the Grantee shall be cancelled by Yuyuan. If any target in conditions (c) or (d) could not be met, the Options granted to, but not exercised by, the Grantee of the relevant Tranche corresponding to the relevant year of performance assessment shall be cancelled by Yuyuan.

7. PAYMENT ON APPLICATION OR ACCEPTANCE OF OPTIONS

No payment shall be required to be made by the Grantee for the application or acceptance of Options under the Yuyuan Tranche I Employee Share Option Incentive Scheme.

8. BASIS OF DETERMINATION OF THE EXERCISE PRICE

The exercise price of the Options granted under the Yuyuan Tranche I Employee Share Option Incentive Scheme shall be RMB8.62 per Yuyuan Share.

The exercise price shall not be lower than the nominal value of the Yuyuan Shares, and shall not be lower than the higher of:

  1. the average trading price of Yuyuan Shares for the trading day immediately preceding the disclosure of the draft Scheme on the SSE, being RMB8.62 per Yuyuan Share; and
  2. the average trading price of Yuyuan Shares for the 60 trading days immediately preceding the disclosure of the draft Scheme on the SSE, being RMB8.24 per Yuyuan Share.

The draft Scheme was published on the website of the SSE on 27 August 2019.

9. RIGHTS ATTACHING TO THE OPTIONS

Prior to the exercise of the Options, the Grantees shall not be entitled to voting rights, rights to dividend, transfer or any other rights (including rights arising from the liquidation of Yuyuan).

- 16 -

APPENDIX I

SUMMARY OF THE PRINCIPAL TERMS OF

THE YUYUAN TRANCHE I EMPLOYEE SHARE

OPTION INCENTIVE SCHEME

The Yuyuan Shares to be issued upon exercise of the Options to be granted under the Scheme are A shares of Yuyuan. The Yuyuan Share to be allotted upon the exercise of an Option will be subject to all the provisions of the articles of association of Yuyuan for the time being in force, and will rank pari passu in all respects with the fully paid Yuyuan Shares in issue on the date of allotment, and accordingly will entitle the holders to participate in all dividends or other distributions paid or made after the date of allotment, other than any dividend or other distribution previously declared or recommended or resolved to be paid or made with respect to a record date, which shall be on or before the date of allotment, save that the Yuyuan Share allotted upon the exercise of any Option shall not carry any voting rights until the name of the Grantee has been duly entered on the register of members of Yuyuan as the holder thereof. No dividends shall be payable and no voting rights shall be exercisable in relation to Options that have not been exercised.

10. LAPSE OF THE OPTIONS

In any of the following circumstances, the Options which have been approved for their exercise but not yet exercised shall be exercised within the most recent tranche of the Exercise Period, otherwise, the said Options shall automatically lapse and shall not be exercised anymore:

  1. retirement of the Grantee after reaching the retirement age prescribed by the government and Yuyuan;
  2. demission of the Grantee due to loss of ability to work or death of the Grantee;
  3. resignation by the Grantee on his/her own initiative;
  4. the expiry of the labour or employment contract of the Grantee, which is not renewed due to the Grantee's personal reasons;
  5. dismissal of the Grantee due to his/her failure to achieve personal performance target;
  6. change of position of the Grantee due to reasons including incompetency, failure in assessment, breach of law or confidentiality, negligence or misconduct which adversely affects Yuyuan's interests or reputation;
  7. the Grantee becoming an independent director, supervisor or other personnel which is prohibited from holding Yuyuan Shares; or
  8. the Grantee being prohibited to act as a director or senior management personnel of Yuyuan under the PRC Company Law.

In any of the circumstances as set out in (a) to (b) above, any Options which have not been approved for their exercise shall be exercised within the most recent tranche of the Exercise Period after the Grantee leaves Yuyuan based on the designated calculation.

- 17 -

APPENDIX I

SUMMARY OF THE PRINCIPAL TERMS OF

THE YUYUAN TRANCHE I EMPLOYEE SHARE

OPTION INCENTIVE SCHEME

In any of the circumstances as set out in (c) to (h) above, any Options which have not been approved for their exercise shall lapse automatically. In grievous circumstances, the board of directors of Yuyuan may request for compensation from the Grantees taking into account the actual circumstances.

In the event that the following circumstances have occurred to the Grantees, the Options granted shall remain unchanged, and shall be locked-up and exercised in accordance with the Scheme:

  1. the position of the Grantee is changed but he/she is still within the scope of the Participants of the Scheme; or
  2. the Grantees retire after reaching the retirement age as per the rules of the PRC and Yuyuan, and are re-employed.

11. ADJUSTMENTS TO THE NUMBER OF OPTIONS AND THE EXERCISE PRICE

Adjustment to the number of Options

In the event of any capitalization of capital reserve, bonus issue, subdivision of shares, rights issue, share consolidation or capital reduction concerning Yuyuan Shares during the period commencing from the announcement of the draft Yuyuan Tranche I Employee Share Option Incentive Scheme to the completion of exercise of all outstanding Options, the number of Options to be granted to Grantees shall be adjusted as follows and in accordance with the procedures as set out in the Scheme:

  1. Capitalization of capital reserve, bonus issue or subdivision of shares Q = Q0 × (1 + n)

where: Q0 represents the number of Options before adjustment; n represents the ratio of increase per share arising from the capitalization of capital reserve, bonus issue or subdivision of shares, i.e. the number of shares increased per share upon issue of shares by capitalization of capital reserve, bonus issue or subdivision of shares; Q represents the number of Options after adjustment.

  1. Rights issue
    Q = Q0 × P1 × (1 + n) ÷ (P1 +P2 × n)

where: Q0 represents the number of Options before adjustment; P1 represents the closing price of the Yuyuan Share on the record date; P2 represents the price of Yuyuan Share in the rights issue; n represents the ratio of rights issue, i.e. the ratio of the number of Yuyuan Shares to be issued under the rights issue to the total share capital of Yuyuan before the rights issue; Q represents the number of Options after adjustment.

- 18 -

APPENDIX I

SUMMARY OF THE PRINCIPAL TERMS OF

THE YUYUAN TRANCHE I EMPLOYEE SHARE

OPTION INCENTIVE SCHEME

  1. Share consolidation or capital reduction Q = Q0 × n

where: Q0 represents the number of Options before adjustment; n represents the share consolidation ratio (i.e. each share shall be consolidated into n share) or capital reduction ratio (i.e. the reduced capital divided by the initial capital); Q represents the number of Options after adjustment.

  1. Dividend distribution, issue of new shares and share repurchase
    No adjustment will be made to the number of Options in the above circumstances.

Adjustment to Exercise Price

In the event of any dividend distribution, capitalization of capital reserve, bonus issue, subdivision of shares, rights issue, share consolidation or capital reduction concerning Yuyuan Shares during the period commencing from the announcement of the Yuyuan Tranche I Employee Share Option Incentive Scheme to the completion of exercise of all outstanding Options, the Exercise Price shall be adjusted as follows and in accordance with the procedures as set out in the Scheme:

  1. Capitalization of capital reserve, bonus issue or subdivision of shares P = P0 ÷ (1 + n)

where: P0 represents the Exercise Price before adjustment; n represents the ratio of increase per share arising from capitalization of capital reserve, bonus issue or subdivision of shares; P represents the Exercise Price after the adjustment.

  1. Rights issue
    P = P0 × (P1 + P2 × n) ÷ [P1 × (1 + n)]

where: P0 represents the Exercise Price before the adjustment; P1 represents the closing price of Yuyuan Shares on the record date; P2 represents the price of rights issue; n represents the ratio of rights issue, i.e. the ratio of the number of Yuyuan Shares to be issued under the rights issue to the total share capital of Yuyuan before the rights issue; P represents the Exercise Price after adjustment.

  1. Share consolidation or capital reduction P = P0 ÷ N

where: P0 represents the Exercise Price before adjustment; n represents the share consolidation or capital reduction ratio; P represents the Exercise Price after adjustment.

- 19 -

APPENDIX I

SUMMARY OF THE PRINCIPAL TERMS OF

THE YUYUAN TRANCHE I EMPLOYEE SHARE

OPTION INCENTIVE SCHEME

  1. Distribution of dividends P = P0 - V

where: P0 represents the Exercise Price before adjustment; V represents the distributable dividend per share; P represents the Exercise Price after adjustment.

  1. Issue of new shares and share repurchase
    No adjustment will be made to the Exercise Price in the above circumstances.

12. CANCELLATION OF OPTIONS GRANTED BUT NOT EXERCISED

Yuyuan may cancel the Options granted to, but not exercised by, the Grantees if:

  1. the Options are not exercised within the Exercise Period;
  2. failure to satisfy the conditions for exercising the Options;
  3. any of the following events occur on the part of Yuyuan:
    1. issue of an accountants' report with adverse opinion or which indicates an inability to give opinion by a certified public accountant with respect to the accountants' report of Yuyuan for its most recent financial year;
    2. issue of an accountants' report with adverse opinion or which indicates an inability to give opinion by a certified public accountant with respect to the internal control of the accountants' report of Yuyuan for its most recent financial year;
    3. distribution of profits that contravenes applicable laws and regulations, the articles of association of Yuyuan or public undertakings;
    4. prohibition from implementation of a share option incentive scheme by laws and regulations; or
    5. any other circumstances as determined by the CSRC or relevant regulatory authorities;
  4. any of the following events occur on the part of the Grantee:
    1. being identified as an ineligible personnel by the SSE in the last 12 months;
    2. being identified as an ineligible personnel by the CSRC and its resident agencies in the last 12 months;

- 20 -

APPENDIX I

SUMMARY OF THE PRINCIPAL TERMS OF

THE YUYUAN TRANCHE I EMPLOYEE SHARE

OPTION INCENTIVE SCHEME

  1. imposition of administrative penalties or measures prohibiting from entering into the market by the CSRC and its resident agencies in the last 12 months due to material noncompliance of laws or regulations;
  2. being prohibited from acting as a director or senior management personnel of Yuyuan under the PRC Company Law;
  3. being prohibited from participating in share option incentive schemes of a listed company under laws and regulations or applicable listing rules; or
  4. any other circumstances as determined by the CSRC or relevant regulatory authorities.

In addition, Yuyuan may cancel the Options granted to, but not exercised by, the Grantee of the relevant Tranche, if:

  1. Yuyuan fails to achieve the annual financial performance targets in the relevant year of performance assessment; or
  2. the Grantee fails to achieve "good" (or above) performance results in the relevant year of performance assessment.

13. TRANSFERABILITY OF THE OPTIONS

No Options granted under the Yuyuan Tranche I Employee Share Option Incentive Scheme shall be transferred by the Grantees or used for providing guarantee or repayment of debt.

14. TERMINATION OF THE YUYUAN TRANCHE I EMPLOYEE SHARE OPTION INCENTIVE SCHEME

The Yuyuan Tranche I Employee Share Option Inventive Scheme shall terminate immediately upon occurrence of any of the following events of Yuyuan:

  1. issue of an accountants' report with adverse opinion or which indicates an inability to give opinion by a certified public accountant with respect to the accountants' report of Yuyuan for its most recent financial year;
  2. issue of an accountants' report with adverse opinion or which indicates an inability to give opinion by a certified public accountant with respect to the internal control of the accountants' report of Yuyuan for its most recent financial year;
  3. distribution of profits that contravenes applicable laws and regulations, the articles of association of Yuyuan or public undertakings in the latest 36 months;

- 21 -

APPENDIX I

SUMMARY OF THE PRINCIPAL TERMS OF

THE YUYUAN TRANCHE I EMPLOYEE SHARE

OPTION INCENTIVE SCHEME

  1. prohibition from implementation of a share option incentive scheme by laws and regulations; or
  2. any other circumstances as determined by the CSRC or relevant regulatory authorities.

Yuyuan may terminate the Yuyuan Tranche I Employee Share Option Incentive Scheme by the following procedures:

  1. if Yuyuan intends to terminate the Scheme before its shareholders consider and approve such Scheme at a general meeting, such termination shall be considered and approved by the board of directors of Yuyuan;
  2. if Yuyuan intends to terminate the Scheme after its shareholders have considered and approved such Scheme at a general meeting, such termination shall be considered and approved at a general meeting of Yuyuan;
  3. legal opinion must be obtained in relation to whether the termination of the Scheme complies with the PRC Equity Incentives Measures and other applicable laws and regulations, and whether the termination of the Scheme is harmful to the interests of Yuyuan and its shareholders as a whole; and
  4. no new share option incentive scheme shall be reviewed within 3 months from the date of the announcement of the termination of the Yuyuan Tranche I Employee Share Option Incentive Scheme as approved by the board of directors of Yuyuan or the shareholders of Yuyuan at a general meeting.

Upon termination of the Yuyuan Tranche I Employee Share Option Incentive Scheme, any Options granted but not exercised by the Grantees shall be cancelled by Yuyuan.

15. ALTERATION OF THE YUYUAN TRANCHE I EMPLOYEE SHARE OPTION INCENTIVE SCHEME

Yuyuan may alter the Yuyuan Tranche I Employee Share Option Incentive Scheme by the following procedures:

  1. if Yuyuan intends to alter the Scheme before its shareholders consider and approve such Scheme at a general meeting, such alteration shall be considered and approved by the board of directors of Yuyuan;

- 22 -

APPENDIX I

SUMMARY OF THE PRINCIPAL TERMS OF

THE YUYUAN TRANCHE I EMPLOYEE SHARE

OPTION INCENTIVE SCHEME

  1. save for matters which have been authorized by the shareholders of Yuyuan to be administered by the board of directors of Yuyuan, if Yuyuan intends to alter the Scheme after its shareholders have considered and approved such Scheme at a general meeting, such alternation shall be considered and approved at a general meeting of Yuyuan, provided that alteration of the Scheme must not result in the following:
    1. the exercise of Options being accelerated; or
    2. the Exercise Price being reduced;
  2. the independent opinions of the independent directors and the supervisors of Yuyuan must be obtained in relation to whether the altered Scheme is for the benefit of the continuing development of Yuyuan and whether the alteration of the Scheme is harmful to the interests of Yuyuan and its shareholders as a whole. A legal opinion must be obtained in relation to whether the alteration of the Scheme complies with the PRC Equity Incentives Measures and other applicable laws and regulations, and whether the alteration of the Scheme is harmful to the interests of Yuyuan and its shareholders as a whole; and
  3. any alterations to the terms and conditions of the Scheme which are of a material nature or any change to the terms of Options granted must be approved by the Shareholders, except where the alterations take effect automatically under the existing terms of the Scheme.

16. MATERIAL CHANGE

Except for any rights to be exercised by the shareholders of Yuyuan as set out in any relevant documents, the shareholders of Yuyuan shall authorize the board of directors of Yuyuan at a general meeting for continuing implementation, alteration, cession or termination of the Scheme if any of the following events occurs to Yuyuan:

  1. change in control;
  2. merger and spin-off; and
  3. any other material change.

17. THE PROCEDURES FOR THE SCHEME TO TAKE EFFECT

The Scheme shall take effect upon completion of the following procedures:

  1. The remuneration and assessment committee of the board of directors of Yuyuan drafts the Scheme, and submits to the board of directors of Yuyuan for consideration;

- 23 -

APPENDIX I

SUMMARY OF THE PRINCIPAL TERMS OF

THE YUYUAN TRANCHE I EMPLOYEE SHARE

OPTION INCENTIVE SCHEME

  1. The board of directors of Yuyuan reviews and approves the draft Scheme for which any director who is proposed to be a Grantee or related to any of the Grantees shall abstain from voting. The independent directors and the supervisory committee of Yuyuan issue independent opinion as to whether the Scheme is beneficial to the sustainable development of Yuyuan or is detrimental to the interests of Yuyuan and its shareholders as a whole;
  2. The board of directors of Yuyuan makes announcements in respect of its resolution, the draft Scheme and opinion from the independent directors within 2 trading days after its approval of the draft Scheme;
  3. Yuyuan engages a lawyer to issue legal opinion on the Scheme and issues announcement;
  4. Yuyuan issues a notice for convening its general meeting;
  5. Before convening its general meeting, Yuyuan announces the names and positions of the Grantees internally via company website or other channels for not less than 10 days. Yuyuan Supervisory Committee verifies the list of the Grantees and considers opinion from the public thoroughly. Yuyuan discloses its supervisory committee's verification results of the list of the Grantees and the public opinion 5 days before the Scheme is considered at its general meeting;
  6. Yuyuan carries out self-investigation on the trading of its shares and derivatives by insiders during the 6 months' period prior to the announcement of the draft Scheme to examine whether there is any insider trading;
  7. The independent directors of Yuyuan collect proxy forms from all shareholders of Yuyuan in respect of voting on the Scheme;
  8. A general meeting of Yuyuan is convened for the voting on the Scheme, in which online voting shall be permitted in addition to on-site voting. The terms of the Scheme shall be voted in the general meeting, and be approved by more than 2/3 of the attending shareholders with voting rights. In addition to the directors, supervisors and senior management of Yuyuan, the shareholders individually or collectively holding more than 5% of Yuyuan Shares, the voting by other shareholders shall be separately counted and disclosed. The shareholders who are proposed Grantees or related to any of them shall abstain from voting;
  9. Fosun International convenes a general meeting to consider and approve the Scheme; and
  10. Yuyuan grants the Options to the Grantees within the prescribed time after approval of the Scheme at the general meetings of Yuyuan and Fosun International and upon the fulfilment of grant conditions as set out in the Scheme. The board of directors of Yuyuan shall be responsible for handling matters in relation to the grant, exercise and cancellation of the Options in accordance with the mandate granted to it at the general meeting of Yuyuan.

- 24 -

Disclaimer

Fosun International Limited published this content on 08 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 October 2019 09:59:04 UTC

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