Document:

Exhibit 4.2

 

	
 
    
	
 
    
	
EDWARDS GROUP LIMITED
    
	
 
    
	
AND
    
	
 
    
	
THE BANK OF NEW YORK MELLON
    
	
 
    
	
As Depositary
    
	
 
    
	
AND
    
	
 
    
	
OWNERS AND HOLDERS OF AMERICAN DEPOSITARY SHARES
    
	
 
    
	
Deposit Agreement
    
	
 
    
	
Dated as of                         ,   2012
    
	
 
    

 

 

TABLE OF CONTENTS

 

	
ARTICLE 1.
    	
DEFINITIONS
    	
1
    
	
 
    	
SECTION 1.01
    	
American Depositary Shares
    	
1
    
	
 
    	
SECTION 1.02
    	
Commission
    	
2
    
	
 
    	
SECTION 1.03
    	
Company
    	
2
    
	
 
    	
SECTION 1.04
    	
Custodian
    	
2
    
	
 
    	
SECTION 1.05
    	
Deliver; Surrender
    	
2
    
	
 
    	
SECTION 1.06
    	
Deposit Agreement
    	
3
    
	
 
    	
SECTION 1.07
    	
Depositary; Corporate Trust Office
    	
3
    
	
 
    	
SECTION 1.08
    	
Deposited Securities
    	
3
    
	
 
    	
SECTION 1.09
    	
Dollars
    	
3
    
	
 
    	
SECTION 1.10
    	
DTC
    	
3
    
	
 
    	
SECTION 1.11
    	
Foreign Registrar
    	
3
    
	
 
    	
SECTION 1.12
    	
Holder
    	
4
    
	
 
    	
SECTION 1.13
    	
Owner
    	
4
    
	
 
    	
SECTION 1.14
    	
Receipts
    	
4
    
	
 
    	
SECTION 1.15
    	
Registrar
    	
4
    
	
 
    	
SECTION 1.16
    	
Restricted Securities
    	
4
    
	
 
    	
SECTION 1.17
    	
Securities Act of 1933
    	
4
    
	
 
    	
SECTION 1.18
    	
Shares
    	
5
    
	
 
    	
 
    	
 
    
	
ARTICLE 2.
    	
FORM OF RECEIPTS, DEPOSIT OF SHARES, DELIVERY,   TRANSFER AND SURRENDER OF AMERICAN DEPOSITARY SHARES
    	
5
    
	
 
    	
SECTION 2.01
    	
Form of Receipts; Registration and Transferability of   American Depositary Shares
    	
5
    
	
 
    	
SECTION 2.02
    	
Deposit of Shares
    	
6
    
	
 
    	
SECTION 2.03
    	
Delivery of American Depositary Shares
    	
7
    
	
 
    	
SECTION 2.04
    	
Registration of Transfer of American Depositary Shares;   Combination and Split-up of Receipts; Interchange of Certificated and   Uncertificated American Depositary Shares
    	
8
    
	
 
    	
SECTION 2.05
    	
Surrender of American Depositary Shares and Withdrawal of   Deposited Securities
    	
9
    
	
 
    	
SECTION 2.06
    	
Limitations on Delivery, Transfer and Surrender of American   Depositary Shares
    	
10
    
	
 
    	
SECTION 2.07
    	
Lost Receipts, etc.
    	
11
    
	
 
    	
SECTION 2.08
    	
Cancellation and Destruction of Surrendered Receipts
    	
11
    
	
 
    	
SECTION 2.09
    	
Pre-Release of American Depositary Shares
    	
11
    
	
 
    	
SECTION 2.10
    	
Maintenance of Records
    	
12
    
					

 

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SECTION 2.11
    	
DTC Direct Registration System and Profile Modification   System
    	
12
    
	
 
    	
 
    	
 
    
	
ARTICLE 3.
    	
CERTAIN OBLIGATIONS OF OWNERS AND HOLDERS OF AMERICAN   DEPOSITARY SHARES
    	
13
    
	
 
    	
SECTION 3.01
    	
Filing Proofs, Certificates and Other Information
    	
13
    
	
 
    	
SECTION 3.02
    	
Liability of Owner for Taxes
    	
14
    
	
 
    	
SECTION 3.03
    	
Warranties on Deposit of Shares
    	
14
    
	
 
    	
SECTION 3.04
    	
Disclosure of Interests
    	
14
    
	
 
    	
SECTION 3.05
    	
Ownership Restrictions
    	
15
    
	
 
    	
SECTION 3.06
    	
Reporting Obligations and Regulatory Approvals
    	
15
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ARTICLE 4.
    	
THE DEPOSITED SECURITIES
    	
15
    
	
 
    	
SECTION 4.01
    	
Cash Distributions
    	
15
    
	
 
    	
SECTION 4.02
    	
Distributions Other Than Cash, Shares or Rights
    	
16
    
	
 
    	
SECTION 4.03
    	
Distributions in Shares
    	
17
    
	
 
    	
SECTION 4.04
    	
Rights
    	
17
    
	
 
    	
SECTION 4.05
    	
Conversion of Foreign Currency
    	
19
    
	
 
    	
SECTION 4.06
    	
Fixing of Record Date
    	
20
    
	
 
    	
SECTION 4.07
    	
Voting of Deposited Securities
    	
20
    
	
 
    	
SECTION 4.08
    	
Changes Affecting Deposited Securities
    	
21
    
	
 
    	
SECTION 4.09
    	
Reports
    	
22
    
	
 
    	
SECTION 4.10
    	
Lists of Owners
    	
22
    
	
 
    	
SECTION 4.11
    	
Withholding
    	
22
    
	
 
    	
 
    	
 
    
	
ARTICLE 5.
    	
THE DEPOSITARY, THE CUSTODIANS AND THE COMPANY
    	
23
    
	
 
    	
SECTION 5.01
    	
Maintenance of Office and Transfer Books by the Depositary
    	
23
    
	
 
    	
SECTION 5.02
    	
Prevention or Delay in Performance by the Depositary or the   Company
    	
24
    
	
 
    	
SECTION 5.03
    	
Obligations of the Depositary, the Custodian and the Company
    	
25
    
	
 
    	
SECTION 5.04
    	
Resignation and Removal of the Depositary
    	
26
    
	
 
    	
SECTION 5.05
    	
The Custodians
    	
26
    
	
 
    	
SECTION 5.06
    	
Notices and Reports
    	
27
    
	
 
    	
SECTION 5.07
    	
Distribution of Additional Shares, Rights, etc.
    	
27
    
	
 
    	
SECTION 5.08
    	
Indemnification
    	
28
    
	
 
    	
SECTION 5.09
    	
Charges of Depositary
    	
30
    
	
 
    	
SECTION 5.10
    	
Retention of Depositary Documents
    	
31
    
	
 
    	
SECTION 5.11
    	
Exclusivity
    	
31
    
	
 
    	
SECTION 5.12
    	
List of Restricted Securities Owners
    	
31
    
					

 

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ARTICLE 6.
    	
AMENDMENT AND TERMINATION
    	
31
    
	
 
    	
SECTION 6.01
    	
Amendment
    	
31
    
	
 
    	
SECTION 6.02
    	
Termination
    	
32
    
	
 
    	
 
    	
 
    
	
ARTICLE 7.
    	
MISCELLANEOUS
    	
33
    
	
 
    	
SECTION 7.01
    	
Counterparts
    	
33
    
	
 
    	
SECTION 7.02
    	
No Third Party Beneficiaries
    	
33
    
	
 
    	
SECTION 7.03
    	
Severability
    	
33
    
	
 
    	
SECTION 7.04
    	
Owners and Holders as Parties; Binding Effect
    	
33
    
	
 
    	
SECTION 7.05
    	
Notices
    	
34
    
	
 
    	
SECTION 7.06
    	
Submission to Jurisdiction; Appointment of Agent for   Service of Process; Jury Trial Waiver
    	
34
    
	
 
    	
SECTION 7.07
    	
Waiver of Immunities
    	
35
    
	
 
    	
SECTION 7.08
    	
Governing Law
    	
35
    
					

 

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DEPOSIT AGREEMENT

 

DEPOSIT AGREEMENT dated as of                     , 2012 among EDWARDS GROUP LIMITED, a company incorporated under the laws of the Cayman Islands (herein called the Company), THE BANK OF NEW YORK MELLON, a New York banking corporation (herein called the Depositary), and all Owners and Holders (each as hereinafter defined) from time to time of American Depositary Shares issued hereunder.

 

W I T N E S S E T H:

 

WHEREAS, the Company desires to provide, as hereinafter set forth in this Deposit Agreement, for the deposit of Shares (as hereinafter defined) of the Company from time to time with the Depositary or with the Custodian (as hereinafter defined) as agent of the Depositary for the purposes set forth in this Deposit Agreement, for the creation of American Depositary Shares representing the Shares so deposited and for the execution and delivery of American Depositary Receipts evidencing the American Depositary Shares; and

 

WHEREAS, the American Depositary Receipts are to be substantially in the form of Exhibit A annexed hereto, with appropriate insertions, modifications and omissions, as hereinafter provided in this Deposit Agreement;

 

NOW, THEREFORE, in consideration of the premises, it is agreed by and between the parties hereto as follows:

 

ARTICLE 1.                           DEFINITIONS

 

The following definitions shall for all purposes, unless otherwise clearly indicated, apply to the respective terms used in this Deposit Agreement:

 

SECTION 1.01              American Depositary Shares.

 

The term “American Depositary Shares” shall mean the securities created under this Deposit Agreement representing rights with respect to the Deposited Securities. American Depositary Shares may be certificated securities evidenced by Receipts or uncertificated securities.  The form of Receipt annexed as Exhibit A to this Deposit Agreement shall be the prospectus required under the Securities Act of 1933 for sales of both certificated and uncertificated American Depositary Shares.  Except for those provisions of this Deposit Agreement that refer specifically to Receipts, all the provisions of this Deposit Agreement shall apply to both certificated and uncertificated American Depositary Shares.  Each American Depositary Share shall represent the number of Shares specified in Exhibit A to this Deposit Agreement, until there shall occur a distribution upon Deposited Securities covered by Section 4.03 or a change in

 

 

Deposited Securities covered by Section 4.08 with respect to which additional American Depositary Shares are not delivered, and thereafter American Depositary Shares shall represent the amount of Shares or Deposited Securities specified in such Sections.

 

SECTION 1.02              Commission.

 

The term “Commission” shall mean the Securities and Exchange Commission of the United States or any successor governmental agency in the United States.

 

SECTION 1.03              Company.

 

The term “Company” shall mean Edwards Group Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands, and its successors.

 

SECTION 1.04              Custodian.

 

The term “Custodian” shall mean the principal London office of The Bank of New York Mellon, as agent of the Depositary for the purposes of this Deposit Agreement, and any other firm or corporation which may hereafter be appointed by the Depositary pursuant to the terms of Section 5.05, as substitute or additional custodian or custodians hereunder, as the context shall require and shall also mean all of them collectively.

 

SECTION 1.05              Deliver; Surrender.

 

(a)                                 The term “deliver”, or its noun form, when used with respect to Shares or other Deposited Securities, shall mean (i) book-entry transfer of those Shares or other Deposited Securities to an account maintained by an institution authorized under applicable law to effect transfers of such securities designated by the person entitled to that delivery or (ii) physical transfer of certificates evidencing those Shares or other Deposited Securities registered in the name of, or duly endorsed or accompanied by proper instruments of transfer to, the person entitled to that delivery.

 

(b)                                 The term “deliver”, or its noun form, when used with respect to American Depositary Shares, shall mean (i) book-entry transfer of American Depositary Shares to an account at DTC designated by the person entitled to such delivery, evidencing American Depositary Shares registered in the name requested by that person,  (ii) registration of American Depositary Shares not evidenced by a Receipt on the books of the Depositary in the name requested by the person entitled to such delivery,  whereupon mailing will be made to that person of a statement confirming that registration or (iii) if requested by the person entitled to such delivery, delivery at the Corporate Trust Office of the Depositary to the person entitled to such delivery of one or more Receipts.

 

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(c)                                  The term “surrender”, when used with respect to American Depositary Shares, shall mean (i) one or more book-entry transfers of American Depositary Shares to the DTC account of the Depositary, (ii) delivery to the Depositary at its Corporate Trust Office of an instruction to surrender American Depositary Shares not evidenced by a Receipt or (iii) surrender to the Depositary at its Corporate Trust Office of one or more Receipts evidencing American Depositary Shares.

 

SECTION 1.06              Deposit Agreement.

 

The term “Deposit Agreement” shall mean this Deposit Agreement, as the same may be amended or supplemented from time to time in accordance with the provisions hereof.

 

SECTION 1.07              Depositary; Corporate Trust Office.

 

The term “Depositary” shall mean The Bank of New York Mellon, a New York banking corporation, and any successor as depositary hereunder.  The term “Corporate Trust Office”, when used with respect to the Depositary, shall mean the office of the Depositary which at the date of this Deposit Agreement is 101 Barclay Street, New York, New York 10286.

 

SECTION 1.08              Deposited Securities.

 

The term “Deposited Securities” as of any time shall mean Shares at such time deposited or deemed to be deposited under this Deposit Agreement, including without limitation Shares that have not been successfully delivered upon surrender of American Depositary Shares, and any and all other securities, property and cash received by the Depositary or the Custodian in respect thereof and at such time held under this Deposit Agreement, subject as to cash to the provisions of Section 4.05.

 

SECTION 1.09              Dollars.

 

The term “Dollars” shall mean United States dollars.

 

SECTION 1.10              DTC.

 

The term “DTC” shall mean The Depository Trust Company or its successor.

 

SECTION 1.11              Foreign Registrar.

 

The term “Foreign Registrar” shall mean the entity that presently carries out the duties of registrar for the Shares or any successor as registrar for the Shares and any other agent of the Company appointed for the transfer and registration of Shares, including without limitation any securities depository for the Shares.

 

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SECTION 1.12              Holder.

 

The term “Holder” shall mean any person holding a Receipt or a security entitlement or other interest in American Depositary Shares, whether for its own account or for the account of another person, but that is not the Owner of that Receipt or those American Depositary Shares.

 

SECTION 1.13              Owner.

 

The term “Owner” shall mean the person in whose name American Depositary Shares are registered on the books of the Depositary maintained for such purpose.

 

SECTION 1.14              Receipts.

 

The term “Receipts” shall mean the American Depositary Receipts issued hereunder evidencing certificated American Depositary Shares, as amended or supplemented from time to time in accordance with the provisions hereof.  A Receipt may evidence any number of American Depositary Shares.

 

SECTION 1.15              Registrar.

 

The term “Registrar” shall mean any bank or trust company having an office in the Borough of Manhattan, The City of New York, that is appointed by the Depositary to register American Depositary Shares and transfers of American Depositary Shares as herein provided.

 

SECTION 1.16              Restricted Securities.

 

The term “Restricted Securities” shall mean Shares, or American Depositary Shares representing Shares, that are acquired directly or indirectly from the Company or its affiliates (as defined in Rule 144 under the Securities Act of 1933) in a transaction or chain of transactions not involving any public offering, or that are subject to resale limitations under Regulation D under the Securities Act of 1933 or both, or which are held by an officer, director (or persons performing similar functions) or other affiliate of the Company, or that would require registration under the Securities Act of 1933 in connection with the offer and sale thereof in the United States, or that are subject to other restrictions on sale or deposit under the laws of the United States or the Cayman Islands, or under a shareholder agreement or the memorandum and articles of association or similar document of the Company.

 

SECTION 1.17              Securities Act of 1933.

 

The term “Securities Act of 1933” shall mean the United States Securities Act of 1933, as from time to time amended.

 

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SECTION 1.18              Shares.

 

The term “Shares” shall mean ordinary shares of the Company that are validly issued and outstanding and fully paid, nonassessable and that were not issued in violation of any pre-emptive or similar rights of the holders of outstanding securities of the Company; provided, however, that, if there shall occur any change in nominal value, a subdivision or consolidation or any other reclassification or, upon the occurrence of an event described in Section 4.08, an exchange or conversion in respect of the Shares of the Company, the term “Shares” shall thereafter also mean the successor securities resulting from such change in nominal value, subdivision or consolidation or such other reclassification or such exchange or conversion.

 

ARTICLE 2.                           FORM OF RECEIPTS, DEPOSIT OF SHARES, DELIVERY, TRANSFER AND SURRENDER OF AMERICAN DEPOSITARY SHARES

 

SECTION 2.01              Form of Receipts; Registration and Transferability of American Depositary Shares.

 

Definitive Receipts shall be substantially in the form set forth in Exhibit A annexed to this Deposit Agreement, with appropriate insertions, modifications and omissions, as hereinafter provided.  No Receipt shall be entitled to any benefits under this Deposit Agreement or be valid or obligatory for any purpose, unless such Receipt shall have been (i) executed by the Depositary by the manual signature of a duly authorized officer of the Depositary or (ii) executed by the facsimile signature of a duly authorized officer of the Depositary and countersigned by the manual signature of a duly authorized signatory of the Depositary or a Registrar.  The Depositary shall maintain books on which (x) each Receipt so executed and delivered as hereinafter provided and the transfer of each such Receipt shall be registered and (y) all American Depositary Shares delivered as hereinafter provided and all registrations of transfer of American Depositary Shares shall be registered.  A Receipt bearing the facsimile signature of a person that was at any time a proper officer of the Depositary shall, subject to the other provisions of this paragraph, bind the Depositary, notwithstanding that such person was not a proper officer of the Depositary on the date of issuance of that Receipt.

 

The Receipts may, and upon written request of the Company shall, be endorsed with or have incorporated in the text thereof such legends or recitals or modifications not inconsistent with the provisions of this Deposit Agreement as may be required reasonably by the Depositary, or the Company, or required to comply with any applicable law or regulations thereunder or with the rules and regulations of any securities exchange upon which American Depositary Shares may be listed or to conform with any usage with respect thereto, or to indicate any special limitations or restrictions to which any particular Receipts are subject by reason of the date of issuance of the underlying Deposited Securities or otherwise.

 

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American Depositary Shares evidenced by a Receipt, when properly endorsed or accompanied by proper instruments of transfer, shall be transferable as certificated registered securities under the laws of the State of New York. American Depositary Shares not evidenced by Receipts shall be transferable as uncertificated registered securities under the laws of the State of New York.  The Depositary and the Company, notwithstanding any notice to the contrary, may deem and treat the Owner of American Depositary Shares as the absolute owner thereof for the purpose of determining the person entitled to distribution of dividends or other distributions or to any notice provided for in this Deposit Agreement and for all other purposes, and neither the Depositary nor the Company shall have any obligation or be subject to any liability under this Deposit Agreement to any Holder of American Depositary Shares (but only to the Owner of those American Depositary Shares).

 

SECTION 2.02              Deposit of Shares.

 

Subject to the terms and conditions of this Deposit Agreement, Shares or evidence of rights to receive Shares (other than Restricted Securities) may be deposited by delivery thereof to the Custodian hereunder, accompanied by any appropriate instruments or instructions for transfer, or endorsement, in form satisfactory to the Custodian, together with all such certifications as may be required by the Depositary or the Custodian in accordance with the provisions of this Deposit Agreement, and, if the Depositary requires, together with a written order directing the Depositary to deliver to, or upon the written order of, the person or persons stated in such order, the number of American Depositary Shares representing such deposit and such documentation and certification, if any, as the Depositary and the Company may require in order to comply with any applicable law.

 

No Shares shall be accepted for deposit unless accompanied by evidence reasonably satisfactory to the Depositary that any necessary approval has been granted by any governmental body in each applicable jurisdiction that is then performing the function of the regulation of currency exchange or other function that requires approval for the deposit of Shares.  If required by the Depositary, Shares presented for deposit at any time, whether or not the transfer books of the Company or the Foreign Registrar, if applicable, are closed, shall also be accompanied by an agreement or assignment, or other instrument satisfactory to the Depositary, which will provide for the prompt transfer to the Custodian of any dividend, or right to subscribe for additional Shares or to receive other property which any person in whose name the Shares are or have been recorded may thereafter receive upon or in respect of such deposited Shares, or in lieu thereof, such agreement of indemnity or other agreement as shall be satisfactory to the Depositary.

 

At the request and risk and expense of any person proposing to deposit Shares or evidence of rights to receive Shares, and for the account of such person, the Depositary may receive certificates for Shares to be deposited, together with the other

 

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instruments herein specified, for the purpose of forwarding such Share certificates to the Custodian for deposit hereunder.

 

Upon each delivery to a Custodian of a certificate or certificates for Shares to be deposited hereunder, together with the other documents specified above, such Custodian shall, as soon as transfer and recordation can be accomplished, present such certificate or certificates to the Company or the Foreign Registrar, if applicable, for transfer and recordation of the Shares being deposited in the name of the Depositary or its nominee or such Custodian or its nominee.

 

The Depositary and the Custodian may refuse to accept Shares for deposit whenever notified that the Company has restricted transfer of such Shares to comply with any ownership restrictions under the memorandum and articles of association or similar document of the Company or any applicable law or that the deposit would result in any violation of the memorandum and articles of association or similar document of the Company or any applicable law.  The Company shall notify the Depositary and the Custodian in writing with respect to any such restrictions on transfer of its Shares for deposit hereunder or transfer of American Depositary Shares to any Owner.

 

Deposited Securities shall be held by the Depositary or by a Custodian for the account and to the order of the Depositary or at such other place or places as the Depositary shall determine.

 

Neither the Depositary nor the Custodian shall deliver Shares (other than to the Company or its agent as contemplated by Section 4.08), or otherwise permit Shares to be withdrawn from the facility created hereby, except upon the surrender and cancellation of American Depositary Shares or in connection with a sale permitted under Section 3.02, 4.03, 4.11 or 6.02.

 

Delivery of American Depositary Shares.

 

Upon receipt by the Custodian of any deposit pursuant to Section 2.02 hereunder, together with the other documents required as specified above, such Custodian shall notify the Depositary of such deposit and the person or persons to whom or upon whose written order American Depositary Shares are deliverable in respect thereof and the number of American Depositary Shares to be so delivered. Such notification shall be made by letter or, at the request, risk and expense of the person making the deposit, by cable, telex or facsimile transmission (and in addition, if the transfer books of the Company or the Foreign Registrar, if applicable, are open, the Depositary may in its reasonable discretion require a proper acknowledgment or other evidence from the Company or the Foreign Registrar that any Deposited Securities have been recorded upon the books of the Company or the Foreign Registrar, if applicable, in the name of the Depositary or its nominee or such Custodian or its nominee).  Upon receiving such notice from such Custodian, or upon the receipt of Shares or evidence of the right to receive Shares by the Depositary, the Depositary, subject to the terms and conditions of this

 

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Deposit Agreement, shall, without unreasonable delay, deliver, to or upon the order of the person or persons entitled thereto, the number of American Depositary Shares issuable in respect of that deposit, but only upon payment to the Depositary of the fees and expenses of the Depositary for the delivery of such American Depositary Shares as provided in Section 5.09, and of all taxes and governmental charges and fees payable in connection with such deposit and the transfer of the Deposited Securities.

 

SECTION 2.03              Registration of Transfer of American Depositary Shares; Combination and Split-up of Receipts; Interchange of Certificated and Uncertificated American Depositary Shares.

 

The Depositary, subject to the terms and conditions of this Deposit Agreement, shall, without unreasonable delay, register transfers of American Depositary Shares on its transfer books from time to time, upon (i) in the case of certificated American Depositary Shares, surrender of the Receipt evidencing those American Depositary Shares, by the Owner in person or by a duly authorized attorney, properly endorsed or accompanied by proper instruments of transfer or (ii) in the case of uncertificated American Depositary Shares, receipt from the Owner of a proper instruction (including, for the avoidance of doubt, instructions through DRS and Profile as provided in Section 2.10), and, in either case, duly stamped as may be required by the laws of the State of New York and of the United States of America. Thereupon the Depositary shall deliver those American Depositary Shares to or upon the order of the person entitled thereto.

 

The Depositary, subject to the terms and conditions of this Deposit Agreement, shall upon surrender of a Receipt or Receipts for the purpose of effecting a split-up or combination of such Receipt or Receipts, execute and deliver a new Receipt or Receipts for any authorized number of American Depositary Shares requested, evidencing the same aggregate number of American Depositary Shares as the Receipt or Receipts surrendered.

 

The Depositary, upon surrender of certificated American Depositary Shares for the purpose of exchanging for uncertificated American Depositary Shares, shall cancel those certificated American Depositary Shares and send the Owner a statement confirming that the Owner is the owner of the same number of uncertificated American Depositary Shares. The Depositary, upon receipt of a proper instruction (including, for the avoidance of doubt, instructions through DRS and Profile as provided in Section 2.10) from the Owner of uncertificated American Depositary Shares for the purpose of exchanging for certificated American Depositary Shares, shall cancel those uncertificated American Depositary Shares and deliver to the Owner the same number of certificated American Depositary Shares.

 

The Depositary may, upon at least 10 days’ prior written notice to the Company, appoint one or more co-transfer agents for the purpose of effecting registration of transfers of American Depositary Shares and combinations and split-ups of Receipts at

 

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designated transfer offices on behalf of the Depositary.  In carrying out its functions, a co-transfer agent may require evidence of authority and compliance with applicable laws and other requirements by Owners or persons entitled to American Depositary Shares and will be entitled to protection and indemnity to the same extent as the Depositary.  The Depositary may, upon at least 10 days’ prior written notice to the Company, remove or replace any co-transfer agent.  The Depositary shall require each co-transfer agent that it appoints under this Section 2.04 to give notice in writing to the Depositary accepting such appointment and agreeing to be bound by the applicable terms of this Deposit Agreement.

 

SECTION 2.04              Surrender of American Depositary Shares and Withdrawal of Deposited Securities.

 

Upon surrender at the Corporate Trust Office of the Depositary of American Depositary Shares for the purpose of withdrawal of the Deposited Securities represented thereby, and upon payment of the fee of the Depositary for the surrender of American Depositary Shares as provided in Section 5.09 and payment of all taxes and governmental charges payable in connection with such surrender and withdrawal of the Deposited Securities, and subject to the terms and conditions of this Deposit Agreement and applicable laws and regulations, the Owner of those American Depositary Shares shall be entitled to delivery, to him or as instructed, of the amount of Deposited Securities at the time represented by those American Depositary Shares.  Such delivery shall be made, as hereinafter provided, without unreasonable delay.

 

A Receipt surrendered for such purposes may be required by the Depositary to be properly endorsed in blank or accompanied by proper instruments of transfer in blank. The Depositary may require the surrendering Owner to execute and deliver to the Depositary a written order directing the Depositary to cause the Deposited Securities being withdrawn to be delivered to or upon the written order of a person or persons designated in such order.  Thereupon the Depositary shall, without unreasonable delay, direct the Custodian to deliver at the office of such Custodian, subject to Sections 2.06, 3.01 and 3.02 and to the other terms and conditions of this Deposit Agreement and applicable laws and regulations, to or upon the written order of the person or persons designated in the order delivered to the Depositary as above provided, the amount of Deposited Securities represented by the surrendered American Depositary Shares, except that the Depositary may make delivery to such person or persons at the Corporate Trust Office of the Depositary of any dividends or distributions with respect to the Deposited Securities represented by those American Depositary Shares, or of any proceeds of sale of any dividends, distributions or rights, which may at the time be held by the Depositary.

 

At the request, risk and expense of any Owner so surrendering American Depositary Shares, and for the account of such Owner, the Depositary shall direct the Custodian to forward any cash or other property (other than rights) comprising, and forward a certificate or certificates, if applicable, and other proper documents of title for,

 

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the Deposited Securities represented by the surrendered American Depositary Shares to the Depositary for delivery at the Corporate Trust Office of the Depositary, subject to the terms and conditions of this Deposit Agreement and applicable laws and regulations.  Such direction shall be given by letter or, at the request, risk and expense of such Owner, by cable, telex or facsimile transmission.

 

SECTION 2.05              Limitations on Delivery, Transfer and Surrender of American Depositary Shares.

 

As a condition precedent to the delivery, registration of transfer or surrender of any American Depositary Shares or split-up or combination of any Receipt or withdrawal of any Deposited Securities, the Depositary, the Custodian or Registrar may require payment from the depositor of Shares or the presenter of the Receipt or instruction for registration of transfer or surrender of American Depositary Shares not evidenced by a Receipt of a sum sufficient to reimburse it for any tax or other governmental charge and any stock transfer, or registration fee with respect thereto (including any such tax or charge and fee with respect to Shares being deposited or withdrawn) and payment of any applicable fees as herein provided, may require the production of proof satisfactory to it as to the identity and genuineness of any signature and may also require compliance with any applicable laws or regulations or any regulations the Depositary may establish consistent with the provisions of this Deposit Agreement, including, without limitation, this Section 2.06.

 

The delivery of American Depositary Shares against deposit of Shares generally or against deposit of particular Shares may be suspended, or the transfer of American Depositary Shares in particular instances may be refused, or the registration of transfer of outstanding American Depositary Shares generally may be suspended, during any period when the transfer books of the Depositary are closed as provided in Section 5.01, or if any such action is deemed necessary or advisable by the Depositary or the Company at any time or from time to time because of any requirement of law or of any government or governmental body or commission, or if any stock exchange where the Shares are listed suspends the trading of Shares for any reason, or under any provision of this Deposit Agreement, or for any other reason, subject to the provisions of the following sentence. Notwithstanding anything to the contrary in this Deposit Agreement, the surrender of outstanding American Depositary Shares and withdrawal of Deposited Securities may not be suspended subject only to (i) temporary delays caused by closing the transfer books of the Depositary or the Company or the Foreign Registrar, if applicable, or the deposit of Shares in connection with voting at a shareholders’ meeting, or the payment of dividends, (ii) the payment of fees, taxes and similar charges, and (iii) compliance with any U.S. or foreign laws or governmental regulations relating to the American Depositary Shares or to the withdrawal of the Deposited Securities.  Without limitation of the foregoing, the Depositary shall not knowingly accept for deposit under this Deposit Agreement any Shares (A) which would be required to be registered under the provisions of the Securities Act of 1933 for public offer and sale in the United States

 

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unless a registration statement is in effect as to such Shares for such offer and sale or (B) for which the Depositary has received written instructions with respect thereto from the Company that the deposit of such Shares would violate applicable law or regulation.

 

The Depositary will comply with the reasonable written instructions of the Company requesting that the Depositary not accept for deposit hereunder any Shares identified in such instructions at such times and under such circumstances as may be specified in such instructions in order to facilitate the Company’s compliance with the securities laws of the United States.

 

SECTION 2.06              Lost Receipts, etc.

 

In case any Receipt shall be mutilated, destroyed, lost or stolen, the Depositary shall deliver to the Owner the American Depositary Shares evidenced by that Receipt in uncertificated form or, if requested by the Owner, execute and deliver a new Receipt of like tenor in exchange and substitution for such mutilated Receipt, upon cancellation thereof, or in lieu of and in substitution for such destroyed, lost or stolen Receipt.  Before the Depositary shall deliver American Depositary Shares in uncertificated form or execute and deliver a new Receipt, in substitution for a destroyed, lost or stolen Receipt, the Owner thereof shall have (a) filed with the Depositary (i) a request for such execution and delivery before the Depositary has notice that the Receipt has been acquired by a bona fide purchaser and (ii) a sufficient indemnity bond and (b) satisfied any other reasonable requirements imposed by the Depositary.

 

SECTION 2.07              Cancellation and Destruction of Surrendered Receipts.

 

All Receipts surrendered to the Depositary shall be cancelled by the Depositary.  Cancelled Receipts shall not be entitled to any benefits under this Deposit Agreement or be valid or obligatory for any purpose.  The Depositary is authorized to destroy Receipts so cancelled.

 

SECTION 2.08              Pre-Release of American Depositary Shares.

 

Notwithstanding Section 2.03 hereof and unless requested by the Company in writing to cease doing so, the Depositary may deliver American Depositary Shares prior to the receipt of Shares pursuant to Section 2.02 (a “Pre-Release”).  The Depositary may, pursuant to Section 2.05, deliver Shares upon the surrender of American Depositary Shares that have been Pre-Released, whether or not such cancellation is prior to the termination of such Pre-Release or the Depositary knows that such American Depositary Shares have been Pre-Released.  The Depositary may receive American Depositary Shares in lieu of Shares in satisfaction of a Pre-Release.  Each Pre-Release will be (a) preceded or accompanied by a written representation from the person to whom American Depositary Shares or Shares are to be delivered, that such person, or its customer, (i) beneficially owns the Shares or American Depositary Shares to be remitted,

 

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as the case may be, (ii) assigns all beneficial right, title and interest in such American Depositary Shares or Shares, as the case may be, to the Depositary in its capacity as such and for the benefit of the Owners and (iii) will not take any action with respect to such American Depositary Shares or Shares, as the case may be, that is inconsistent with the transfer of beneficial ownership (including, without the consent of the Depositary, disposing of such American Depositary Shares or Shares, as the case may be), other than in satisfaction of the Pre-Release, (b) at all times fully collateralized with cash or such other collateral as the Depositary deems appropriate, (c) terminable by the Depositary on not more than five (5) business days notice, and (d) subject to such further indemnities and credit regulations as the Depositary deems appropriate.  The number of Shares represented by American Depositary Shares that are outstanding at any time as a result of Pre-Release will not normally exceed thirty percent (30%) of the Shares deposited hereunder; provided, however, that the Depositary reserves the right to change or disregard such limit from time to time as it deems reasonably appropriate.  The collateral referred to in clause (b) above shall be held by the Depositary for the benefit of the Owners as security for the performance of the obligations to deliver Shares or American Depositary Shares, as the case may be, in satisfaction of a Pre-Release transaction (but shall not, for the avoidance of doubt, constitute Deposited Securities).

 

The Depositary may retain for its own account any compensation received by it in connection with the foregoing.

 

SECTION 2.09              Maintenance of Records.

 

The Depositary agrees to maintain or cause its agents to maintain records of all American Depositary Shares surrendered and Deposited Securities withdrawn under Section 2.05, substitute Receipts delivered under Section 2.07, and of cancelled or destroyed Receipts under Section 2.08, in keeping with procedures ordinary followed by stock transfer agents located in the City of New York or as required by the laws or regulations governing the Depositary.

 

SECTION 2.10              DTC Direct Registration System and Profile Modification System.

 

(a)                                 Notwithstanding the provisions of Section 2.04, the parties acknowledge that the Direct Registration System (“DRS”) and Profile Modification System (“Profile”) shall apply to uncertificated American Depositary Shares upon acceptance thereof to DRS by DTC.  DRS is the system administered by DTC pursuant to which the Depositary may register the ownership of uncertificated American Depositary Shares, which ownership shall be evidenced by periodic statements issued by the Depositary to the Owners entitled thereto.  Profile is a required feature of DRS which allows a DTC participant, claiming to act on behalf of an Owner of American Depositary Shares, to direct the Depositary to register a transfer of those American Depositary Shares to DTC or its nominee and to deliver those American Depositary Shares to the

 

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DTC account of that DTC participant without receipt by the Depositary of prior authorization from the Owner to register such transfer.

 

(b)                                 In connection with and in accordance with the arrangements and procedures relating to DRS/Profile, the parties understand that the Depositary will not verify, determine or otherwise ascertain that the DTC participant which is claiming to be acting on behalf of an Owner in requesting a registration of transfer and delivery as described in subsection (a) has the actual authority to act on behalf of the Owner (notwithstanding any requirements under the Uniform Commercial Code).  For the avoidance of doubt, the provisions of Sections 5.03 and 5.08 shall apply to the matters arising from the use of the DRS.  The parties agree that the Depositary’s reliance on and compliance with instructions received by the Depositary through the DRS/Profile System and in accordance with this Deposit Agreement shall not constitute negligence or bad faith on the part of the Depositary.

 

ARTICLE 3.                           CERTAIN OBLIGATIONS OF OWNERS AND HOLDERS OF AMERICAN DEPOSITARY SHARES

 

SECTION 3.01              Filing Proofs, Certificates and Other Information.

 

Any person presenting Shares for deposit or any Owner or Holder may be required from time to time to file with the Depositary or the Custodian such proof of citizenship or residence, taxpayer status, exchange control approval, or such information relating to the registration on the books of the Company or the Foreign Registrar, if applicable, to execute such certificates and to make such representations and warranties, as the Depositary may reasonably deem necessary or proper or as the Company may reasonably request.  The Depositary may withhold the delivery or registration of transfer of American Depositary Shares or the distribution of any dividend or sale or distribution of rights or of the proceeds thereof or the delivery of any Deposited Securities until such proof or other information is filed or such certificates are executed or such representations and warranties made.  Upon the written request and at the expense of the Company, the Depositary shall, as promptly as practicable, provide to the Company copies or originals, if necessary and appropriate, of any proofs of citizenship or residence, taxpayer status, exchange control approval, information, certificate or other representations and warranties that the Depositary receives under this Section 3.01 from the Owner or Holder or any person presenting Shares for deposit, in each case to the extent that disclosure is permitted by applicable law and regulations.  Each Owner and Holder agrees to provide any information requested by the Company or the Depositary pursuant to this Section 3.01.  Neither the Company nor the Depositary is responsible for monitoring the Owners’ or the Holders’ compliance with applicable laws and regulations or their legal right to acquire Shares or American Depositary Shares.

 

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SECTION 3.02              Liability of Owner for Taxes.

 

If any tax or other governmental charge shall become payable by the Custodian or the Depositary with respect to any American Depositary Shares or any Deposited Securities represented by any American Depositary Shares, such tax or other governmental charge shall be payable by the Owner of such American Depositary Shares to the Depositary. The Depositary may refuse to register any transfer of those American Depositary Shares or to permit any withdrawal of Deposited Securities represented by those American Depositary Shares until such payment is made, and may withhold any dividends or other distributions, or may sell for the account of the Owner thereof any part or all of the Deposited Securities represented by those American Depositary Shares, and may apply such dividends or other distributions or the proceeds of any such sale in payment of such tax or other governmental charge and the Owner of such American Depositary Shares shall remain liable for any deficiency.  Every Owner agrees to indemnify the Depositary, the Company, the Custodian, and any of their agents, officers, employees and affiliates for, and to hold each of them harmless from, any claims with respect to taxes (including applicable interest and penalties thereon) arising from any tax benefit obtained for such Owner.

 

SECTION 3.03              Warranties on Deposit of Shares.

 

Every person depositing Shares under this Deposit Agreement shall be deemed thereby to represent and warrant that such Shares and each certificate therefor, if applicable, are validly issued, fully paid, nonassessable and free of any preemptive rights of the holders of outstanding Shares and that the person making such deposit is duly authorized so to do and the Shares presented for deposit are free and clear of any lien, encumbrance, security interest, charge, mortgage or adverse claim, and the Shares presented for deposit have not been stripped of any rights or entitlements.  Every such person shall also be deemed to represent that the deposit of such Shares and the sale of American Depositary Shares representing such Shares by that person are not restricted under the Securities Act of 1933.  Such representations and warranties shall survive the deposit of Shares and delivery of American Depositary Shares and the withdrawal and cancellation of the American Depositary Shares.  If any such representations or warranties are false in any way, the Company and the Depositary shall be authorized, at the cost and expense of the person depositing Shares, to take any and all actions reasonably necessary to correct the consequences thereof.

 

SECTION 3.04              Disclosure of Interests.

 

The Company may from time to time request Owners to provide information as to the capacity in which such Owners own or owned American Depositary Shares and regarding the identity of any other persons then or previously having a beneficial interest in such American Depositary Shares and the nature of such interest and various other matters.  Each Owner agrees to provide any information requested by the Company or the Depositary pursuant to this Section 3.04, whether or not they are Owners

 

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or Holders at the time of such request.  The Depositary, at the Company’s expense, agrees to comply with written instructions received from time to time from the Company requesting that the Depositary forward any such requests to the Owners and to forward to the Company any such responses to such requests received by the Depositary.

 

To the extent that provisions of or governing any Deposited Securities, the articles of association or similar document of the Company or applicable law may (i) require the disclosure of beneficial or other ownership of Deposited Securities and other securities to the Company or (ii) provide for blocking of Owners’ transfer, voting or other rights to enforce such disclosure or limit such ownership, the Depositary agrees to use reasonable efforts to comply, to the extent practicable, with the Company’s reasonable instructions as to American Depositary Shares in respect of any such enforcement of limitation.  Owners shall comply with all such disclosure requirements and shall cooperate with the Depositary’s compliance with such instructions and by their holding of American Depositary Shares are deemed to consent to any such limitation or blocking of rights.

 

SECTION 3.05              Ownership Restrictions.

 

Notwithstanding any other provision in this Deposit Agreement or any Receipt, the Company may restrict transfers of the Shares where such transfer might result in ownership of Shares exceeding limits imposed by applicable law or the articles of association or similar document of the Company.

 

SECTION 3.06              Reporting Obligations and Regulatory Approvals.

 

Applicable laws and regulations may require holders and beneficial owners of Shares, including the Owners and Holders, to satisfy reporting requirements and obtain regulatory approvals in certain circumstances.  Owners and Holders are solely responsible for determining and complying with such reporting requirements and obtaining such approvals.  Each Owner and Holder hereby agrees to make such determination, file such reports, and obtain such approvals to the extent and in the form required by applicable laws and regulations as in effect from time to time. Neither the Depositary, the Custodian, the Company or any of their respective directors, officers, employees, agents and affiliates shall be required to take any actions whatsoever on behalf of Owners or Holders to determine or satisfy such reporting requirements or obtain such regulatory approvals under applicable laws and regulations.

 

ARTICLE 4.                           THE DEPOSITED SECURITIES

 

SECTION 4.01              Cash Distributions.

 

Whenever the Depositary shall receive any cash dividend or other cash distribution on any Deposited Securities, the Depositary shall, subject to the provisions of Section 4.05, convert such dividend or distribution into Dollars and shall distribute the

 

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amount thus received (net of the fees and expenses of the Depositary as provided in Section 5.09) to the Owners entitled thereto, as of the record date fixed pursuant to Section 4.06, in proportion to the number of American Depositary Shares representing such Deposited Securities held by them respectively; provided, however, that in the event that the Custodian or the Depositary shall be required to withhold and does withhold from such cash dividend or such other cash distribution an amount on account of taxes or other governmental charges, the amount distributed to the Owners of the American Depositary Shares representing such Deposited Securities shall be reduced accordingly.  The Depositary shall distribute only such amount, however, as can be distributed without attributing to any Owner a fraction of one cent.  Any such fractional amounts shall be rounded to the nearest whole cent and so distributed to the Owners entitled thereto.  The Company or its agent will remit to the appropriate governmental agency in each applicable jurisdiction all amounts withheld and owing to such agency.  The Depositary will forward to the Company or its agent such information from its records as the Company may reasonably request to enable the Company or its agent to file necessary reports with governmental agencies, and the Depositary or the Company or its agent may file any such reports necessary to obtain benefits under the applicable tax treaties for the Owners, provided that neither the Depositary nor the Company shall have any obligation to file such reports.

 

SECTION 4.02              Distributions Other Than Cash, Shares or Rights.

 

Subject to the provisions of Sections 4.11 and 5.09, whenever the Depositary shall receive any distribution other than a distribution described in Section 4.01, 4.03 or 4.04, the Depositary shall, after consultation with the Company,  cause the securities or property received by it to be distributed to the Owners entitled thereto, after deduction or upon payment of any fees and expenses of the Depositary or any taxes or other governmental charges, in proportion to the number of American Depositary Shares representing such Deposited Securities held by them respectively, in any manner that the Depositary may deem equitable and practicable for accomplishing such distribution; provided, however, that if in the opinion of the Depositary such distribution cannot be made proportionately among the Owners entitled thereto, or if for any other reason (including, but not limited to, any requirement that the Company or the Depositary withhold an amount on account of taxes or other governmental charges or that such securities must be registered under the Securities Act of 1933 in order to be distributed to Owners or Holders) the Depositary deems such distribution not to be feasible, the Depositary may adopt, after consultation with the Company to the extent practicable, such method as it may deem equitable and practicable for the purpose of effecting such distribution, including, but not limited to, the public or private sale of the securities or property thus received, or any part thereof, and the net proceeds of any such sale (net of the fees and expenses of the Depositary as provided in Section 5.09) shall be distributed by the Depositary to the Owners entitled thereto, all in the manner and subject to the conditions described in Section 4.01; provided, further, that no distribution to Owners pursuant to this Section 4.02 shall be unreasonably delayed by any action of the

 

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Depositary.  To the extent such securities or property or the net proceeds thereof are not distributed to Owners as provided in this Section 4.02, the same shall constitute Deposited Securities and each American Depositary Share shall thereafter also represent its proportionate interest in such securities, property or net proceeds.  The Depositary may withhold any distribution of securities under this Section 4.02 if it has not received reasonably satisfactory assurances from the Company that the distribution does not require registration under the Securities Act of 1933.  The Depositary may sell, by public or private sale, an amount of securities or other property it would otherwise distribute under this Section 4.02 that is sufficient to pay its fees and expenses in respect of that distribution.

 

SECTION 4.03              Distributions in Shares.

 

If any distribution upon any Deposited Securities consists of a dividend in, or free distribution of, Shares, the Depositary may, and if the Company so requests in writing, shall, as promptly as practicable and subject to the following sentence, deliver to the Owners entitled thereto, in proportion to the number of American Depositary Shares representing such Deposited Securities held by them respectively, an aggregate number of American Depositary Shares representing the amount of Shares received as such dividend or free distribution, subject to the terms and conditions of the Deposit Agreement with respect to the deposit of Shares and issuance of American Depositary Shares, including withholding of any tax or governmental charge as provided in Section 4.11 and payment of the fees and expenses of the Depositary as provided in Section 5.09 (and the Depositary may sell, by public or private sale, an amount of the Shares received sufficient to pay its fees and expenses in respect of that distribution).  The Depositary may withhold any such delivery of American Depositary Shares if it has not received satisfactory assurances from the Company that such distribution does not require registration under the Securities Act of 1933.  In lieu of delivering fractional American Depositary Shares in any such case, the Depositary may sell the amount of Shares represented by the aggregate of such fractions and distribute the net proceeds, all in the manner and subject to the conditions described in Section 4.01.  If additional American Depositary Shares are not so delivered, each American Depositary Share shall thenceforth also represent the additional Shares distributed upon the Deposited Securities represented thereby.

 

SECTION 4.04              Rights.

 

In the event that the Company shall offer or cause to be offered to the holders of any Deposited Securities any rights to subscribe for additional Shares or any rights of any other nature, the Depositary shall, after consultation with the Company, have discretion as to the procedure to be followed in making such rights available to any Owners or in disposing of such rights on behalf of any Owners and making the net proceeds available to such Owners or, if by the terms of such rights offering or for any other reason, the Depositary may not either make such rights available to any Owners or

 

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dispose of such rights and make the net proceeds available to such Owners, then the Depositary shall allow the rights to lapse.  If at the time of the offering of any rights the Depositary determines in its discretion that it is lawful and feasible to make such rights available to all or certain Owners but not to other Owners, the Depositary, after consultation with the Company, may distribute to any Owner to whom it determines the distribution to be lawful and feasible, in proportion to the number of American Depositary Shares held by such Owner, warrants or other instruments therefor in such form as it deems appropriate.

 

In circumstances in which rights would otherwise not be distributed, if an Owner requests the distribution of warrants or other instruments in order to exercise the rights allocable to the American Depositary Shares of such Owner hereunder, the Depositary will make such rights available to such Owner upon written notice from the Company to the Depositary that (a) the Company has elected in its sole discretion to permit such rights to be exercised and (b) such Owner has executed such documents as the Company has determined in its sole discretion are reasonably required under applicable law.

 

If the Depositary has distributed warrants or other instruments for rights to all or certain Owners, then upon instruction from such an Owner pursuant to such warrants or other instruments to the Depositary from such Owner to exercise such rights, upon payment by such Owner to the Depositary for the account of such Owner of an amount equal to the purchase price of the Shares to be received upon the exercise of the rights, and upon payment of the fees and expenses of the Depositary and any other charges as set forth in such warrants or other instruments, the Depositary shall, on behalf of such Owner, exercise the rights and purchase the Shares, and the Company shall cause the Shares so purchased to be delivered to the Depositary on behalf of such Owner.  As agent for such Owner, the Depositary will cause the Shares so purchased to be deposited pursuant to Section 2.02, and shall, pursuant to Section 2.03, deliver American Depositary Shares to such Owner.  In the case of a distribution pursuant to the second paragraph of this Section, such deposit shall be made, and depositary shares shall be delivered, under depositary arrangements which provide for issuance of depositary shares subject to the appropriate restrictions on sale, deposit, cancellation, and transfer under applicable United States laws.

 

If the Depositary determines in its discretion that it is not lawful and feasible to make such rights available to all or certain Owners, it may sell the rights, warrants or other instruments in proportion to the number of American Depositary Shares held by the Owners to whom it has determined it may not lawfully or feasibly make such rights available, and allocate the net proceeds of such sales (net of the fees and expenses of the Depositary as provided in Section 5.09 and all taxes and governmental charges payable in connection with such rights and subject to the terms and conditions of this Deposit Agreement) for the account of such Owners otherwise entitled to such rights, warrants or other instruments, upon an averaged or other practical basis without regard to

 

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any distinctions among such Owners because of exchange restrictions or the date of delivery of any American Depositary Shares or otherwise.

 

The Depositary will not offer rights to Owners unless both the rights and the securities to which such rights relate are either exempt from registration under the Securities Act of 1933 with respect to a distribution to all Owners or are registered under the provisions of such Act; provided, that nothing in this Deposit Agreement shall create any obligation on the part of the Company to file a registration statement with respect to such rights or underlying securities or to endeavor to have such a registration statement declared effective.  If an Owner requests the distribution of warrants or other instruments, notwithstanding that there has been no such registration under the Securities Act of 1933, the Depositary shall not effect such distribution unless it has received an opinion from recognized counsel in the United States for the Company upon which the Depositary may rely that such distribution to such Owner is exempt from such registration.

 

Neither the Depositary nor the Company shall be responsible for any failure to determine that it may be lawful or feasible to make such rights available to Owners in general or any Owner in particular.

 

SECTION 4.05              Conversion of Foreign Currency.

 

Whenever the Depositary or the Custodian shall receive foreign currency, by way of dividends or other distributions or the net proceeds from the sale of securities, property or rights, and if at the time of the receipt thereof the foreign currency so received can in the judgment of the Depositary be converted on a reasonable basis into Dollars and the resulting Dollars transferred to the United States, the Depositary shall convert or cause to be converted by sale or in any other manner that it may reasonably determine such foreign currency into Dollars, and such Dollars shall be distributed to the Owners entitled thereto or, if the Depositary shall have distributed any warrants or other instruments which entitle the holders thereof to such Dollars, then to the holders of such warrants and/or instruments upon surrender thereof for cancellation.  Such distribution may be made upon an averaged or other practicable basis without regard to any distinctions among Owners on account of exchange restrictions, the date of delivery of any American Depositary Shares or otherwise and shall be net of any expenses of conversion into Dollars incurred by the Depositary as provided in Section 5.09.

 

If such conversion or distribution can be effected only with the approval or license of, or requires a filing with, any government or agency thereof, the Depositary shall file such application for approval or license, or make such filing, if any, as it may deem desirable.  The Company shall have no obligation to make any such filings.

 

If at any time the Depositary shall determine that in its reasonable judgment any foreign currency received by the Depositary or the Custodian is not convertible on a reasonable basis into Dollars transferable to the United States, or if any approval or license of any government or agency thereof which is required for such

 

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conversion is denied or in the reasonable opinion of the Depositary is not obtainable, or if any such approval or license is not obtained within a reasonable period as determined by the Depositary, the Depositary may distribute the foreign currency (or an appropriate document evidencing the right to receive such foreign currency) received by the Depositary to, or in its discretion may hold such foreign currency uninvested and without liability for interest thereon for the respective accounts of, the Owners entitled to receive the same.

 

If any such conversion of foreign currency, in whole or in part, cannot be effected for distribution to some of the Owners entitled thereto, the Depositary may in its discretion make such conversion and distribution in Dollars to the extent permissible to the Owners entitled thereto and may distribute the balance of the foreign currency received by the Depositary to, or hold such balance uninvested and without liability for interest thereon for the respective accounts of, the Owners entitled thereto.

 

SECTION 4.06              Fixing of Record Date.

 

Whenever any cash dividend or other cash distribution shall become payable or any distribution other than cash shall be made, or whenever rights shall be issued with respect to the Deposited Securities, or whenever the Depositary shall receive notice of any meeting of holders of Shares or other Deposited Securities, or whenever for any reason the Depositary causes a change in the number of Shares that are represented by each American Depositary Share, or whenever the Depositary shall find it necessary or convenient, the Depositary shall fix a record date which shall be the same as, or as near as practicable to, any corresponding record date fixed by the Company with respect to the Deposited Securities (a) for the determination of the Owners who shall be (i) entitled to receive such dividend, distribution or rights or the net proceeds of the sale thereof, (ii) entitled to give instructions for the exercise of voting rights at any such meeting or (iii) responsible for any fee or charge assessed by the Depositary pursuant to this Deposit Agreement, or (b) on or after which each American Depositary Share will represent the changed number of Shares.  Subject to the provisions of Sections 4.01 through 4.05 and to the other terms and conditions of this Deposit Agreement, the Owners on such record date shall be entitled, as the case may be, to receive the amount distributable by the Depositary with respect to such dividend or other distribution or such rights or the net proceeds of sale thereof in proportion to the number of American Depositary Shares held by them respectively and to give voting instructions and to act in respect of any other such matter.

 

SECTION 4.07              Voting of Deposited Securities.

 

Upon receipt from the Company of notice of any meeting or solicitation of proxies or consents of holders of Shares or other Deposited Securities, the Depositary shall, if requested in writing by the Company, as soon as practicable thereafter, mail to the Owners a notice, the form of which notice shall be in the sole discretion of the Depositary (unless otherwise instructed by the Company), which shall contain (a) such

 

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information as is contained in such notice of meeting received by the Depositary from the Company, (b) a statement that the Owners as of the close of business on a specified record date will be entitled, subject to any applicable provision of Cayman Islands law and of the memorandum and articles of association or similar documents of the Company, to instruct the Depositary as to the exercise of the voting rights, if any, pertaining to the amount of Shares or other Deposited Securities represented by their respective American Depositary Shares and (c) a statement as to the manner in which such instructions may be given.  Upon the written request of an Owner of American Depositary Shares on such record date, received on or before the date established by the Depositary for such purpose, the Depositary shall endeavor, insofar as practicable, to vote or cause to be voted the amount of Shares or other Deposited Securities represented by those American Depositary Shares in accordance with the instructions set forth in such request.  Neither the Depositary nor the Custodian shall under any circumstances exercise any discretion as to voting, and neither the Depositary nor the Custodian shall vote or attempt to exercise the right to vote that attaches to the Deposited Securities except in accordance with the voting instructions received from Owners.

 

There can be no assurance that Owners generally or any Owner in particular will receive the notice described in the preceding paragraph sufficiently prior to the instruction cutoff date to ensure that the Depositary will vote the Shares or Deposited Securities in accordance with the provisions set forth in the preceding paragraph.

 

In order to give Owners a reasonable opportunity to instruct the Depositary as to the exercise of voting rights relating to Deposited Securities, if the Company will request the Depositary to act under this Section 4.07, the Company shall give the Depositary notice of any such meeting or solicitation and details concerning the matters to be voted upon not less than 45 days prior to the meeting date or date for giving such proxies or consents.

 

SECTION 4.08              Changes Affecting Deposited Securities.

 

Upon any change in nominal value, change in par value, subdivision, consolidation or any other reclassification of Deposited Securities, or upon any recapitalization, reorganization, merger or consolidation or sale of assets affecting the Company or to which it is a party, or upon the redemption or cancellation by the Company of the Deposited Securities, any securities, cash or property which shall be received by the Depositary or a Custodian in exchange for, in conversion of, in lieu of or in respect of Deposited Securities, shall be treated as new Deposited Securities under this Deposit Agreement, and American Depositary Shares shall thenceforth represent, in addition to the existing Deposited Securities, the right to receive the new Deposited Securities so received, unless additional American Depositary Shares are delivered pursuant to the following sentence.  In any such case the Depositary may deliver additional American Depositary Shares as in the case of a dividend in Shares, or call for the surrender of outstanding Receipts to be exchanged for new Receipts specifically

 

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describing such new Deposited Securities.  The Depositary will give Owners notice of an event to which this Section 4.08 applies as promptly as practicable if the event affects holdings of American Depositary Shares.  Notwithstanding the foregoing, in the event that any security so received may not be lawfully distributed to some or all Owners, the Depositary may, and shall use reasonable efforts to if the Company so requests in writing, subject to receipt of an opinion of Company’s counsel satisfactory to the Depositary that such action is not in violation of any applicable laws or regulations, sell such securities at public or private sale, at such place or places and upon such terms as it may deem practicable and shall allocate the net proceeds of such sales (net of (a) fees and charges of, and expenses incurred by, the Depositary and (b) taxes) for the account of the Owners otherwise entitled to such securities upon an averaged or other practicable basis without regard to any distinctions among such Owners and distribute the net proceeds so allocated to the extent practicable as in the case of a distribution received in cash pursuant to Section 4.01.

 

SECTION 4.09              Reports.

 

The Depositary shall make available for inspection by Owners at its Corporate Trust Office any notices, reports and other communications, including any proxy solicitation material, received from the Company which are both (a) received by the Depositary as the holder of the Deposited Securities and (b) made generally available to the holders of such Deposited Securities by the Company.  The Depositary shall also, upon written request by the Company, send to the Owners copies of such communications when furnished by the Company pursuant to Section 5.06.  Any such notices, reports and other communications, including any such proxy soliciting material, furnished to the Depositary by the Company shall be furnished in English, to the extent such materials are required to be translated into English pursuant to any regulations of the Commission.

 

SECTION 4.10              Lists of Owners.

 

Promptly upon request by the Company, the Depositary shall, at the expense of the Company, furnish to it a list, as of a recent date, of the names, addresses and holdings of American Depositary Shares by all persons in whose names American Depositary Shares are registered on the books of the Depositary.

 

SECTION 4.11              Withholding.

 

In the event that the Depositary reasonably determines that any distribution in property (including Shares and rights to subscribe therefor) is subject to any tax or other governmental charge which the Depositary is obligated to withhold, the Depositary may by public or private sale dispose of all or a portion of such property (including Shares and rights to subscribe therefor) in such amounts and in such manner as the Depositary reasonably deems necessary and practicable to pay such taxes or charges and the Depositary shall distribute the net proceeds of any such sale after deduction of

 

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such taxes or charges to the Owners entitled thereto in proportion to the number of American Depositary Shares held by them respectively.

 

The Depositary shall forward to the Company or its agent such information from its records as the Company may reasonably request to enable the Company or its agent to file necessary reports with governmental agencies, and the Depositary or the Company or its agent may file any such reports necessary to reduce or eliminate applicable taxes on dividends and other distributions in respect of Deposited Securities and to obtain benefits under the applicable tax treaties for the Owners.  The Owners shall indemnify the Depositary, the Company, the Custodian and any of their respective directors, employees, agents and affiliates against, and hold each of them harmless from, any claims by any governmental authority with respect to taxes, additions to tax, penalties or interest arising out of any refund of taxes, reduced rate of withholding at source or other tax benefit obtained.

 

The Depositary shall to the extent required by U.S. law report to the Owners any taxes or governmental charges withheld from or paid out of a distribution on Deposited Securities by it, the Custodian or, to the extent such information is received from the Company, the Company.

 

ARTICLE 5.                           THE DEPOSITARY, THE CUSTODIANS AND THE COMPANY

 

SECTION 5.01              Maintenance of Office and Transfer Books by the Depositary.

 

Until termination of this Deposit Agreement in accordance with its terms, the Depositary shall maintain in the Borough of Manhattan, The City of New York, facilities for the execution and delivery, registration, registration of transfers and surrender of American Depositary Shares in accordance with the provisions of this Deposit Agreement.

 

The Depositary shall keep books, at its Corporate Trust Office, for the registration of American Depositary Shares and registration of transfers of American Depositary Shares which at all reasonable times shall be open for inspection by the Company and the Owners, provided that such inspection shall not be for the purpose of communicating with Owners in the interest of a business or object other than the business of the Company or a matter related to this Deposit Agreement or the American Depositary Shares.

 

The Depositary may close the transfer books, at any time or from time to time, when deemed expedient by it in connection with the performance of its duties hereunder.

 

The Company shall have the right, at all reasonable times, to inspect the transfer and registration records of the Depositary relating to the American Depositary

 

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Shares, to make copies thereof and to request the Depositary and the Registrar in writing to supply copies of such portions of such records as the Company may reasonably request.

 

If any American Depositary Shares are listed on one or more stock exchanges in the United States, the Depositary shall act as Registrar or, upon at least 10 days’ prior written notice of the Company, appoint a Registrar or one or more co-registrars for registry of such American Depositary Shares in accordance with any requirements of such exchange or exchanges.  Such Registrar or co-registrar may be removed and a substitute or substitutes appointed by the Depositary upon at least 10 days’ prior written notice to the Company.  The Depositary shall require each Registrar or co-registrar that it appoints under this Section 5.01 to give notice in writing to the Depositary accepting such appointment and agreeing to abide by the applicable terms of the Deposit Agreement.

 

SECTION 5.02              Prevention or Delay in Performance by the Depositary or the Company.

 

Neither the Depositary nor the Company nor any of their respective directors, officers, employees, agents, controlling persons or affiliates shall incur any liability to any Owner or Holder (i) if by reason of any provision of any present or future law or regulation of the United States or any other country, or of any governmental or regulatory authority or stock exchange, or by reason of any provision, present or future, of the memorandum and articles of association or similar document of the Company, or by reason of any provision of any securities issued or distributed by the Company, or any offering or distribution thereof, or by reason of any act of God or war or terrorism or other circumstances beyond its control, the Depositary or the Company shall be prevented, delayed or forbidden from, or be subject to any civil or criminal penalty on account of, doing or performing any act or thing which by the terms of this Deposit Agreement or the Deposited Securities it is provided shall be done or performed, (ii) by reason of any non-performance or delay, caused as aforesaid, in the performance of any act or thing which by the terms of this Deposit Agreement it is provided shall or may be done or performed, (iii) by reason of any exercise of, or failure to exercise, any discretion provided for in this Deposit Agreement, (iv) for the inability of any Owner or Holder to benefit from any distribution, offering, right or other benefit which is made available to holders of Deposited Securities but is not, under the terms of this Deposit Agreement, made available to Owners or Holders, or (v) for any special, consequential or punitive damages for any breach of the terms of this Deposit Agreement.  Where, by the terms of a distribution pursuant to Section 4.01, 4.02 or 4.03, or an offering or distribution pursuant to Section 4.04, or for any other reason, such distribution or offering may not be made available to Owners, and the Depositary may not dispose of such distribution or offering on behalf of such Owners and make the net proceeds available to such Owners, then the Depositary shall not make such distribution or offering, and shall allow any rights, if applicable, to lapse.

 

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SECTION 5.03              Obligations of the Depositary, the Custodian and the Company.

 

The Company assumes no obligation nor shall it be subject to any liability under this Deposit Agreement to any Owner or Holder, except that the Company agrees to perform its obligations specifically set forth in this Deposit Agreement without negligence or bad faith.

 

The Depositary assumes no obligation nor shall it be subject to any liability under this Deposit Agreement to any Owner or Holder (including, without limitation, liability with respect to the validity or worth of the Deposited Securities), except that the Depositary agrees to perform its obligations specifically set forth in this Deposit Agreement without negligence or bad faith.

 

Neither the Depositary nor the Company nor the Company nor any of their respective directors, officers, employees, agents or controlling persons shall be under any obligation to appear in, prosecute or defend any action, suit or other proceeding in respect of any Deposited Securities or in respect of the American Depositary Shares on behalf of any Owner or Holder or any other person.

 

Neither the Depositary nor the Company nor any of their respective directors, officers, employees, agents or controlling persons shall be liable for any action or nonaction by it or them in reliance upon the advice of or information from legal counsel, accountants, any person presenting Shares for deposit, any Owner or Holder, or any other person believed by it or them in good faith to be competent to give such advice or information.  Each of the Depositary, its controlling persons and its agents and the Company, its directors, officers, employees, agents and controlling persons may rely and shall be protected in acting upon any written notice, request, direction or other document believed by it to be genuine and to have been signed or presented by the proper party or parties.

 

The Depositary shall not be liable for any acts or omissions made by a successor depositary whether in connection with a previous act or omission of the Depositary or in connection with any matter arising wholly after the removal or resignation of the Depositary, provided that in connection with the issue out of which such potential liability arises the Depositary performed its obligations without negligence or bad faith while it acted as Depositary.

 

Neither the Depositary nor the Company shall be liable for the acts or omissions of any securities depository, clearing agency or settlement system in connection with or arising out of book-entry settlement of Deposited Securities or otherwise.

 

The Depositary shall not be responsible for any failure to carry out any instructions to vote any of the Deposited Securities, or for the manner in which any such

 

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vote is cast or the effect of any such vote, provided that any such action or nonaction is in good faith.

 

No disclaimer of liability under the Securities Act of 1933 is intended by any provision of this Deposit Agreement.

 

SECTION 5.04              Resignation and Removal of the Depositary.

 

The Depositary may at any time resign as Depositary hereunder by written notice of its election so to do delivered to the Company, such resignation to take effect upon the appointment of a successor depositary and its acceptance of such appointment as hereinafter provided.

 

The Depositary may at any time be removed by the Company by 90 days prior written notice of such removal, to become effective upon the later of (i) the 90th day after delivery of the notice to the Depositary and (ii) the appointment of a successor depositary and its acceptance of such appointment as hereinafter provided.

 

In case at any time the Depositary acting hereunder shall resign or be removed, the Company shall use its commercially reasonable efforts to appoint a successor depositary, which shall be a bank or trust company having an office in the Borough of Manhattan, The City of New York.  Every successor depositary shall execute and deliver to its predecessor and to the Company an instrument in writing accepting its appointment hereunder, and thereupon such successor depositary, without any further act or deed, shall become fully vested with all the rights, powers, duties and obligations of its predecessor; but such predecessor, nevertheless, upon payment of all sums due it and on the written request of the Company shall execute and deliver an instrument transferring to such successor all rights and powers of such predecessor hereunder, shall duly assign, transfer and deliver all right, title and interest in the Deposited Securities to such successor and shall deliver to such successor a list of the Owners of all outstanding American Depositary Shares.  Any such successor depositary shall promptly mail notice of its appointment to the Owners.

 

Any corporation into or with which the Depositary may be merged or consolidated shall be the successor of the Depositary without the execution or filing of any document or any further act.

 

SECTION 5.05              The Custodians.

 

The Custodian shall be subject at all times and in all respects to the directions of the Depositary and shall be responsible solely to it.  Any Custodian may resign and be discharged from its duties hereunder by notice of such resignation delivered to the Depositary at least 30 days prior to the date on which such resignation is to become effective.  If upon such resignation there shall be no Custodian acting hereunder, the Depositary shall, promptly after receiving such notice, appoint a substitute custodian or

 

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custodians, each of which shall thereafter be a Custodian hereunder.  The Depositary in its discretion may appoint a substitute or additional custodian or custodians, each of which shall thereafter be one of the Custodians hereunder.  Upon demand of the Depositary any Custodian shall deliver such of the Deposited Securities held by it as are requested of it to any other Custodian or such substitute or additional custodian or custodians.  Each such substitute or additional custodian shall deliver to the Depositary, forthwith upon its appointment, an acceptance of such appointment satisfactory in form and substance to the Depositary.  As promptly as practicable, upon any change in Custodian, the Depositary shall give notice thereof in writing to the Company.

 

Upon the appointment of any successor depositary hereunder, any Custodian then acting hereunder shall forthwith become, without any further act or writing, the agent hereunder of such successor depositary and the appointment of such successor depositary shall in no way impair the authority of each Custodian hereunder; but the successor depositary so appointed shall, nevertheless, on the written request of any Custodian, execute and deliver to such Custodian all such instruments as may be proper to give to such Custodian full and complete power and authority as agent hereunder of such successor depositary.

 

SECTION 5.06              Notices and Reports.

 

On or before the first date on which the Company gives notice, by publication or otherwise, of any meeting of holders of Shares or other Deposited Securities, or of any adjourned meeting of such holders, or of the taking of any action in respect of any cash or other distributions or the offering of any rights, the Company agrees to transmit to the Depositary and the Custodian a copy of the notice thereof in the form given or to be given to holders of Shares or other Deposited Securities.

 

The Company will arrange for the translation into English, if not already in English, to the extent required pursuant to any regulations of the Commission, and the prompt transmittal by the Company to the Depositary and the Custodian of such notices and any other reports and communications which are made generally available by the Company to holders of its Shares.  If requested in writing by the Company, the Depositary will arrange for the mailing, at the Company’s expense, of copies of such notices, reports and communications to all Owners.  The Company will timely provide the Depositary with the quantity of such notices, reports, and communications, as requested by the Depositary from time to time, in order for the Depositary to effect such mailings.

 

SECTION 5.07              Distribution of Additional Shares, Rights, etc.

 

If the Company or any affiliate of the Company determines to make any issuance or distribution of (1) additional Shares, (2) rights to subscribe for Shares, (3) securities convertible into, or exchangeable for, Shares, or (4) rights to subscribe for such securities (each a “Distribution”), the Company shall notify the Depositary in

 

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writing in English as promptly as practicable and in any event before the Distribution starts and, if requested in writing by the Depositary, the Company shall promptly furnish to the Depositary a written opinion from U.S. counsel for the Company that is reasonably satisfactory to the Depositary, stating whether or not the Distribution requires, or, if made in the United States, would require, registration under the Securities Act of 1933.  If, in the opinion of that counsel, the Distribution requires, or, if made in the United States, would require, registration under the Securities Act of 1933, that counsel shall furnish to the Depositary a written opinion as to whether or not there is a registration statement under the Securities Act of 1933 in effect that will cover that Distribution.

 

The Company agrees with the Depositary that neither the Company nor any company controlled by, controlling or under common control with the Company will at any time deposit any Shares, either originally issued or previously issued and reacquired by the Company or any such affiliate, unless a Registration Statement is in effect as to such Shares under the Securities Act of 1933 or the Company delivers to the Depositary an opinion of United States counsel, reasonably satisfactory to the Depositary, to the effect that, upon deposit, those Shares will be eligible for public resale without restriction in the United States without further registration under the Securities Act of 1933.

 

Nothing in this Deposit Agreement shall create any obligation on the part of the Company to file a registration statement under the Securities Act of 1933 with respect to any Distribution.  To the extent the Company in its sole discretion deems it necessary or advisable in order to avoid any requirement to register securities under the Securities Act of 1933, it may prevent Owners in the United States from purchasing securities (whether pursuant to preemptive rights or otherwise) and may instruct the Depositary not to accept certain Shares reasonably identified in such instruction for deposit for such period of time following the issuance of such additional securities or to adopt such other specific measures as the Company may reasonably request.

 

SECTION 5.08              Indemnification.

 

The Company agrees to indemnify the Depositary, its directors, employees, agents and affiliates and the Custodian against, and hold each of them harmless from, any liability or expense (including, but not limited to any fees and expenses incurred in seeking, enforcing or collecting such indemnity and the fees and expenses of counsel) which may arise out of or in connection with (a) any registration with the Commission of American Depositary Shares or Deposited Securities or the offer or sale thereof in the United States, except to the extent the liability or expense arises out of information relating to the Depositary or the Custodian furnished in writing to the Company by the Depositary expressly for use in any registration statement, proxy statement, prospectus (or private placement memorandum) or preliminary prospectus (or preliminary private placement memorandum) relating to the Shares and not materially changed by the Company (it being understood that the Depositary has not furnished any

 

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information of that kind), or omissions from that information or (b) acts performed or omitted, pursuant to the provisions of or in connection with this Deposit Agreement or the American Depositary Shares, as the same may be amended, modified or supplemented from time to time, (i) by either the Depositary or a Custodian or their respective directors, employees, agents and affiliates, except for any liability or expense arising out of the negligence or bad faith of either of them, or (ii) by the Company or any of its directors, employees, agents and affiliates.

 

The indemnities contained in the preceding paragraph shall not extend to any liability or expense which arises solely and exclusively out of a Pre-Release (as defined in Section 2.09) of American Depositary Shares in accordance with Section 2.09 and which would not otherwise have arisen had such American Depositary Shares not been the subject of a Pre-Release pursuant to Section 2.09; provided, however, that the indemnities provided in the preceding paragraph shall apply to any such liability or expense (i) to the extent such liability or expense would have arisen had such American Depositary Shares not been the subject of a Pre-Release, or (ii) which may arise out of any misstatement or alleged misstatement or omission or alleged omission in any registration statement, proxy statement, prospectus (or private placement memorandum), or preliminary prospectus (or preliminary private placement memorandum) relating to the offer of sale of American Depositary Shares, except to the extent any such liability or expense arises out of (i) information relating to the Depositary or the Custodian (other than the Company), as applicable, furnished in writing by the Depositary expressly for use in any of the foregoing documents and not materially changed or altered by the Company or, (ii) if such information is provided, the failure to state a material fact necessary to make the information provided not misleading.

 

The Depositary agrees to indemnify the Company, its directors, employees, agents and affiliates and hold them harmless from any liability or expense which may arise out of acts performed or omitted, pursuant to the provisions of or in connection with this Deposit Agreement or the American Depositary Shares, as the same may be amended, modified or supplemented from time to time, by the Depositary or its Custodian or their respective directors, employees, agents and affiliates due to their negligence or bad faith.

 

Any person seeking indemnification hereunder (an “Indemnified Person”) shall notify the person from whom it is seeking indemnification (the “Indemnifying Person”) of the commencement of any indemnifiable action or claim as promptly as practicable after such Indemnified Person becomes aware of such commencement (provided that the failure to make such notification shall not affect such indemnified person’s rights otherwise than under this Section 5.08) and shall consult in good faith with the Indemnifying Person as to the conduct of the defense of such action or claim, which defense shall be reasonable under the circumstances.  No Indemnified Person shall compromise or settle any such action or claim without the consent in writing of the Indemnifying Person, which consent shall not be unreasonably withheld.

 

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The obligations set forth in this Section 5.08 shall survive the termination of this Deposit Agreement and the succession or substitution of any Indemnified Person.

 

SECTION 5.09              Charges of Depositary.

 

The Company agrees to pay the fees and out-of-pocket expenses of the Depositary and those of any Registrar only in accordance with agreements in writing entered into between the Depositary and the Company from time to time.

 

The following charges shall be incurred by any party depositing or withdrawing Shares or by any party surrendering American Depositary Shares or to whom American Depositary Shares are issued (including, without limitation, issuance pursuant to a stock dividend or stock split declared by the Company or an exchange of stock regarding the American Depositary Shares or Deposited Securities or a delivery of American Depositary Shares pursuant to Section 4.03), or by Owners, as applicable:  (1) taxes and other governmental charges, (2) such registration fees as may from time to time be in effect for the registration of transfers of Shares generally on the Share register of the Company or Foreign Registrar and applicable to transfers of Shares to or from the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals hereunder, (3) such cable, telex and facsimile transmission expenses as are expressly provided in this Deposit Agreement, (4) such expenses as are incurred by the Depositary in the conversion of foreign currency pursuant to Section 4.05, (5) a fee of $5.00 or less per 100 American Depositary Shares (or portion thereof) for the delivery of American Depositary Shares pursuant to Section 2.03, 4.03 or 4.04 and the surrender of American Depositary Shares pursuant to Section 2.05 or 6.02, (6) a fee of $.05 or less per American Depositary Share (or portion thereof) for any cash distribution made pursuant to this Deposit Agreement, including, but not limited to Sections 4.01 through 4.04 hereof, (7) a fee for the distribution of securities pursuant to Section 4.02, such fee being in an amount equal to the fee for the execution and delivery of American Depositary Shares referred to above which would have been charged as a result of the deposit of such securities (for purposes of this clause 7 treating all such securities as if they were Shares) but which securities are instead distributed by the Depositary to Owners, (8) in addition to any fee charged under clause 6, a fee of $.05 or less per American Depositary Share (or portion thereof) per annum for depositary services, which will be payable as provided in clause 9 below, and (9) any other charges payable by the Depositary, any of the Depositary’s agents, including the Custodian, or the agents of the Depositary’s agents in connection with the servicing of Shares or other Deposited Securities (which charge shall be assessed against Owners as of the date or dates set by the Depositary in accordance with Section 4.06 and shall be payable at the sole discretion of the Depositary by billing such Owners for such charge or by deducting such charge from one or more cash dividends or other cash distributions).

 

The Depositary, subject to Section 2.09 hereof, may own and deal in any class of securities of the Company and its affiliates and in American Depositary Shares.

 

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SECTION 5.10              Retention of Depositary Documents.

 

The Depositary is authorized to destroy those documents, records, bills and other data compiled during the term of this Deposit Agreement at the times permitted by the laws or regulations governing the Depositary unless the Company requests that such papers be retained for a longer period or turned over to the Company or to a successor depositary.

 

SECTION 5.11              Exclusivity.

 

The Company agrees not to appoint any other depositary for issuance of American or global depositary shares or receipts so long as The Bank of New York Mellon is acting as Depositary hereunder.

 

SECTION 5.12              List of Restricted Securities Owners.

 

From time to time, the Company shall provide to the Depositary a list setting forth, to the actual knowledge of the Company, those persons or entities who beneficially own Restricted Securities and the Company shall update that list on a regular basis.  The Company agrees to advise in writing each of the persons or entities so listed that such Restricted Securities are ineligible for deposit hereunder.  The Depositary may rely on such a list or update but shall not be liable for any action or omission made in reliance thereon.

 

ARTICLE 6.                           AMENDMENT AND TERMINATION

 

SECTION 6.01              Amendment.

 

The form of the Receipts and any provisions of this Deposit Agreement may at any time and from time to time be amended or supplemented by written agreement between the Company and the Depositary without the consent of Owners or Holders in any respect which they may deem necessary or desirable.  Any amendment or supplement which shall impose or increase any fees or charges (other than taxes and other governmental charges, registration fees, cable, telex or facsimile transmission costs, delivery costs or other such expenses), or which shall otherwise prejudice any substantial existing right of Owners, shall, however, not become effective as to outstanding American Depositary Shares until the expiration of 30 days after notice of such amendment shall have been given to the Owners of outstanding American Depositary Shares.  The parties agree that any amendments or supplements which (i) are reasonably necessary (as agreed by the Company and the Depositary) in order for the American Depositary Shares to the registered on Form F-6 under the Securities Act of 1933 and (ii) do not impose or increase any applicable fees or charges to be borne by the Owners, shall be deemed not to prejudice any substantial rights of Owners.  Every Owner and Holder, at the time any amendment so becomes effective, shall be deemed, by continuing to hold American Depositary Shares or any interest therein, to consent and agree to such

 

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amendment and to be bound by the Deposit Agreement as amended thereby. In no event shall any amendment impair the right of the Owner to surrender American Depositary Shares and receive therefor the Deposited Securities represented thereby, except in order to comply with mandatory provisions of applicable law.  Notwithstanding the foregoing, if any governmental body should adopt new laws, rules or regulations which would require an amendment or supplement of this Deposit Agreement to ensure compliance therewith, the Company and the Depositary may amend or supplement this Deposit Agreement at any time in accordance with such changed laws, rules and regulations.  Such amendment or supplement to this Deposit Agreement in such circumstances may become effective before a notice of such amendment or supplement is given to Owners or within any other period of time as required for compliance with such laws, rules or regulations.

 

SECTION 6.02              Termination.

 

The Company may at any time terminate this Deposit Agreement by instructing the Depositary to mail a notice of termination to the Owners of all American Depositary Shares then outstanding at least 30 days prior to the termination date included in such notice.  The Depositary may likewise terminate this Deposit Agreement if at any time 60 days shall have expired after the Depositary delivered to the Company a written resignation notice and if a successor depositary shall not have been appointed and accepted its appointment as provided in Section 5.04; in such case the Depositary shall mail a notice of termination to the Owners of all American Depositary Shares then outstanding at least 30 days prior to the termination date.  On and after the date of termination, the Owner of American Depositary Shares will, upon (a) surrender of such American Depositary Shares, (b) payment of the fee of the Depositary for the surrender of American Depositary Shares referred to in Section 2.05, and (c) payment of any applicable taxes or governmental charges, be entitled to delivery, to him or upon his order, of the amount of Deposited Securities represented by those American Depositary Shares.  If any American Depositary Shares shall remain outstanding after the date of termination, the Depositary thereafter shall discontinue the registration of transfers of American Depositary Shares, shall suspend the distribution of dividends to the Owners thereof, and shall not give any further notices or perform any further acts under this Deposit Agreement, except that the Depositary shall continue to collect dividends and other distributions pertaining to Deposited Securities, shall sell rights and other property as provided in this Deposit Agreement, and shall continue to deliver Deposited Securities, together with any dividends or other distributions received with respect thereto and the net proceeds of the sale of any rights or other property, upon surrender of American Depositary Shares (after deducting, in each case, the fee of the Depositary for the surrender of American Depositary Shares, any expenses for the account of the Owner of such American Depositary Shares in accordance with the terms and conditions of this Deposit Agreement, and any applicable taxes or governmental charges).

 

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At any time after the expiration of four months from the date of termination, the Depositary may sell the Deposited Securities then held under this Deposit Agreement and may thereafter hold uninvested the net proceeds of any such sale, together with any other cash then held by it hereunder, unsegregated and without liability for interest, for the pro rata benefit of the Owners of American Depositary Shares that have not theretofore been surrendered, such Owners thereupon becoming general creditors of the Depositary with respect to such net proceeds.  After making such sale, the Depositary shall be discharged from all obligations under this Deposit Agreement, except to account for such net proceeds and other cash (after deducting, in each case, the fee of the Depositary for the surrender of American Depositary Shares, any expenses for the account of the Owner of such American Depositary Shares in accordance with the terms and conditions of this Deposit Agreement, and any applicable taxes or governmental charges).  Upon the termination of this Deposit Agreement, the Company shall be discharged from all obligations under this Deposit Agreement except for its obligations to the Depositary under Sections 5.08 and 5.09.

 

ARTICLE 7.                           MISCELLANEOUS

 

SECTION 7.01              Counterparts.

 

This Deposit Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of such counterparts shall constitute one and the same instrument.  Copies of this Deposit Agreement shall be kept by the Depositary and the Custodians and shall be open to inspection by any Owner or Holder during business hours.

 

SECTION 7.02              No Third Party Beneficiaries.

 

This Deposit Agreement is for the exclusive benefit of the parties hereto and shall not be deemed to give any legal or equitable right, remedy or claim whatsoever to any other person.

 

SECTION 7.03              Severability.

 

In case any one or more of the provisions contained in this Deposit Agreement or in the Receipts should be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein or therein shall in no way be affected, prejudiced or disturbed thereby.

 

SECTION 7.04              Owners and Holders as Parties; Binding Effect.

 

The Owners and Holders from time to time shall be parties to this Deposit Agreement and shall be bound by all of the terms and conditions hereof and of the Receipts by acceptance of American Depositary Shares or any interest therein.

 

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SECTION 7.05              Notices.

 

Any and all notices to be given to the Company shall be deemed to have been duly given if personally delivered or sent by mail or cable, telex or facsimile transmission confirmed by letter, addressed to Edwards Group Limited, Manor Royal, Crawley RH10 9LW, England, Attention: Company Secretary, or any other place to which the Company may have transferred its principal office with notice to the Depositary.

 

Any and all notices to be given to the Depositary shall be deemed to have been duly given if in English and personally delivered or sent by mail or cable, telex or facsimile transmission confirmed by letter, addressed to The Bank of New York Mellon, 101 Barclay Street, New York, New York 10286, Attention:  American Depositary Receipt Administration, or any other place to which the Depositary may have transferred its Corporate Trust Office with notice to the Company.

 

Any and all notices to be given to any Owner shall be deemed to have been duly given if personally delivered or sent by mail or cable, telex or facsimile transmission confirmed by letter, addressed to such Owner at the address of such Owner as it appears on the transfer books for American Depositary Shares of the Depositary, or, if such Owner shall have filed with the Depositary a written request that notices intended for such Owner be mailed to some other address, at the address designated in such request.

 

Delivery of a notice sent by mail or cable, telex or facsimile transmission shall be deemed to be effected at the time when a duly addressed letter containing the same (or a confirmation thereof in the case of a cable, telex or facsimile transmission) is deposited, postage prepaid, in a post-office letter box.  The Depositary or the Company may, however, act upon any cable, telex or facsimile transmission received by it, notwithstanding that such cable, telex or facsimile transmission shall not subsequently be confirmed by letter as aforesaid.

 

SECTION 7.06              Submission to Jurisdiction; Appointment of Agent for Service of Process; Jury Trial Waiver.

 

The Company hereby (i) irrevocably designates and appoints Puglisi & Associates, 850 Library Avenue, Suite 204, P.O. Box 885, Newark, Delaware 19715, as the Company’s authorized agent upon which process may be served in any suit or proceeding arising out of or relating to the Shares or Deposited Securities, the American Depositary Shares, the Receipts or this Deposit Agreement, (ii) consents and submits to the jurisdiction of any state or federal court in the State of New York in which any such suit or proceeding may be instituted and (iii) agrees that service of process upon said authorized agent shall be deemed in every respect effective service of process upon the Company in any such suit or proceeding.  The Company agrees to deliver, upon the execution and delivery of this Deposit Agreement, a written acceptance by such agent of

 

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its appointment as such agent.  The Company further agrees to use its best efforts to take any and all reasonable action, including the filing of any and all such documents and instruments, as may be necessary to continue such designation and appointment in full force and effect for so long as any American Depositary Shares or Receipts remain outstanding or this Deposit Agreement remains in force.  In the event the Company fails to continue such designation and appointment in full force and effect, the Company hereby waives personal service of process upon it and consents that any such service of process may be made by certified or registered mail, return receipt requested, directed to the Company at its address last specified for notices hereunder, and service so made shall be deemed completed five (5) days after the same shall have been so mailed.

 

EACH PARTY TO THIS DEPOSIT AGREEMENT (INCLUDING, FOR AVOIDANCE OF DOUBT, EACH OWNER AND HOLDER) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING AGAINST THE COMPANY AND/OR THE DEPOSITARY DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE AMERICAN DEPOSITARY SHARES OR THE RECEIPTS, THIS DEPOSIT AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF, INCLUDING, WITHOUT LIMITATION, ANY QUESTION REGARDING EXISTENCE, VALIDITY OR TERMINATION (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).

 

SECTION 7.07              Waiver of Immunities.

 

To the extent that the Company or any of its properties, assets or revenues may have or may hereafter become entitled to, or have attributed to it, any right of immunity, on the grounds of sovereignty or otherwise, from any legal action, suit or proceeding, from the giving of any relief in any respect thereof, from setoff or counterclaim, from the jurisdiction of any court, from service of process, from attachment upon or prior to judgment, from attachment in aid of execution or judgment, or from execution of judgment, or other legal process or proceeding for the giving of any relief or for the enforcement of any judgment, in any jurisdiction in which proceedings may at any time be commenced, with respect to its obligations, liabilities or any other matter under or arising out of or in connection with the Shares or Deposited Securities, the American Depositary Shares, the Receipts or this Deposit Agreement, the Company, to the fullest extent permitted by law, hereby irrevocably and unconditionally waives, and agrees not to plead or claim, any such immunity and consents to such relief and enforcement.

 

SECTION 7.08              Governing Law.

 

This Deposit Agreement and the Receipts shall be interpreted and all rights hereunder and thereunder and provisions hereof and thereof shall be governed by

 

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the laws of the State of New York, except with respect to its authorization and execution by the Company, which shall be governed by the laws of the Cayman Islands.

 

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IN WITNESS WHEREOF, EDWARDS GROUP LIMITED and THE BANK OF NEW YORK MELLON have duly executed this Deposit Agreement as of the day and year first set forth above and all Owners and Holders shall become parties hereto upon acceptance by them of American Depositary Shares or any interest therein.

 

	
 
    	
EDWARDS   GROUP LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE   BANK OF NEW YORK MELLON,
    
	
 
    	
   as Depositary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

37

 

EXHIBIT A

 

	
 
    	
AMERICAN   DEPOSITARY SHARES
    
	
 
    	
(Each   American Depositary Share represents
    
	
 
    	
one   deposited Share)
    

 

THE BANK OF NEW YORK MELLON

AMERICAN DEPOSITARY RECEIPT

FOR ORDINARY SHARES

OF

EDWARDS GROUP LIMITED

(INCORPORATED UNDER THE LAWS OF THE CAYMAN ISLANDS)

 

The Bank of New York Mellon, as depositary (hereinafter called the “Depositary”), hereby certifies that                                                                                   , or registered assigns IS THE OWNER OF

 

AMERICAN DEPOSITARY SHARES

 

representing deposited ordinary shares (herein called “Shares”) of Edwards Group Limited, a company incorporated under the laws of the Cayman Islands (herein called the “Company”).  At the date hereof, each American Depositary Share represents one Share deposited or subject to deposit under the Deposit Agreement (as such term is hereinafter defined) at the principal London office of The Bank of New York Mellon (herein called the “Custodian”).  The Depositary’s Corporate Trust Office is located at a different address than its principal executive office.  Its Corporate Trust Office is located at 101 Barclay Street, New York, N.Y. 10286, and its principal executive office is located at One Wall Street, New York, N.Y. 10286.

 

THE DEPOSITARY’S CORPORATE TRUST OFFICE ADDRESS IS

101 BARCLAY STREET, NEW YORK, N.Y. 10286

 

 

1.                                      THE DEPOSIT AGREEMENT.

 

This American Depositary Receipt is one of an issue (herein called “Receipts”), all issued and to be issued upon the terms and conditions set forth in the deposit agreement dated as of                     , 2012 (herein called the “Deposit Agreement”) among the Company, the Depositary and all Owners and Holders from time to time of American Depositary Shares issued thereunder, each of whom by accepting American Depositary Shares agrees to become a party thereto and become bound by all the terms and conditions thereof.  The Deposit Agreement sets forth the rights of Owners and Holders and the rights and duties of the Depositary in respect of the Shares deposited thereunder and any and all other securities, property and cash from time to time received in respect of such Shares and held thereunder (such Shares, securities, property, and cash are herein called “Deposited Securities”).  Copies of the Deposit Agreement are on file at the Depositary’s Corporate Trust Office in New York City and at the office of the Custodian.

 

The statements made on the face and reverse of this Receipt are summaries of certain provisions of the Deposit Agreement and are qualified by and subject to the detailed provisions of the Deposit Agreement, to which reference is hereby made.  Capitalized terms defined in the Deposit Agreement and not defined herein shall have the meanings set forth in the Deposit Agreement.

 

2.                                      SURRENDER OF RECEIPTS AND WITHDRAWAL OF SHARES.

 

Upon surrender at the Corporate Trust Office of the Depositary of American Depositary Shares for the purpose of withdrawal of the Deposited Securities represented thereby, and upon payment of the fee of the Depositary for the surrender of American Depositary Shares as provided in this Receipt and payment of all taxes and governmental charges payable in connection with such surrender and withdrawal of the Deposited Securities, and subject to the terms and conditions of the Deposit Agreement and applicable laws and regulations, the Owner of those American Depositary Shares is entitled to delivery, to him or as instructed, of the amount of Deposited Securities at the time represented by those American Depositary Shares.  Such delivery will be made at the option of the Owner hereof, either at the office of the Custodian or at the Corporate Trust Office of the Depositary, provided that the forwarding of certificates for Shares or other Deposited Securities for such delivery at the Corporate Trust Office of the Depositary shall be at the risk and expense of the Owner hereof.

 

3.                                      TRANSFERS, SPLIT-UPS, AND COMBINATIONS OF RECEIPTS.

 

Transfers of American Depositary Shares may be registered on the books of the Depositary by the Owner in person or by a duly authorized attorney, upon surrender of those American Depositary Shares properly endorsed for transfer or accompanied by proper instruments of transfer, in the case of a Receipt, or pursuant to a proper instruction (including, for the avoidance of doubt, instructions through DRS and Profile as provided in Section 2.10 of the Deposit Agreement), in the case of uncertificated American

 

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Depositary Shares, and funds sufficient to pay any applicable transfer taxes and the expenses of the Depositary and upon compliance with such regulations, if any, as the Depositary may establish for such purpose. This Receipt may be split into other such Receipts, or may be combined with other such Receipts into one Receipt, evidencing the same aggregate number of American Depositary Shares as the Receipt or Receipts surrendered. The Depositary, upon surrender of certificated American Depositary Shares for the purpose of exchanging for uncertificated American Depositary Shares, shall cancel those certificated American Depositary Shares and send the Owner a statement confirming that the Owner is the owner of the same number of uncertificated American Depositary Shares. The Depositary, upon receipt of a proper instruction (including, for the avoidance of doubt, instructions through DRS and Profile as provided in Section 2.10 of the Deposit Agreement) from the Owner of uncertificated American Depositary Shares for the purpose of exchanging for certificated American Depositary Shares, shall cancel those uncertificated American Depositary Shares and deliver to the Owner the same number of certificated American Depositary Shares.  As a condition precedent to the delivery, registration of transfer, or surrender of any American Depositary Shares or split-up or combination of any Receipt or withdrawal of any Deposited Securities, the Depositary, the Custodian or Registrar may require payment from the depositor of the Shares or the presenter of the Receipt or instruction for registration of transfer or surrender of American Depositary Shares not evidenced by a Receipt of a sum sufficient to reimburse it for any tax or other governmental charge and any stock transfer or registration fee with respect thereto (including any such tax or charge and fee with respect to Shares being deposited or withdrawn) and payment of any applicable fees as provided in the Deposit Agreement, may require the production of proof satisfactory to it as to the identity and genuineness of any signature and may also require compliance with any applicable laws or regulations or any regulations the Depositary may establish consistent with the provisions of the Deposit Agreement.

 

The delivery of American Depositary Shares against deposit of Shares generally or against deposit of particular Shares may be suspended, or the transfer of American Depositary Shares in particular instances may be refused, or the registration of transfer of outstanding American Depositary Shares generally may be suspended, during any period when the transfer books of the Depositary are closed, or if any such action is deemed necessary or advisable by the Depositary or the Company at any time or from time to time because of any requirement of law or of any government or governmental body or commission, or if any stock exchange where the Shares are listed suspends the trading of the Shares for any reason, or under any provision of the Deposit Agreement, or for any other reason, subject to the provisions of the following sentence. Notwithstanding anything to the contrary in the Deposit Agreement or this Receipt, the surrender of outstanding American Depositary Shares and withdrawal of Deposited Securities may not be suspended subject only to (i) temporary delays caused by closing the transfer books of the Depositary or the Company or the Foreign Registrar, if applicable, or the deposit of Shares in connection with voting at a shareholders’ meeting, or the payment of dividends, (ii) the payment of fees, taxes and similar charges, and (iii) compliance with any U.S. or

 

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foreign laws or governmental regulations relating to the American Depositary Shares or to the withdrawal of the Deposited Securities.  Without limitation of the foregoing, the Depositary shall not knowingly accept for deposit under the Deposit Agreement any Shares (A) which would be required to be registered under the provisions of the Securities Act of 1933 for public offer and sale in the United States unless a registration statement is in effect as to such Shares for such offer and sale or (B) for which the Depositary has received written instructions with respect thereto from the Company that the deposit of such Shares would violate applicable law or regulation.

 

4.                                      LIABILITY OF OWNER FOR TAXES.

 

If any tax or other governmental charge shall become payable with respect to any American Depositary Shares or any Deposited Securities represented by any American Depositary Shares, such tax or other governmental charge shall be payable by the Owner to the Depositary.  The Depositary may refuse to register any transfer of those American Depositary Shares or to permit any withdrawal of Deposited Securities represented by those American Depositary Shares until such payment is made, and may withhold any dividends or other distributions, or may sell for the account of the Owner any part or all of the Deposited Securities represented by those American Depositary Shares, and may apply such dividends or other distributions or the proceeds of any such sale in payment of such tax or other governmental charge and the Owner shall remain liable for any deficiency.  Every Owner agrees to indemnify the Depositary, the Company, the Custodian, and any of their agents, officers, employees and affiliates for, and to hold each of them harmless from, any claims with respect to taxes (including applicable interest and penalties thereon) arising from any tax benefit obtained for such Owner.

 

5.                                      WARRANTIES ON DEPOSIT OF SHARES.

 

Every person depositing Shares under the Deposit Agreement shall be deemed thereby to represent and warrant, that such Shares and each certificate therefor, if applicable, are validly issued, fully paid, nonassessable and free of any preemptive rights of the holders of outstanding Shares and that the person making such deposit is duly authorized so to do and the Shares presented for deposit are free and clear of any lien, encumbrance, security interest, charge, mortgage or adverse claim, and the Shares presented for deposit have not been stripped of any rights or entitlements.  Every such person shall also be deemed to represent that the deposit of such Shares and the sale of American Depositary Shares representing such Shares by that person are not restricted under the Securities Act of 1933.  Such representations and warranties shall survive the deposit of Shares and delivery of American Depositary Shares and the withdrawal and cancellation of the American Depositary Shares.  If any such representations or warranties are false in any way, the Company and the Depositary shall be authorized, at the cost and expense of the person depositing Shares, to take any and all actions reasonably necessary to correct the consequences thereof.

 

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6.                                      FILING PROOFS, CERTIFICATES, AND OTHER INFORMATION.

 

Any person presenting Shares for deposit or any Owner or Holder may be required from time to time to file with the Depositary or the Custodian such proof of citizenship or residence, taxpayer status, exchange control approval, or such information relating to the registration on the books of the Company or the Foreign Registrar, if applicable, to execute such certificates and to make such representations and warranties, as the Depositary may reasonably deem necessary or proper or as the Company may reasonably request.  The Depositary may withhold the delivery or registration of transfer of any American Depositary Shares or the distribution of any dividend or sale or distribution of rights or of the proceeds thereof or the delivery of any Deposited Securities until such proof or other information is filed or such certificates are executed or such representations and warranties made.  Upon the written request and at the expense of the Company, the Depositary shall, as promptly as practicable, provide to the Company copies or originals, if necessary and appropriate, of any proofs of citizenship or residence, taxpayer status, exchange control approval, information, certificate or other representations and warranties that the Depositary receives under Section 3.01 of the Deposit Agreement from the Owner or Holder or any person presenting Shares for deposit, in each case to the extent that disclosure is permitted by applicable law and regulations.  Each Owner and Holder agrees to provide any information requested by the Company or the Depositary pursuant to Section 3.01 of the Deposit Agreement.  Neither the Company nor the Depositary is responsible for monitoring the Owners’ or the Holders’ compliance with applicable laws and regulations or their legal right to acquire Shares or American Depositary Shares.  No Share shall be accepted for deposit unless accompanied by evidence satisfactory to the Depositary that any necessary approval has been granted by any governmental body in each applicable jurisdiction that is then performing the function of the regulation of currency exchange or other function that requires approval for the deposit of Shares.

 

7.                                      CHARGES OF DEPOSITARY.

 

The following charges shall be incurred by any party depositing or withdrawing Shares or by any party surrendering American Depositary Shares or to whom American Depositary Shares are issued (including, without limitation, issuance pursuant to a stock dividend or stock split declared by the Company or an exchange of stock regarding the American Depositary Shares or Deposited Securities or a delivery of American Depositary Shares pursuant to Section 4.03 of the Deposit Agreement), or by Owners, as applicable:  (1) taxes and other governmental charges, (2) such registration fees as may from time to time be in effect for the registration of transfers of Shares generally on the Share register of the Company or Foreign Registrar and applicable to transfers of Shares to or from the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals under the terms of the Deposit Agreement, (3) such cable, telex and facsimile transmission expenses as are expressly provided in the Deposit Agreement, (4) such expenses as are incurred by the Depositary in the conversion of foreign currency pursuant to Section 4.05 of the Deposit Agreement, (5) a fee of $5.00 or less per 100 American Depositary Shares (or portion thereof) for the

 

4

 

delivery of American Depositary Shares pursuant to Section 2.03, 4.03 or 4.04 of the Deposit Agreement and the surrender of American Depositary Shares pursuant to Section 2.05 or 6.02 of the Deposit Agreement, (6) a fee of $.05 or less per American Depositary Share (or portion thereof) for any cash distribution made pursuant to the Deposit Agreement, including, but not limited to Sections 4.01 through 4.04 of the Deposit Agreement, (7) a fee for the distribution of securities pursuant to Section 4.02 of the Deposit Agreement, such fee being in an amount equal to the fee for the execution and delivery of American Depositary Shares referred to above which would have been charged as a result of the deposit of such securities (for purposes of this clause 7 treating all such securities as if they were Shares) but which securities are instead distributed by the Depositary to Owners, (8) in addition to any fee charged under clause 6, a fee of $.05 or less per American Depositary Share (or portion thereof) per annum for depositary services, which will be payable as provided in clause 9 below, and (9) any other charges payable by the Depositary, any of the Depositary’s agents, including the Custodian, or the agents of the Depositary’s agents in connection with the servicing of Shares or other Deposited Securities (which charge shall be assessed against Owners as of the date or dates set by the Depositary in accordance with Section 4.06 of the Deposit Agreement and shall be payable at the sole discretion of the Depositary by billing such Owners for such charge or by deducting such charge from one or more cash dividends or other cash distributions).

 

The Depositary, subject to Article 8 hereof, may own and deal in any class of securities of the Company and its affiliates and in American Depositary Shares.

 

From time to time, the Depositary may make payments to the Company to reimburse and / or share revenue from the fees collected from Owners or Holders, or waive fees and expenses for services provided, generally relating to costs and expenses arising out of establishment and maintenance of the American Depositary Shares program.  In performing its duties under the Deposit Agreement, the Depositary may use brokers, dealers or other service providers that are affiliates of the Depositary and that may earn or share fees or commissions.

 

8.                                      PRE-RELEASE OF RECEIPTS.

 

Notwithstanding Section 2.03 of the Deposit Agreement and unless requested by the Company in writing to do so, the Depositary may deliver American Depositary Shares prior to the receipt of Shares pursuant to Section 2.02 of the Deposit Agreement (a “Pre-Release”).  The Depositary may, pursuant to Section 2.05 of the Deposit Agreement, deliver Shares upon the surrender of American Depositary Shares that have been Pre-Released, whether or not such cancellation is prior to the termination of such Pre-Release or the Depositary knows that such American Depositary Shares have been Pre-Released.  The Depositary may receive American Depositary Shares in lieu of Shares in satisfaction of a Pre-Release.  Each Pre-Release will be (a) preceded or accompanied by a written representation from the person to whom American Depositary Shares or Shares are to be

 

5

 

delivered, that such person, or its customer, (i) beneficially owns the Shares or American Depositary Shares to be remitted, as the case may be, (ii) assigns all beneficial right, title and interest in such American Depositary Shares or Shares, as the case may be, to the Depositary in its capacity as such and for the benefit of the Owners and (iii) will not take any action with respect to such American Depositary Shares or Shares, as the case may be, that is inconsistent with the transfer of beneficial ownership (including, without the consent of the Depositary, disposing of such American Depositary Shares or Shares, as the case may be), other than in satisfaction of the Pre-Release, (b) at all times fully collateralized with cash or such other collateral as the Depositary deems appropriate, (c) terminable by the Depositary on not more than five (5) business days notice, and (d) subject to such further indemnities and credit regulations as the Depositary deems appropriate.  The number of Shares represented by American Depositary Shares that are outstanding at any time as a result of Pre-Release will not normally exceed thirty percent (30%) of the Shares deposited under the Deposit Agreement; provided, however, that the Depositary reserves the right to change or disregard such limit from time to time as it deems reasonably appropriate.  The collateral referred to in clause (b) above shall be held by the Depositary for the benefit of the Owners as security for the performance of the obligations to deliver Shares or American Depositary Shares, as the case may be, in satisfaction of a Pre-Release transaction (but shall not, for the avoidance of doubt, constitute Deposited Securities).

 

The Depositary may retain for its own account any compensation received by it in connection with the foregoing.

 

9.                                      TITLE TO RECEIPTS.

 

It is a condition of this Receipt and every successive Owner and Holder of this Receipt by accepting or holding the same consents and agrees that when properly endorsed or accompanied by proper instruments of transfer, shall be transferable as certificated registered securities under the laws of the State of New York. American Depositary Shares not evidenced by Receipts shall be transferable as uncertificated registered securities under the laws of the State of New York.  The Depositary and the Company, notwithstanding any notice to the contrary, may deem and treat the Owner of American Depositary Shares as the absolute owner thereof for the purpose of determining the person entitled to distribution of dividends or other distributions or to any notice provided for in the Deposit Agreement and for all other purposes, and neither the Depositary nor the Company shall have any obligation or be subject to any liability under the Deposit Agreement to any Holder of American Depositary Shares unless that Holder is the Owner of those American Depositary Shares.

 

10.                               VALIDITY OF RECEIPT.

 

This Receipt shall not be entitled to any benefits under the Deposit Agreement or be valid or obligatory for any purpose, unless this Receipt shall have been (i) executed by the Depositary by the manual signature of a duly authorized officer of the Depositary or

 

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(ii) executed by the facsimile signature of a duly authorized officer of the Depositary and countersigned by the manual signature of a duly authorized signatory of the Depositary or a Registrar.

 

11.                               REPORTS; INSPECTION OF TRANSFER BOOKS.

 

The Company is subject to the periodic reporting requirements of the Securities Exchange Act of 1934 and, accordingly, files reports with the Commission.  Those reports will be available for inspection and copying through the Commission’s EDGAR system on the Internet at www.sec.gov or at public reference facilities maintained by the Commission located at 100 F Street, N.E., Washington, D.C. 20549.

 

The Depositary will make available for inspection by Owners at its Corporate Trust Office any notices, reports and other communications, including any proxy solicitation material, received from the Company which are both (a) received by the Depositary as the holder of the Deposited Securities and (b) made generally available to the holders of such Deposited Securities by the Company.  The Depositary will also, upon written request by the Company, send to the Owners copies of such communications when furnished by the Company pursuant to the Deposit Agreement.  Any such notices, reports and communications, including any such proxy soliciting material, furnished to the Depositary by the Company shall be furnished in English to the extent such materials are required to be translated into English pursuant to any regulations of the Commission.

 

The Depositary will keep books, at its Corporate Trust Office, for the registration of American Depositary Shares and transfers of American Depositary Shares which at all reasonable times shall be open for inspection by the Owners, provided that such inspection shall not be for the purpose of communicating with Owners in the interest of a business or object other than the business of the Company or a matter related to the Deposit Agreement or the American Depositary Shares.

 

12.                               DIVIDENDS AND DISTRIBUTIONS.

 

Whenever the Depositary receives any cash dividend or other cash distribution on any Deposited Securities, the Depositary will, if at the time of receipt thereof any amounts received in a foreign currency can in the judgment of the Depositary be converted on a reasonable basis into United States dollars transferable to the United States, and subject to the Deposit Agreement, convert such dividend or distribution into dollars and will distribute the amount thus received (net of the fees and expenses of the Depositary as provided in Article 7 hereof and Section 5.09 of the Deposit Agreement) to the Owners entitled thereto as of the record date fixed pursuant to Section 4.06 of the Deposit Agreement, in proportion to the number of American Depositary Shares representing such Deposited Securities held by them respectively; provided, however, that in the event that the Custodian or the Depositary is required to withhold and does withhold from such cash dividend or such other cash distribution an amount on account

 

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of taxes or other governmental charges, the amount distributed to the Owners of the American Depositary Shares representing such Deposited Securities shall be reduced accordingly.

 

The Depositary shall distribute only such amount, however, as can be distributed without attributing to any Owner a fraction of one cent.  Any such fractional amounts shall be rounded to the nearest whole cent and so distributed to the Owners entitled thereto.  The Company or its agent will remit to the appropriate governmental agency in each applicable jurisdiction all amounts withheld and owing to such agency.  The Depositary will forward to the Company or its agent such information from its records as the Company may reasonably request to enable the Company or its agent to file necessary reports with governmental agencies, and the Depositary or the Company or its agent may file any such reports necessary to obtain benefits under the applicable tax treaties for the Owners, provided that neither the Depositary nor the Company shall have any obligation to file such reports.

 

Subject to the provisions of Sections 4.11 and 5.09 of the Deposit Agreement, whenever the Depositary receives any distribution other than a distribution described in Section 4.01, 4.03 or 4.04 of the Deposit Agreement, the Depositary will, after consultation with the Company, cause the securities or property received by it to be distributed to the Owners entitled thereto, after deduction or upon payment of any fees and expenses of the Depositary or any taxes or other governmental charges, in proportion to the number of American Depositary shares representing such Deposited Securities held by them respectively, in any manner that the Depositary may deem equitable and practicable for accomplishing such distribution; provided, however, that if in the opinion of the Depositary such distribution cannot be made proportionately among the Owners of Receipts entitled thereto, or if for any other reason (including, but not limited to, any requirement that the Company or the Depositary withhold an amount on account of taxes or other governmental charges or that such securities must be registered under the Securities Act of 1933 in order to be distributed to Owners or Holders) the Depositary deems such distribution not to be feasible, the Depositary may adopt, after consultation with the Company to the extent practicable, such method as it may deem equitable and practicable for the purpose of effecting such distribution, including, but not limited to, the public or private sale of the securities or property thus received, or any part thereof, and the net proceeds of any such sale (net of the fees and expenses of the Depositary as provided in Article 7 hereof and Section 5.09 of the Deposit Agreement) will be distributed by the Depositary to the Owners of Receipts entitled thereto all in the manner and subject to the conditions described in Section 4.01 of the Deposit Agreement; provided, further, that no distribution to Owners pursuant to Section 4.02 of the Deposit Agreement shall be unreasonably delayed by any action of the Depositary.  To the extent such securities or property or the net proceeds thereof are not distributed to Owners as provided in this Section 4.02, the same shall constitute Deposited Securities and each American Depositary Share shall thereafter also represent its proportionate interest in such securities, property or net proceeds.  The Depositary may withhold any distribution

 

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of securities under Section 4.02 of the Deposit Agreement if it has not received reasonably satisfactory assurances from the Company that the distribution does not require registration under the Securities Act of 1933.  The Depositary may sell, by public or private sale, an amount of securities or other property it would otherwise distribute under this Article that is sufficient to pay its fees and expenses in respect of that distribution.

 

If any distribution consists of a dividend in, or free distribution of, Shares, the Depositary may, and, if the Company so requests in writing, shall, as promptly as practicable and subject to the following sentence deliver to the Owners entitled thereto, in proportion to the number of American Depositary Shares representing such Deposited Securities held by them respectively, an aggregate number of American Depositary Shares representing the amount of Shares received as such dividend or free distribution, subject to the terms and conditions of the Deposit Agreement with respect to the deposit of Shares and issuance of American Depositary Shares, including withholding of any tax or governmental charge as provided in Section 4.11 of the Deposit Agreement and payment of the fees and expenses of the Depositary as provided in Article 7 hereof and Section 5.09 of the Deposit Agreement (and the Depositary may sell, by public or private sale, an amount of Shares received sufficient to pay its fees and expenses in respect of that distribution).  The Depositary may withhold any such delivery of American Depositary Shares if it has not received satisfactory assurances from the Company that such distribution does not require registration under the Securities Act of 1933. In lieu of delivering fractional American Depositary Shares in any such case, the Depositary may sell the amount of Shares represented by the aggregate of such fractions and distribute the net proceeds, all in the manner and subject to the conditions described in Section 4.01 of the Deposit Agreement.  If additional American Depositary Shares are not so delivered, each American Depositary Share shall thenceforth also represent the additional Shares distributed upon the Deposited Securities represented thereby.

 

In the event that the Depositary reasonably determines that any distribution in property (including Shares and rights to subscribe therefor) is subject to any tax or other governmental charge which the Depositary is obligated to withhold, the Depositary may by public or private sale dispose of all or a portion of such property (including Shares and rights to subscribe therefor) in such amounts and in such manner as the Depositary reasonably deems necessary and practicable to pay any such taxes or charges, and the Depositary shall distribute the net proceeds of any such sale after deduction of such taxes or charges to the Owners of Receipts entitled thereto in proportion to the number of American Depositary Shares held by them respectively.

 

13.                               RIGHTS.

 

In the event that the Company shall offer or cause to be offered to the holders of any Deposited Securities any rights to subscribe for additional Shares or any rights of any other nature, the Depositary shall, after consultation with the Company, have discretion

 

9

 

as to the procedure to be followed in making such rights available to any Owners or in disposing of such rights on behalf of any Owners and making the net proceeds available to such Owners or, if by the terms of such rights offering or for any other reason, the Depositary may not either make such rights available to any Owners or dispose of such rights and make the net proceeds available to such Owners, then the Depositary shall allow the rights to lapse.  If at the time of the offering of any rights the Depositary determines in its discretion that it is lawful and feasible to make such rights available to all or certain Owners but not to other Owners, the Depositary, after consultation with the Company, may distribute to any Owner to whom it determines the distribution to be lawful and feasible, in proportion to the number of American Depositary Shares held by such Owner, warrants or other instruments therefor in such form as it deems appropriate.

 

In circumstances in which rights would otherwise not be distributed, if an Owner requests the distribution of warrants or other instruments in order to exercise the rights allocable to the American Depositary Shares of such Owner under the Deposit Agreement, the Depositary will make such rights available to such Owner upon written notice from the Company to the Depositary that (a) the Company has elected in its sole discretion to permit such rights to be exercised and (b) such Owner has executed such documents as the Company has determined in its sole discretion are reasonably required under applicable law.

 

If the Depositary has distributed warrants or other instruments for rights to all or certain Owners, then upon instruction from such an Owner pursuant to such warrants or other instruments to the Depositary from such Owner to exercise such rights, upon payment by such Owner to the Depositary for the account of such Owner of an amount equal to the purchase price of the Shares to be received upon the exercise of the rights, and upon payment of the fees and expenses of the Depositary and any other charges as set forth in such warrants or other instruments, the Depositary shall, on behalf of such Owner, exercise the rights and purchase the Shares, and the Company shall cause the Shares so purchased to be delivered to the Depositary on behalf of such Owner.  As agent for such Owner, the Depositary will cause the Shares so purchased to be deposited pursuant to Section 2.02 of the Deposit Agreement, and shall, pursuant to Section 2.03 of the Deposit Agreement, deliver American Depositary Shares to such Owner.  In the case of a distribution pursuant to the second paragraph of this Article 13, such deposit shall be made, and depositary shares shall be delivered, under depositary arrangements which provide for issuance of depositary shares subject to the appropriate restrictions on sale, deposit, cancellation, and transfer under applicable United States laws.

 

If the Depositary determines in its discretion that it is not lawful and feasible to make such rights available to all or certain Owners, it may sell the rights, warrants or other instruments in proportion to the number of American Depositary Shares held by the Owners to whom it has determined it may not lawfully or feasibly make such rights available, and allocate the net proceeds of such sales (net of the fees and expenses of the Depositary as provided in Section 5.09 of the Deposit Agreement and all taxes and

 

10

 

governmental charges payable in connection with such rights and subject to the terms and conditions of the Deposit Agreement) for the account of such Owners otherwise entitled to such rights, warrants or other instruments, upon an averaged or other practical basis without regard to any distinctions among such Owners because of exchange restrictions or the date of delivery of any American Depositary Shares or otherwise.

 

The Depositary will not offer rights to Owners unless both the rights and the securities to which such rights relate are either exempt from registration under the Securities Act of 1933 with respect to a distribution to all Owners or are registered under the provisions of such Act; provided, that nothing in the Deposit Agreement shall create any obligation on the part of the Company to file a registration statement with respect to such rights or underlying securities or to endeavor to have such a registration statement declared effective.  If an Owner requests the distribution of warrants or other instruments, notwithstanding that there has been no such registration under the Securities Act of 1933, the Depositary shall not effect such distribution unless it has received an opinion from recognized counsel in the United States for the Company upon which the Depositary may rely that such distribution to such Owner is exempt from such registration.

 

Neither, the Depositary nor the Company shall be responsible for any failure to determine that it may be lawful or feasible to make such rights available to Owners in general or any Owner in particular.

 

14.                               CONVERSION OF FOREIGN CURRENCY.

 

Whenever the Depositary or the Custodian shall receive foreign currency, by way of dividends or other distributions or the net proceeds from the sale of securities, property or rights, and if at the time of the receipt thereof the foreign currency so received can in the judgment of the Depositary be converted on a reasonable basis into Dollars and the resulting Dollars transferred to the United States, the Depositary shall convert or cause to be converted by sale or in any other manner that it may reasonably determine, such foreign currency into Dollars, and such Dollars shall be distributed to the Owners entitled thereto or, if the Depositary shall have distributed any warrants or other instruments which entitle the holders thereof to such Dollars, then to the holders of such warrants and/or instruments upon surrender thereof for cancellation.  Such distribution may be made upon an averaged or other practicable basis without regard to any distinctions among Owners on account of exchange restrictions, the date of delivery of any American Depositary Shares or otherwise and shall be net of any expenses of conversion into Dollars incurred by the Depositary as provided in Section 5.09 of the Deposit Agreement.

 

If such conversion or distribution can be effected only with the approval or license of, or requires a filing with, any government or agency thereof, the Depositary shall file such application for approval or license, or make such filing, if any, as it may deem desirable.  The Company shall have no obligation to make any such filings.

 

11

 

If at any time the Depositary shall determine that in its reasonable judgment any foreign currency received by the Depositary or the Custodian is not convertible on a reasonable basis into Dollars transferable to the United States, or if any approval or license of any government or agency thereof which is required for such conversion is denied or in the reasonable opinion of the Depositary is not obtainable, or if any such approval or license is not obtained within a reasonable period as determined by the Depositary, the Depositary may distribute the foreign currency (or an appropriate document evidencing the right to receive such foreign currency) received by the Depositary to, or in its discretion may hold such foreign currency uninvested and without liability for interest thereon for the respective accounts of, the Owners entitled to receive the same.

 

If any such conversion of foreign currency, in whole or in part, cannot be effected for distribution to some of the Owners entitled thereto, the Depositary may in its discretion make such conversion and distribution in Dollars to the extent permissible to the Owners entitled thereto and may distribute the balance of the foreign currency received by the Depositary to, or hold such balance uninvested and without liability for interest thereon for the respective accounts of, the Owners entitled thereto.

 

15.                               RECORD DATES.

 

Whenever any cash dividend or other cash distribution shall become payable or any distribution other than cash shall be made, or whenever rights shall be issued with respect to the Deposited Securities, or whenever the Depositary shall receive notice of any meeting of holders of Shares or other Deposited Securities, or whenever for any reason the Depositary causes a change in the number of Shares that are represented by each American Depositary Share, or whenever the Depositary shall find it necessary or convenient, the Depositary shall fix a record date which shall be the same as, or as near as practicable to, any corresponding record date fixed by the Company with respect to the Deposited Securities (a) for the determination of the Owners who shall be (i) entitled to receive such dividend, distribution or rights or the net proceeds of the sale thereof, (ii) entitled to give instructions for the exercise of voting rights at any such meeting or (iii) responsible for any fee or charge assessed by the Depositary pursuant to the Deposit Agreement, or (b) on or after which each American Depositary Share will represent the changed number of Shares, subject to the provisions of the Deposit Agreement, the Owners on such record date will be entitled, as the case may be, to receive the amount distributable by the Depositary with respect to such dividend or other distribution or such rights or the net proceeds of sale thereof in proportion to the number of American Depositary Shares held by them respectively and to give voting instructions and to act in respect of any other such matter.

 

16.                               VOTING OF DEPOSITED SECURITIES.

 

Upon receipt from the Company of notice of any meeting or solicitation of proxies or consents of holders of Shares or other Deposited Securities, the Depositary

 

12

 

shall, if requested in writing by the Company, as soon as practicable thereafter, mail to the Owners of Receipts a notice, the form of which notice shall be in the sole discretion of the Depositary (unless otherwise instructed by the Company), which shall contain (a) such information as is contained in such notice of meeting received by the Depositary from the Company, (b) a statement that the Owners as of the close of business on a specified record date will be entitled, subject to any applicable provision of Cayman Islands law and of the memorandum and articles of association or similar documents of the Company, to instruct the Depositary as to the exercise of the voting rights, if any, pertaining to the amount of Shares or other Deposited Securities represented by their respective American Depositary Shares and (c) a statement as to the manner in which such instructions may be given.  Upon the written request of an Owner of American Depositary Shares on such record date, received on or before the date established by the Depositary for such purpose, the Depositary shall endeavor insofar as practicable to vote or cause to be voted the amount of Shares or other Deposited Securities represented by those American Depositary Shares in accordance with the instructions set forth in such request.  Neither the Depositary nor the Custodian shall under any circumstances exercise any discretion as to voting, and neither the Depositary nor the Custodian shall vote or attempt to exercise the right to vote that attaches to the Deposited Securities except in accordance with the voting instructions received from Owners.

 

There can be no assurance that Owners generally or any Owner in particular will receive the notice described in the preceding paragraph sufficiently prior to the instruction date to ensure that the Depositary will vote the Shares or Deposited Securities in accordance with the provisions set forth in the preceding paragraph.

 

In order to give Owners a reasonable opportunity to instruct the Depositary as to the exercise of voting rights relating to Deposited Securities, if the Company will request the Depositary to act under Section 4.07 of the Deposit Agreement, the Company shall give the Depositary notice of any such meeting or solicitation and details concerning the matters to be voted upon not less than 45 days prior to the meeting date or date for giving such proxies or consents.

 

17.                               CHANGES AFFECTING DEPOSITED SECURITIES.

 

Upon any change in nominal value, change in par value, subdivision, consolidation, or any other reclassification of Deposited Securities, or upon any recapitalization, reorganization, merger or consolidation, or sale of assets affecting the Company or to which it is a party, or upon the redemption or cancellation by the Company of the Deposited Securities, any securities, cash or property which shall be received by the Depositary or a Custodian in exchange for, in conversion of, in lieu of or in respect of Deposited Securities shall be treated as new Deposited Securities under the Deposit Agreement, and American Depositary Shares shall thenceforth represent, in addition to the existing Deposited Securities, the right to receive the new Deposited Securities so received, unless additional Receipts are delivered pursuant to the following

 

13

 

sentence.  In any such case the Depositary may deliver additional American Depositary Shares as in the case of a dividend in Shares, or call for the surrender of outstanding Receipts to be exchanged for new Receipts specifically describing such new Deposited Securities.  The Depositary will give Owners notice of an event to which this Section 4.08 applies as promptly as practicable if the event affects holdings of American Depositary Shares.  Notwithstanding the foregoing, in the event that any security so received may not be lawfully distributed to some or all Owners, the Depositary may, and shall if the Company so requests in writing, subject to receipt of an opinion of Company’s counsel satisfactory to the Depositary that such action is not in violation of any applicable laws or regulations, sell such securities at public or private sale, at such place or places and upon such terms as it may deem practicable and shall allocate the net proceeds of such sales (net of (a) fees and charges of, and expenses incurred by, the Depositary and (b) taxes) for the account of the Owners otherwise entitled to such securities upon an averaged or other practicable basis without regard to any distinctions among such Owners and distribute the net proceeds so allocated to the extent practicable as in the case of a distribution received in cash pursuant to Section 4.01.

 

18.                               LIABILITY OF THE COMPANY AND DEPOSITARY.

 

Neither the Depositary nor the Company nor any of their respective directors, officers, employees, agents, controlling persons or affiliates shall incur any liability to any Owner or Holder, (i) if by reason of any provision of any present or future law or regulation of the United States or any other country, or of any governmental or regulatory authority or stock exchange, or by reason of any provision, present or future, of the memorandum and articles of association or any similar document of the Company, or by reason of any provision of any securities issued or distributed by the Company, or any offering or distribution thereof, or by reason of any act of God or war or terrorism or other circumstances beyond its control, the Depositary or the Company shall be prevented, delayed or forbidden from or be subject to any civil or criminal penalty on account of doing or performing any act or thing which by the terms of the Deposit Agreement or Deposited Securities it is provided shall be done or performed, (ii) by reason of any non-performance or delay, caused as aforesaid, in the performance of any act or thing which by the terms of the Deposit Agreement it is provided shall or may be done or performed, (iii) by reason of any exercise of, or failure to exercise, any discretion provided for in the Deposit Agreement, (iv) for the inability of any Owner or Holder to benefit from any distribution, offering, right or other benefit which is made available to holders of Deposited Securities but is not, under the terms of the Deposit Agreement, made available to Owners or Holders, or (v) for any special, consequential or punitive damages for any breach of the terms of the Deposit Agreement.  Where, by the terms of a distribution pursuant to Section 4.01, 4.02 or 4.03 of the Deposit Agreement, or an offering or distribution pursuant to Section 4.04 of the Deposit Agreement, or for any other reason, such distribution or offering may not be made available to Owners of Receipts, and the Depositary may not dispose of such distribution or offering on behalf of such Owners and make the net proceeds available to such Owners, then the Depositary

 

14

 

shall not make such distribution or offering, and shall allow any rights, if applicable, to lapse.  Neither the Company nor the Depositary assumes any obligation or shall be subject to any liability under the Deposit Agreement to Owners or Holders, except that they agree to perform their obligations specifically set forth in the Deposit Agreement without negligence or bad faith.  The Depositary shall not be subject to any liability with respect to the validity or worth of the Deposited Securities.  Neither the Depositary nor the Company nor any of their respective directors, officers, employees, agents or controlling persons shall be under any obligation to appear in, prosecute or defend any action, suit, or other proceeding in respect of any Deposited Securities or in respect of the American Depositary Shares, on behalf of any Owner or Holder or any other person.  Neither the Depositary nor the Company nor any of their respective directors, officers, employees, agents or controlling persons shall be liable for any action or nonaction by it or them in reliance upon the advice of or information from legal counsel, accountants, any person presenting Shares for deposit, any Owner or Holder, or any other person believed by it or them in good faith to be competent to give such advice or information.  Each of the Depositary, its controlling persons and its agents and the Company, its directors, officers, employees, agents and controlling persons may rely and shall be protected in acting upon any written notice, request, direction or other document believed by it to be genuine and to have been signed or presented by the proper party or parties.  The Depositary shall not be liable for any acts or omissions made by a successor depositary whether in connection with a previous act or omission of the Depositary or in connection with a matter arising wholly after the removal or resignation of the Depositary, provided that in connection with the issue out of which such potential liability arises, the Depositary performed its obligations without negligence or bad faith while it acted as Depositary.  Neither the Depositary nor the Company shall be liable for the acts or omissions of any securities depository, clearing agency or settlement system in connection with or arising out of book-entry settlement of Deposited Securities or otherwise.  The Depositary shall not be responsible for any failure to carry out any instructions to vote any of the Deposited Securities or for the manner in which any such vote is cast or the effect of any such vote, provided that any such action or nonaction is in good faith.

 

No disclaimer of liability under the Securities Act of 1933 is intended by any provision of the Deposit Agreement.

 

19.                                 RESIGNATION AND REMOVAL OF THE DEPOSITARY; APPOINTMENT OF SUCCESSOR CUSTODIAN.

 

The Depositary may at any time resign as Depositary under the Deposit Agreement by written notice of its election so to do delivered to the Company, such resignation to take effect upon the appointment of a successor depositary and its acceptance of such appointment as provided in the Deposit Agreement.  The Depositary may at any time be removed by the Company by 90 days prior written notice of such removal, to become effective upon the later of (i) the 90th day after delivery of the notice

 

15

 

to the Depositary and (ii) the appointment of a successor depositary and its acceptance of such appointment as provided in the Deposit Agreement.  The Depositary in its discretion may appoint a substitute or additional custodian or custodians.

 

20.                               AMENDMENT.

 

The form of the Receipts and any provisions of the Deposit Agreement may at any time and from time to time be amended or supplemented by written agreement between the Company and the Depositary without the consent of Owners or Holders in any respect which they may deem necessary or desirable.  Any amendment or supplement which shall impose or increase any fees or charges (other than taxes and other governmental charges, registration fees, cable, telex or facsimile transmission costs, delivery costs or other such expenses), or which shall otherwise prejudice any substantial existing right of Owners, shall, however, not become effective as to outstanding American Depositary Shares until the expiration of 30 days after notice of such amendment shall have been given to the Owners of outstanding American Depositary Shares.  The parties agree that any amendments or supplements which (i) are reasonably necessary (as agreed by the Company and the Depositary) in order for the American Depositary Shares to the registered on Form F-6 under the Securities Act of 1933 and (ii) do not impose or increase any applicable fees or charges to be borne by the Owners, shall be deemed not to prejudice any substantial rights of Owners.  Every Owner and Holder of American Depositary Shares, at the time any amendment so becomes effective, shall be deemed, by continuing to hold such American Depositary Shares or any interest therein, to consent and agree to such amendment and to be bound by the Deposit Agreement as amended thereby. In no event shall any amendment impair the right of the Owner to surrender American Depositary Shares and receive therefor the Deposited Securities represented thereby, except in order to comply with mandatory provisions of applicable law.  Notwithstanding the foregoing, if any governmental body should adopt new laws, rules or regulations which would require an amendment or supplement of this Deposit Agreement to ensure compliance therewith, the Company and the Depositary may amend or supplement this Deposit Agreement at any time in accordance with such changed laws, rules and regulations.  Such amendment or supplement to this Deposit Agreement in such circumstances may become effective before a notice of such amendment or supplement is given to Owners or within any other period of time as required for compliance with such laws, rules or regulations.

 

21.                               TERMINATION OF DEPOSIT AGREEMENT.

 

The Company may terminate the Deposit Agreement by instructing the Depositary to mail notice of termination to the Owners of all American Depositary Shares then outstanding at least 30 days prior to the termination date included in such notice.  The Depositary may likewise terminate the Deposit Agreement, if at any time 60 days shall have expired after the Depositary delivered to the Company a written resignation notice and if a successor depositary shall not have been appointed and

 

16

 

accepted its appointment as provided in the Deposit Agreement; in such case the Depositary shall mail a notice of termination to the Owners of all American Depositary Shares then outstanding at least 30 days prior to the termination date.  On and after the date of termination, the Owner of American Depositary Shares will, upon (a) surrender of such American Depositary Shares, (b) payment of the fee of the Depositary for the surrender of American Depositary Shares referred to in Section 2.05, and (c) payment of any applicable taxes or governmental charges, be entitled to delivery, to him or upon his order, of the amount of Deposited Securities represented by those American Depositary Shares.  If any American Depositary Shares shall remain outstanding after the date of termination, the Depositary thereafter shall discontinue the registration of transfers of American Depositary Shares, shall suspend the distribution of dividends to the Owners thereof, and shall not give any further notices or perform any further acts under the Deposit Agreement, except that the Depositary shall continue to collect dividends and other distributions pertaining to Deposited Securities, shall sell rights and other property as provided in the Deposit Agreement, and shall continue to deliver Deposited Securities, together with any dividends or other distributions received with respect thereto and the net proceeds of the sale of any rights or other property, upon surrender of American Depositary Shares (after deducting, in each case, the fee of the Depositary for the surrender of American Depositary Shares, any expenses for the account of the Owner of such American Depositary Shares in accordance with the terms and conditions of the Deposit Agreement, and any applicable taxes or governmental charges). At any time after the expiration of four months from the date of termination, the Depositary may sell the Deposited Securities then held under the Deposit Agreement and may thereafter hold uninvested the net proceeds of any such sale, together with any other cash then held by it thereunder, unsegregated and without liability for interest, for the pro rata benefit of the Owners of American Depositary Shares that have not theretofore been surrendered, such Owners thereupon becoming general creditors of the Depositary with respect to such net proceeds. After making such sale, the Depositary shall be discharged from all obligations under the Deposit Agreement, except to account for such net proceeds and other cash (after deducting, in each case, the fee of the Depositary for the surrender of American Depositary Shares, any expenses for the account of the Owner of such American Depositary Shares in accordance with the terms and conditions of the Deposit Agreement, and any applicable taxes or governmental charges).  Upon the termination of the Deposit Agreement, the Company shall be discharged from all obligations under the Deposit Agreement except for its obligations to the Depositary under Sections 5.08 and 5.09 of the Deposit Agreement.

 

22.                                 DTC DIRECT REGISTRATION SYSTEM AND PROFILE MODIFICATION SYSTEM.

 

(a)                                 Notwithstanding the provisions of Section 2.04 of the Deposit Agreement, the parties acknowledge that the Direct Registration System (“DRS”) and Profile Modification System (“Profile”) shall apply to uncertificated American Depositary Shares upon acceptance thereof to DRS by DTC.  DRS is the system administered by

 

17

 

DTC pursuant to which the Depositary may register the ownership of uncertificated American Depositary Shares, which ownership shall be evidenced by periodic statements issued by the Depositary to the Owners entitled thereto.  Profile is a required feature of DRS which allows a DTC participant, claiming to act on behalf of an Owner, to direct the Depositary to register a transfer of those American Depositary Shares to DTC or its nominee and to deliver those American Depositary Shares to the DTC account of that DTC participant without receipt by the Depositary of prior authorization from the Owner to register such transfer.

 

(b)                                 In connection with and in accordance with the arrangements and procedures relating to DRS/Profile, the parties understand that the Depositary will not verify, determine or otherwise ascertain that the DTC participant which is claiming to be acting on behalf of an Owner in requesting registration of transfer and delivery described in subsection (a) has the actual authority to act on behalf of the Owner (notwithstanding any requirements under the Uniform Commercial Code).  For the avoidance of doubt, the provisions of Sections 5.03 and 5.08 of the Deposit Agreement shall apply to the matters arising from the use of the DRS.  The parties agree that the Depositary’s reliance on and compliance with instructions received by the Depositary through the DRS/Profile System and in accordance with the Deposit Agreement, shall not constitute negligence or bad faith on the part of the Depositary.

 

23.                                 SUBMISSION TO JURISDICTION; JURY TRIAL WAIVER; WAIVER OF IMMUNITIES.

 

In the Deposit Agreement, the Company has (i) appointed Puglisi & Associates, 850 Library Avenue, Suite 204, P.O. Box 885, Newark, Delaware 19715, as the Company’s authorized agent upon which process may be served in any suit or proceeding arising out of or relating to the Shares or Deposited Securities, the American Depositary Shares, the Receipts or the Deposit Agreement, (ii) consented and submitted to the jurisdiction of any state or federal court in the State of New York in which any such suit or proceeding may be instituted and (iii) agreed that service of process upon said authorized agent shall be deemed in every respect effective service of process upon the Company in any such suit or proceeding.

 

EACH PARTY TO THE DEPOSIT AGREEMENT (INCLUDING, FOR AVOIDANCE OF DOUBT, EACH OWNER AND HOLDER) THEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING AGAINST THE COMPANY AND/OR THE DEPOSITARY DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE AMERICAN DEPOSITARY SHARES OR THE RECEIPTS, THE DEPOSIT AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF, INCLUDING, WITHOUT LIMITATION, ANY

 

18

 

QUESTION REGARDING EXISTENCE, VALIDITY OR TERMINATION (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).

 

To the extent that the Company or any of its properties, assets or revenues may have or may hereafter become entitled to, or have attributed to it, any right of immunity, on the grounds of sovereignty or otherwise, from any legal action, suit or proceeding, from the giving of any relief in any respect thereof, from setoff or counterclaim, from the jurisdiction of any court, from service of process, from attachment upon or prior to judgment, from attachment in aid of execution or judgment, or from execution of judgment, or other legal process or proceeding for the giving of any relief or for the enforcement of any judgment, in any jurisdiction in which proceedings may at any time be commenced, with respect to its obligations, liabilities or any other matter under or arising out of or in connection with the Shares or Deposited Securities, the American Depositary Shares, the Receipts or the Deposit Agreement, the Company, to the fullest extent permitted by law, hereby irrevocably and unconditionally waives, and agrees not to plead or claim, any such immunity and consents to such relief and enforcement

 

19Exhibit 10.12

 

[Translation]

 

Edwards Korea, Ltd.

Foreign Investment Zone Occupancy (Lease) Agreement

 

 

Choongchungnam -do

 

Cheonan-si

 

Edwards Korea, Ltd.

 

 

Edwards Korea, Ltd.

Foreign Investment Zone Occupancy (Lease) Agreement

 

[Description of Leased Premises]

 

	
Location
    	
 
    	
A4-1 Block Chaam-dong, Seobuk-gu, Cheonan-si,   Choongchungnam-do (237-2 and other 3 parcels of land)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Size
    	
 
    	
40,014m2
    	
 
    	
Purpose of Use
    	
 
    	
Industrial Facilities
    

 

With respect to the Leased Premises, the Governor of Choongchungnam-do and the Mayor of Cheonan-si (hereinafter, the “Authority”) and Edwards Korea, Ltd. (hereinafter, the “Occupant”), which desires to lease and move into the Leased Premises, enter into this Occupancy Agreement (this “Agreement”) under the terms and conditions as set forth below.

 

	
Company Name
    	
 
    	
Edwards Korea, Ltd.
    	
 
    	
Representative
    	
 
    	
Sung-Min Lee
    
	
 

Address (in case of a corporation, location of the   corporation)
    	
 
    	
 

625-7 Upsung-dong, Cheonan-si, Choongchungnam-do

* Corporate Registration No: 161511-0011258
    
	
 

Type of Business
    	
 
    	
 

Manufacturing
    	
 
    	
 

Classification Number
    	
 
    	
 

KSIC 29132
    	
 
    	
 

Products
    	
 
    	
 

Dry vacuum pumps and vacuum systems
    
	
Size (m2)
    	
 
    	
 

Site
    	
 
    	
 

Construction   Area(1)
    	
 
    	
 

Manufacturing   Facilities
    	
 
    	
 

Ancillary   Facilities
    
	
 
    	
 

40,014m2
    	
 
    	
 

26,468.72m2

41,509m2 (Total Floor Space)
    	
 
    	
 

25,849
    	
 
    	
 

15,660m2
    
	
 

Anticipated Date   of Commencement of Construction
    	
 
    	
 

March, 2010
    	
 
    	
 

Anticipated Date   of Completion of Construction
    	
 
    	
 

June, 2011
    
	
 

Implementation of Business Plan (within 5   years)
    
	
 

Classification
    	
 
    	
 

Obligations
    	
 
    	
 

Completion Date
    
	
 

Foreign Investment Amount:
    	
 
    	
 

KRW 40,000 million   (equivalent to USD 36.4 million) )
    	
 
    	
 

November 30, 2015 
    
	
 

Size of Factory   Construction Area(2) 
    	
 
    	
 

16,005.6m2
    	
 
    	
 

November 30, 2015
    
																											

 

(1)  Size of construction area to be implemented within four (4) years (filing of completion report): Standard Factory Area Ratio × 1 (under Article 14(1)1 of the Guidelines)

(2)  Size of construction area to be implemented within five (5) years (business plan): Standard Factory Area Ratio × 2 (under Article 15(1) of the Guidelines)

 

2

 

Article 1.               Lease Term

 

The term of the lease shall be for a period of 50 years, commencing on November 30, 2010 when the Basic Management Plan of Foreign Investment Zone was announced and expiring on November 29, 2060, which is renewable for successive 10-year terms by reflecting any changes.

 

Article 2.               Size of the Leased Premises

 

(1)                                       The size of the Leased Premises is 40,014m2. If the size of the Leased Premises is adjusted following a cadastral confirmation survey, the adjusted size of the Leased Premises shall be the confirmed size thereof.

 

Article 3.               Rent

 

(1)                                       The rent shall be an amount calculated by multiplying the acquisition price of the concerned foreign investment zone (if the publicly notified individual land price under the Public Notice of Values and Appraisal of Lands, etc. Act is higher than the acquisition price, publicly notified individual land price, hereinafter the same shall apply) by ten thousands (10/1000) or more.

 

(2)                                       If the Occupant falls under any of the followings, the rent set forth in Article 17 (2) of the Guidelines on Operation of Foreign Investment Zone (the “Guidelines”) (an amount calculated by multiplying the acquisition price of the Leased Premises by fifty thousands (50/1000)) shall apply:

 

1.                                             If the Occupant fails to meet the qualification for the occupancy or to perform its obligations with respect to the foreign investment amount and/or the size of the factory construction area applied in determining the occupancy limit (however, if any occupant, after having implemented the business plan, increases only the domestic capital to install factory facilities or other machinery/facility/equipment without reducing the foreign investment amount, thereby failing to maintain the occupancy requirement (only when the foreign capital takes up more than 10% of the total number of voting shares or the total investment amount), the reduction rate shall continue to apply);

 

2.                                             If any cause for termination of this Agreement occurs; or

 

3.                                             If the Occupant fails to meet the occupancy limit by repaying the long-term loans involved in the Leased Premises to which the occupancy limit under Article 15 of the Guidelines applies.

 

(3)                                       The occupancy requirements mentioned in the provisions of Paragraph (2) above shall mean those set forth in the Basic Management Plan of Foreign Investment Zone. Matters 

 

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concerning the failure to perform the investment plan and the cause for termination of this Agreement shall be subject to Article 11 hereof.

 

(4)                                       Upon the expiration of the applicable term of the rent set, the rent shall be adjusted to the price announced by the Minister of Knowledge Economy.

 

Article 4.                                                             Imposition of Rent for Failure to Perform Obligations related to Occupancy

 

(1)                                       The Occupant shall perform the investment plan including the factory construction area and the foreign investment amount within five (5) years from the date of the execution of this Agreement. However, if the Occupant has consulted with the Minister of Knowledge Economy due to its unavoidable circumstances, the Occupant may perform the investment plan for a fixed grace period not exceeding one (1) year from the expiration date of the implementation period.

 

(2)                                       If the Occupant’s performance of the investment plan is suspended pursuant to the provisos of Paragraph (1) above, the Authority may impose rent for the failure to perform the investment plan during the grace period on the Occupant. If the Occupant fails to perform the factory construction area as well as the foreign investment amount, the rent shall be based on whichever is larger.

 

1.                                             Rent for the failure to implement the factory construction area shall be based on the area in excess of the area calculated by multiplying the standard factory area ratio by 2

 

2.                                             Rent for the failure to implement the foreign investment amount shall be based on the area in excess of the foreign investment amount

 

(3)                                       If the Occupant fails to induce the foreign investment amount even after the grace period, the Authority shall impose rent for the failure to implement the foreign investment amount for the entire Leased Premises.

 

(4)                                       The rent for the failure to perform obligations related to the occupancy shall be an amount calculated by multiplying the acquisition price of the concerned foreign investment zone (if the publicly notified individual land price under the Public Notice of Values and Appraisal of Lands, etc. Act is higher than the acquisition price, publicly notified individual land price, hereinafter the same shall apply) by fifty thousands (50/1000) or more.

 

Article 5.               Payment of Security Deposit and Rent

 

(1)                                       Upon the execution of this Agreement (including the execution of the extension agreement), the Occupant shall pay the security deposit (for performance of removal 

 

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work) equivalent to the sum of monthly rent for twelve (12) months. The security deposit equivalent to the sum of monthly rent for the 12-month term shall be paid when the initial Agreement or the extension agreement is concluded. Even if the rent is adjusted during the term of the lease, no additional security deposit shall be paid or refunded with respect to the adjusted amount.

 

(2)                                       If, at the time of the execution of the extension agreement, the rent defined in Article 3, Paragraph (1) increases the increased amount, other than the security deposit paid in advance pursuant to Paragraph (1) above, shall be additionally paid when the extension agreement is concluded.

 

Article 6.               Rent Payment

 

(1)                                       Upon the execution of this Agreement, the Occupant shall pay the rent for the year concerned. If the Leased Premised are leased for less than one (1) month, the rent for such month shall be prorated based on the number of days actually occupied.

 

(2)                                       The rent shall be paid in advance for one (1) year, which shall be paid at a financial institution designated by the Authority prior to the last day of the previous year. If the Occupant should unavoidably pay the rent in installments, the Occupant may pay the rent in up to four (4) installments and shall pay an interest at a rate of 6% per annum on the outstanding amount.

 

(3)                                       If the Occupant fails to pay the rent pursuant to Paragraph (2) above within the due date, the Occupant shall pay the overdue rent within one (1) month from the original due date, along with the late charge at a rate of 3/100 on the overdue amount.

 

(4)                                       If the Occupant fails to pay the overdue rent pursuant to Paragraph (3) above, the Occupant shall pay the overdue rent, along with the late charge at a rate of 12/1000 on the overdue amount, accruing on a monthly basis from the due date, in addition to the late charge set forth in Paragraph (3) above.

 

(5)                                       If the Occupant continuously fails to pay the rent, the overdue rent may be collected in accordance with the provisions of the delinquency disposition under the National Tax Collection Law.

 

(6)                                       If the rent pursuant to Article 2, Paragraph (2), Items 1 and 3 applies to the Occupant, such rent shall apply to the Occupant from the date on which the Occupant starts to engage in such act. In such case, the rent shall be the amount calculated by applying the size of the Leased Premises mentioned in Article 2, Paragraph (1) hereof.

 

Article 7.                                         Reduction and Exemption of the Rent

 

(1)                                       If the Occupant is entitled to the reduction and exemption of the rent pursuant to the Foreign Investment Promotion Law, the Restriction of Special Taxation Law and the 

 

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Basic Management Plan of Foreign Investment Zone, the Authority may reduce or exempt the rent upon request of the Occupant.

 

(2)                                       If intending to be granted a reduction and exemption of the rent, the Occupant shall submit an application for reduction and exemption of the rent to the Authority pursuant to Article 19 of the Foreign Investment Promotion Law, and such reduction and exemption of the rent shall apply from the month the decision was made,.

 

(3)                                       Even if the rent has been reduced or exempted upon request of the Occupant, the Occupant shall file the supporting documents verifying its entitlement to the reduction/exemption of the rent with the Authority by the end of January of each year.

 

(4)                                       If it is found that the Occupant irregularly obtained a decision of reduction/exemption of the rent, or after obtaining such decision, if the Occupant fails to meet the reduction/exemption requirements or becomes subjected to the rent payment, the reduced/exempted rent accruing from the date on which the reduction/exemption was determined or the date on which such cause occurred shall be refunded.

 

(5)                                       With respect to the reduction/exemption of the rent provided for in the former part of Paragraph (1) above, if the reduction/exemption of the rent occurred pursuant to the Restriction of Special Taxation Law, the reduction/exemption of taxes shall be limited to the premises concerned.

 

(6)                                       The rent may be reduced/exempted with the approval of the project owner, namely, landowner from the completion of construction of an industrial complex in the Individual-type Foreign Investment Zone to the transfer of right of landownership to the Authority.

 

Article 8.                                                       Confirmation of the Size of the Leased Premises; Settlement of the Rent

 

(1)                                       If the size of the Leased Premises is adjusted following a cadastral confirmation survey, the adjusted size of the Leased Premises shall be the confirmed size thereof.

 

(2)                                       The rent and the security deposit shall be settled based on the adjusted size of the Leased Premises by applying the price at the time of the execution of this Agreement, and interest thereon shall not accrue.

 

Article 9.               Occupant’s Obligations; Limitation of Claims

 

(1)                                       The Occupant shall, in using the Leased Premises, shall faithfully implement the comprehensive investment plan set forth the business plan.

 

(2)                                       If, in implementing the business plan pursuant to Paragraph (1) above, any change in the business plan is expected to occur, the Occupant shall submit the plan and cause for 

 

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such change in writing to the Authority and adjust it through mutual consultation. If it is necessary to change the designation of the foreign investment zone, the Occupant shall take procedures pursuant to the applicable laws and regulations.

 

(3)                                       The Occupant shall perform its obligations of due care, and be responsible for the maintenance of the Leased Premises and matters concerning the use of or benefitting from the Leased Premises. The Occupant shall waive its right to claim the refund of costs and expenses against the Authority, including those pursuant to Article 203 or 626 of the Korean Civil Code.

 

Article 10.            Prohibitions

 

Without the consent of the Authority, the Occupant shall not engage in any act falling under each of the following:

 

1.                                             To change the purpose of use of or benefitting from the Leased Premises;

 

2.                                             To sublease the Leased Premises or dispose of any rights to the Leased Premises;

 

3.                                             To change the character of the Leased Premises; or

 

4.                                             To transfer the Occupant’s facilities located on the Leased Premises to a third party.

 

Article 11.            Termination

 

(1)                                       In each of the following, the Authority shall have the right to terminate this Agreement:

 

1.                                             If the Occupant engages in any act falling under Article 10 without the consent of the Authority;

 

2.                                             If the cause for termination of this Agreement falls under Article 42 of the Industrial Cluster Development and Factory Establishment Law (however, the grace period for the application of Article 42(1)1 of the said Law shall be one (1) year, and the period for the completion of establishment of factory pursuant to Article 15 of the said Law shall be four (4) years from the execution of this Agreement);

 

3.                                             If the Occupant fails to qualify for the occupancy requirements set forth in the Occupancy Management Plan any longer;

 

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4.                                             If the Occupant fails to perform its obligations hereunder or defaults on the payment of the rent for more than one (1) year with little prospect for improvement;

 

5.                                             If the Occupant is not registered as a foreign-invested enterprise pursuant to Articles 11 and 12 of the Foreign Investment Promotion Law;

 

6.                                             If the Occupant’s foreign investment amount and rate specified in the foreign-invested enterprise registration certificate prepared after the execution of this Agreement fails to meet the qualification for occupancy of the individual-type foreign investment zone;

 

7.                                             If the Occupant violates the occupancy requirements or any matters set forth hereunder;

 

8.                                             If the Occupant leases the Leased Premises using illegal methods, such as falsifying documents;

 

9.                                             If the Occupant disposes of industrial sites, factories, etc., or is, in effect, unable to conduct business due to repossession of the industrial sites by the Authority;

 

10.                                       If the Occupant loses its title to facilities located on the Leased Premises due to public auctions, auctions, etc. caused by its liabilities;

 

11.                                       If procedures of corporate reorganization or bankruptcy under the Bankruptcy Law are filed against the Occupant;

 

12.                                       If the Occupant closes up business or suspends business for one (1) year or more;

 

13.                                       If the Occupant violates any other relevant laws and regulations, ordinances, etc;

 

(2)                                    If the Authority terminates this Agreement pursuant to Paragraph (1) above, even if damages are incurred from the termination hereof, the Occupant shall not claim compensatory damages.

 

(3)                                    Upon termination hereof pursuant to Paragraph (1) above or due to causes attributable to the Occupant, the remaining amount after deducting the default rent and costs disbursed to restore the Leased Premises to their original condition from the security deposit and rent paid by the Occupant shall be returned to the Occupant. If the Occupant does not have sufficient funds for such deduction, the Authority may take necessary attachment measures for the properties of the Occupant.

 

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Article 12.            Request for Termination

 

If intending to terminate this Agreement early due to its unavoidable circumstances, the Occupant shall submit an application for termination to the Authority, and the Authority shall terminate this Agreement within one (1) month from the receipt of the application.

 

Article 13.            Commencement of Construction of Factories, Etc.

 

(1)                                    Any factories and auxiliary buildings necessary for the production process that the Occupant intends to build shall comply with (i) the standard factory area ratio set forth in Article 15 of the Guidelines and (ii) the scope of building for each zone and purpose set forth in the Basic Management Plan of Foreign Investment Zone.

 

(2)                                    If intending to build a factory pursuant to Paragraph (1) above, the Occupant shall request the Authority to approve the use of land, and the Authority shall issue the approval after taking measures necessary to restore the land to its original condition.

 

(3)                                    If intending to build a factory pursuant to Paragraph (1) above before the Authority obtains right of landownership and management right, the Occupant shall obtain a use permit of land from the landowner and such building a factory shall be pursuant to the laws and regulations related to factory construction.

 

Article 14.            Restoration of Land to Original Condition

 

(1)                                    Upon expiry of the term of lease, or termination or cancellation hereof, the Occupant shall restore the Leased Premises to their original condition at its own costs within the period determined by the Authority and return the restored Leased Premises in the presence of the Authority.

 

(2)                                    Notwithstanding Paragraph (1) above, in the event that the Occupant continues to occupy the Leased Premises, the Authority may collect profits arising from the use of the Leased Premises by means of illegal occupancy under the State Properties Law.

 

(3)                                    The Occupant shall not request the Authority to pay any and all expenses including expenses for such restoration and moving expenses as well as damages arising from termination hereof, irrespective of its title.

 

Article 15.            Renewal of Term of Lease

 

If intending to continue to lease the Leased Premises after expiry of the ten (10) year term of lease, the Occupant shall request the Authority to enter into an extension agreement three (3) months prior to the expiry of the term of the lease. The foreign investment amount and factory 

 

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construction area, etc. to be specified in the extension agreement shall mean the original amount and area specified at the time of executing the initial occupancy agreement.

 

Article 16.            Liability for Compensation

 

The Occupant shall compensate for any damages incurred by the Authority due to its failure to perform or violation of its obligations set forth hereunder.

 

Article 17.            Change of Terms under this Agreement

 

(1)                                    The Occupant may change any terms set forth hereunder by entering into an amendment agreement with the documents supporting such changes attached to an application for amendment to the occupancy agreement pursuant to Article 35 of the Enforcement Regulations of the Industrial Cluster Development and Factory Establishment Law.

 

(2)                                    Any disadvantages arising from the Occupant’s failure to perform the obligations set forth in Paragraph (1) above shall be borne by the Occupant.

 

(3)                                    If any terms agreed hereunder are changed pursuant to Paragraph (1) above, the obligations related to the changed investment amount and factory construction area shall be performed by the date of completion of implementation of the business plan.

 

Article 18.            Charges for Use of Common Facilities

 

(1)                                    The Occupant shall pay (i) charges of the common facilities installed by the Authority and (ii) costs necessary for maintenance and repair of such facilities, as separately determined by the Authority.

 

(2)                                    If failing to pay the fees or charges specified in Paragraph (1) above within the period determined by the Authority, the Occupant shall pay the amount, together with the late payment penalty to be calculated according to the following categories pursuant to Article 72 of the Enforcement Decree of the State Properties Law.

 

1.                                             Period of less than one (1) month: 12% per annum

 

2.                                             Period of more than one (1) month but less than three (3) months: 13% per annum

 

3.                                             Period of more than three (3) months but less than six (6) months: 14% per annum

 

4.                                             Period of more than six (6) months: 15% per annum

 

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Article 19.            Restriction on Use of Common Facilities

 

(1)                                    If the Occupant defaults on the payment of the fees or charges set forth in Article 18 above for three (3) months or more, the Authority may take necessary attachment measures for the Occupant’s properties, in addition to a ban on the use of the common facilities, to protect its rights as creditor.

 

(2)                                The Occupant shall not raise any objection to any measures taken by the Authority pursuant to Paragraph (1) above.

 

Article 20.            Environmental Preservation and Safety Management, etc.

 

(1)                                    In the event of installing discharging facilities under environment-related laws, the Occupant shall install such facilities after obtaining approval of installation, and submit a copy of the approval to the Authority. The foregoing shall apply to the case of changing any of the approved matters.

 

(2)                                    The Occupant shall entrust a waste treatment company with disposing of any industrial wastes arising during the course of construction or operation of factories according to due procedures.

 

(3)                                    The Occupant shall actively support the Authority in pursuing a joint pollution prevention project to protect the environment of the industrial complex at issue.

 

(4)                                    As for an industrial complex for which an integrated defense association is formed, the Occupant shall comply with the Authority’s instructions in connection with the payment of security contributions set forth in Article 14-3 of the Establishment of Homeland Reserve Forces Law, Article 23-3 of the Enforcement Decree thereof, Article 18 of the Regulations on Nurturing of and Support for Homeland Reserve Forces and Annex thereof.

 

(5)                                    The Authority may give the Occupant instruction necessary for the safety management, pollution control and environmental management as set forth in the Presidential Decree pursuant to Article 45 of the Industrial Cluster Development and Factory Establishment Law, and the Occupant shall comply with the instructions.

 

Article 21.            Taxes and Public Imposts

 

After the execution hereof, any taxes and public imposts to be imposed on the Leased Premises, even if they are imposed in the name of a party other than the Occupant, shall be borne by the Occupant.

 

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Article 22.            Relationship with Other Regulations

 

Any matters not specified in this Agreement shall be in accordance with the Industrial Cluster Development and Factory Establishment Law, the Foreign Investment Promotion Law, the State Properties Law, the Local Finance Act, the relevant ordinances of Choongchungnam-do and Cheonan-si, the Guidelines, the Basic Management Plan of Individual-type Foreign Investment Zone and the regulation of the occupancy agreement as set forth by the Authority.

 

Article 23.            Report

 

(1)                                    The Authority may, in consultation with the Occupant, request the Occupant to submit its financial statements, such as balance sheet and income statement and other documents if necessary in order to verify whether the Occupant met the conditions for designation of the foreign investment zone, the Occupant shall comply with the request unless there are no particular circumstances. However, the Authority shall not use such documents for any purpose other than the intended management purpose.

 

(2)                                    The Occupant shall report to the Authority the relevant documents designated by the Authority concerning any of the following,

 

1.                                             Matters concerning registration (change) of foreign invested enterprises under the Foreign Investment Promotion Law;

 

2.                                             Matters concerning the commencement, expansion or completion of construction of factories and operation of the factories;

 

3.                                             Matters concerning operation of factories, including production, export and employment;

 

4.                                             Matters concerning discontinuation or closing of business; or

 

5.                                             Other matters recognized by the Authority as necessary

 

(3)                                    The Occupant shall report the current status of the foreign investment amount for the year immediately preceding by the end of January of each year in the form prescribed by Attachment 3 of the Guidelines.

 

Article 24.            Miscellaneous

 

(1)                                    The Occupant shall take measures necessary for construction on the Leased Premises, such as the survey of the ground and safety management, at its discretion.

 

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(2)                                    The Occupant shall seek measures to prevent water pollution from occurring in the surrounding environment and nearby sea shores by installing facilities, such as pollution prevention facilities; and shall install its own clean-up facilities if it operates factories prior to the operation of waste water treatment sites.

 

(3)                                    The Occupant shall ensure that public facilities, such as roads, parks and water and sewerage facilities, are not damaged at the time of construction of factories. If any of such facilities are damaged, the Occupant shall be responsible for restoring the facilities to their original condition.

 

(4)                                    This Agreement supersedes a certain occupancy agreement entered into with the mayor of Cheonan-si before designation of foreign investment zone (Agreement No.: Cheonan-si Document No. 1, dated March 5, 2010).

 

(5)                                    Any controversy arising in relation to interpretation of this Agreement shall be resolved by the interpretation of the relevant management authority.

 

Article 25.            Special Terms and Conditions and Additional Agreements

 

(1)                                    The security deposit for occupancy before the completion of the construction set forth in Article 5, Paragraph (1), shall be KRW193,650,000 and shall pay it to an account designated by the Authority.

 

(2)                                    The Occupant may enter into a separate additional agreement in addition to this Agreement, if the Occupant deems it necessary for the attached special terms and conditions for occupancy before the completion of the construction.

 

IN WITNESS WHEREOF, the Authority and the Occupant shall execute this Agreement in two (2) counterparts, and each shall keep one (1) copy after signing their respective names hereon and affixing their respective seals hereto.

 

Attachments:

1.             1 copy of Special Terms and Conditions for Occupancy before Completion of Construction

2.             1 copy of Location Map of Edwards Korea, Ltd. (A4-1 Block)

 

	
 
    	
December 27, 2010
    

 

Authority:

 

Address: 155 Jungang-ro, Jung-gu, Daejeon

Name: Governor of Choongchungnam-do, Hee-Jung Ahn (official seal affixed)

 

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Address: 601 Bunyoung-ro, Seobuk-gu, Cheonan-si, Chungcheongnam-do

Name: Mayor of Cheonan, Moo-Yong Sung (official seal affixed)

 

Occupant:

 

Address: 625-7 Upsung-dong, Cheonan-si, Choongchungnam-do

Name of Company: Edwards Korea, Ltd.

Representative: Representative Director, Sung-Min Lee (seal affixed)

 

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<Attachment 1>

 

Special Terms and Conditions for Occupancy before Completion of Construction

 

1.                                       The Occupant shall access, confirm and comply with the development plan, implementation plan, contents discussed with respect to various impact evaluations (on traffic, environment, disaster and population) (including those changed and discussed again), conditions of approval of development plan and implementation plan, any and all laws and regulations on land use under consolidated urban planning and implementation plan (including those changed), and the policies, etc. of the Government and Chungnam-do Local Government·Chunan-si Local Government for the development project. Any liability resulting from failing to confirm the above shall be borne by the Occupant. Discrepancies between regulations shall be governed by the laws and regulations strengthened.

 

2.                                       The Leased Premises are not supplied in the condition that the development project is completed. Thus, for the prospecting·excavating, examination and preservation of cultural assets, the performance of those discussed with respect to any and all impact evaluations, or a change in market circumstances, etc., the contents of licenses and approvals, including a development plan and implementation plan, may be changed. Accordingly, a land use plan and the purpose of use of neighboring land, etc. may be changed. The Occupant shall accept those changed resulting therefrom.

 

3.                                       The Occupant executes a sale and purchase agreement on the condition that it confirms in person and accepts the status of land development, current status (such as shape, cultural assets, level, soft ground, bedrock, status of incline, drainage of water flowed from outside, and a ground plan for construction plan), and conditions of location in and outside of project area. Thus, any liability resulting from failing to confirm the above shall be borne by The Occupant.

 

4.                                       In using land including the confirmation of boundary or the commencement of a construction work, the Occupant shall discuss and obtain approval thereon before using land, so that a project owner may not suffer any difficulty in conducting a development work.

 

5.                                       If the Occupant desires to use land while the site development work is in progress, the Occupant shall may do so in the condition that it treats a soft ground in itself.

 

6.                                       The Occupant shall comply with those approved with respect to the development plan and implementation plan under the Industrial Site Location & Development Law and National Land Planning and Use Law, various impact evaluations on environment and disaster, etc., and energy use plan, etc., in using land.

 

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7.                                       If the Occupant breaks or damages public facilities, such as roads, water works, sewer system, boundary stones and roadside trees, in using land, such as conducting a construction work, it shall immediately restore the same into their original shape and condition.

 

8.                                       The Occupant shall take measures to prevent the surrounding environment and rivers from being polluted in constructing a factory, by installing pollution prevention facilities.

 

9.                                       Even after it is possible to use land, the Occupant shall accept that the use of land may be postponed somewhat, if basic facilities within the area is meager. In case of using land before the completion of work, the Occupant may not request the Authority for principal facilities (such as roads, electricity, waterworks and sewer system), as the principal facilities within the complex are not completed. In addition, in case of establishing and using a temporary road (unpaved) for access for a construction work, etc., The Occupant shall establish·enforce the measures to reduce environmental damage, such as air-born dust, after discussing with a field overseer of a project owner and obtaining approval therefrom in advance.

 

10.                                 The Occupant shall comply with the Industrial Site Location & Development Law and the Industrial Cluster Development and Factory Establishment Law, which are applicable to the target site.

 

11.                                 In case of commencing a construction work, the Occupant shall notify the Authority and a project owner thereof in writing for the smooth conduct of the construction work. If the construction work is completed, the Occupant shall apply to the land owner for the checkup of the implementation of the restoration of basic city facilities into their original shape and condition.

 

12.                                 The Occupant execute an occupancy agreement after exactly grasping and confirming the location of industry water, fresh water, waste water and rainwater pipes, and branches thereof, and embankment, within the industrial complex in relation to its business plan for the target site. Thus, the Occupant shall not call the Occupant to account for the (industrial and fresh) waster supply, waste water and rainwater pipes, and branches thereof, and embankment, after executing an occupancy agreement.

 

13.                                 If it is necessary to use or occupy land other than the land concerned for materials staking yard or a temporary office in conducting a construction work, it shall do so after taking necessary measures upon discussion with the land owner.

 

14.                                 The Occupant shall confirm and protect roads and those laid under the ground in case of excavation at the time of conducting a construction work. In case of desiring to install earthy wall, etc., it shall do so upon discussing with the project owner separately.

 

15.                                 The Authority or a project owner may instruct the matters that the Occupant should perform, such as approved development and implementation plan for the industrial complex, those agreed with, or licenses and approvals from, relevant organizations on various impact evaluations (on traffic, environment and disaster, and energy use plan), and safety management, pollution management and environment management under Article 45 of the Industrial Cluster

 

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Development and Factory Establishment Law, and the Occupant shall comply with such instruction.

 

16.                                 If the Occupant desires to conduct a construction work on the target site (use land) before cadastral confirmation survey in numerical value, it shall do so upon separating the building from the vacant land within a vacant building site as provided for in the Construction Law sufficiently from the site boundary in a temporary lot division drawing.

 

17.                                 The Occupant shall conduct the final finished grade of earth work and drainage treatment resulting from the construction of factory, etc. in compliance wit the design documents, etc., based upon which the project owner has worked out and conduct a construction work. If it is necessary to make a change inevitably, it shall decide to make a change upon discussion with the project owner.

 

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<Attachment 2>

 

Location Map of Edwards Korea, Ltd. (A4-1 Block)

 

 

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CHUNGCHEONGNAM-DO

 

To:                                       Edwards Korea, Ltd.

 

Subject:              Notice regarding Rent Reduction and Exemption Decision for the Occupant in the Foreign Investment Zone (Edwards Korea, Ltd.)

 

1.                                                We wish for your continued prosperity.

 

2.                                                In response to the application for the rent reduction and exemption relating to the state or local government properties which you filed with us (and which we received on January 11, 2011) pursuant to Article 19, Paragraphs 6 and 7 of the Enforcement Decree of the Foreign Investment Promotion Act, we hereby inform you of our rent reduction and exemption decision as attached hereto.

 

Enclosed:  Rent reduction and exemption decision

 

CHUNGCHEONGNAM-DO

 

[Official Seal Affixed]

 

Assistant Director: Yong-Gon Shin

Person in charge at the Investment Attraction Division II: Chan-Soo Yoon

Director of Investment Site Division: Seung-Gon Lee

 

Deputy Director: Jeong-Deok Gook

Person in charge at the Investment Attraction Division I: Nak-Hong Baek

 

Document No.: Investment Site Division-466 (January 20, 2011)

Zip Code: 301-763

Address: 155 Jungangno Seonhwa-dong, Jung-gu, Daejeon

http://www.chungnam.net

	
Tel.: (042) 220-3856
    	
 
    	
Fax: (042) 220-3899
    	
 
    	
/ ykshin@korea.kr
    	
 
    	
Nondisclosure (7)
    

 

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Rent Reduction and Exemption Decision for Foreign-Invested Enterprises

(Edwards Korea, Ltd.)

 

·                                                  Application for the Rent Reduction and Exemption and Chungcheongnam-do’s Decision Thereto

 

·                                                   Amount of the rent filed for reduction and exemption: KRW 193,659,000/year (the full amount of rent)

( Calculation based on KRW 19,365 million x 10/1,000)

 

·                                                   Term of lease: 50 years (From November 30, 2010 to November 29, 2060)

 The Occupancy Agreement shall be renewed every 10 year and the Occupant Company shall refund the reduced or exempted rent if failing to perform the business plan. (Pursuant to Articles 1, 3, and 15 of the Occupancy Agreement)

 

·                                                   Space: 40,014 m2 (A4-1 Block, Chaam-dong, Seobuk-gu, Cheonan-si)

 

·                                                  Grounds for Rent Reduction and Exemption

 

·                                                   Article 13, Paragraph 6, Item 1 of the Foreign Investment Promotion Act (Lease and Sale of State and local government Properties); Article 19, Paragraph 3, Item 1(a) and (b) and Article 19, Paragraph 4, Item 1(a) of the Enforcement Decree of the Foreign Investment Promotion Act (Lease of State and local government Properties, etc.)

 

·                                                   Article 32, Paragraph 1, Item 1(a) and (b) of the Chuncheongnam-do’s (Provincial) Ordinance regarding local government Properties Administration (Reduction and Exemption of Rent or Fees)

 

·                                                  Article 23, Paragraph 1, Item 1(a) and (b) of the Cheonan-si’s (Municipal) Ordinance regarding local government Properties Administration

 

·                                                   Article 7, Items 1 and 2 of the Occupancy (Lease) Agreement for the Foreign Investment Zone (Reduction and Exemption of Rent, etc.)

 

·                                                  Results of Examination

 

·                                                   Based on the applicable grounds above, it is hereby determined that the application filed by Edwards Korea, Ltd. is granted and the full amount of rent payable by Edwards Korea, Ltd. shall be exempted.

 

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