Document:

EX-4.3

 Exhibit 4.3 
  

 
 

 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	PARTIES
 RECITALS
	  			
	1.	  	Certain Definitions	  	 	1	 
	2.	  	 Form of ADRs.
	  	 	2	 
	3.	  	 Deposit of Shares
	  	 	2	 
	4.	  	 Issue of ADRs
	  	 	3	 
	5.	  	 Distributions on Deposited Securities
	  	 	3	 
	6.	  	 Withdrawal of Deposited Securities
	  	 	4	 
	7.	  	 Substitution of ADRs
	  	 	4	 
	8.	  	 Cancellation and Destruction of ADRs
	  	 	4	 
	9.	  	 The Custodian
	  	 	4	 
	10.	  	 Lists of Holders
	  	 	5	 
	11.	  	 Depositary’s Agents
	  	 	5	 
	12.	  	 Resignation and Removal of the Depositary; Appointment of Successor Depositary.
	  	 	5	 
	13.	  	 Reports
	  	 	6	 
	14.	  	 Additional Shares
	  	 	6	 
	15.	  	 Indemnification
	  	 	6	 
	16.	  	 Notices
	  	 	7	 
	17.	  	 Counterparts
	  	 	8	 
	18.	  	 No Third-Party Beneficiaries; Holders and Owners as Parties; Binding Effect
	  	 	8	 
	19.	  	 Severability
	  	 	8	 
	20.	  	 Governing Law; Consent to Jurisdiction.
	  	 	8	 
	21.	  	 Appointment
	  	 	10	 
	22.	  	 Waiver of Immunities
	  	 	11	 
	23.	  	 Waiver of Jury Trial
	  	 	11	 

  
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	 	  	 	  	Page	 
	EXHIBIT A	  			
		
	 [FORM OF FACE OF ADR]
	  	 	A-1	 
	 (1)
	  	 Issuance of ADSs
	  	 	A-2	 
	 (2)
	  	 Withdrawal of Deposited Securities
	  	 	A-2	 
	 (3)
	  	 Transfers, Split-Ups and Combinations of ADRs
	  	 	A-3	 
	 (4)
	  	 Certain Limitations to Registration, Transfer etc
	  	 	A-4	 
	 (5)
	  	 Liability of Holder for Taxes, Duties and Other Charges
	  	 	A-5	 
	 (6)
	  	 Disclosure of Interests
	  	 	A-6	 
	 (7)
	  	 Charges of Depositary
	  	 	A-6	 
	 (8)
	  	 Available Information
	  	 	A-8	 
	 (9)
	  	 Execution
	  	 	A-8	 
	 [FORM OF REVERSE OF ADR]
	  	 	A-8	 
	 (10)
	  	 Distributions on Deposited Securities
	  	 	A-8	 
	 (11)
	  	 Record Dates
	  	 	A-10	 
	 (12)
	  	 Voting of Deposited Securities
	  	 	A-10	 
	 (13)
	  	 Changes Affecting Deposited Securities
	  	 	A-11	 
	 (14)
	  	 Exoneration
	  	 	A-13	 
	 (15)
	  	 Resignation and Removal of Depositary; the Custodian
	  	 	A-14	 
	 (16)
	  	 Amendment
	  	 	A-15	 
	 (17)
	  	 Termination
	  	 	A-16	 
	 (18)
	  	 Appointment
	  	 	A-17	 
	 (19)
	  	 Waiver
	  	 	A-17	 
	 (20)
	  	 Jurisdiction
	  	 	A-18	 

  
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 DEPOSIT AGREEMENT, dated as of March 28, 2018 (the “Deposit Agreement”),
among iQIYI, INC. and its successors (the “Company”), JPMORGAN CHASE BANK, N.A., as depositary hereunder (the “Depositary”), and all holders from time to time of American Depositary Receipts issued hereunder
(“ADRs”) evidencing American Depositary Shares (“ADSs”) representing deposited Shares (as defined below). The Company hereby appoints the Depositary as depositary for the Deposited Securities and hereby authorizes
and directs the Depositary to act in accordance with the terms set forth in this Deposit Agreement. All capitalized terms used herein have the meanings ascribed to them in Section 1 or elsewhere in this Deposit Agreement. The parties hereto
agree as follows: 
 1. Certain Definitions. 

(a) “ADR Register” is defined in paragraph (3) of the form of ADR. 

(b) “ADRs” mean the American Depositary Receipts executed and delivered hereunder. ADRs may be either in physical
certificated form or Direct Registration ADRs (as hereinafter defined). ADRs in physical certificated form, and the terms and conditions governing the Direct Registration ADRs, shall be substantially in the form of Exhibit A annexed hereto (the
“form of ADR”). The term “Direct Registration ADR” means an ADR, the ownership of which is recorded on the Direct Registration System. References to “ADRs” shall include certificated ADRs and Direct
Registration ADRs, unless the context otherwise requires. The form of ADR is hereby incorporated herein and made a part hereof; the provisions of the form of ADR shall be binding upon the parties hereto. 

(c) Subject to paragraph (13) of the form of ADR (Changes Affecting Deposited Securities), each “ADS” evidenced by an
ADR represents the right to receive seven Shares and a pro rata share in any other Deposited Securities. 
 (d) “Custodian”
means the agent or agents of the Depositary (singly or collectively, as the context requires) and any additional or substitute Custodian appointed pursuant to Section 9. 

(e) The terms “deliver”, “execute”, “issue”, “register”,
“surrender”, “transfer” or “cancel”, when used with respect to Direct Registration ADRs, shall refer to an entry or entries or an electronic transfer or transfers in the Direct Registration System,
and, when used with respect to ADRs in physical certificated form, shall refer to the physical delivery, execution, issuance, registration, surrender, transfer or cancellation of certificates representing the ADRs. 

(f) “Delivery Order” is defined in Section 3. 

(g) “Deposited Securities” as of any time means all Shares at such time deposited under this Deposit Agreement and any and
all other Shares, securities, property and cash at such time held by the Depositary or the Custodian in respect or in lieu of such deposited Shares and other Shares, securities, property and cash. 

(h) “Direct Registration System” means the system for the uncertificated registration of ownership of securities established
by The Depository Trust Company (“DTC”) and utilized by the Depositary pursuant to which the Depositary may record the ownership of ADRs without the issuance of a certificate, which ownership shall be evidenced by periodic statements
issued by the Depositary to the Holders entitled thereto. For purposes hereof, the Direct Registration System shall include access to the Profile Modification System maintained by DTC which provides for automated transfer of ownership between DTC
and the Depositary. 

  
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 (i) “Holder” means the person or persons in whose name an ADR is registered on
the ADR Register. 
 (j) “Securities Act of 1933” means the United States Securities Act of 1933, as from time to time
amended. 
 (k) “Securities Exchange Act of 1934” means the United States Securities Exchange Act of 1934, as from time to
time amended. 
 (l) “Shares” mean the Class A ordinary shares of the Company, and shall include the rights to receive
Shares specified in paragraph (1) of the form of ADR. 
 (m) “Transfer Office” is defined in paragraph (3) of the
form of ADR. 
 (n) “Withdrawal Order” is defined in Section 6. 

2. Form of ADRs. 

(a) Direct Registration ADRs. Notwithstanding anything in this Deposit Agreement or in the form of ADR to the contrary, ADSs shall be
evidenced by Direct Registration ADRs, unless certificated ADRs are specifically requested by the Holder. 
 (b) Certificated ADRs.
ADRs in certificated form shall be printed or otherwise reproduced at the discretion of the Depositary in accordance with its customary practices in its American depositary receipt business, or at the request of the Company typewritten and
photocopied on plain or safety paper, and shall be substantially in the form set forth in the form of ADR, with such changes as may be required by the Depositary or the Company to comply with their obligations hereunder, any applicable law,
regulation or usage or to indicate any special limitations or restrictions to which any particular ADRs are subject. ADRs may be issued in denominations of any number of ADSs. ADRs in certificated form shall be executed by the Depositary by the
manual or facsimile signature of a duly authorized officer of the Depositary. ADRs in certificated form bearing the facsimile signature of anyone who was at the time of execution a duly authorized officer of the Depositary shall bind the Depositary,
notwithstanding that such officer has ceased to hold such office prior to the delivery of such ADRs. 
 (c) Binding Effect. Holders
shall be bound by the terms and conditions of this Deposit Agreement and of the form of ADR, regardless of whether their ADRs are Direct Registration ADRs or certificated ADRs. 

3. Deposit of Shares. 

(a) Requirements. In connection with the deposit of Shares hereunder, the Depositary or the Custodian may require the following in a form
satisfactory to it: 
 (i) a written order directing the Depositary to issue to, or upon the written order of, the person or persons
designated in such order a Direct Registration ADR or ADRs evidencing the number of ADSs representing such deposited Shares (a “Delivery Order”); 

  
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 (ii) proper endorsements or duly executed instruments of transfer in respect of such deposited
Shares; 
 (iii) instruments assigning to the Depositary, the Custodian or a nominee of either any distribution on or in respect of such
deposited Shares or indemnity therefor; and 
 (iv) proxies entitling the Custodian to vote such deposited Shares. 

(b) Registration of transfer. As soon as practicable after the Custodian receives Deposited Securities pursuant to any such deposit or
pursuant to paragraph (10) (Distributions on Deposited Securities) or (13) (Changes Affecting Deposited Securities) of the form of ADR, the Custodian shall present such Deposited Securities for registration of transfer into the name of
the Depositary, the Custodian or a nominee of either, to the extent such registration is practicable, at the cost and expense of the person making such deposit (or for whose benefit such deposit is made) and shall obtain evidence satisfactory to it
of such registration. 
 (c) Delivery of Deposited Securities. Deposited Securities shall be held by the Custodian for the account
and to the order of the Depositary for the benefit of Holders of ADRs (to the extent not prohibited by law) at such place or places and in such manner as the Depositary shall determine. Deposited Securities may be delivered by the Custodian to any
person only under the circumstances expressly contemplated in this Deposit Agreement. To the extent that the provisions of or governing the Shares make delivery of certificates therefor impracticable, Shares may be deposited hereunder by such
delivery thereof as the Depositary or the Custodian may reasonably accept, including, without limitation, by causing them to be credited to an account maintained by the Custodian for such purpose with the Company or an accredited intermediary, such
as a bank, acting as a registrar for the Shares, together with delivery of the documents, payments and Delivery Order referred to herein to the Custodian or the Depositary. 

4. Issue of ADRs. After the Depositary has received proper and complete notification from the Custodian of
a deposit of Shares, the Depositary, subject to this Deposit Agreement, shall properly issue at the Transfer Office, to or upon the order of any person named in such notice, an ADR or ADRs registered as requested and evidencing the aggregate ADSs to
which such person is entitled. 
 5. Distributions on Deposited Securities. To the extent that the
Depositary determines in its discretion that any distribution pursuant to paragraph (10) of the form of ADR (Distributions on Deposited Securities) is not practicable with respect to any Holder, the Depositary may make such distribution as it
so deems practicable, including the distribution of foreign currency, securities or property (or appropriate documents evidencing the right to receive foreign currency, securities or property) or the retention thereof as Deposited Securities with
respect to such Holder’s ADRs (without liability for interest thereon or the investment thereof). 

  
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 6. Withdrawal of Deposited Securities. In connection with any
surrender of an ADR for withdrawal of the Deposited Securities represented by the ADSs evidenced thereby, the Depositary may require proper endorsement in blank of such ADR (or duly executed instruments of transfer thereof in blank) and the
Holder’s written order directing the Depositary to cause the Deposited Securities represented by the ADSs evidenced by such ADR to be withdrawn and delivered to, or upon the written order of, any person designated in such order (a
“Withdrawal Order”). Directions from the Depositary to the Custodian to deliver Deposited Securities shall be given by letter, first class airmail postage prepaid, or, at the request, risk and expense of the Holder, by SWIFT, cable,
telex or facsimile transmission. Delivery of Deposited Securities may be made by the delivery of certificates (which, if required by law shall be properly endorsed or accompanied by properly executed instruments of transfer or, if such certificates
may be registered, registered in the name of such Holder or as ordered by such Holder in any Withdrawal Order) or by such other means as the Depositary may deem practicable, including, without limitation, by transfer of record ownership thereof to
an account designated in the Withdrawal Order maintained either by the Company or an accredited intermediary, such as a bank, acting as a registrar for the Deposited Securities. 

7. Substitution of ADRs. The Depositary shall execute and deliver a new Direct Registration ADR in exchange
and substitution for any mutilated certificated ADR upon cancellation thereof or in lieu of and in substitution for such destroyed, lost or stolen certificated ADR, unless the Depositary has notice that such ADR has been acquired by a bona fide
purchaser, upon the Holder thereof filing with the Depositary a request for such execution and delivery and a sufficient indemnity bond and satisfying any other reasonable requirements imposed by the Depositary. 

8. Cancellation and Destruction of ADRs. All ADRs surrendered to the Depositary shall be cancelled by the
Depositary. The Depositary is authorized to destroy ADRs in certificated form so cancelled in accordance with its customary practices. 

9. The Custodian. 

(a) Rights of the Depositary. Any Custodian in acting hereunder shall be subject to the directions of the Depositary and shall be
responsible solely to it. The Depositary reserves the right to add, replace or remove a Custodian. The Depositary will give prompt notice of any such action, which will be advance notice if practicable. The Depositary may discharge any Custodian at
any time upon notice to the Custodian being discharged. 
 (b) Rights of the Custodian. Any Custodian may resign from its duties
hereunder by providing at least 30 days prior written notice to the Depositary. Promptly after the receipt of such written notice, the Depositary shall endeavor to appoint a substitute custodian or custodians, each of which shall be a Custodian
hereunder upon the effectiveness of such resignation. Any Custodian ceasing to act hereunder as Custodian shall deliver, upon the instruction of the Depositary, all Deposited Securities held by it to a Custodian continuing to act. Notwithstanding
anything to the contrary contained in this Deposit Agreement (including the ADRs) and subject to the penultimate sentence of paragraph (14) of the form of ADR (Exoneration), the Depositary shall not be responsible for, and shall incur no
liability in connection with or arising from, any act or omission to act on the part of the Custodian except to the extent that the Custodian has (i) committed fraud or willful misconduct in the provision of custodial services to the Depositary
or (ii) failed to use reasonable care in the provision of custodial services to the Depositary as determined in accordance with the standards prevailing in the jurisdiction in which the Custodian is located. 

  
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 10. Lists of Holders. The Company shall have the right to
inspect transfer records of the Depositary and its agents and the ADR Register, take copies thereof and require the Depositary and its agents to supply copies of such portions of such records as the Company may request. The Depositary or its agent
shall furnish to the Company promptly upon the written request of the Company, a list of the names, addresses and holdings of ADSs by all Holders as of a date within seven days of the Depositary’s receipt of such request. 

11. Depositary’s Agents. The Depositary may perform its obligations under this Deposit Agreement
through any agent appointed by it, provided that the Depositary shall notify the Company of such appointment and shall remain responsible for the performance of such obligations as if no agent were appointed, subject to paragraph (14) of the
form of ADR (Exoneration). 
 12. Resignation and Removal of the Depositary; Appointment of Successor
Depositary. 
 (a) Resignation 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. 

(b) Removal of the Depositary. The Depositary may at any time be removed by the Company by providing no less than 60 days prior written
notice of such removal to the Depositary, such removal to take effect on the later of (i) the 60th day after such notice of removal is first provided and (ii) the appointment of a successor depositary and its acceptance of such appointment
as hereinafter provided. Notwithstanding the foregoing, if upon the resignation or removal of the Depositary a successor depositary is not appointed within the applicable 60-day period (in the case of
resignation) or 60-day period (in the case of removal) as specified in paragraph (17) of the form of ADR (Termination), then the Depositary may elect to terminate this Deposit Agreement and the ADR and
the provisions of said paragraph (17) shall thereafter govern the Depositary’s obligations hereunder. 
 (c) Appointment of
Successor Depositary. In case at any time the Depositary acting hereunder shall resign or be removed, the Company shall use its best 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. The predecessor depositary, only upon payment of all sums due to it and on the written request of the Company, shall
(i) execute and deliver an instrument transferring to such successor all rights and powers of such predecessor hereunder (other than its rights to indemnification and fees owing, each of which shall survive any such removal and/or resignation),
(ii) duly assign, transfer and deliver all right, title and interest to the Deposited Securities to such successor, and (iii) deliver to such successor a list of the Holders of all outstanding ADRs. Any such successor depositary shall promptly
mail notice of its appointment to such Holders. Any bank or trust company into or with which the Depositary may be merged or consolidated, or to which the Depositary shall transfer substantially all its American depositary receipt business, shall be
the successor of the Depositary without the execution or filing of any document or any further act. 

  
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 13. Reports. On or before the first date on which the Company
makes any communication available to holders of Deposited Securities or any securities regulatory authority or stock exchange, by publication or otherwise, the Company shall transmit to the Depositary a copy thereof in English or with an English
translation or summary. The Company has delivered to the Depositary, the Custodian and any Transfer Office, a copy of all provisions of or governing the Shares and any other Deposited Securities issued by the Company or any affiliate of the Company
and, promptly upon any change thereto, the Company shall deliver to the Depositary, the Custodian and any Transfer Office, a copy (in English or with an English translation) of such provisions as so changed. The Depositary and its agents may rely
upon the Company’s delivery of all such communications, information and provisions for all purposes of this Deposit Agreement and the Depositary shall have no liability for the accuracy or completeness of any thereof. 

14. Additional Shares. The Company agrees with the Depositary that neither the Company nor any company
controlling, controlled by or under common control with the Company shall issue additional Shares, rights to subscribe for Shares, securities convertible into or exchangeable for Shares, or rights to subscribe for any such securities, or shall
deposit any Shares under this Deposit Agreement, except under circumstances complying in all respects with the Securities Act of 1933. At the reasonable request of the Depositary where it deems necessary, the Company will furnish the Depositary with
legal opinions, in forms and from counsels reasonably acceptable to the Depositary, dealing with such issues requested by the Depositary. The Depositary will not knowingly accept for deposit hereunder any Shares required to be registered under the
Securities Act unless a registration statement is in effect and will use reasonable efforts to comply with written instructions of the Company not to accept for deposit hereunder any Shares identified in such instructions at such times and under
such circumstances as may reasonably be specified in such instructions in order to facilitate the Company’s compliance with the requirements of the securities laws, rules and regulations in the United States. 

15. Indemnification. The Company shall indemnify, defend and save harmless each of the Depositary, the
Custodian and their respective directors, officers, employees, agents and affiliates against any loss, liability or expense (including reasonable fees and expenses of counsel) which may arise out of acts performed or omitted, in connection with the
provisions of this Deposit Agreement and of the ADRs, as the same may be amended, modified or supplemented from time to time in accordance herewith (i) by either the Depositary or a Custodian or their respective directors, officers, employees,
agents and affiliates, except for any liability or expense directly arising out of the negligence or willful misconduct of the Depositary or its directors, officers or affiliates acting in their capacities as such hereunder, or (ii) by the
Company or any of its directors, officers, employees, agents and affiliates. 
 The indemnities set forth in the preceding paragraph shall
also apply to any liability or expense which may arise out of any misstatement or alleged misstatement or omission or alleged omission in any registration statement, proxy statement, prospectus (or placement memorandum), or preliminary prospectus
(or preliminary placement memorandum) relating to the offer, issuance, deposit, withdrawal or sale of ADSs, except to the extent any such liability or expense arises out of (i) information relating to the Depositary or its agents (other than
the Company), as applicable, furnished in writing by the Depositary expressly for use in any of the foregoing documents and not changed or altered by the Company or any other person (other than the Depositary or its agents (other than the Company))
or (ii) if such information is provided, the failure to state a material fact therein necessary in order to make the information provided, in the light of the circumstances under which made, not misleading. 

  
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 Except as provided in the next succeeding paragraph or in Section 9 hereof, the Depositary
shall indemnify, defend and save harmless the Company against any direct loss, liability or expense (including reasonable fees and expenses of counsel) incurred by the Company in respect of this Deposit Agreement to the extent such loss, liability
or expense is due to the negligence or willful misconduct of the Depositary. 
 Notwithstanding any other provision of this Deposit
Agreement or the ADRs to the contrary, neither the Depositary nor the Company, nor any of their agents shall be liable to the other for any indirect, special, punitive or consequential damages (excluding reasonable fees and expenses of counsel) or
lost profits, in each case of any form (collectively, “Special Damages”) incurred by any of them, or liable to any other person or entity (including, without limitation, Holders and beneficial owners of, or holders of interests in,
ADSs and ADRs) for any Special Damages, or any fees or expenses of counsel in connection therewith, whether or not foreseeable and regardless of the type of action in which such a claim may be brought; provided, however, that
(i) notwithstanding the foregoing and, for the avoidance of doubt, the Depositary and its agents shall be entitled to legal fees and expenses in defending against any claim for Special Damages and (ii) to the extent Special Damages arise
from or out of a claim brought by a third party (including, without limitation, Holders and beneficial owners of, or holders of interests in, ADSs and ADRs) against the Depositary or any of its agents, the Depositary and its agents shall be entitled
to full indemnification from the Company for all such Special Damages, and reasonable fees and expenses of counsel in connection therewith, unless such Special Damages are found to have been a direct result of the gross negligence or willful
misconduct of the Depositary. 
 The obligations set forth in this Section 15 shall survive the termination of this Deposit Agreement
and the succession or substitution of any indemnified person. 
 16. Notices. 

(a) Notice to Holders. Notice to any Holder shall be deemed given when first mailed, first class postage prepaid, to the address of
such Holder on the ADR Register or received by such Holder. Failure to notify a Holder or any defect in the notification to a Holder shall not affect the sufficiency of notification to other Holders or beneficial owners of, and/or holders of
interests in, ADSs or ADRs held by such other Holders or beneficial owners and/or holders of interests. 
 (b) Notice to the Depositary
or the Company. Notice to the Depositary or the Company shall be deemed given when first received by it at the address, facsimile transmission number or email address set forth in (i) or (ii), respectively, or at such other address or
facsimile transmission number as either may specify to the other by written notice: 
  

	 	(i)	JPMorgan Chase Bank, N.A. 

	 	  	4 New York Plaza, Floor 12 

	 	  	New York, New York, 10004 

	 	  	Attention: Depositary Receipts Group 

	 	  	Fax: (212) 552-1950 

  
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	 	(ii)	iQIYI, Inc. 

	 	  	9/F, iQIYI Innovation Building 

	 	  	No. 2 Haidian North First Street, Haidian District 

	 	  	Beijing, 100080 

	 	  	People’s Republic of China 

	 	  	Attention: Xiaodong Wang 

	 	  	Email: wangxiaodong@qiyi.com 

 17. Counterparts. This
Deposit Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one instrument. Delivery of an executed signature page of this Deposit Agreement by facsimile or other
electronic transmission (including “.pdf”. “.tif” or similar format) shall be effective as delivery of a manually executed counterpart hereof. 

18. No Third-Party Beneficiaries; Holders and Owners as Parties; Binding Effect. This Deposit Agreement is
for the exclusive benefit of the Company, the Depositary, the Holders, and their respective successors hereunder, and, except to the extent specifically set forth in Section 15 of this Deposit Agreement, shall not give any legal or equitable
right, remedy or claim whatsoever to any other person. The Holders and owners of ADRs from time to time shall be parties to this Deposit Agreement and shall be bound by all of the provisions hereof. 

19. Severability. If any such provision is invalid, illegal or unenforceable in any respect, the remaining
provisions shall in no way be affected thereby. 
 20. Governing Law; Consent to Jurisdiction. 

(a) Governing Law; Consent to Jurisdiction. The Deposit Agreement, the ADSs and the ADRs shall be governed by and construed in
accordance with the internal laws of the State of New York without giving effect to the application of the conflict of law principles thereof. The Company irrevocably agrees that any legal suit, action or proceeding against or involving the Company
brought by the Depositary or any Holder, arising out of or based upon this Deposit Agreement, the ADSs or the ADRs or the transactions contemplated hereby or thereby, may be instituted in any state or federal court in New York, New York, and
irrevocably waives any objection which it may now or hereafter have to the laying of venue of any such proceeding, and irrevocably submits to the non-exclusive jurisdiction of such courts in any such suit,
action or proceeding. The Company also irrevocably agrees that any legal suit, action or proceeding against or involving the Depositary brought by the Company, arising out of or based upon this Deposit Agreement, the ADSs or the ADRs or the
transactions contemplated hereby or thereby, may only be instituted in a state or federal court in New York, New York. Notwithstanding the foregoing, subject to the federal securities law carve-out set forth
in Section 20(c) below, the Depositary may refer any such suit, action or proceeding to arbitration in accordance with the provisions of the Deposit Agreement and, upon such referral, any such suit, action or proceeding instituted by the
Company shall be finally decided in such arbitration rather than in such court. 
 (b) Actions by Holders, etc. By holding an ADS or
an interest therein, Holders and owners of interests in ADSs each irrevocably agree that any legal suit, action or proceeding against or involving Holders or owners of interests in ADSs brought by the Company or the Depositary, arising out of or
based upon this Deposit Agreement, the ADSs or the ADRs or the transactions contemplated hereby or thereby, may be instituted in a state or federal court in New York, New York, and by holding an ADS or an interest therein each irrevocably waives any
objection which it may now or hereafter have to the laying of venue of any such proceeding, and irrevocably submits to the non-exclusive jurisdiction of such courts in any such suit, action or proceeding. By
holding an ADS or an interest therein, Holders and owners of interests in ADSs each also irrevocably agree that any legal suit, action or proceeding against or involving the Company or the Depositary brought by Holders or owners of interests in
ADSs, arising out of or based upon this Deposit Agreement, the ADSs or the ADRs or the transactions contemplated hereby or thereby, may only be instituted in a state or federal court in New York, New York. Notwithstanding the foregoing, subject to
the federal securities law carve-out set forth in Section 20(c) below, the Depositary may refer any such suit, action or proceeding to arbitration in accordance with the provisions of the Deposit
Agreement and, upon such referral, any such suit, action or proceeding instituted by Holders and/or owners of interests in ADSs shall be finally decided in such arbitration rather than in such court. 

  
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 (c) Optional Arbitration. Notwithstanding anything in this Deposit Agreement to the
contrary, each of the parties hereto (i.e. the Company, the Depositary and all Holders from time to time of ADRs issued hereunder (and any persons owning or holding interests in ADSs)) agrees that: (i) the Depositary may, in its sole
discretion, elect to institute any dispute, suit, action, controversy, claim or proceeding directly or indirectly based on, arising out of or relating to this Deposit Agreement, the ADSs or the ADRs or the transactions contemplated hereby or
thereby, including without limitation any question regarding its or their existence, validity, interpretation, performance or termination (a “Dispute”) against any other party or parties hereto (including, without limitation, Disputes
brought against Holders and owners of interests in ADSs), by having the Dispute referred to and finally resolved by an arbitration conducted under the terms set out below, and (ii) the Depositary may in its sole discretion require, by written
notice to the relevant party or parties, that any Dispute brought by any party or parties hereto (including, without limitation, Disputes brought by Holders and owners of interests in ADSs) against the Depositary shall be referred to and finally
settled by an arbitration conducted under the terms set out below; provided however, notwithstanding the Depositary’s written notice under this (ii), to the extent there are specific federal securities law violation aspects to any Disputes
against the Company and/or the Depositary brought by any Holder, the federal securities law violation aspects of such Disputes brought by a Holder against the Company and/or the Depositary may, at the option of such Holder, remain in state or
federal court in New York, New York and all other aspects and/or Disputes brought by such Holder against the Company and/or the Depositary, including those brought along with, or in addition to, federal securities law violation claims, would be
referred to arbitration in accordance herewith. Any such arbitration shall at the Depositary’s election be conducted either in New York, New York in accordance with the Commercial Arbitration Rules of the American Arbitration Association or in
Hong Kong following the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL) with the Hong Kong International Arbitration Centre serving as the appointing authority, and the language of any such arbitration shall
be English. A notice of arbitration may be mailed to the Company at its address last specified for notices under this Deposit Agreement, and, if applicable, to any Holders at their addresses on the ADR Register. In any case where the Depositary
exercises its right to arbitrate hereunder, arbitration of the Dispute shall be mandatory and any pending litigation arising out of or related to such Dispute shall be stayed. Judgment upon the award rendered by the arbitrators may be entered in any
court having jurisdiction thereof. The number of arbitrators shall be three, each of whom shall be disinterested in the Dispute, shall have no connection with any party thereto, and shall be an attorney experienced in international securities
transactions. Each of the Company and the Depositary shall appoint one arbitrator and the two arbitrators shall select a third arbitrator who shall serve as chairperson of the tribunal. If a Dispute shall involve more than two parties, the parties
shall attempt to align themselves in two sides (i.e., claimant and respondent), each of which shall appoint one arbitrator as if there were only two parties to such Dispute. If either or both parties fail to select an arbitrator, or if such
alignment (in the event there are more than two parties) shall not have occurred, within thirty (30) calendar days after the Depositary serves the arbitration demand or the two arbitrators fail to select a third arbitrator within thirty
(30) calendar days of the selection of the second arbitrator, the American Arbitration Association in the case of an arbitration in New York, or the Hong Kong International Arbitration Centre in the case of an arbitration in Hong Kong, shall
appoint the remaining arbitrator or arbitrators in accordance with its rules. The parties and the American Arbitration Association and/or the Hong Kong International Arbitration Centre, as the case may be, may appoint the arbitrators from among the
nationals of any country, whether or not the appointing party or any other party to the arbitration is a national of that country. The arbitrators shall have no authority to award damages against any party not measured by the prevailing party’s
actual damages and shall have no authority to award any consequential, special or punitive damages against any party and may not, in any event, make any ruling, finding or award that does not conform to the terms and conditions of this Deposit
Agreement. In all cases, the fees of the arbitrators and other costs incurred by the parties in connection with such arbitration shall be paid by the party (or parties) that is (or are) unsuccessful in such arbitration. No party hereto shall be
entitled to join or consolidate Disputes by or against others in any arbitration, or to include in any arbitration any Dispute as a representative or member of a class, or act in any arbitration in the interest of the general public or in a private
attorney general capacity. 

  
 9 

 (d) Notwithstanding the foregoing or anything in this Deposit Agreement to the contrary, any
suit, action or proceeding based on this Deposit Agreement, the ADSs or the ADRs or the transactions contemplated hereby or thereby, may be instituted by the Depositary in any competent court in the Cayman Islands, Hong Kong, the People’s
Republic of China and/or the United States, or, subject to the federal securities law carve-out set forth in Section 20(c) above, by the Depositary through the commencement of an arbitration pursuant to
Section 20(c) of this Deposit Agreement. 
 21. Appointment. 

(a) Appointment. The Company has appointed Law Debenture Corporate Services Inc., 801 2nd Avenue, Suite 403, New York, New York, 10017,
as its authorized agent (the “Authorized Agent”) upon which process may be served in any such suit, action or proceeding arising out of or based on this Deposit Agreement, the ADSs or the ADRs or the transactions contemplated hereby
or thereby which may be instituted in any state or federal court in New York, New York by the Depositary or any Holder, and waives any other requirements of or objections to personal jurisdiction with respect thereto. 

(b) Agent for Service of Process. Subject to the Company’s rights to replace the Authorized Agent with another entity in the
manner required were the Authorized Agent to have resigned, such appointment shall be irrevocable. The Company represents and warrants that the Authorized Agent has agreed to act as said agent for service of process, and the Company agrees to take
any and all action, including the filing of any and all documents and instruments, that may be necessary to continue such appointment in full force and effect as aforesaid. The Company further hereby irrevocably consents and agrees to the service of
any and all legal process, summons, notices and documents in any suit, action or proceeding against the Company, by service by mail of a copy thereof upon the Authorized Agent (whether or not the appointment of such Authorized Agent shall for any
reason prove to be ineffective or such Authorized Agent shall fail to accept or acknowledge such service), with a copy mailed to the Company by registered or certified air mail, postage prepaid, to its address provided in Section 16(b) hereof.
The Company agrees that the failure of the Authorized Agent to give any notice of such service to it shall not impair or affect in any way the validity of such service or any judgment or award rendered in any suit, action or proceeding based
thereon. If, for any reason, the Authorized Agent named above or its successor shall no longer serve as agent of the Company to receive service of process, notice or papers in New York, the Company shall promptly appoint a successor that is a legal
entity with offices in New York, New York, so as to serve and will promptly advise the Depositary thereof. 

  
 10 

 (c) Waiver of Personal Service of Process. 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. 

22. Waiver of Immunities. 

To the extent that the Company or any of its properties, assets or revenues may have or may hereafter be 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 (including any arbitration), 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 or arbitral award, in any jurisdiction in which proceedings may at any time be commenced, with respect to its obligations, liabilities or other matters under or arising out of or in connection with the Shares or Deposited Securities,
the ADSs, the ADRs 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. 

23. Waiver of Jury Trial. 

EACH PARTY TO THIS DEPOSIT AGREEMENT (INCLUDING, FOR AVOIDANCE OF DOUBT, EACH HOLDER AND BENEFICIAL OWNER OF, AND/OR HOLDER OF INTERESTS IN,
ADSS OR ADRS) 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 DEPOSITARY AND/OR THE COMPANY DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE ADSs OR THE ADRs, THE DEPOSIT AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF (WHETHER BASED ON CONTRACT, TORT, COMMON LAW OR ANY OTHER THEORY).

  
 11 

 IN WITNESS WHEREOF, IQIYI, INC. and JPMORGAN CHASE BANK, N.A. have duly executed this Deposit
Agreement as of the day and year first above set forth and all holders of ADRs shall become parties hereto upon acceptance by them of ADRs issued in accordance with the terms hereof. 

  
 12 

 
			
	 iQIYI, INC.

		
	 By:
	 	 /s/ Yu Gong

	 Name: Yu Gong

	 Title: Chief Executive Officer and Director

	
	 JPMORGAN CHASE BANK, N.A.

		
	 By:
	 	 /s/ Gregory A. Levendis

	 Name: Gregory A. Levendis

	 Title: Executive Director

 [Signature Page to Deposit Agreement] 

 EXHIBIT A 

ANNEXED TO 
 AND 

INCORPORATED IN 

DEPOSIT AGREEMENT 

[FORM OF FACE OF ADR] 
  

			
	Number	  	No. of ADSs:
		  	 Each ADS represents

seven Shares
  

CUSIP:

 AMERICAN DEPOSITARY RECEIPT 

evidencing 
 AMERICAN DEPOSITARY
SHARES 
 representing 
 CLASS A
ORDINARY SHARES 
 of 
 iQIYI,
Inc. 
 (Incorporated under the laws of the Cayman Islands) 

JPMORGAN CHASE BANK, N.A., a national banking association organized under the laws of the United States of America, as depositary hereunder
(the “Depositary”), hereby certifies that is the registered owner (a “Holder”) of American Depositary Shares (“ADSs”), each (subject to paragraph (13) (Changes Affecting Deposited Securities))
representing seven Class A ordinary shares (including the rights to receive Shares described in paragraph (1) (Issuance of ADSs), “Shares” and, together with any other securities, cash or property from time to time held by the
Depositary in respect or in lieu of deposited Shares, the “Deposited Securities”), of iQIYI, Inc., an exempted company incorporated in the Cayman Islands (the “Company”), deposited under the Deposit Agreement, dated
as of    , 2018 (as amended from time to time, the “Deposit Agreement”), among the Company, the Depositary and all Holders from time to time of American Depositary Receipts issued thereunder (“ADRs”),
each of whom by accepting an ADR becomes a party thereto. The Deposit Agreement and this ADR (which includes the provisions set forth on the reverse hereof) shall be governed by and construed in accordance with the internal laws of the State of New
York without giving effect to the application of the conflict of law principles thereof. All capitalized terms used herein, and not defined herein, shall have the meanings ascribed to such terms in the Deposit Agreement. 

  
 A-1 

 (1) Issuance of ADSs. 

(a) Issuance. This ADR is one of the ADRs issued under the Deposit Agreement. Subject to the other provisions hereof, the Depositary
may so issue ADRs for delivery at the Transfer Office (as hereinafter defined) only against deposit of: (i) Shares in a form satisfactory to the Custodian; (ii) rights to receive Shares from the Company or any registrar, transfer agent,
clearing agent or other entity recording Share ownership or transactions; or (iii) in accordance with the next paragraph hereof. 
 (b)
Representations and Warranties of Depositors. Every person depositing Shares under the Deposit Agreement represents and warrants that: (i) such Shares and the certificates therefor are duly authorized, validly issued and outstanding,
fully paid, nonassessable and legally obtained by such person, (ii) all pre-emptive and comparable rights, if any, with respect to such Shares have been validly waived or exercised, (iii) the person
making such deposit is duly authorized so to do, (iv) the Shares presented for deposit are free and clear of any lien, encumbrance, security interest, charge, mortgage or adverse claim, and (iv) such Shares (A) are not
“restricted securities” as such term is defined in Rule 144 under the Securities Act of 1933 (“Restricted Securities”) unless at the time of deposit the requirements of paragraphs (c), (e), (f) and (h) of Rule 144
shall not apply and such Shares may be freely transferred and may otherwise be offered and sold freely in the United States or (B) have been registered under the Securities Act of 1933. To the extent the person depositing Shares is an
“affiliate” of the Company as such term is defined in Rule 144, the person also represents and warrants that upon the sale of the ADSs, all of the provisions of Rule 144 which enable the Shares to be freely sold (in the form of ADSs) will
be fully complied with and, as a result thereof, all of the ADSs issued in respect of such Shares will not be on the sale thereof, Restricted Securities. Such representations and warranties shall survive the deposit and withdrawal of Shares and the
issuance and cancellation of ADSs in respect thereof and the transfer of such ADSs. The Depositary may refuse to accept for such deposit any Shares identified by the Company in order to facilitate compliance with the requirements of the securities
Laws, rules and regulations in the United States. 
 (2) Withdrawal of Deposited Securities. Subject to paragraphs (4)
(Certain Limitations to Registration, Transfer etc.) and (5) (Liability of Holder for Taxes, Duties and Other Charges), upon surrender of (a) a certificated ADR in a form satisfactory to the Depositary at the Transfer Office or (b) proper
instructions and documentation in the case of a Direct Registration ADR, the Holder hereof is entitled to delivery at, or to the extent in dematerialized form from, the Custodian’s office of the Deposited Securities at the time represented by
the ADSs evidenced by this ADR. At the request, risk and expense of the Holder hereof, the Depositary may deliver such Deposited Securities at such other place as may have been requested by the Holder. Notwithstanding any other provision of the
Deposit Agreement or this ADR, the withdrawal of Deposited Securities may be restricted only for the reasons set forth in General Instruction I.A.(1) of Form F-6 (as such instructions may be amended from time
to time) under the Securities Act of 1933. 

  
 A-2 

 (3) Transfers, Split-Ups and Combinations of
ADRs. The Depositary or its agent will keep, at a designated transfer office (the “Transfer Office”), (a) a register (the “ADR Register”) for the registration, registration of transfer, combination and split-up of ADRs, and, in the case of Direct Registration ADRs, shall include the Direct Registration System, which at all reasonable times will be open for inspection by Holders and the Company for the purpose of
communicating with Holders in the interest of the business of the Company or a matter relating to the Deposit Agreement and (b) facilities for the delivery and receipt of ADRs. The term ADR Register includes the Direct Registration System.
Title to this ADR (and to the Deposited Securities represented by the ADSs evidenced hereby), when properly endorsed (in the case of ADRs in certificated form) or upon delivery to the Depositary of proper instruments of transfer, is transferable by
delivery with the same effect as in the case of negotiable instruments under the Laws of the State of New York; provided that the Depositary, notwithstanding any notice to the contrary, may treat the person in whose name this ADR is registered on
the ADR Register as the absolute owner hereof for all purposes and neither the Depositary nor the Company will have any obligation or be subject to any Liability under the Deposit Agreement to any holder of an ADR, unless such holder is the Holder
thereof. Subject to paragraphs (4) and (5), this ADR is transferable on the ADR Register and may be split into other ADRs or combined with other ADRs into one ADR, evidencing the aggregate number of ADSs surrendered for split-up or combination, by the Holder hereof or by duly authorized attorney upon surrender of this ADR at the Transfer Office properly endorsed (in the case of ADRs in certificated form) or upon delivery to the
Depositary of proper instruments of transfer and duly stamped as may be required by applicable Law; provided that the Depositary may close the ADR Register at any time or from time to time when deemed expedient by it or, in the case of the issuance
book portion of the ADR Register, when reasonably requested by the Company solely in order to enable the Company to comply with applicable law; provided further, that the Depositary shall have no liability and shall be indemnified by the Company in
such event. At the request of a Holder, the Depositary shall, for the purpose of substituting a certificated ADR with a Direct Registration ADR, or vice versa, execute and deliver a certificated ADR or a Direct Registration ADR, as the case may be,
for any authorized number of ADSs requested, evidencing the same aggregate number of ADSs as those evidenced by the certificated ADR or Direct Registration ADR, as the case may be, substituted. 

  
 A-3 

 (4) Certain Limitations to Registration, Transfer etc. Prior to the
issue, registration, registration of transfer, split-up or combination of any ADR, the delivery of any distribution in respect thereof, or, subject to the last sentence of paragraph (2) (Withdrawal of
Deposited Securities), the withdrawal of any Deposited Securities, and from time to time in the case of clause (b)(ii) of this paragraph (4), the Company, the Depositary or the Custodian may require: (a) payment with respect thereto of
(i) any stock transfer or other tax or other governmental charge, (ii) any stock transfer or registration fees in effect for the registration of transfers of Shares or other Deposited Securities upon any applicable register, and
(iii) any applicable charges as provided in paragraph (7) (Charges of Depositary) of this ADR; (b) the production of proof satisfactory to it of (i) the identity of any signatory and genuineness of any signature and (ii) such
other information, including without limitation, information as to citizenship, residence, exchange control approval, beneficial or other ownership of, or interest in, any securities, compliance with applicable law, regulations, provisions of or
governing Deposited Securities and terms of the Deposit Agreement and this ADR, as it may deem necessary or proper; and (c) compliance with such regulations as the Depositary may establish consistent with the Deposit Agreement. 

The issuance of ADRs, the acceptance of deposits of Shares, the registration, registration of transfer,
split-up or combination of ADRs or, subject to the last sentence of paragraph (2) (Withdrawal of Deposited Securities), the withdrawal of Deposited Securities may be suspended, generally or in particular
instances, when the ADR Register or any register for Deposited Securities is closed or when any such action is deemed advisable by the Depositary. 

  
 A-4 

 (5) Liability of Holder for Taxes, Duties and Other Charges. If any tax or
other governmental charges (including any penalties and/or interest) shall become payable by or on behalf of the Custodian or the Depositary with respect to this ADR, any Deposited Securities represented by the ADSs evidenced hereby or any
distribution thereon, including, without limitation, any Chinese enterprise income tax owed if the Circular Guoshuifa 2009 No. 82 issued by the Chinese State Administration of Taxation (SAT) or any other circular, edict, order or ruling, as
issued and as from time to time amended, is applied or otherwise, such tax or other governmental charge shall be paid by the Holder hereof to the Depositary and by holding or having held an ADR the Holder and all prior Holders hereof, jointly and
severally, agree to indemnify, defend and save harmless each of the Depositary and its agents in respect thereof. The Depositary may refuse to effect any registration, registration of transfer, split-up or
combination hereof or, subject to the last sentence of paragraph (2) (Withdrawal of Deposited Securities), any withdrawal of such Deposited Securities until such payment is made. The Depositary may also deduct from any distributions on or in respect
of Deposited Securities, or may sell by public or private sale for the account of the Holder hereof any part or all of such Deposited Securities (after attempting through reasonable means to notify the Holder hereof prior to such sale) and may apply
such deduction or the proceeds of any such sale in payment of such tax or other governmental charge, the Holder hereof remaining liable for any deficiency, and shall reduce the number of ADSs evidenced hereby to reflect any such sales of Shares. In
connection with any distribution to Holders, the Company will remit to the appropriate governmental authority or agency all amounts (if any) required to be withheld and owing to such authority or agency by the Company; and the Depositary and the
Custodian will remit to the appropriate governmental authority or agency all amounts (if any) required to be withheld and owing to such authority or agency by the Depositary or the Custodian. If the Depositary determines that any distribution in
property other than cash (including Shares or rights) on Deposited Securities is subject to any tax that the Depositary or the Custodian is obligated to withhold, the Depositary may dispose of all or a portion of such property in such amounts and in
such manner as the Depositary deems necessary and practicable to pay such taxes, by public or private sale, and the Depositary shall distribute the net proceeds of any such sale or the balance of any such property after deduction of such taxes to
the Holders entitled thereto. Each Holder of an ADR or an interest therein agrees to indemnify the Depositary, the Company, the Custodian and any of their respective officers, 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 which obligations
shall survive any transfer or surrender of ADSs or the termination of the Deposit Agreement. 

  
 A-5 

 (6) Disclosure of Interests. To the extent that the provisions of or
governing any Deposited Securities may require disclosure of or impose limits on beneficial or other ownership of, or interest in, Deposited Securities, other Shares and other securities and may provide for blocking transfer, voting or other rights
to enforce such disclosure or limits, Holders and all persons holding ADRs agree to comply with all such disclosure requirements and ownership limitations and to comply with any reasonable Company instructions in respect thereof. The Company
reserves the right to instruct Holders to deliver their ADSs for cancellation and withdrawal of the Deposited Securities so as to permit the Company to deal directly with the Holder thereof as a holder of Shares and Holders agree to comply with such
instructions. The Depositary agrees to cooperate with the Company in its efforts to inform Holders of the Company’s exercise of its rights under this paragraph and agrees to consult with, and provide reasonable assistance without risk,
liability or expense on the part of the Depositary, to the Company on the manner or manners in which the Company may implement such requirements with respect to any Holder, provided, however, for the avoidance of doubt, the Depositary shall be
indemnified by the Company in connection with the foregoing. 
 (7) Charges of Depositary. 

(a) Rights of the Depositary. The Depositary may charge, and collect from, (i) each person to whom ADSs are issued, including,
without limitation, issuances against deposits of Shares, issuances in respect of Share Distributions, Rights and Other Distributions (as such terms are defined in paragraph (10) (Distributions on Deposited Securities)), issuances pursuant to a
stock dividend or stock split declared by the Company, or issuances pursuant to a merger, exchange of securities or any other transaction or event affecting the ADSs or the Deposited Securities, and (ii) each person surrendering ADSs for
withdrawal of Deposited Securities or whose ADSs are cancelled or reduced for any other reason, U.S.$5.00 for each 100 ADSs (or portion thereof) issued, delivered, reduced, cancelled or surrendered (as the case may be). The Depositary may sell (by
public or private sale) sufficient securities and property received in respect of Share Distributions, Rights and Other Distributions prior to such deposit to pay such charge. 

(b) Additional charges by the Depositary. The following additional charges shall be incurred by the Holders, by any party depositing or
withdrawing Shares or by any party surrendering ADSs and/or to whom ADSs are issued (including, without limitation, issuances pursuant to a stock dividend or stock split declared by the Company or an exchange of stock regarding the ADSs or the
Deposited Securities or a distribution of ADSs pursuant to paragraph (10) (Distributions on Deposited Securities), whichever is applicable: (i) a fee of U.S.$0.05 or less per ADS for any Cash distribution made pursuant to the Deposit Agreement,
(ii) a fee for the distribution or sale of securities pursuant to paragraph (10) hereof, such fee being in an amount equal to the fee for the execution and delivery of ADSs referred to above which would have been charged as a result of the
deposit of such securities (for purposes of this paragraph (7) treating all such securities as if they were Shares) but which securities or the net cash proceeds from the sale thereof are instead distributed by the Depositary to Holders
entitled thereto, (iii) an aggregate fee of U.S.$0.05 per ADS per calendar year (or portion thereof) for services performed by the Depositary in administering the ADRs (which fee may be charged on a periodic basis during each calendar year and
shall be assessed against Holders as of the record date or record dates set by the Depositary during each calendar year and shall be payable at the sole discretion of the Depositary by billing such Holders or by deducting such charge from one or
more cash dividends or other cash distributions), and (iv) a fee for the reimbursement of such fees, charges and expenses as are incurred by the Depositary and/or any of its agents (including, without limitation, the Custodian and expenses
incurred on behalf of Holders in connection with compliance with foreign exchange control regulations or any law or regulation relating to foreign investment) in connection with the servicing of the Shares or other Deposited Securities, the sale of
securities (including, without limitation, Deposited Securities), the delivery of Deposited Securities or otherwise in connection with the Depositary’s or its Custodian’s compliance with applicable law, rule or regulation (which fees and
charges shall be assessed on a proportionate basis against Holders as of the record date or dates set by the Depositary and shall be payable at the sole discretion of the Depositary by billing such Holders or by deducting such charge from one or
more cash dividends or other cash distributions). 

  
 A-6 

 (c) Obligations of the Company. The Company will pay all other charges and expenses of the
Depositary and any agent of the Depositary (except the Custodian) pursuant to agreements from time to time between the Company and the Depositary, except: (i) stock transfer or other taxes and other governmental charges (which are payable by
Holders or persons depositing Shares); (ii) SWIFT, cable, telex and facsimile transmission and delivery charges incurred at the request of persons depositing, or Holders delivering Shares, ADRs or Deposited Securities (which are payable by such
persons or Holders); (iii) transfer or registration fees for the registration or transfer of Deposited Securities on any applicable register in connection with the deposit or withdrawal of Deposited Securities (which are payable by persons
depositing Shares or Holders withdrawing Deposited Securities; there are no such fees in respect of the Shares as of the date of the Deposit Agreement); and (iv) in connection with the conversion of foreign currency into U.S. dollars, JPMorgan
Chase Bank, N.A. (“JPMorgan”) shall deduct out of such foreign currency the fees, expenses and other charges charged by it and/or its agent (which may be a division, branch or affiliate) so appointed in connection with such
conversion. JPMorgan and/or its agent may act as principal for such conversion of foreign currency. Such charges may at any time and from time to time be changed by agreement between the Company and the Depositary. For further details see
https://www.adr.com. 
 (d) The right of the Depositary to receive payment of fees, charges and expenses as provided above shall survive the
termination of the Deposit Agreement. As to any Depositary, upon the resignation or removal of such Depositary, such right shall extend for those fees, charges and expenses incurred prior to the effectiveness of such resignation or removal. 

(e) Reimbursement by the Depositary. The Depositary anticipates reimbursing the Company for certain expenses incurred by the Company
that are related to the establishment and maintenance of the ADR program upon such terms and conditions as the Company and the Depositary may agree from time to time. The Depositary may make available to the Company a set amount or a portion of the
Depositary fees charged in respect of the ADR program or otherwise upon such terms and conditions as the Company and the Depositary may agree from time to time. 

  
 A-7 

 (8) Available Information. The Deposit Agreement, the provisions of or governing
Deposited Securities and any written communications from the Company, which are both received by the Custodian or its nominee as a holder of Deposited Securities and made generally available to the holders of Deposited Securities, are available for
inspection by Holders at the offices of the Depositary and the Custodian and at the Transfer Office, on the website of the United States Securities and Exchange Commission (the “Commission”), or upon request from the Depositary (which
request may be refused by the Depositary at its discretion). The Depositary will distribute copies of such communications (or English translations or summaries thereof) to Holders when furnished by the Company. The Company is subject to the periodic
reporting requirements of the Securities Exchange Act of 1934 and accordingly files certain reports with the Commission. Such reports and other information may be inspected and copied through the Commission’s EDGAR system or at public reference
facilities maintained by the Commission located at the date hereof at 100 F Street, NE, Washington, DC 20549. 
 (9) Execution. This
ADR shall not be valid for any purpose unless executed by the Depositary by the manual or facsimile signature of a duly authorized officer of the Depositary. 

Dated: 
  

			
	JPMORGAN CHASE BANK, N.A., as Depositary

 
			
	By  	 	 

 
			
	Authorized Officer

 The Depositary’s office is located at 4 New York Plaza, Floor 12, New York, New York, 10004. 

[FORM OF REVERSE OF ADR] 

(10) Distributions on Deposited Securities. Subject to paragraphs (4) (Certain Limitations to Registration, Transfer etc.) and
(5) (Liability of Holder for Taxes, Duties and other Charges), to the extent practicable, the Depositary will distribute to each Holder entitled thereto on the record date set by the Depositary therefor at such Holder’s address shown on the ADR
Register, in proportion to the number of Deposited Securities (on which the following distributions on Deposited Securities are received by the Custodian) represented by ADSs evidenced by such Holder’s ADRs: 

(a) Cash. Any U.S. dollars available to the Depositary resulting from a cash dividend or other cash distribution or the net proceeds of
sales of any other distribution or portion thereof authorized in this paragraph (10) (“Cash”), on an averaged or other practicable basis, subject to (i) appropriate adjustments for taxes withheld, (ii) such distribution
being impermissible or impracticable with respect to certain Holders, and (iii) deduction of the Depositary’s and/or its agents’ fees and expenses in (1) converting any foreign currency to U.S. dollars by sale or in such other
manner as the Depositary may determine to the extent that it determines that such conversion may be made on a reasonable basis, (2) transferring foreign currency or U.S. dollars to the United States by such means as the Depositary may determine
to the extent that it determines that such transfer may be made on a reasonable basis, (3) obtaining any approval or license of any governmental authority required for such conversion or transfer, which is obtainable at a reasonable cost and
within a reasonable time and (4) making any sale by public or private means in any commercially reasonable manner. 

  
 A-8 

 (b) Shares. (i) Additional ADRs evidencing whole ADSs representing any Shares
available to the Depositary resulting from a dividend or free distribution on Deposited Securities consisting of Shares (a “Share Distribution”) and (ii) U.S. dollars available to it resulting from the net proceeds of sales of
Shares received in a Share Distribution, which Shares would give rise to fractional ADSs if additional ADRs were issued therefor, as in the case of Cash. 

(c) Rights. (i) Warrants or other instruments in the discretion of the Depositary representing rights to acquire additional ADRs
in respect of any rights to subscribe for additional Shares or rights of any nature available to the Depositary as a result of a distribution on Deposited Securities (“Rights”), to the extent that the Company timely furnishes to the
Depositary evidence satisfactory to the Depositary that the Depositary may lawfully distribute the same (the Company has no obligation to so furnish such evidence), or (ii) to the extent the Company does not so furnish such evidence and sales
of Rights are practicable, any U.S. dollars available to the Depositary from the net proceeds of sales of Rights as in the case of Cash, or (iii) to the extent the Company does not so furnish such evidence and such sales cannot practicably be
accomplished by reason of the nontransferability of the Rights, limited markets therefor, their short duration or otherwise, nothing (and any Rights may lapse). 

(d) Other Distributions. (i) Securities or property available to the Depositary resulting from any distribution on Deposited
Securities other than Cash, Share Distributions and Rights (“Other Distributions”), by any means that the Depositary may deem equitable and practicable, or (ii) to the extent the Depositary deems distribution of such securities or
property not to be equitable and practicable, any U.S. dollars available to the Depositary from the net proceeds of sales of Other Distributions as in the case of Cash. The Depositary reserves the right to utilize a division, branch or affiliate of
JPMorgan Chase Bank, N.A. to direct, manage and/or execute any public and/or private sale of securities hereunder. Such division, branch and/or affiliate may charge the Depositary a fee in connection with such sales, which fee is considered an
expense of the Depositary contemplated above and/or under paragraph (7) (Charges of Depositary). Any U.S. dollars available will be distributed by checks drawn on a bank in the United States for whole dollars and cents. Fractional cents will be
withheld without liability and dealt with by the Depositary in accordance with its then current practices. All purchases and sales of securities will be handled by the Depositary in accordance with its then current policies, which are currently set
forth in the “Depositary Receipt Sale and Purchase of Security” section of https://www.adr.com/Investors/FindOutAboutDRs, the location and contents of which the Depositary shall be solely responsible for. 

  
 A-9 

 (11) Record Dates. The Depositary may, after consultation with the Company if practicable,
fix a record date (which, to the extent applicable, shall be as near as practicable to any corresponding record date set by the Company) for the determination of the Holders who shall be responsible for the fee assessed by the Depositary for
administration of the ADR program and for any expenses provided for in paragraph (7) hereof as well as for the determination of the Holders who shall be entitled to receive any distribution on or in respect of Deposited Securities, to give
instructions for the exercise of any voting rights, to receive any notice or to act in respect of other matters and only such Holders shall be so entitled or obligated. 

(12) Voting of Deposited Securities. 

(a) Notice of any Meeting or Solicitation. Subject to the next sentence, as soon as practicable after receipt of notice of any meeting
at which the holders of Shares are entitled to vote, or of solicitation of consents or proxies from holders of Shares or other Deposited Securities, the Depositary shall fix the ADS record date in accordance with paragraph (11) above in respect
of such meeting or solicitation of consent or proxy. The Depositary shall, if requested by the Company in writing in a timely manner (the Depositary having no obligation to take any further action if the request shall not have been received by the
Depositary at least 30 days prior to the date of such vote or meeting) and at the Company’s expense and provided no legal prohibitions exist, distribute to Holders a notice stating (i) such information as is contained in such notice and
any solicitation materials, (ii) that each Holder on the record date set by the Depositary therefor will, subject to any applicable provisions of the Laws of the Cayman Islands, be entitled to instruct the Depositary as to the exercise of the
voting rights, if any, pertaining to the Deposited Securities represented by the ADSs evidenced by such Holder’s ADRs and (iii) the manner in which such instructions may be given or deemed given in accordance with the next paragraph,
including instructions to give a discretionary proxy to a person designated by the Company. Upon actual receipt by the ADR department of the Depositary of instructions of a Holder on such record date in the manner and on or before the time
established by the Depositary for such purpose, the Depositary shall endeavor insofar as practicable and permitted under the provisions of or governing Deposited Securities to vote or cause to be voted the Deposited Securities represented by the
ADSs evidenced by such Holder’s ADRs in accordance with such instructions. The Depositary will not itself exercise any voting discretion in respect of any Deposited Securities. 

To the extent the Depositary has been provided with at Least 45 days’ notice of the proposed meeting, if such instructions are not so
timely received by the Depositary from any Holder, such Holder shall be deemed, and the Depositary is instructed to deem such Holder, to have instructed the Depositary to give a discretionary proxy to a person designated by the Company to vote the
Deposited Securities represented by the ADSs evidenced by such Holder’s Receipts as to which such instructions are so given, provided that no such instruction shall be deemed given and no discretionary proxy (the “Proxy”) shall
be given (a) if the Company informs the Depositary in writing (and the Company agrees to provide the Depositary with such information promptly in writing) that (i) it does not wish such Proxy to be given, (ii) substantial opposition
exists with respect to any agenda item for which the Proxy would be given or (iii) the agenda item in question, if approved, would materially or adversely affect the rights of holders of Shares and (b) unless, with respect to such meeting,
the Depositary has been provided with an opinion of Cayman Islands counsel to the Company as agreed with such counsel, in form and substance satisfactory to the Depositary, to the effect that (a) the granting of such discretionary proxy does
not subject the Depositary to any reporting obligations in the Cayman Islands solely by reason of grant, (b) the granting of such proxy will not result in a contravention of Cayman Islands Law, rule, regulation or permit applicable to the
Company or the Depositary and (c) the proxy granted by the Depositary to the Company as contemplated herein will be enforceable as a matter of Cayman Islands Law; provided that such proxy is granted by the Depositary in accordance with the
Memorandum and Articles of Association of the Company and is not subsequently revoked. 

  
 A-10 

 (b) Voting of Deposited Securities. There is no guarantee that Holders generally or any
Holder in particular will receive the notice described above with sufficient time to enable such Holder to return any voting instructions to the Depositary in a timely manner. Notwithstanding anything contained in the Deposit Agreement or any ADR,
the Depositary may, to the extent not prohibited by Law or regulations, or by the requirements of the stock exchange on which the ADSs are listed, in lieu of distribution of the materials provided to the Depositary in connection with any meeting of,
or solicitation of consents or proxies from, holders of Deposited Securities, distribute to the Holders a notice that provides Holders with, or otherwise publicizes to Holders, instructions on how to retrieve such materials or receive such materials
upon request (i.e., by reference to a website containing the materials for retrieval or a contact for requesting copies of the materials). Holders are strongly encouraged to forward their voting instructions as soon as possible. Voting instructions
will not be deemed received until such time as the ADR department responsible for proxies and voting has received such instructions notwithstanding that such instructions may have been physically received by JPMorgan Chase Bank, N.A., as Depositary,
prior to such time. 
 The Depositary has been advised by the Company that under the laws of the Cayman Islands and the Memorandum and
Articles of Association of the Company, each as in effect as of the date of the Deposit Agreement, voting at any meeting of shareholders of the Company is by show of hands unless a poll is (before or on the declaration of the results of the show of
hands) demanded by the chairman or one or more shareholders present in person or by proxy entitled to vote. In the event that voting on any resolution or matter is conducted on a show of hands basis in accordance with the Memorandum and Articles of
Association, the Depositary will refrain from voting and the voting instructions received by the Depositary from Holders shall lapse. The Depositary will not demand a poll or join in demanding a poll, whether or not requested to do so by Holders of
ADSs. 
 (13) Changes Affecting Deposited Securities. 

(a) Subject to paragraphs (4) (Certain Limitations to Registration, Transfer etc.) and (5) (Liability of Holder to Taxes, Duties and Other
Charges), the Depositary may, in its discretion, and shall if reasonably requested by the Company, amend this ADR or distribute additional or amended ADRs (with or without calling this ADR for exchange) or cash, securities or property on the record
date set by the Depositary therefor to reflect any change in par value, split-up, consolidation, cancellation or other reclassification of Deposited Securities, any Share Distribution or Other Distribution not
distributed to Holders or any cash, securities or property available to the Depositary in respect of Deposited Securities from (and the Depositary is hereby authorized to surrender any Deposited Securities to any person and, irrespective of whether
such Deposited Securities are surrendered or otherwise cancelled by operation of law, rule, regulation or otherwise, to sell by public or private sale any property received in connection with) any recapitalization, reorganization, merger,
consolidation, liquidation, receivership, bankruptcy or sale of all or substantially all the assets of the Company. 

  
 A-11 

 (b) To the extent the Depositary does not so amend this ADR or make a distribution to Holders to
reflect any of the foregoing, or the net proceeds thereof, whatever cash, securities or property results from any of the foregoing shall constitute Deposited Securities and each ADS evidenced by this ADR shall automatically represent its pro rata
interest in the Deposited Securities as then constituted. 
 (c) Promptly upon the occurrence of any of the aforementioned changes affecting
Deposited Securities, the Company shall notify the Depositary in writing of such occurrence and as soon as practicable after receipt of such notice from the Company, may instruct the Depositary to give notice thereof, at the Company’s expense,
to Holders in accordance with the provisions hereof. Upon receipt of such instruction, the Depositary shall give notice to the Holders in accordance with the terms thereof, as soon as reasonably practicable. 

  
 A-12 

 (14) Exoneration. The Depositary, the Company, and each of their respective directors,
officers, employees, agents and affiliates, and each of them, shall: (a) incur no liability (i) if any present or future law, rule, regulation, fiat, order or decree of the United States, the Cayman Islands, Hong Kong, the People’s
Republic of China or any other country or jurisdiction, or of any governmental or regulatory authority or any securities exchange or market or automated quotation system, the provisions of or governing any Deposited Securities, any present or future
provision of the Company’s charter, any act of God, war, terrorism, nationalization, expropriation, currency restrictions, work stoppage, strike, civil unrest, revolutions, rebellions, explosions, computer failure or circumstance beyond its
direct and immediate control shall prevent or delay, or shall cause any of them to be subject to any civil or criminal penalty in connection with, any act which the Deposit Agreement or this ADR provides shall be done or performed by it or them
(including, without limitation, voting pursuant to paragraph (12) hereof), or (ii) by reason of any exercise or failure to exercise any discretion given it in the Deposit Agreement or this ADR (including, without limitation, any failure to
determine that any distribution or action may be lawful or reasonably practicable); (b) assume no liability except to perform its obligations to the extent they are specifically set forth in this ADR and the Deposit Agreement without gross
negligence or willful misconduct; (c) in the case of the Depositary and its agents, be under no obligation to appear in, prosecute or defend any action, suit or other proceeding in respect of any Deposited Securities, the ADSs or this ADR;
(d) in the case of the Company and its agents hereunder be under no obligation to appear in, prosecute or defend any action, suit or other proceeding in respect of any Deposited Securities, the ADSs or this ADR, which in its opinion may involve
it in expense or liability, unless indemnity satisfactory to it against all expense (including fees and disbursements of counsel) and liability be furnished as often as may be required; or (e) not be liable for any action or inaction by it in
reliance upon the advice of or information from legal counsel, accountants, any person presenting Shares for deposit, any Holder, or any other person believed by it to be competent to give such advice or information. The Depositary shall not be
liable for the acts or omissions made by, or the insolvency of, any securities depository, clearing agency or settlement system. The Depositary shall not be responsible for, and shall incur no liability in connection with or arising from, the
insolvency of any Custodian that is not a branch or affiliate of JPMorgan Chase Bank, N.A. The Depositary shall not have any liability for the price received in connection with any sale of securities, the timing thereof or any delay in action or
omission to act nor shall it be responsible for any error or delay in action, omission to act, default or negligence on the part of the party so retained in connection with any such sale or proposed sale. Notwithstanding anything to the contrary
contained in the Deposit Agreement (including the ADRs), subject to the penultimate sentence of this paragraph (14), the Depositary shall not be responsible for, and shall incur no liability in connection with or arising from, any act or omission to
act on the part of the Custodian except to the extent that the Custodian has (i) committed fraud or willful misconduct in the provision of custodial services to the Depositary or (ii) failed to use reasonable care in the provision of
custodial services to the Depositary as determined in accordance with the standards prevailing in the jurisdiction in which the Custodian is located. The Depositary, its agents and the Company may rely and shall be protected in acting upon any
written notice, request, direction, instruction or document believed by them to be genuine and to have been signed, presented or given by the proper party or parties. The Depositary shall be under no obligation to inform Holders or beneficial owners
of, or any other holders of an interest in, any ADSs or ADRs about the requirements of the laws, rules or regulations or any changes therein or thereto of the United States of America, the Cayman Islands, Hong Kong, the People’s Republic of
China or any other country or jurisdiction, or of any governmental or regulatory authority or any securities exchange or market or automated 

  
 A-13 

 
quotation system. The Depositary and its agents will not, when acting in good faith, be responsible for any failure to carry out any instructions to vote any of the Deposited Securities, for the
manner in which any such vote is cast or for the effect of any such vote. The Depositary may rely upon instructions from the Company or its counsel in respect of any approval or license required for any currency conversion, transfer or distribution.
The Depositary and its agents may own and deal in any class of securities of the Company and its affiliates and in ADRs. Notwithstanding anything to the contrary set forth in the Deposit Agreement or an ADR, the Depositary and its agents may fully
respond to any and all demands or requests for information maintained by or on its behalf in connection with the Deposit Agreement, any Holder or Holders, any ADR or ADRs or otherwise related hereto or thereto to the extent such information is
requested or required by or pursuant to any lawful authority, including without limitation laws, rules, regulations, administrative or judicial process, banking, securities or other regulators. None of the Depositary, the Custodian or the Company
shall be liable for the failure by any Holder or beneficial owner of, or any other holder of an interest in, ADSs or ADRs to obtain the benefits of credits on the basis of non-U.S. tax paid against such
Holder’s or beneficial owner’s or other holder’s income tax liability. The Depositary and the Company shall not incur any liability for any tax consequences that may be incurred by Holders and beneficial owners of, or other holders of
interests in, ADSs or ADRs on account of their ownership of the ADSs or ADRs. The Depositary shall not incur any liability for the content of any information submitted to it by or on behalf of the Company for distribution to the Holders or for any
inaccuracy of any translation thereof, for any investment risk associated with acquiring an interest in the Deposited Securities, for the validity or worth of the Deposited Securities, for the credit-worthiness of any third party, for allowing any
rights to lapse upon the terms of the Deposit Agreement or for the failure or timeliness of any notice from the Company. 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. The Company has agreed to indemnify the Depositary and its agents under certain circumstances and the
Depositary has agreed to indemnify the Company under certain circumstances. Neither the Depositary nor any of its agents shall be liable to Holders or beneficial owners of, or holders of interests in, ADSs or ADRs for any indirect, special, punitive
or consequential damages or lost profits, or any fees or expenses of counsel in connection therewith, in each case of any form incurred by any person or entity, whether or not foreseeable and regardless of the type of action in which such a claim
may be brought. No disclaimer of liability under the Securities Act of 1933 is intended by any provision hereof. 
 (15) Resignation and
Removal of Depositary; the Custodian. 
 (a) Resignation. The Depositary may resign as Depositary by written notice of its
election so to do so 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. 

(b) Removal. The Depositary may at any time be removed by the Company by no less than 60 days prior written notice of such removal, to
become effective upon the later of (i) the 60th day after delivery of the notice to the Depositary and (ii) the appointment of a successor depositary and its acceptance of such appointment as provided in the Deposit Agreement. 

  
 A-14 

 (c) The Custodian. The Depositary may appoint substitute or additional Custodians and the
term “Custodian” refers to each Custodian or all Custodians as the context requires. 
 (16) Amendment. Subject to the last
sentence of paragraph (2) (Withdrawal of Deposited Securities), the ADRs and the Deposit Agreement may be amended by the Company and the Depositary, provided that any amendment that imposes or increases any fees or charges (other than stock
transfer or other taxes and other governmental charges, transfer or registration fees, SWIFT, cable, telex or facsimile transmission costs, delivery costs or other such expenses), or that shall otherwise prejudice any substantial existing right of
Holders, shall become effective 30 days after notice of such amendment shall have been given to the Holders. Every Holder of an ADR at the time any amendment to the Deposit Agreement so becomes effective shall be deemed, by continuing to hold such
ADR, 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 Holder of any ADR to surrender such ADR and receive the Deposited Securities represented
thereby, except in order to comply with mandatory provisions of applicable law. Any amendments or supplements which (i) are reasonably necessary (as agreed by the Company and the Depositary) in order for (a) the ADSs to be registered on
Form F-6 under the Securities Act of 1933 or (b) the ADSs or Shares to be traded solely in electronic book-entry form and (ii) do not in either such case impose or increase any fees or charges to be
borne by Holders, shall be deemed not to prejudice any substantial rights of Holders. Notwithstanding the foregoing, if any governmental body or regulatory body should adopt new laws, rules or regulations which would require amendment or supplement
of the Deposit Agreement or the form of ADR to ensure compliance therewith, the Company and the Depositary may amend or supplement the Deposit Agreement and the ADR at any time in accordance with such changed laws, rules or regulations. Such
amendment or supplement to the Deposit Agreement in such circumstances may become effective before a notice of such amendment or supplement is given to Holders or within any other period of time as required for compliance. Notice of any amendment to
the Deposit Agreement or form of ADRs shall not need to describe in detail the specific amendments effectuated thereby, and failure to describe the specific amendments in any such notice shall not render such notice invalid, provided, however, that,
in each such case, the notice given to the Holders identifies a means for Holders to retrieve or receive the text of such amendment (i.e., upon retrieval from the Commission’s, the Depositary’s or the Company’s website or upon request
from the Depositary). 

  
 A-15 

 (17) Termination. The Depositary may, and shall at the written direction of
the Company, terminate the Deposit Agreement and this ADR by mailing notice of such termination to the Holders at least 30 days prior to the date fixed in such notice for such termination; provided, however, if the Depositary shall have
(i) resigned as Depositary hereunder, notice of such termination by the Depositary shall not be provided to Holders unless a successor depositary shall not be operating hereunder within 60 days of the date of such resignation, or (ii) been
removed as Depositary hereunder, notice of such termination by the Depositary shall not be provided to Holders unless a successor depositary shall not be operating hereunder on the 60th day after the Company’s notice of removal was first
provided to the Depositary. Notwithstanding anything to the contrary herein, the Depositary may terminate the Deposit Agreement without notice to the Company, but subject to giving 30 days’ notice to the Holders, under the following
circumstances: (i) in the event of the Company’s bankruptcy or insolvency, (ii) if the Company’s shares are de-listed, (iii) if the Company effects (or will effect) a redemption of all
or substantially all of the Deposited Securities, or a cash or share distribution representing a return of all or substantially all of the value of the Deposited Securities, or (iv) there occurs a merger, consolidation, sale of assets or other
transaction as a result of which securities or other property are delivered in exchange for or in lieu of Deposited Securities. 
 After the
date so fixed for termination, (a) all Direct Registration ADRs shall cease to be eligible for the Direct Registration System and shall be considered ADRs issued on the ADR Register and (b) the Depositary shall use its reasonable efforts
to ensure that the ADSs cease to be DTC eligible so that neither DTC nor any of its nominees shall thereafter be a Holder. At such time as the ADSs cease to be DTC eligible and/or neither DTC nor any of its nominees is a Holder, the Depositary shall
(a) instruct its Custodian to deliver all Deposited Securities to the Company along with a general stock power that refers to the names set forth on the ADR Register and (b) provide the Company with a copy of the ADR Register (which copy
may be sent by email or by any means permitted under the notice provisions of the Deposit Agreement). Upon receipt of such Deposited Securities and the ADR Register, the Company shall use its best efforts to issue to each Holder a Share certificate
representing the Shares represented by the ADSs reflected on the ADR Register in such Holder’s name and to deliver such Share certificate to the Holder at the address set forth on the ADR Register. After providing such instruction to the
Custodian and delivering a copy of the ADR Register to the Company, the Depositary and its agents will perform no further acts under the Deposit Agreement and this ADR and shall cease to have any obligations under the Deposit Agreement and/or the
ADRs. After the Company receives the copy of the ADR Register and the Deposited Securities, the Company shall be discharged from all obligations under the Deposit Agreement except (i) to distribute the Shares to the Holders entitled thereto and
(ii) for its obligations to the Depositary and its agents. 

  
 A-16 

 (18) Appointment. Each Holder and each owner and person holding an interest in ADSs or
ADRs, upon acceptance of any ADSs or ADRs (or any interest therein) issued in accordance with the terms and conditions of the Deposit Agreement shall be deemed for all purposes to (a) be a party to and bound by the terms of the Deposit
Agreement and the applicable ADR(s), and (b) appoint the Depositary its attorney-in-fact, with full power to delegate, to act on its behalf and to take any and all
actions contemplated in the Deposit Agreement and the applicable ADR(s), to adopt any and all procedures necessary to comply with applicable law and to take such action as the Depositary in its sole discretion may deem necessary or appropriate to
carry out the purposes of the Deposit Agreement and the applicable ADR(s), the taking of such actions to be the conclusive determinant of the necessity and appropriateness thereof. 

(19) Waiver. EACH PARTY TO THE DEPOSIT AGREEMENT (INCLUDING, FOR AVOIDANCE OF DOUBT, EACH HOLDER AND BENEFICIAL OWNER OF, AND/OR HOLDER
OF INTERESTS IN, ADSS OR ADRS) 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 DEPOSITARY AND/OR THE COMPANY DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE ADSs OR THE ADRs, THE DEPOSIT AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF (WHETHER BASED ON CONTRACT, TORT, COMMON LAW OR
ANY OTHER THEORY). 

  
 A-17 

 (20) Jurisdiction. By holding an ADS or an interest therein, Holders and owners of
interests in ADSs each irrevocably agree that any legal suit, action or proceeding against or involving Holders or owners of interests in ADSs brought by the Company or the Depositary, arising out of or based upon the Deposit Agreement, the ADSs or
the ADRs or the transactions contemplated thereby or hereby, may be instituted in a state or federal court in New York, New York, and by holding an ADS or an interest therein each irrevocably waives any objection which it may now or hereafter have
to the laying of venue of any such proceeding, and irrevocably submits to the non-exclusive jurisdiction of such courts in any such suit, action or proceeding. By holding an ADS or an interest therein, Holders
and owners of interests in ADSs each also irrevocably agree that any legal suit, action or proceeding against or involving the Company or the Depositary brought by Holders or owners of interests in ADSs, arising out of or based upon the Deposit
Agreement, the ADSs or the ADRs or the transactions contemplated thereby or hereby, may only be instituted in a state or federal court in New York, New York. Notwithstanding the above or anything in the Deposit Agreement to the contrary, in the
Deposit Agreement each of the parties thereto (i.e. the Company, the Depositary and all Holders from time to time of ADRs issued thereunder (and any persons owning or holding interests in ADSs)) have agreed that: (i) the Depositary may, in its
sole discretion, elect to institute any dispute, suit, action, controversy, claim or proceeding directly or indirectly based on, arising out of or relating to the Deposit Agreement, the ADSs or the ADRs or the transactions contemplated thereby or
hereby, including without limitation any question regarding its or their existence, validity, interpretation, performance or termination (a “Dispute”) against any other party or parties (including, without limitation, Disputes brought
against Holders and owners of interests in ADSs), by having the Dispute referred to and finally resolved by an arbitration conducted under the terms set out below, and (ii) the Depositary may in its sole discretion require, by written notice to
the relevant party or parties, that any Dispute brought by any party or parties (including, without limitation, Disputes brought by Holders and owners of interests in ADSs) against the Depositary shall be referred to and finally settled by an
arbitration conducted under the terms set out in the Deposit Agreement: provided however, notwithstanding the Depositary’s written notice under this (ii), to the extent there are specific federal securities law violation aspects to any Disputes
against the Company and/or the Depositary brought by any Holder, the federal securities law violation aspects of such Disputes brought by a Holder against the Company and/or the Depositary may, at the option of such Holder, remain in state or
federal court in New York, New York and all other aspects and/or Disputes brought by such Holder against the Company and/or the Depositary, including those brought along with, or in addition to, federal securities law violation claims, would be
referred to arbitration in accordance herewith. Any such arbitration shall at the Depositary’s election be conducted either in New York, New York in accordance with the Commercial Arbitration Rules of the American Arbitration Association or in
Hong Kong following the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL) with the Hong Kong International Arbitration Centre serving as the appointing authority, and the language of any such arbitration shall
be English, in each case as provided in the Deposit Agreement. 

  
 A-18Exhibit 10.1

 

		14269 N. 87th Street #205

Scottsdale, AZ 85260

 

Employment
Agreement

 

THIS EMPLOYMENT AGREEMENT
("Agreement") is made effective the 23rd day of May, 2018 (the “Effective Date”)
by and between Zoned Properties, Inc., a Nevada corporation (the “Company”), and Bryan McLaren, an individual
residing in the State of Arizona ("Employee").

 

Recital

 

WHEREAS, the
Company desires to continue the employment of Employee and Employee desires to continue to be employed by the Company, pursuant
to the terms and conditions of this Agreement.

 

NOW THEREFORE,
in consideration of the mutual promises contained herein, the benefits to be derived by each party hereunder and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

Agreement

 

1. Employment.
Upon the terms and subject to the conditions set forth herein, Employer hereby agrees to continue the employment of Employee and
Employee agrees to continue his employment with Employer during the Term (defined hereinafter) as Employer’s Chief Executive
Officer.

 

2. Term.
The term of this Agreement (the “Term”) shall commence as of the Effective Date and shall, unless sooner terminated
or extended, terminate on the tenth (10th) anniversary of the Effective Date (the “Expiration Date”),
as same may be extended by the parties in consistent the provision of Section 7. c) hereof.

 

3. Compensation.
As compensation for the services rendered to the Company agrees to compensate Employee in an amount equal to $215,000.00
annually (the “Salary”) for his services, payable bi-weekly or as is otherwise consistent with the
Company’s ordinary payroll policies throughout the Term, from which shall be withheld applicable state and federal
income taxes, and such other and similar payroll taxes and charges (including deductions for medical benefits) as may be
required or appropriate under applicable law. The Salary shall be reviewed by the board of directors of the Company (the
“Board”) on or prior to each anniversary of the Effective Date and any increases to the Salary shall be
commensurate with an increase in Employee’s experience and commensurate with the Company’s growth. The Company
will also award Employee with an annual and/or quarterly bonus payable in either cash and/or equity of no less than two
percent (2%) of the Company’s net income for the associated period.

 

4. Duties;
Termination. During the term of this Agreement, Employee will serve as the Company’s Chief Executive Officer and shall
perform tasks and have the rights, powers and obligations normally associated with the office of Chief Executive Officer. Employee
shall advise Employer as to the operational management and strategic development of Employer’s organization. Employee agrees
to perform such tasks as the Board shall reasonably request. Employee and Employer agree that any termination of Employee’s
employment shall be subject to the Golden Parachute Agreement included as Exhibit A.

 

5. Extent
of Services. Employee may perform services for any external organizations and volunteer with any charitable organizations provided
that such services do not prevent Employee from performing his tasks and obligations under this Agreement.

 

    	 	www.zonedproperties.com
 877-360-8839	1

    
		14269 N. 87th Street #205
 Scottsdale, AZ 85260

    

 

6. Expenses.
Employee may incur reasonable expenses on behalf of and to enact business for the Company, including reasonable expenses for entertainment,
travel, and similar items. The Company will reimburse Employee for all such expenses upon Employee’s periodic presentation
of an itemized account of such expenditures.

 

7. Early Termination
of Term of Agreement; Effect of Termination. The Term and the employment of Employee by the Company under this Agreement shall
terminate (a “Termination”) in any of the following circumstances:

 

		a)	immediately, if the Employee dies, as defined in Section 9;

 

		b)	immediately, if Employee receives benefits under the long-term disability insurance coverage then
provided by the Company or, if no such insurance is in effect, upon Employee’s disability (as defined in Exhibit A);

 

		c)	on the Expiration Date, as same may be extended by the parties by written amendment to this Agreement
prior to the occasion thereof;

 

		d)	at the option of the Company for Cause (as defined in Exhibit A) upon the Company’s
provision of written notice to Employee of the basis for such Termination;

 

		e)	at the option of the Company, without Cause (as defined in Exhibit A);

 

		f)	by Employee at any time with Good Reason (as defined in Exhibit A), upon thirty (30)
days’ prior written notice to the Company delivered not later than within ninety (90) days of the existence of the condition
therefor; or

 

		g)	by Employee at any time without Good Reason (as defined in Exhibit A), upon not less
than three (3) months’ prior written notice to the Company.

 

In the event of a Termination
for any reason or for no reason whatsoever, or upon the Expiration Date, whichever comes first, all rights and obligations under
this Agreement shall cease (i) as to the Company, except for the Company’s obligations for the payment of applicable severance
benefits under Section 9 hereof and Section 4(iii) of Exhibit A attached hereto, and for indemnification under Section
12 hereof, and (ii) as to Employee, except for Employee’s obligation under Sections 8. The parties acknowledge and agree
that Sections 8, 9, and 12 hereof, and Exhibit A herein shall survive the termination of Employee’s termination
of employment hereunder.

 

8. Restrictive
Covenants.

 

a) Customer
Restriction. For so long as the Employee is employed by the Company, Employee covenants and agrees that he shall not,
working alone or in conjunction with one or more other persons or entities, for compensation or not, (i) provide or offer to
provide to any Customer any products or services which are the same as or are sold in competition with those offered by
Company, its related parties, subsidiaries or affiliates, or (ii) induce or attempt to induce any Customer to withdraw,
curtail or cancel its business with Company its related parties, subsidiaries or affiliates.

 

    	 	www.zonedproperties.com
 877-360-8839	2

    
		14269 N. 87th Street #205
 Scottsdale, AZ 85260

    

 

b) Non
Raid. For so long as the Employee is employed by Company, Employee covenants and agrees that he shall not, working alone or
in conjunction with one or more other persons or entities, for compensation or not, directly or indirectly recruit or otherwise
solicit or induce any person or entity who is an employee or Vendor of Company or any of its related parties, subsidiaries or affiliates,
to terminate their employment with, or otherwise cease their relationship with, Company or any of its related parties, subsidiaries
or affiliates.

 

9. Death During
Employment. If Employee dies during the term of this Agreement, then the Company shall pay to Employee’s designated beneficiary
or to Employee’s estate the compensation, which would otherwise be payable to Employee for the period of one (1) year and
this Agreement shall be terminated.

 

10. Employee Not
Restricted by Other Agreement. Employee hereby expressly represents, warrants, and covenants to the Company that he is not
bound, in any manner, by any agreement, whether written or oral, which would restrict him from performing any duties or obligations
under this Agreement.

 

11. Superseding
Agreement. Employee and the Company agree that this agreement will supersede any other employment contract(s) existing or already
in place.

 

12. Indemnification.
Employer shall hold harmless, defend, and indemnify Employee from all claims, demands, or causes of action brought, at any time,
against Employee as a result of any of the following circumstances: (a) Employee’s providing services to Employer; (b) any
action or inaction arising from or relating to Employee’s position as an Officer of Employer; or (c) any action taken or
which should have been taken in the course and scope of Employee’s employment with Employer, or which arose from or related
to such employment, including all costs for any judgment, settlement, attorney fees, legal defense, and other expenses related
to same; provided, however, that such indemnification obligations provided herein shall not extend to any events which constitute
willful misconduct, fraud or gross negligence.

 

13. Entire Agreement.
This Agreement constitutes the entire understanding between the parties and there are no covenants, conditions, representations,
or agreements, oral or written, or any nature whatsoever, other than those herein continued.

 

14. Amendments.
No amendment, alteration, or modification of this Agreement shall be binding upon the parties hereto unless said amendment, alteration,
or modification is in writing and signed by all parties.

 

15. Waiver.
The waiver of any term, condition, clause, or provision of this Agreement shall in no way be deemed or considered a waiver of any
other term, condition, clause, or provision of this Agreement.

 

16. Severability.
If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining
provisions shall remain in effect and be so construed as to effectuate the intent and purpose of this Agreement.

 

17. Notices.
All notices, demands, and other communications to be given or delivered under or by reason of the provisions of this Agreement
shall be in writing and shall be deemed to have been given (a) when personally delivered or sent by electronic mail (with
hard copy to follow); (b) one (1) day after being sent by reputable overnight express courier (charges prepaid); or (c) five
(5) days following mailing by certified or registered mail, postage prepaid and return receipt requested. Unless another address
is specified in writing, notices, demands, and communications to the parties shall be sent to the addresses indicated below:

 

    	 	www.zonedproperties.com
 877-360-8839	3

    
		14269 N. 87th Street #205
 Scottsdale, AZ 85260

    

 

	 	If to the Company:	 	Zoned Properties, Inc.
	 		 	14269 N. 87th Street #205.
	 		 	Scottsdale, AZ 85260
	 	 	 	 
	 	And, if to Employee:	 	Bryan McLaren
	 	 	 	14269 N. 87th Street #205.
	 	 	 	Scottsdale, AZ 85260

 

18. Additional
Documents. The parties hereto agree to execute any and all additional papers and documents reasonably necessary or appropriate
to effectuate the terms of this Agreement.

 

19. Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the state of Arizona without regard to conflicts
of laws principles thereof and all questions concerning the validity and construction hereof shall be determined in accordance
with the laws of said state.

 

20. Dispute
Resolution Process. This Section 20 shall govern any dispute, controversy, or claim related to, connected with, or arising
out of this Agreement, including any question regarding its existence, validity, or termination, as well as any challenge to the
tribunal’s jurisdiction. If such a dispute arises, and if the dispute cannot be settled through direct discussions, the parties
agree to endeavor first to settle the dispute by mediation upon terms agreed upon by the parties. If the parties cannot agree on
mediation terms, then the mediation shall be administered by the American Arbitration Association under its Commercial Mediation
Procedures before resorting to arbitration. If a party fails to respond to a written request for mediation within 30 days after
service or fails to participate in any scheduled mediation conference, that party shall be deemed to have waived its right to mediate
the issues in dispute. If the mediation does not result in settlement of the dispute within 30 days after the initial mediation
conference, or if a party has waived its right to mediate any issues in dispute, then any unresolved controversy or claim arising
out of or relating to this contract, or breach thereof, shall be settled by arbitration administered by the American Arbitration
Association in accordance with its Commercial Arbitration Rules, except as may be otherwise provided herein, and judgment on the
award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

 

Except
as otherwise specifically limited in this Agreement, the arbitral tribunal shall have the power to grant any remedy or relief that
it deems appropriate, whether provisional or final, including conservatory relief and injunctive relief, and any such measures
ordered by the arbitral tribunal may, to the extent permitted by applicable law, be deemed to be a final award on the subject matter
of the measures and shall be enforceable as such.”

 

Claims
shall be heard by a single arbitrator. If the parties are unable to agree upon the selection of an arbitrator, the arbitrator shall
be selected in accordance with the American Arbitration Association rules. The place of arbitration shall be Maricopa County, Arizona.
The arbitration shall be governed by the laws of the State of Arizona. Hearings will take place pursuant to the standard procedures
of the Commercial Arbitration Rules that contemplate in person hearings. The successful party shall be awarded the cost of the
arbitration proceeding and any proceeding in court to confirm or to vacate any arbitration award, as applicable (including, without
limitation, reasonable attorneys’ fees and costs), as determined by the arbitrators. It is specifically understood and agreed
that any party may enforce any award rendered pursuant to the arbitration provisions of this Section 20 by bringing suit in any
court of competent jurisdiction. The parties agree that the arbitrator shall have authority to grant injunctive or other forms
of equitable relief to any party. This Section 20 shall survive the termination or cancellation of this Agreement. Except as may
be required by law, neither a party nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder
without the prior written consent of both parties. The parties agree that failure or refusal of a party to pay its required share
of the deposits for arbitrator compensation or administrative charges shall constitute a waiver by that party to present evidence
or cross-examine witness. In such event, the other party shall be required to present evidence and legal argument as the arbitrator(s)
may require for the making of an award. Such waiver shall not allow for a default judgment against the non-paying party in the
absence of evidence presented as provided for above.

 

    	 	www.zonedproperties.com
 877-360-8839	4

    
		14269 N. 87th Street #205
 Scottsdale, AZ 85260

    

 

21.
Attorneys’ Fees and Costs If any action is brought to enforce this Agreement or to collect damages as a result of
a breach of any of its provisions, the prevailing party shall also be entitled to collect its reasonable attorneys’ fees
and costs incurred in such action from the non-prevailing party, which costs can include the reasonable costs of investigation,
expert witnesses and the costs in enforcing or collecting any judgment rendered, all as determined and awarded by the court.

 

22. Counterparts.
This Agreement may be executed in two counterparts, each of which shall be deemed an original but both of which together shall
constitute one and the same agreement.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement under seal the day and year first above written.

 

	Employer:	 	Employee:
	 	 	 
	Zoned
    Properties, Inc.	 	 
	 	 	 	 
	By	/s/
    Bryan McLaren	 	/s/
    Bryan McLaren
	 	Bryan McLaren	 	Bryan McLaren
	 	Chairman of the
    Board	 	Chief Executive
    Officer

 

    	 	www.zonedproperties.com
 877-360-8839	5

    
		14269 N. 87th Street #205
 Scottsdale, AZ 85260

    

 

EXHIBIT A

 

Golden Parachute Agreement

 

This
Golden Parachute Agreement (the “Agreement”) is entered into as of even date of the date of that certain Employment
Agreement by and between Zoned Properties, Inc., a Nevada corporation (the “Company”) and Bryan McLaren (“Employee”),
the Chief Executive Officer of the Company. This Agreement is being entered into contemporaneously with the entry by the parties
into that certain Employment Agreement of the Company (the “Employment Agreement”) of even date hereof (the
“Effective Date”) to which Employment Agreement this Agreement is attached as Exhibit A. Accordingly, any capitalized
words or phrases contained herein this Agreement that are not independently defined herein shall be ascribed their meanings under
the Employment Agreement.

 

Recitals

 

WHEREAS,
the Company considers it essential to the best interests of its shareholders to foster the continuous employment of key management
personnel. The Board recognizes that, as is the case with many publicly held corporations, the possibility of a change in control
may exist and that such possibility, and the uncertainty and questions which it may raise among management, could result in the
departure or distraction of management personnel to the detriment of the Company and its shareholders; and

 

WHEREAS,
the Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication
of members of the Company’s management, including Employee, to their assigned duties without distraction in the face of potentially
disturbing circumstances arising from the possibility of a change in control of the Company; and

 

WHEREAS,
in order to induce Employee to remain in the employ of the Company and in consideration of Employee’s agreement set forth
below, the Company agrees that Employee shall receive the severance benefits set forth in this Agreement in the event employment
with the Company is terminated subsequent to a “change in control of the Company” (as defined in Section 2 below) under
the circumstances described below. This Agreement is meant to constitute an integral part of the Employment Agreement provided,
however, that as to any provision contained in this Agreement which conflicts with any provision of the Employment Agreement, the
provision of this Agreement shall control.

 

NOW
THEREFORE, in consideration of Employee’s continued employment under the Employment Agreement and the parties’
and the other good and valuable consideration exchanged thereunder, the parties agree as follows:

 

1. Term of Agreement.
This Agreement shall commence on Effective Date and shall continue in effect through the Expiration Date, provided, however,
that if a change in control (as defined herein) of the Company shall have occurred during the Term, this Agreement shall continue
in effect for a period of 12 months beyond the month in which such change in control occurred. Notwithstanding the foregoing, and
provided no change of control shall have occurred, this Agreement shall automatically terminate upon the Expiration Date.

 

    	 	www.zonedproperties.com
 877-360-8839	6

    
		14269 N. 87th Street #205
 Scottsdale, AZ 85260

    

 

2. Change in Control.
No benefits shall be payable under this Agreement unless there shall have been a change in control of the Company, as set forth
below. For purposes of this Agreement, a “change in control of the Company” shall mean a change of control of a nature
that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), whether or not the Company is in fact required to comply
with that regulation, provided that, without limitation, such a change in control shall be deemed to have occurred if (A) any “person”
(as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or a corporation owned, directly or indirectly, by the shareholders of the Company
in substantially the same proportions as their ownership of stock of the Company, is or becomes the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than
50% of the combined voting power of the Company’s then outstanding securities; or (B) during any period of two consecutive
years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute
the Board and any new director (other than a director designated by a person who has entered into an agreement with the Company
to effect a transaction described in clauses (A) or (D) of this Section) whose election by the Board or nomination for election
by the Company’s shareholder’s was approved by a vote of at least two-thirds of the directors then still in office
who either were directors at the beginning of the period or whose election or nomination for election was previously so approved,
cease for any reason to constitute a majority; (C) the Company enters into an agreement, the consummation of which would result
in the occurrence of a change in control of the Company; or (D) the shareholders of the Company approve a merger or consolidation
of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of
the Company outstanding immediately prior to it continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) of more than 50% of the combined voting power of the voting securities of the Company
or such surviving entity outstanding immediately after such merger or consolidation, or the shareholders of the Company approve
a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially
all the Company’s assets.

 

3. Termination Following
Change in Control. If any of the events described in Section 2 above constituting a change in control of the Company shall
have occurred, Employee shall be entitled to the benefits provided in Subsection 4(iii) below upon the subsequent termination of
employment during the term of this Agreement:

 

(i).
Disability. If, as a result of Employee’s incapacity due to physical or mental illness, Employee shall have been absent from
the full-time performance of duties with the Company for six (6) consecutive months, and within 30 days after written notice of
termination is given Employee shall not have returned to the full-time performance of duties, Employee’s employment may be
terminated for “Disability” and subject to Section 4 below.

 

(ii).
Cause. Termination by the Company of Employee’s employment for “Cause” shall mean termination upon (a) the willful
and continued failure to substantially perform duties with the Company after a written demand for substantial performance is delivered
by the Board, which demand specifically identifies the manner in which the Board believes that duties have not substantially been
performed, or (b) the willful engaging in conduct which is demonstrably and materially injurious to the Company, monetarily or
otherwise. For purposes of this Subsection, no act, or failure to act, on Employee’s part shall be deemed “willful”
unless done, or ignored, by Employee not in good faith and without reasonable belief that action or omission was in the best interest
of the Company. Notwithstanding the foregoing, Employee shall not be deemed to have been terminated for Cause unless and until
there shall have been delivered a copy of a resolution duly adopted by the affirmative and unanimous vote of the entire membership
of the Board (deemed to not include Employee should he be a member of the Board as of such time) at a meeting of the Board called
and held for such purpose (after reasonable notice and an opportunity to be heard by the Board), finding that in the good faith
opinion of the Board Employee was culpable of the misconduct or omission set forth above in clauses (a) or (b) of this Subsection
and specifying the particulars in detail.

 

    	 	www.zonedproperties.com
 877-360-8839	7

    
		14269 N. 87th Street #205
 Scottsdale, AZ 85260

    

 

(iii).
Good Reason. Employee shall solely be entitled to terminate employment for Good Reason. For purposes of this Agreement, “Good
Reason” shall mean, without express written consent, the occurrence after a change in control of the Company of any of the
following circumstances unless, such circumstances are fully corrected prior to the Date of Termination specified in the Notice
of Termination, as defined in Subsections 3(v) and 3(iv), respectively, given in respect of them:

 

(A)
a material diminution in Employee’s authority, duties or responsibility from those in effect immediately prior to
the change in control of the Company;

 

(B) a
material diminution in Employee’s base compensation;

 

(C) a
material change in the geographic location at which Employee performs Employee’s duties, provided, always that a material
change shall be deemed include a change in geographic location at which Employee performs Employee’s duties as of the date
of change in control of the Company by more than 25 miles

 

(D) a
material diminution in the authority, duties, or responsibilities of the supervisor to whom Employee is required to report, including
a requirement that Employee report to a corporate officer or employee instead of reporting directly to the Board

.

(E) A
material diminution in the budget over which Employee retain authority.

 

(F)
 a material breach under any agreement with the Company to continue in effect any bonus
to which Employee was entitled, or any compensation plan in which Employee participates immediately prior to the change in control
of the Company which is material to Employee’s total compensation, including but not limited to any stock option or 401(k)
plans or any substitute plans adopted prior to the change of control in the Company, unless an equitable arrangement (embodied
in an ongoing substitute or alternative plan) has been made with respect to such plan, or the failure by the Company to continue
Employee’s participation in it (or in such substitute or alternative plan) on a basis not materially less favorable, both
in terms of the amount of benefits provided and the level of Employee’s participation relative to other participants, as
existed at the time of the change in control;

 

(G)
 a material breach under any agreement with the Company to provide Employee benefits substantially
similar to those enjoyed by Employee under any of the Company’s life insurance, medical, health and accident, or disability
plans in which Employee was participating at the time of the change in control of the Company, the failure to continue to provide
Employee with a Corporation automobile or allowance in lieu of it, if Employee was provided with such an automobile or allowance
in lieu of it at the time of the change of control of the Company, the taking of any action by the Company which would directly
or indirectly materially reduce any of such benefits or deprive Employee of any material fringe benefit enjoyed by Employee at
the time of the change in control of the Company, or the failure by the Company to provide Employee with the number of paid vacation
days to which Employee is entitled on the basis of years of service with the Company in accordance with the Company’s normal
vacation policy in effect at the time of the change in control of the Company;

 

Employee’s
rights to terminate employment pursuant to this Subsection shall not be affected by incapacity due to physical or mental illness.
Employee’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any circumstance
constituting Good Reason under this Agreement; provided always, however, that Employee must nonetheless provide the
Company written notice of the existence of act, omission or condition constituting “Good Reason” as set forth in this
Subsection 3(iii) hereof within ninety (90) days of the act, omission or condition. The Company shall have the opportunity to cure
such act, omission or condition by the date that is thirty (30) days after Employee’s provision of such notice. In all events,
Employee’s termination must occur within twelve (12) months of the act, omission or condition constituting Good Reason. In
the event Employee delivers Notice of Termination based upon circumstances set forth in this Section 3(iii) above which are fully
corrected prior to the Date of Termination set forth in Employee’s Notice of Termination, such Notice of Termination shall
be deemed withdrawn and of no further force or effect.

 

    	 	www.zonedproperties.com
 877-360-8839	8

    
		14269 N. 87th Street #205
 Scottsdale, AZ 85260

    

 

(iv).
Notice of Termination. Any purported termination of Employee’s employment by the Company or by Employee shall be communicated
by written Notice of Termination to the other party hereto in accordance with Section 6 of this Agreement. For purposes of this
Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in
this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination of Employee’s employment under the provision so indicated.

 

(v).
Date of Termination. “Date of Termination” shall mean (a) if Employee’s employment is terminated for Disability,
30 days after Notice of Termination is given (provided that Employee shall not have returned to the full-time performance of Employee’s
duties during such 30-day period), and (b) if Employee’s employment is terminated pursuant to Subsection (ii) or (iii) above
or for any other reason (other than Disability), the date specified in the Notice of Termination (which, in the case of a termination
pursuant to Subsection (ii) above shall not be less than 30 days, and in the case of a termination pursuant to Subsection (iii)
above shall not be less than 30 days, respectively, from the date such Notice of Termination is given); provided that if within
30 days after any Notice of Termination is given, or, if later, prior to the Date of Termination (as determined without regard
to this provision), the party receiving such Notice of Termination notifies the other party that a dispute exists concerning the
termination, the Date of Termination shall be the date on which the dispute is finally determined, either by mutual written agreement
of the parties, by a binding arbitration award, or by a final judgment, order or decree of a court of competent jurisdiction (which
is not appealable or with respect to which the time for appeal has expired and no appeal has been perfected); provided further
that the Date of Termination shall be extended by a notice of dispute only if such notice is given in good faith and the party
giving such notice pursues the resolution of such dispute with reasonable diligence. Notwithstanding the pendency of any such dispute,
the Company will continue to pay Employee his full compensation in effect when the notice giving rise to the dispute was given
(including, but not limited to, base salary) and continue as a participant in all compensation, benefit and insurance plans in
which Employee was participating when the notice giving rise to the dispute was given, until the dispute is finally resolved in
accordance with this Subsection. Amounts paid under this Subsection are in addition to all other amounts due under this Agreement
and shall not be offset against or reduce any other amounts due under this Agreement except to the extent otherwise provided in
subsection 4(iv).

 

4. Compensation Upon
Termination or During Disability. Following a change in control of the Company, as defined by Section 2, upon termination of
employment or during a period of Disability Employee shall be entitled to the following benefits:

 

(i).
During any period that Employee fails to perform his full-time duties with the Company as a result of incapacity due to physical
or mental illness, Employee shall continue to receive his base salary at the rate in effect at the commencement of any such period,
together with all amounts payable to Employee under any compensation plan of the Company during such period, until this Agreement
is terminated pursuant to Section 3(i) above. Thereafter, or in the event Employee’s employment shall be terminated by reason
of Employee’s death, Employee’s benefits shall be determined under the Company’s retirement, insurance and other
compensation programs then in effect in accordance with the terms of such programs.

 

    	 	www.zonedproperties.com
 877-360-8839	9

    
		14269 N. 87th Street #205
 Scottsdale, AZ 85260

    

 

(ii).
If Employee’s employment shall be terminated by the Company for Cause or by Employee other than for Good Reason, Disability,
Death or Retirement, the Company shall pay Employee Employee’s full base salary through the Date of Termination at the rate
in effect at the time Notice of Termination is given, plus all other amounts and benefits to which Employee is entitled under any
compensation plan of the Company at the time such payments are due, and the Company shall have no further obligations to Employee
under this Agreement.

 

(iii).
If employment by the Company shall be terminated (a) by the Company other than for Cause, Death or Disability or (b) by Employee
for Good Reason, Employee shall be entitled to benefits provided below:

 

(A).
The Company shall pay Employee Employee’s full base salary through the Date of Termination at the rate in effect at the time
Notice of Termination is given, plus all other amounts and benefits to which Employee is entitled under any compensation plan of
the Company.

 

(B).
In lieu of any further salary payments to Employee for periods subsequent to the Date of Termination, the Company shall pay as
severance pay to Employee a lump sum severance payment (together with the payments provided in paragraphs C and D, below, the “Severance
Payments”) equal to five (5) times the sum of Employee’s annual base salary in effect immediately prior to the
occurrence of the circumstance giving rise to the Notice of Termination given in respect of them.

 

(C).
The Company shall pay to Employee any deferred compensation, including, but not limited to deferred bonuses, allocated or credited
to Employee or Employee’s account as of the Date of Termination.

 

(D).
In lieu of shares of common stock of the Company (the “Company’s Shares”) issuable upon exercise of outstanding
options (“Options”), if any, granted to Employee under the Company’s Stock Option Plans (which Options
shall be cancelled upon the making of the payment referred to below) Employee shall receive an amount in cash equal to the product
of (i) the excess of the closing price of the Company’s Shares as reported on or nearest the Date of Termination (or, if
not so reported, on the basis of the average of the lowest asked and highest bid prices on or nearest the Date of Termination),
over the per share exercise price of each Option held by Employee (whether or not then fully exercisable) plus the amount of any
applicable cash appreciation rights, times (ii) the number of the Company’s Shares covered by each such Option.

 

(E).
The Company shall also pay to Employee all legal fees and expenses incurred by Employee as a result of such termination including
all such fees and expenses incurred by Employee as a result of such termination (including all such fees and expenses, if any,
incurred in contesting or disputing any such termination or in seeking to obtain or enforce any right or benefit provided by this
Agreement or in connection with any tax audit or proceeding to the extent attributable to the application of Section 4999 of the
Internal Revenue Code of 1986, as amended (the “Code”) to any payment or benefit provided under this Agreement).

 

(F).
The payments provided for in paragraphs (B), (C), and (D) above, shall be made no later than the fifth day following the Date of
Termination, provided, however, that if the amounts of such payments cannot be finally determined on or before such day, the Company
shall pay to Employee on such day an estimate, as determined in good faith by the Company, of the minimum amount of such payments
and shall pay the remainder of such payments (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code)
as soon as the amount can be determined but in no event later than the 30th day after the Date of Termination. In the event that
the amount of the estimated payments exceeds the amount subsequently determined to have been due, such excess shall constitute
a loan by the Company to Employee payable on the fifth day after demand by the Company (together with interest at the rate provided
in Section 1274(b)(2)(B) of the Code).

 

    	 	www.zonedproperties.com
 877-360-8839	10

    
		14269 N. 87th Street #205
 Scottsdale, AZ 85260

    

 

(iv).
In the event that Employee is a “disqualified individual” within the meaning of Section 280G of the Code, the parties
expressly agree that the payments described in this Section 4 and all other payments to Employee under any other agreements or
arrangements with any persons which constitute “parachute payments” within the meaning of Section 280G of the Code
are collectively subject to an overall maximum limit. Such maximum limit shall be $1 less than the aggregate amount which would
otherwise cause any such payments to be considered a “parachute payment” within the meaning of Section 280G of the
Code, as determined by the Company. Accordingly, to the extent that such payments would be considered a “parachute payment”
with respect to Employee, then the portions of such payments shall be reduced or eliminated in the following order until the remaining
change of control termination payments with respect to Employee is within the maximum described in this subsection (iv):

 

(A)
First, any cash payment to Employee;

 

(B)
Second, any change of control termination payments not described herein; and

 

(C)
Third, any forgiveness of indebtedness of Employee’s to the Company.

 

(v).
Employee shall not be required to mitigate the amount of any payment provided for in this Section 4 by seeking other employment
or otherwise, nor shall the amount of any payment or benefit provided for in this Section 4 be reduced by any compensation earned
by Employee as the result of employment by another employer, by retirement benefits, by offset against any amount claimed to be
owed by Employee to the Company, or otherwise except as specifically provided in this Section 4.

 

(vi).
In addition to all other amounts payable to Employee under this Section 4, Employee shall be entitled to receive all benefits payable
to Employee under any Company 401(k) plan and any other plan or agreement relating to retirement benefits.

 

5. Successors; Binding
Agreement.

 

(i).
The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Failure of
the Company to obtain such assumption and agreement prior to the effectiveness of any such succession shall be a breach of this
Agreement and shall entitle Employee to compensation from the Company in the same amount and on the same terms as Employee would
be entitled to under this Agreement if Employee terminates Employee’s employment for Good Reason following a change in control
of the Company, except that for purposes of implementing the foregoing, the date on which any such succession becomes effective
shall be deemed the Date of Termination. As used in this Agreement, “Corporation” shall mean the Company as defined
above and any successor to its business and/or assets as which assumes and agrees to perform this Agreement by operation of law,
or otherwise.

 

(ii).
This Agreement shall inure to the benefit of and be enforceable by Employee’s personal or legal representatives, executors,
administrators, heirs, distributes, and legatees. If Employee should die while any amount would still be payable to Employee if
Employee had continued to live, all such amounts, unless otherwise provided in this Agreement, shall be paid in accordance with
the terms of this Agreement to Employee’s beneficiary or other designee or, if there is no such designee, to Employee’s
estate.

 

    	 	www.zonedproperties.com
 877-360-8839	11

    
		14269 N. 87th Street #205
 Scottsdale, AZ 85260

    

 

6. Notice. For the
purpose of this Agreement, all notices and other communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States registered or certified mail, return receipt requested,
postage prepaid, addressed to the respective addresses set forth on the first page of this Agreement, provided that all notices
to the Company shall be directed to the attention of the Board with a copy to the Secretary of the Company, or to such other address
as either party may have furnished to the other in writing in accordance with this Agreement, except that notice of change of address
shall be effective only upon receipt.

 

7. Miscellaneous.
No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by Employee and such officer as may be specifically designated by the Board. No waiver by either party to
this Agreement at any time of any breach by the other party of, or compliance with, any condition or provision of this Agreement
to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject
matter of this Agreement have been made by either party which are not expressly set forth in this Agreement. The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of the State of Arizona. All references to sections
of the Exchange Act or the Code shall be deemed also to refer to any successor provisions to such sections. Any payments provided
for shall be paid net of any applicable withholding or deduction required under federal, state or local law. The obligations of
the Company under Section 4 shall survive the expiration of the term of this Agreement.

 

8. Validity. The
invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

 

9. Entire Agreement.
This Agreement sets forth the entire understanding of the parties with respect to its subject matter and supersedes all prior written
or oral agreements or understandings with respect to such subject matter.

 

10. Governing Law. This Agreement
shall be governed by and construed in accordance with the laws of the state of Arizona without regard to conflicts of laws principles
thereof and all questions concerning the validity and construction hereof shall be determined in accordance with the laws of said
state.

 

11. Dispute
Resolution Process. This Section 11 shall govern any dispute, controversy, or claim related to, connected with, or arising
out of this Agreement, including any question regarding its existence, validity, or termination, as well as any challenge to the
tribunal’s jurisdiction. If such a dispute arises, and if the dispute cannot be settled through direct discussions, the parties
agree to endeavor first to settle the dispute by mediation upon terms agreed upon by the parties. If the parties cannot agree on
mediation terms, then the mediation shall be administered by the American Arbitration Association under its Commercial Mediation
Procedures before resorting to arbitration. If a party fails to respond to a written request for mediation within 30 days after
service or fails to participate in any scheduled mediation conference, that party shall be deemed to have waived its right to mediate
the issues in dispute. If the mediation does not result in settlement of the dispute within 30 days after the initial mediation
conference, or if a party has waived its right to mediate any issues in dispute, then any unresolved controversy or claim arising
out of or relating to this contract, or breach thereof, shall be settled by arbitration administered by the American Arbitration
Association in accordance with its Commercial Arbitration Rules, except as may be otherwise provided herein, and judgment on the
award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. Except as otherwise specifically limited
in this Agreement, the arbitral tribunal shall have the power to grant any remedy or relief that it deems appropriate, whether
provisional or final, including conservatory relief and injunctive relief, and any such measures ordered by the arbitral tribunal
may, to the extent permitted by applicable law, be deemed to be a final award on the subject matter of the measures and shall be
enforceable as such.” 

 

    	 	www.zonedproperties.com
 877-360-8839	12

    
		14269 N. 87th Street #205
 Scottsdale, AZ 85260

    

 

Claims shall be heard by
a single arbitrator. If the parties are unable to agree upon the selection of an arbitrator, the arbitrator shall be selected in
accordance with the American Arbitration Association rules. The place of arbitration shall be Maricopa County, Arizona. The arbitration
shall be governed by the laws of the State of Arizona. Hearings will take place pursuant to the standard procedures of the Commercial
Arbitration Rules that contemplate in person hearings. The successful party shall be awarded the cost of the arbitration proceeding
and any proceeding in court to confirm or to vacate any arbitration award, as applicable (including, without limitation, reasonable
attorneys’ fees and costs), as determined by the arbitrators. It is specifically understood and agreed that any party may
enforce any award rendered pursuant to the arbitration provisions of this Section 11 by bringing suit in any court of competent
jurisdiction. The parties agree that the arbitrator shall have authority to grant injunctive or other forms of equitable relief
to any party. This Section 11 shall survive the termination or cancellation of this Agreement. Except as may be required by law,
neither a party nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder without the prior
written consent of both parties. The parties agree that failure or refusal of a party to pay its required share of the deposits
for arbitrator compensation or administrative charges shall constitute a waiver by that party to present evidence or cross-examine
witness. In such event, the other party shall be required to present evidence and legal argument as the arbitrator(s) may require
for the making of an award. Such waiver shall not allow for a default judgment against the non-paying party in the absence of evidence
presented as provided for above.

 

12. Attorneys’
Fees and Costs. If any action is brought to enforce this Agreement or to collect
damages as a result of a breach of any of its provisions, the prevailing party shall also be entitled to collect its reasonable
attorneys’ fees and costs incurred in such action from the non-prevailing party, which costs can include the reasonable costs
of investigation, expert witnesses and the costs in enforcing or collecting any judgment rendered, all as determined and awarded
by the court.

 

13. Counterparts. This Agreement
may be executed in two counterparts, each of which shall be deemed an original but both of which together shall constitute one
and the same agreement.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement under seal the day and year first above written.

 

	Employer:	 	Employee:
	 	 	 
	Zoned Properties, Inc.	 	 
	 	 	 	 
	By 	 	 	 
	 	Bryan McLaren	 	Bryan McLaren
	 	Chairman of the Board	 	Chief Executive Officer

 

    	 	www.zonedproperties.com
 877-360-8839	13

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