Document:

Exhibit 10.1

EMPLOYMENT
AGREEMENT

THIS
AGREEMENT (“Agreement”), dated as of ___________ __ 2006,
between J&L America, Inc. (DBA as J&L Industrial Supply), a
Michigan corporation (the “Company”), and Michael Wessner (the “Executive”).

W I T N
E S S E T H

WHEREAS,
MSC Acquisition Corp. VI (“Buyer”) has agreed to acquire (the “Acquisition”)
all of the outstanding stock of the Company, of which the Executive is an
employee, pursuant to a certain Stock Purchase Agreement dated March __,
2006 between MSC Industrial Direct Co., Inc. (“MSC”), Buyer, JLK Direct
Distribution, Inc. and Kennametal Inc. (“Kennametal”); and

WHEREAS,
the Company desires to employ the Executive, and the Executive desires to
accept such employment, on and subject to the occurrence of the “Effective Date”
as defined below and on the terms and conditions set forth herein.

NOW,
THEREFORE, in consideration of the mutual promises,
representations and warranties set forth herein, and for other good and
valuable consideration, it is hereby agreed as follows:

1.             Employment.
Effective as of and contingent upon the consummation of the Acquisition,
the Company hereby agrees to employ the Executive, and the Executive hereby
accepts such employment, upon the terms and conditions set forth herein. The
date of consummation of the Acquisition and accordingly the Effective Date of
Executive’s employment with the Company hereunder shall hereinafter be referred
to as the “Effective Date.”  Concurrently
with the Executive’s execution of this Agreement, the Executive has executed
the Associate Confidentiality, Non-Solicitation and Non-Competition Agreement,
attached as Exhibit B hereto (the “Confidentiality Agreement”).

2.             Term. Subject
to the provisions of Section 8 hereof, the period of the Executive’s
employment under this Agreement shall be from the Effective Date through the
one year anniversary of the Effective Date, unless sooner terminated by the
Company or upon the voluntary resignation of the Executive (the “Term”). Unless
the parties otherwise agree in writing, continuation of the Executive’s
employment with the Company beyond the expiration of the Term shall be deemed
an employment at will and Executive’s employment may thereafter be terminated
at will by Executive or the Company, provided, however, that Section 9 and
the Confidentiality Agreement shall survive expiration of the Term and
termination of the Executive’s employment.

 

 

3.             Position and Duties.

(a)           During
the first twelve months of the Term, the Executive shall serve as the President
of the Company and shall have such responsibilities and duties, consistent with
the Executive’s responsibilities and duties to the Company prior to the
Effective Date, as from time to time may be prescribed by the President and/or
the Board of Directors of the Company. In connection with the future
integration of the Company and MSC, after the first twelve months of the Term,
Executive’s title may be changed, in consultation with the Executive, to
reflect the coordination of MSC’s and the Company’s respective title structures,
provided, however, that the Executive’s duties shall not be materially
diminished as a result of such change in title.

(b)           Subject to Section 3(a), during
the Term, the Executive shall perform and discharge the duties that may be
assigned to him from time to time by the President of the Company, and the
Executive shall devote his best talents, efforts and abilities to the
performance of his duties hereunder.

(c)           During the Term, the Executive shall
perform such duties on a full-time basis and the Executive shall have no
other employment and no other outside business activities whatsoever; provided, however,
that the Executive shall not be precluded from making passive investments which
do not require the Executive’s devotion of any significant time or effort.

4.             Compensation.
(a)  For the Executive’s services hereunder, during the Term, the
Company shall pay the Executive salary (the “Base Salary”) at an annual rate of
$365,000, payable and earned at a bi-weekly rate of $14,038.46 in accordance
with the customary payroll practices of the Company and MSC.

(b)          Subject to Sections 8 and 9, following
completion of 12 months of employment with the Company and subject to the terms
of the Company’s integration bonus program and in consultation with the Executive,
Executive shall be eligible to receive an integration bonus (the “Integration
Bonus”) currently targeted to be $500,000 (the “Target Bonus”). The actual
amount of the Integration Bonus payable to Executive shall be no less than 30%
less than, and no more than 30% greater than, the Target Bonus; and shall be
determined by the MSC Compensation Committee in its discretion taking into
account the Executive’s performance and based on mutually agreed goals and
objectives between the Company and the Executive. Any such Integration Bonus
shall be paid to Executive on the 13 month anniversary of the Effective Date,
provided that the Executive is an employee of the Company on the 12 month
anniversary of the Effective Date.

5.             Other Benefits. During the Term,  as an employee of the Company, then a
subsidiary of MSC, the Executive shall be entitled to participate in MSC
benefits programs and plans in accordance with the terms of such programs and
plans which include major medical and dental insurance, the MSC Industrial
Direct Co., Inc. 401(k) Plan (the “401(k) Plan”) and tuition
reimbursement. The Executive shall be credited with service with the Company
and its affiliates 

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prior
to the Effective Date for purposes of vesting and eligibility, including
eligibility and vesting under the 401(k) Plan to the extent such service
was credited for such purposes under Kennametal’s 401(k) Plan and in the
determination of vacation.

6.             Automobile Allowance. During the Term, the Company shall
pay the Executive $1,200 per month for expenses such as lease, registration,
insurance, repairs, maintenance, license fees, parking, gasoline and oil
incurred by the Executive incident to his use of such automobile in connection
with his duties hereunder.

7.             Reimbursement
of Expenses. During the Term,
the Company shall pay or reimburse the Executive for all reasonable travel,
entertainment and other business expenses actually incurred or paid by the
Executive in the performance of his duties hereunder upon presentation of
expense statements and/or such other supporting information as the Company may
reasonably require of the Executive and in accordance with and subject to the
Company’s and MSC’s general procedures and policies.

8.             Termination.

(a)           The Company shall have the right to
terminate the Executive’s employment at any time, with or without Cause, prior
to the expiration of the Term.

(b)           For purposes of this Agreement, “Cause”
means (i) commission by the Executive of any act or omission that would
constitute a felony or any crime of moral turpitude under Federal law or the
law of the state or foreign law in which such action occurred; (ii) dishonesty,
disloyalty, fraud, embezzlement, theft, disclosure of trade secrets or
confidential information or other acts or omissions that result in a breach of
fiduciary duty to the Company; (iii) continued reporting to work or
working under the influence of alcohol, an illegal drug, an intoxicant or a
controlled substance which renders Executive incapable of performing his or her
material duties to the satisfaction of the Company or (iv) breach of this
Agreement or the Confidentiality Agreement.

(c)           For purposes of this Agreement, “Termination
Date” is the date as of which the Executive incurs a termination of employment
with the Company that constitutes “separation of service” within the meaning of
Section 409A of the Internal Revenue Code of 1986, as amended. Any notice
of termination of the Executive’s employment given by the Executive or the
Company pursuant to the provisions of this Agreement shall specify the
Termination Date.

9.             Obligations of Company on Termination. Notwithstanding
anything in this Agreement to the contrary, the Company’s obligations on
termination of the Executive’s employment shall be as described in this Section 9.

(a)           Obligations of the Company in the
Case of Termination by the Company Without Cause. In the event that prior
to the expiration of the Term, the Company terminates the Executive’s
employment other than for Cause, the Company shall provide the Executive with
the following:

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(i)            Amount of Severance Payment. Subject
to Sections 9(c) and 9(d) below, in addition to any Base Salary and
unreimbursed expenses accrued but unpaid as of the Termination Date (which
shall be paid in accordance with the customary payroll practices of the
Company, the Company shall pay the Executive (the “Severance Payment”) the
following:

(A)          the Base Salary otherwise payable to
the Executive during the period beginning on the six-month anniversary of the
Termination Date (the “Payment Date”) and continuing through the then remaining
duration of the Term, if any, payable in substantially equal biweekly
installments in accordance with the customary payroll practices of the Company;

(B)           the Base Salary that would have been
paid to the Executive during the period beginning on the Termination Date
through the day prior to the Payment Date, payable in a single lump sum payment
on the Payment Date;

(C)           any vacation pay accrued but unpaid
as of the Termination Date, payable in a single lump sum payment on the Payment
Date; and

(D)           any Integration Bonus that would
otherwise have been payable to the Executive, payable in a single lump sum on
the 13 month anniversary of the Effective Date.

(ii)           Continued Medical Coverage. In
the event that the Executive timely elects under the provision of COBRA to
continue his or her coverage in effect prior to the Termination Date under a
group health plan sponsored by  the
Company or MSC, the Executive will be entitled to continuation of such
coverage, at the Company’s expense, for the then remaining duration of the Term.
Notwithstanding the foregoing, nothing in Section 9(a)(ii) shall
prohibit the Executive from continuing his or her group health coverage for the
remainder of the period during which he or she is entitled to COBRA
continuation coverage, if any, at the Executive’s sole expense.

(iii)          Automobile Allowance.  For the otherwise remaining duration of the
Term, the Company shall pay the Executive for automobile related expenses as
follows:

(A)          $1,200 multiplied by the number of
full calendar months beginning after the Termination Date but prior to the
Payment Date, representing the automobile allowance otherwise payable to the
Executive for the period beginning on the Termination Date and ending on the
day prior to the Payment Date, payable in a single lump sum payment on the
Payment Date; and

(B)           $1,200 per month, payable on the
[first/last] business day of each month occurring on or after the Payment Date
through the then remaining duration of the Term, if any.

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(iv)          Completion
Bonus. On the one-year anniversary of the Termination Date, the Company
shall pay the Executive a lump sum completion bonus of $250,000, provided that
all of the following conditions (A) through (D) are met:

(A)          The Executive remains employed by the
Company for the full 12 month Term of this Agreement; and

(B)           The Executive continues in employment
with the Company following the expiration of the Term; and

(C)           The Executive’s employment with the
Company is terminated by the Company without Cause during the 12-month
period immediately following the expiration of the Term; and

(D)          The Company and MSC determine,
in their sole discretion, that the Executive did not breach any provision of
the Confidentiality Agreement.

(b)           Obligations of the Company in case
of Termination for Death, Disability, Cause or Voluntary Resignation by
Executive.

(i)            Upon termination of the Executive’s
employment for death, disability or for Cause or Executive’s voluntary
resignation, the Company shall have no payment or other obligations hereunder
to the Executive, except for the payment of any Base Salary, benefits or
unreimbursed expenses accrued but unpaid as of the date of such termination
and, in the event of the Executive’s voluntary resignation following the Company’s
uncured material diminution of his duties, any completion bonus payable in
accordance with Section 9(b)(ii) below.

(ii)           Completion
Bonus. On the one-year anniversary of the Termination Date, the Company
shall pay the Executive a lump sum completion bonus of $250,000, provided that
all of the following conditions (A) through (D) are met:

(A)          The Executive remains employed by the
Company for the full 12 month Term of this Agreement; and

(B)           The Executive continues in employment
with the Company following the expiration of the Term; and

(C)           The Executive voluntarily resigns
from his employment with the Company during the 12-month period
immediately following the expiration of the Term on account of the material
diminution of his duties by the Company which diminution is not cured by the
Company within 15 days of the Executive’s providing written notice to the
Company of such diminution; and

(D)          The Company and MSC determine,
in their sole discretion, that the Executive did not breach any provision of
the Confidentiality Agreement.

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(c)           As a condition of receiving the
Severance Payment, at least 10 days prior to the Payment Date, the Executive
shall execute and deliver to the Company the General Release in the form
attached as Exhibit A hereto (the “Release”). Notwithstanding anything in
this Agreement to the contrary, payment of any Severance Payment hereunder is
expressly conditioned on the Executive’s compliance with the terms of the
Release and the Confidentiality Agreement and no further Severance Payment
shall be made following the Company’s determination, in its sole discretion,
that the Executive has breached any provision of the Release or the
Confidentiality Agreement.

(d)           Confidentiality,
Non-Solicitation and Non-Competition. In consideration of the Executive’s
employment and continued employment, and any and all payments to the Executive
by the Company, the Company’s entrusting the Executive with Confidential
Information (as defined in the Confidentiality Agreement), and the benefits
provided hereunder, including without limitation the Severance Payment, the
parties have entered into the Confidentiality Agreement, which is hereby
incorporated by reference herein and made a part hereof as if set forth in full
herein.

10.           Severability.
If any provision of this Agreement for any reason shall be held, by a court of
competent jurisdiction, to be illegal, invalid or unenforceable, such
illegality, invalidity or unenforceability shall not render the entire
Agreement illegal, invalid or unenforceable, the parties hereto agree, and it
is their desire, that such court shall amend or modify this Agreement, and that
this Agreement, in its modified form, shall be enforceable and valid to the
maximum extent permitted by applicable law, and each other provision hereof
shall not thereby be affected and shall be given full force and effect, and the
parties shall cooperate in good faith to further modify this Agreement so as to
preserve to the maximum extent possible the intended benefits to be received by
the parties.

11.           Successors
and Assigns. The Agreement shall be binding upon and inure to
the benefit of the parties hereto, their respective heirs, administrators,
executors, personal representatives, successors and assigns. Notwithstanding
the foregoing, the Executive’s duties and responsibilities hereunder shall not
be assignable.

12.           Governing
Law. This Agreement shall be governed and construed in
accordance with the laws of the State of New York, without regard to any rules respecting
the conflicts of laws.

13.           Notices.
All notices, requests and demands given to or made upon the respective parties
hereto shall be in writing and shall be deemed to have been given or made three
business days after the date of mailing when mailed by registered or certified
mail, postage prepaid, or on the date of delivery if delivered by hand, or one
business day after the date of delivery by Federal Express or other reputable
overnight delivery service, addressed to the parties at their addresses set
forth below or to such other addresses furnished by notice given in accordance
with this Section 13:  (a) if
to the Company, c/o MSC Industrial Direct Co., Inc., 75 Maxess Road,
Melville, New York 11747, Attn: President and (b) if to the Executive,
________________________________.

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14.           Withholding.
All payments required to be made by the Company to the Executive under this
Agreement shall be subject to withholding taxes, social security and other
payroll deductions in accordance with applicable law and the Company’s policies
applicable to executive employees of the Company.

15.           Resolution of Disputes.
Any controversy or claim arising out of this Agreement, or the breach thereof,
shall be submitted to final and binding arbitration before the American
Arbitration Association (“AAA”), at its offices located in Nassau County and
shall be governed by the AAA’s Employment Dispute Rules. In such arbitration,
each party shall bear its own legal fees and related costs, except that the
parties shall share the fee of the arbitrator, where Executive pays an amount
equal to the cost of the filing fee or purchasing an index number in federal or
state court, whichever is less. Judgment on any award an arbitrator enters may
be entered in any court having jurisdiction over the parties and the arbitrator
shall have the discretion to award the same relief a court could award. To the
extent that any claim is found not to be subject to arbitration, such claim
shall be either decided by the arbitrator, or the appropriate New York state
court, and all such claims shall be adjudicated by a judge sitting without a
jury.

16.           Entire
Agreement. This Agreement constitutes the entire understanding
between the parties with respect to the matters referred to herein, and no
waiver of or modification to the terms hereof shall be valid unless in writing
signed by the party to be charged and only to the extent therein set forth. All
prior and contemporaneous agreements and understandings with  respect to the subject matter of this
Agreement are hereby terminated and superseded by this Agreement.

17.           Modification;
Waiver.

(a)           This Agreement may be amended or
waived if, and only if, such amendment or waiver is in writing and signed, in
the case of an amendment, by the Company and the Executive or in the case of a
waiver, by the party against whom the waiver is to be effective. Any such
waiver shall be effective only to the extent specifically set forth in such
writing.

(b)           No
failure or delay by any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege.

18.           Headings.
The headings in this Agreement are for convenience of reference only and shall
not control or affect the meaning or construction of this Agreement.

19.           Counterparts.
This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.

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IN WITNESS WHEREOF, the Company has caused this Agreement to be duly
executed in its corporate name by one of its officers duly authorized to enter
into and execute this Agreement, and the Executive has manually signed his name
hereto, all as of the day and year first above written.

	
   

  	
  J&L AMERICA, INC. DBA J&L

  
	
   

  	
  INDUSTRIAL SUPPLY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Clarence V. Spawr

  
	
   

  	
   

  	
  Name: Clarence V. Spawr

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Michael P. Wessner

  
	
   

  	
   

  	
  Michael Wessner

  

 

  8
 
  

Exhibit A

RELEASE

 

                WHEREAS,
___________ (the “Associate”) was a party to an Agreement dated as of
__________, 200_ (the “Agreement”) by and between the Associate and J&L
AMERICA, INC. DBA J&L INDUSTRIAL SUPPLY, a Michigan corporation (the
“Corporation”), pursuant to which the Associate served as the ___________ of
the Corporation, and the employment of the Associate with the Corporation has
been terminated; and

                WHEREAS,
it is a condition to the Corporation’s obligations to make the severance
payments and benefits available to the Associate pursuant to the Agreement that
the Associate execute and deliver this Release to the Corporation.

                NOW,
THEREFORE, in consideration of the receipt by the Associate of the benefits
under the Agreement, which constitute a material inducement to enter into this
Release, the Associate intending to be legally bound hereby agrees as follows:

                Subject
to the next succeeding paragraph, effective upon the expiration of the 7-day
revocation period following execution hereof as provided below, the Associate
irrevocably and unconditionally releases the Corporation and MSC Industrial
Direct Co., Inc. (“MSC”) and each’s owners, stockholders, predecessors,
successors, assigns, affiliates, control persons, agents, directors, officers,
employees, representatives, divisions and subdivisions (collectively, the
“Related Persons”) from any and all causes of action, charges, complaints,
liabilities, obligations, promises, agreements, controversies and claims (a)
arising out of the Associate’s employment with the Corporation and the
conclusion thereof, including, without limitation, any federal, state, local or
other statutes, orders, laws, ordinances, regulations or the like that relate
to the employment relationship and/or specifically that prohibit discrimination
based upon age, race, 

 

 

religion, sex, national origin, disability, sexual
orientation or any other unlawful bases, including, without limitation, as
amended, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of
1991, the Age Discrimination in Employment Act of 1967, the Civil Rights Acts
of 1866 and 1871, the Americans With Disabilities Act of 1990, the National
Labor Relations Act,  the Employee
Retirement Income Security Act of 1974, Sections 1981 through 1988 of Title 42
of the United States Code, the Immigration Reform and Control Act, the Workers
Adjustment and Retraining Notification Act, the Occupational Safety and Health
Act, the New York State Executive Law (including its Human Rights Law), the New
York City Administrative Code (including its Human Rights Law), the New York
State Labor Law, the New York wage and wage-hour laws, any other federal, state
or local civil, human rights, bias, whistleblower, discrimination, retaliation,
compensation, employment, labor or other federal, state or local law,
regulation or ordinance, and any applicable rules and regulations promulgated
pursuant to or concerning any of the foregoing statutes, laws or ordinances;
(b) arising out of any benefit, payroll or other plan, policy or program of the
Corporation; (c) arising out of any public policy, contract, third-party
beneficiary or common law claim;  (d) for
tort, tortious or harassing conduct, infliction of emotional distress,
interference with contract, fraud, libel or slander; and (e) for breach of
contract or for damages, including, without limitation, punitive or
compensatory damages or for attorneys’ fees, expenses, costs, salary, severance
pay, vacation, injunctive or equitable relief, whether, known or unknown,
suspected or unsuspected, foreseen or unforeseen, matured or unmatured, which,
from the beginning of the world up to and including the date hereof, exists,
have existed, or may arise, which the Associate, or any of his heirs,
executors, administrators, successors and assigns ever had, now has or at any
time hereafter may have, own or hold against the Corporation, MSC and/or any
Related Person.

 

 2
 

 

                Notwithstanding
anything contained herein to the contrary, the Associate is not releasing the
Corporation or MSC from any of the Corporation’s or MSC’s obligations (a) under
the Agreement, (b) to provide the Associate with insurance coverage defense
and/or indemnification as an officer or director of the Corporation, if
applicable to Associate, to the extent generally made available at the date of
termination to the Corporation’s officers and directors in respect of facts and
circumstances existing or arising on or prior to the date hereof, or (c) in
respect of the Associate’s rights under the MSC’s 2005 Omnibus Equity Plan.

                Associate
affirms that he has not filed, caused to be filed, or presently is a party to
any claim, complaint, or action against the Corporation, MSC or any Related
Person in any forum or form.  Associate
further affirms that he has no known workplace injuries or occupational
diseases and has been provided and/or has not been denied any leave requested
under the Family and Medical Leave Act.   

                This
Release shall be governed and conformed in accordance with the laws of the
State of New York without regard to its conflict or choice of law
provisions.  In the event the Associate
or the Corporation breaches any provision of this Agreement, Associate and the
Corporation affirm that either may institute an action to specifically enforce
any term or terms of this Release.  If
any provision of this Release is declared illegal or unenforceable by any court
of competent jurisdiction, the parties agree the court shall have the authority
to modify, alter or change the provision(s) in question to make the Release
legal and enforceable.  If this Release
cannot be modified to be enforceable, excluding the general release language,
such provision shall immediately become null and void, leaving the remainder of
this Release in full force and effect. 
If the general release language is found to be illegal or unenforceable,
Associate agrees to 

 

 3
 

 

execute a binding replacement release or, if requested
by the Corporation or MSC, return the monies paid pursuant to this Release.

                Any
controversy or claim arising out of this Release, or the breach thereof, shall
be submitted to final and binding arbitration before the American Arbitration
Association (“AAA”), at its offices located in Nassau County and shall be
governed by the AAA’s Employment Dispute Rules. 
In such arbitration, each party shall bear its own legal fees and
related costs, except that the parties shall share the fee of the arbitrator,
where Associate pays an amount equal to the cost of the filing fee or
purchasing an index number in federal or state court, whichever is less.  Judgment on any award an arbitrator enters
may be entered in any court having jurisdiction over the parties and the
arbitrator shall have the discretion to award the same relief a court could
award.  To the extent that any claim is
found not to be subject to arbitration, such claim shall be either decided by
the arbitrator, or the appropriate New York state court, and all such claims
shall be adjudicated by a judge sitting without a jury.

                The
Corporation has advised the Associate in writing to consult with an attorney of
his choosing prior to the signing of this Release and the Associate hereby
represents to the Corporation that he has in fact consulted with such an
attorney prior to the execution of this Release.  The Associate acknowledges that he has had at
least twenty-one days to consider the waiver of his rights under the ADEA.  Upon execution of this Release, the Associate
shall have seven additional days from such date of execution to revoke his
consent to the waiver of his rights under the ADEA.  Any revocation within this period must be
submitted, in writing, to ____________ [Identify Company
representative] and state, “I hereby revoke my acceptance of our
Release.”  The revocation must be
personally delivered to _________________ [Identify Company
representative]  or [his/her]
designee, or mailed to ____________________ 

 

 4
 

 

[Identify Company representative]
 and postmarked within seven (7) calendar days
of execution of this Release.  This
Release shall not become effective or enforceable until the revocation period
has expired.  If the last day of the
revocation period is a Saturday, Sunday, or legal holiday in the state in which
Associate was employed at the time of his last day of employment, then the revocation
period shall not expire until the next following day which is not a Saturday,
Sunday, or legal holiday.  If no such
revocation occurs, the Associate’s waiver of rights under the ADEA shall become
effective seven days from the date the Associate executes this Release.

                IN
WITNESS WHEREOF, the undersigned has executed this Release on the ___ day of
______________, 200_.

 

	
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
          [Name]

  

 

 5

Exhibit B

 

 

ON DATE OF HIRE 

ASSOCIATE
CONFIDENTIALITY, NON-SOLICITATION

AND
NON-COMPETITION AGREEMENT

 

 

ASSOCIATE CONFIDENTIALITY, NON-SOLICITATION AND NON-COMPETITION
AGREEMENT dated as of ________________, between MSC Industrial Direct Co.,
Inc., on behalf of itself and its subsidiaries including, without limitation,
J&L America, Inc. (d/b/a J&L Industrial Supply) (“J&L”)
(collectively, “Employer” or “Company”), and _____________________
(“Associate”). 

 

In consideration of Associate’s employment
and/or continued employment by J&L and Associates entering into an
Employment Agreement dated as of __________, 2006 with J&L, the payment of
Associate’s compensation by J&L, and J&L’s entrusting to Associate of
confidential information relating to its business, Associate agrees to and
accepts the conditions of employment hereinafter set forth. 

 

1. Confidentiality.  

 

a. During the term of
Associate’s employment with J&L, Associate will not use or disclose to any
individual or entity any Confidential Information (as defined below) except (i)
in the performance of Associate’s duties for J&L, (ii) as authorized in
writing by Employer, or (iii) as required by law or legal process, provided
that, prior written notice of such required disclosure is provided to Employer
and, provided further that all reasonable efforts to preserve the
confidentiality of such information shall be made.   

 

b. As used in
this Agreement, “Confidential Information” shall mean information that (i) is
used or potentially useful in Employer’s business, (ii) Employer treats as
proprietary, private or confidential, and (iii) is not generally known to the
public.  “Confidential Information”
includes, without limitation, information relating to Employer’s products or
services, processing, manufacturing, marketing, selling, customer lists, call
lists, customer data, memoranda, notes, records, technical data, sketches,
plans, drawings, chemical formulae, trade secrets, composition of products,
research and development data, sources of supply and material, operating and
cost data, financial information, personal information and information
contained in manuals or memoranda. 
“Confidential Information” also includes proprietary and/or confidential
information of Employer’s customers, suppliers and trading partners who may
share such information with Employer pursuant to a confidentiality agreement or
otherwise.  The Associate agrees to treat
all such customer, supplier or trading partner information as “Confidential
Information” hereunder.  The foregoing
restrictions on the use or disclosure of confidential information shall
continue after Associate’s employment

 

terminates
for any reason for so long as the information is not generally known to the
public.  

 

2. Non-competition.   

 

a. Associate recognizes
that the Company’s relationship and goodwill with its customers have been
established at substantial cost and effort by the Company. 

 

b. Therefore, associate
shall not enter into competition (as defined below) with Employer during the
term of Associate’s employment with J&L, and  

 

c. for a period of one (1)
year following cessation of Associate’s employment with J&L for any reason,
Associate will not, in any capacity, accept employment with the employer with
whom Associate was employed immediately preceding the commencement of
Associate’s employment with the Company, nor will Associate, in any capacity,
accept employment with the following business entities, including any parent or
subsidiary entities or other affiliated organizations:  W.W. Grainger, Inc.; Fastenal Company;
McMaster Carr; Kennametal Inc. or its affiliates; and The Home Depot, Inc.   

 

3. Non-Solicitation.    

 

a. Associate recognizes
that the Company’s relationship and goodwill with its customers have been
established at substantial cost and effort by the Company. 

 

b. Therefore, while
employed by J&L, and for an additional period of one (1) year after the
termination of employment, Associate shall not in any capacity employ or
solicit for employment, or recommend that another person employ or solicit for
employment, any person who is then, or was at any time during the six (6)
months immediately preceding the termination of Associate’s employment, an
Associate, sales representative or agent of Employer or any present or future subsidiary
or affiliate of Employer. 

 

c. Further, Associate
agrees that while employed by J&L, and for a period of one (1) year after
his/her employment with J&L ends, s/he will not, on behalf of
himself/herself, or any other person, firm or corporation, solicit any of the
Company’s or its Affiliate’s customers with whom s/he has had contact while
working for J&L; nor will Associate in any way, directly or indirectly, for
himself/herself, or any other person, firm, corporation or entity, divert, or take
away any customers of the Company or its Affiliates with whom Associate has had
contact.  For purposes of this paragraph,
the term “contact” shall mean engaging in any communication, whether written or
oral, with the customer or a representative of the customer, or 

 

obtaining any information with respect to such customer or
customer representative. 

 

4. Employment At-Will.  Associate acknowledges that his or her
employment by J&L following the expiration of the Term (as defined in the
Employment Agreement) will not be for any specified period of time and that it
can be terminated by either Associate or Employer at any time following the
expiration of the Term for any lawful reason. 
This is an “employment at will.” 

 

5. Termination of Employment.  In the event of termination of employment by
either party, this Agreement will remain in effect.  Upon termination, Associate will immediately
deliver to Employer all property belonging to Employer then in the Associate’s
possession or control, including all Documents (as defined herein) embodying
Confidential Information.  As used
herein, “Documents” shall mean originals or copies of files, memoranda,
correspondence, notes, manuals, photographs, slides, overheads, audio or video
tapes, cassettes, or disks, and records maintained on computer or other
electronic media.   

 

6. Notice to Future Employers.  For the period of one year immediately
following the end of Associate’s employment with J&L, Associate will inform
each new employer, in writing, prior to accepting employment, of the existence
and details of this Agreement and will provide that employer with a copy of
this Agreement.  Associate will send a
copy of each such writing to MSC at the time the Associate informs each new
employer of the Agreement.   

 

7.  Remedies.  Associate
acknowledges that this Agreement, its terms and his/her compliance is necessary
to protect the Company’s confidential and proprietary information, its business
and its goodwill; and that a breach of any of Associate’s promises contained in
this Agreement will irreparably and continually damage the Company to an extent
that money damages may not be adequate. 
For these reasons, Associate agrees that in the event of a breach or
threatened breach by the Associate of this Agreement, the Company shall be
entitled to a temporary restraining order and preliminary injunction
restraining Associate from such breach. 
Nothing contained in this provision shall be construed as prohibiting
the Company from pursuing any other remedies available for such breach or
threatened breach or any other breach of this Agreement.  If Associate violates this Agreement, then
the duration of the restrictions contained in paragraphs 2 and 3 shall be
extended for an amount of time equal to the period of time during which
Associate was in violation of the Agreement. 

 

8.  Entire
Agreement.  This Agreement embodies
the entire agreement and understanding between the Parties with regard to the
subject matter of this Agreement, is binding upon and inures to the benefit of
the Parties, and it supersedes any and all prior agreements or understandings
between the Company and Associate. 

 

9.  Modification.  This Agreement may be modified or amended
only by an instrument in writing executed by the Parties hereto, or in
accordance with paragraph 15 herein. 

 

 

10. Governing Law and Venue.  This
Agreement shall be construed and enforced in accordance with and governed by
the laws of the State of New York, and may be enforced in any court of
competent jurisdiction.   

 

 11.
Waiver.  If in one or more instances either
party fails to insist that the other party perform any of this Agreement’s
terms, this failure shall not be construed as a waiver by the party of any
past, present, or future right granted under this Agreement; the obligations of
both Parties under this Agreement shall continue in full force and effect. 

 

12. Assignment. This Agreement may
not be assigned by Associate.  The
Company shall have the right to assign its rights and obligations hereunder
without the consent of the Associate. 

 

13. Arbitration. Except as
otherwise provided in this Agreement, any controversy or claim arising out of
Associate’s employment with J&L or the termination thereof, including
without limitation any claim related to this Agreement or the breach thereof
shall be resolved  by binding arbitration
in accordance with the rules then in effect of the American Arbitration
Association, at the office of the American Arbitration Association nearest to
where the Associate performed the Associate's principal duties for the
J&L.  Nothing in this paragraph shall
prevent the parties from seeking injunctive relief from the courts pending
arbitration.  Each party shall be permitted
to engage in arbitral discovery in the form of document production, information
requests, interrogatories, depositions and subpoenas.  The parties shall share equally the fee of
the arbitration panel. 

 

To the extent that an arbitrator or court shall find
that any dispute between the parties, 
including any claim made under or relating to this Agreement, is not
subject to arbitration, such claim shall be decided by the courts of the State
and the County, in which this agreement was executed, in a proceeding held
before a Judge of the Trial Court of the State and County in which this
agreement was executed  or in the United
States District Court in and for the District Court of covering the County in
which this agreement was executed.  Any
trial of such a claim shall be heard by the Judge of such Court, sitting
without a jury at a bench trial, to ensure more rapid adjudication of that
claim and application of existing law. 

14. Attorneys’ Fees.  If any party to this Agreement breaches any
of this Agreement’s terms,   then that
party shall pay to the non-defaulting party all of the non-defaulting party’s
costs and expenses, including reasonable attorneys’ fees, incurred by that
party in enforcing this Agreement.  

15. Severability.  If
any one or more of the provisions contained in this Agreement is held illegal
or unenforceable by an arbitrator or court and cannot be modified to be
enforceable (which the parties expressly authorize such court, arbitrator, or
other forum to do), no other provisions shall be affected by this holding. 

    

16. Acknowledgment.  I
have read this agreement, have had an opportunity to ask Employer's
representatives questions about it, and understand that my signing this 

 

agreement is a condition of employment. 

 

17. Section Headings.  Section headings are used herein for
convenience of reference only and shall not affect the meaning of any provision
of this Agreement. 

     

THUS, the parties knowingly and voluntarily execute
this Agreement as of the dates set forth below.  

 

	
   

  	
  J&L MANAGER:

  	
   

  	
   

  	
  ASSOCIATE:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  C.V. Spawr___

  	
   

  	
  Signature:

  	
  /s/
  Michael P Wessner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  NPHR__

  	
   

  	
  Printed
  Name:

  	
  M P
  Wessner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  14
  March 2006

  	
   

  	
  Date:

  	
  3-14-06Exhibit
4.1

DEPOSIT AGREEMENT

DEPOSIT AGREEMENT, dated as of June 30, 2006,
among DUKE REALTY CORPORATION, an Indiana corporation (the “Company”), and
American Stock Transfer & Trust Company, a New York banking
corporation, as Depositary, and all holders from time to time of Receipts (as
hereinafter defined) issued hereunder.

W I  T  N  E  S  S  E  T  H:

WHEREAS, it is desired to provide, as hereinafter set
forth in this Deposit Agreement, for the deposit of the Company’s Preferred
Shares (as hereinafter defined) with the Depositary for the purposes set forth
in this Deposit Agreement and for the issuance hereunder of the Receipts
evidencing Depositary Shares representing a fractional interest in the
Preferred Shares deposited; and

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

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

ARTICLE I

DEFINITIONS

The following definitions shall apply to the
respective terms (in the singular and plural forms of such terms) used in this
Deposit Agreement and the Receipts:

SECTION 1.1.   “Articles
of Incorporation” shall mean the Third Restated Articles of Incorporation,
as amended from time to time, of the Company.

SECTION 1.2.   “Company”
shall mean Duke Realty Corporation, an Indiana corporation, and its successors.

SECTION 1.3.   “Corporate
Office” shall mean the corporate office of the Depositary at which at any
particular time its business in respect of matters governed by this Deposit
Agreement shall be administered, which at the date of this Deposit Agreement is
located at 59 Maiden Lane, New York, NY 10038.

SECTION 1.4.   “Deposit
Agreement” shall mean this agreement, as the same may be amended, modified
or supplemented from time to time.

SECTION 1.5.   “Depositary”
shall mean American Stock Transfer & Trust Company, a company having
its principal office in the United States and having a combined capital and
surplus of at least $10,000,000, and any successor as depositary hereunder.

 

SECTION 1.6.   “Depositary
Share” shall mean a fractional interest equal to 1/10 of a Preferred Share
deposited with the Depositary hereunder and the same proportionate interest in
any and all other property received by the Depositary in respect of such
Preferred Share and held under this Deposit Agreement, all as evidenced by the
Receipts issued hereunder. Subject to the terms of this Deposit Agreement, each
owner of a Depositary Share is entitled, proportionately, to all the rights,
preferences and privileges of the Preferred Share represented by such
Depositary Share, including the dividend, voting, redemption, conversion and
liquidation rights contained in the Designating Amendment.

SECTION 1.7.   “Depositary’s
Agent” shall mean an agent appointed by the Depositary as provided, and for
the purposes specified, in Section 7.5.

SECTION 1.8.   “Designating
Amendment” shall mean the amendment to the Articles of Incorporation filed
with the Secretary of State of the State of Indiana establishing the Preferred
Shares as a series of preferred shares of the Company.

SECTION 1.9.   “Preferred
Shares” shall mean the Company’s 7.25% Series N Cumulative Redeemable
Preferred Shares, par value $0.01 per share, heretofore validly issued, fully
paid and nonassessable.

SECTION 1.10.   “Receipt”
shall mean a Depositary Receipt issued hereunder to evidence one or more
Depositary Shares, whether in definitive or temporary form, substantially in
the form set forth as Exhibit A hereto.

SECTION 1.11.   “record
date” shall mean the date fixed pursuant to Section 4.4.

SECTION 1.12.   “record
holder” or “holder” as applied to a Receipt shall mean the person in whose
name a Receipt is registered on the books maintained by the Depositary for such
purpose.

SECTION 1.13.   “Registrar”
shall mean American Stock Transfer & Trust Company. or any bank or
trust company appointed to register ownership and transfers of Receipts or the
deposited Preferred Shares, as the case may be, as herein provided.

SECTION 1.14.   “Securities
Act” shall mean the Securities Act of 1933, as amended.

SECTION 1.15.   
“Transfer Agent” shall mean American Stock Transfer & Trust
Company or any bank or trust company appointed to transfer the Receipts or the
deposited Preferred Shares, as the case may be, as herein provided.

 2
 

 

ARTICLE
II

FORM OF RECEIPTS, DEPOSIT OF PREFERRED SHARES,

EXECUTION AND DELIVERY, TRANSFER,

SURRENDER AND REDEMPTION OF RECEIPTS

SECTION 2.1.   Form and
Transferability of Receipts. Definitive Receipts shall be engraved or
printed or lithographed and shall be substantially in the form set forth in Exhibit A
annexed to this Deposit Agreement, with appropriate insertions, modifications
and omissions, as hereinafter provided. Pending the preparation of definitive
Receipts, the Depositary, upon the written order of the Company, delivered in
compliance with Section 2.2, shall execute and deliver temporary Receipts
which may be printed, lithographed, typewritten, mimeographed or otherwise
substantially of the tenor of the definitive Receipts in lieu of which they are
issued and with such appropriate insertions, omissions, substitutions and other
variations as the persons executing such Receipts may determine, as evidenced
by their execution of such Receipts. If temporary Receipts are issued, the
Company and the Depositary will cause definitive Receipts to be prepared
without unreasonable delay. After the preparation of definitive Receipts, the
temporary Receipts shall be exchangeable for definitive Receipts upon surrender
of the temporary Receipts at the Corporate Office or such other offices, if
any, as the Depositary may designate, without charge to the holder. Upon
surrender for cancellation of any one or more temporary Receipts, the
Depositary shall execute and deliver in exchange therefor definitive Receipts
representing the same number of Depositary Shares as represented by the
surrendered temporary Receipt or Receipts. Such exchange shall be made at the
Company’s expense and without any charge therefor. Until so exchanged, the
temporary Receipts shall in all respects be entitled to the same benefits under
this Deposit Agreement, and with respect to the Preferred Shares deposited, as
definitive Receipts.

Receipts shall be executed by the Depositary by the
manual or facsimile signature of a duly authorized signatory of the Depositary,
provided that if a Registrar (other than the Depositary) shall have been
appointed then such Receipts shall also be countersigned by manual signature of
a duly authorized signatory of the Registrar. No Receipt shall be entitled to
any benefits under this Deposit Agreement or be valid or obligatory for any
purpose unless it shall have been executed as provided in the preceding
sentence. The Depositary shall record on its books each Receipt executed as
provided above and delivered as hereinafter provided.

Except as the Depositary may otherwise determine,
Receipts shall be in denominations of any number of whole Depositary Shares. All
Receipts shall be dated the date of their issuance.

Receipts may be endorsed with or have incorporated in
the text thereof such legends or recitals or changes not inconsistent with the
provisions of this Deposit Agreement as may be required by the Depositary or required
to comply with any applicable law or regulation or with the rules and
regulations of any securities exchange upon which the Preferred Shares, the
Depositary Shares or the Receipts may be listed or to conform with any usage
with respect thereto, or to indicate any special limitations or restrictions to
which any particular Receipts are subject.

 3
 

 

Title to any Receipt (and to the Depositary Shares
evidenced by such Receipt), that is properly endorsed or accompanied by a
properly executed instrument of transfer or endorsement, shall be transferable
by delivery with the same effect as in the case of a negotiable instrument;
provided, however, that until a Receipt shall be transferred on the books
of the Depositary as provided in Section 2.4, the Depositary may,
notwithstanding any notice to the contrary, treat the record holder thereof at
such time as the absolute owner thereof for the purpose of determining the
person entitled to distribution of dividends or other distributions, the
exercise of any conversion rights or to any notice provided for in this Deposit
Agreement and for all other purposes.

SECTION 2.2.   Deposit
of Preferred Shares; Execution and Delivery of Receipts in Respect Thereof.
Concurrently with the execution of this Deposit Agreement, the Company is
delivering to the Depositary a certificate or certificates, registered in the
name of the Depositary and evidencing 440,000 Preferred Shares, properly
endorsed or accompanied, if required by the Depositary, by a duly executed
instrument of transfer or endorsement, in form satisfactory to the Depositary,
together with (i) all such certifications as may be required by the
Depositary in accordance with the provisions of this Deposit Agreement and (ii) a
written order of the Company directing the Depositary to execute and deliver
to, or upon the written order of, the person or persons stated in such order a
Receipt or Receipts for the Depositary Shares representing such deposited
Preferred Shares. The Depositary acknowledges receipt of the deposited
Preferred Shares and related documentation and agrees to hold such deposited
Preferred Shares in an account to be established by the Depositary at the
Corporate Office or at such other office as the Depositary shall determine. The
Company hereby appoints the Depositary as the Registrar and Transfer Agent for
Preferred Shares deposited hereunder and the Depositary hereby accepts such
appointment and, as such, will reflect changes in the number of shares
(including any fractional shares) of deposited Preferred Shares held by it by
notation, book-entry or other appropriate method.

If required by the Depositary, Preferred Shares
presented for deposit by the Company at any time, whether or not the register
of shareholders of the Company is closed, shall also be accompanied by an
agreement or assignment, or other instrument satisfactory to the Depositary,
that will provide for the prompt transfer to the Depositary or its nominee of
any dividend or right to subscribe for additional Preferred Shares or to
receive other property that any person in whose name the Preferred Shares is or
has been registered may thereafter receive upon or in respect of such deposited
Preferred Shares, or in lieu thereof such agreement of indemnity or other
agreement as shall be satisfactory to the Depositary.

Upon receipt by the Depositary of a certificate or
certificates for Preferred Shares deposited hereunder, together with the other
documents specified above, and upon registering such Preferred Shares in the
name of the Depositary, the Depositary, subject to the terms and conditions of
this Deposit Agreement, shall execute and deliver to, or upon the order of, the
person or persons named in the written order delivered to the Depositary
referred to in the first paragraph of this Section 2.2, a Receipt or
Receipts for the number of whole Depositary Shares representing the Preferred
Shares so deposited and registered in such name or names as may be requested by
such person or persons. The Depositary shall execute and deliver such Receipt
or Receipts at the Corporate Office, except that, at the request, risk and
expense of any person 

 4
 

 

requesting such delivery,
such delivery may be made at such other place as may be designated by such
person.

Other than in the case of splits, combinations or
other reclassifications affecting the Preferred Shares, or in the case of
dividends or other distributions of Preferred Shares, if any, there shall be
deposited hereunder not more than the number of shares constituting the
Preferred Shares as set forth in the Designating Amendment, as such may be
amended.

The Company shall deliver to the Depositary from time
to time such quantities of Receipts as the Depositary may request to enable the
Depositary to perform its obligations under this Deposit Agreement.

SECTION 2.3.   Optional Redemption of
Preferred Shares for Cash. Whenever the Company shall elect to redeem
deposited Preferred Shares for cash in accordance with the provisions of the
Designating Amendment, it shall (unless otherwise agreed in writing with the
Depositary) give the Depositary not less than 60 days’ prior written notice of
the date of such proposed redemption and of the number of such Preferred Shares
held by the Depositary to be redeemed and the applicable redemption price, as
set forth in the Designating Amendment, including the amount, if any, of
accrued and unpaid dividends to the date of such redemption. The Depositary
shall mail, first-class postage prepaid, notice of the redemption of Preferred
Shares and the proposed simultaneous redemption of the Depositary Shares
representing the Preferred Shares to be redeemed, not less than 30 and not more
than 60 days prior to the date fixed for redemption of such Preferred Shares
and Depositary Shares (the “cash redemption date”), to the holders of record on
the record date fixed for such redemption pursuant to Section 4.4 hereof
of the Receipts evidencing the Depositary Shares to be so redeemed, at the
addresses of such holders as the same appear on the records of the Depositary;
but neither failure to mail any such notice to one or more such holders nor any
defect in any such notice shall affect the sufficiency of the proceedings for
redemption as to other holders. The Company shall provide the Depositary with
such notice, and each such notice shall state: 
the cash redemption date; the cash redemption price; the number of
deposited Preferred Shares and Depositary Shares to be redeemed; if fewer than
all the Depositary Shares held by any holder are to be redeemed, the number of
such Depositary Shares held by such holder to be so redeemed; the place or
places where Receipts evidencing Depositary Shares to be redeemed are to be
surrendered for payment of the cash redemption price; and that from and after
the cash redemption date dividends in respect of the Preferred Shares
represented by the Depositary Shares to be redeemed will cease to accrue. If
fewer than all the outstanding Depositary Shares are to be redeemed, the
Depositary Shares to be redeemed shall be selected pro rata (as nearly as may
be practicable without creating fractional Depositary Shares) or by any other
equitable method determined by the Company.

In the event that notice of redemption has been made
as described in the immediately preceding paragraph and the Company shall then
have paid in full to the Depositary the cash redemption price (determined
pursuant to the Designating Amendment) of the Preferred Shares deposited with
the Depositary to be redeemed (including any accrued and unpaid dividends to
the date of redemption), the Depositary shall redeem the number of Depositary
Shares representing such Preferred Shares so called for redemption by the
Company and from and after the cash redemption date (unless the Company shall
have failed to redeem the Preferred Shares to be redeemed by it as set forth in
the Company’s notice provided for in the preceding 

 5
 

 

paragraph), all dividends
in respect of the Preferred Shares called for redemption shall cease to accrue,
the Depositary Shares called for redemption shall be deemed no longer to be
outstanding and all rights of the holders of Receipts evidencing such
Depositary Shares (except the right to receive the cash redemption price and
any money or other property to which holders of such Receipts were entitled
upon such redemption) shall, to the extent of such Depositary Shares, cease and
terminate. Upon surrender in accordance with said notice of the Receipts
evidencing such Depositary Shares (properly endorsed or assigned for transfer,
if the Depositary shall so require), such Depositary Shares shall be redeemed
at a cash redemption price of $25.00 per Depositary Share plus any other money
and other property payable in respect of such Preferred Shares. The foregoing
shall be further subject to the terms and conditions of the Designating
Amendment.

If fewer than all of the Depositary Shares evidenced
by a Receipt are called for redemption, the Depositary will deliver to the
holder of such Receipt upon its surrender to the Depositary, together with
payment of the cash redemption price for and all other amounts payable in
respect of the Depositary Shares called for redemption, a new Receipt
evidencing the Depositary Shares evidenced by such prior Receipt and not called
for redemption.

SECTION 2.4.   Registration of Transfers
of Receipts. The Company hereby appoints the Depositary as the Registrar
and Transfer Agent for the Receipts and the Depositary hereby accepts such
appointment and, as such, shall register on its books from time to time
transfers of Receipts upon any surrender thereof by the holder in person or by
a duly authorized attorney, properly endorsed or accompanied by a properly
executed instrument of transfer or endorsement, together with evidence of the
payment of any transfer taxes as may be required by law. Upon such surrender,
the Depositary shall execute a new Receipt or Receipts and deliver the same to
or upon the order of the person entitled thereto evidencing the same aggregate
number of Depositary Shares evidenced by the Receipt or Receipts surrendered.

SECTION 2.5.   Combinations and Split-ups
of Receipts. Upon surrender of a Receipt or Receipts at the Corporate
Office or such other office as the Depositary may designate for the purpose of
effecting a split-up or combination of Receipts, subject to the terms and
conditions of this Deposit Agreement, the Depositary shall execute and deliver
a new Receipt or Receipts in the authorized denominations requested evidencing
the same aggregate number of Depositary Shares evidenced by the Receipt or
Receipts surrendered.

SECTION 2.6.   Surrender of Receipts and
Withdrawal of Preferred Shares. Any holder of a Receipt or Receipts may
withdraw any or all of the deposited Preferred Shares represented by the
Depositary Shares evidenced by such Receipt or Receipts and all money and other
property, if any, represented by such Depositary Shares by surrendering such
Receipt or Receipts at the Corporate Office or at such office as the Depositary
may designate for such withdrawals, provided that a holder of a Receipt
or Receipts may not withdraw such Preferred Shares (or money and other
property, if any, represented thereby) which has previously been called for
redemption. After such surrender, without unreasonable delay, the Depositary
shall deliver to such holder, or to the person or persons designated by such
holder as hereinafter provided, the number of whole or fractional shares of
such Preferred Shares and all such money and other property, if any,
represented by the Depositary Shares evidenced by the Receipt or Receipts so
surrendered for withdrawal, but holders of such whole or fractional Preferred
Shares 

 6
 

 

will not thereafter be
entitled to deposit such Preferred Shares hereunder or to receive Depositary
Shares therefor. If the Receipt or Receipts delivered by the holder to the
Depositary in connection with such withdrawal shall evidence a number of
Depositary Shares in excess of the number of Depositary Shares representing the
number of whole or fractional shares of deposited Preferred Shares to be
withdrawn, the Depositary shall at the same time, in addition to such number of
whole or fractional Preferred Shares and such money and other property, if any,
to be withdrawn, deliver to such holder, or (subject to Section 2.4) upon
his order, a new Receipt or Receipts evidencing such excess number of
Depositary Shares. Delivery of such Preferred Shares and such money and other
property being withdrawn may be made by the delivery of such certificates,
documents of title and other instruments as the Depositary may deem
appropriate, which, if required by the Depositary, shall be properly endorsed
or accompanied by proper instruments of transfer.

If the deposited Preferred Shares and the money and
other property being withdrawn are to be delivered to a person or persons other
than the record holder of the Receipt or Receipts being surrendered for
withdrawal of Preferred Shares, such holder shall execute and deliver to the
Depositary a written order so directing the Depositary and the Depositary may
require that the Receipt or Receipts surrendered by such holder for withdrawal
of such Preferred Shares be properly endorsed in blank or accompanied by a
properly executed instrument of transfer or endorsement in blank.

The Depositary shall deliver the deposited Preferred
Shares and the money and other property, if any, represented by the Depositary
Shares evidenced by Receipts surrendered for withdrawal at the Corporate
Office, except that, at the request, risk and expense of the holder
surrendering such Receipt or Receipts and for the account of the holder thereof,
such delivery may be made at such other place as may be designated by such
holder.

SECTION 2.7.   Limitations on Execution
and Delivery, Transfer, Split-up, Combination, Surrender and Exchange of
Receipts. As a condition precedent to the execution and delivery, transfer,
split-up, combination, surrender or exchange of any Receipt, the Depositary,
any of the Depositary’s Agents or the Company may require any or all of the
following: (i) payment to it of a sum sufficient for the payment (or, in
the event that the Depositary or the Company shall have made such payment, the
reimbursement to it) of any tax or other governmental charge with respect
thereto (including any such tax or charge with respect to the Preferred Shares
being deposited or withdrawn); (ii) the production of proof satisfactory
to it as to the identity and genuineness of any signature (or the authority of
any signature); and (iii) compliance with such regulations, if any, as the
Depositary or the Company may establish consistent with the provisions of this
Deposit Agreement as may be required by any securities exchange upon which the
deposited Preferred Shares, the Depositary Shares or the Receipts may be
included for quotation or listed.

The deposit of Preferred Shares may be refused, the
delivery of Receipts against Preferred Shares may be suspended, the transfer of
Receipts may be refused, and the transfer, split-up, combination, surrender,
exchange or redemption of outstanding Receipts may be suspended (i) during
any period when the register of shareholders of the Company is closed or (ii) if
any such action is deemed reasonably necessary or advisable by the Depositary,
any of the Depositary’s Agents or the Company at any time or from time to time
because of any 

 7
 

 

requirement of law or of
any government or governmental body or commission, or under Article X of
the Articles of Incorporation or under any provision of this Deposit Agreement.

SECTION 2.8.   Lost Receipts, etc. In
case any Receipt shall be mutilated or destroyed or lost or stolen, the
Depositary, in its discretion, may execute and deliver a Receipt of like form
and tenor in exchange and substitution for such mutilated Receipt or in lieu of
and in substitution for such destroyed, lost or stolen Receipt, provided
that the holder thereof provides the Depositary with (i) evidence
reasonably satisfactory to the Depositary of such destruction, loss or theft of
such Receipt, of the authenticity thereof and of his ownership thereof and (ii) reasonable
indemnification satisfactory to the Depositary and the Company.

SECTION 2.9.   Cancellation and
Destruction of Surrendered Receipts. All Receipts surrendered to the
Depositary or any Depositary’s Agent shall be cancelled by the Depositary. Except
as prohibited by applicable law or regulation, the Depositary is authorized to
destroy such Receipts so cancelled.

ARTICLE III

CERTAIN OBLIGATIONS OF HOLDERS OF
RECEIPTS AND THE COMPANY

SECTION 3.1.   Filing Proofs, Certificates
and Other Information. Any person presenting Preferred Shares for deposit
or any holder of a Receipt may be required from time to time to file such proof
of residence or other information, to execute such certificates and to make
such representations and warranties as the Depositary or the Company may
reasonably deem necessary or proper. The Depositary or the Company may withhold
or delay the delivery of any Receipt, the transfer, redemption or exchange of
any Receipt, the withdrawal of the deposited Preferred Shares represented by
the Depositary Shares evidenced by any Receipt, the distribution of any
dividend or other distribution or the sale of any rights or of the proceeds
thereof, until such proof or other information is filed, such certificates are
executed or such representations and warranties are made.

SECTION 3.2.   Payment of Fees and
Expenses. Holders of Receipts shall be obligated to make payments to the
Depositary of certain fees and expenses, as provided in Section 5.7, or
provide evidence reasonably satisfactory to the Depositary that such fees and
expenses have been paid. Until such payment is made, transfer of any Receipt or
any withdrawal of the Preferred Shares or money or other property, if any,
represented by the Depositary Shares evidenced by such Receipt may be refused,
any dividend or other distribution may be withheld, and any part or all of the
Preferred Shares or other property represented by the Depositary Shares
evidenced by such Receipt may be sold for the account of the holder thereof
(after attempting by reasonable means to notify such holder a reasonable number
of days prior to such sale). Any dividend or other distribution so withheld and
the proceeds of any such sale may be applied to any payment of such fees or
expenses, the holder of such Receipt remaining liable for any deficiency.

SECTION 3.3.   Representations and
Warranties as to Preferred Shares. In the case of the initial deposit of
the Preferred Shares hereunder, the Company and, in the case of subsequent
deposits thereof, each person so depositing Preferred Shares under this Deposit
Agreement shall 

 8
 

 

be deemed thereby to
represent and warrant that such Preferred Shares and each certificate therefor
are valid and that the person making such deposit is duly authorized to do so. The
Company hereby further represents and warrants that such Preferred Shares, when
issued, will be validly issued, fully paid and nonassessable. Such
representations and warranties shall survive the deposit of the Preferred
Shares and the issuance of Receipts.

SECTION 3.4.   Representation and Warranty
as to Receipts and Depositary Shares. The Company hereby represents and
warrants that the Receipts, when issued, will evidence legal and valid
interests in the Depositary Shares and each Depositary Share will represent a
legal and valid 1/10 fractional interest in a deposited Preferred Share. Such
representation and warranty shall survive the deposit of the Preferred Shares
and the issuance of Receipts evidencing the Depositary Shares.

ARTICLE IV

THE PREFERRED SHARES; NOTICES

SECTION 4.1.   Cash Distributions. Whenever
the Depositary shall receive any cash dividend or other cash distribution on
the deposited Preferred Shares, including any cash received upon redemption of
any Preferred Shares pursuant to Section 2.3, the Depositary shall, subject
to Section 3.2, distribute to record holders of Receipts on the record
date fixed pursuant to Section 4.4 such amounts of such sum as are, as
nearly as practicable, in proportion to the respective numbers of Depositary
Shares evidenced by the Receipts held by such holders; provided, however,
that in case the Company or the Depositary shall be required to and shall
withhold from any cash dividend or other cash distribution in respect of the
Preferred Shares represented by the Receipts held by any holder an amount on
account of taxes, the amount made available for distribution or distributed in
respect of Depositary Shares represented by such Receipts subject to such
withholding shall be reduced accordingly. The Depositary shall distribute or
make available for distribution, as the case may be, only such amount, however,
as can be distributed without attributing to any holder of Receipts a fraction
of one cent, and any balance not so distributable shall be held by the
Depositary (without liability for interest thereon) and shall be added to and
be treated as part of the next sum received by the Depositary for distribution
to record holders of Receipts then outstanding.

SECTION 4.2.   Distributions Other Than
Cash. Whenever the Depositary shall receive any distribution other than
cash on the deposited Preferred Shares, the Depositary shall, subject to Section 3.2,
distribute to record holders of Receipts on the record date fixed pursuant to Section 4.4
such amounts of the securities or property received by it as are, as nearly as
practicable, in proportion to the respective numbers of Depositary Shares
evidenced by the Receipts held by such holders, in any manner that the
Depositary and the Company may deem equitable and practicable for accomplishing
such distribution. If, in the opinion of the Depositary after consultation with
the Company, such distribution cannot be made proportionately among such record
holders, or if for any other reason (including any requirement that the Company
or the Depositary withhold an amount on account of taxes), the Depositary
deems, after consultation with the Company, such distribution not to be
feasible, the Depositary may, with the approval of the Company, adopt such
method as it deems equitable and practicable 

 9
 

 

for the purpose of
effecting such distribution, including the sale (at public or private sale) of
the securities or property thus received or any part thereof, at such place or
places and upon such terms as it may deem proper. The net proceeds of any such
sale shall, subject to Section 3.2, be distributed or made available for
distribution, as the case may be, by the Depositary to record holders of
Receipts as provided by Section 4.1 in the case of a distribution received
in cash. The Company shall not make any distribution of such securities or
property to the holders of Receipts unless the Company shall have provided to
the Depositary an opinion of counsel stating that such securities or property
have been registered under the Securities Act or do not need to be registered.

SECTION 4.3.   Subscription Rights,
Preferences or Privileges. If the Company shall at any time offer or cause
to be offered to the persons in whose names deposited Preferred Shares are
registered on the books of the Company any rights, preferences or privileges to
subscribe for or to purchase any securities or any rights, preferences or
privileges of any other nature, such rights, preferences or privileges shall in
each such instance be made available by the Depositary to the record holders of
Receipts in such manner as the Company shall instruct (including by the issue
to such record holders of warrants representing such rights, preferences or
privileges); provided, however, that (a) if at the time of
issue or offer of any such rights, preferences or privileges the Company
determines upon advice of its legal counsel that it is not lawful or feasible
to make such rights, preferences or privileges available to the holders of
Receipts (by the issue of warrants or otherwise) or (b) if and to the
extent instructed by holders of Receipts who do not desire to exercise such
rights, preferences or privileges, the Depositary shall then, if so instructed
by the Company, and if applicable laws or the terms of such rights, preferences
or privileges so permit, sell such rights, preferences or privileges of such
holders at public or private sale, at such place or places and upon such terms
as it may deem proper. The net proceeds of any such sale shall, subject to Section 3.1
and Section 3.2, be distributed by the Depositary to the record holders of
Receipts entitled thereto as provided by Section 4.1 in the case of a
distribution received in cash. The Company shall not make any distribution of
such rights, preferences or privileges, unless the Company shall have provided
to the Depositary an opinion of counsel stating that such rights, preferences
or privileges have been registered under the Securities Act or do not need to
be registered.

If registration under the Securities Act of the
securities to which any rights, preferences or privileges relate is required in
order for holders of Receipts to be offered or sold the securities to which
such rights, preferences or privileges relate, the Company agrees that it will
promptly file a registration statement pursuant to the Securities Act with respect
to such rights, preferences or privileges and securities and use its best
efforts and take all steps available to it to cause such registration statement
to become effective sufficiently in advance of the expiration of such rights,
preferences or privileges to enable such holders to exercise such rights,
preferences or privileges. In no event shall the Depositary make available to
the holders of Receipts any right, preference or privilege to subscribe for or
to purchase any securities unless and until such a registration statement shall
have become effective or unless the offering and sale of such securities to
such holders are exempt from registration under the provisions of the
Securities Act and the Company shall have provided to the Depositary an opinion
of counsel to such effect.

If any other action under the law of any jurisdiction
or any governmental or administrative authorization, consent or permit is
required in order for such rights, preferences or 

 10
 

 

privileges to be made
available to holders of Receipts, the Company agrees to use its best efforts to
take such action or obtain such authorization, consent or permit sufficiently
in advance of the expiration of such rights, preferences or privileges to
enable such holders to exercise such rights, preferences or privileges.

SECTION 4.4.   Notice of Dividends; Fixing
of Record Date for Holders of Receipts. Whenever any cash dividend or other
cash distribution shall become payable, any distribution other than cash shall
be made, or any rights, preferences or privileges shall at any time be offered,
with respect to the deposited Preferred Shares, or whenever the Depositary
shall receive notice of (i) any meeting at which holders of such Preferred
Shares are entitled to vote or of which holders of such Preferred Shares are
entitled to notice or (ii) any election on the part of the Company to
redeem any such Preferred Shares, the Depositary shall in each such instance
fix a record date (which shall be the same date as the record date fixed by the
Company with respect to the Preferred Shares) for the determination of the
holders of Receipts who shall be entitled to receive such dividend,
distribution, rights, preferences or privileges or the net proceeds of the sale
thereof, to give instructions for the exercise of voting rights at any such
meeting or to receive notice of such meeting or whose Depositary Shares are to
be so redeemed.

SECTION 4.5.   Voting Rights. Upon
receipt of notice of any meeting at which the holders of deposited Preferred
Shares are entitled to vote, the Depositary shall, as soon as practicable
thereafter, mail to the record holders of Receipts a notice, which shall be
provided by the Company and which shall contain (i) such information as is
contained in such notice of meeting, (ii) a statement that the holders of
Receipts at the close of business on a specified record date fixed pursuant to Section 4.4
will be entitled, subject to any applicable provision of law, to instruct the
Depositary as to the exercise of the voting rights pertaining to the amount of
Preferred Shares represented by their respective Depositary Shares and (iii) a
brief statement as to the manner in which such instructions may be given. Upon
the written request of a holder of a Receipt on such record date, the
Depositary shall vote or cause to be voted the amount of Preferred Shares
represented by the Depositary Shares evidenced by such Receipt in accordance with
the instructions set forth in such request. To the extent such instructions
request the voting of a fractional interest of a share of deposited Preferred
Shares, the Depositary shall aggregate such interest with all other fractional
interests resulting from requests with the same voting instructions and shall
vote the number of whole votes resulting from such aggregation in accordance
with the instructions received in such requests. Each Preferred Share is
entitled to 10 votes and, accordingly, each Depositary Share is entitled to one
vote. The Company hereby agrees to take all reasonable action that may be
deemed necessary by the Depositary in order to enable the Depositary to vote
such Preferred Shares or cause such Preferred Shares to be voted. In the
absence of specific instructions from the holder of a Receipt, the Depositary
will abstain from voting to the extent of the Preferred Shares represented by
the Depositary Shares evidenced by such Receipt. The Depositary shall not be
required to exercise discretion in voting any Preferred Shares represented by
the Depositary Shares evidenced by such Receipt.

SECTION 4.6.   Changes Affecting Preferred
Shares and Reclassifications, Recapitalization, etc. Upon any change in par
or stated value, split-up, combination or any other reclassification of
Preferred Shares, or upon any recapitalization, reorganization, merger, amalgamation
or consolidation affecting the Company or to which it is a party or sale of all
or substantially all of the Company’s assets, the Depositary shall, upon the
instructions of the 

 11
 

 

Company:  (i) make such adjustments in (a) the
fraction of an interest represented by one Depositary Share in one Preferred
Share and (b) the ratio of the redemption price per Depositary Share to
the redemption price of a Preferred Share, in each case as may be required by
or as is consistent with the provisions of the Designating Amendment to fully
reflect the effects of such change in liquidation value, split-up, combination
or other reclassification of Shares, or of such recapitalization,
reorganization, merger, consolidation or sale and (ii) treat any shares or
other securities or property (including cash) that shall be received by the
Depositary in exchange for or upon conversion of or in respect of the Preferred
Shares as new deposited property under this Deposit Agreement, and Receipts
then outstanding shall thenceforth represent the proportionate interests of
holders thereof or the new deposited property so received in exchange for or
upon conversion or in respect of such Preferred Shares. In any such case the
Depositary may, in its discretion, with approval of the Company, execute and
deliver additional Receipts, or may call for the surrender of all outstanding
Receipts to be exchanged for new Receipts specifically describing such new
deposited property. Anything to the contrary herein notwithstanding, holders of
Receipts shall have the right from and after the effective date of any such
change in par or stated value, split-up, combination or other reclassification
of the Preferred Shares or any such recapitalization, reorganization, merger,
amalgamation or consolidation or sale of substantially all the assets of the
Company to surrender such Receipts to the Depositary with instructions to
convert, exchange or surrender the Preferred Shares represented thereby only
into or for, as the case may be, the kind and amount of shares and other
securities and property and cash into which the deposited Preferred Shares
evidenced by such Receipts might have been converted or for which such
Preferred Shares might have been exchanged or surrendered immediately prior to
the effective date of such transaction. The Company shall cause effective
provision to be made in the charter of the resulting or surviving corporation
(if other than the Company) for protection of such rights as may be applicable
upon exchange of the deposited Preferred Shares for securities or property or
cash of the surviving corporation in connection with the transactions set forth
above. The Company shall cause any such surviving corporation (if other than
the Company) expressly to assume the obligations of the Company hereunder.

SECTION 4.7.   Inspection of Reports. The
Depositary shall make available for inspection by holders of Receipts at the
Corporate Office and at such other places as it may from time to time deem
advisable during normal business hours any reports and communications received
from the Company that are both received by the Depositary as the holder of
deposited Preferred Shares and made generally available to the holders of the
Preferred Shares. In addition, the Depositary shall transmit certain notices
and reports to the holders of Receipts as provided in Section 5.5.

SECTION 4.8.   Lists of Receipt Holders.
Promptly upon request from time to time by the Company, the Depositary shall
furnish to the Company a list, as of a recent date specified by the Company, of
the names, addresses and holdings of Depositary Shares of all persons in whose
names Receipts are registered on the books of the Depositary.

SECTION 4.9.   Tax and Regulatory
Compliance. The Depositary shall be responsible for (i) preparation
and mailing of form 1099s for all open and closed accounts, (ii) foreign
tax withholding, (iii) withholding 28% (or any withholding as may be
required at the then applicable rate) of dividends from eligible holders of
Receipts if directed to do so by the Company or required to do so by applicable
law, (iv) mailing W-9 forms to new holders of Receipts without a 

 12
 

 

certified taxpayer
identification number, (v) processing certified W-9 forms, (vi) preparation
and filing of state information returns and (vii) escheatment services.

SECTION 4.10.   Withholding. Notwithstanding
any other provision of this Deposit Agreement, in the event that the Depositary
determines that any distribution in property is subject to any tax which the
Depositary is obligated by law 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 of Receipts entitled thereto in proportion to the number of Depositary
Shares held by them respectively.

ARTICLE V

THE DEPOSITARY AND THE COMPANY

SECTION 5.1.   Maintenance of Offices,
Agencies and Transfer Books by the Depositary and the Registrar. The
Depositary shall maintain at the Corporate Office facilities for the execution
and delivery, transfer, surrender and exchange, split-up, combination and
redemption of Receipts and deposit and withdrawal of Preferred Shares and at
the offices of the Depositary’s Agents, if any, facilities for the delivery,
transfer, surrender and exchange, split-up, combination and redemption of
Receipts and deposit and withdrawal of Preferred Shares, all in accordance with
the provisions of this Deposit Agreement.

The Depositary shall keep books at the Corporate
Office for the registration and transfer of Receipts, which books at all
reasonable times shall be open for inspection by the record holders of Receipts
as provided by applicable law. The Depositary may close such books, at any time
or from time to time, when deemed expedient by it in connection with the
performance of its duties hereunder.

If the Receipts or the Depositary Shares evidenced
thereby or the Preferred Shares represented by such Depositary Shares shall be
listed on the New York Stock Exchange, Inc. or any other stock exchange,
the Depositary may, with the approval of the Company, appoint a Registrar
(acceptable to the Company) for registration of such Receipts or Depositary
Shares in accordance with the requirements of such Exchange. Such Registrar
(which may be the Depositary if so permitted by the requirements of such
Exchange) may be removed and a substitute registrar appointed by the Depositary
upon the request or with the approval of the Company. If the Receipts, such
Depositary Shares or such Preferred Shares are listed on one or more other
stock exchanges, the Depositary will, at the request and expense of the
Company, arrange such facilities for the delivery, transfer, surrender,
redemption and exchange of such Receipts, such Depositary Shares or such
Preferred Shares as may be required by law or applicable stock exchange
regulations.

SECTION 5.2.   Prevention or Delay in
Performance by the Depositary, the Depositary’s Agents, the Registrar or the
Company. Neither the Depositary, any Depositary’s Agent, any Registrar nor
the Company shall incur any liability to any holder of any Receipt, if by 

 13
 

 

reason of any provision
of any present or future law or regulation thereunder of the United States of
America or of any other governmental authority or, in the case of the
Depositary, the Depositary’s Agent or the Registrar, by reason of any
provision, present or future, of the Articles of Incorporation or the
Designating Amendment or, in the case of the Company, the Depositary, the
Depositary’s Agent or the Registrar, by reason of any act of God or war or
other circumstance beyond the control of the relevant party, the Depositary,
the Depositary’s Agent, the Registrar or the Company shall be prevented or
forbidden from doing or performing any act or thing that the terms of this
Deposit Agreement provide shall be done or performed; nor shall the Depositary,
any Depositary’s Agent, any Registrar or the Company incur any liability to any
holder of a Receipt by reason of any nonperformance or delay, caused as
aforesaid, in the performance of any act or thing that the terms of this
Deposit Agreement provide shall or may be done or performed, or by reason of
any exercise of, or failure to exercise, any discretion provided for in this
Deposit Agreement.

SECTION 5.3.   Obligations of the
Depositary, the Depositary’s Agents, the Registrar and the Company. Neither
the Depositary, any Depositary’s Agent, any Registrar nor the Company assumes
any obligation or shall be subject to any liability under this Deposit
Agreement or any Receipt to holders of Receipts other than from acts or
omissions arising out of conduct constituting bad faith, negligence (in the
case of any action or inaction with respect to the voting of the deposited
Preferred Shares), gross negligence or willful misconduct in the performance of
such duties as are specifically set forth in this Deposit Agreement.

Neither the Depositary, any Depositary’s Agent, any
Registrar nor the Company shall be under any obligation to appear in, prosecute
or defend any action, suit or other proceeding with respect to the deposited
Preferred Shares, Depositary Shares or Receipts that in its reasonable opinion
may involve it in expense or liability unless indemnity reasonably satisfactory
to it against all expense and liability be furnished as often as may be
required.

Neither the Depositary, any Depositary’s Agent, any
Registrar nor the Company shall be liable for any action or any failure to act
by it in reliance upon the written advice of legal counsel or accountants, or
information provided by any person presenting Preferred Shares for deposit, any
holder of a Receipt or any other person believed by it in good faith to be
competent to give such information. The Depositary, any Depositary’s Agent, any
Registrar and the Company may each rely and shall each be protected in acting
upon any written notice, request, direction or other document believed by it in
good faith to be genuine and to have been signed or presented by the proper
party or parties.

In the event the Depositary shall receive conflicting
claims, requests or instructions from any holders of Receipts, on the one hand,
and the Company, on the other hand, the Depositary shall be entitled to act on
such claims, requests or instructions received from the Company, and shall be
entitled to the full indemnification set forth in Section 5.6 hereof in
connection with any action so taken.

The Depositary shall not be responsible for any
failure to carry out any instruction to vote any of the deposited Preferred
Shares or for the manner or effect of any such vote made, as long as any such
action or non-action is in good faith and does not result from negligence or
willful misconduct of the Depositary. The Depositary undertakes, and any
Registrar shall be required to 

 14
 

 

undertake, to perform
such duties and only such duties as are specifically set forth in this Deposit
Agreement, and no implied covenants or obligations shall be read into this
Agreement against the Depositary or any Registrar.

The Depositary, its parent, affiliate, or
subsidiaries, any Depositary’s Agent, and any Registrar may own, buy, sell or
deal in any class of securities of the Company and its affiliates and in
Receipts or Depositary Shares or become pecuniarily interested in any
transaction in which the Company or its affiliates may be interested or
contract with or lend money to or otherwise act as fully or as freely as if it
were not the Depositary or the Depositary’s Agent hereunder. The Depositary may
also act as transfer agent or registrar of any of the securities of the Company
and its affiliates or act in any other capacity for the Company or its
affiliates.

It is intended that neither the Depositary nor any
Depositary’s Agent shall be deemed to be an “issuer” of the securities under
the federal securities laws or applicable state securities laws, it being
expressly understood and agreed that the Depositary and any Depositary’s Agent
are acting only in a ministerial capacity as Depositary for the deposited
Preferred Shares; provided, however, that the Depositary agrees
to comply with all information reporting and withholding requirements
applicable to it under law or this Deposit Agreement in its capacity as
Depositary.

The Company agrees that it will register the deposited
Preferred Shares and the Depositary Shares if required by the applicable
securities laws.

SECTION 5.4.   Resignation and Removal of
the Depositary; Appointment of Successor Depositary. The Depositary may at
any time resign as Depositary hereunder by notice of its election 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 hereinafter
provided.

The Depositary may at any time be removed by the
Company by notice of such removal delivered to the Depositary, such removal to
take effect upon the appointment of a successor depositary and its acceptance
of such appointment as hereinafter provided.

In case at any time the Depositary acting hereunder
shall resign or be removed, the Company shall, within 60 days after the
delivery of the notice of resignation or removal, as the case may be, appoint a
successor depositary, which shall be a bank or trust company having its
principal office in the United States of America and having a combined capital
and surplus of at least $50,000,000. If a successor depositary shall not have
been appointed in 60 days, the resigning Depositary may petition a court of
competent jurisdiction to appoint a successor depositary. 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
and for all purposes shall be the Depositary under this Deposit Agreement, and
such predecessor, upon payment of all sums due it and on the written request of
the Company, shall promptly execute and deliver an instrument transferring to
such successor all rights and powers of such predecessor hereunder, shall duly
assign, transfer and deliver all rights, title and interest in the deposited
Preferred Shares and any 

 15
 

 

moneys or property held
hereunder to such successor and shall deliver to such successor a list of the
record holders of all outstanding Receipts. Any successor depositary shall
promptly mail notice of its appointment to the record holders of Receipts.

Any corporation into or with which the Depositary may
be merged, consolidated or converted shall be the successor of such Depositary
without the execution or filing of any document or any further act. Such
successor depositary may execute the Receipts either in the name of the
predecessor depositary or in the name of the successor depositary.

SECTION 5.5.   Notices, Reports and
Documents.   The Company agrees that
it will deliver to the Depositary, and the Depositary will, promptly after
receipt thereof, transmit to the record holders of Receipts, in each case at
the address recorded in the Depositary’s books, copies of all notices and
reports (including financial statements) required by law, by the rules of
any national securities exchange upon which the Preferred Shares, the
Depositary Shares or the Receipts are included for quotation or listed or by
the Articles of Incorporation and the Designating Amendment to be furnished by
the Company to holders of the deposited Preferred Shares and, if requested by
the holder of any Receipt, a copy of this Deposit Agreement, the form of
Receipt, the Designating Amendment and the form of Preferred Shares. Such transmission
will be at the Company’s expense and the Company will provide the Depositary
with such number of copies of such documents as the Depositary may reasonably
request. In addition, the Depositary will transmit to the record holders of
Receipts at the Company’s expense such other documents as may be requested by
the Company.

SECTION 5.6.   Indemnification by the
Company. The Company agrees to indemnify the Depositary, any Depositary’s
Agent and any Registrar against, and hold each of them harmless from, any
liability, costs and expenses (including reasonable attorneys’ fees) that may
arise out of, or in connection with, its acting as Depositary, Depositary’s
Agent or Registrar, respectively, under this Deposit Agreement and the
Receipts, except for any liability arising out of the willful misconduct, gross
negligence, negligence (in the case of any action or inaction with respect to
the voting of the deposited Preferred Shares) or bad faith on the part of any
such person or persons. The obligations of the Company set forth in this Section 5.6
shall survive any succession of any Depositary, Registrar or Depositary’s Agent
or termination of this Deposit Agreement.

SECTION 5.7.   Fees, Charges and Expenses.
No charges and expenses of the Depositary or any Depositary’s Agent hereunder
shall be payable by any person, except as provided in this Section 5.7. The
Company shall pay all transfer and other taxes and governmental charges arising
solely from the existence of this Deposit Agreement. The Company shall also pay
all fees and expenses of the Depositary in connection with the initial deposit
of the Preferred Shares and the initial issuance of the Depositary Shares
evidenced by the Receipts, any redemption of the Preferred Shares at the option
of the Company and all withdrawals of the Preferred Shares by holders of
Depositary Shares. If a holder of Receipts requests the Depositary to perform
duties not required under this Deposit Agreement, the Depositary shall notify
the holder of the cost of the performance of such duties prior to the
performance thereof. Such holder will be liable for the charges and expenses
related to such performance. All other fees and expenses of the Depositary and
any Depositary’s Agent hereunder and of any Registrar (including, in each case,
fees and expenses of counsel) incident to 

 16
 

 

the performance of their
respective obligations hereunder will be promptly paid as previously agreed
between the Depositary and the Company. The Depositary shall present its
statement for fees and expenses to the Company every month or at such other
intervals as the Company and the Depositary may agree.

ARTICLE VI

AMENDMENT AND TERMINATION

SECTION 6.1.   Amendment. The form of
the Receipts and any provision of this Deposit Agreement may at any time and
from time to time be amended by agreement between the Company and the
Depositary in any respect that they may deem necessary or desirable; provided,
however, that no such amendment (other than any change in the fees of any
Depositary, Registrar or Transfer Agent) which (i) shall materially and
adversely alter the rights of the holders of Receipts or (ii) would be
materially and adversely inconsistent with the rights granted to the holders of
the Preferred Shares pursuant to the Designating Amendment shall be effective
unless such amendment shall have been approved by the holders of at least a
majority of the Depositary Shares then outstanding. In no event shall any
amendment impair the right, subject to the provisions of Section 2.6 and Section 2.7
and Article III, of any holder of any Depositary Shares to surrender the
Receipt evidencing such Depositary Shares with instructions to the Depositary
to deliver to the holder the deposited Preferred Shares and all money and other
property, if any, represented thereby, except in order to comply with mandatory
provisions of applicable law. Every holder of an outstanding Receipt at the
time any such amendment becomes effective shall be deemed, by continuing to
hold such Receipt, to consent and agree to such amendment and to be bound by
this Deposit Agreement as amended thereby.

SECTION 6.2.   Termination. This
Deposit Agreement may be terminated by the Company upon not less than 30 days’
prior written notice to the Depositary if (i) such termination is
necessary to preserve the Company’s status as a real estate investment trust
under the Internal Revenue Code of 1986, as amended (or any successor
provisions) or (ii) the holders of a majority of the Preferred Shares
consent to such termination, whereupon the Depositary shall deliver or make
available to each holder of a Receipt, upon surrender of the Receipt held by
such holder, such number of whole or fractional shares of deposited Preferred
Shares that are represented by the Depositary Shares evidenced by such Receipt,
together with any other property held by the Depositary in respect of such
Receipt. In the event that this Deposit Agreement is terminated pursuant to
clause (i) of the immediately preceding sentence, the Company hereby
agrees to use its best efforts to list the Preferred Shares issued upon
surrender of the Receipt evidencing the Depositary Shares represented thereby
on a national securities exchange. This Deposit Agreement will automatically
terminate if (i) all outstanding Depositary Shares shall have been
redeemed pursuant to Section 2.3 or (ii) there shall have been made a
final distribution in respect of the deposited Preferred Shares in connection
with any liquidation, dissolution or winding up of the Company and such
distribution shall have been distributed to the holders of Receipts entitled
thereto.

 17
 

 

Upon the termination of this Deposit Agreement, the
Company shall be discharged from all obligations under this Deposit Agreement
except for its obligations to the Depositary, any Depositary’s Agent and any
Registrar under Section 5.6 and Section 5.7.

ARTICLE VII

MISCELLANEOUS

SECTION 7.1.   Counterparts. This
Deposit Agreement may be executed in any number of counterparts, and by each of
the parties hereto on separate counterparts, each of which counterparts, when
so executed and delivered, shall be deemed an original, but all such
counterparts taken together shall constitute one and the same instrument. Delivery
of an executed counterpart of a signature page to this Deposit Agreement
by telecopier shall be effective as delivery of a manually executed counterpart
of this Deposit Agreement. Copies of this Deposit Agreement shall be filed with
the Depositary and the Depositary’s Agents and shall be open to inspection
during business hours at the Corporate Office and the respective offices of the
Depositary’s Agents, if any, by any holder of a Receipt.

SECTION 7.2.   Exclusive Benefit of
Parties. This Deposit Agreement is for the exclusive benefit of the parties
hereto, and their respective successors hereunder, and shall not be deemed to
give any legal or equitable right, remedy or claim to any other person
whatsoever.

SECTION 7.3.   Invalidity of Provisions.
In case any one or more of the provisions contained in this Deposit Agreement
or in the Receipts should be or become invalid, illegal or unenforceable in any
respect, the validity, legality or enforceability of the remaining provisions
contained herein or therein shall in no way be affected, prejudiced or
disturbed thereby.

SECTION 7.4.   Notices. Any and all
notices to be given to the Company hereunder or under the Receipts shall be in
writing and shall be deemed to have been duly given if personally delivered or
sent by mail, or by telegram or facsimile transmission confirmed by letter, addressed
to the Company at:

	
  

  	
  DUKE REALTY CORPORATION

  
	
   

  	
  600 East 96th Street

  
	
   

  	
  Suite 100

  
	
   

  	
  Indianapolis, Indiana 46240

  
	
   

  	
  Attention: Matthew A. Cohoat

  
	
   

  	
  Telephone No.: (317) 808-6065

  

 

or at any other address
of which the Company shall have notified the Depositary in writing.

Any notices to be given to the Depositary hereunder or
under the Receipts shall be in writing and shall be deemed to have been duly
given if personally delivered or sent by mail, or by telegram or telex or telecopier
confirmed by letter, addressed to the Depositary at the Corporate Office.

 18
 

 

Any notices given to any record holder of a Receipt
hereunder or under the Receipts shall be in writing and shall be deemed to have
been duly given if personally delivered or sent by mail, or by telegram or
telex or telecopier confirmed by letter, addressed to such record holder at the
address of such record holder as it appears on the books of the Depositary or,
if such holder shall have filed with the Depositary in a timely manner a
written request that notices intended for such holder be mailed to some other
address, at the address designated in such request.

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

SECTION 7.5.   Depositary’s Agents. The
Depositary may from time to time appoint Depositary’s Agents to act in any
respect for the Depositary for the purposes of this Deposit Agreement and may
at any time appoint additional Depositary’s Agents and vary or terminate the
appointment of such Depositary’s Agents. The Depositary will notify the Company
of any such action.

SECTION 7.6.   Holders of Receipts Are
Parties. The holders of Receipts from time to time shall be deemed to be
parties to this Deposit Agreement and shall be bound by all of the terms and
conditions hereof and of the Receipts by acceptance of delivery thereof.

SECTION 7.7.   Governing Law. This
Deposit Agreement and the Receipts and all rights hereunder and thereunder and
provisions hereof and thereof shall be governed by, and construed in accordance
with, the law of the State of New York applicable to agreements made and to be
performed in said State.

SECTION 7.8.   Inspection of Deposit
Agreement and Designating Amendment. Copies of this Deposit Agreement and
the Designating Amendment shall be filed with the Depositary and the Depositary’s
Agents and shall be open to inspection during business hours at the Corporate
Office and the respective offices of the Depositary’s Agents, if any, by any
holder of any Receipt.

SECTION 7.9.   Headings. The headings
of articles and sections in this Deposit Agreement and in the form of the Receipt
set forth in Exhibit A hereto have been inserted for convenience only and
are not to be regarded as part of this Deposit Agreement or to have any bearing
upon the meaning or interpretation of any provision contained herein or in the
Receipts.

 19
 

 

IN WITNESS WHEREOF, Duke Realty Corporation and
American Stock Transfer & Trust Co. have duly executed this Deposit
Agreement as of the day and year first above set forth and all holders of
Receipts shall become parties hereto by and upon acceptance by them of delivery
of Receipts issued in accordance with the terms hereof.

	
  

  	
  DUKE REALTY CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Howard L. Feinsand

  
	
  Attest:

  	
   

  	
  Howard L. Feinsand,

  
	
   

  	
   

  	
  Executive Vice President, General Counsel

  
	
   

  	
   

  	
  and Corporate Secretary

  
	
  /s/ Douglas E.
  Greer

  	
   

  	
   

  
	
  Douglas E.
  Greer,

  	
   

  	
   

  
	
  Vice President,
  Legal and Assistant Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AMERICAN STOCK TRANSFER & TRUST CO.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Herbert J. Lemmer

  
	
  Attest:

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
  /s/ Susan Silber

  	
   

  	
   

  
	
  Assistant
  Secretary

  	
   

  	
   

  
				

 20
 

 

Exhibit A

The Depositary Shares evidenced by this Depositary
Receipt are subject to restrictions on ownership and transfer for the purpose
of the Company’s maintenance of its status as a Real Estate Investment Trust
under the Internal Revenue Code of 1986, as amended. In order to maintain such
status, the Company’s Articles of Amendment designating the terms of the 7.25% Series N
Cumulative Redeemable Preferred Shares imposes limitations on the number of
7.25% Series N Cumulative Redeemable Preferred Shares that may be owned by
any single person or affiliated group. All capitalized terms in this legend
have the meanings defined in such Articles of Amendment. Transfers in violation
of the restrictions described above shall be void ab
initio.

The Company will furnish to the holder hereof upon
request and without charge a complete written statement of the terms and
conditions of the 7.25% Series N Cumulative Redeemable Preferred Shares. Requests
for such statement may be directed to the Secretary of the Company.

	
  DR-

   

  CUSIP 264411 69 5

  This Receipt is
  transferable in

  New York City.

  See reverse for
  certain definitions.

  	
  [FORM OF
  FACE OF RECEIPT]

   

  CERTIFICATE FOR
  NOT MORE THAN 4,400,000 DEPOSITARY SHARES

   

  RECEIPT FOR
  DEPOSITARY SHARES,

  EACH REPRESENTING
  1/10 OF A 7.25% SERIES N CUMULATIVE

  REDEEMABLE
  PREFERRED SHARE

   

  DUKE REALTY
  CORPORATION

  (an Indiana
  corporation)

  	
   

  

 

American Stock Transfer & Trust Company, as
Depositary (the “Depositary”), hereby certifies that Cede & Co. is the
registered owner of
4,400,000 fully paid and non-assessable DEPOSITARY SHARES (“Depositary
Shares”), each Depositary Share representing 1/10 of one 7.25% Series N
Cumulative Redeemable Preferred Share, $0.01 par value per share (the “Shares”),
of Duke Realty Corporation, an Indiana corporation (the “Company”), on deposit
with the Depositary, subject to the terms and entitled to the benefits of the
Deposit Agreement dated as of June 30, 2006 (the “Deposit Agreement”),
among the Company, the Depositary and the holders from time to time of Receipts
for Depositary Shares. By accepting this Receipt, the holder hereof becomes a
party to and agrees to be bound by all the terms and conditions of the Deposit
Agreement. This Receipt shall not be valid or obligatory for any purpose or
entitled to any benefits under the Deposit Agreement unless it shall have been
executed by the Depositary by the manual or facsimile signature of a duly
authorized officer or, if a Registrar in respect of the Receipts (other than
the Depositary) shall have been appointed, by the manual signature of a duly
authorized officer of such Registrar.

Dated: June 30,
2006

	
   

  	
  American Stock
  Transfer & Trust Company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  

 21
 

 

[FORM OF REVERSE RECEIPT]

DUKE REALTY CORPORATION WILL FURNISH WITHOUT CHARGE TO
EACH REGISTERED HOLDER OF RECEIPTS WHO SO REQUESTS A COPY OF THE DEPOSIT
AGREEMENT AND A COPY OF THE DESIGNATING AMENDMENT WITH RESPECT TO THE SERIES N
CUMULATIVE REDEEMABLE PREFERRED SHARES OF DUKE REALTY CORPORATION. ANY SUCH
REQUEST SHALL BE ADDRESSED TO THE DEPOSITARY NAMED ON THE FACE OF THIS RECEIPT.

The following abbreviations when used in the
instructions on the face of this receipt shall be construed as though they were
written out in full according to applicable laws or regulations.

	
  TEN COM -

  	
   

  	
  as tenant in common

  	
   

  	
  UNIF GIFT MIN ACT - 

  	
   

  	
   Custodian

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TEN ENT -

  	
   

  	
  as tenants by the entireties

  	
   

  	
  Under Uniform Gifts to Minors Act 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  (State)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  JT TEN -

  	
   

  	
  as joint tenants with right of survivorship and not
  as tenants in common

  	
   

  	
   

  
													

 

Additional abbreviations may also be used though not in
the above list.

ASSIGNMENT

For value received, ____________ hereby sell(s), assign(s) and
transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING
NUMBER OF ASSIGNEE

 

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING
POSTAL ZIP CODE OF ASSIGNEE

 

 

 

____________ Depositary Shares represented by the
within Receipt, and do hereby irrevocably constitute and appoint

____________ Attorney to transfer the said Depositary
Shares on the books of the within named Depositary with full power of
substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE:

  	
   

  	
  The signature to the assignment must correspond with
  the name as written upon the face of this Receipt in every particular,
  without alteration or enlargement or any change whatever.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  	
   

  	
   

  
								

 

 22

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  
	
   

  
	
  DEFINITIONS

  
	
   

  
	
  Section 1.1.

  	
   

  	
  “Articles of
  Incorporation”

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.2.

  	
   

  	
  “Company”

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.3.

  	
   

  	
  “Corporate
  Office”

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.4.

  	
   

  	
  “Deposit
  Agreement”

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.5.

  	
   

  	
  “Depositary”

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.6.

  	
   

  	
  “Depositary
  Share”

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.7.

  	
   

  	
  “Depositary’s
  Agent”

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.8.

  	
   

  	
  “Designating
  Amendment”

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.9.

  	
   

  	
  “Preferred
  Shares”

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.10.

  	
   

  	
  “Receipt”

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.11.

  	
   

  	
  “record date”

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.12.

  	
   

  	
  “record holder”
  or “holder”

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.13.

  	
   

  	
  “Registrar”

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.14.

  	
   

  	
  “Securities Act”

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.15.

  	
   

  	
  “Transfer Agent”

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  
	
  FORM OF
  RECEIPTS, DEPOSIT OF PREFERRED SHARES,

  
	
  EXECUTION AND
  DELIVERY, TRANSFER,

  
	
  SURRENDER AND
  REDEMPTION OF RECEIPTS

  
	
   

  
	
  Section 2.1.

  	
   

  	
  Form and Transferability of Receipts

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.2.

  	
   

  	
  Deposit of Preferred Shares; Execution and Delivery
  of Receipts in Respect Thereof

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.3.

  	
   

  	
  Optional Redemption of Preferred Shares for Cash

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.4.

  	
   

  	
  Registration of Transfers of Receipts

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.5.

  	
   

  	
  Combinations and Split-ups of Receipts

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.6.

  	
   

  	
  Surrender of Receipts and Withdrawal of Preferred
  Shares

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.7.

  	
   

  	
  Limitations on Execution and Delivery, Transfer,
  Split-up, Combination, Surrender and Exchange of Receipts 

  	
   

  	
  7

  

 

 i
 

 

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  Section 2.8.

  	
   

  	
  Lost Receipts, etc.

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.9.

  	
   

  	
  Cancellation and Destruction of Surrendered Receipts

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CERTAIN
  OBLIGATIONS OF HOLDERS OF RECEIPTS AND THE COMPANY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
   

  	
  Filing Proofs, Certificates and Other Information

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.2.

  	
   

  	
  Payment of Fees and Expenses

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.3.

  	
   

  	
  Representations and Warranties as to Preferred
  Shares

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.4.

  	
   

  	
  Representation and Warranty as to Receipts and
  Depositary Shares

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE PREFERRED
  SHARES; NOTICES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
   

  	
  Cash Distributions

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.2.

  	
   

  	
  Distributions Other Than Cash

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.3.

  	
   

  	
  Subscription Rights, Preferences or Privileges

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.4.

  	
   

  	
  Notice of Dividends; Fixing of Record Date for Holders
  of Receipts

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.5.

  	
   

  	
  Voting Rights

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.6.

  	
   

  	
  Changes Affecting Preferred Shares and
  Reclassifications, Recapitalization, etc.

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.7.

  	
   

  	
  Inspection of Reports

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.8.

  	
   

  	
  Lists of Receipt Holders

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.9.

  	
   

  	
  Tax and Regulatory Compliance

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.10.

  	
   

  	
  Withholding

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE DEPOSITARY
  AND THE COMPANY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
   

  	
  Maintenance of Offices, Agencies and Transfer Books
  by the Depositary and the Registrar

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.2.

  	
   

  	
  Prevention or Delay in Performance by the
  Depositary, the Depositary’s Agents, the Registrar or the Company

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.3.

  	
   

  	
  Obligations of the Depositary, the Depositary’s
  Agents, the Registrar and the Company

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.4.

  	
   

  	
  Resignation and Removal of the Depositary;
  Appointment of Successor Depositary

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.5.

  	
   

  	
  Notices, Reports and Documents

  	
   

  	
  16

  

 

 ii
 

 

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  Section 5.6.

  	
   

  	
  Indemnification by the Company

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.7.

  	
   

  	
  Fees, Charges and Expenses

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AMENDMENT AND
  TERMINATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
   

  	
  Amendment

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.2.

  	
   

  	
  Termination

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
   

  	
  Counterparts

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.2.

  	
   

  	
  Exclusive Benefit of Parties

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.3.

  	
   

  	
  Invalidity of Provisions

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.4.

  	
   

  	
  Notices

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.5.

  	
   

  	
  Depositary’s Agents

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.6.

  	
   

  	
  Holders of Receipts Are Parties

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.7.

  	
   

  	
  Governing Law

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.8.

  	
   

  	
  Inspection of Deposit Agreement and Designating
  Amendment

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.9.

  	
   

  	
  Headings

  	
   

  	
  19

  

 

 iii

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]