Document:

Exhibit 4.1

 

MERCHANTS BANCORP

 

6.00% FIXED-TO-FLOATING RATE SERIES B NON-CUMULATIVE PERPETUAL PREFERRED STOCK

 

[FORM OF DEPOSIT AGREEMENT]

 

among MERCHANTS BANCORP,

 

COMPUTERSHARE INC.,

 

and

 

COMPUTERSHARE TRUST COMPANY, N.A.,

 

and

 

THE HOLDERS FROM TIME TO TIME OF

 

THE DEPOSITARY RECEIPTS DESCRIBED HEREIN

Dated as of August [   ], 2019

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
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Article I. DEFINED   TERMS
    	
 
    	
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Section 1.1   Definitions
    	
 
    	
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Article II.   APPOINTMENT OF DEPOSITORY; BOOK-ENTRY SYSTEM; FORM OF RECEIPTS; DEPOSIT   OF STOCK; EXECUTION AND DELIVERY; TRANSFER, SURRENDER AND REDEMPTION OF   RECEIPTS
    	
 
    	
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Section 2.1   Appointment of Depository
    	
 
    	
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Section 2.2   Book-Entry System; Form and Transfer of Receipts
    	
 
    	
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Section 2.3   Deposit of Stock; Execution and Delivery of Receipts
    	
 
    	
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Section 2.4   Registration of Transfer of Receipts
    	
 
    	
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Section 2.5   Split-ups and Combinations of Receipts; Surrender of Receipts and Withdrawal   of Stock
    	
 
    	
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Section 2.6   Limitations on Execution and Delivery, Transfer, Surrender and Exchange of   Receipts
    	
 
    	
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Section 2.7   Lost Receipts, etc.
    	
 
    	
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Section 2.8   Cancellation and Destruction of Surrendered Receipts
    	
 
    	
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Section 2.9   Redemption of Stock
    	
 
    	
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Article III.   CERTAIN OBLIGATIONS OF HOLDERS OF RECEIPTS AND THE CORPORATION
    	
 
    	
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Section 3.1   Filing Proofs; Certificates and Other Information
    	
 
    	
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Section 3.2   Payment of Taxes or Other Governmental Charges
    	
 
    	
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Section 3.3   Warranty as to Stock
    	
 
    	
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Section 3.4   Warranty as to Receipts
    	
 
    	
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Article IV. THE   DEPOSITED SECURITIES; NOTICES
    	
 
    	
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Section 4.1   Cash Distributions
    	
 
    	
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Section 4.2   Distributions Other than Cash, Rights, Preferences or Privileges
    	
 
    	
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Section 4.3   Subscription Rights, Preferences or Privileges
    	
 
    	
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Section 4.4   Notice of Dividends, etc.; Fixing Record Date for Holders of Receipts
    	
 
    	
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Section 4.5   Voting Rights
    	
 
    	
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Section 4.6   Changes Affecting Deposited Securities and Reclassifications,   Recapitalizations, etc.
    	
 
    	
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Section 4.7   Delivery of Reports
    	
 
    	
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Section 4.8   Lists of Receipt Holders
    	
 
    	
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Article V. THE   DEPOSITORY, THE DEPOSITORY’S AGENTS, THE REGISTRAR AND THE CORPORATION
    	
 
    	
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Section 5.1   Maintenance of Offices, Agencies and Transfer Books by the Depository;   Registrar; Depository’s Agents
    	
 
    	
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Section 5.2   Prevention of or Delay in Performance by the Depository, the Depository’s   Agents, the Registrar, the Transfer Agent or the Corporation
    	
 
    	
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Section 5.3   Obligations of the Depository, the Depository’s Agents, the Registrar, the   Transfer Agent and the Corporation
    	
 
    	
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Section 5.4   Resignation and Removal of the Depository; Appointment of Successor   Depository
    	
 
    	
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Section 5.5   Corporate Notices and Reports
    	
 
    	
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Section 5.6   Indemnification by the Corporation
    	
 
    	
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Section 5.7   Fees, Charges and Expenses
    	
 
    	
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Section 5.8   Tax Compliance
    	
 
    	
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Article VI.   AMENDMENT AND TERMINATION
    	
 
    	
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Section 6.1   Amendment
    	
 
    	
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Section 6.2   Termination
    	
 
    	
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Article VII.   MISCELLANEOUS
    	
 
    	
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Section 7.1   Counterparts
    	
 
    	
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Section 7.2   Exclusive Benefit of Parties
    	
 
    	
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Section 7.3   Invalidity of Provisions
    	
 
    	
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Section 7.4   Notices
    	
 
    	
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Section 7.5   Appointment of Registrar and Transfer Agent, Dividend Disbursing Agent and   Redemption Agent
    	
 
    	
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Section 7.6   Holders of Receipts Are Parties
    	
 
    	
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Section 7.7   Governing Law
    	
 
    	
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Section 7.9   Force Majeure
    	
 
    	
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Section 7.10   Confidentiality
    	
 
    	
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EXHIBIT A FORM OF FACE OF RECEIPT
    	
 
    	
A-1
    

 

ii

 

THIS DEPOSIT AGREEMENT dated as of August [   ], 2019, among (i) MERCHANTS BANCORP, an Indiana corporation and its successors (the “Corporation”), (ii) COMPUTERSHARE INC., a Delaware corporation (“Computershare”), and COMPUTERSHARE TRUST COMPANY, N.A., a federally chartered trust company and the wholly-owned subsidiary of Computershare (the “Trust Company”), and (iii) the Holders (as defined herein) from time to time of the Receipts (as defined herein) described in this Agreement.

 

RECITALS

 

WHEREAS, the parties desire to provide, as set forth in this Agreement, for the deposit of shares of the Corporation’s 6.00% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock, no par value, with a liquidation preference of $1,000 per share, from time to time with the Depository (as defined herein) for the purposes set forth in this Agreement and for the issuance hereunder of Receipts evidencing Depositary Shares (as defined herein) in respect of the Stock (as defined herein) so deposited; and

 

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

 

NOW, THEREFORE, in consideration of the foregoing premises, the parties hereto agree as follows:

 

ARTICLE I.
 DEFINED TERMS

 

Section 1.1  Definitions.

 

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

 

“Agreement” shall mean this Agreement, as amended, supplemented or otherwise modified from time to time in accordance with the terms hereof.

 

“Articles” shall mean the Articles of Amendment filed with the Secretary of State of the State of Indiana establishing the Stock as a series of preferred stock of the Corporation.

 

“Computershare” shall have the meaning set forth in the Preamble of this Agreement.

 

“Corporation” shall have the meaning set forth in the Preamble of this Agreement.

 

“Depository” shall mean, collectively, Computershare and the Trust Company, and any successor as depository hereunder.

 

“Depositary Shares” shall mean the depositary shares, each representing 1/40th of a share of the Stock and evidenced by a Receipt.

 

“Depository’s Agent” shall mean an agent appointed by the Depository pursuant to Section 5.1 hereof.

 

“Depository’s Office” shall mean the designated office of the Depository, at which at any particular time its depositary receipt business shall be administered.

 

“person” shall mean any natural person, partnership, joint venture, firm, corporation, limited liability company, limited liability partnership, unincorporated association, trust or other entity, and shall include any successor (by merger or otherwise) of the foregoing.

 

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“Receipt” shall mean one of the depositary receipts issued hereunder, substantially in the form set forth as Exhibit A hereto, whether in definitive or temporary form, and evidencing the number of Depositary Shares held of record by the Record Holder of those Depositary Shares and shall include the DTC Receipt, as defined in Section 2.2 hereof, where appropriate.

 

“Record Holder” or “Holder” as applied to a Receipt shall mean the person in whose name such Receipt is registered on the books of the Depository maintained for such purpose.

 

“Redemption Date” shall have the meaning set forth in Section 2.9 of this Agreement.

 

“Registrar” shall mean the Trust Company or such other successor bank or trust company which shall be appointed by the Corporation to register ownership and transfers of Receipts as herein provided, and, if a successor Registrar shall be so appointed, references herein to “the books” of or maintained by the Registrar shall be deemed, as applicable, to refer as well to the register maintained by such successor Registrar for such purpose.

 

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

 

“Signature Guarantee” shall have the meaning set forth in Section 2.4 of this Agreement.

 

“Stock” shall mean the shares of the Corporation’s 6.00% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock, no par value, with a liquidation preference of $1,000 per share, designated in the Articles.

 

“Transfer Agent” shall mean the Trust Company or such other successor bank or trust company which shall be appointed by the Corporation to transfer the Receipts and the deposited Stock.

 

“Trust Company” shall have the meaning set forth in the Preamble of this Agreement.

 

ARTICLE II.
 APPOINTMENT OF DEPOSITORY; BOOK-ENTRY SYSTEM; FORM OF RECEIPTS; 
 DEPOSIT OF STOCK; EXECUTION AND DELIVERY; TRANSFER, 
 SURRENDER AND REDEMPTION OF RECEIPTS

 

Section 2.1  Appointment of Depository.

 

The Corporation hereby appoints Computershare and Trust Company, together, as depository for the Stock, and each of Computershare and Trust Company hereby accepts such appointment and agrees to perform the same in accordance with the express terms and conditions set forth in this Agreement.

 

Section 2.2  Book-Entry System; Form and Transfer of Receipts.

 

The Corporation and the Depository shall make application to The Depository Trust Company (“DTC”) for acceptance of all of the Receipts for its book-entry settlement system. The Corporation hereby appoints the Depository acting through any authorized officer thereof as its attorney-in-fact, with full power to delegate, for purposes of executing any agreements, certifications or other instruments or documents necessary or desirable in order to effect the acceptance of such Receipts for DTC eligibility. So long as the Receipts are eligible for book-entry settlement with DTC, unless otherwise required by law, all Depositary Shares with book-entry settlement through DTC shall be represented by one or more receipts (the “DTC Receipt”), which shall be deposited with DTC (or its designee) evidencing all such Depositary Shares and registered in the name of the nominee of DTC (initially expected to be Cede & Co.). The Depository or such other entity as is agreed to by DTC may hold the DTC Receipt as custodian for DTC. Ownership of beneficial interests in the DTC Receipt shall be shown on, and the transfer of such ownership shall be effected through, records maintained by (i) DTC or its nominee for such DTC Receipt or (ii) institutions that have accounts with DTC. The DTC Receipt shall bear such legend or legends as may be required by DTC in order for it to accept the Depositary Shares for its book-entry settlement system.

 

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If DTC subsequently ceases to make its book-entry settlement system available for the Receipts, the Corporation may instruct the Depository regarding making other arrangements for book-entry settlement. If the Receipts are not eligible for book-entry form, the Depository shall provide written instructions to DTC to deliver the DTC Receipt to the Depository for cancellation and the Corporation shall instruct the Depository to deliver to the beneficial owners of the Depositary Shares previously evidenced by the DTC Receipt definitive Receipts in physical form evidencing such Depositary Shares.

 

Beneficial owners of Depositary Shares through DTC will not be entitled to receive Receipts in physical, certificated form or have Depositary Shares registered in their name, except as described below.

 

The DTC Receipt shall be exchangeable for definitive Receipts only if (i) DTC notifies the Corporation at any time that it is unwilling or unable to continue to make its book-entry settlement available for the Receipts and a successor to DTC is not appointed by the Corporation within 90 days of the date the Corporation is so informed in writing, (ii) DTC notifies the Corporation at any time that it has ceased to be a clearing agency registered under applicable law and a successor to DTC is not appointed within 90 days of the date the Corporation is so informed in writing, or (iii) the Corporation in its sole discretion notifies the Depository in writing that the DTC Receipt shall be exchangeable for definitive Receipts. If beneficial owners of interests in Depositary Shares are entitled to exchange such interests for definitive Receipts as the result of an event described in clause (i), (ii) or (iii) of the preceding sentence, then without unnecessary delay but in any event not later than the earliest date on which such beneficial interests may be so exchanged, upon receipt by the Depository of the DTC Receipt for cancellation and any other necessary documentation, the Depository is hereby directed to and shall execute and deliver to the beneficial owners of the Depositary Shares previously evidenced by the DTC Receipt definitive Receipts in physical form evidencing such Depositary Shares and to make appropriate entries in the register with respect thereto. Notwithstanding any other provision herein to the contrary, delivery of shares of Stock and other property in connection with the withdrawal or redemption of Depositary Shares evidenced by a DTC Receipt will be made through DTC and in accordance with its procedures, unless the holder of the relevant DTC Receipt otherwise requests and such request is reasonably acceptable to the Depository and the Corporation.

 

Receipts shall be in denominations of any number of whole Depositary Shares. The Corporation shall deliver to the Depository from time to time such quantities of Receipts as the Depository may request to enable the Depository to perform its obligations under this Agreement.

 

The DTC Receipt and definitive Receipts, if any, shall be substantially in the form set forth in Exhibit A annexed to this Agreement and incorporated herein by reference, with appropriate insertions, modifications and omissions, as hereinafter provided and shall be engraved or otherwise prepared so as to comply with applicable rules of any securities exchange on which the Depositary Shares are then listed. In the case of any of the events described above resulting in the issuance of definitive Receipts in exchange for the DTC Receipt, the Depository, pending preparation of definitive Receipts and upon the written order of the Corporation, delivered in compliance with Section 2.3 hereof, shall execute and deliver temporary Receipts which may be printed, lithographed 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 Corporation and the Depository will cause definitive Receipts to be prepared without unreasonable delay. After the preparation of definitive Receipts, the temporary Receipts shall be exchangeable by the Holder for definitive Receipts upon surrender of the temporary Receipts at an office described in the first paragraph of Section 2.3 hereof, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Receipts, the Depository 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 Corporation’s expense and without any charge therefor to the Holder or the Depository. Until so exchanged, the temporary Receipts shall in all respects be entitled to the same benefits under this Agreement as definitive Receipts.

 

Receipts shall be executed by the Depository by the manual or facsimile signature of a duly authorized officer of the Depository; provided that, if a Registrar for the Receipts (other than the Trust Company) shall have been appointed, such Receipts shall also be countersigned by manual or facsimile signature of a duly authorized officer of such Registrar. No Receipt shall be entitled to any benefits under this Agreement or be valid or obligatory for any purpose unless it shall have been executed as described in the preceding sentence. The Registrar shall record on its

 

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books each Receipt so signed and delivered as hereinafter provided. Receipts bearing the manual or facsimile signature of a duly authorized signatory of the Depository who was at any time a proper and duly authorized signatory of the Depository shall bind the Depository, notwithstanding that such signatory ceased to hold such office prior to the delivery of such Receipts or did not hold such office on the date of issuance of such receipts.

 

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 Agreement all as may be reasonably required by the Corporation or required to comply with any applicable law or any regulation thereunder or with the rules and regulations of any securities exchange upon which the Stock, 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.

 

Title to Depositary Shares evidenced by a Receipt which is properly endorsed, or accompanied by a duly executed instrument of transfer, shall be transferable by delivery with the same effect as in the case of a negotiable instrument; provided, that until transfer of any particular Receipt shall be registered on the books of the Registrar as provided in Section 2.4 hereof, the Depository 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 distributions of dividends or other distributions or payments, to exercise any redemption or voting rights or to receive any notice provided for in this Agreement and for all other purposes.

 

Section 2.3  Deposit of Stock; Execution and Delivery of Receipts.

 

Subject to the terms and conditions of this Agreement, the Corporation may from time to time deposit shares of Stock under this Agreement by delivery to the Depository, including via electronic book-entry, for such shares of Stock to be deposited (or in such other manner as may be agreed to by the Corporation and the Depository), properly endorsed or accompanied, if required by the Depository, by a duly executed instrument of transfer or endorsement, in form satisfactory to the Depository, together with (i) all such certifications as may be required by the Depository in accordance with the provisions of this Agreement, including the resolutions of the Board of Directors of the Corporation or a committee of the Board of Directors, as certified by the Secretary or any Assistant Secretary of the Corporation on the date thereof as being complete, accurate and in effect, relating to the issuance and sale of the Stock, (ii) an opinion of counsel to the Corporation addressed to the Depository containing opinions, or a letter of counsel to the Corporation authorizing reliance on such counsel’s opinions delivered to the underwriters named therein, relating to, (A) the existence and good standing of the Corporation, (B) the due authorization of the Depositary Shares and the status of the Depositary Shares as validly issued, fully paid and non-assessable, and (C) the effectiveness of any registration statement under the Securities Act relating to the Depositary Shares or whether exemption from such registration is applicable, and (iii) a written order of the Corporation, directing the Depository 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 number of Depositary Shares representing such deposited Stock. Shares of deposited Stock shall be held by the Depository in an account to be established by the Depository at the Depository’s Office, or at such other place or places as the Depository shall determine. As Registrar and Transfer Agent for the deposited Stock, the Trust Company will reflect changes in the number of shares of deposited Stock held by it by notation, book-entry or other appropriate method.

 

Upon receipt by the Depository of shares of Stock deposited in accordance with the provisions of this Section 2.3 hereof, together with the other documents required as above specified, and upon registering the Stock on the books of the Corporation (or its duly appointed Transfer Agent) in the name of the Depository or its nominee, the Depository, subject to the terms and conditions of this Agreement, shall execute and deliver to, or upon the order of, the person or persons named in the written order delivered to the Depository referred to in the first paragraph of this Section 2.3, a Receipt or Receipts evidencing in the aggregate the number of Depositary Shares representing the Stock so deposited and registered in such name or names as may be requested by such person or persons. The Depository shall execute and deliver such Receipt or Receipts at the Depository’s Office or such other offices, if any, as the Depository may designate. Delivery at other offices shall be at the risk and expense of the person requesting such delivery.

 

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Section 2.4  Registration of Transfer of Receipts.

 

Subject to the terms and conditions of this Agreement, the Trust Company, as Registrar and Transfer Agent for the Receipts, 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 duly executed instrument of transfer, including a guarantee of the signature thereon from an eligible guarantor institution participating in a signature guarantee program pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended (the “Signature Guarantee”), and any other evidence of authority as may be reasonably required by the Trust Company (or successor Registrar or Transfer Agent). Thereupon, the Depository shall execute a new Receipt or Receipts evidencing the same aggregate number of Depositary Shares as those evidenced by the Receipt or Receipts surrendered and deliver such new Receipt or Receipts to or upon the order of the person entitled thereto.

 

Section 2.5  Split-ups and Combinations of Receipts; Surrender of Receipts and Withdrawal of Stock.

 

Upon surrender of a Receipt or Receipts at the Depository’s Office or at such other offices as the Depository may designate for the purpose of effecting a split-up or combination of such Receipt or Receipts, and subject to the terms and conditions of this Agreement, the Depository shall execute a new Receipt or Receipts in the authorized denomination or denominations requested, evidencing the aggregate number of Depositary Shares evidenced by the Receipt or Receipts surrendered, and shall deliver such new Receipt or Receipts to or upon the order of the Holder of the Receipt or Receipts so surrendered.

 

Any Holder of a Receipt or Receipts may withdraw the number of whole shares of Stock and all money represented thereby by surrendering such Receipt or Depositary Shares represented by the Receipts at the Depository’s Office or at such other offices as the Depository may designate for such withdrawals; provided, that a holder of a Receipt or Receipts may not withdraw such Stock (or money, if any, represented thereby) which has previously been called for redemption. If such holder’s Depositary Shares are being held by DTC or its nominee, DTC shall be deemed the holder hereunder for all purposes. It shall be the duty of the DTC participant or the beneficial owner to request DTC to withdraw from the book-entry system the number of Depositary Shares specified above. Upon such surrender, upon payment of the fee of the Depository for the surrender of Receipts to the extent provided in Section 5.7 and payment of all taxes and governmental charges in connection with such surrender and withdrawal of Stock, and subject to the terms and conditions of this Agreement, the Depository shall deliver to such Holder, or to the person or persons designated by such Holder as hereinafter provided, the number of whole shares of Stock and all money represented by the Receipt or Receipts, or Depositary Shares represented by such Receipt or Receipts, so surrendered for withdrawal, but Holders of such whole shares of Stock will not thereafter be entitled to deposit such Stock hereunder or to receive a Receipt evidencing Depositary Shares therefor. If a Receipt delivered by the Holder to the Depository 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 shares of Stock to be withdrawn, the Depository shall at the same time, in addition to such number of whole shares of Stock and such money to be so withdrawn, deliver to such Holder, or subject to Section 2.4 hereof upon his order, a new Receipt evidencing such excess number of Depositary Shares; provided, that the Depository shall not issue any Receipt evidencing a fractional Depositary Share.

 

Delivery of the Stock and money being withdrawn may be made by the delivery of such certificates, documents of title and other instruments as the Depository may deem appropriate (or in such other manner as may be agreed to by the Corporation and the Depository), which, if required by the Depository, shall be properly endorsed or accompanied by proper instruments of transfer including, but not limited to, a Signature Guarantee.

 

If the Stock and the money being withdrawn are to be delivered to a person or persons other than the Record Holder of the related Receipt or Receipts being surrendered for withdrawal of such Stock, such Holder shall execute and deliver to the Depository a written order so directing the Depository, and the Depository may require that the Receipt or Receipts surrendered by such Holder for withdrawal of such shares of Stock be properly endorsed in blank or accompanied by a duly executed instrument of transfer in blank.

 

Delivery of the Stock and the money represented by Receipts surrendered for withdrawal shall be made by the Depository at the Depository’s Office, except that, at the written request, sole 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.

 

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Section 2.6  Limitations on Execution and Delivery, Transfer, Surrender and Exchange of Receipts.

 

As a condition precedent to the execution and delivery, registration of transfer, split-up, combination, surrender or exchange of any Receipt, the Depository, any of the Depository’s Agents or the Corporation may require payment to it of a sum sufficient for the payment (or, in the event that the Depository or the Corporation shall have made such payment, the reimbursement to it) of any charges or expenses payable by the Holder of a Receipt pursuant to Section 3.2 and Section 5.7 hereof, may require the production of evidence satisfactory to it as to the identity and genuineness of any signature, including a Signature Guarantee, and may also require compliance with such regulations, if any, as the Depository or the Corporation may establish consistent with the provisions of this Agreement and applicable law and as may be required by any securities exchange on which the Stock, the Depositary Shares or the Receipts may be listed.

 

The deposit of the Stock may be refused, the delivery of Receipts against Stock may be suspended, the registration of transfer of Receipts may be refused and the registration of transfer, surrender or exchange of outstanding Receipts may be suspended (i) during any period when the register of shareholders of the Corporation is closed or (ii) if any such action is deemed necessary or advisable by the Depository, any of the Depository’s Agents or the Corporation at any time or from time to time because of any requirement of law or of any government or governmental body or commission or under any provision of this Agreement.

 

Section 2.7  Lost Receipts, etc.

 

If any Receipt is lost, stolen, mutilated or destroyed, absent notice to the Corporation or the Depository that such certificates have been acquired by a protected purchaser, the Corporation may, upon receipt by the Depository of an open penalty surety bond satisfactory to it and holding it and the Corporation harmless, cause to be issued, in a form mutually agreed to by the Depository and the Corporation, a new Receipt of like denomination, tenor and date as the Receipt so lost, stolen, mutilated or destroyed, and countersigned by the Depository. Any such new Receipt shall constitute a substitute contractual obligation of the Corporation, whether or not the allegedly lost, stolen, mutilated or destroyed Receipt shall be at any time enforceable by anyone. The Depository may, at its option, countersign replacement Receipts for mutilated certificates upon presentation thereof without such indemnity.

 

Section 2.8  Cancellation and Destruction of Surrendered Receipts.

 

All Receipts surrendered to the Depository or any of the Depository’s Agents shall be cancelled by the Depository.

 

Except as prohibited by applicable law or regulation, the Depository is authorized and directed to destroy all Receipts so cancelled.

 

Section 2.9  Redemption of Stock.

 

Whenever the Corporation shall be permitted and shall elect to redeem shares of Stock in accordance with the terms of the Articles, it shall (unless otherwise agreed to in writing with the Depository) give or cause to be given to the Depository, not less than 35 days and not more than 60 days prior to the Redemption Date (as defined below), written notice of the date of such proposed redemption of Stock and of the number of such shares held by the Depository to be so redeemed and the applicable redemption price, which notice shall be accompanied by a certificate from the Corporation stating that such redemption of Stock is in accordance with the provisions of the Articles. On the Redemption Date, provided that the Corporation shall then have paid or caused to be paid in full to Computershare the redemption price of the Stock to be redeemed in accordance with the provisions of the Articles, the Depository shall redeem the number of Depositary Shares representing such Stock. The Depository shall provide notice of the Corporation’s redemption of Stock and the proposed simultaneous redemption of the number of Depositary Shares representing the Stock to be redeemed by reasonably acceptable transmission method, as determined by the Depository, not less than 30 days and not more than 60 days prior to the date fixed for redemption of such Stock and Depositary Shares (the “Redemption Date”), to the Record Holders of the Receipts evidencing the Depositary Shares to be so redeemed at their respective last addresses as they appear on the records of the Depository; but neither failure to provide any notice of redemption of Depositary Shares to one or more Holders nor any defect in any notice of

 

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redemption of Depositary Shares to one or more Holders shall affect the sufficiency of the proceedings for redemption as to the other Holders. Each notice shall be prepared by the Corporation and shall state: (i) the Redemption Date; (ii) the redemption price; (iii) if fewer than all Depositary Shares are to be redeemed, the number of Depositary Shares to be redeemed; and (iv) the manner in which holders of the Depositary Shares called for redemption may obtain payment of the redemption price in respect to those Depositary Shares. In case less than all the outstanding Depositary Shares are to be redeemed, the Depositary Shares to be so redeemed shall be selected in accordance with the Articles.

 

Notice having been provided by the Depository as aforesaid, from and after the Redemption Date (unless the Corporation shall have failed to provide the funds necessary to redeem the Stock evidenced by the Depositary Shares called for redemption) (i) the Depositary Shares being redeemed from such proceeds shall no longer be outstanding for any purpose, (ii) dividends on the shares of Stock so called for redemption shall cease to accrue from and after such date, (iii) all rights of the Holders of Receipts evidencing such Depositary Shares (except the right to receive the redemption price, without interest) shall, to the extent of such Depositary Shares, terminate, and (iv) upon surrender in accordance with such redemption notice of the Receipts evidencing any such Depositary Shares called for redemption (properly endorsed or assigned for transfer, if the Depository or applicable law shall so require), such Depositary Shares shall be redeemed by Computershare at a redemption price per Depositary Share equal to 1/40th of the redemption price per share of Stock so redeemed plus all money represented by such Depositary Shares, including, if required by the provisions of the Articles, all amounts paid by the Corporation in respect of dividends which on the Redemption Date have been declared on the shares of Stock to be so redeemed and have not theretofore been paid.

 

If fewer than all of the Depositary Shares evidenced by a Receipt are called for redemption, the Depository will deliver to the Holder of such Receipt upon its surrender to the Depository, together with payment of the redemption price for any 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; provided, however, that the Depository shall not issue any Receipt evidencing a fractional Depositary Share and cash will be payable in respect of fractional interests.

 

Computershare shall, to the extent permitted by law, release or repay to the Corporation any funds deposited by or for the account of the Corporation for the purpose of redeeming any Depositary Shares that remain unclaimed at the end of two years from the applicable Redemption Date, without further action necessary on the part of the Corporation.

 

All funds received by Computershare under this Agreement that are to be distributed or applied by Computershare in the performance of services (the “Funds”) shall be held by Computershare as agent for the Corporation and deposited in one or more bank accounts to be maintained by Computershare in its name as agent for the Corporation. Until paid pursuant to this Agreement, Computershare may hold or invest the Funds through such accounts in: (i) obligations of, or guaranteed by, the United States of America, (ii) commercial paper obligations rated A-1 or P-1 or better by Standard & Poor’s Corporation (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”), respectively, (iii) money market funds that comply with Rule 2a-7 of the Investment Company Act of 1940, as amended, or (iv) demand deposit accounts, short-term certificates of deposit, bank repurchase agreements or bankers’ acceptances, of commercial banks with Tier 1 capital exceeding $1 billion or with an average rating above investment grade by S&P (LT Local Issuer Credit Rating), Moody’s (Long Term Rating) and Fitch Ratings, Inc. (LT Issuer Default Rating) (each as reported by Bloomberg Finance L.P.). Computershare shall have no responsibility or liability for any diminution of the Funds that may result from any deposit or investment made by Computershare in accordance with this paragraph, including any losses resulting from a default by any bank, financial institution or other third party. Computershare may from time to time receive interest, dividends or other earnings in connection with such deposits or investments. Computershare shall not be obligated to pay such interest, dividends or earnings to the Corporation, any holder or any other party.

 

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ARTICLE III.
  CERTAIN OBLIGATIONS OF HOLDERS OF RECEIPTS AND THE CORPORATION

 

Section 3.1  Filing Proofs; Certificates and Other Information.

 

Any Holder of a Receipt may be required from time to time to file proof of residence, or other matters or other information, to execute certificates and to make such representations and warranties as the Depository or the Corporation may reasonably deem necessary or proper. The Depository or the Corporation may withhold the delivery, or delay the registration of transfer or redemption, of any Receipt or the withdrawal of the Stock represented by the Depositary Shares and evidenced by a Receipt or 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 or such certificates are executed or such representations and warranties are made.

 

Section 3.2  Payment of Taxes or Other Governmental Charges.

 

Holders of Receipts shall be obligated to make payments to the Depository of certain charges and expenses, as provided in Section 5.7 hereof. Registration of transfer of any Receipt or any withdrawal of Stock and all money represented by the Depositary Shares evidenced by such Receipt may be refused until any such payment due is made, and any dividends, interest payments or other distributions may be withheld or any part of or all the Stock represented by the Depositary Shares evidenced by such Receipt and not theretofore sold may be sold for the account of the Holder thereof (after attempting by reasonable means to notify such Holder prior to such sale), and such dividends, interest payments or other distributions or the proceeds of any such sale may be applied to any payment of such charges or expenses, the Holder of such Receipt remaining liable for any deficiency.

 

Section 3.3  Warranty as to Stock.

 

The Corporation hereby represents and warrants that the Stock, when issued, will be duly authorized, validly issued, fully paid and nonassessable. Such representation and warranty shall survive the deposit of the Stock and the issuance of the related Receipts.

 

Section 3.4  Warranty as to Receipts.

 

The Corporation hereby represents and warrants that the Receipts, when issued, will represent legal and valid interests in the Depositary Shares, and each Depositary Share will represent one 1/40th interest in a share of deposited Stock. Such representation and warranty shall survive the deposit of the Stock and the issuance of the Receipts.

 

ARTICLE IV.
  THE DEPOSITED SECURITIES; NOTICES

 

Section 4.1  Cash Distributions.

 

Whenever Computershare, as distribution agent, shall receive any cash dividend or other cash distribution on the Stock, Computershare shall, subject to Section 3.1 and Section 3.2 hereof, distribute to Record Holders of Receipts on the record date fixed pursuant to Section 4.4 hereof such amounts of such dividend or distribution as are, as nearly as practicable, in proportion to the respective numbers of Depositary Shares evidenced by the Receipts held by such Holders; provided, that in case the Corporation or Computershare shall be required to withhold, and shall withhold, from any cash dividend or other cash distribution in respect of the Stock an amount on account of taxes, or as otherwise required by law, regulation or court process, the amount made available for distribution or distributed in respect of Depositary Shares shall be reduced accordingly. In the event that the calculation of any such cash dividend or other cash distribution to be paid to any Record Holder on the aggregate number of Depositary Shares held by such Record Holder results in an amount that is a fraction of a cent and that fraction of a cent is equal to or greater than $0.005, the amount Computershare shall distribute to such Record Holder shall be rounded up to the next highest whole cent; otherwise, such fractional amount shall be disregarded by the Depository and shall be added to and be treated as part of the next succeeding distribution.

 

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Each Holder of a Receipt shall provide Computershare with its certified tax identification number on a properly completed Form W-8 or W-9, as may be applicable. Each Holder of a Receipt acknowledges that, in the event of non-compliance with the preceding sentence, the Internal Revenue Code of 1986, as amended, may require withholding by Computershare of a portion of any of the distributions to be made hereunder.

 

Section 4.2  Distributions Other than Cash, Rights, Preferences or Privileges.

 

Whenever Computershare shall receive any distribution other than cash, rights, preferences or privileges upon the Stock, Computershare shall, subject to Section 3.1 and Section 3.2 hereof, distribute to Record Holders of Receipts on the record date fixed pursuant to Section 4.4 hereof 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 such Receipts held by such Holders, in any manner that Computershare may deem equitable and practicable for accomplishing such distribution. If in the opinion of Computershare such distribution cannot be made proportionately among such Record Holders, or if for any other reason (including any requirement that the Corporation or Computershare withhold an amount on account of taxes or governmental charges) Computershare deems, after consultation with the Corporation, such distribution not to be feasible, Computershare may, with the approval of the Corporation, adopt such method as it deems equitable and practicable 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, in a commercially reasonable manner. The net proceeds of any such sale shall, subject to Section 3.1 and Section 3.2 hereof, be distributed or made available for distribution, as the case may be, by Computershare to Record Holders of Receipts as provided by Section 4.1 hereof in the case of a distribution received in cash. The Corporation shall not make any distribution of securities to Computershare, and Computershare shall not make any distribution of such securities to the Holders of Receipts, unless the Corporation shall have provided an opinion of counsel stating that such securities or property have been registered under the Securities Act or do not need to be registered in connection with such distributions.

 

Section 4.3  Subscription Rights, Preferences or Privileges.

 

If the Corporation shall at any time offer or cause to be offered to the persons in whose names the deposited Stock is recorded on the books of the Corporation 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 communicated to the Depository and thereafter made available by the Depository to the Record Holders of Receipts in such manner as the Depository (in consultation with the Corporation) may determine, either by the issue to such Record Holders of warrants representing such rights, preferences or privileges or by such other method as may be approved by the Depository in its discretion with the approval of the Corporation; provided, however, that (i) if at the time of issue or offer of any such rights, preferences or privileges the Depository or the Corporation determines that it is not lawful or (after consultation with the Corporation) not feasible to make such rights, preferences or privileges available to Holders of Receipts by the issue of warrants or otherwise, or (ii) if and to the extent so instructed by Holders of Receipts who do not desire to exercise such rights, preferences or privileges, then Computershare, in its discretion (with approval of the Corporation, in any case where the Depository has determined that it is not feasible to make such rights, preferences or privileges available), may, if applicable laws or the terms of such rights, preferences or privileges permit such transfer, sell such rights, preferences or privileges 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 hereof, be distributed by Computershare to the Record Holders of Receipts entitled thereto as provided by Section 4.1 hereof in the case of a distribution received in cash.

 

The Corporation shall promptly notify the Depository whether 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, and the Corporation agrees with the Depository that it will file promptly 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 Depository make available to the Holders of Receipts any right, preference or privilege to subscribe for or to purchase any securities unless and until such registration statement shall have become effective, or the Corporation shall have

 

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provided to the Depository an opinion of counsel to the effect that the offering and sale of such securities to the Holders are exempt from registration under the provisions of the Securities Act.

 

The Corporation shall promptly notify the Depository whether any other action under the laws of any jurisdiction or any governmental or administrative authorization, consent or permit is required in order for such rights, preferences or privileges to be made available to Holders of Receipts, and the Corporation agrees with the Depository that the Corporation will use its reasonable 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, etc.; Fixing Record Date for Holders of Receipts.

 

Whenever any cash dividend or other cash distribution shall become payable or any distribution other than cash shall be made, or if rights, preferences or privileges shall at any time be offered, with respect to the Stock, or whenever the Depository shall receive notice of (A) any meeting at which holders of the Stock are entitled to vote or of which holders of the Stock are entitled to notice or (B) any election on the part of the Corporation to redeem any such Stock, or whenever the Depository and the Corporation shall decide it is appropriate, the Depository shall in each such instance fix a record date (which shall be the same date as the record date fixed by the Corporation with respect to or otherwise in accordance with the terms of the Stock) 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, or to give instructions for the exercise of voting rights at any such meeting, or who shall be entitled to notice of such meeting, or for whose Depositary Shares are to be so redeemed or for any other appropriate reasons.

 

Section 4.5  Voting Rights.

 

Subject to the provisions of the Articles, upon receipt of notice of any meeting at which the holders of the Stock are entitled to vote, the Depository shall, as soon as practicable thereafter, provide to the Record Holders of Receipts, determined on the record date as set forth in Section 4.4 hereof, a notice prepared by the Corporation which shall contain (i) such information as is contained in such notice of meeting and (ii) a statement that the Holders may, subject to any applicable restrictions, instruct the Depository as to the exercise of the voting rights pertaining to the amount of Stock represented by their respective Depositary Shares (including an express indication that instructions may be given to the Depository to give a discretionary proxy to a person designated by the Corporation) and a brief statement as to the manner in which such instructions may be given. Upon the written request of the Holders of Receipts on the relevant record date, the Depository shall endeavor insofar as practicable to vote or cause to be voted, in accordance with the instructions set forth in such requests, the maximum number of whole shares of Stock represented by the Depositary Shares evidenced by all Receipts as to which any particular voting instructions are received. The Corporation hereby agrees to take all reasonable action which may be deemed necessary by the Depository in order to enable the Depository to vote such Stock or cause such Stock to be voted. In the absence of specific instructions from Holders of Receipts, the Depository will not vote (but at its discretion, may appear at any meeting with respect to such Stock unless directed otherwise by the Holders of all the Receipts) to the extent of the Stock represented by the Depositary Shares evidenced by the Receipts of such Holders.

 

Section 4.6  Changes Affecting Deposited Securities and Reclassifications, Recapitalizations, etc.

 

Upon any change in par or stated value, split-up, combination or any other reclassification of the Stock, subject to the provisions of the Articles, or upon any recapitalization, reorganization, merger or consolidation affecting the Corporation or to which it is a party, the Depository may in its discretion with the approval of, and shall upon the instructions of, the Corporation, and (in either case) in such manner as the Depository may deem equitable, (i) make such adjustments as are certified by the Corporation in the fraction of an interest represented by one Depositary Share in one share of Stock and in the ratio of the redemption price per Depositary Share to the redemption price per share of Stock, in each case as may be necessary fully to reflect the effects of such change in par or stated value, split-up, combination or other reclassification of the Stock, or of such recapitalization, reorganization, merger or consolidation and (ii) treat any securities which shall be received by the Depository in exchange for or upon conversion of or in respect of the Stock as new deposited securities so received in exchange for or upon conversion or in respect of such Stock. In any such case the Corporation may in its discretion direct the Depository to execute and deliver additional Receipts or may call for the surrender of all outstanding Receipts to be exchanged for new Receipts specifically

 

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describing such new deposited securities. 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 Stock or any such recapitalization, reorganization, merger or consolidation to surrender such Receipts to the Depository with instructions to convert, exchange or surrender the Stock 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 Stock represented by such Receipts might have been converted or for which such Stock might have been exchanged or surrendered immediately prior to the effective date of such transaction.

 

The Corporation shall cause reflective provisions to be included in the charter of the resulting or surviving entity (if other than the Corporation) for the protection of such rights as may be applicable upon exchange of the deposited Stock for securities or property or cash of the surviving entity in connection with the transactions set forth above. The Corporation shall cause any such surviving entity (if other than the Corporation) expressly to assume the obligations of the Corporation hereunder.

 

Section 4.7  Delivery of Reports.

 

The Depository shall furnish to Holders of Receipts any reports and communications received from the Corporation which are received by the Depository, as the holder of the Stock, and which the Corporation is required to furnish to the holders of the Stock.

 

Section 4.8  Lists of Receipt Holders.

 

Reasonably promptly upon request from time to time by the Corporation, at the sole expense of the Corporation, the Depository shall furnish to it a list, as of the most recent practicable date, of the names, addresses and holdings of Depositary Shares of all registered Holders of Receipts.

 

ARTICLE V.
 THE DEPOSITORY, THE DEPOSITORY’S
 AGENTS, THE REGISTRAR AND THE CORPORATION

 

Section 5.1  Maintenance of Offices, Agencies and Transfer Books by the Depository; Registrar; Depository’s Agents.

 

Upon execution of this Agreement, the Depository shall maintain at the Depository’s Office, facilities for the execution and delivery, registration and registration of transfer, surrender and exchange of Receipts, and at the offices of the Depository’s Agents, if any, facilities for the delivery, registration of transfer, surrender and exchange of Receipts, all in accordance with the provisions of this Agreement; provided that, to the extent provisions of this Agreement regarding transfer or registration functions performed by the Depository conflict with the terms of any transfer agency agreement between the Corporation and the Depository, the terms of such transfer agency agreement shall control.

 

The Registrar shall keep books at the Depository’s Office for the registration and transfer of Receipts. Upon direction by the Corporation and with reasonable notice to the Registrar, the Depository shall open its books for inspection by the Record Holders of Receipts as directed by the Corporation; provided, that any Holder shall be granted such right by the Corporation only after certifying that such inspection shall be for a proper purpose reasonably related to such person’s interest as an owner of Depositary Shares evidenced by the Receipts.

 

The Registrar 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 Stock represented by such Depositary Shares shall be listed on one or more national securities exchanges, the Depository will appoint a registrar (acceptable to the Corporation) for registration of the Receipts or Depositary Shares in accordance with any requirements of such exchange. Such registrar (which may be the Trust Company if so permitted by the requirements of any such exchange) may be removed and a substitute registrar appointed by the Depository upon the request or with the approval of the

 

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Corporation. If the Receipts, Depositary Shares or Stock are listed on one or more other securities exchanges, the Registrar will, at the request of the Corporation, arrange such facilities for the delivery, registration, registration of transfer, surrender and exchange of the Receipts, Depositary Shares or Stock as may be required by law or applicable securities exchange regulation.

 

The Depository may from time to time appoint Depository’s Agents to act in any respect for the Depository for the purposes of this Agreement and may from time to time appoint additional Depository’s Agents and vary or terminate the appointment of such Depository’s Agents, provided that the Depository will notify the Corporation of any such appointment or variation or termination of such appointment.

 

Section 5.2  Prevention of or Delay in Performance by the Depository, the Depository’s Agents, the Registrar, the Transfer Agent or the Corporation.

 

None of the Depository, any Depository’s Agent, any Registrar, any Transfer Agent or the Corporation shall incur any liability to any Holder of a Receipt if by 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 Depository, the Depository’s Agent or the Registrar or the Transfer Agent, by reason of any provision, present or future, of the Corporation’s Articles of Incorporation (including the Articles) or by reason of any act of God or war or other circumstance beyond the control of the relevant party, the Depository, the Depository’s Agent, the Registrar, the Transfer Agent or the Corporation shall be prevented, delayed or forbidden from, or subjected to any penalty on account of, doing or performing any act or thing which the terms of this Agreement provide shall be done or performed. Nor shall the Depository, any Depository’s Agent, any Registrar, any Transfer Agent or the Corporation incur liability to any Holder of a Receipt (i) by reason of any nonperformance or delay, caused as aforesaid, in the performance of any act or thing which the terms of this Agreement shall provide shall or may be done or performed, or (ii) by reason of any exercise of, or failure to exercise, any discretion provided for in this Agreement except, in case of any such exercise or failure to exercise discretion not caused as aforesaid, if caused by the gross negligence, willful misconduct or bad faith (each as determined by a final judgment of a court of competent jurisdiction) of the party charged with such exercise or failure to exercise, or as otherwise explicitly set forth in this Agreement.

 

Section 5.3  Obligations of the Depository, the Depository’s Agents, the Registrar, the Transfer Agent and the Corporation.

 

Whenever in the performance of its duties under this Agreement the Depository shall deem it necessary or desirable that any fact or matter be proved or established by the Corporation prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a statement signed by the Chairman of the Board, the President, Chief Executive Officer, Chief Financial Officer, or any Executive Vice President of the Corporation and delivered to the Depository. The Depository may rely upon, and be held harmless for such reliance, upon such statement for any action taken or suffered by it pursuant to the provisions of this Agreement and shall not be held liable in connection with any delay in receiving such statement.

 

The Depository, any Depository’s Agent and any Registrar or Transfer Agent shall not be obligated to expend or risk its own funds or to take any action that it believes would expose or subject it to expense or liability or to a risk of incurring expense or liability, unless it has been furnished with assurances of repayment or indemnity satisfactory to it.

 

The Depository shall not be accountable or under any duty or responsibility for the use by the Corporation of any Receipts authenticated by the Depository and delivered by it to the Corporation pursuant to this Agreement or for the application by the Corporation of the proceeds of the issue and sale, or exercise, of the Receipts.

 

The Depository shall not have any duty or responsibility in the case of the receipt of any written demand from any Holder with respect to any action or default by the Corporation, including, without limiting the generality of the foregoing, any duty or responsibility to initiate or attempt to initiate any proceedings at law or otherwise or to make any demand upon the Corporation.

 

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None of the Depository, any Depository’s Agent, any Registrar, any Transfer Agent or the Corporation shall be liable for any action or any failure to act by it in reliance upon the written advice of legal counsel (including legal counsel for the Corporation) or accountants, or information from any person presenting Stock for deposit, any Holder of a Receipt or any other person. Such advice shall be full and complete authorization, protection to, and indemnification by the Corporation of, the Depository, the Depository’s Agent, any Registrar, any Transfer Agent and subcontractors as to any action taken or omitted by it in accordance with such advice, believed (in the absence of gross negligence, willful misconduct or bad faith, each as determined by a final judgment of a court of competent jurisdiction) by such parties to be genuine and to have been signed or presented by the proper party or parties.

 

The Depository shall not be responsible for any failure to carry out any instruction to vote any of the shares of Stock or for the manner or effect of any such vote made, as long as any such action or inaction does not result from fraud, gross negligence, willful misconduct or bad faith (each as determined by a final judgment of a court of competent jurisdiction). The Depository undertakes, and any Registrar and any Transfer Agent shall be required to undertake, to perform such duties and only such duties as are expressly set forth in this Agreement, and no implied covenants or obligations shall be read into this Agreement against the Depository or any Registrar or Transfer Agent. The Depository shall act hereunder solely as agent for the Corporation and shall not assume any obligations or relationship of agency or trust with any of the Holders.

 

The Depository may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorney or agents, and the Depository shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorney or agents or for any loss to the Corporation resulting from any such act, default, neglect or misconduct, absent gross negligence, bad faith or willful misconduct (each as determined by a final judgment of a court of competent jurisdiction) in the selection and continued employment thereof.

 

From time to time, the Corporation may provide the Depository with instructions concerning the services performed by the Depository hereunder. In addition, at any time the Depository may apply to any officer of the Corporation for instructions. The Depository may rely on and shall be held harmless and protected and shall incur no liability for or in respect of any action taken, suffered or omitted to be taken by it in reliance upon any certificate, statement, instrument, opinion, notice, letter, facsimile transmission, telegram or other document, or any security delivered to it, and believed by it to be genuine and to have been made or signed by the proper party or parties, or upon any written or oral instructions or statements from the Corporation with respect to any matter relating to its acting as Depository hereunder. The Depository shall not be held to have notice of any change of authority of any person, until receipt of written notice thereof from the Corporation.

 

The Depository, its parent, affiliates or subsidiaries, the Depository’s Agents, the Registrar, the Transfer Agent and each of their equity holders, directors, officers or employees may own, buy, sell and deal in any class of securities of the Corporation and its affiliates and in Receipts or Depositary Shares or become pecuniarily interested in any transaction in which the Corporation or its affiliates may be interested or contract with or lend money to any such person or otherwise act as fully or as freely as if it were not the Depository, the parent, affiliate or subsidiary or the Depository’s Agent or the Registrar or the Transfer Agent hereunder. The Depository may also act as trustee, transfer agent or registrar of any of the securities of the Corporation and its affiliates. Nothing herein shall preclude the Depository from acting in any other capacity for the Corporation or for any other legal entity.

 

It is intended that none of the Depository, any Depository’s Agent or the Registrar or the Transfer Agent, acting as the Depository’s Agent or Registrar or Transfer Agent, as the case may be, 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 Depository, any Depository’s Agent and the Registrar and Transfer Agent are acting only in a ministerial capacity as Depository or Registrar or Transfer Agent, as applicable, for the Stock; provided, that the Depository agrees to comply with all information reporting and withholding requirements applicable to it under law or this Agreement in its capacity as Depository.

 

None of the Depository (or its officers, directors, employees or agents), any Depository’s Agent or the Registrar or the Transfer Agent makes any representation or has any responsibility as to the validity of the registration statement pursuant to which the Depositary Shares are registered under the Securities Act, the Stock, the Depositary Shares or the Receipts (except for its counter-signatures thereon) or any instruments referred to therein or herein, or as

 

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to the correctness of any statement made therein or herein and the Depository shall not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in the Receipts (except its countersignature hereof and thereof) or be required to verify the same, and all such statements and recitals are and shall be deemed to have been made by the Corporation only; provided, that the Depository is responsible for any and all of its representations in this Agreement.

 

The Depository shall have no responsibility for any breach by the Corporation of any covenant or condition contained in this Agreement or in any Receipt; nor shall it be responsible to make any calculations or adjustments (or confirm or verify the accuracy or correctness of any such calculations or adjustments) required under any provisions of the Receipts or this Agreement; nor shall it be responsible for the manner, method or amount of any such calculations or adjustments or the ascertaining of the existence of facts that would require any such calculations or adjustments; nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of Stock to be issued pursuant to this Agreement or any Receipt or as to whether any shares of Stock will when issued be valid and fully paid and nonassessable.

 

The Depository assumes no responsibility for the correctness of the description that appears in the Receipts.

 

Notwithstanding any other provision herein or in the Receipts, the Depository makes no warranties or representations as to the validity or genuineness of any Stock at any time deposited with the Depository hereunder or of the Depositary Shares, as to the validity or sufficiency of this Agreement, as to the value of the Depositary Shares or as to any right, title or interest of the record holders of Receipts in and to the Depositary Shares. The Depository shall not be accountable for the use or application by the Corporation of the Depositary Shares or the Receipts or the proceeds thereof.

 

The Depository may rely on and be fully authorized and protected in acting or failing to act upon (i) any guaranty of signature by an “eligible guarantor institution” that is a member or participant in the Securities Transfer Agents Medallion Program or other comparable “signature guarantee program” or insurance program in addition to, or in substitution for, the foregoing; or (ii) any law, act, regulation or any interpretation of the same even though such law, act, or regulation may thereafter have been altered, changed, amended or repealed.

 

Notwithstanding anything to the contrary herein, no party to this Agreement shall be liable for any incidental, indirect, punitive, special or consequential damages of any nature whatsoever, including, but not limited to, loss of anticipated profits, arising under any provision of this Agreement or out of any act or failure to act even if apprised of the possibility of such damages.

 

Notwithstanding anything contained herein to the contrary, the Depository’s, any Depository’s Agent’s, Registrar’s or Transfer Agent’s aggregate liability during any term of this Agreement with respect to, arising from, or arising in connection with this Agreement, or from all services provided or omitted to be provided under this Agreement, whether in contract, or in tort, or otherwise, is limited to, and shall not exceed, the amounts paid hereunder by the Corporation to the Depository as fees and charges, but not including reimbursable expenses, during the 12 months immediately preceding the event for which recovery from the Depository is being sought.

 

The Depository shall not be under any liability for interest on any monies at any time received by it pursuant to any of the provisions of this Agreement or of the Receipts, the Depositary Shares or the Stock nor shall it be obligated to segregate such monies from other monies held by it, except as required by law. The Depository shall not be responsible for advancing funds on behalf of the Corporation and shall have no duty or obligation to make any payments if it has not timely received sufficient funds to make timely payments.

 

In the event the Depository, any Depository’s Agent, any Registrar or Transfer Agent believes any ambiguity or uncertainty exists hereunder or in any notice, instruction, direction, request or other communication, paper or document received by it hereunder, or in the administration of any of the provisions of this Agreement, the Depository, any Depository’s Agent, any Registrar or Transfer Agent shall deem it necessary or desirable that a matter be proved or established prior to taking, omitting or suffering to take any action hereunder, the Depository, any Depository’s Agent, any Registrar or Transfer Agent may, in its sole discretion upon written notice to the Corporation, refrain from taking any action and shall be fully protected and shall not be liable in any way to the Corporation, any Holders of Receipts or any other person for refraining from taking such action, unless the Depository receives written instructions or a

 

14

 

certificate signed by the Corporation which eliminates such ambiguity or uncertainty to the satisfaction of the Depository, Depository’s Agent, Registrar or Transfer Agent or which proves or establishes the applicable matter to the satisfaction of the Depository, Depository’s Agent, Registrar or Transfer Agent.

 

The Depository undertakes not to issue any Receipt other than to evidence the Depositary Shares representing interests in the shares of Stock that have been delivered to and are then on deposit with the Depository. The Depository also undertakes not to sell, except as provided herein, pledge or lend Depositary Shares or any shares of deposited Stock by it as Depository.

 

The Depository shall not be held to have notice of any change of authority of any person, until receipt of written notice thereof from the Corporation. The obligations of the Corporation and the rights of the Depository set forth in this Section 5.3 shall survive the termination of this Agreement, the resignation, removal of the Depository, and any succession of any Depository, Registrar or Depository’s Agent.

 

Section 5.4  Resignation and Removal of the Depository; Appointment of Successor Depository.

 

The Depository may at any time resign as Depository hereunder by delivering notice (pursuant to the notice provisions contained in Section 7.4) of its election to do so to the Corporation upon 30 days’ notice of such resignation. The Depository may at any time be removed by the Corporation by 30 days’ written notice of such removal delivered to the Depository.

 

In case at any time the Depository acting hereunder shall resign or be removed, the Corporation shall, within 30 days after the delivery of the notice of resignation or removal, as the case may be, appoint a successor Depository, which shall be authorized under applicable laws to exercise the powers of a transfer agent and subject to supervision or examination by federal or state authorities having its principal office in the United States of America and (together with its affiliates) having a combined capital and surplus of at least $50,000,000. If no successor Depository shall have been so appointed and have accepted appointment within 30 days after delivery of such notice, a Holder may petition any court of competent jurisdiction for the appointment of a successor Depository.

 

Every successor Depository shall execute and deliver to its predecessor and to the Corporation an instrument in writing accepting its appointment hereunder, and thereupon such successor Depository, 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 Depository under this Agreement, and such predecessor, upon payment of all sums due it and on the written request of the Corporation, 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 right, title and interest in the Stock and any moneys held hereunder to such successor, and shall deliver to such successor a list of the Record Holders of all outstanding Receipts and such records, books and other information in its possession relating thereto. Any successor Depository shall promptly provide notice of its appointment to the Record Holders of Receipts.

 

Any entity into or with which the Depository may be merged, consolidated or converted, or any person to which all or a substantial part of the assets of the Depository may be transferred or which succeeds to the shareholder services business of the Depository shall be the successor of the Depository without the execution or filing of any document or any further act, and notice thereof shall not be required hereunder. Such successor Depository may authenticate the Receipts in the name of the predecessor Depository or its own name as successor Depository.

 

Section 5.5  Corporate Notices and Reports.

 

The Corporation agrees that it will deliver to the Depository, and the Depository will, as soon as practicable, after receipt thereof, transmit to the Record Holders of Receipts, in each case at the addresses recorded in the Depository’s books, copies of all notices and reports (including without limitation financial statements) required by law, by the rules of any national securities exchange upon which the Stock, the Depositary Shares or the Receipts are listed or by the Corporation’s Articles of Incorporation (including the Articles), to be furnished to the Record Holders of Receipts. Such transmission will be at the Corporation’s expense and the Corporation will provide the Depository with such number of copies of such documents as the Depository may request. In addition, the Depository will

 

15

 

transmit to the Record Holders of Receipts at the Corporation’s expense, including applicable fees, such other documents as may be requested by the Corporation.

 

Section 5.6  Indemnification by the Corporation.

 

The Corporation shall indemnify the Depository, any Depository’s Agent and any Registrar or Transfer Agent (including each of their officers, directors, agents and employees) against, and hold each of them harmless from, any loss, damage, cost, penalty, liability or expense (including the reasonable costs and expenses of defending itself) may be paid, incurred or suffered by or to which it may become subject, arising from or out of, directly or indirectly, any claims or liability resulting from acts performed, suffered or omitted to be taken in connection with this Agreement and the Receipts by the Depository, any Registrar or Transfer Agent or any of their respective agents (including any Depository’s Agent) and any transactions or documents contemplated hereby, except for any liability arising out of gross negligence, willful misconduct or bad faith (each as determined by a final judgment of a court of competent jurisdiction) on the respective parts of any such person or persons. The costs and expenses incurred by the Depository in enforcing this right of indemnification shall be paid by the Corporation. The obligations of the Corporation and the rights of the Depository set forth in this Section 5.6 shall survive the termination of this Agreement and any succession of any Depository, Registrar or Depository’s Agent.

 

Section 5.7  Fees, Charges and Expenses.

 

The Corporation agrees promptly to pay the Depository the compensation to be agreed upon with the Corporation for all services rendered by the Depository hereunder and to reimburse the Depository for its reasonable out-of-pocket expenses (including reasonable counsel fees and expenses) incurred by the Depository without gross negligence, willful misconduct or bad faith (each as determined by a final judgment of a court of competent jurisdiction) on its part (or on the part of any agent or Depository’s Agent) in connection with the services rendered by it (or such agent or Depository’s Agent) hereunder. The Corporation shall pay all charges of the Depository in connection with the initial deposit of the Stock and the initial issuance of the Depositary Shares and any redemption or exchange of the Stock at the option of the Corporation. The Corporation shall pay all transfer and other taxes and governmental charges arising solely from the existence of the depository arrangements. All other transfer and other taxes and governmental charges shall be at the expense of Holders of Depositary Shares evidenced by Receipts. If, at the request of a Holder of Receipts, the Depository incurs charges or expenses for which the Corporation is not otherwise liable hereunder, such Holder will be liable for such charges and expenses; provided, that the Depository may, at its sole option, request that the Corporation direct a Holder of a Receipt to prepay the Depository any charge or expense the Depository has been asked to incur at the request of such Holder of Receipts. The Depository shall present its statement for charges and expenses to the Corporation at such intervals as the Corporation and the Depository may agree. The Depository shall not register any transfer or issue or deliver any Receipt(s) or Depositary Shares unless or until the persons requesting the registration or issuance shall have paid to the Depository for the account of the Corporation the amount of such tax, if any, or shall have established to the reasonable satisfaction of the Corporation and the Depository that such tax, if any, has been paid.

 

Section 5.8  Tax Compliance.

 

Computershare and, where applicable, the Trust Company, on its own behalf and on behalf of the Corporation, will comply with all applicable certification, information reporting and withholding (including “backup” withholding) requirements imposed by applicable tax laws, regulations or administrative practice with respect to (i) any payments made with respect to the Depositary Shares or (ii) the issuance, delivery, holding, transfer, redemption or exercise of rights under the Receipts or the Depositary Shares. Such compliance shall include, without limitation, the preparation and timely filing of required returns and the timely payment of all amounts required to be withheld to the appropriate taxing authority or its designated agent.

 

The Depository shall comply with any written instructions received from the Corporation with respect to the application of such requirements to particular payments or Holders, and may for purposes of this Agreement rely on any such instructions in accordance with the provisions of Section 5.3 hereof. The Depository shall have no duties, responsibilities or obligations to take any action under this paragraph without clear and precise instructions from the Corporation.

 

16

 

The Depository shall maintain all appropriate records documenting compliance with such requirements, and shall make such records available on reasonable request to the Corporation or to its authorized representatives.

 

ARTICLE VI.
  AMENDMENT AND TERMINATION

 

Section 6.1  Amendment.

 

The form of the Receipts and any provisions of this Agreement may at any time and from time to time be amended by agreement between the Corporation and the Depository without the consent of Holders of Receipts in any respect which they may deem necessary or desirable; provided, that no such amendment (other than a change in fees) which shall materially and adversely alter the rights of the Holders of Receipts shall be effective unless such amendment shall have been approved by the Holders of Receipts evidencing at least a majority of the Depositary Shares then outstanding. 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 Agreement.

 

Notwithstanding the foregoing, in no event shall the Corporation be required to execute any amendment which may impair the right, subject to the provisions of Section 2.6 and Section 2.7 and ARTICLE III, of any owner of Depositary Shares to surrender any Receipt evidencing such Depositary Shares to the Depository with instructions to deliver to the Holder the Stock and all money represented thereby, except in order to comply with mandatory provisions of applicable law or the rules and regulations of any governmental body, agency or commission, or applicable securities exchange. As a condition precedent to the Depository’s execution of any amendment, the Corporation shall deliver to the Depository a certificate from a duly authorized officer of the Corporation that states that the proposed amendment is in compliance with the terms of this Section 6.1, provided that, if, under the foregoing paragraph, such amendment would require approval of at least a majority of Holders of Receipts to be effective, such Holders shall be deemed to have consented and agreed to such amendment for purposes of the statement in such certificate that such amendment is in compliance with the terms of this ARTICLE VI.

 

Section 6.2  Termination.

 

Without limiting the provisions contained in Section 5.4, this Agreement may be terminated by the Corporation or the Depository only if (i) all outstanding Depositary Shares issued hereunder have been redeemed pursuant to Section 2.9 hereof, or (ii) there shall have been made a final distribution in respect of the Stock in connection with any liquidation, dissolution or winding up of the Corporation and such distribution shall have been distributed to the Holders of Receipts representing Depositary Shares pursuant to Section 4.1 or Section 4.2 hereof, as applicable.

 

Upon the termination of this Agreement, the Corporation shall be discharged from all obligations under this Agreement except for its obligations to the Depository, any Depository’s Agent and any Registrar under Section 5.3, Section 5.6 and Section 5.7.

 

ARTICLE VII.
  MISCELLANEOUS

 

Section 7.1  Counterparts.

 

This 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. A signature to this Agreement transmitted by facsimile or electronically shall have the same authority, effect and enforceability as an original signature.

 

17

 

Section 7.2  Exclusive Benefit of Parties.

 

This Agreement is for the exclusive benefit of the parties hereto, including those named as parties in Section 7.6 hereof, 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 Agreement or in the Receipts should be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein or therein shall in no way be affected, prejudiced or disturbed thereby.

 

Section 7.4  Notices.

 

Any and all notices to be given to the Corporation 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, overnight delivery or by facsimile transmission or electronic mail, confirmed by letter, addressed to the Corporation at:

 

Merchants Bancorp

11555 North Meridian Street

Suite 500

Carmel, Indiana 46032

Facsimile:  (317) 805-4374

Attn:  Chief Financial Officer

 

or at any other address of which the Corporation shall have notified the Depository in writing.

 

With a copy to, which shall not constitute notice:

 

Krieg DeVault LLP

One Indiana Square, Suite 2800

Indianapolis, Indiana 46204

Facsimile:  (317) 636-1507

Attn:  Michael J. Messaglia

 

Any and all notices to be given to the Depository 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, overnight delivery or by facsimile transmission confirmed by letter, addressed to the Depository at the Depository’s Office at Computershare Trust Company, N.A.

 

Computershare Inc.

150 Royall Street

Canton, Massachusetts 02021

Attention: General Counsel

Facsimile: 781-575-4210

 

or at any other address of which the Depository shall have notified the Corporation in writing.

 

The Depository shall give any and all notices directed to be given by the Corporation to any Record Holder of a Receipt in writing, which notices shall be deemed to have been duly given if personally delivered or sent by mail, overnight delivery or electronic transmission or confirmed by letter, addressed to such Record Holder at the address of such Record Holder as it appears on the books of the Depository. Any written notices given to any record holder of a DTC Receipt shall be deemed to have been duly given if transmitted through the facilities of DTC in accordance with DTC’s procedures.

 

18

 

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

 

Section 7.5  Appointment of Registrar and Transfer Agent, Dividend Disbursing Agent and Redemption Agent.

 

Unless otherwise set forth on a certificate duly executed by an authorized officer of the Corporation, the Corporation hereby appoints the Trust Company as Registrar and Transfer Agent and Computershare as dividend disbursing agent and redemption agent in respect of the Stock deposited with the Depository hereunder and the Receipts, and the Trust Company and Computershare hereby accept their respective appointments. With respect to the appointments of the Trust Company as Registrar and Transfer Agent and Computershare as dividend disbursing agent and redemption agent in respect of the Stock and the Receipts, each of the Corporation, the Trust Company and Computershare, in their respective capacities under such appointments, shall be entitled to the same rights, indemnities, immunities and benefits as the Corporation and Depository hereunder, respectively, as if explicitly named in each such provision.

 

Section 7.6  Holders of Receipts Are Parties.

 

The Holders of Receipts from time to time shall be parties to this Agreement and shall be bound by all of the terms and conditions hereof and of the Receipts. The provisions of this Agreement are intended to benefit only the parties hereto and their respective permitted successors and assigns, and no rights shall be granted to any other person by virtue of this Agreement.

 

Section 7.7  Governing Law.

 

This Agreement and the Receipts of each Stock and all rights hereunder and thereunder and provisions hereof and thereof shall be governed by, and construed in accordance with, the laws of the State of Indiana without giving effect to applicable conflicts of law principles.

 

The parties hereunder hereby agree that any action, proceeding or claim against it arising out of or relating in any way to this Agreement shall be brought and enforced in the courts of the State of Indiana or the United States District Court for the Southern District of Indiana, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The parties hereunder hereby waive any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any such process or summons to be served upon either party may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 7.4 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon such party in any action, proceeding or claim.

 

Section 7.8  Headings.

 

The headings of articles and sections in this 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 a part of this Agreement or the Receipts or to have any bearing upon the meaning or interpretation of any provision contained herein or in the Receipts.

 

Section 7.9  Force Majeure.

 

Notwithstanding anything to the contrary contained herein, the Depository will not be liable for any delays or failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities, or loss of data due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war, or civil unrest.

 

19

 

Section 7.10  Confidentiality.

 

The Depository and the Corporation agree that all books, records, information and data pertaining to the business of the other party, including inter alia, personal, non-public Holder information, which are exchanged or received pursuant to the negotiation or the carrying out of this Agreement, including the fees for services contemplated hereunder, shall remain confidential, and shall not be voluntarily disclosed to any other person, except as may be required by law, including, without limitation, pursuant to subpoenas from state or federal government authorities (e.g., in divorce and criminal actions).

 

[Signature page follows.]

 

20

 

IN WITNESS WHEREOF, the Corporation, Computershare and the Trust Company have duly executed this Agreement as of the day and year first above set forth.

 

	
 
    	
 
    	
MERCHANTS BANCORP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    

 

[SIGNATURE PAGE TO DEPOSIT AGREEMENT]

 

 

	
 
    	
COMPUTERSHARE INC. and   COMPUTERSHARE

TRUST COMPANY, N.A. (on   behalf of both entities)
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    

 

[SIGNATURE PAGE TO DEPOSIT AGREEMENT]

 

 

EXHIBIT A

 

[FORM OF FACE OF RECEIPT]

 

THE DEPOSITARY SHARES REPRESENTED BY THIS CERTIFICATE ARE NOT SAVINGS ACCOUNTS, DEPOSITS OR OTHER OBLIGATIONS OF A BANK AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.

 

[To be included in any DTC Receipt or other global Receipt: UNLESS THIS RECEIPT IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE CORPORATION OR ITS AGENT (INCLUDING THE DEPOSITORY) FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY RECEIPT ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS RECEIPT SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS RECEIPT SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE DEPOSIT AGREEMENT REFERRED TO BELOW. IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH REGISTRAR AND TRANSFER AGENT MAY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.]

 

Number DR-                   Depositary Shares
 (CUSIP: 58844R 603)

 

DEPOSITARY RECEIPT FOR DEPOSITARY SHARES,
 EACH REPRESENTING ONE 1/40TH OF ONE SHARE OF
 6.00% FIXED-TO-FLOATING RATE SERIES B NON-CUMULATIVE PERPETUAL PREFERRED STOCK 
 OF MERCHANTS BANCORP

 

Incorporated under the laws of the State of Indiana
 (See reverse for certain definitions.)

 

Computershare Inc., a Delaware corporation, and Computershare Trust Company, N.A., a federally chartered trust company, acting jointly as Depository (the “Depository”), hereby certifies that CEDE & CO. is the registered owner of [·] DEPOSITARY SHARES (“Depositary Shares”), each Depositary Share representing one 1/40th of a share of 6.00% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock, liquidation preference $1,000 per share, no par value (the “Stock”), of MERCHANTS BANCORP, an Indiana corporation (the “Corporation”), on deposit with the Depository, subject to the terms and entitled to the benefits of the Deposit Agreement dated as of August [   ], 2019 (the “Deposit Agreement”), among the Corporation, Computershare Inc., Computershare Trust Company, N.A. and the Holders from time to time of the Receipts. 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 Depository by the manual or facsimile signature of a duly authorized officer and countersigned and registered by the Transfer Agent and Registrar.

 

A-1

 

	
Dated:
    	
 
    	
Computershare Inc. and   Computershare Trust Company, N.A., as Depository
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Officer
    
	
 
    	
 
    	
 
    
	
Countersigned and   Registered:
    	
 
    	
 
    
	
Computershare Trust   Company, N.A.,
    	
 
    	
 
    
	
Transfer Agent and   Registrar
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
Authorized Signatory
    	
 
    	
 
    
					

 

A-2

 

[FORM OF REVERSE OF RECEIPT] MERCHANTS BANCORP

 

UPON REQUEST, MERCHANTS BANCORP WILL FURNISH WITHOUT CHARGE TO EACH HOLDER OF A DEPOSITARY RECEIPT WHO SO REQUESTS A COPY OF THE DEPOSIT AGREEMENT AND A COPY OR SUMMARY OF THE ARTICLES OF AMENDMENT OF THE 6.00% FIXED-TO-FLOATING RATE SERIES B NONCUMULATIVE PERPETUAL PREFERRED STOCK, OF MERCHANTS BANCORP ANY SUCH REQUEST IS TO BE ADDRESSED TO THE SECRETARY OF THE CORPORATION OR THE DEPOSITORY NAMED ON THE FACE OF THIS RECEIPT.

 

The Corporation will furnish without charge to each holder of a depositary receipt who so requests the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof of the Corporation, and the qualifications, limitations or restrictions of such preferences or rights. Such request may be made to the Corporation or to the Registrar.

 

KEEP THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, STOLEN OR DESTROYED THE CORPORATION WILL REQUIRE A BOND OF INDEMNITY AS A CONDITION TO THE ISSUANCE OF A REPLACEMENT CERTIFICATE.

 

The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	
TEN COM – as tenants in   common
    	
 
    	
UNIF GIFT M
    	
 
    	
IN ACT -
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Custodian
    
	
TEN ENT – as tenants by the entireties
    	
 
    	
 
    	
 
    	
Custodian
    	
 
    	
 
    
	
 
    	
 
    	
(Cust)
    	
 
    	
 
    	
 
    	
(Minor)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
JT TEN – as joint tenants with right of survivorship   and not as tenants in common
    	
 
    	
Under Uniform Gifts to Minors
    	
 
    	
 
    
	
 
    	
 
    	
Act
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(State)
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Additional   abbreviations may also be used though not in the above list.
    	
 
    	
 
    	
 
    	
 
    

 

For value received,                        hereby sells, assigns and transfers unto

 

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

 

 

	
 
    	
 
    

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

 

 

Depositary Shares represented by the within Certificate, and do(es) hereby irrevocably constitute and appoint               as Attorney to transfer the Depositary Shares on the books of the within named Depository with full power of substitution in the premises.

 

	
Dated:
    	
 
    	
 
    

 

 

	
NOTICE:
    	
 
    	
THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND   WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY   PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.
    

 

 

	
SIGNATURE(S) GUARANTEED:
    	
 
    	
 
    
	
 
    	
 
    	
THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN   ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN   ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE   GUARANTEE PROGRAM), PURSUANT TO RULE 17Ad-15 UNDER THE SECURITIES EXCHANGE   ACT OF 1934.Exhibit
4.1

 

PRIVILEGED
AND CONFIDENTIAL

 

INX
LIMITED

INX
TOKEN PURCHASE AGREEMENT

 

 

 

NOTICE:

 

THE
TERMS OF THIS AGREEMENT FORM A BINDING LEGAL CONTRACT BETWEEN YOU AND INX LIMITED (THE “COMPANY”). CAREFULLY
READ ALL OF THE TERMS OF THIS AGREEMENT BEFORE CLICKING THE “I AGREE” BUTTON. BY CLICKING THE “I AGREE”
BUTTON YOU ACKNOWLEDGE YOUR CONSENT AND AGREEMENT TO ALL THE TERMS AND CONDITIONS SET FORTH IN THIS AGREEMENT. IF YOU DO NOT AGREE
TO ALL THE TERMS OF THIS AGREEMENT, DO NOT CLICK “I AGREE.” IF YOU HAVE ANY QUESTIONS REGARDING THE EFFECT OF THE
TERMS AND CONDITIONS IN THIS AGREEMENT, YOU ARE ADVISED TO CONSULT INDEPENDENT LEGAL COUNSEL.

 

THE
COMPANY MAY NOT BE OFFERING THE SECURITIES IN EVERY STATE. THE OFFERING MATERIALS DO NOT CONSTITUTE AN OFFER OR SOLICITATION IN
ANY STATE OR JURISDICTION IN WHICH THE SECURITIES ARE NOT BEING OFFERED OR IN ANY STATE OR JURISDICTION IN WHICH AN OFFER OR SOLICITATION
IS NOT AUTHORIZED OR IN WHICH THE PERSON MAKING SUCH OFFER OR SOLICITATION IS NOT QUALIFIED TO DO SO.

 

 

 

SUMMARY

 

Review
this INX Token Purchase Agreement, which has been pre-populated following your completion of certain questions on our online website
platform [__________] (the “Purchasing Site”). If these responses remain accurate and correct, sign this completed
agreement using electronic signature.

 

Except
as otherwise required by law, subscriptions may not be withdrawn or cancelled by subscribers.

 

	Purchase Price (USD):	[____] (minimum amount: $1000)
	Purchase Price (BTC):	[____] (BTC/USD Exchange Rate: [____])
	Purchase Price (ETH):	[____] (ETH /USD Exchange Rate: [____]))
	Number of INX Tokens (Purchased Tokens):	[____]

 

		*	INX
Tokens are being purchased, sold and transferred in fractional divisions up to five decimal places (0.00001). Sales of INX Tokens
by the Company that would otherwise result in fractional divisions of more than five decimal places have been rounded down.

 

     
 

     

    

 

PREAMBLE

 

This Token Purchase Agreement
(this “Agreement”) contains the terms and conditions that govern your purchase of the INX Tokens, an ERC20
blockchain asset that is programmed using a smart contract that is compatible with the Ethereum blockchain (the “Tokens”
or “INX Tokens”) and it defines your rights and obligations with respect to the purchased Tokens. This is an
agreement between you (“Purchaser” or “you”) and INX Limited, a Gibraltar private company
limited by shares (the “Company”). Purchaser and the Company are herein referred to individually as a “Party”
and collectively as the “Parties.”

 

WHEREAS,
the Company is engaged in an initial public offering of Tokens (the “Offering”) and, in connection therewith,
has determined to issue and deliver up to 130,000,000 Tokens to public investors in the Offering; and

 

WHEREAS,
Purchaser desires to purchase from the Company, and the Company desires to issue and sell to Purchaser, Tokens in an amount and
for the consideration set forth on Exhibit A attached hereto.

 

WHEREAS,
the Offering, including the sale of the Tokens to Purchaser under this Agreement, shall be registered under the Securities Act
of 1933, as amended, and the rules and regulations thereunder (collectively, the “Securities Act”). A registration
statement on Form F-1 (File No. 333------------), including a related preliminary prospectus dated [------------], 2019, relating
to the Offering has been prepared and filed by the Company with the Securities and Exchange Commission (“Commission”)
in conformity with the requirements of the Securities Act. Such registration statement (as amended, if applicable) at the time
it becomes effective and the prospectus relating to the Offering included in the Registration Statement (in each case, including
the information, if any, deemed to be part thereof pursuant to Rule 430A(b)), as from time to time amended or supplemented, are
hereinafter referred to as the “Registration Statement” and the “Prospectus,” respectively.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby
agree as follows:

 

1.
Purchase of Tokens.

 

1.1
Issuance and Sale of Tokens; Purchase Price.

 

(a)
Subject to the terms and conditions set forth herein, Purchaser, intending to be legally bound, hereby irrevocably agrees to
purchase from the Company the number of Tokens set forth on Exhibit A attached hereto, (the “Purchased
Tokens”) for the purchase price set forth on Exhibit A (the “Purchase Price) all in accordance
with the terms and conditions of this Agreement. The Purchase Price shall reflect a purchase price per Token of USD$[____]. Exhibit
A shall also reflect the Purchase Price in bitcoin (BTC) and ether (ETH) as well as the applicable BTC/USD and ETH/USD
exchange rates. 

 

(b) This
Agreement shall be an effective and binding commitment (the “Commitment”) of Purchaser when Purchaser has entered
the amount of Tokens Purchaser desires to purchase at the Purchase Price, clicks the check box and the “I AGREE” button
on the Purchasing Site to indicate that Purchaser has read, acknowledges and agrees to the terms of this Agreement, executes this
Agreement and submits this Agreement to the Company. Purchaser agrees to be bound on this basis, and confirms that Purchaser has
read in full and acknowledges this Agreement and the terms on which Purchaser is bound.

 

    - 2 - 

     

    

 

(c) Purchaser
acknowledges and agrees that this agreement to purchase cannot be withdrawn, terminated, or revoked. This agreement to purchase
shall be binding on the heirs, executors, administrators, successors and assigns of Purchaser. This agreement to purchase is not
transferable or assignable by Purchaser, except as expressly provided in the terms and conditions of this Agreement.

 

(d) The
Company has provided specific procedures on how Purchaser may seek to purchase Tokens through the Purchasing Site. By purchasing
Tokens, Purchaser acknowledges, agrees to, and has no objection to such procedures and specifications. Purchaser further acknowledges
and agrees that failure to properly use the Purchasing Site and follow such procedures, including the submission of all required
documentation, may result in a rejection of Purchaser’s agreement to purchase and Purchaser not receiving any Tokens. Unauthorized
access or use of the Purchasing Site or the receipt or purchase of Tokens in the Offering through any other means are not sanctioned
or agreed to in any way by the Company. Purchaser should take great care to verify the accuracy of the universal resource locator
for the Purchasing Site used to purchase Tokens.

 

(e) Upon the basis of the representations and warranties, and subject to the terms and conditions, set forth herein, the
Company agrees to issue and sell the Purchased Tokens to Purchaser on the Closing (as defined below) for the Purchase
Price.

 

(f) The
Company intends to allocate and sell Tokens in accordance with the terms of the Prospectus. The Company plans to enter into purchase
agreements with other investors, providing for the sale of Tokens to such other investors, and such purchase agreements will be
separate but substantially similar to this Agreement. Each of the purchase agreements is a separate agreement.

 

1.2 Payment
of the Purchase Price. Upon execution of this Agreement, Purchaser authorizes: (a) Metropolitan Commercial Bank, a New York
State-chartered bank (the “Escrow Agent”) as escrow agent for the Offering, to request the Purchase Price from
Purchaser’s bank (details of which are set out in the “Payment Details” section on Exhibit A attached
hereto) to be deposited in the escrow account; (b) if the Company has received committed purchases equal to or exceeding the Minimum
Offering Amount (as defined below), (i) the transfer of funds in an amount equal to the Purchase Price from Purchaser’s bank
account into the Company’s bank account or (ii) the transfer of bitcoin (BTC) and ether (ETH) in an amount equal to the Purchase
Price from Purchaser’s digital wallet into the Company’s digital wallet. Prior to the Company receiving committed purchases
equal to or exceeding the Minimum Offering Amount, the Company shall cause the Escrow Agent to maintain all such funds for Purchaser’s
benefit in a segregated non-interest-bearing account until the earliest to occur of: (x) the Closing, (y) the rejection of this
Agreement (in accordance with Section 1.4 hereof) or (z) the termination of the Offering by the Company in its sole discretion.

 

    - 3 - 

     

    

 

1.3 Termination
of Offering or Rejection of Token Purchase Agreement.

 

(a) In
the event that (i) the Company does not effect the Closing on or before the date which is one year from the Offering being qualified
by the U.S. Securities and Exchange Commission (the “SEC”), (ii) the Company receives Purchaser’s purchase
request after the maximum number of Tokens in the Offering (130,000,000) has been sold, or (iii) the Offering is terminated by
the Company in its sole discretion, the Company will cause its payment services provider or the Escrow Agent, as applicable, to
refund promptly the Purchase Price paid by Purchaser, without deduction, offset or interest accrued thereon and this Agreement
shall thereafter be of no further force or effect.

 

(b)
Purchaser acknowledges and agrees that the Company, in its sole discretion, reserves the right to accept or reject this or
any other agreement to purchase INX Tokens, in whole or in part, and for any reason or no reason, notwithstanding prior
receipt by Purchaser of notice of acceptance of this Agreement. If the Company rejects a subscription, either in whole or
in part (which decision is in its sole discretion), the Company shall cause its payment services provider or the Escrow
Agent, as applicable, to return promptly the rejected Purchase Price or the rejected portion thereof to Purchaser without
deduction, offset or interest accrued thereon. If this offer is rejected in whole this Agreement shall thereafter be of no
further force or effect. If this offer is rejected in part, this Agreement will continue in full force and effect to the
extent this subscription was accepted.

 

1.4 Acceptance
of Subscription.

 

(a) Upon
the consummation of the purchase and sale of the Purchased Tokens and the other transactions contemplated hereby (the “Closing”),
if the Company accepts this Agreement in whole or in part, the Company shall execute and deliver to Purchaser a counterpart
executed copy of this Agreement and cause the Escrow Agent to release the Purchase Price (or applicable portion thereof if such
subscription is only accepted in part) to the Company. The Closing shall take place at the offices of the Company, on a date to
be determined by the Company in its sole discretion (the “Closing Date”). The Closing shall occur no earlier
than the date that the Company has received commitments from all purchasers in the aggregate of not less than $5,000,000 (the
“Minimum Offering Amount”).

 

(b) At
the Closing, subject to the terms hereof, the Company shall deliver to Purchaser’s Ethereum wallet (details of
which are set out in the “Digital Wallet” section on Exhibit A herein) the number of Tokens equal to the Purchased
Tokens. Purchaser acknowledges and agrees that the sale of Tokens pursuant to this Agreement is made subject to the condition
that the Tokens to be issued and delivered on account of this Agreement will be issued only in the name of and delivered only
to Purchaser.

 

(c) The
Company shall have no obligation hereunder until (a) Purchaser has executed and delivered to the Company this Agreement and
a substitute Form W-9 (if applicable); (b) Purchaser has deposited the Purchase Price in accordance with this Agreement; (c)
the Company has executed and delivered to Purchaser an executed copy of this Agreement; and (d) all other conditions to Closing
have been satisfied and the Closing has occurred.

 

    - 4 - 

     

    

 

(d) In
the event that the Closing does not take place for any reason with respect to all or some of the Tokens, the Company shall be
deemed to have rejected this subscription, either in whole or in part, in accordance with Section 1.3(b) and the Company shall
cause its payment services provider or the Escrow Agent, as applicable, to return promptly the rejected Purchase Price or the
rejected portion thereof to Purchaser without deduction, offset or interest accrued thereon.

 

1.5 Rights
as Holder of Tokens. Purchaser acknowledges and agrees that upon and after the Closing the Tokens shall have only such rights
and attributes as are expressly set forth on Exhibit B, subject to the terms thereof, including but not limited to each
of the restrictions and conditions described on Exhibit B.

 

1.6 No
Claim, Loan or Ownership Interest. Except as otherwise expressly set forth herein, the purchase of Tokens: (a) does not provide
Purchaser with rights of any form with respect to the Company or its revenues or assets, including, without limitation, any voting,
distribution, redemption, liquidation, proprietary (including all forms of intellectual property) or other financial or legal
rights; (b) is not a loan to Company; and (c) does not provide Purchaser with any ownership, equity, or other interest in the
Company.

 

1.7 Intellectual
Property. Purchaser acknowledges and agrees that the Company retains all right, title and interest in all of the Company’s
intellectual property contained in the Tokens, including, without limitation, inventions, ideas, concepts, code, discoveries,
processes, marks, methods, software, compositions, formulae, techniques, information and data, whether or not patentable, copyrightable
or protectable in trademark, and any trademarks, copyright or patents based thereon. Purchaser agrees not to use, reverse engineer,
modify, or alter any of the Company’s intellectual property for any reason without the Company’s prior written consent.

 

2. Representations
and Warranties of Purchaser.

 

In
connection with the issuance and sale of the Tokens hereunder, Purchaser hereby represents and warrants to the Company that on
the date hereof and as of the Closing Date:

 

2.1 Risk
Factors. Purchaser is aware that an investment in the Tokens involves a significant degree of risk, and has received the
Prospectus and, in particular, the “Risk Factors” section therein. Purchaser acknowledges that no representations
or warranties have been made to it or to its advisors or representatives with respect to the business or prospects of the Company
or its financial condition other than as provided in the Prospectus.

 

2.2
Investor Certification. Purchaser has submitted the Investor Certification (attached as Exhibit C attached hereto)
and confirms that all of the information included in the Investor Certification, as well as all other information furnished by
Purchaser in connection with the purchase of Tokens, including any and all verification forms, certifications and “know
your customer” documentation, are true and correct and complete in all respects as of the date of the Closing, and do not
contain any misstatements of fact or omit any fact necessary to make the statements contained therein not misleading, inaccurate
or otherwise untrue. Purchaser acknowledges that the Company enters into this Agreement and agrees to sell to Purchaser the Purchased
Tokens in reliance on the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings
made by Purchaser as set forth in this Agreement and in the Investor Certification. Purchaser agrees to promptly provide the
Company and its respective agents with such other information as may be reasonably necessary for them to confirm the information
provided in this Agreement and the Investor Certification.

 

    - 5 - 

     

    

 

2.3 Authorization.
Purchaser has all requisite power and authority to execute and deliver this Agreement, to purchase the Purchased Tokens, and to
carry out and perform its obligations under this Agreement. All action on Purchaser’s part required for the lawful execution
and delivery of this Agreement and other agreements required hereunder have been or will be effectively taken prior to the Closing
Date. This Agreement has been duly executed by Purchaser. The Agreement constitutes a legal, valid and binding obligation of Purchaser
enforceable against Purchaser in accordance with its terms, except that such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium and similar laws of general application relating to or affecting creditors’ rights
generally and by equitable principles (regardless of whether enforcement is sought in a proceeding in equity or at law). If an
individual, Purchaser is at least eighteen (18) years old and of sufficient legal age and capacity to enter into this Agreement.
If a legal entity, Purchaser is duly organized, validly existing and in good standing under the Laws of its domiciliary jurisdiction
and each jurisdiction where it conducts business.

 

2.4 No
Conflicts. The execution, delivery and performance of this Agreement will not result in (a) any violation of, be in conflict
with or constitute a material default under, with or without the passage of time or the giving of notice of, (i) any provision
of Purchaser’s organizational documents, if applicable; (ii) any provision of any judgment, decree or order to which Purchaser
is a party, by which it is bound, or to which any of its assets are subject; (iii) any agreement, obligation, duty or commitment
to which Purchaser is a party or by which it is bound; or (iv) any laws, statutes, ordinances, rules, regulations, judgments,
injunctions, administrative interpretations, orders and decrees of any Governmental Authority, including amendments thereto (collectively,
“Laws”); or (b) the creation of any lien, charge or encumbrance upon any assets of Purchaser. “Governmental
Authority” shall mean any nation or government, any state or other political subdivision thereof, any entity exercising
legislative, executive, judicial or administrative functions of or pertaining to government, including without limitation any
government authority, agency, department, board, commission or instrumentality and any court, tribunal or arbitrator(s) of competent
jurisdiction and any self-regulatory organization. For the avoidance of doubt, Governmental Authority may include private bodies
exercising quasi-governmental, regulatory or judicial-like functions to the extent they relate to either Parties or the Tokens.

 

2.5 No
Consents or Approvals. The execution and delivery of and performance under this Agreement require no approval or other action
from any Governmental Authority or person or entity other than the Company, except for such consents, approvals, authorizations,
orders, filings, registrations or qualifications as (a) have already been obtained or made and are still in full force and effect,
(b) may be required by FINRA, (c) may be required by the Gibraltar Financial Services Commission, and (d) may be required under
applicable state securities Laws in connection with the purchase, distribution and resale of Tokens.

 

    - 6 - 

     

    

 

2.6 Suitability,
Experience, and Ability to Bear Risk.

 

(a) Purchaser is aware that certain U.S. states have established suitability standards for purchasers in the Offering and subsequent
purchasers of INX Tokens. Purchaser has received the Prospectus and, in particular, the “Suitability Standards”
section therein. Purchaser meets all applicable suitability standards listed in the “Suitability Standards” section
of the Prospectus.

 

(b) Purchaser
has sufficient knowledge and experience in business, technology, financial, securities, and securities investments matters, including
a sufficient understanding of blockchain or cryptographic tokens and other digital assets, smart contracts, storage mechanisms
(such as digital or token wallets), blockchain-based software systems and blockchain technology, to be able to evaluate the risks
and merits of Purchaser’s purchase of Tokens using a digital wallet, including but not limited to the matters set forth
in the Prospectus and this Agreement, and is able to bear the risks thereof, including loss of all amounts paid, loss of Tokens
and liability to the Company and others for its acts and omissions, including without limitation those constituting a breach of
this Agreement, negligence, fraud or willful misconduct. Purchaser’s financial situation is such that Purchaser can afford
to bear the economic risk of holding Tokens for an indefinite period of time, and Purchaser can afford to suffer the complete
loss of the Purchase Price and Tokens.

 

(c) Purchaser
has obtained sufficient information in order to make an informed decision to purchase Tokens. Purchaser is not relying on the
Company or any of its owners, directors, officers, counsel, employees, agents or representatives for legal, investment or tax
advice. Purchaser represents that to the extent that Purchaser has any questions with respect to the purchase of Tokens, Purchaser
has sought professional advice. Purchaser has sought independent legal, investment and tax advice to the extent that Purchaser
has deemed necessary or appropriate in connection with Purchaser’s decision to purchase Tokens described herein.

 

2.7 Company
Information/Opportunity to Investigate. Purchaser, in making the decision to purchase the Tokens, has relied upon an independent
investigation of the Company and has not relied upon any information or representations made by any third parties or upon any
oral or written representations or assurances from the Company, its owners, directors, officers, employees, agents, or any other
representatives of the Company, other than as expressly set forth in this Agreement, the Registration Statement, and the Prospectus. 

 

2.8 Purchasing
Site.

 

(a) Purchaser
acknowledges that the Company has established Terms of Use for the Purchasing Site, which Terms of Use may be amended from time
to time. Purchaser has read and has complied with and agrees to continue to comply with the Terms of Use for the Purchasing Site.
Purchaser has verified the accuracy of the universal resource locator for the Purchasing Site used to purchase Tokens.

 

(b) Purchaser
acknowledges that Purchaser shall be solely responsible for inputting and transmitting all required documentation correctly and
accurately.

 

(c) Purchaser
acknowledges access to the Purchasing Site may be limited, unavailable or interrupted at any time, including, but not limited
to, during periods of peak demand, market volatility, system upgrades, maintenance, or during any other events impacting Purchaser,
Company or third party providers providing systems or services necessary for the Purchasing Site to be available and that the
Company will not be liable, and Purchaser will not attempt to hold the Company liable, for any losses arising out of or relating
to any inaccuracies, duplications or errors in any purchase placed on the Purchasing Site or resulting transactions.

 

    - 7 - 

     

    

 

2.9 Sanctions
Compliance; Anti-Money Laundering; Funds and Payments.

 

(a) Sanctions
Compliance. Neither Purchaser, nor any person having a direct or indirect beneficial interest in Purchaser or Tokens being
acquired by Purchaser, or any person for whom Purchaser is acting as agent or nominee in connection with Tokens, has been or is
(i) the subject of sanctions administered or enforced by the United States (including without limitation the U.S. Department of
the Treasury’s Office of Foreign Asset Control), the United Kingdom, the European Union or any other Governmental Authority
(collectively, “Sanctions”), (ii) organized or resident in a country or territory that is the subject of country-wide
or territory-wide Sanctions, or (iii) otherwise a party with which the Company is prohibited from dealing with under applicable
Laws.

 

(b) Anti-money
Laundering; Counter-Terrorism Financing. To the extent required by applicable Laws, Purchaser has complied and will continue
to comply with all anti-money laundering and counter-terrorism financing requirements.

 

(c) Funds
and Payments. The funds, including any fiat, virtual currency or cryptocurrency, Purchaser uses to purchase Tokens are not
derived from or related to any unlawful activities, including but not limited to money laundering or terrorist financing, and
Purchaser will not use, or permit the use of, Tokens to finance, engage in or otherwise support any unlawful activities. All payments
by or on behalf of Purchaser under this Agreement will be made only in Purchaser’s name, from a digital wallet or bank account
not located in a country or territory that has been designated as a “non-cooperative country or territory” by the
Financial Action Task Force, and is not a “foreign shell bank” within the meaning of the U.S. Bank Secrecy Act (31
U.S.C. § 5311 et seq.), as amended, and the regulations promulgated thereunder by the Financial Crimes Enforcement
Network, as such regulations may be amended from time to time.

 

2.10 No
Brokerage Fees. No broker, finder or financial advisor has acted for Purchaser in connection with this Agreement or the transactions
contemplated hereby, and no broker, finder or financial advisor is entitled to any broker’s, finder’s or financial
advisor’s fee or other commission in respect thereof based in any way on any contract or arrangement with Purchaser.

 

2.11 Foreign
Purchasers. If Purchaser is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code
of 1986, as amended), Purchaser hereby represents that it has satisfied itself as to the full observance of the Laws of Purchaser’s
jurisdiction in connection with any invitation to subscribe for the Tokens or any use of this Agreement, including (a) the
legal requirements within Purchaser’s jurisdiction for the purchase of the Tokens, (b) any foreign exchange restrictions
applicable to such purchase and the other transactions contemplated hereby, (c) any governmental or other consents that may
need to be obtained, and (d) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding,
redemption, sale, or transfer of the Tokens. Purchaser’s subscription and payment for and continued beneficial ownership
of the Tokens will not violate any applicable securities or other Laws of Purchaser’s jurisdiction.

 

    - 8 - 

     

    

 

3. Representations
and Warranties of the Company.

 

In
connection with the issuance and sale of the Tokens hereunder, the Company hereby represents and warrants to Purchaser that as
of the date hereof and as of the Closing Date:

 

3.1 Corporate
Status. The Company is a private company limited by shares duly organized, validly existing and in good standing under the
Laws of Gibraltar and has all requisite corporate power and authority to carry on its business as now conducted as described in
the Prospectus.

 

3.2 Foreign
Private Issuer and Emerging Growth Company. The Company is a “foreign private issuer” within the meaning
of Rule 405 under the Securities Act and eligible to register the offer and sale of Tokens on Form F-1 adopted by the Commission.
From the time of the initial confidential submission of the Registration Statement relating to the Tokens to the Commission through
the date hereof, the Company has been and is an Emerging Growth Company within the meaning of Rule 12b-2 under the Securities
Exchange Act of 1934.

 

3.3 Company
Power and Authority. The Company has all requisite power and authority to execute and deliver this Agreement and sell Tokens
to Purchaser and to carry out and perform its obligations under this Agreement, in each case subject to the terms hereof. The
Agreement constitutes a legal, valid and binding obligation of the Company enforceable against Company in accordance with its
terms.

 

3.4 Authorization.
This Agreement has been duly executed and delivered by the Company, and, upon the Closing, the Tokens will have been validly issued
to Purchaser in accordance with the terms hereof. This Agreement constitutes the legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms (except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general principles of
equity (whether considered in a proceeding at law or equity)).

 

3.5 Registration
Statement and Prospectus. The Company has prepared and filed the Registration Statement with the Commission under the Securities
Act, and, prior to the Closing Date, the Commission shall have declared the Registration Statement effective under the Securities
Act. None of the Registration Statement, the Prospectus or any amendment or supplement thereto filed on or prior to the Closing
Date included or will include any untrue statement of a material fact or omitted or will omit to state a material fact, in the
case of the Registration Statement or any amendment or supplement thereto, required to be stated therein, and, in the case of
the Prospectus or any amendment or supplement thereto, necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading.

 

3.6 Token
Issuances. The INX Tokens shall be designated as “INX Tokens.” The number of authorized INX Tokens is 200,000,000
of which up to 130,000,000 are being offered for sale in the Offering. Upon issuance pursuant to this Agreement, the Purchased
Tokens will be validly issued, fully paid and non-assessable and free of preemptive rights.

 

    - 9 - 

     

    

 

3.7 No
Conflict. The execution, delivery and performance of this Agreement will not result in: (a) any violation of, be in conflict
with in any material respect, or constitute a material default under, with or without the passage of time or the giving of notice
(i) any provision of the Company’s Memorandum and Articles of Association, (ii) any provision of any judgment, decree or
order to which the Company is a party, by which it is bound, or to which any of its material assets are subject, (iii) any material
contract, obligation or commitment to which the Company is a party or by which it is bound, or (iv) any applicable Laws; or (b)
the creation of any material lien, charge or encumbrance upon any material assets of the Company.

 

3.8 No
Consents or Approvals. The execution and delivery of and performance under this Agreement require no approval or other action
from any Governmental Authority or person or entity other than the Company, except for such consents, approvals, authorizations,
orders, filings, registrations or qualifications as (a) have already been obtained or made and are still in full force and effect,
(b) may be required by FINRA, (c) may be required by the Gibraltar Financial Services Commission and (d) may be required under
applicable state securities Laws in connection with the purchase, distribution and resale of Tokens.

 

3.9 No
Other Disclosure Materials.  Other than the Registration Statement and Prospectus, the Company has not, directly or indirectly,
distributed, prepared, used, authorized, approved or referred to, and will not distribute, prepare, use, authorize, approve or
refer to, any offering material in connection with the offering and sale of the Tokens.

 

4. Additional
Agreements.

 

4.1 Earning
Statement. The Company will make generally available to its security holders as soon as practicable an earning statement that
satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 under the Securities Act covering a period of at
least 12 months beginning with the first fiscal quarter of the Company occurring after the “effective date” (as defined
in Rule 158 under the Securities Act) of the Registration Statement; provided that the Company will be deemed to have furnished
such statement to its security holders the extent it is filed on the Commission’s Electronic Data Gathering, Analysis and
Retrieval system (“EDGAR”).

 

4.2 Blue
Sky Compliance. The Company will use commercially reasonable efforts to qualify or register (or to obtain exemptions from
qualifying or registering) the Tokens for offer and sale under the securities or “blue sky” Laws of states of the
United States where Tokens are offered and sold and will use its commercially reasonable efforts to continue such qualifications,
registrations and exemptions in effect so long as required for the distribution of the Tokens; provided that the Company
shall not be required to (a) qualify as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction
where it would not otherwise be required to so qualify, (b) file any general consent to service of process in any such jurisdiction,
or (c) subject itself to taxation in any such jurisdiction if it is not otherwise so subject as of the date hereof.

 

    - 10 - 

     

    

 

4.3 Expenses.
All costs, fees and expenses incurred by a Party in connection with the performance of such Party’s obligations hereunder
and in connection with the transactions contemplated by this Agreement shall be paid by such Party regardless of whether this
Agreement becomes effective or is terminated. Each Party shall be solely liable for all of its own fees and costs incurred in
any future transactions between the Parties.

 

4.4 Transfer.
Purchasers may be unable to trade or otherwise dispose of ownership of the Tokens until the INX Securities trading platform is
operational or another platform for trading INX Tokens becomes available. Potential Purchasers acknowledge that they may be
required to bear the financial risks of the Tokens for an indefinite period of time.

 

4.5 Additional
Information. Upon the Company’s request, Purchaser agrees to provide the Company with all additional information that
the Company deems necessary to comply with applicable Laws.

 

5. Termination.

 

5.1 General
Termination Right. This Agreement may be terminated by the Company by written (including electronic) notice to Purchaser
at any time prior to the Closing Date, and any such termination shall be without liability on the part of the Company (or any
of its affiliates, and its and their respective owners, directors, officers, employees, agents, advisors, or other
representatives) to Purchaser. In the event of a termination pursuant to this Section 5.1: (a) the Company shall cause
its payment services provider or the Escrow Agent, as applicable, to return promptly the Purchase Price to Purchaser without
deduction, offset or interest accrued thereon and (b) this Agreement, and all of Purchaser’s rights under this
Agreement, shall immediately terminate and shall thereafter be of no further force or effect.

 

5.2 Termination
Upon Purchaser’s Breach. In addition to the rights in Section 5.1, the Company reserves the right to terminate
this Agreement, in its sole discretion, in the event that Purchaser is in breach of any term of this Agreement. In the event of
a termination pursuant to this Section 5.2, (a) all of Purchaser’s rights in Tokens shall become immediately void
and of no further force and effect, (b) all of Purchaser’s rights under this Agreement shall immediately terminate, and
(c) Purchaser shall not be entitled to any other recourse (including any refund for any amounts paid to the Company in connection
with this Agreement).

 

5.3 Termination
Upon Transfer. Except for the rights of the transferee set forth in Section 8.8 hereto, this Agreement shall terminate upon
the transfer of INX Tokens completed in accordance with Section 3 of Exhibit B hereto.

 

5.4 Survival.
Notwithstanding anything to the contrary herein, the provisions of Section 5, Section 6, Section 7, and Section
8 shall survive the termination of this Agreement.

 

6. Indemnification.
Purchaser hereby agrees to indemnify the Company, any of its affiliates, and its and their respective owners, directors, officers,
employees, representatives and advisors, and to hold each of them harmless, from and against any loss, damage, liability, cost
or expense, including reasonable attorneys’ fees and costs of investigation, to which they may be put or which they may
reasonably incur or sustain due to or arising out of (a) any inaccuracy in or breach of any representation or warranty of Purchaser
or its affiliates or agents, whether contained in this Agreement or any other document provided by Purchaser to the Company in
connection with Purchaser’s investment in the Tokens (b) any nonfulfillment or breach of any covenant, agreement, or other
provision by Purchaser or its affiliates or agents, whether contained in this Agreement or any other document provided by Purchaser
to the Company in connection with Purchaser’s investment in the Tokens, or (c) the sale or distribution of the Tokens in
violation of the Securities Act or any other applicable Law or this Agreement. Notwithstanding any provision of this Agreement,
Purchaser does not waive any right granted to Purchaser under any applicable state securities Law. All indemnification provisions
shall survive the termination of this Agreement.

 

    - 11 - 

     

    

 

7. Limitation
of Liability; No Warranties.

 

7.1 Except
as expressly provided by this agreement and applicable Laws, the Company shall not be responsible or liable for any losses resulting
directly or indirectly from: (a) any act or omission of Purchaser or agent of Purchaser or any error, negligence, or misconduct
of Purchaser; (b) failure of transmission or communication facilities; (c) any other cause or causes beyond the Company’s
control, including, without limitation, for reasons such as acts of God, fire, flood, strikes, work stoppages, acts of terrorism,
governmental or regulatory action, delays of suppliers or subcontractors, war or civil disturbance, self-regulatory organization
actions, telecommunication line or computer hardware failures and any other telecommunication failures; (d) the Company’s
reliance on any instructions, notices, or communications that it believes to be from an individual authorized to act on behalf
of Purchaser, and Purchaser hereby waives any and all defenses that any such individual was not authorized to act on behalf of
Purchaser; (e) government restrictions; exchange, regulatory, or market rulings; suspension of trading; military operations; terrorist
activity; strikes, or any other condition beyond the Company’s control, including without limitation extreme market volatility
or trading volume; or (f) any action taken by Company to comply with applicable Laws or this Agreement.

 

7.2 TO
THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAWS AND RULES, THE COMPANY, ITS AFFILIATES, AND ITS CONTROLLING PERSONS, SHAREHOLDERS,
DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS WILL NOT BE RESPONSIBLE FOR ANY LOSSES EXCEPT THAT THE COMPANY SHALL BE RESPONSIBLE
FOR ANY LOSSES TO THE EXTENT THAT SUCH LOSSES ARISE FROM THE COMPANY’S GROSS NEGLIGENCE, FRAUD OR WILLFUL MISCONDUCT. IN
NO EVENT SHALL THE COMPANY, ITS AFFILIATES, CONTROLLING PERSONS, SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS BE LIABLE
TO PURCHASER OR ANY THIRD PARTY FOR ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES, OR DAMAGES
OF ANY KIND FOR LOST PROFITS OR REVENUES, TRADING LOSSES, INACCURATE DISTRIBUTIONS, LOSS OF BUSINESS OR DATA, EVEN IF ADVISED
OF THE POSSIBILITY OF ANY SUCH DAMAGES AND REGARDLESS OF WHETHER SUCH LIABILITY IS ASSERTED ON THE BASIS OF CONTRACT, TORT OR
OTHERWISE. FOR THE AVOIDANCE OF DOUBT, THIS PROVISION DOES NOT ACT AS A WAIVER OF ANY RIGHTS OF A PURCHASER UNDER THE FEDERAL
SECURITIES LAWS, INCLUDING ANY RIGHTS UNDER THE SECURITIES ACT OF 1933, TO THE EXTENT SUCH A WAIVER IS AGAINST PUBLIC POLICY AS
EXPRESSED IN THE ACT OR IS OTHERWISE UNENFORCEABLE.

 

    - 12 - 

     

    

 

7.3
THE COMPANY AND ITS AFFILIATES MAKE NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE SERVICES TO BE PROVIDED IN ACCORDANCE
WITH THIS AGREEMENT, INCLUDING THE PURCHASING SITE, OR THE RESULTS TO BE ACHIEVED BY THE USE THEREOF. THE COMPANY AND ITS AFFILIATES
DISCLAIM ALL EXPRESS, IMPLIED AND STATUTORY WARRANTIES INCLUDING, WITHOUT LIMITATION, INCLUDING WARRANTIES OF QUALITY, PERFORMANCE,
NON INFRINGEMENT, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE, NOR ARE THERE ANY WARRANTIES CREATED BY COURSE OF DEALING,
COURSE OF PERFORMANCE OR TRADE USAGE. THE COMPANY AND AFFILIATES DO NOT GUARANTEE THE ACCURACY, QUALITY, SEQUENCE, TIMELINESS,
RELIABILITY, PERFORMANCE, COMPLETENESS, CONTINUED AVAILABILITY, TITLE OR NON-INFRINGEMENT OF ANY DATA OR THIRD PARTY PROVIDER
SERVICES USED IN RELATION TO THE AGREEMENT AND EACH DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTIES. THE SERVICES TO BE PROVIDED BY
THE COMPANY (INCLUDING THE PURCHASING SITE) ARE PROVIDED ON AN “AS-IS”, “AS AVAILABLE” BASIS WITHOUT WARRANTY
OF ANY KIND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAWS AND RULES.

 

8. General
Provisions.

 

8.1 Counterparts.
This Agreement may be executed in any number of counterparts (including by means of facsimile and electronic mail (including portable
document format (pdf) or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com)),
each of which shall be an original but all of which together shall constitute one and the same instrument.

 

8.2 No
Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties. Further, (a) INX Tokens acquired
pursuant to this Agreement may be transferred only as set forth in Section 3 of Exhibit B hereto, (b) the Company
may assign or transfer this Agreement without Purchaser’s consent to its successors and assigns, including an affiliate
of the Company, and (c) Purchaser may not assign this Agreement without the prior written consent of the Company. For the avoidance
of doubt, Purchaser and Purchaser’s permitted assignees shall not transfer INX Tokens to third parties, including by transfer
of rights or access to an Ethereum wallet included in the Whitelist Database or an account of Purchaser held by INX Services,
except with the express permission of the Company. Any purported assignment in violation of this provision shall be a breach of
this Agreement and void ab initio.

 

8.3 Governing
Law; Venue. This Agreement shall be governed by and construed in accordance with the domestic Laws of the State of Delaware
without giving effect to any choice or conflict of laws provision or rule (whether of the State of Delaware or any other jurisdiction)
that would cause the application of the Laws of any jurisdiction other than the State of Delaware. EACH PARTY HEREBY IRREVOCABLY
AND UNCONDITIONALLY CONSENTS TO SUBMIT TO THE EXCLUSIVE JURISDICTION OF ANY STATE AND FEDERAL COURTS LOCATED WITHIN NEW CASTLE
COUNTY, DELAWARE FOR ANY ACTION, PROCEEDING OR INVESTIGATION (“LITIGATION”) ARISING OUT OF OR RELATING TO THIS
AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY (AND AGREES NOT TO COMMENCE ANY LITIGATION RELATING THERETO EXCEPT IN SUCH
VENUES).

 

    - 13 - 

     

    

 

8.4 Amendment.
No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by the Company and
Purchaser. The Company reserves the right to, prior to the Closing, modify the terms of the offering of the Tokens and the rights
and attributes of the Tokens described in the Prospectus in its sole discretion. If, prior to the Closing, the Company so amends
the terms of the Tokens in any material respect, it will give notice of such amendment to Purchaser and provide Purchaser at least
three (3) business days to withdraw its election to purchase Tokens as contemplated by this Agreement. Upon any such withdrawal,
the Agreement will terminate and all funds received from Purchaser be promptly returned, without interest.

 

8.5 Entire
Agreement. This Agreement constitutes the entire agreement among the Parties and supersedes any prior understandings, agreements,
or representations by or among the Parties, written or oral, to the extent they relate in any way to the subject matter hereof.

 

8.6 Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given
to any Party when delivered by hand, when delivered by electronic mail, or when mailed, first-class postage prepaid, (a) if to
Purchaser, at the electronic mail address set forth below Purchaser’s signature, or to such other electronic mail address
as Purchaser shall have furnished to the Company in writing, and (b) if to the Company, to it at INX Limited, 57/63 Line Wall
Road, Gibraltar GX11 1AA, or to such other address or addresses or electronic mail address or addresses, as the Company shall
have furnished to Purchaser in writing (provided that notice by electronic mail to the Company shall not be deemed given unless
the Company has affirmatively acknowledged receipt of such notice).

 

8.7 Severability.
If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal, inoperative or unenforceable
for any reason, this Agreement shall continue in full force and effect, it being intended that all rights and obligations of the
Parties hereunder shall be enforceable to the fullest extent permitted by law, and the Parties shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner in order
that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

 

8.8 No
Third-Party Beneficiaries. The terms and provisions of this Agreement are intended solely for the benefit of each Party and
their respective successors and assigns, and it is not the intention of the Parties to confer, and no provision hereof shall confer,
third-party beneficiary rights upon any other person; provided, that, any subsequent transferee of the INX Tokens pursuant to
a permitted transfer effected pursuant to Section 3 of Exhibit B hereto will be deemed a third party beneficiary
of the transferor’s rights as holder of INX Tokens set forth on Exhibit B hereto for so long as such transferee is
a holder of INX Tokens.

 

8.9 Electronic
Communications. Purchaser agrees and acknowledges that all agreements, notices, disclosures and other communications that
the Company may provide to Purchaser pursuant to this Agreement or in connection with or related to Purchaser’s purchase
or ownership of Tokens, including this Agreement, may be provided by the Company, in its sole discretion, to Purchaser in electronic
form.

 

8.10 Headings.
The headings used in this Agreement have been inserted for convenience of reference only and do not define or limit the provisions
hereof.

 

8.11 Construction.
The Parties acknowledge that each of them has had the benefit of legal counsel of its own choice and has been afforded an opportunity
to review this Agreement with its legal counsel and that this Agreement shall be construed as if jointly drafted by the Parties.

 

8.12 Available
Rights and Waivers. No failure or delay by any Party in exercising any right, power or privilege under this Agreement 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. The rights and remedies herein provided shall be cumulative and not exclusive
of any rights or remedies provided by law.

 

[Signature
page follows]

 

    - 14 - 

     

    

 

IN
WITNESS WHEREOF, the Parties have caused this Subscription Agreement to be executed by their duly authorized representatives on
the date first written above.

 

	 	INX LIMITED

	 	 	 
	 	By: 	                              
	 	Name:	 
	 	Its:	 
	 	 	 
	 	PURCHASER:
	 	 	 
	 	By: 	                       
	 	Name: 	 
	 	Email address:	 

 

    - 15 - 

     

    

 

EXHIBIT
A

 

PURCHASED
TOKENS AND AGGREGATE PURCHASE PRICE

 

	Purchaser
    Name	 	Number
    of Tokens	 	Purchase
    Price (USD):
	 	 	 	 	 

 

Payment
Details

(DEPOSIT
OF PURCHASE PRICE)

 

		☐	PAYMENT
BY WIRE TRANSFER – Send payment to the following:

 

	Purchase
    Price (USD):	 	 
	Bank
    Name: 	 	 
	Bank
    Address: 	 	 
	Institution
    No.:	 	 
	Branch
    No.: 	 	 
	Bank
    Account No.: 	 	 
	Swift
    Code/ABA No.:	 	 

 

		☐	PAYMENT
BY ETHEREUM – Send payment to the following:

 

	Ether
    (ETH) Digital Wallet Address:	 	Purchase
    Price (ETH)	 	ETH
    /USD Exchange Rate
	 	 	 	 	 

 

		☐	PAYMENT
BY BITCOIN – Send payment to the follow address:

 

	Bitcoin
    (BTC) Digital Wallet Address	 	Purchase
    Price (BTC)	 	BTC
    /USD Exchange Rate
	 	 	 	 	 

 

		*	The BTC/USD and ETH/USD exchange rates have been determined
by TradeBlock’s XBX and ETX Indices, respectively, at 12:00 a.m. (GMT) on the date Purchaser submitted this executed INX
Token Purchase Agreement to the Company.

 

Purchaser’s
Digital Wallet

(DELIVERY
OF TOKENS)

 

	Purchaser’s
    Digital Wallet Address:	 	 

 

    - 16 - 

     

    

 

EXHIBIT
B

 

RIGHTS
of INX tokens of INX LIMITED 

 

		1)	Designation
                                         and Number of Tokens. The INX Tokens of INX Limited (the “Company”)
                                         shall be designated as “INX Tokens.” The number of authorized INX Tokens
                                         is 200,000,000. The INX Token is an ERC20 blockchain asset that is programmed using a
                                         smart contract that is compatible with the Ethereum blockchain. The smart contract creating
                                         the INX Token was created on January 9, 2018 and re-deployed on [        ]. The smart contract
                                         for the INX Token is publicly viewable at the Website (as defined in Section 17).
                                         The rights of the INX Token holder are contractual rights set forth in the INX Token
                                         Purchase Agreement, including this Exhibit B.

 

		2)	Persons
                                         Deemed Holders of Record. To be deemed to be a holder of record of INX Tokens, a
                                         holder must (a) register an Ethereum wallet with the Company to be included on the Whitelist
                                         Database and (b) have the public wallet address of this Ethereum wallet recorded on the
                                         “INX Token distributed ledger” as the holder INX Tokens. INX Tokens held
                                         by a nominee on behalf of beneficial owners will be recorded on the INX Token Distributed
                                         Ledger as being held in the nominee’s Ethereum wallet and the nominee will be the
                                         holder of record.

 

The
“Whitelist Database” is a database stored on the data section of the INX Token smart contract. The Whitelist Database
contains a record of information about individuals and entities that have satisfied the Company’s KYC/AML compliance procedures
and thus are eligible to hold INX Tokens. Such information includes the digital wallet address, name and a KYC Reference ID linking
to KYC filing information. This information is recorded on the Ethereum blockchain in an encrypted format and it is not readable
by the general public. The Company will hold a private key which will enable the Company to add wallet addresses and personal
information to the Whitelist Database.

 

The
“INX Token distributed ledger” references the ledger of holdings of INX Tokens that is recorded on the Ethereum blockchain.
The INX Token distributed ledger records the public wallet addresses of all Ethereum wallets that hold INX Tokens and the balance
of INX Tokens in each wallet address. The INX Token distributed ledger is updated after each transfer of INX Tokens. Information
from the distributed ledger can be viewed using an Ethereum network block explorer, such as Etherscan.com.

 

		3)	Transfer.
                                         INX Tokens may be transferred only among Ethereum wallets included in the Whitelist Database.
                                         Transfers of INX Tokens will be executed by the INX Token smart contract under conditional
                                         permission that the wallet addresses of both the sender and receiver of INX Tokens are
                                         listed on the Whitelist Database. The INX Token smart contract will verify that both
                                         the sender and the receiver wallet addresses are included in the Whitelist Database prior
                                         to approving or rejecting the transfer. If either the sender or receiver wallet address
                                         is not listed in the Whitelist Database, the smart contract will reject the transfer
                                         and the INX Token Distributed Ledger will not be updated.

 

		4)	Use
                                         on the INX Trading Platforms; Purpose. INX Tokens do not have any rights, uses, purposes,
                                         attributes, functionalities or features, express or implied, outside of the Company’s
                                         trading platforms.

 

    - 17 - 

     

    

 

		a)	INX
                                         Securities Trading Platform. Holders of INX Tokens are entitled to a minimum ten percent
                                         (10%) discount on the payment of transaction fees on the INX Securities trading platform,
                                         as compared to fees paid using other currencies. In addition, the Company, from time
                                         to time in its sole discretion, may offer promotional incentives such as greater discounts
                                         for holders of INX Tokens compared to other forms of payment for transaction fees. Other
                                         terms for services on the INX Securities trading platform will be subject to change,
                                         as determined from time to time by the INX Securities trading platform.

 

		b)	INX
                                         Digital Trading Platform. Record holders of INX Tokens who hold their INX Tokens
                                         in their private wallets will be eligible to receive a discount on the payment of transaction
                                         fees on the INX Digital cryptocurrency trading platform, by linking their private wallet
                                         with their INX Digital trading platform account. The terms of these promotional incentives
                                         will be subject to change, as determined from time to time by the INX Digital Trading
                                         platform.

 

		5)	Cash
                                         Participation Rights. Commencing in calendar year 2021, subject to the conditions
                                         described herein, each INX Token held by parties other than the Company shall entitle
                                         its holder to receive a pro rata portion, based on the number of INX Tokens held by parties
                                         other than the Company as of March 31 of each such year, of an aggregate amount which
                                         equals 40% of the Company’s Adjusted Operating Cash Flow. The distribution will
                                         be made on April 30 of each calendar year, commencing on April 30, 2021, and will be
                                         based on the Company’s cumulative Adjusted Operating Cash Flow net of cash flows
                                         which have already formed a basis for a prior distribution, calculated as of December
                                         31 of each year.

 

		a)	Board
                                         Determination. Adjusted Operating Cash Flow shall be based upon the audited annual
                                         financial statements of the Company for the preceding fiscal year, as have been approved
                                         by the Company’s board of directors.

 

		b)	Amount.
                                         “Adjusted Operating Cash Flow” shall be calculated as net cash flow from
                                         operating activities as reflected in the consolidated statement of cash flow of the Company
                                         that is included in the audited consolidated financial statements of the Company and
                                         its subsidiaries as of December 31 of the year preceding the year of the distribution.
                                         For purposes of the calculation of the Adjusted Operating Cash Flow, cash flow from the
                                         sale and purchase of blockchain assets, including cash flow from the sale and purchase
                                         of the INX Token (excluding cash proceeds from an Initial Sale) and cash flow for interest
                                         paid and interest received, will be included in the calculation of Adjusted Operating
                                         Cash Flow regardless of their classification in the consolidated statement of cash flow
                                         of our Company. An “Initial Sale” refers to the first sale and transfer
                                         of the respective INX Token by the Company to an initial purchaser. If the “Adjusted
                                         Operating Cash Flow” is negative, no distribution shall be made.

 

		c)	Payment
                                         Dates. The cash participation rights shall begin for Adjusted Operating Cash Flow
                                         reflected in the Company’s audited consolidated financial statements for fiscal
                                         2020 with a payment (if any) occurring on April 30, 2021 to holders of record on March
                                         31, 2021. Thereafter, distributions for a fiscal year shall be paid on April 30 of the
                                         following year based on the number of Tokens held by parties other than the Company or
                                         a subsidiary of the Company as of March 31 of such year to the holders of record of INX
                                         Tokens as of March 31 of such year, or as otherwise declared by the Company by delivering
                                         notice to holders of INX Tokens of such dates. If the distribution date is not a Business
                                         Day, the applicable payment shall be due on the next succeeding Business Day. On and
                                         after April 1 of a given year, a transferee of INX Tokens will not receive the distribution
                                         paid on April 30 of that year, as the INX Token holder as of March 31 will be entitled
                                         to the distribution for the preceding fiscal year. “Business Day” shall mean
                                         any day other than Saturday, Sunday, or any other day on which banking institutions in
                                         the state of New York are authorized by law or executive action to close.

 

    - 18 - 

     

    

 

		d)	Distribution
                                         Requirements. Distributions will be divisible and rounded down to five decimal places
                                         (one-thousandth of a cent) and Token holders will be paid in full from the first dollar
                                         of Adjusted Operating Cash Flow that is distributed. No distribution will be made to
                                         any INX Token holder if the banking fee relating to such transfer exceeds the distribution
                                         amount owed to that Token holder.

 

		e)	Currency.
                                         Distributions will be paid in USD if the INX Token holder has provided Company with
                                         necessary bank account information. If bank account information has not been provided,
                                         distributions will be paid in ETH to the wallet address holding INX Tokens as indicated
                                         by the INX Token Distributed Ledger on the Ethereum blockchain.

 

		f)	Delivery.
                                         Distributions will be delivered in USD to the bank account provided by the Token
                                         holder, or in ETH to the Ethereum wallet address holding INX Tokens, if no bank account
                                         information has been provided to Company. If INX Tokens are held of record by a nominee
                                         on behalf of beneficial owners, distributions will be made to the holder of record.

 

		g)	Procedures.
                                         The Company may from time to time modify the procedures and conditions for payment and
                                         distributions for forth in clauses (c) through (f) of this Section 5
                                         and will provide notification of such modifications to the holders of the INX Tokens.
                                         Further, the Company's board of directors may decide to pay distributions on a quarterly
                                         basis, based on the Company's cumulative Adjusted Operating Cash Flow as of the end of
                                         each quarter. In such event, the distributions will be paid to parties holding INX Tokens
                                         as of the last day of the following quarter with payments made one month thereafter.
                                         If the Company's board of directors decides to transition to quarterly payments, the
                                         Company will provide notice at least three (3) months prior to the first payment.

 

		6)	Rights
                                         upon a Failure or a Change of Control. Each INX Token shall automatically become
                                         exchangeable, at the election of the holders thereof (as described below), for its pro
                                         rata portion (based upon the number of INX Tokens then outstanding) of the Cash Fund,
                                         if any of the following (each, a Triggering Event”) occur:

 

		a)	the
                                         Company fails to develop and operate a trading platform that permits the spot trading
                                         of Bitcoin and Ethereum by December 31, 2021, or

 

		b)	(i)
                                         a sale of all or substantially all of the assets of the Company; (ii) any person or entity
                                         becomes the beneficial owner, directly or indirectly, of more than 50% of the outstanding
                                         voting interests of the Company; or (iii) a merger, consolidation, recapitalization or
                                         reorganization of the Company with or into any person or entity pursuant to which the
                                         shareholders of the Company immediately prior to such transaction own less than 50% of
                                         the outstanding voting interests of the resulting entity or its parent company.

 

    - 19 - 

     

    

 

The
Company will provide each INX Token holder with notice of the occurrence of a Triggering Event, and the holder will have thirty
(30) days from the date such notice is furnished to advise the Company if the holder desires to exchange the INX Tokens held by
such holder for its pro rata portion of the Cash Fund. If the holder does not timely advise the Company of its election to so
exchange its INX tokens, the exchange right described herein will expire, the holder will retain the INX Tokens held by such holder,
and the holder will have no further rights to the Cash Fund, except as provided in Section 7 of this Exhibit B.

 

		7)	Rights
                                         upon an Insolvency Event. If (i) the Company permanently discontinues all the activities
                                         of INX Solutions and there is no successor conducting a substantially similar business
                                         that assumes the obligations of the Company with regard to the INX Tokens and (ii) an
                                         “Insolvency Event” occurs, then the Company will be in breach of this Section
                                         7, and this breach shall create a claim in favor of INX Token Holders that may be
                                         asserted by INX Token holders against the Company in any proceeding arising from such
                                         Insolvency Event. An “Insolvency Event” shall be the dissolution,
                                         winding up, or total or partial liquidation or reorganization, readjustment, arrangement,
                                         or similar proceeding relating to the Company or its property, whether voluntary or involuntary,
                                         or in bankruptcy, insolvency, receivership, arrangement, or similar proceedings or upon
                                         an assignment for the benefit of creditors, or upon any other marshaling or composition
                                         of the assets and liabilities of the Company, or otherwise.

 

		8)	Subordination
                                         by Shareholders of Certain Rights. In connection with its obligations set forth in
                                         Section 7 above, the Company has caused certain of its current shareholders, and
                                         shall cause its future shareholders (“Shareholders”), to execute a
                                         Waiver and Subordination Undertaking, under which such Shareholders agree to terms substantially
                                         similar to the following, in addition to other customary provisions for such agreements:

 

		a)	Each
                                         Shareholder irrevocably subordinates all payments by the Company on account of any Shareholders
                                         Claim (as defined below) to the prior satisfaction and payment in full by the Company
                                         of all Token Claims (as defined below).

 

		b)	Each
                                         Shareholder irrevocably waives and subordinates, to the prior satisfaction in full by
                                         the Company of any Token Claim, any claim, and undertakes that it shall not exercise
                                         any right or remedy, directly or indirectly, that it may acquire under, or as a result
                                         of the following, with respect to the cash amount reserved in the Cash Fund maintained
                                         by the Company: (i) any agreement it has with the Company; (ii) the organizational documents
                                         of the Company (including without limitation, the Memorandum and Articles of Association
                                         of the Company); or (iii) any applicable law or regulation.

 

		c)	In
                                         the event of any payment or distribution of assets of the Company of any kind or character,
                                         whether in cash, property, or securities, upon the dissolution, winding up, or total
                                         or partial liquidation or reorganization, readjustment, arrangement, or similar proceeding
                                         relating to the Company or its property, whether voluntary or involuntary, or in bankruptcy,
                                         insolvency, receivership, arrangement, or similar proceedings or upon an assignment for
                                         the benefit of creditors, or upon any other marshaling or composition of the assets and
                                         liabilities of the Company, or otherwise: (i) all amounts owing on account of all Token
                                         Claims shall first be paid in full, before any Shareholders Claim Payment (as defined
                                         below) is made; and (ii) so long as all Token Claims have not been paid in full, to the
                                         extent permitted by applicable law, any Shareholders Claim Payment to which a Shareholder
                                         would be entitled except for the provisions hereof, shall be paid or delivered by the
                                         trustee in bankruptcy, receiver, assignee for the benefit of creditors, or other liquidating
                                         agent making such payment for the benefit of each Token Holder for application to the
                                         payment of all Token Claims.

 

    - 20 - 

     

    

 

		d)	In
                                         the event that, notwithstanding the provisions above, any Shareholders Claim Payment
                                         is received in contravention of the provisions above by any Shareholder before all Token
                                         Claims are paid in full, such Shareholders Claim Payment shall be held in trust for the
                                         benefit of each Token Holder and shall be paid over or delivered to the Company for the
                                         benefit of each Token Holder for application to the payment in full of all Token Claims
                                         remaining unpaid to the extent necessary to give effect to the provisions above, after
                                         giving effect to any concurrent payments or distributions to each Token Holder in respect
                                         of all Token Claims.

 

		e)	Each
                                         Shareholder hereby subordinates any claim and shall not exercise any right or remedy,
                                         directly or indirectly, that it may acquire by way of subrogation under the Waiver and
                                         Subordination Undertaking, or as a result of the application of the provisions of the
                                         Waiver and Subordination Undertaking or otherwise, unless and until all Token Claims
                                         have been paid in full.

 

		f)	For
                                         the purpose of the Waiver and Subordination Undertaking:

 

		i)	“Shareholders
                                         Claim” means all indebtedness, liabilities, obligations, or undertakings of any
                                         kind or description of the Company owing to a Shareholder in respect of any and all shares
                                         issued by the Company to such Shareholder, whether now existing or hereafter arising,
                                         and whether due or to become due, absolute or contingent, liquidated or unliquidated,
                                         determined or undetermined.

 

		ii)	“Shareholders
                                         Claim Payment” means any payment or distribution by or on behalf of the Company,
                                         directly or indirectly, of assets of the Company of any kind or character, whether in
                                         cash, property, or securities, including on account of the purchase, redemption, or other
                                         acquisition of shares, as a result of any collection, sale, or other disposition of collateral,
                                         or by setoff exchange, or in any other manner, for or on account of shares of the Company.

 

		iii)	“Token
                                         Claim” means all indebtedness, liabilities, obligations, or undertakings of any
                                         kind or description of the Company owing to any Token Holder arising out of, outstanding
                                         under, evidenced by a Token or a Token Purchase Agreement, whether now existing or hereafter
                                         arising, and whether due or to become due, absolute or contingent, liquidated or unliquidated,
                                         determined or undetermined, and including without limitation any claim by a Token Holder
                                         against the Company for breaching a Token Purchase Agreement.

 

		iv)	“Cash
                                         Fund” shall bear the meaning ascribed to it in the public offering registration
                                         statement which shall be submitted to the US Securities and Exchange Commission by the
                                         Company. 

 

		9)	Voting
                                         Rights. Holders of INX Tokens have no right to vote or participate in the Company’s
                                         shareholder meetings or in the corporate governance of the Company. 

 

    - 21 - 

     

    

 

		10)	Information
                                         Rights. The holders of INX Tokens shall have no rights to receive any reports, notices
                                         and other information of the Company, except as expressly provided in this Exhibit
                                         B.

 

		11)	Exclusion
                                         of Other Rights. Except as expressly set forth in this Exhibit B, the INX Tokens
                                         do not provide the holder thereof with (a) rights of any form with respect to the Company
                                         or its revenues or assets, including, without limitation, any distribution, redemption,
                                         liquidation, proprietary (including all forms of intellectual property) or other financial
                                         or legal rights; (b) any ownership, equity, or other interest in the Company, including
                                         any preemptive or subscription rights; (c) rights to participate in, or benefit from
                                         significant corporate transactions in which the Company is a party, such as mergers,
                                         a sale of the Company, or sale of the Company’s assets; and (d) any voting powers,
                                         preferences and relative, participating, optional or other special rights. The INX Tokens
                                         are not loans to the Company. 

 

		12)	Repurchases.
                                                                                                                                                                                                                                                                      The                                          Company (or an affiliate of the Company) may from time to time repurchase INX
                                                                                                                                                                                                                                                                      Tokens,                                          pursuant to purchases effected on the INX Securities trading platform, other
                                                                                                                                                                                                                                                                      trading                                          platforms, or on a private basis.

 

		13)	Fractional
                                         Tokens. INX Tokens may be purchased, sold and transferred in fractional divisions
                                         to eighteen decimal places (0.000000000000000001). Sales of INX Tokens by the Company
                                         that would otherwise result in fractional divisions of more than five decimal places
                                         will be rounded down to five decimal places.

 

		14)	Amendment
                                         or Modification; Replacement. The Company may not amend, alter, suspend or terminate
                                         the rights of INX Tokens as set forth in this Exhibit B except: (a) as provided
                                         in this Exhibit B; or (b) with the express written consent the holder of INX Tokens;
                                         provided, however, that the Company may modify the terms set forth in this Exhibit
                                         B to the extent such modification does not materially impair the rights of the holder
                                         of INX Tokens. The Company may, at its sole discretion, replace the INX Tokens, the INX
                                         Token smart contract and the INX Token distributed ledger and distribute new blockchain
                                         assets (“Replacement Tokens”) that may be programmed using a different smart
                                         contract and using a different ledger of ownership (collectively, a “Replacement”);
                                         provided, however, that (x) the registered holders of the INX Tokens (or any Replacement
                                         Tokens) immediately prior to a Replacement receive one Replacement Tokens for each INX
                                         Token held by the registered holder; (y) all Replacement Tokens distributed pursuant
                                         to this Section 14 of Exhibit B shall have all the rights as are expressly
                                         set forth on this Exhibit B, subject to the terms hereof (except to the extent
                                         it is expressly modified by the terms of this Section 14 of Exhibit B);
                                         and (z) immediately following the distribution of Replacement Tokens as part of a Replacement,
                                         the INX Tokens (or previously distributed Replacement Tokens) will be void, will no longer
                                         represent the rights associated with this Exhibit B and any attempted or purported
                                         transfer of such INX Tokens will be void and without effect. 

 

		15)	Notices.
                                         All notices provided by the Company to holders of INX Tokens hereunder shall be delivered
                                         by an electronic notice sent to the holders of INX Tokens by posting such notice to the
                                         Website (as hereinafter defined).

 

		16)	Third-Party
                                         Beneficiaries. The rights and obligations set forth in this Exhibit B are
                                         intended solely for the benefit of the holder of INX Tokens. Upon any valid transfer
                                         of an INX Token in accordance with the transfer requirements of Section 3 of this
                                         Exhibit B, the rights and obligations of the transferor of an INX Token pursuant
                                         to this Exhibit B shall be automatically assigned to the transferee of such INX
                                         Tokens, with such transferee being a third party beneficiary to the terms of Exhibit
                                         B.

 

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		17)	INX
                                         Website. The Company has established [__________] (the “Website”), which
                                         contains publicly viewable information regarding the INX Token, including the INX Token
                                         smart contract, public wallet addresses with INX Token balances, the rights of INX Tokens,
                                         and applicable notices. The Company has established Terms of Use for the Website, which
                                         Terms of Use may be amended from time to time by the Company in its sole discretion.
                                         Holders of INX Tokens must comply with the Terms of Use for the Website. The Website
                                         may be limited, unavailable or interrupted at any time, including, but not limited to,
                                         during periods of peak demand, market volatility, system upgrades, maintenance, or during
                                         any other events impacting holders of INX Tokens, the Company or third party providers
                                         providing systems or services necessary for the Website to be available and that the
                                         Company will not be liable, and the Company shall not have any liability to any holders
                                         of INX Tokens for any losses arising out of or relating to any inaccuracies, duplications
                                         or errors in any purchases placed on the Website or resulting transactions.

 

		18)	Limitation
                                         of Liability; No Warranties with respect to INX Tokens.

 

		a)	Except
                                         as expressly provided by Delaware law, none of the terms of the INX Tokens shall cause
                                         the Company to be, and the Company shall not be, responsible or liable for any losses
                                         resulting directly or indirectly from: (i) any act or omission of a holder of INX Tokens
                                         or agent of a holder of INX Tokens or any error, negligence, or misconduct of a holder
                                         of INX Tokens; (ii) failure of transmission or communication facilities; (iii) any other
                                         cause or causes beyond the Company’s control, including, without limitation, for
                                         reasons such as acts of God, fire, flood, strikes, work stoppages, acts of terrorism,
                                         governmental or regulatory action, delays of suppliers or subcontractors, war or civil
                                         disturbance, self-regulatory organization actions, telecommunication line or computer
                                         hardware failures and any other telecommunication failures; (iv) the Company’s
                                         reliance on any instructions, notices, or communications that it believes to be from
                                         an individual authorized to act on behalf of a holder of INX Tokens, and each holder
                                         of INX Tokens hereby waives any and all defenses that any such individual was not authorized
                                         to act on behalf of such holder; (v) government restrictions; exchange, regulatory, or
                                         market rulings; suspension of trading; military operations; terrorist activity; strikes,
                                         or any other condition beyond the Company’s control, including without limitation
                                         extreme market volatility or trading volume; or (vi) any action taken by Company to comply
                                         with applicable laws or the terms of the INX Tokens. The Company is not responsible,
                                         and shall have no liability, for any mutilated, destroyed, lost and stolen INX Tokens.

 

		b)	TO
                                         THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAWS AND RULES, NONE OF THE TERMS OF THE INX
                                         TOKENS SHALL CAUSE THE COMPANY TO BE, AND THE COMPANY, ITS AFFILIATES, AND ITS CONTROLLING
                                         PERSONS, SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS WILL NOT BE, RESPONSIBLE
                                         FOR ANY LOSSES EXCEPT THAT THE COMPANY SHALL BE RESPONSIBLE FOR ANY LOSSES TO THE EXTENT
                                         THAT SUCH LOSSES ARISE FROM THE COMPANY’S GROSS NEGLIGENCE, FRAUD OR WILLFUL MISCONDUCT.
                                         IN NO EVENT SHALL THE COMPANY, ITS AFFILIATES, CONTROLLING PERSONS, SHAREHOLDERS, DIRECTORS,
                                         OFFICERS, EMPLOYEES AND AGENTS BE LIABLE TO A HOLDER OF INX TOKENS OR ANY THIRD PARTY
                                         FOR ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES,
                                         OR DAMAGES OF ANY KIND FOR LOST PROFITS OR REVENUES, TRADING LOSSES, INACCURATE DISTRIBUTIONS,
                                         LOSS OF BUSINESS OR DATA, EVEN IF ADVISED OF THE POSSIBILITY OF ANY SUCH DAMAGES AND
                                         REGARDLESS OF WHETHER SUCH LIABILITY IS ASSERTED ON THE BASIS OF CONTRACT, TORT OR OTHERWISE.
                                         FOR THE AVOIDANCE OF DOUBT, THIS PROVISION DOES NOT ACT AS A WAIVER OF ANY RIGHTS OF
                                         A PURCHASER UNDER THE FEDERAL SECURITIES LAWS, INCLUDING ANY RIGHTS UNDER THE SECURITIES
                                         ACT OF 1933, TO THE EXTENT SUCH A WAIVER IS AGAINST PUBLIC POLICY AS EXPRESSED IN THE
                                         ACT OR IS OTHERWISE UNENFORCEABLE.

 

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		c)	EXCEPT
                                         AS EXPRESS SET FORTH IN THIS EXHIBIT B, THE COMPANY AND ITS AFFILIATES MAKE NO
                                         REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO RIGHTS OF INX TOKENS, INCLUDING
                                         THE COMPANY’S WEBSITE, OR THE RESULTS TO BE ACHIEVED BY THE USE THEREOF. THE COMPANY
                                         AND ITS AFFILIATES DISCLAIM ALL EXPRESS, IMPLIED AND STATUTORY WARRANTIES INCLUDING,
                                         WITHOUT LIMITATION, INCLUDING WARRANTIES OF QUALITY, PERFORMANCE, NON-INFRINGEMENT, MERCHANTABILITY,
                                         OR FITNESS FOR A PARTICULAR PURPOSE, NOR ARE THERE ANY WARRANTIES CREATED BY COURSE OF
                                         DEALING, COURSE OF PERFORMANCE OR TRADE USAGE. THE COMPANY AND AFFILIATES DO NOT GUARANTEE
                                         THE ACCURACY, QUALITY, SEQUENCE, TIMELINESS, RELIABILITY, PERFORMANCE, COMPLETENESS,
                                         CONTINUED AVAILABILITY, TITLE OR NON-INFRINGEMENT OF ANY DATA OR THIRD PARTY PROVIDER
                                         SERVICES USED IN RELATION TO THE INX TOKENS AND EACH DISCLAIMS ANY EXPRESS OR IMPLIED
                                         WARRANTIES. THE SERVICES TO BE PROVIDED BY THE COMPANY IN CONNECTION WITH THE INX TOKENS
                                         (INCLUDING THE WEBSITE) ARE PROVIDED ON AN “AS-IS”, “AS AVAILABLE”
                                         BASIS WITHOUT WARRANTY OF ANY KIND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAWS
                                         AND RULES.

 

		19)	No
                                         Claim, Loan or Ownership Interest.

 

Other
than the rights of ownership expressly set forth in this Exhibit B, the holder of Tokens do not have rights of any form with respect
to the Company or its revenues or assets, including, without limitation, any voting, distribution, redemption, liquidation, proprietary
(including all forms of intellectual property) or other financial or legal rights. The Tokens are not indebtedness of Company.

 

		20)	Intellectual
                                         Property.

 

With
its purchase of a Token, Holder acknowledges and agrees that the Company retains all right, title and interest in all of the Company’s
intellectual property contained in the Tokens, including, without limitation, inventions, ideas, concepts, code, discoveries,
processes, marks, methods, software, compositions, formulae, techniques, information and data, whether or not patentable, copyrightable
or protectable in trademark, and any trademarks, copyright or patents based thereon. Holder shall not to use, reverse engineer,
modify, or alter any of the Company’s intellectual property for any reason without the Company’s prior written consent.

 

		21)	Governing
                                         Law; Venue.

 

		a)	The
                                         INX Tokens shall be governed by and construed in accordance with the domestic Laws of
                                         the State of Delaware without giving effect to any choice or conflict of laws provision
                                         or rule (whether of the State of Delaware or any other jurisdiction) that would cause
                                         the application of the Laws of any jurisdiction other than the State of Delaware. EACH
                                         HOLDER OF INX TOKENS HEREBY IRREVOCABLY AND UNCONDITIONALLY CONSENTS TO SUBMIT TO THE
                                         EXCLUSIVE JURISDICTION OF ANY STATE AND FEDERAL COURTS LOCATED WITHIN NEW CASTLE COUNTY,
                                         DELAWARE FOR ANY ACTION, PROCEEDING OR INVESTIGATION (“LITIGATION”) ARISING
                                         OUT OF OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY (AND AGREES
                                         NOT TO COMMENCE ANY LITIGATION RELATING THERETO EXCEPT IN SUCH VENUES).

 

 

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24 -

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