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***CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED
HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

DATED JULY 11, 2005

COST-U-LESS
CAYMAN HOLDINGS

AND

CAYMAN
DRUG LIMITED

AND

CAYMAN COST-U-LESS
LIMITED

AND

NAUL
BODDEN and ROBERT BODDEN

________________________________

SHAREHOLDERS AGREEMENT
________________________________

***CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED
HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

CONTENTS

	 	 	Recitals	 	4	 
	 
	1.	 	Definitions and Interpretation	 	5	 
	2.	 	The Company	 	10	 
	3.	 	First Closing	 	11	 
	4.	 	Share Capital and Financing	 	12	 
	5.	 	Obligations between First Closing and Second Closing	 	12	 
	6.	 	Conditions to Second Closing	 	13	 
	7.	 	Second Closing	 	14	 
	8.	 	Intellectual Property Matters	 	15	 
	9.	 	Representations and Warranties	 	16	 
	10.	 	CULS Call Option	 	18	 
	11.	 	Cayman Drug Put Option	 	19	 
	12.	 	Buy Out Price	 	20	 
	13.	 	CULS Drag Along Right	 	20	 
	14.	 	Company Sale	 	21	 
	15.	 	Dividends and other Distributions	 	21	 
	16.	 	Buy Out Events and Sell Out Events	 	21	 
	17.	 	Restrictive Covenants	 	23	 
	18.	 	No Conflict	 	23	 
	19.	 	Provision of Financial Statements	 	24	 
	20.	 	Annual Audit	 	24	 
	21.	 	Confidentiality	 	25	 
	22.	 	Guarantee	 	26	 
	23.	 	Supremacy of this Agreement	 	26	 
	24.	 	Costs	 	26	 
	25.	 	No Partnership or Agency	 	26	 
	26.	 	Entire Agreement	 	26	 
	27.	 	Mutual consultation and goodwill	 	27	 
	28.	 	Notices	 	27	 
	29.	 	Assignment	 	28	 

***CONFIDENTIAL
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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	30.	 	Waiver	 	28	 
	31.	 	Survival and validity	 	29	 
	32.	 	Termination Right	 	29	 
	33.	 	Authority of NB and RB	 	29	 
	34.	 	Governing Law, etc.	 	30	 
	35.	 	Counterparts	 	30	 
	36.	 	No Inferences	 	30	 

THE SCHEDULES

		
		
	1.	 	Memorandum and Articles of Association of the Company	 
	2.	 	Management Services Agreement	 
	3.	 	Financial Statements	 
	4.	 	Loan and Security Agreements	 

***CONFIDENTIAL
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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

THIS
SHAREHOLDERS AGREEMENT is made on July 11, 2005

BETWEEN:

	(1)	 	
Cost-U-Less Cayman Holdings, an exempted company incorporated
under the laws of the Cayman Islands having its registered office at the offices
of M&C Corporate Services Limited, PO Box 309GT, Ugland House, South Church
Street, George Town, Grand Cayman, Cayman Islands (“CULS”);

	(2)	 	
Cayman Drug Limited, a company incorporated in the Cayman Islands and
having its registered office at the offices of Close Trustees (Cayman) Limited,
P.O. Box 1034GT, Harbour Place, 103 South Church Street, George Town, Grand
Cayman, Cayman Islands ("Cayman Drug");

	(3)	 	
Cayman Cost-U-Less Limited, a company incorporated under the laws of the
Cayman Islands having its registered office at the offices of M&C Corporate
Services Limited, PO Box 309GT, Ugland House, South Church Street, George Town,
Grand Cayman, Cayman Islands (the “Company”);

	(4)	 	
Naul Bodden of c/o NCB Consulting Ltd, PO Box 1168 GT, Grand Cayman,
Cayman Islands (“NB”); and

	(5)	 	
Robert Bodden of c/o NCB Consulting Ltd, PO Box 1168 GT, Grand Cayman,
Cayman Islands (“RB”).

WHEREAS:

	(A)	 	
The parties have formed the Company as a new company to be jointly-owned by CULS
and Cayman Drug to own and operate one Cost-U-Less retail and wholesale store in
the Cayman Islands.

4

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	(B)	 	
The Company has obtained such licences as are required under Cayman Islands law
(other than a Pharmacy Licence) for CULS to beneficially own 60 per cent of the
Company and for the Company to carry on its proposed retail and wholesale
business.

	(C)	 	
The parties intend that for a 60 per cent interest in the Company, CULS shall
contribute US$600 at First Closing and an
additional *(REDACTED) at Second Closing (if it occurs).

	(D)	 	 The
parties intend that Cayman Drug will contribute US$400 at First Closing and  *(REDACTED) at
Second Closing (if it occurs).

	(E)	 	 *(REDACTED)

	(F)	 	 *(REDACTED)

	(G)	 	
RB has contracted to acquire, through a development company which he controls,
leasehold title to the land on which the parties intend to locate the
Company’s proposed store.

	(H)	 	
The parties intend that the Company or RB shall construct or procure the
construction of the proposed store on such land, and that the Company will enter
into a long-term lease of the Store or, if the Company is responsible for
developing the Store, the Site with RB’s development company.

	(I)	 	
The parties are entering into this Agreement to set out the terms governing
their relationship as direct or indirect shareholders in the Company; and the
Company has joined in this Agreement for the purposes of confirming its
compliance with the parties’ agreements in relation to it.

NOW IT IS AGREED as follows:

	1   	 	Definitions
and Interpretation

	1.1	 	
In this Agreement, including the Schedules, the following words and expressions
shall have the meanings set opposite them respectively, unless the context
otherwise requires:

5

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
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SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	 	 	*(REDACTED);

	 	 	“Affiliate” means
in relation to any company, a person who, directly or indirectly,  controls, is
controlled by, or is under common control with such company;

	 	 	“Board” means
the Board of Directors of the Company;

	 	 	“Bodden
Account” means such account as Cayman Drug may notify in writing to  CULS and/or
the Company from time to time;

	 	 	“Business
Day” means a day (not being a Saturday or Sunday) on which the banks  are open
for business in the State of Washington, U.S.A and in the Cayman  Islands;

	 	 	“Buy
Out Date” means the fifth anniversary of the date of this Agreement and  every
successive anniversary thereof (and in each such case includes the 20  Business Days
immediately following such date);

	 	 	“Buy Out
Event” means any of the events listed in Clause 16.1;

	 	 	“Buy Out
Price” means the price calculated in accordance with Clause 12;

	 	 	“Call Exercise
Date” has the meaning given in Clause 10.1;

	 	 	“Call Notice”
has the meaning given in Clause 10.1;

	 	 	“Call Option”
has the meaning given in Clause 10.1;

	 	 	“Call Shares”
has the meaning given in Clause 10.1;

	 	 	“Cayman
Drug Business” means the pharmacy licence held by Cayman Drug, all the  books
and records of Cayman Drug relating to the business carried on by it  (including, without
limitation, all pharmacy lists) and any other assets of  Cayman Drug (including, without
limitation, any inventory) nominated by CULS  prior to Second Closing other than any cash
in hand or at bank;

	 	 	“CD Premium”
has the meaning given in Clause 3;

6

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	 	 	“Class
A Shares” means voting preference shares of a nominal or par value of $1.00
each in the capital of the Company;

	 	 	“Class
B Shares” means non-voting ordinary shares of a nominal or par value of $1.00
each in the capital of the Company;

	 	 	“CULS Parent”
means Cost-U-Less, Inc., the ultimate parent company of CULS;

	 	 	“CULS Premium”
has the meaning given in Clause 3;

	 	 	“Directors” means
the directors, or the sole director, for the time being of the Company;

	 	 	“Distribution
Date” shall mean the last Business Day in each financial quarter of  CULS Parent
or such other dates as CULS and Cayman Drug may agree from time to  time;

	 	 	“Drag Along
Date” has the meaning given in Clause 13.1;

	 	 	“Drag Along
Notice” has the meaning given in Clause 13.1;

	 	 	“Drag Along
Shares” has the meaning given in Clause 13.1;

	 	 	“Existing CD
Shares” has the meaning given in Clause 2.2;

	 	 	“First
Closing” means completion of the subscription by CULS for 600 Class A  Shares
and 400 Class B Shares respectively in accordance with Clause 3 of this  Agreement;

	 	 	“Financial Statements”
means the financial statements of Cayman Drug in the form attached as Schedule 3;

	 	 	“Inventory” means
the inventory, equipment and other items which may be contributed to the  Company by CULS
under this Agreement;

	 	 	“Lease” has
the meaning given in Clause 5.2;

7

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	 	 	“Loan
and Security Agreements” the loan and security agreements in a form  similar to
the form attached as Schedule 4;

	 	 	“Management
Services Agreement” means the agreement to be entered into between the  Company
and CULS for the provision of management services and the licensing of  certain
intellectual property rights to the Company, an agreed final draft of  which is attached
as Schedule 2;

	 	 	“Memorandum” and
“Articles” means the Memorandum and Articles of Association of the Company;

	 	 	“Pharmacy
Licence” means a licence to operate a retail pharmacy business granted  pursuant
to The Pharmacy Law 1991 of the Cayman Islands;

	 	 	“Put Exercise
Date” has the meaning given in Clause 11.1;

	 	 	“Put Notice”
has the meaning given in Clause 11.1;

	 	 	“Put Option”
has the meaning given in Clause 11.1;

	 	 	“Put Shares”
has the meaning given in Clause 11.1;

	 	 	“Register
of  Members” means the register of members of the Company;

	 	 	“Registered Office”
means the registered office for the time being of the Company;

		 	“Second
Closing” means the paying up of the CULS Premium and, if applicable,  the *(REDACTED) and
of the CD Premium by Cayman Drug in  accordance with Clause 7 on the Second Closing Date;

	 	 	“Second
Closing Date” means the date on which the Store opens for business to  the
public or, if later, the date five Business Days after the date on which all  the
conditions to Second Closing have been satisfied or waived, or such other  date as the
parties may agree;

	 	 	“Sell Out
Event” means any of the events listed in Clause 16.2;

8

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	 	“Share” and
“Shares” means Class A Shares and/or Class B Shares, as the  context may
require, and includes a fraction of a Share; 

	 	“Shareholder” means
each of CULS and Cayman Drug; 

	 	“Site” means
the proposed location of the Store in Grand Cayman, being at West Bay  Beach North, Block
11D, Parcel 4/1/5; 

	 	“Statute” means
the Companies Law (2004 Revision) of the Cayman Islands and every  modification or
re-enactment thereof for the time being in force; 

	 	“Store” means
the proposed Cost-U-Less warehouse store to be constructed on the Site; 

	 	“written” and
“in writing” import all methods of representing,  reproducing or
communicating words or numerals in permanent visible form,  including printing,
lithography, photography, telecopying and telexing; and 

	 	
“year” means
calendar year. 

	1.2	In
this Agreement where the context permits:

		(a)	References
to “US$” or “US dollars” are to the  currency of the
United States of America unless otherwise specified;

		(b)	words
importing the singular number include the plural and vice versa;

		(c)	words
importing the masculine gender include the feminine gender and vice versa;

		(d)	words
importing persons include companies or associations or bodies of persons,  corporate or
unincorporate;

		(e)	references
to the “parties” are to the parties to this  Agreement;

		(f)	the
word “may” is permissive; the word “shall” is
imperative;

9

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

		(g) 	references
to documents or agreements in “agreed form” means as agreed by the
Shareholders at the date of this Agreement;

		(h)	a
reference to a statutory provision shall be deemed to include any amendment or
re-enactment thereof; and

		(i) 	references
to  Schedules are to the Schedules to this Agreement.

	1.3 	 The
headings in this Agreement are for ease of reference only and shall not  affect  its
construction or interpretation.

	2	The
Company

	2.1	The parties acknowledge and agree that the Company has the following  characteristics at the
date hereof:

		(a)	the
Company is a Cayman Islands ordinary resident company limited by shares;

		(b)	the
Memorandum and Articles of the Company are in the agreed form set out in  Schedule 1;

		(c)	the
Company has an authorised share capital of US$50,000 divided into 50,000  Shares of a
nominal or par value of US$1.00 each, which Shares may be issued as  Class A Shares or
Class B Shares;

		(d)	the
Registered Office of the Company is at the offices of M&C Corporate  Services
Limited, PO Box 309GT, George Town, Grand Cayman, Cayman Islands;

		(e)	the
name of the Company is “Cayman Cost-U-Less Limited”; and

		(f)	the
Company holds (i) a licence under the Local Companies (Control) Law (1999  Revision)
permitting CULS to own at least 60% of the issued share capital of the  Company and (ii)
a licence under the Trade and Business Licensing Law (2003  Revision) permitting it to
carry on a wholesale and retail business at the Site.

10

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	2.2	The
parties acknowledge that prior to the date of this Agreement the Company has  issued only
two shares, one registered in the name of RB, the second registered  in the name of NB
(the “Existing CD Shares”).

	3	First
Closing

	 	First
Closing  shall take place at the offices of Maples and Calder, Ugland House,  South
Church Street,  George Town, Grand Cayman, Cayman Islands immediately after  the parties
have entered  into this Agreement. At First Closing: 

		(a)	The
Existing CD Shares shall be designated by a resolution of the Board as Class  B Shares
and shall be transferred by RB and NB to Cayman Drug.

		(b)	CULS
shall subscribe unconditionally for 600 Class A Shares at an aggregate subscription
price of *(REDACTED), the nominal value of which (being US$600) shall be paid up in cash
at First Closing and the remainder (being the “CULS Premium”) shall be paid up
at Second Closing (the conditions to Second Closing having been satisfied or waived) in
accordance with Clause 7;

		(c)	
Cayman Drug shall subscribe unconditionally for 398 Class B Shares, which will
result in Cayman Drug holding 400 Class B Shares in aggregate at an aggregate
subscription price of *(REDACTED), the nominal value of
which (being US$400) shall be paid up in cash at or before First Closing and the
remainder (the “CD Premium”) shall be paid up at Second Closing
(the conditions to Second Closing having been satisfied or waived) in accordance
with Clause 7;

		(d)	
The parties shall procure that the Company allots and issues credited as fully
paid, sufficient Class A Shares and Class B Shares such that immediately
following First Closing the shareholdings recorded in the Register of Members of
the Company shall be as follows:

	 	(i) 	 600
Class A Shares will be registered in the name of CULS; and

	 	(ii) 	 400
Class B Shares to will be registered in the name of Cayman Drug; and

11

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ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

		(e)	the parties shall procure that all necessary resolutions of the Company or the  Board are
passed such that immediately following First Closing, there shall be  three directors of
the Company who shall be those nominated by CULS, two of whom  as A Directors and one of
whom as the B Director, in accordance with and as  defined in the Articles.

	4	Share capital and financing

	4.1	The Company shall, in accordance with and following completion of the events and
transactions referred to in Clause 3, have paid up share capital of US$1,000.  The Company’s
issued shares will, immediately following First Closing,  consist of 600 Class A Shares
owned by CULS and 400 Class B Shares owned by  Cayman Drug, all of a nominal or par value
of US$1.00 each.

	4.2	For the avoidance of doubt, if Second Closing does not take place in accordance  with this
Agreement neither the CULS Premium, the  *(REDACTED) nor the CD
Premium shall become payable.

	4.3	The Company shall be free to obtain financing from third party lenders or either  shareholder
on such terms as its directors deem appropriate, which will be based  on terms that the
Company could obtain from a third party lender on an  unguaranteed basis and, in the case
of CULS, may be pursuant to a loan and  security agreement similar to the terms of the
Loan and Security Agreements  (which will be adjusted to incorporate the terms that the
Company could obtain  from a third party lender on an unguaranteed basis).

	5	Obligations
between First Closing and Second Closing

	5.1	Cayman
Drug undertakes that between First Closing and Second Closing it will  continue to
operate its business in the ordinary course as such business is  currently carried on at
the date of this Agreement, and in particular it will  not:

		(i) 	take
any action that might reasonably be expected to result in a revocation or  impairment of
Cayman Drug’s Pharmacy Licence; or

		(ii) 	take
any action that might reasonably be expected to have a material adverse  effect on the
goodwill or profitability of its business.

12

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	5.2	RB
and the Company shall negotiate the terms of a long-term lease of the Store  or, if CULS
has agreed that the Company shall develop the Store, the Site (the  “Lease”),
which lease shall be on terms acceptable to CULS and  any relevant third party provider
of finance to CULS, the Company or any of  their Affiliates. If the Lease is a lease of
the Site only, the Lease shall also  contain a right of first refusal in favour of RB, in
the event that the Company  decides to sell the Store, on terms reasonably acceptable to
RB. Upon agreement  by RB, the Company and CULS of the terms of the Lease, RB shall
procure that the  leasehold owner of the Site enters into the Lease.

	5.3	RB
shall procure that all required planning permissions or other regulatory  consents are
obtained to enable the Store to be constructed.

	5.4	Either
RB will procure the building of the Store, or, if RB elects not to build  the Store, *(REDACTED) pursuant
to Clause 5.6 and CULS  having given its consent, the Company shall procure the building
of the Store.

	5.5	*(REDACTED)

		(i) 	*(REDACTED)

		(ii) 	*(REDACTED)

	5.6	Subject
to the consents referred to in Clause 5.5 having been obtained,  *(REDACTED), the
nominal value of which  *(REDACTED) shall be paid up at the time of
issue and the  remainder *(REDACTED) shall be paid up at Second
Closing  (the conditions to Second Closing having been satisfied or waived) in accordance
with Clause 7. *(REDACTED)

	5.7	RB,
NB and Cayman Drug shall promptly make available such documentation and  other materials
as CULS or the Company may reasonably request to fulfil their  due diligence requirements
in connection with the Company’s negotiation of  the Lease and their proposed
acquisitions of the Cayman Drug Business at Second  Closing.

	6	Conditions
to Second Closing

	6.1	Second
Closing shall be conditional on:

		(a)	agreement
and entry into the Lease in accordance with Clause 5.2;

		(b)	all
planning permissions or other regulatory consents required to permit the  construction of
the Store (in a form reasonably satisfactory to CULS) by or on  behalf of the Company
having been obtained;

13

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

		(c)	the
Store having been constructed (in a form reasonably satisfactory to CULS)  and being in a
fit condition to open to the public;

		(d)	the
undertakings set out in Clause 5.1 not having been breached;

		(e)	all
necessary regulatory consents having been obtained for the transfer of the  Cayman Drug
Business to CULS and then to the Company with effect from Second  Closing (including the
transfer of the Pharmacy Licence held by Cayman Drug to  the Company, on behalf of CULS
and itself, or the grant of a new Pharmacy  Licence to the Company at the expense of
Cayman Drug, in either case permitting  the Company to carry on a retail pharmacy
business at the Store) on terms and  conditions satisfactory to CULS;

		(f)	*(REDACTED) having
been issued by the Company to CULS pursuant to Clause 5.6 or *(REDACTED); and

		(g)	the
Management Services Agreement shall have been entered into  by the parties  thereto. 

	6.2	The conditions to Second Closing set out in Clause 6.1 may  only be  waived  by the written
consent of each of the parties, except  that the conditions set out in Clauses 6.1(d),
(e), (f) and (g) may be waived by  the sole written consent of CULS.

	7	Second
Closing

	7.1	Second Closing shall take place on the Second Closing Date. At Second Closing:

		(a)	Cayman
Drug shall transfer the Cayman Drug Business to CULS in consideration of  the payment by
CULS to Cayman Drug of *(REDACTED) in cash;

		(b)	Cayman
Drug shall pay up the CD Premium by the payment of *(REDACTED) in cash to the
Company;  and

		(c)	CULS
shall pay up the CULS Premium *(REDACTED) by (i) transfer to the Company of the
Cayman  Drug Business, which for such purposes shall be valued at *(REDACTED),
and, as to any  additional amount by (ii) physical or constructive delivery to the
Company of  Inventory, which for such purposes shall be valued at its cost to CULS or, if
CULS so  elects, by payment in cash or by capitalisation of all or part of any
outstanding debt  owed by the Company to CULS.

14

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	7.2	Any
amount contributed to the Company by CULS pursuant to Clause 7.1(c) in  excess of the
amount of CULS Premium *(REDACTED), payable  by it at Second Closing
shall represent a loan by CULS to the Company on terms  no less favourable to the Company
than the terms on which such financing could  have been obtained by the Company from a
third party lender on an unguaranteed  basis.

	7.3	Transfers
of the Cayman Drug Business pursuant to Clause 7.1 shall be made by  actual or
constructive delivery of the relevant assets to the extent possible,  and otherwise by
execution of the appropriate instruments of transfer by the  transferor and/or transferee
in each case. Where any required consent to any  such transfer has not been granted, the
relevant assets and any moneys generated  by or received in respect of such assets, shall
be held on trust by the  transferor for the transferee pending the granting of such
consent in each case.

	7.4	Acknowledging
that no liabilities in respect of the Cayman Drug Business are  intended to be
transferred to CULS or the Company pursuant to this Agreement,  Cayman Drug hereby
undertakes to indemnify CULS and the Company for any  liability incurred by either such
party in respect of the Cayman Drug Business  which (i) relates to any period prior to
Second Closing, and/or (ii) is  transferred to CULS or the Company at Second Closing on
transfer of the Cayman  Drug Business by operation of law or otherwise.

	7.5	For
the avoidance of doubt, the parties intend that the Store shall open for  business to the
public on the earliest practicable date upon each of the  conditions set out in Clause
6.1, other than Clause 6.1(d) and (e), having been  satisfied or waived, and that the
opening of the Store shall not be delayed by  the non-satisfaction or non-waiver of the
conditions set out in Clause 6.1(d)  and (e). Second Closing shall only take place on the
Second Closing Date when  and if such date is reached.

	8	Intellectual
Property Matters

	8.1	The
parties acknowledge that, with effect from First Closing, CULS Parent will  grant to the
Company a licence to use certain intellectual property on the terms  set out in the
Management Agreement.

	8.2	If
any party to this Agreement shall cease to be a shareholder in the Company,  and the
corporate name of the Company or any part of it contains any word or  words the same as 

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TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED
HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	 	or
similar  to the corporate name or any distinctive part of  the corporate name of that
shareholder  (the “Relevant  Wording”), the remaining shareholders shall
procure  that:

		(a)	within
30 days of such party ceasing to be a shareholder the corporate name  shall be changed so
as to exclude the Relevant Wording;  and

		(b)	within
90 days of such party ceasing to be a shareholder the Relevant Wording  shall be removed
from all signage, publicity materials or other materials of the  Company  and shall cease
to be used in any way in connection with the business of  the Company.

	9	Representations
and Warranties

	9.1	Each
Shareholder hereby represents and warrants as at the date of this  Agreement, that the
execution, delivery and performance by such Shareholder of  this Agreement are within the
powers of such Shareholder, have been duly  authorized and will not constitute or result
in a breach or default under, or  conflict with, any order, ruling or regulation of any
court or other tribunal or  of any governmental commission or agency, or any agreement or
other undertaking,  to which such Shareholder is a party or by which such Shareholder is
bound, and  will not violate any provisions of the incorporation documents, by-laws or
similar documents or instruments, as may be applicable, of such Shareholder.  Such
Shareholder has obtained all consents required to be obtained and complied  with all
legal requirements necessary to be complied with in order for this  Agreement or the
issuance of the Shares to be lawful and valid under the laws of  any jurisdiction to
which such Shareholder is subject.

	9.2	CULS
agrees to represent and warrant as at Second Closing that it has good legal  and
beneficial title to any Inventory contributed to the Company pursuant to  Clause 7.1(c).

	9.3	NB
and RB agree to represent and warrant as at First Closing and Second Closing  to CULS and
the Company that together they have good legal and beneficial title  to all the issued
shares of Cayman Drug, which are not encumbered in any manner.

	9.4	Cayman
Drug, RB and NB agree to represent and warrant as at First Closing and  Second Closing to
CULS and the Company that:

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

		(a)	Cayman
Drug has good legal and beneficial title to all the assets of the Cayman  Drug Business,
which are not encumbered in any manner and there are no  encumbrances or security
interests of any sort over any of Cayman Drug’s  assets or undertaking;

		(b)	Cayman
Drug is an ordinary limited liability company, duly incorporated and in  good standing in
the Cayman Islands, the books and records of which have been  duly maintained and are up
to date;

		(c)	the
Financial Statements present a reasonable view of the financial state of  Cayman Drug and
its business as at the date of, or period covered by, such  Financial Statements and are
not misleading;

		(d)	Cayman
Drug has not incurred any indebtedness in the nature of borrowings that  has not been
repaid in full, nor has it advanced any loan that has not been  repaid in full, nor has
it entered into any agreement to incur any indebtedness  or advance any loan;

		(e)	Cayman
Drug has at all times conducted its business materially in accordance  with all
applicable laws and regulations;

		(f)	Cayman
Drug is not involved as claimant or defendant or otherwise in any  litigation,
arbitration or administrative proceedings and no such proceedings  are pending or
threatened.

	9.5	Cayman
Drug, RB and NB agree to warrant and represent at Second Closing to CULS  and the Company
that all necessary regulatory and other consents have been  obtained for the transfer of
the Cayman Drug Business to the Company.

	9.6	RB
agrees (i) to warrant and represent at First Closing to CULS and the Company  that he, or
a company under his control, has the absolute unconditional right to  acquire good
leasehold title to the Site with a term not less that 40 years, and  (ii) to warrant and
represent at Second Closing to CULS and the Company that he,  or a company under his
control, has good leasehold title to the Site with a term  not less that 40 years.

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	10	CULS
Call Option

	10.1	CULS
shall have the option to purchase all the Shares held by Cayman Drug (the  “Call
Shares”) at the Buy Out Price on any Buy Out Date or at  any time upon the
occurrence of a Buy Out Event (the “Call  Option”). CULS may exercise
the Call Option by delivering a written  notice to Cayman Drug and the Company (the “Call
Notice”) at  least 20 Business Days prior to any Buy Out Date, if exercised in
relation to a  Buy Out Date, or at any time, if exercised in relation to a Buy Out Event,
specifying the date on which the Call Option will be exercised (being a date at  least 20
Business Days after the date of the Call Notice and not earlier than  the relevant Buy
Out Date, if delivered in relation to a Buy Out Date) (the  “Call Exercise  Date”).

	10.2	The
parties shall co-operate and take all reasonable steps to obtain any legal  or regulatory
consent required for CULS to purchase all the Shares held by  Cayman Drug pursuant to the
Call Option, including, without limitation, any  required amendment to the licence held
by the Company under the Local Companies  (Control) Law (1999 Revision). The Call
Exercise Date may be delayed for a  period of up to six months whilst such consents are
sought. If any necessary  consent is not obtained within such six month period, then at
the option of CULS  either (i) the Call Notice shall lapse, but without prejudice to the
right of  CULS to deliver further Call Notices in relation to the same or subsequent Buy
Out Dates or Buy Out Events or (ii) CULS may require Cayman Drug to transfer the  Shares
subject to the Call Option to any person designated by CULS where such  transfer does not
require any legal or regulatory consent or such consent has  been obtained (and Cayman
Drug agrees to co-operate in obtaining any required  consent to such transfer).

	10.3	On
the Call Exercise Date, CULS shall pay the Buy Out Price to Cayman Drug by  wire transfer
to the Bodden Account. The Company shall forthwith update the  Register of Members to
show CULS as the holder of the Call Shares, and in so  doing shall be entitled to rely
solely upon the copy of the Call Notice  delivered to it pursuant to this Clause 10.
Cayman Drug shall promptly surrender  to the Company for cancellation any share
certificate representing Call Shares  transferred pursuant to this

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	 	Clause
10. Cayman Drug  shall also execute a release  of any existing and future claims  against
CULS in the form  provided by CULS,  which will release CULS and its Affiliates.

	11	Cayman
Drug Put Option

	11.1	Cayman
Drug shall have the option to sell all its Shares (the “Put  Shares”) to
CULS at the Buy Out Price on the occurrence of a Sell Out  Event (the “Put Option”).
Cayman Drug may exercise the Put  Option by delivering a written notice to CULS and the
Company (the “Put  Notice”) specifying the date (being a date at least
20 Business Days  after the date of the Put Notice) on which the Put Option will be
exercised (the  “Put Exercise Date”).

	11.2	The
parties shall co-operate and take all reasonable steps to obtain any legal  or regulatory
consent required for CULS to purchase all the Shares held by  Cayman Drug pursuant to the
Put Option, including, without limitation, any  required amendment to the licence held by
the Company under the Local Companies  (Control) Law (1999 Revision). The Put Exercise
Date may be delayed for a period  of up to six months whilst such consents are sought. If
any necessary consent is  not obtained within such six month period, the Put Notice shall
lapse.

	11.3	On
the Put Exercise Date, CULS shall pay the Buy Out Price to Cayman Drug by  wire transfer
to the Bodden Account PROVIDED THAT if the Buy Out Price is equal  to or greater than
$200,000, CULS may elect to pay the Buy Out Price in five  equal annual instalments
(together with an amount of interest accrued up to the  date of each such instalment on
the then unpaid portion of the Buy Out Price at  a rate of interest equal to the most
favourable rate at which CULS Parent could  borrow such outstanding amount from third
party lenders on the first day of such  annual period), with the first such instalment
being payable on the Put Exercise  Date and subsequent instalments being payable on the
anniversary thereof. The  Company shall forthwith update the Register of Members to show
CULS as the  holder of the Put Shares, and in so doing shall be entitled to rely solely
upon  the copy of the Put Notice delivered to it pursuant to this Clause 11. Cayman  Drug
shall promptly surrender to the Company

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	 	for
cancellation  any share  certificate  representing Put Shares transferred pursuant to
this  Clause 11.  Cayman Drug shall also  execute a release of any existing and future
claims  against CULS  in the form provided by  CULS, which will release CULS and its
Affiliates.

	12	Buy
Out Price

	 	The
Buy Out Price shall be an amount *(REDACTED), as set out in such accounts or extracted
therefrom by the Company’s auditors, as calculated in accordance with U.S.
generally accepted accounting principles as they are applied to CULS Parent by its
auditors.

	13	CULS
Drag Along Right

	13.1	If
a third party offers to acquire all of the Shares held by CULS and CULS  intends to
accept such offer, CULS may deliver a written notice to Cayman Drug  and the Company
setting out reasonable details of such third party offer,  including the proposed
transfer date and consideration (the “Drag Along  Notice”) requiring
Cayman Drug to sell its Shares (the “Drag  Along  Shares”) to the
third party at the same time and on the  same terms. The date of such proposed transfer
(the “Drag Along  Date”) shall be at least 20 Business Days after the
date of the Drag Along  Notice.

	13.2	On
the Drag Along Date, CULS shall procure payment by the third party of the  consideration
set out in the Drag Along Notice to Cayman Drug by wire transfer  to the Bodden Account.
The Company shall forthwith update the Register of  Members to show the third party as
the holder of the Drag Along Shares, and in  so doing shall be entitled to rely solely
upon the copy of the Drag Along Notice  delivered to it pursuant to this Clause 13.
Cayman Drug shall promptly surrender  to the Company for cancellation any share
certificate representing Drag Along  Shares transferred pursuant to this Clause 13.
Cayman Drug hereby appoints CULS  and any of its directors, officers or other authorised
signatories as its  attorney to provide any 

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	 	consents
or execute any documentation on  behalf of  Cayman Drug required in connection with any
such sale to a third party of its  Drag Along Shares.

	14	Company
Sale

	 	If
a third party offers to acquire all or substantially all of the assets of the  Company
and CULS desires the Company to accept such offer, Cayman Drug agrees to  co-operate with
CULS for such purpose and to provide any required consents to  such sale. Cayman Drug
hereby appoints CULS and any of its directors, officers  or other authorised signatories
as its attorney to provide any consents or  execute any documentation on behalf of Cayman
Drug required in connection with  any such sale to a third party of the Company’s
assets.

	15	Dividends
and other Distributions

	 	The
Company will follow a full distribution policy and will, so far as possible,  distribute
realised profits and gains, after payment of Company expenses and  establishment of
reasonable reserves (which shall be determined by the directors  of the Company in their
absolute discretion) on each Distribution Date.

	16	Buy
Out Events and Sell Out Events

	16.1	A
Buy Out Event shall occur:

		(a)	if
Cayman Drug, NB or RB breaches or procures a breach of any term of this  Agreement, and
where such breach is capable of remedy the breach is continuing  30 days after written
notice of the breach has been given by CULS;

		(b)	if
any bankruptcy proceedings are commenced in relation to NB or RB;

		(c)	if Cayman Drug:

	 	 	(i) 	applies
for or consents to the appointment of a receiver, trustee or liquidator  of all or a
substantial part of its assets;

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	 	 	(ii)	is
unable, or admits in writing its inability, to pay its debts as they mature;

	 	 	(iii)	makes
a general assignment for the benefit of creditors;

	 	 	(iv)	is
adjudicated bankrupt or insolvent;

	 	 	(v)	is
dissolved;

	 	 	(vi)	files
a petition in bankruptcy or for re-organization or for an agreement  pursuant to a
bankruptcy act or any insolvency law providing for the relief of  debtors, now or
hereafter in effect;

	 	 	(vii)	files
an answer admitting the material allegations of, or consents to, or  defaults in
answering, a petition filed against it in any bankruptcy,  re-organization or insolvency
proceeding;

	 	 	(viii)	takes
corporate action for the purpose of effecting any of the foregoing; or

	 	 	(ix)	purports
to transfer any of its shares in the Company in violation of this  Agreement; or

		(d)	upon
a change of control of Cayman Drug, which for these purposes shall mean  that (i) any
person other than NB or RB acquires control over greater than fifty  per cent. of the
voting share capital of Cayman Drug either alone or together  with other persons with
whom he is acting in concert or (ii) any person other  than NB or RB acquires effective
control over the day to day affairs of Cayman  Drug.

		(e)	upon
a change of control of CULS, which for these purposes shall mean that any  person who
does not currently control CULS shall obtain control over greater  than fifty per cent.
of the voting share capital or the assets of CULS either  alone or together with other
persons with whom he is acting in concert.

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	16.2	A
Sell Out Event shall occur if at any time after the date which is five years  after the
date of this Agreement, CULS breaches any material term of this  Agreement and, where
such breach is capable of remedy, the breach is continuing  and no actions have been
commenced to cure the breach 30 days after written  notice of the breach has been given
to CULS.

	17	Restrictive
Covenants

	17.1	Cayman
Drug undertakes that it shall not, and undertakes to procure that neither  NB, RB nor any
other shareholder (or close relative of such shareholder) of  Cayman Drug from time to
time shall, take or omit to take, directly or  indirectly, any action, where the taking
or omitting to take such action (i)  might reasonably be considered likely to result in,
or which does result in, a  revocation or suspension of, or the imposition of additional
conditions in  relation to, any licence or permit required by the Company to do business
in the  Cayman Islands including, without limitation, any licences granted to the
Company pursuant to the Local Companies (Control) Law (1999 Revision) or the  Trade and
Business Licensing Law (2003 Revision) or (ii) otherwise has or may  have a detrimental
effect on or interfere with the business of the Company.

	17.2	Cayman
Drug undertakes that it shall not permit the transfer of any of its  issued shares or
issue any new shares (or, in each case, any other form of  equity interests) without the
prior written consent of CULS (which consent may  be granted or withheld at the sole and
absolute discretion of CULS).

	17.3	Cayman
Drug agrees that it will not enter into any agreement to transfer, or  otherwise purport
to transfer any of its Shares to a third party without the  prior written consent of CULS.

	18	No
Conflict

	 	Cayman
Drug acknowledges and agrees that CULS shall be entitled to enter into any  transaction
or agreement of any sort whatsoever with the Company. Cayman Drug,  NB and RB agree to
waive any right they may have to compensation in their  capacity as a direct or indirect
Shareholder of the Company resulting from such  transactions

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	 	and/or
agreements and to  provide all necessary consents thereto  and/or provide any necessary
powers of attorney  or other required authorising  documentation. For the avoidance of
doubt, but without  limiting the foregoing,  the following types of transaction shall be
permitted:

		(a)	any
transaction pursuant to the terms of the Management Services Agreement or of  the type
contemplated by the Management Services Agreement;

		(b)	CULS
(or any of its Affiliates, or its or their employees or agents) shall be  permitted to
enter into negotiations or any agreement with any third party in  relation to the
establishment of any business venture in the Cayman Islands,  including any such venture
that may compete with the Company; and

		(c)	CULS
(or any of its Affiliates) shall be permitted to establish and/or carry on  any other
business venture in the Cayman Islands, whether or not such venture  may compete with the
Company.

	19	Provision
of Financial Statements

	 	The
Company shall, and the Shareholders agree to procure that the Company shall at  the cost
of the Company, provide quarterly financial statements (comprising a  balance sheet, P&L
statement and cash flow statement) to CULS within 20  Business Days of the end of each
such financial quarter. Such financial  statements shall be prepared in accordance with
U.S. generally accepted  accounting principles and on the same basis and for the same
financial periods  as CULS Parent prepares its accounts, and the Company shall employ
such  accounting methods and practices as are required for CULS Parent to comply with
U.S. regulatory requirements (including any reporting obligations under U.S.  securities
laws).

	20	 Annual
Audit

	 	The
Company shall, and the Shareholders agree to procure that the Company shall at  the cost
of the Company, have its accounts audited annually by an accounting  firm 

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	 	nominated
by  CULS, in accordance with U.S. generally accepted accounting  principles as they are
applied by CULS Parent in its audited financial  statements.

	21	 Confidentiality
and Securities Laws

	21.1	Each
of the parties agrees to keep confidential all confidential information in  its
possession or that comes into its possession after the date of this  Agreement in
relation to any of the other parties (including any of their  Affiliates) or the Company,
this Agreement and any of the other agreements  referred to herein, any action taken
pursuant to this Agreement and the  negotiations relating to this Agreement, except that
the obligations contained  in this Clause shall not apply to any disclosure of
confidential information:

		(a)	required
by law or the rules of any regulatory body to which any party (or an  Affiliate of any
party) submits (including any securities listing authority or  any stock exchange), as
determined at the sole discretion of the disclosing  party (and the parties acknowledge
that CULS Parent may be required to disclose  this Agreement and any financial
information in relation to the Company in  compliance with its obligations to the
Securities Exchange Commission and  NASDAQ); or

		(b)	acquired
by any party after it ceases to be a shareholder in the Company (or in  the cases of NB
and RB, after Cayman Drug ceases to be a shareholder in the  Company), where such
information is not acquired in breach of any duty of  confidentiality; or

		(c)	where
such information has already entered the public domain other than as a  result of a
breach of confidentiality by the disclosing party.

	21.2	Cayman
Drug, NB and RB hereby agree and undertake to comply with all United  States securities
laws and regulations restricting the use of confidential  information relating to CULS
and/or CULS Parent including, without limitation,  any laws and regulations concerning
“insider dealing” (however termed)  in relation to securities issued by CULS
Parent.

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	22	Guarantee

	 	In
consideration of CULS entering into this Agreement, NB and RB hereby jointly and
severally unconditionally and irrevocably guarantee as a primary and continuing
obligation the due performance by Cayman Drug of all its obligations under or  pursuant
to this Agreement, which shall include, without limitation, a guarantee  of the accuracy
of any representations and warranties given by Cayman Drug  herein.

	23	Supremacy
of this Agreement

	 	CULS,
Cayman Drug, NB and RB shall each use their respective votes in the Company and  shall
use reasonable endeavours to pursue all other means at its disposal so as:  (a) to ensure
that this Agreement is duly performed; and (b) to ensure that the  provisions of the
Memorandum and Articles are not infringed (save that, in the  event of any conflict
between this Agreement and the Memorandum and the  Articles, this Agreement shall prevail
as between the parties).

	24	Costs

	 	The
costs of and incidental to the incorporation of the Company shall be borne and  paid by
the Company. The costs of each of CULS and Cayman Drug incurred in the  preparation and
execution of this Agreement or any other agreement to be entered  into at First Closing
or otherwise pursuant to this Agreement, shall be borne by  such party.

	25	No
Partnership or Agency

	 	Nothing
in this Agreement shall be deemed to constitute a partnership between CULS and  Cayman
Drug and/or NB and/or RB or constitute either party the agent of the  other for any
purpose or entitle either party to commit or bind the other party  in any manner.

	26	Entire
agreement

	 	This
Agreement and any other Agreements entered into at First Closing pursuant to  Clause 3 or
otherwise to be entered into pursuant to the terms of this Agreement  (the “Transaction
Documents”) set out the entire agreement and  understanding between 

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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	 	CULS,
Cayman  Drug, RB and NB with respect to the subject  matter hereof. It is agreed that:

		(a)	neither
party has entered into this Agreement in reliance upon any  representation, warranty or
undertaking of the other party which is not  expressly set out or referred to in the
Transaction Documents;

		(b)	no
party shall have any claim or remedy in respect of misrepresentation (whether  negligent
or otherwise) or untrue statement made by the other party; and

		(c)	this
Clause shall not exclude any liability for fraudulent misrepresentation.

	27	Mutual
consultation and goodwill

	 	CULS,
Cayman Drug, NB and RB confirm their intention to promote the best interests of  the
Company and to consult fully on all matters materially affecting the  development of the
Company’s business. Without imposing any additional  obligations not expressly set
out in this Agreement, each party agrees that such  obligations should be interpreted in
light of their aforementioned intentions.

	28	Notices

	 	Any
notice pursuant to this Agreement shall be in writing signed by (or by some  person duly
authorised by) the person giving it and may be served by leaving it  or sending it by
facsimile, prepaid recorded delivery or registered post to the  address of the other
party as follows (or to such other address as shall have  been duly notified in
accordance with this Clause). Notices shall be deemed  given (i) three days after the
date of mailing, (ii) the date of personal  delivery or sending by facsimile, or (iii)
two days after delivery to Federal  Express or other overnight courier, as the case may
be.

	 	The details for notices are:

Cost-U-Less Cayman Holdings

C/o Cost-U-Less, Inc.

3633 136th Place SE, Ste 110

Bellevue, WA 98006

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***CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED
HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	 	USA

Tel:             +1-425-945-0213  

Fax:             +1-425-945-0214  

Attention:  J Jeffrey Meder

	 	Cayman Drug Limited / Naul Bodden / Robert Bodden

C/o  NCB Consulting Ltd

PO  Box 1168 GT

Grand Cayman, Cayman Islands

Tel     :+1-345-946-0166

Attention:  Naul Bodden

	29	Assignment

	 	Unless
expressly permitted herein, the assignment by Cayman Drug of any of its rights  or
obligations under this Agreement is expressly prohibited without the prior  written
consent of CULS and this Agreement shall be binding upon any successors  or assigns of
Cayman Drug. Any of the rights or obligations of CULS under this  Agreement may be
assigned to any person by CULS.

	30	 Amendment;
Waiver

	 	Except
as expressly permitted by this Agreement, no amendment, modification,  termination or
waiver of any provision of this Agreement shall be valid unless  expressed in writing and
signed by all the parties to this Agreement. The waiver  by either CULS or Cayman Drug of
strict compliance of the provisions of this  Agreement by the other shall not be
interpreted as a waiver of any other right  provided for in this Agreement, nor as a
waiver to require the compliance of the  same right on future occasions. For the purposes
of this Clause 30, each of RB  and NB appoints Cayman Drug and any of its directors and
officers as his  attorney to execute

28

***CONFIDENTIAL
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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	 	on
his behalf any written consent to the amendment,  modification, termination or waiver of
any provision of this Agreement.

	31	Survival
and validity

	 	If
any provision of this Agreement is declared by a court of competent jurisdiction  to be
void, invalid or unenforceable in whole or in part and such provision is  not related to
the payment of any amount due to the Advisor hereunder, such  declaration shall not
affect the remaining parts or provisions of this  Agreement, which shall remain valid and
enforceable. In any such case the  parties shall negotiate in good faith with a view to
replacing the void or  unenforceable part or provision with a new valid part or provision
which  preserves the original intention of the parties.

	32	Termination
Rights

	 	If
(i) the Lease has not been entered into pursuant to Clause 5.2 within 9 calendar  months
of the date of this Agreement, or (ii) Second Closing has not occurred by  the date which
is 24 calendar months after the date of this Agreement and such  non-occurrence is the
result of non-satisfaction of any of the conditions set  out in Clause 6, CULS may
terminate this Agreement immediately on written notice  to Cayman Drug at any time.

	33	Authority
of NB and RB

	 	Cayman
Drug agrees and acknowledges that CULS will be entitled to rely on the authority  of NB
and/or RB to act on behalf of Cayman Drug in respect of any waiver,  consent,
acknowledgement or other document or action given, executed or carried  out under or
pursuant to the terms of this Agreement, until written notice of  the revocation of such
authority is given to CULS by Cayman Drug.

29

***CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED
HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	34	Governing
Law, etc.

	 	This
Agreement  shall be governed by, and construed in accordance with, the laws of the Cayman
Islands.

	 	The
parties agree that all disputes in relation to this Agreement shall be resolved  by
binding arbitration administered by the American Arbitration Association  under its
Commercial Arbitration Rules, before one arbitrator, with limited  discovery in Atlanta,
Georgia, USA. The arbitrator shall apply the laws of the  Cayman Islands without regard
to the conflict of laws principle. Any arbitration  award in respect of this Agreement
may be enforced in any court of competent  jurisdiction.

	34.1	The
parties agree that the courts of the State of Georgia, U.S.A. shall have  jurisdiction to
resolve any disputes in relation to, or to grant any order to  enforce, Clause 34.2 of
this Agreement and the parties irrevocably agree to  submit to such jurisdiction and to
waive any right to object on the grounds of  forum non conveniens or otherwise.

	35	 Counterparts

	 	This
Agreement, and any amendment hereto, may be executed in counterparts, each of  which
shall be deemed an original and all of which, when taken together, shall  constitute one
and the same instrument, binding on the parties, and the  signature of any party to any
counterpart shall be deemed a signature to, and  may be appended to, any other
counterpart.

	36	No
Inferences

	 	Each
of NB and RB hereby confirms that he has had the opportunity to consult legal  counsel
prior to his entry into this Agreement. The parties agree that the terms  of this
Agreement have been fully negotiated and that no terms shall be  construed against CULS
or the Company merely on the basis that the Agreement has  been drafted by legal counsel
to CULS.

[REMAINDER OF
PAGE LEFT BLANK]

30

***CONFIDENTIAL
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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

SCHEDULE
1

Memorandum
and Articles of Association

31

***CONFIDENTIAL
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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

SCHEDULE
2

Management
Services Agreement

32

***CONFIDENTIAL
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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

SCHEDULE
3

Financial
Statements

33

***CONFIDENTIAL
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HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

SCHEDULE
4

Loan
and Security Agreements

34

***CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED
HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS
ARE DESIGNATED AS *(REDACTED). A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as a deed
on the day and year first before written.

	Executed as a deed by  	)	 
	Cost-U-Less Cayman Holdings	)	 
	by	)	      _________________________________________
	duly authorised in that behalf	)	 

	Executed as a deed by  	)	 
	Cayman Drug Limited	)	 
	by	)	      _________________________________________
	duly authorised in that behalf	)	 

	Executed as a deed by  	)	 
	Cayman Cost-U-Less Limited	)	 
	by	)	      _________________________________________
	duly authorised in that behalf	)	 

	Executed as a deed by  	)	 
	Naul Bodden	) 	      _________________________________________
	 	 	 
	In the presence of	)	 
	Name:	)	      _________________________________________

	Executed as a deed by  	)	 
	Robert Bodden	) 	      _________________________________________
	 	 	 
	In the presence of	)	 
	Name:	)	      _________________________________________Exhibit 10.1

 INDEMNIFICATION AGREEMENT dated as of __________________________, 2005 between

                             Adept Technology, Inc.

       (the "Company"), and _______________________________ ("Indemnitee")

                  WHEREAS, the Board of Directors has determined that the
inability to attract and retain qualified persons as directors and officers is
detrimental to the best interests of the Company's stockholders and that the
Company should act to assure such persons that there will be adequate certainty
of protection through insurance and indemnification against risks of claims and
actions against them arising out of their service to and activities on behalf of
the Company; and

                  WHEREAS, the Company has adopted provisions in its By-laws
providing for indemnification of its officers and directors to the fullest
extent permitted by applicable law, and the Company wishes to clarify and
enhance the rights and obligations of the Company and Indemnitee with respect to
indemnification; and

                  WHEREAS, in order to induce and encourage highly experienced
and capable persons such as Indemnitee to serve and continue to serve as
directors and officers of the Company and in any other capacity with respect to
the Company, and to otherwise promote the desirable end that such persons will
resist what they consider unjustified lawsuits and claims made against them in
connection with the good faith performance of their duties to the Company, with
the knowledge that certain costs, judgments, penalties, fines, liabilities and
expenses incurred by them in their defense of such litigation are to be borne by
the Company and they will receive the maximum protection against such risks and
liabilities as may be afforded by law, the Board of Directors of the Company has
determined that the following Agreement is reasonable and prudent to promote and
ensure the best interests of the Company and its stockholders; and

                  WHEREAS, the Company desires to have Indemnitee continue to
serve as a director or officer of the Company and in such other capacity with
respect to the Company as the Company may request, as the case may be, free from
undue concern for unpredictable, inappropriate or unreasonable legal risks and
personal liabilities by reason of Indemnitee acting in good faith in the
performance of Indemnitee's duty to the Company; and Indemnitee desires to
continue so to serve the Company, provided, and on the express condition, that
he or she is furnished with the indemnity set forth hereinafter;

                  Now, therefore, in consideration of Indemnitee's continued
service as a director or officer of the Company, the parties hereto agree as
follows:

                  1. Service by Indemnitee. Indemnitee will serve and/or
continue to serve as a director or officer of the Company faithfully and to the
best of Indemnitee's ability so long as Indemnitee is duly elected or appointed
and until such time as Indemnitee is removed as permitted by law or tenders a
resignation in writing. This Agreement shall not impose any obligation on the
Company to continue Indemnitee's service to the Company beyond any period
otherwise required by law or by other agreements of the parties, if any.

                                       1
<PAGE>

                  2. Indemnification. The Company shall indemnify Indemnitee to
the fullest extent permitted by the Delaware General Corporation law in effect
on the date hereof or as such law may from time to time be amended (but, in the
case of any such amendment, only to the extent that such amendment permits the
Company to provide broader indemnification rights than said law permitted the
Company to provide prior to such amendment). Without diminishing the scope of
the indemnification provided by this Section, the rights of indemnification of
Indemnitee provided hereunder shall include but shall not be limited to those
rights hereinafter set forth, except that no indemnification shall be paid to
Indemnitee:

         (a) to the extent expressly prohibited by Delaware law or the By-laws
         of the Company;

         (b) for which payment is actually made to Indemnitee under a valid and
         collectible insurance policy or under a valid and enforceable indemnity
         clause, by-law or agreement of the Company or any other company or
         organization on whose board Indemnitee serves at the request of the
         Company, except in respect of any indemnity exceeding the payment under
         such insurance, clause, by-law or agreement;

         (c) in connection with an action, suit or proceeding, or part thereof
         (including claims and counterclaims) initiated by Indemnitee, except a
         judicial proceeding or arbitration pursuant to Section 10 to enforce
         rights under this Agreement, unless the action, suit or proceeding (or
         part thereof) was authorized by the Board of Directors of the Company;

         (d) with respect to any action, suit or proceeding brought by or on
         behalf of the Company against Indemnitee that is authorized by the
         Board of Directors of the Company, except as provided in Sections 4, 5
         and 6 below.

                  3. Action or Proceedings Other than an Action by or in the
Right of the Company. Except as limited by Section 2 above, Indemnitee shall be
entitled to the indemnification rights provided in this Section if Indemnitee is
a party or is threatened to be made a party to any Proceeding (other than an
action by or in the name of the Company) by reason of the fact that Indemnitee
is or was a director, officer, employee or agent of the Company, or is or was
serving at the request of the Company as a director, officer, employee or agent
or fiduciary of any other entity (including, but not limited to, another
corporation, partnership, joint venture or trust); or by reason of anything done
or not done by Indemnitee in any such capacity. Pursuant to this Section,
Indemnitee shall be indemnified against all costs, judgments, penalties, fines,
liabilities, amounts paid in settlement by or on behalf of Indemnitee, and
Expenses (defined below) actually and reasonably incurred by Indemnitee in
connection with such Proceeding, if Indemnitee acted in good faith and in a
manner he reasonably believed to be in or not opposed to the best interests of
the Company, and with respect to any criminal Proceeding, had no reasonable
cause to believe his or her conduct was unlawful.

                                       2
<PAGE>

                  4. Indemnity in Proceedings by or in the Name of the Company.
Except as limited by Section 2 above, Indemnitee shall be entitled to the
indemnification rights provided in this Section if Indemnitee was or is a party
or is threatened to be made a party to any Proceeding brought by or in the name
of the Company to procure a judgment in its favor by reason of the fact that
Indemnitee is or was a director, officer, employee or agent or fiduciary of the
Company, or by reason of anything done or not done by Indemnitee in any such
capacity. Pursuant to this Section, Indemnitee shall be indemnified against all
costs, judgments, penalties, fines, liabilities, amounts paid in settlement by
or on behalf of Indemnitee, and Expenses actually and reasonably incurred by
Indemnitee in connection with such Proceeding if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in or not opposed to the
best interests of the Company; provided, however, that no such indemnification
shall be made in respect of any claim, issue, or matter as to which Delaware law
expressly prohibits such indemnification by reason of any adjudication of
liability of Indemnitee to the Company, unless and only to the extent that the
Court of Chancery of the State of Delaware or the court in which such action or
suit was brought shall determine upon application that, despite the adjudication
of liability but in view of all the circumstances of the case, Indemnitee is
entitled to indemnification for such costs, judgments, penalties, fines,
liabilities and Expenses as such court shall deem proper.

                  5. Indemnification for Costs, Charges and Expenses of
Successful Party. Notwithstanding the limitations of Section 2(d), 3 and 4
above, to the extent that Indemnitee has been successful, on the merits or
otherwise, in whole or in part, in defense of any action, suit or proceeding
(including an action, suit or proceeding brought by or on behalf of the Company)
or in defense of any claim, issue or matter therein, including, without
limitation, the dismissal of any action without prejudice, or if it is
ultimately determined that Indemnitee is otherwise entitled to be indemnified
against Expenses, Indemnitee shall be indemnified against all Expenses actually
and reasonably incurred in connection therewith.

                  6. Partial Indemnification. If Indemnitee is entitled under
any provision of this Agreement to indemnification by the Company for some or a
portion of the costs, judgments, penalties, fines, liabilities or Expenses
actually and reasonably incurred in connection with any action, suit or
proceeding (including an action, suit or proceeding brought by or on behalf of
the Company), but not, however, for all of the total amount thereof, the Company
shall nevertheless indemnify Indemnitee for the portion of such costs,
judgments, penalties, fines, liabilities and Expenses actually and reasonably
incurred to which Indemnitee is entitled.

                  7. Indemnification for Expenses of a Witness. Notwithstanding
any other provision of this Agreement, to the maximum extent permitted by
applicable law, Indemnitee shall be entitled to indemnification against all
Expenses actually and reasonably incurred or suffered by Indemnitee or on
Indemnitee's behalf if Indemnitee appears as a witness or otherwise incurs legal
expenses as a result of or related to Indemnitee's service as a director or
officer of the Company, in any threatened, pending or completed legal,
administrative, investigative or other proceeding or matter to which Indemnitee
neither is, nor is threatened to be made, a party.

                  8. Determination of Entitlement to Indemnification. Upon
written request by Indemnitee for indemnification pursuant to Sections 3, 4, 5,
6 or 7 the entitlement of Indemnitee to indemnification, to the extent not
provided pursuant to the terms of this Agreement, shall be determined by the
following person or persons who shall be empowered to make such determination:
(a) the Board of Directors of the Company by a majority vote of Disinterested
Directors (defined below), whether or not such majority constitutes a quorum;

                                       3
<PAGE>

(b) a committee of Disinterested Directors designated by a majority vote of such
directors, whether or not such majority constitutes a quorum; (c) if there are
no Disinterested Directors, or if the Disinterested Directors so direct, by
Independent Counsel (defined below) in a written opinion to the Board of
Directors, a copy of which shall be delivered to Indemnitee; or (d) the
stockholders of the Company. Such Independent Counsel shall be selected by the
Board of Directors and approved by Indemnitee. Notwithstanding the foregoing, if
a Change in Control has occurred since the date of this Agreement and the
Indemnitee specifically requests in Indemnitee's written request for
indemnification pursuant to Sections 3, 4, 5, 6 or 7, that such determination
not be made by the parties identified in (a) or (b) above, such determination
shall be made by the party(ies) empowered to make such determination as
identified in (c) or (d). Upon failure of the Board so to select such
Independent Counsel or upon failure of Indemnitee so to approve, such
Independent Counsel shall be selected upon application to a court of competent
jurisdiction. Such determination of entitlement to indemnification shall be made
not later than 30 calendar days after receipt by the Company of a written
request for indemnification. Such request shall include documentation or
information which is necessary for such determination and which is reasonably
available to Indemnitee. Any Expenses incurred by Indemnitee in connection with
a request for indemnification or payment of Expenses hereunder, under any other
agreement, any provision of the Company's By-laws or any directors' and
officers' liability insurance, shall be borne by the Company. The Company hereby
indemnifies Indemnitee for any such Expense and agrees to hold Indemnitee
harmless therefrom irrespective of the outcome of the determination of
Indemnitee's entitlement to indemnification. If the person making such
determination shall determine that Indemnitee is entitled to indemnification as
to part (but not all) of the application for indemnification, such person shall
reasonably prorate such partial indemnification among the claims, issues or
matters at issue at the time of the determination.

                  9. Presumptions and Effect of Certain Proceedings. The
Secretary of the Company shall, promptly upon receipt of Indemnitee's request
for indemnification, advise in writing the Board of Directors or such other
person or persons empowered to make the determination as provided in Section 8
that Indemnitee has made such request for indemnification. Upon making such
request for indemnification, Indemnitee shall be presumed to be entitled to
indemnification hereunder and the Company shall have the burden of proof in
making any determination contrary to such presumption. If the person or persons
so empowered to make such determination shall have failed to make the requested
determination with respect to indemnification within 30 calendar days after
receipt by the Company of such request, a requisite determination of entitlement
to indemnification shall be deemed to have been made and Indemnitee shall be
absolutely entitled to such indemnification, absent actual and material fraud in
the request for indemnification. The termination of any Proceeding described in
Sections 3 or 4 by judgment, order, settlement or conviction, or upon a plea of
nolo contendere or its equivalent, shall not, of itself: (a) create a
presumption that Indemnitee did not act in good faith and in a manner which
Indemnitee reasonably believed to be in or not opposed to the best interests of
the Company, or, with respect to any criminal Proceeding, that Indemnitee had
reasonable cause to believe that Indemnitee's conduct was unlawful; or (b)
otherwise adversely affect the rights of Indemnitee to indemnification except as
may be provided herein.

                                       4
<PAGE>

                  10. Remedies of Indemnitee in Cases of Determination not to
Indemnify or to Pay Expenses. In the event that a determination is made that
Indemnitee is not entitled to indemnification hereunder or if payment has not
been timely made following a determination of entitlement to indemnification
pursuant to Sections 8 and 9, or if Expenses are not paid pursuant to Section
15, Indemnitee shall be entitled to final adjudication in a court of competent
jurisdiction of entitlement to such indemnification or payment. Alternatively,
Indemnitee at Indemnitee's option may seek an award in an arbitration to be
conducted by a single arbitrator pursuant to the rules of the American
Arbitration Association, such award to be made within sixty days following the
filing of the demand for arbitration. The Company shall not oppose Indemnitee's
right to seek any such adjudication or award in arbitration or any other claim.
The determination in any such judicial proceeding or arbitration shall be made
de novo on the merits and Indemnitee shall not be prejudiced by reason of a
determination (if so made) pursuant to Sections 8 or 9 that Indemnitee is not
entitled to indemnification. If a determination is made or deemed to have been
made pursuant to the terms of Section 8 or 9 that Indemnitee is entitled to
indemnification, the Company shall be bound by such determination and is
precluded from asserting that such determination has not been made or that the
procedure by which such determination was made is not valid, binding and
enforceable. The Company further agrees to stipulate in any such court or before
any such arbitrator that the Company is bound by all the provisions of this
Agreement and is precluded from making any assertions to the contrary. If the
court or arbitrator shall determine that Indemnitee is entitled to any
indemnification or payment of Expenses hereunder, the Company shall pay all
Expenses actually and reasonably incurred by Indemnitee in connection with such
adjudication or award in arbitration (including, but not limited to, any
appellate Proceedings).

                  11. Other Rights to Indemnification. Indemnification and
payment of Expenses provided by this Agreement shall not be deemed exclusive of
any other rights to which Indemnitee may now or in the future be entitled under
any provision of the By-laws or other organizational documents of the Company,
vote of stockholders or Disinterested Directors, provision of law, agreement or
otherwise.

                  12. Expenses to Enforce Agreement. In the event that
Indemnitee is subject to or intervenes in any Proceeding in which the validity
or enforceability of this Agreement is at issue or seeks an adjudication or
award in arbitration to enforce Indemnitee's rights under, or to recover damages
for breach of, this Agreement, Indemnitee, if Indemnitee prevails in whole or in
part in such action, shall be entitled to recover from the Company and shall be
indemnified by the Company against any actual Expenses incurred by Indemnitee.

                  13. Continuation of Indemnity. All agreements and obligations
of the Company contained herein shall continue during the period Indemnitee is a
director, officer, employee or agent of the Company or is serving at the request
of the Company as a director, officer, employee or agent or fiduciary of any
other entity (including, but not limited to, another corporation, partnership,
joint venture or trust) of the Company and shall continue thereafter with
respect to any possible claims based on the fact that Indemnitee was a director,
officer employee or agent of the Company or was serving at the request of the
Company as a director, officer, employee or agent or fiduciary of any other
entity (including, but not limited to, another corporation, partnership, joint
venture or trust). This Agreement shall be binding upon all successors and
assigns of the Company (including any transferee of all or substantially all of
its assets and any successor by merger or operation of law) and shall inure to
the benefit of the heirs, personal representatives and estate of Indemnitee.

                                       5
<PAGE>

                  14. Notification and Defense of Claim. Promptly after receipt
by Indemnitee of notice of any Proceeding, Indemnitee will, if a claim in
respect thereof is to be made against the Company under this Agreement, notify
the Company in writing of the commencement thereof; but the omission so to
notify the Company will not relieve it from any liability that it may have to
Indemnitee. Notwithstanding any other provision of this Agreement, with respect
to any such Proceeding of which Indemnitee notifies the Company:

         (a) The Company shall be entitled to participate therein at its own
         expense; and

         (b) Except as otherwise provided in this Section 14(b), to the extent
         that it may wish, the Company, jointly with any other indemnifying
         party similarly notified, shall be entitled to assume the defense
         thereof, with counsel satisfactory to Indemnitee. After notice from the
         Company to Indemnitee of its election so to assume the defense thereof,
         the Company shall not be liable to Indemnitee under this Agreement for
         any expenses of counsel subsequently incurred by Indemnitee in
         connection with the defense thereof except as otherwise provided below.
         Indemnitee shall have the right to employ Indemnitee's own counsel in
         such Proceeding, but the fees and expenses of such counsel incurred
         after notice from the Company of its assumption of the defense thereof
         shall be at the expense of Indemnitee unless (i) the employment of
         counsel by Indemnitee has been authorized by the Company, (ii)
         Indemnitee shall have reasonably concluded that there may be a conflict
         of interest between the Company and Indemnitee in the conduct of the
         defense of such action or (iii) the Company shall not within 60
         calendar days of receipt of notice from Indemnitee in fact have
         employed counsel to assume the defense of the action, in each of which
         cases the fees and expenses of Indemnitee's counsel shall be at the
         expense of the Company. The Company shall not be entitled to assume the
         defense of any Proceeding brought by or on behalf of the Company or as
         to which Indemnitee shall have made the conclusion provided for in (ii)
         above; and

         (c) If the Company has assumed the defense of a Proceeding, the Company
         shall not be liable to indemnify Indemnitee under this Agreement for
         any amounts paid in settlement of any Proceeding effected without the
         Company's written consent. The Company shall not settle any Proceeding
         in any manner that would impose any penalty or limitation on or
         disclosure obligation with respect to Indemnitee without Indemnitee's
         written consent. Neither the Company nor Indemnitee will unreasonably
         withhold its consent to any proposed settlement.

                  15. Payment of Expenses. All Expenses incurred by Indemnitee
in advance of the final disposition of any Proceeding shall be paid by the
Company at the request of Indemnitee, each such payment to be made within twenty
calendar days after the receipt by the Company of a statement or statements from
Indemnitee requesting such payment or payments from time to time. Indemnitee's
entitlement to such Expenses shall include those incurred in connection with any
Proceeding by Indemnitee seeking a judgment in court or an adjudication or award
in arbitration pursuant to this Agreement (including the enforcement of this
provision). Such statement or statements shall reasonably evidence the expenses
and costs incurred by Indemnitee in connection therewith and shall include or be
accompanied by an undertaking, in substantially the form attached as Exhibit 1,
by or on behalf of Indemnitee to reimburse such amount if it is finally
determined, after all appeals by a court of competent jurisdiction that
Indemnitee is not entitled to be indemnified against such Expenses by the
Company as provided by this Agreement or otherwise. Indemnitee's undertaking to
reimburse any such amounts is not required to be secured.

                                       6

<PAGE>

                  16. Separability; Prior Indemnification Agreements. If any
provision or provisions of this Agreement shall be held to be invalid, illegal
or unenforceable for any reason whatsoever (a) the validity, legality and
enforceability of the remaining provisions of this Agreement (including without
limitation, all portions of any paragraphs of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that are not by
themselves invalid, illegal or unenforceable) shall not in any way be affected
or impaired thereby, and (b) to the fullest extent possible, the provisions of
this Agreement (including, without limitation, all portions of any paragraph of
this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that are not themselves invalid, illegal or unenforceable) shall
be construed so as to give effect to the intent of the parties that the Company
provide protection to Indemnitee to the fullest enforceable extent. This
Agreement shall supersede and replace any prior indemnification agreements
entered into by and between the Company and Indemnitee and any such prior
agreements shall be terminated upon execution of this Agreement.

                  17. Headings; References; Pronouns. The headings of the
sections of this Agreement are inserted for convenience only and shall not be
deemed to constitute part of this Agreement or to affect the construction
thereof. References herein to section numbers are to sections of this Agreement.
All pronouns and any variations thereof shall be deemed to refer to the
masculine, feminine, neuter, singular or plural as appropriate.

                  18. Definitions. For purposes of this Agreement:

         (a) "Change in Control" means an occurrence, after the date of this
         Agreement, of a change in control of the Company of a nature that would
         be required to be reported in response to Item 6(e) of Schedule 14A of
         Regulation 14A (or in response to any similar item on any similar
         schedule or form) promulgated under the Securities Exchange Act of 1934
         (the "Act"), whether or not the Company is then subject to such
         reporting requirement; provided, however, that, without limitation,
         such a Change in Control also shall be deemed to have occurred if: (a)
         any "Person" (as such term is used in Section 13(d) of the Act), other
         than a trustee or other fiduciary holding Company securities under an
         employee benefit plan of the Company acting in such capacity or a
         corporation owned directly or indirectly by the stockholders of the
         Company in substantially the same proportions as their ownership of
         stock of the Company, is or becomes the "beneficial owner" (as defined
         in Rule 13d-3 under the Act) other than a Person holding securities of
         the Company representing 20% or more of the combined voting power of
         the Company's securities on the date of this Agreement, directly or
         indirectly, of securities of the Company representing 20% or more of
         the combined voting power of the Company's then outstanding securities
         without the prior approval of at least two-thirds of the members of the
         Board of Directors in office immediately prior to such person attaining
         such percentage interest; (b) the Company is a party to a merger,
         consolidation, sale of assets or other reorganization, or a proxy
         contest, as a consequence of which members of the Board of Directors in
         office immediately prior to such transaction or event constitute less
         than a majority of the Board of Directors thereafter; or (c) during any
         period of two consecutive calendar years, individuals who at the
         beginning of such period constituted the Board of Directors (including
         for this purpose any new director whose election or nomination for
         election by the Company's stockholders was approved by a vote of at
         least two-thirds of the directors then still in office who were
         directors at the beginning of such period or were so approved
         themselves) cease for any reason to constitute at least a majority of
         the Board of Directors.

                                       7
<PAGE>

         (b) "Disinterested Director" means a director of the Company who is not
         or was not a party to the Proceeding in respect of which
         indemnification is being sought by Indemnitee.

         (c) "Expenses" includes, without limitation, expenses incurred in
         connection with the defense or settlement of any and all
         investigations, judicial or administrative proceedings or appeals,
         attorneys' fees, witness fees and expenses, fees and expenses of
         accountants and other advisors, retainers and disbursements and
         advances thereon, the premium, security for, and other costs relating
         to any bond (including cost bonds, appraisal bonds or their
         equivalents), and any expenses of establishing a right to
         indemnification under Sections 8, 10 and 12 above but shall not include
         the amount of judgments, fines or penalties actually levied against
         Indemnitee.

         (d) "Independent Counsel" means a law firm or a member of a law firm
         that neither is presently nor in the past five years has been retained
         to represent: (i) the Company or Indemnitee in any matter material to
         either such party, or (ii) any other party to the Proceeding giving
         rise to a claim for indemnification hereunder. Notwithstanding the
         foregoing, the term "Independent Counsel" shall not include any person
         who, under the applicable standards of professional conduct then
         prevailing, would have a conflict of interest in representing either
         the Company or Indemnitee in an action to determine Indemnitee's right
         to indemnification under this Agreement.

         (e) "Proceeding" includes any threatened, pending or completed
         investigation, action, suit or other proceeding, whether brought in the
         name of the Company or otherwise, against Indemnitee, for which
         indemnification is not prohibited under Sections 2(a)-(c) above and
         whether of a civil, criminal, administrative or investigative nature,
         including, but not limited to, actions, suits or proceedings in which
         Indemnitee may be or may have been involved as a party or otherwise, by
         reason of the fact that Indemnitee is or was a director, officer,
         employee or agent of the Company, or is or was serving, at the request
         of the Company, as a director, officer, employee or agent or fiduciary
         of any other entity, including, but not limited to, another
         corporation, partnership, joint venture or trust, or by reason of
         anything done or not done by Indemnitee in any such capacity, whether
         or not Indemnitee is serving in such capacity at the time any liability
         or expense is incurred for which indemnification or reimbursement can
         be provided under this Agreement.

                  19. Other Provisions.

         (a) This Agreement shall be interpreted and enforced in accordance with
         the laws of Delaware.

                                       8
<PAGE>

         (b) This Agreement may be executed in one or more counterparts, each of
         which shall for all purposes be deemed to be an original but all of
         which together shall constitute one and the same Agreement. Only one
         such counterpart signed by the party against whom enforceability is
         sought needs to be produced as evidence of the existence of this
         Agreement.

         (c) This agreement shall not be deemed an employment contract between
         the Company and any Indemnitee who is an officer of the Company, and,
         if Indemnitee is an officer of the Company, Indemnitee specifically
         acknowledges that Indemnitee may be discharged at any time for any
         reason, with or without cause, and with or without severance
         compensation, except as may be otherwise provided in a separate written
         contract between Indemnitee and the Company.

         (d) Upon a payment to Indemnitee under this Agreement, the Company
         shall be subrogated to the extent of such payment to all of the rights
         of Indemnitee to recover against any person for such liability, and
         Indemnitee shall execute all documents and instruments required and
         shall take such other actions as may be necessary to secure such
         rights, including the execution of such documents as may be necessary
         for the Company to bring suit to enforce such rights.

         (e) No supplement, modification or amendment of this Agreement shall be
         binding unless executed in writing by both parties hereto. No waiver of
         any of the provisions of this Agreement shall be deemed or shall
         constitute a waiver of any other provisions hereof (whether or not
         similar) nor shall such waiver constitute a continuing waiver.

         (f) All notices, requests, demands and other communications hereunder
         shall be in writing and shall be deemed to have been duly given if: (a)
         actually received; or (b) mailed by certified or registered mail,
         postage prepaid, on the third business day after the date on which it
         is so mailed. Notices, requests and demands pursuant to this Agreement
         shall be provided to: the Company (attention: General Counsel and Chief
         Financial Officer) at its principal executive offices; with a copy to
         Gibson, Dunn & Crutcher LLP, One Montgomery Street, 31st Floor, San
         Francisco, CA 94104.

         (g) This Agreement shall be deemed to be the product of all of the
         parties hereto, and no ambiguity shall be construed in favor of or
         against any one of the parties hereto.

                                       9

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have executed this
Agreement on and as of the day and year first above written.

                             ADEPT TECHNOLOGY, INC.

                             By
                                ------------------------------------------------

                                ------------------------------------------------
                                                    Indemnitee

                                       10

<PAGE>

                                                                       EXHIBIT 1

                  UNDERTAKING TO REPAY INDEMNIFICATION EXPENSES

         I ___________________________________________________, agree to
reimburse Adept Technology, Inc. (the "Company") for all expenses paid to me by
the Company for my defense in any civil or criminal action, suit, or proceeding,
in the event, and to the extent that it shall ultimately be determined that I am
not entitled to be indemnified by the Company for such expenses.

                               Signature _____________________________

                               Typed Name __________________________
                               Date _______________________________
                               Office _______________________________

         __________________ ) ss:

Before me ______________________, on this day personally appeared
___________________, known to me to be the person whose name is subscribed to
the foregoing instrument, and who, after being duly sworn, stated that the
contents of said instrument is to the best of his/her knowledge and belief true
and correct and who acknowledged that he/she executed the same for the purpose
and consideration therein expressed.

GIVEN under my hand and official seal at ________, this _______ day
of ___________, 200__.

                                           ________________________________
                                                    Notary Public

My commission expires:

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