Document:

Exhibit 4.5

 

 

 

DEPOSIT AGREEMENT

 

 

by and among

 

 

Prudential Public Limited Company

 

 

AND

 

 

CITIBANK, N.A.,

as Depositary,

 

 

AND

 

 

THE HOLDERS AND BENEFICIAL OWNERS

OF AMERICAN DEPOSITARY SHARES EVIDENCED BY

AMERICAN DEPOSITARY RECEIPTS ISSUED HEREUNDER

 

 

 

 

Dated as of
______________

 

 

  

 

TABLE OF
CONTENTS

(continued)

 

	
  ARTICLE I

  	
  DEFINITIONS

  	
   

  
	
  Section 1.1

  	
  “Affiliate”

  	
   

  
	
  Section 1.2

  	
  “ADS Record
  Date”

  	
   

  
	
  Section 1.3

  	
  “American
  Depositary Receipt(s)”, “ADR(s)” and “Receipt(s)”

  	
   

  
	
  Section 1.4

  	
  “American
  Depositary Share(s)” and “ADS(s)”

  	
   

  
	
  Section 1.5

  	
  “Applicant”

  	
   

  
	
  Section 1.6

  	
  “Beneficial
  Owner”

  	
   

  
	
  Section 1.7

  	
  “Commission”

  	
   

  
	
  Section 1.8

  	
  “Company”

  	
   

  
	
  Section 1.9

  	
  “Custodian”

  	
   

  
	
  Section 1.10

  	
  “Deliver”
  and “Delivery”

  	
   

  
	
  Section 1.11

  	
  “Deposit
  Agreement”

  	
   

  
	
  Section 1.12

  	
  “Depositary”

  	
   

  
	
  Section 1.13

  	
  “Deposited
  Securities”

  	
   

  
	
  Section 1.14

  	
  “Dollars”
  and “$”

  	
   

  
	
  Section 1.15

  	
  “DTC”

  	
   

  
	
  Section 1.16

  	
  “DTC Participant”

  	
   

  
	
  Section 1.17

  	
  “Exchange
  Act”

  	
   

  
	
  Section 1.18

  	
  “Foreign
  Currency”

  	
   

  
	
  Section 1.19

  	
  “Full
  Entitlement ADR(s)”, “Full Entitlement ADS(s)” and “Full Entitlement
  Share(s)”

  	
   

  
	
  Section 1.20

  	
  “Holder(s)”

  	
   

  
	
  Section 1.21

  	
  “Partial
  Entitlement ADR(s)”, “Partial Entitlement ADS(s)” and “Partial Entitlement
  Share(s)”

  	
   

  
	
  Section 1.22

  	
  “Pre-Release
  Transaction”

  	
   

  
	
  Section 1.23

  	
  “Principal
  Office”

  	
   

  
	
  Section 1.24

  	
  “Registrar”

  	
   

  
	
  Section 1.25

  	
  “Restricted
  Securities”

  	
   

  
	
  Section 1.26

  	
  “Securities
  Act”

  	
   

  
	
  Section 1.27

  	
  “Share
  Registrar”

  	
   

  
	
  Section 1.28

  	
  “Shares”

  	
   

  
	
  Section 1.29

  	
  “United
  States” and “U.S.”

  	
   

  
	
  Section 1.30

  	
  “Pounds
  Sterling” and “£”

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  APPOINTMENT OF DEPOSITARY; FORM OF RECEIPTS;
  DEPOSIT OF SHARES; EXECUTION AND DELIVERY, TRANSFER AND SURRENDER OF RECEIPTS

  	
   

  
	
  Section 2.1

  	
  Appointment
  of Depositary

  	
   

  
	
  Section 2.2

  	
  Form and
  Transferability of ADRs

  	
   

  
	
  Section 2.3

  	
  Deposit with
  Custodian

  	
   

  
	
  Section 2.4

  	
  Registration
  and Safekeeping of Deposited Securities

  	
   

  
	
  Section 2.5

  	
  Issuance of
  ADSs; Execution and Delivery of ADRs

  	
   

  
	
  Section 2.6

  	
  Transfer,
  Combination and Split-up of ADRs

  	
   

  
	
  Section 2.7

  	
  Surrender of
  ADSs and Withdrawal of Deposited Securities

  	
   

  
				

 

i

  

 

	
  Section 2.8

  	
  Limitations
  on Execution and Delivery, Transfer, etc. of ADRs; Suspension of Delivery,
  Transfer, etc.

  	
   

  
	
  Section 2.9

  	
  Lost ADRs,
  etc

  	
   

  
	
  Section 2.10

  	
  Cancellation
  and Destruction of Surrendered ADRs; Maintenance of Records

  	
   

  
	
  Section 2.11

  	
  Partial
  Entitlement ADSs

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  CERTAIN OBLIGATIONS OF HOLDERS AND
  BENEFICIAL OWNERS OF ADSs

  	
   

  
	
  Section 3.1

  	
  Proofs,
  Certificates and Other Information

  	
   

  
	
  Section 3.2

  	
  Liability for
  Taxes and Other Charges

  	
   

  
	
  Section 3.3

  	
  Representations
  and Warranties on Deposit of Shares

  	
   

  
	
  Section 3.4

  	
  Compliance
  with Information Requests

  	
   

  
	
  Section 3.5

  	
  Ownership
  Restrictions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  THE DEPOSITED SECURITIES

  	
   

  
	
  Section 4.1

  	
  Cash
  Distributions

  	
   

  
	
  Section 4.2

  	
  Distribution
  in Shares

  	
   

  
	
  Section 4.3

  	
  Elective
  Distributions in Cash or Shares

  	
   

  
	
  Section 4.4

  	
  Distribution
  of Rights to Purchase Additional ADSs

  	
   

  
	
  Section 4.5

  	
  Distributions
  Other Than Cash, Shares or Rights to Purchase Shares

  	
   

  
	
  Section 4.6

  	
  Distributions
  with Respect to Deposited Securities in Bearer Form

  	
   

  
	
  Section 4.7

  	
  Redemption

  	
   

  
	
  Section 4.8

  	
  Conversion of
  Foreign Currency

  	
   

  
	
  Section 4.9

  	
  Fixing of ADS
  Record Date

  	
   

  
	
  Section 4.10

  	
  Voting of
  Deposited Securities

  	
   

  
	
  Section 4.11

  	
  Changes
  Affecting Deposited Securities

  	
   

  
	
  Section 4.12

  	
  Available Information

  	
   

  
	
  Section 4.13

  	
  Reports

  	
   

  
	
  Section 4.14

  	
  List of
  Holders

  	
   

  
	
  Section 4.15

  	
  Taxation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  THE DEPOSITARY, THE CUSTODIAN AND THE COMPANY

  	
   

  
	
  Section 5.1

  	
  Maintenance
  of Office and Transfer Books by the Registrar

  	
   

  
	
  Section 5.2

  	
  Exoneration

  	
   

  
	
  Section 5.3

  	
  Standard of
  Care

  	
   

  
	
  Section 5.4

  	
  Resignation
  and Removal of the Depositary; Appointment of Successor Depositary

  	
   

  
	
  Section 5.5

  	
  The Custodian

  	
   

  
	
  Section 5.6

  	
  Notices and Reports

  	
   

  
	
  Section 5.7

  	
  Issuance of
  Additional Shares, ADSs etc.

  	
   

  
	
  Section 5.8

  	
  Indemnification

  	
   

  
	
  Section 5.9

  	
  Fees and
  Charges of Depositary

  	
   

  
	
  Section 5.10

  	
  Pre-Release
  Transactions

  	
   

  
				

 

ii

  

 

	
  Section 5.11

  	
  Restricted
  Securities Owners

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  AMENDMENT AND TERMINATION

  	
   

  
	
  Section 6.1

  	
  Amendment/Supplement

  	
   

  
	
  Section 6.2

  	
  Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  MISCELLANEOUS

  	
   

  
	
  Section 7.1

  	
  Counterparts

  	
   

  
	
  Section 7.2

  	
  No
  Third-Party Beneficiaries

  	
   

  
	
  Section 7.3

  	
  Severability

  	
   

  
	
  Section 7.4

  	
  Holders and
  Beneficial Owners as Parties; Binding Effect

  	
   

  
	
  Section 7.5

  	
  Notices

  	
   

  
	
  Section 7.6

  	
  Governing Law
  and Jurisdiction

  	
   

  
	
  Section 7.7

  	
  Assignment

  	
   

  
	
  Section 7.8

  	
  Compliance
  with U.S. Securities Laws

  	
   

  
	
  Section 7.9

  	
  U.K. Law
  References

  	
   

  
	
  Section 7.10

  	
  Titles and
  References

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Form of ADR

  	
   

  	
   

  
	
  Fee Schedule

  	
   

  	
   

  
				

 

 

iii

  

 

DEPOSIT AGREEMENT

 

DEPOSIT
AGREEMENT, dated
as of ___________, by and among (i) Prudential Public Limited Company, a
company organized under the laws of England and Wales, and its successors (the
“Company”), (ii) CITIBANK, N.A., a national banking association organized
under the laws of the United States of America acting in its capacity as
depositary, and any successor depositary hereunder (the “Depositary”), and
(iii) all Holders and Beneficial Owners of American Depositary Shares
evidenced by American Depositary Receipts issued hereunder (all such
capitalized terms as hereinafter defined).

 

W I T N E S S E T H  T H A T:

 

WHEREAS, the Company desires to establish with
the Depositary an ADR facility to provide for the deposit of the Shares (as
hereinafter defined) and the creation of American Depositary Shares
representing the Shares so deposited and for the execution and delivery of
American Depositary Receipts evidencing such American Depositary Shares; and

 

WHEREAS, the Depositary is willing to act as the
Depositary for such ADR facility upon the terms set forth in this Deposit
Agreement; and

 

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

 

WHEREAS, the American Depositary Shares to be
issued pursuant to the terms of this Deposit Agreement are to be listed for
trading on The New York Stock Exchange, Inc.; and

 

WHEREAS, the Board of Directors of the Company
(or an authorized committee thereof) has duly approved the establishment of an
ADR facility upon the terms set forth in this Deposit Agreement (as hereinafter
defined), the execution and delivery of this Deposit Agreement on behalf of the
Company, and the actions of the Company and the transactions contemplated
herein.

 

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

 

ARTICLE I

 

DEFINITIONS

 

All capitalized
terms used, but not otherwise defined, herein shall have the meanings set forth
below, unless otherwise clearly indicated:

 

Section 1.1             “Affiliate” shall have the meaning
assigned to such term by the Commission (as hereinafter defined) under
Regulation C promulgated under the Securities Act (as hereinafter defined), or
under any successor regulation thereto.

 

  

 

Section 1.2             “ADS Record Date” shall have the
meaning given to such term in Section 4.9.

 

Section 1.3             “American Depositary Receipt(s)”, “ADR(s)” and  “Receipt(s)”
shall mean the certificate(s) issued by the Depositary to evidence the American
Depositary Shares issued under the terms of this Deposit Agreement, as such
ADRs may be amended from time to time in accordance with the provisions of this
Deposit Agreement.  An ADR may evidence
any number of ADSs and may, in the case of ADSs held through a central
depository such as DTC, be in the form of a “Balance Certificate”.

 

Section 1.4             “American Depositary Share(s)” and  “ADS(s)”
shall mean the rights and interests in the Deposited Securities granted to the
Holders and Beneficial Owners pursuant to the terms and conditions of this
Deposit Agreement and the ADRs issued hereunder to evidence such ADSs.  Each ADS shall represent one Share until
there shall occur a distribution upon Deposited Securities referred to in
Section 4.2 or a change in Deposited Securities referred to in Section 4.11 with
respect to which additional ADSs are not issued, and thereafter each ADS shall
represent the Deposited Securities determined in accordance with the terms of
such Sections.

 

Section 1.5             “Applicant” shall have the meaning
given to such term in Section 5.10.

 

Section 1.6             “Beneficial Owner” shall mean, as to
any ADS, any person or entity having a beneficial interest deriving from the
ownership of such ADS.  A Beneficial
Owner of ADSs may or may not be the Holder of the ADR(s) evidencing such ADSs.  A Beneficial Owner shall be able to exercise
any right or receive any benefit hereunder solely through the person who is the
Holder of the ADR(s) evidencing the ADSs owned by such Beneficial Owner.

 

Section 1.7             “Commission” shall mean the
Securities and Exchange Commission of the United States or any successor
governmental agency thereto in the United States.

 

Section 1.8             “Company” shall mean Prudential
Public Limited Company, a company incorporated and existing under the laws of
England and Wales, and its successors.

 

Section 1.9             “Custodian” shall mean, as of the
date hereof, Citibank, N.A. London, having its principal office at 25
Molesworth Street, Lewisham, London SE1 7EX, as the custodian for the purposes
of this Deposit Agreement, and any other entity that may be appointed by the
Depositary pursuant to the terms of Section 5.5 as successor, substitute or
additional custodian hereunder.  The term
“Custodian” shall mean any Custodian individually or all Custodians
collectively, as the context requires.

 

Section 1.10           “Deliver” and  “Delivery” shall mean, when used in
respect of ADSs, Deposited Securities and Shares, either (i) the physical
delivery of the certificate(s) representing such securities, or (ii) the
electronic delivery of such securities by means of book-entry transfer, if
available.

 

Section 1.11           “Deposit Agreement” shall mean this
Deposit Agreement and all exhibits hereto, as the same may from time to time be
amended and supplemented from time to time in accordance with the terms hereof.

 

2

  

 

Section 1.12           “Depositary” shall mean Citibank,
N.A., a national banking association organized under the laws of the United
States, in its capacity as depositary under the terms of this Deposit
Agreement, and any successor depositary hereunder.

 

Section 1.13           “Deposited Securities” shall mean
Shares at any time deposited under this Deposit Agreement and any and all other
securities, property and cash held by the Depositary or the Custodian in
respect thereof, subject, in the case of cash, to the provisions of Section
4.8.  The collateral delivered in
connection with Pre-Release Transactions described in Section 5.10 hereof shall
not constitute Deposited Securities.

 

Section 1.14           “Dollars” and  “$” shall refer to the lawful
currency of the United States.

 

Section 1.15           “DTC” shall mean The Depository
Trust Company, a national clearinghouse and the central book-entry settlement
system for securities traded in the United States and, as such, the custodian
for the securities of DTC Participants (as hereinafter defined) maintained in
DTC, and any successor thereto.

 

Section 1.16           “DTC Participant” shall mean any
financial institution (or any nominee of such institution) having one or more
participant accounts with DTC for receiving, holding and delivering the
securities and cash held in DTC.

 

Section 1.17           “Exchange Act” shall mean the United
States Securities Exchange Act of 1934, as amended from time to time.

 

Section 1.18           “Foreign Currency” shall mean any
currency other than Dollars.

 

Section 1.19           “Full Entitlement ADR(s)”, “Full Entitlement ADS(s)” and  “Full Entitlement Share(s)”
shall have the respective meanings set forth in Section 2.11.

 

Section 1.20           “Holder(s)” shall mean the person(s)
in whose name an ADR is registered on the books of the Depositary (or the
Registrar, if any) maintained for such purpose. 
A Holder may or may not be a Beneficial Owner.  If a Holder is not the Beneficial Owner of
the ADSs evidenced by the ADR registered in its name, such person shall be
deemed to have all requisite authority to act on behalf of the Beneficial
Owners of the ADSs evidenced by such ADR.

 

Section 1.21           “Partial Entitlement ADR(s)”, “Partial Entitlement ADS(s)” and  “Partial Entitlement
Share(s)” shall have the respective meanings set forth in
Section 2.11.

 

Section 1.22           “Pre-Release Transaction” shall have
the meaning set forth in Section 5.10.

 

Section 1.23           “Principal Office” shall mean, when
used with respect to the Depositary, the principal office of the Depositary at
which at any particular time its depositary receipts business shall be
administered, which, at the date of this Deposit Agreement, is located at 388
Greenwich Street, New York, New York 10013, U.S.A.

 

Section 1.24           “Registrar” shall mean the
Depositary or any bank or trust company having an office in the Borough of
Manhattan, The City of New York, which shall be appointed 

 

3

  

 

by the Depositary to register issuances, transfers and cancellations of
ADRs as herein provided, and shall include any co-registrar appointed by the
Depositary for such purposes.  Registrars
(other than the Depositary) may be removed and substitutes appointed by the
Depositary.  Each Registrar (other than
the Depositary) appointed pursuant to this Deposit Agreement shall be required
to give notice in writing to the Depositary accepting such appointment and
agreeing to be bound by the applicable terms of this Deposit Agreement.

 

Section 1.25           “Restricted Securities” shall mean
Shares, Deposited Securities or ADSs which (i) have been acquired directly
or indirectly from the Company or any of its Affiliates in a transaction or
chain of transactions not involving any public offering and are subject to
resale limitations under the Securities Act or the rules issued thereunder, or
(ii) are held by an officer or director (or persons performing similar
functions) or other Affiliate of the Company, or (iii) are subject to
other restrictions on sale or deposit under the laws of the United States,
England and Wales, or under a shareholder agreement or the Articles of
Association of the Company or under the regulations of an applicable securities
exchange unless, in each case, such Shares, Deposited Securities or ADSs are
being transferred or sold to persons other than an Affiliate of the Company in
a transaction (a) covered by an effective resale registration statement,
or (b) exempt from the registration requirements of the Securities Act (as
hereinafter defined), and the Shares, Deposited Securities or ADSs are not,
when held by such person(s), Restricted Securities.

 

Section 1.26           “Securities Act” shall mean the
United States Securities Act of 1933, as amended from time to time.

 

Section 1.27           “Share Registrar” shall mean the
Company or its Registrar, currently the Lloyds TSB Registrars or any other
institution organized under the laws of England and Wales appointed by the
Company to carry out the duties of registrar for the Shares, and any successor
thereto.

 

Section 1.28           “Shares” shall mean the Company’s
preference shares of a corresponding series in the Company with a nominal
amount of U.S.$0.01 shares, validly issued and outstanding and fully paid and
may, if the Depositary so agrees after consultation with the Company, include
evidence of the right to receive Shares; provided that in no event shall
Shares include evidence of the right to receive Shares with respect to which
the full purchase price has not been paid or Shares as to which preemptive
rights have theretofore not been validly waived or exercised; provided  further,
however, that, if there shall occur any change in nominal value,
split-up, consolidation, reclassification, exchange, conversion or any other
event described in Section 4.11 in respect of the Shares of the Company, the
term “Shares” shall thereafter, to the maximum extent permitted by law,
represent the successor securities resulting from such event.

 

Section 1.29          
“United States” and  “U.S.” shall have the meaning
assigned to it in Regulation S as promulgated by the Commission under the
Securities Act.

 

Section 1.30           “Pounds Sterling” and  “£” shall
refer to the lawful currency of England and Wales.

 

4

  

 

ARTICLE II

 

APPOINTMENT OF DEPOSITARY; FORM
OF RECEIPTS; 

DEPOSIT OF SHARES; EXECUTION AND DELIVERY, 

TRANSFER AND SURRENDER OF RECEIPTS

 

Section 2.1             Appointment of Depositary.  The Company hereby appoints the Depositary as
depositary for the Deposited Securities and hereby authorizes and directs the
Depositary to act in accordance with the terms and conditions set forth in this
Deposit Agreement and the applicable ADRs. 
Each Holder and each Beneficial Owner, upon acceptance of any ADSs (or
any interest therein) issued in accordance with the terms and conditions of
this Deposit Agreement shall be deemed for all purposes to (a) be a party
to and bound by the terms of this Deposit Agreement and the applicable ADR(s),
and (b) appoint the Depositary its attorney-in-fact, with full power to
delegate, to act on its behalf and to take any and all actions contemplated in
this Deposit Agreement and the applicable ADR(s), to adopt any and all
procedures necessary to comply with applicable law and to take such action as
the Depositary in its sole discretion may deem necessary or appropriate to
carry out the purposes of this Deposit Agreement and the applicable ADR(s), the
taking of such actions to be the conclusive determinant of the necessity and
appropriateness thereof.

 

Section 2.2             Form and Transferability of ADRs.

 

(a)           Form.  ADSs shall be evidenced by definitive ADRs
which shall be engraved, printed, lithographed or produced in such other manner
as may be agreed upon by the Company and the Depositary.  ADRs may be issued under the Deposit
Agreement in denominations of any whole number of ADSs.  The ADRs shall be substantially in the form
set forth in Exhibit A to the Deposit Agreement, with any appropriate
insertions, modifications and omissions, in each case as otherwise contemplated
in the Deposit Agreement or required by law. 
ADRs shall be (i) dated, (ii) signed by the manual or
facsimile signature of a duly authorized signatory of the Depositary,
(iii) countersigned by the manual or facsimile signature of a duly
authorized signatory of the Registrar, and (iv) registered in the books
maintained by the Registrar for the registration of issuances and transfers of
ADRs.  No ADR and no ADS evidenced
thereby shall be entitled to any benefits under the Deposit Agreement or be
valid or enforceable for any purpose against the Depositary or the Company,
unless such ADR shall have been so dated, signed, countersigned and
registered.  ADRs bearing the facsimile
signature of a duly-authorized signatory of the Depositary or the Registrar,
who at the time of signature was a duly-authorized signatory of the Depositary
or the Registrar, as the case may be, shall bind the Depositary,
notwithstanding the fact that such signatory has ceased to be so authorized
prior to the delivery of such ADR by the Depositary.  The ADRs shall bear a CUSIP number that is
different from any CUSIP number that was, is or may be assigned to any
depositary receipts previously or subsequently issued pursuant to any other
arrangement between the Depositary (or any other depositary) and the Company
and which are not ADRs issued hereunder.

 

(b)           Legends.  The ADRs may be endorsed with, or have incorporated
in the text thereof, such legends or recitals not inconsistent with the
provisions of the Deposit Agreement as (i) may be necessary to enable the
Depositary and the Company to perform their respective obligations hereunder,
(ii) may be required to comply with any applicable laws or regulations, or
with the rules and regulations of any securities exchange or market upon which
ADSs may be traded, listed or quoted, or to conform with any usage with respect
thereto, (iii) may be necessary 

 

5

  

 

to indicate any special
limitations or restrictions to which any particular ADRs or ADSs are subject by
reason of the date of issuance of the Deposited Securities or otherwise, or
(iv) may be required by any book-entry system in which the ADSs are
held.  Holders and Beneficial Owners
shall be deemed, for all purposes, to have notice of, and to be bound by, the
terms and conditions of the legends set forth, in the case of Holders, on the
ADR registered in the name of the applicable Holders or, in the case of
Beneficial Owners, on the ADR representing the ADSs owned by such Beneficial
Owners.

 

(c)           Title.  Subject to the limitations contained herein
and in the ADR, title to an ADR (and to each ADS evidenced thereby) shall be
transferable upon the same terms as a certificated security under the laws of
the State of New York, provided that such ADR has been properly endorsed
or is accompanied by proper instruments of transfer.  Notwithstanding any notice to the contrary,
the Depositary and the Company may deem and treat the Holder of an ADR (that
is, the person in whose name an ADR is registered on the books of the
Depositary) as the absolute owner thereof for all purposes.  Neither the Depositary nor the Company shall
have any obligation nor be subject to any liability under this Deposit
Agreement or any ADR to any holder of an ADR or any Beneficial Owner unless
such holder is the Holder of such ADR registered on the books of the Depositary
or, in the case of a Beneficial Owner, such Beneficial Owner, or the Beneficial
Owner’s representative, is the Holder registered on the books of the
Depositary.

 

(d)           Book-Entry Systems.  The Depositary shall make arrangements for
the acceptance of the ADSs into DTC.  A
single ADR in the form of a “Balance Certificate” will evidence all ADSs held
through DTC and will be registered in the name of the nominee for DTC
(currently “Cede & Co.”) and will provide that it represents the aggregate
number of ADSs from time to time indicated in the records of the Depositary as
being issued hereunder and that the aggregate number of ADSs represented
thereby may from time to time be increased or decreased by making adjustments
on such records of the Depositary and of DTC or its nominee as hereinafter provided.  As such, the nominee for DTC will be the only
“Holder” of the ADR evidencing all ADSs held through DTC.  Citibank, N.A. (or such other entity as is
appointed by DTC or its nominee) may hold the “Balance Certificate” as
custodian for DTC.  Each Beneficial Owner
of ADSs held through DTC must rely upon the procedures of DTC and the DTC
Participants to exercise or be entitled to any rights attributable to such
ADSs.  The DTC Participants shall for all
purposes be deemed to have all requisite power and authority to act on behalf
of the Beneficial Owners of the ADSs held in the DTC Participants’ respective
accounts in DTC and the Depositary shall for all purposes be authorized to rely
upon any instructions and information given to it by DTC Participants on behalf
of Beneficial Owners of ADSs.  So long as
ADSs are held through DTC or unless otherwise required by law, ownership of
beneficial interests in the ADR registered in the name of the nominee for DTC
will be shown on, and transfers of such ownership will be effected only
through, records maintained by (i) DTC or its nominee (with respect to the
interests of DTC Participants), or (ii) DTC Participants or their nominees
(with respect to the interests of clients of DTC Participants).

 

Section 2.3             Deposit with Custodian.  Subject to the terms and conditions of this
Deposit Agreement and applicable law, Shares or evidence of rights to receive
Shares (other than Restricted Securities) may be deposited by any person
(including the Depositary in its individual capacity but subject, however, in
the case of the Company or any Affiliate of the Company, to Section 5.7 hereof)
at any time, whether or not the transfer books of the Company or the Share 

 

6

  

 

Registrar, if any, are
closed, by Delivery of the Shares to the Custodian.  Every deposit of Shares shall be accompanied
by the following:  (A) (i) in the case of Shares represented by certificates issued in registered
form, appropriate instruments of transfer or endorsement, in a form
satisfactory to the Custodian, (ii) in the case of Shares
represented by certificates in bearer form. the requisite coupons
and talons pertaining thereto, and (iii) in the case
of Shares delivered by book-entry transfer, confirmation of such
book-entry transfer to the Custodian or that irrevocable instructions have been
given to cause such Shares to be so transferred, (B) such certifications
and payments (including, without limitation, the Depositary’s fees and related
charges) and evidence of such payments (including, without limitation, stamping
or otherwise marking such Shares by way of receipt) as may be required by the
Depositary or the Custodian in accordance with the provisions of this Deposit
Agreement and applicable law, (C) if the Depositary so requires, a written
order directing the Depositary to execute and deliver to, or upon the written
order of, the person(s) stated in such order the ADR(s) for the number of ADSs
representing the Shares so deposited, (D) evidence satisfactory to the
Depositary (which may be an opinion of counsel) that all necessary approvals
have been granted by, or there has been compliance with the rules and
regulations of, any applicable governmental agency in England and Wales, and
(E) if the Depositary so requires, (i) an agreement, assignment or
instrument satisfactory to the Depositary or the Custodian which provides for
the prompt transfer by any person in whose name the Shares are or have been
recorded to the Custodian of any distribution, or right to subscribe for
additional Shares or to receive other property in respect of any such deposited
Shares or, in lieu thereof, such indemnity or other agreement as shall be
satisfactory to the Depositary or the Custodian and (ii) if the Shares are
registered in the name of the person on whose behalf they are presented for
deposit, a proxy or proxies entitling the Custodian to exercise voting rights
in respect of the Shares for any and all purposes until the Shares so deposited
are registered in the name of the Depositary, the Custodian or any nominee.

 

Without limiting
any other provision of this Deposit Agreement, the Depositary shall instruct
the Custodian not to, and the Depositary shall not knowingly, accept for
deposit (a) any Restricted Securities nor (b) any fractional Shares
or fractional Deposited Securities nor (c) a number of Shares or Deposited
Securities which upon application of the ADS to Shares ratio would give rise to
fractional ADSs.  No Share shall be accepted
for deposit unless accompanied by evidence, if any is required by the
Depositary, that is reasonably satisfactory to the Depositary or the Custodian
that all conditions to such deposit have been satisfied by the person
depositing such Shares under the laws and regulations of England and Wales and
any necessary approval has been granted by any applicable governmental body in
England and Wales, if any.  The
Depositary may issue ADSs against evidence of rights to receive Shares from the
Company, any agent of the Company or any custodian, registrar, transfer agent,
clearing agency or other entity involved in ownership or transaction records in
respect of the Shares.  Such evidence of
rights shall consist of written blanket or specific guarantees of ownership of
Shares furnished by the Company or any such custodian, registrar, transfer
agent, clearing agency or other entity involved in ownership or transaction
records in respect of the Shares.

 

Section 2.4             Registration and Safekeeping of Deposited
Securities.  The
Depositary shall instruct the Custodian upon each Delivery of certificates
representing registered Shares being deposited hereunder with the Custodian (or
other Deposited Securities pursuant to Article IV hereof), together with the
other documents above specified, to present such certificate(s), together with
the appropriate instrument(s) of transfer or endorsement, duly stamped, to the 

 

7

  

 

Share Registrar for
transfer and registration of the Shares (as soon as transfer and registration
can be accomplished and at the expense of the person for whom the deposit is
made) in the name of the Depositary, the Custodian or a nominee of either.  Deposited Securities shall be held by the
Depositary or by a Custodian for the account and to the order of the Depositary
or a nominee in each case on behalf of the Holders and Beneficial Owners, at
such place or places as the Depositary or the Custodian shall determine.

 

Without limitation
of the foregoing, the Depositary shall not knowingly accept for deposit under
this Deposit Agreement any Shares or other Deposited Securities required to be
registered under the provisions of the Securities Act, unless a registration
statement is in effect as to such Shares or other Deposited Securities, or any
Shares or other Deposited Securities the deposit of which would violate any
provisions of the Articles of Association of the Company.

 

Section 2.5             Issuance of ADSs; Execution and Delivery of ADRs.  The Depositary has made arrangements with the
Custodian to confirm to the Depositary (i) that a deposit of Shares has
been made pursuant to Section 2.3 hereof, (ii) that such Deposited
Securities have been recorded in the name of the Depositary, the Custodian or a
nominee of either on the shareholders’ register maintained by or on behalf of
the Company by the Share Registrar if registered Shares have been deposited or,
if deposit is made by book-entry transfer, confirmation of such transfer in the
books of the DTC, (iii) that all required documents have been received,
and (iv) the person(s) to whom or upon whose order ADSs are deliverable in
respect thereof and the number of ADSs to be so delivered.  Such notification may be made by letter,
cable, telex, SWIFT message or, at the risk and expense of the person making
the deposit, by facsimile or other means of electronic transmission.  Upon receiving such notice from the
Custodian, the Depositary, subject to the terms and conditions of this Deposit
Agreement and applicable law, shall issue the ADSs representing the Shares so
deposited to or upon the order of the person(s) named in the notice delivered
to the Depositary and shall execute and deliver at its Principal Office
Receipt(s) registered in the name(s) requested by such person(s) and evidencing
the aggregate number of ADSs to which such person(s) are entitled, but only
upon payment to the Depositary of the charges of the Depositary for accepting a
deposit, issuing ADSs and executing and delivering such ADR(s) (as set forth in
Section 5.9 and Exhibit B hereto) and all taxes and governmental charges and
fees payable in connection with such deposit and the transfer of the Shares and
the issuance of the ADR(s).  The
Depositary shall only issue ADSs in whole numbers and deliver ADR(s) evidencing
whole numbers of ADSs.  Nothing herein shall
prohibit any Pre-Release Transaction upon the terms set forth in this Deposit
Agreement.

 

Section 2.6             Transfer, Combination and Split-up of ADRs.

 

(a)           Transfer.  The Registrar shall register the transfer of
ADRs (and of the ADSs represented thereby) on the books maintained for such
purpose and the Depositary shall (x) cancel such ADRs and execute new ADRs
evidencing the same aggregate number of ADSs as those evidenced by the ADRs
canceled by the Depositary, (y) cause the Registrar to countersign such new
ADRs and (z) Deliver such new  ADRs
to or upon the order of the person entitled thereto, if each of the following
conditions has been satisfied: 
(i) the ADRs have been duly Delivered by the Holder (or by a duly
authorized attorney of the Holder) to the Depositary at its Principal Office
for the purpose of effecting a transfer thereof, (ii) the surrendered ADRs
have been properly endorsed or are accompanied by proper instruments of
transfer (including 

 

8

  

 

signature guarantees in
accordance with standard securities industry practice), (iii) the
surrendered ADRs have been duly stamped (if required by the laws of the State
of New York or of the United States), and (iv) all applicable fees and
charges of, and expenses incurred by, the Depositary and all applicable taxes
and governmental charges (as are set forth in Section 5.9 and Exhibit B hereto)
have been paid, subject, however, in each case,
to the terms and conditions of the applicable ADRs, of the Deposit Agreement
and of applicable law, in each case as in effect at the time thereof.

 

(b)           Combination & Split Up.  The Registrar shall register the split-up or
combination of ADRs (and of the ADSs represented thereby) on the books
maintained for such purpose and the Depositary shall (x) cancel such ADRs
and execute new ADRs for the number of ADSs requested, but in the aggregate not
exceeding the number of ADSs evidenced by the ADRs cancelled by the Depositary,
(y) cause the Registrar to countersign such new ADRs and (z) Deliver
such new ADRs to or upon the order of the Holder thereof, if each of the
following conditions has been satisfied: 
(i) the ADRs have been duly Delivered by the Holder (or by a duly
authorized attorney of the Holder) to the Depositary at its Principal Office
for the purpose of effecting a split-up or combination thereof, and
(ii) all applicable fees and charges of, and expenses incurred by, the
Depositary and all applicable taxes and governmental charges (as are set forth
in Section 5.9 and Exhibit B hereto) have been paid, subject,
however, in each case, to the terms and conditions of the applicable
ADRs, of the Deposit Agreement and of applicable law, in each case as in effect
at the time thereof.

 

(c)           Co-Transfer Agents.  The Depositary may appoint one or more
co-transfer agents for the purpose of effecting transfers, combinations and
split-ups of ADRs at designated transfer offices on behalf of the
Depositary.  In carrying out its
functions, a co-transfer agent may require evidence of authority and compliance
with applicable laws and other requirements by Holders or persons entitled to
such ADRs and will be entitled to protection and indemnity to the same extent
as the Depositary.  Such co-transfer agents
may be removed and substitutes appointed by the Depositary.  Each co-transfer agent appointed under this
Section 2.6 (other than the Depositary) shall give notice in writing to the
Depositary accepting such appointment and agreeing to be bound by the applicable
terms of this Deposit Agreement.

 

Section 2.7             Surrender of ADSs and Withdrawal of Deposited
Securities.  The Holder of
ADSs shall be entitled to Delivery (at the Custodian’s designated office) of
the Deposited Securities at the time represented by the ADSs upon satisfaction
of each of the following conditions: 
(i) the Holder (or a duly-authorized attorney of the Holder) has
duly Delivered ADSs to the Depositary at its Principal Office (and if
applicable, the ADRs evidencing such ADSs) for the purpose of withdrawal of the
Deposited Securities represented thereby, (ii) if so required by the
Depositary, the ADRs Delivered to the Depositary for such purpose have been
properly endorsed in blank or are accompanied by proper instruments of transfer
in blank (including signature guarantees in accordance with standard securities
industry practice), (iii) if so required by the Depositary, the Holder of
the ADSs has executed and delivered to the Depositary a written order directing
the Depositary to cause the Deposited Securities being withdrawn to be
Delivered to or upon the written order of the person(s) designated in such
order, and (iv) all applicable fees and charges of, and expenses incurred
by, the Depositary and all applicable taxes and governmental charges (as are
set forth in Section 5.9 and Exhibit B hereof) have been paid, subject, however, in each case, to the terms and conditions
of the ADRs 

 

9

  

 

evidencing the
surrendered ADSs, of the Deposit Agreement, of the Company’s Articles of Association
and of any applicable laws and the rules of DTC, and to any provisions of or
governing the Deposited Securities , in each case as in effect at the time
thereof.

 

Upon satisfaction
of each of the conditions specified above, the Depositary (i) shall cancel
the ADSs Delivered to it (and, if applicable, the ADRs evidencing the ADSs so
Delivered), (ii) shall direct the Registrar to record the cancellation of
the ADSs so Delivered on the books maintained for such purpose, and
(iii) shall direct the Custodian to Deliver (without unreasonable delay)
at the Custodian’s designated office the Deposited Securities represented by
the ADSs so canceled together with any certificate or other document of title
for the Deposited Securities, or evidence of the electronic transfer thereof
(if available), as the case may be, to or upon the written order of the
person(s) designated in the order delivered to the Depositary for such purpose,
subject however, in each case, to the
terms and conditions of the Deposit Agreement, of the ADRs evidencing the ADSs
so cancelled, of the Articles of Association of the Company, of any applicable
laws and of the rules of the DTC, and to the terms and conditions of or
governing the Deposited Securities, in each case as in effect at the time
thereof.

 

The Depositary
shall not accept for surrender ADSs representing less than one Share.  In the case of the Delivery to it of ADSs
representing a number other than a whole number of Shares, the Depositary shall
cause ownership of the appropriate whole number of Shares to be Delivered in
accordance with the terms hereof, and shall, at the discretion of the
Depositary, either (i) return to the person surrendering such ADSs the
number of ADSs representing any remaining fractional Share, or (ii) sell or
cause to be sold the fractional Share represented by the ADSs so surrendered
and remit the proceeds of such sale (net of (a) applicable fees and
charges of, and expenses incurred by, the Depositary and (b) taxes
withheld) to the person surrendering the ADSs.

 

Notwithstanding
anything else contained in any ADR or the Deposit Agreement, the Depositary may
make delivery at the Principal Office of the Depositary of (i) any cash
dividends or cash distributions, or (ii) any proceeds from the sale of any
distributions of shares or rights, which are at the time held by the Depositary
in respect of the Deposited Securities represented by the ADSs surrendered for
cancellation and withdrawal.  At the
request, risk and expense of any Holder so surrendering ADSs, and for the
account of such Holder, the Depositary shall direct the Custodian to forward
(to the extent permitted by law) any cash or other property (other than
securities) held by the Custodian in respect of the Deposited Securities
represented by such ADSs to the Depositary for delivery at the Principal Office
of the Depositary.  Such direction shall
be given by letter or, at the request, risk and expense of such Holder, by
cable, telex or facsimile transmission.

 

Section 2.8             Limitations on Execution and Delivery, Transfer,
etc. of ADRs; Suspension of Delivery, Transfer, etc.  

 

(a)           Additional Requirements.  As a condition precedent to the execution and
delivery, registration of issuance, transfer, split-up, combination or
surrender, of any ADR, the delivery of any distribution thereon, or the
withdrawal of any Deposited Securities, the Depositary or the Custodian may
require (i) payment from the depositor of Shares or presenter of ADSs or
of an ADR of a sum sufficient to reimburse it for any tax or other governmental
charge 

 

10

  

 

and any stock transfer or
registration fee with respect thereto (including any such tax or charge and fee
with respect to Shares being deposited or withdrawn) and payment of any
applicable fees and charges of the Depositary as provided in Section 5.9 and
Exhibit B hereof, (ii) the production of proof satisfactory to it as to
the identity and genuineness of any signature or any other matter contemplated
by Section 3.1 hereof, and (iii) compliance with (A) any laws or
governmental regulations relating to the execution and delivery of ADRs or ADSs
or to the withdrawal of Deposited Securities and (B) such reasonable
regulations as the Depositary and the Company may establish consistent with the
provisions of the applicable ADR, this Deposit Agreement and applicable law.

 

(b)           Additional Limitations.  The issuance of ADSs against deposits of
Shares generally or against deposits of particular Shares may be suspended, or
the deposit of particular Shares may be refused, or the registration of
transfer of ADRs in particular instances may be refused, or the registration of
transfers of ADRs generally may be suspended, during any period when the
transfer books of the Company, the Depositary, a Registrar or the Share
Registrar are closed or if any such action is deemed necessary or advisable by
the Depositary or the Company, in good faith, at any time or from time to time
because of any requirement of law, any government or governmental body or
commission or any securities exchange on which the ADSs or Shares are listed,
or under any provision of this Deposit Agreement or the applicable ADR(s) or
under any provision of, or governing, the Deposited Securities, or because of a
meeting of shareholders of the Company or for any other reason, subject, in all
cases, to Section 7.8 hereof.

 

(c)           Regulatory Restrictions.  Notwithstanding any provision of this Deposit
Agreement or any ADR(s) to the contrary, Holders are entitled to surrender
outstanding ADSs to withdraw the Deposited Securities at any time subject only
to (i) temporary delays caused by closing the transfer books of the
Depositary or the Company or the deposit of Shares in connection with voting at
a shareholders’ meeting or the payment of dividends, (ii) the payment of
fees, taxes and similar charges, (iii) compliance with any U.S. or foreign
laws or governmental regulations relating to the ADRs or to the withdrawal of
the Deposited Securities, and (iv) other circumstances specifically contemplated
by Instruction I.A.(l) of the General Instructions to Form F-6 (as such General
Instructions may be amended from time to time).

 

Section 2.9             Lost ADRs, etc.  In case any ADR shall be mutilated,
destroyed, lost, or stolen, the Depositary shall execute and deliver a new ADR
of like tenor at the expense of the Holder (a) in the case
of a mutilated ADR, in exchange of and substitution for such
mutilated ADR upon cancellation thereof, or (b) in the case
of a destroyed, lost or stolen ADR, in lieu of and in substitution
for such destroyed, lost, or stolen ADR, after the Holder thereof (i) has
submitted to the Depositary a written request for such exchange and
substitution before the Depositary has notice that the ADR has been acquired by
a bona fide purchaser, (ii) has provided such security or indemnity
(including an indemnity bond) as may be required by the Depositary to save it
and any of its agents harmless, and (iii) has satisfied any other
reasonable requirements imposed by the Depositary, including, without limitation,
evidence satisfactory to the Depositary of such destruction, loss or theft of
such ADR, the authenticity thereof and the Holder’s ownership thereof.

 

Section 2.10           Cancellation and Destruction of Surrendered ADRs;
Maintenance of Records. 
All ADRs surrendered to the Depositary shall be canceled by the
Depositary.  

 

11

  

 

Canceled ADRs shall not
be entitled to any benefits under this Deposit Agreement or be valid or
enforceable against the Depositary for any purpose.  The Depositary is authorized to destroy ADRs
so canceled, provided the Depositary maintains a record of all destroyed
ADRs.  Any ADSs held in book-entry form (i.e., through accounts at DTC) shall be deemed canceled when
the Depositary causes the number of ADSs evidenced by the Balance Certificate
to be reduced by the number of ADSs surrendered (without the need to physically
destroy the Balance Certificate).

 

Section 2.11           Partial Entitlement ADSs.  In the event any Shares are deposited which entitle
the holders thereof to receive a per-share distribution or other entitlement in
an amount different from the Shares then on deposit (the Shares then on deposit
collectively, “Full Entitlement Shares” and the Shares with different
entitlement, “Partial Entitlement Shares”), the Depositary shall (i) cause
the Custodian to hold Partial Entitlement Shares separate and distinct from
Full Entitlement Shares, and (ii) subject to the terms of this Deposit
Agreement, issue ADSs and deliver ADRs representing Partial Entitlement Shares
which are separate and distinct from the ADSs and ADRs representing Full
Entitlement Shares, by means of separate CUSIP numbering and legending (if
necessary) (“Partial Entitlement ADSs/ADRs” and “Full Entitlement ADSs/ADRs”, respectively).  If and when Partial Entitlement Shares become
Full Entitlement Shares, the Depositary shall (a) give notice thereof to
Holders of Partial Entitlement ADSs and give Holders of Partial Entitlement ADRs
the opportunity to exchange such Partial Entitlement ADRs for Full Entitlement
ADRs, (b) cause the Custodian to transfer the Partial Entitlement Shares
into the account of the Full Entitlement Shares, and (c) take such actions
as are necessary to remove the distinctions between (i) the Partial Entitlement
ADRs and ADSs, on the one hand, and (ii) the Full Entitlement ADRs and
ADSs on the other.  Holders and
Beneficial Owners of Partial Entitlement ADSs shall only be entitled to the
entitlements of Partial Entitlement Shares. 
Holders and Beneficial Owners of Full Entitlement ADSs shall be entitled
only to the entitlements of Full Entitlement Shares.  All provisions and conditions of this Deposit
Agreement shall apply to Partial Entitlement ADRs and ADSs to the same extent
as Full Entitlement ADRs and ADSs, except as contemplated by this Section
2.11.  The Depositary is authorized to
take any and all other actions as may be necessary (including, without
limitation, making the necessary notations on ADRs) to give effect to the terms
of this Section 2.11.  The Company agrees
to give timely written notice to the Depositary if any Shares issued or to be
issued are Partial Entitlement Shares and shall assist the Depositary with the
establishment of procedures enabling the identification of Partial Entitlement
Shares upon Delivery to the Custodian.

 

ARTICLE III

 

CERTAIN OBLIGATIONS OF HOLDERS 

AND BENEFICIAL OWNERS OF ADSs

 

Section 3.1             Proofs, Certificates and Other Information.  Any person presenting Shares for deposit, any
Holder and any Beneficial Owner may be required, and every Holder and
Beneficial Owner agrees, from time to time to provide to the Depositary and the
Custodian such proof of citizenship or residence, taxpayer status, payment of
all applicable taxes or other governmental charges, exchange control approval,
legal or beneficial ownership of ADSs and Deposited Securities, compliance with
applicable laws, the terms of this Deposit Agreement or 

 

12

  

 

the ADR(s) evidencing the
ADSs and the provisions of, or governing, the Deposited Securities, to execute
such certifications and to make such representations and warranties, and to
provide such other information and documentation (or, in the case of Shares in
registered form presented for deposit, such information relating to the
registration on the books of the Company or of the Share Registrar) as the
Depositary or the Custodian may deem necessary or proper or as the Company may
reasonably require by written request to the Depositary consistent with its obligations
under this Deposit Agreement and the applicable ADR(s).  The Depositary and the Registrar, as
applicable, may withhold the execution or delivery or registration of transfer
of any ADR or the distribution or sale of any dividend or distribution of
rights or of the proceeds thereof or, to the extent not limited by the terms of
Section 7.8 hereof, the delivery of any Deposited Securities until such proof
or other information is filed or such certifications are executed, or such
representations are made, or such other documentation or information provided,
in each case to the Depositary’s, the Registrar’s and the Company’s
satisfaction.  The Depositary shall
provide the Company, in a timely manner, with copies or originals if necessary
and appropriate of (i) any such proofs of citizenship or residence,
taxpayer status, or exchange control approval which it receives from Holders
and Beneficial Owners, and (ii) any other information or documents which
the Company may reasonably request and which the Depositary shall request and
receive from any Holder or Beneficial Owner or any person presenting Shares for
deposit or ADSs for cancellation, transfer or withdrawal.  Nothing herein shall obligate the Depositary
to (i) obtain any information for the Company if not provided by the
Holders or Beneficial Owners, or (ii) verify or vouch for the accuracy of
the information so provided by the Holders or Beneficial Owners.

 

Section 3.2             Liability for Taxes and Other Charges.  Any tax or other governmental charge payable
by the Custodian or by the Depositary with respect to any ADR or any Deposited
Securities or ADSs shall be payable by the Holders and Beneficial Owners to the
Depositary.  The Company, the Custodian
and/or the Depositary may withhold or deduct from any distributions made in
respect of Deposited Securities and may sell for the account of a Holder and/or
Beneficial Owner any or all of the Deposited Securities and apply such
distributions and sale proceeds in payment of such taxes (including applicable
interest and penalties) or charges, the Holder and the Beneficial Owner
remaining liable for any deficiency.  The
Custodian may refuse the deposit of Shares and the Depositary may refuse to
issue ADSs, to deliver ADRs, register the transfer, split-up or combination of
ADRs and (subject to Section 7.8) the withdrawal of Deposited Securities until
payment in full of such tax, charge, penalty or interest is received.  Every Holder and Beneficial Owner agrees to
indemnify the Depositary, the Company, the Custodian, and any of their agents,
officers, employees and Affiliates for, and to hold each of them harmless from,
any claims with respect to taxes (including applicable interest and penalties
thereon) arising from any tax benefit obtained for such Holder and/or Beneficial
Owner.

 

Section 3.3             Representations and Warranties on Deposit of
Shares.  Each person
depositing Shares under the Deposit Agreement shall be deemed thereby to
represent and warrant that (i) such Shares and the certificates therefor
are duly authorized, validly issued, fully paid, non-assessable and legally
obtained by such person, (ii) all preemptive (and similar) rights, if any,
with respect to such Shares have been validly waived or exercised,
(iii) the person making such deposit is duly authorized so to do,
(iv) the Shares presented for deposit are free and clear of any lien,
encumbrance, security interest, charge, mortgage or adverse claim, and
(v) the Shares presented for deposit are not, and the ADSs issuable upon
such deposit will not be, 

 

13

  

 

Restricted Securities,
and (vi) the Shares presented for deposit have not been stripped of any
rights or entitlements.  Such
representations and warranties shall survive the deposit and withdrawal of Shares,
the issuance and cancellation of ADSs in respect thereof and the transfer of
such ADSs.  If any such representations
or warranties are false in any way, the Company and the Depositary shall be
authorized, at the cost and expense of the person depositing Shares, to take
any and all actions necessary to correct the consequences thereof.

 

Section 3.4             Compliance with Information Requests.  Notwithstanding any other provision of this
Deposit Agreement or any ADR(s), each Holder and Beneficial Owner agrees to
comply with requests from the Company pursuant to applicable law, the rules and
requirements of the New York Stock Exchange, and any other stock exchange on
which the Shares or ADSs are, or will be, registered, traded or listed or the
Articles of Association of the Company, which are made to provide information, inter alia, as to the capacity in which such Holder or
Beneficial Owner owns ADSs (and Shares as the case may be) and regarding the
identity of any other person(s) interested in such ADSs and the nature of such
interest and various other matters, whether or not they are Holders and/or
Beneficial Owners at the time of such request. 
The Depositary agrees to use its reasonable efforts to forward, upon the
request of the Company and at the Company’s expense, any such request from the
Company to the Holders and to forward to the Company any such responses to such
requests received by the Depositary.

 

Section 3.5             Ownership Restrictions.  Notwithstanding any other provision in this
Deposit Agreement or any ADR, the Company may restrict transfers of the Shares
where such transfer might result in ownership of Shares exceeding limits
imposed by applicable law or the Articles of Association of the Company.  The Company may also restrict, in such manner
as it deems appropriate, transfers of the ADSs where such transfer may result
in the total number of Shares represented by the ADSs owned by a single Holder
or Beneficial Owner to exceed any such limits. 
The Company may, in its sole discretion but subject to applicable law,
instruct the Depositary to take action with respect to the ownership interest
of any Holder or Beneficial Owner in excess of the limits set forth in the
preceding sentence, including, but not limited to, the imposition of
restrictions on the transfer of ADSs, the removal or limitation of voting
rights or mandatory sale or disposition on behalf of a Holder or Beneficial
Owner of the Shares represented by the ADSs held by such Holder or Beneficial
Owner in excess of such limitations, if and to the extent such disposition is
permitted by applicable law and the Articles of Association of the Company.

 

ARTICLE IV

 

THE DEPOSITED SECURITIES

 

Section 4.1             Cash Distributions.  Whenever the Depositary receives confirmation
from the Custodian of the receipt of any cash dividend or other cash
distribution on any Deposited Securities, or receives proceeds from the sale of
any Deposited Securities or any other entitlements held in respect of Deposited
Securities under the terms hereof, the Depositary will (i) if at the time
of receipt thereof any amounts received in a Foreign Currency can in the
judgment of the Depositary (pursuant to Section 4.8) be converted on a
practicable basis into Dollars transferable to the United States, promptly
convert or cause to be converted such cash dividend, distribution or proceeds
into Dollars (on the terms described in Section 4.8), (ii) if 

 

14

  

 

applicable, establish the
ADS Record Date upon the terms described in Section 4.9, and
(iii) distribute promptly the amount thus received (net of (a) the
applicable fees and charges of, and expenses incurred by, the Depositary and
(b) taxes withheld) to the Holders entitled thereto as of the ADS Record
Date in proportion to the number of ADSs held as of the ADS Record Date.  The Depositary shall distribute only such
amount, however, as can be distributed without attributing to any Holder a
fraction of one cent, and any balance not so distributed shall be held by the
Depositary (without liability for interest thereon) and shall be added to and
become part of the next sum received by the Depositary for distribution to
Holders of ADSs outstanding at the time of the next distribution.  If the Company, the Custodian or the
Depositary is required to withhold and does withhold from any cash dividend or
other cash distribution in respect of any Deposited Securities an amount on
account of taxes, duties or other governmental charges, the amount distributed
to Holders on the ADSs representing such Deposited Securities shall be reduced
accordingly.  Such withheld amounts shall
be forwarded by the Company, the Custodian or the Depositary to the relevant
governmental authority.  Evidence of
payment thereof by the Company shall be forwarded by the Company to the
Depositary upon request.

 

Section 4.2             Distribution in Shares.  If any distribution upon any Deposited
Securities consists of a dividend in, or free distribution of, Shares, the
Company shall cause such Shares to be deposited with the Custodian and registered,
as the case may be, in the name of the Depositary, the Custodian or their
respective nominees.  Upon receipt of
confirmation of such deposit from the Custodian, the Depositary shall establish
the ADS Record Date upon the terms described in Section 4.9 and either
(i) the Depositary shall, subject to Section 5.9 hereof, distribute to the
Holders as of the ADS Record Date in proportion to the number of ADSs held as
of the ADS Record Date, additional ADSs, which represent in the aggregate the number
of Shares received as such dividend, or free distribution, subject to the other
terms of this Deposit Agreement (including, without limitation, (a) the
applicable fees and charges of, and expenses incurred by, the Depositary and
(b) taxes), or (ii) if additional ADSs are not so distributed, each
ADS issued and outstanding after the ADS Record Date shall, to the extent
permissible by law, thenceforth also represent rights and interests in the
additional integral number of Shares distributed upon the Deposited Securities
represented thereby (net of (a) the applicable fees and charges of, and
expenses incurred by, the Depositary and (b) taxes).  In lieu of delivering fractional ADSs, the
Depositary shall sell the number of Shares or ADSs, as the case may be, represented
by the aggregate of such fractions and distribute the net proceeds upon the
terms described in Section 4.1.  In the
event that the Depositary determines that any distribution in property
(including Shares) is subject to any tax or other governmental charges which
the Depositary is obligated to withhold, or, if the Company in the fulfillment
of its obligation under Section 5.7 hereof, has furnished an opinion of U.S.
counsel determining that Shares must be registered under the Securities Act or
other laws in order to be distributed to Holders (and no such registration
statement has been declared effective), the Depositary may dispose of all or a
portion of such property (including Shares and rights to subscribe therefor) in
such amounts and in such manner, including by public or private sale, as the
Depositary deems necessary and practicable, and the Depositary shall distribute
the net proceeds of any such sale (after deduction of (a) taxes and
(b) fees and charges of, and expenses incurred by, the Depositary) to
Holders entitled thereto upon the terms described in Section 4.1.  The Depositary shall hold and/or distribute
any unsold balance of such property in accordance with the provisions of this
Deposit Agreement.

 

15

  

 

Section 4.3             Elective Distributions in Cash or Shares.  Whenever the Company intends to make a
distribution payable at the election of the holders of Shares in cash or in
additional Shares, the Company shall give notice thereof to the Depositary at
least sixty (60) days prior to the proposed distribution stating whether or not
it wishes such elective distribution to be made available to Holders of
ADSs.  Upon timely receipt of notice
indicating that the Company wishes such elective distribution to be made
available to Holders of ADSs, the Depositary shall consult with the Company to
determine, and the Company shall assist the Depositary in its determination,
whether it is lawful and reasonably practicable to make such elective
distribution available to the Holders of ADSs. 
The Depositary shall make such elective distribution available to
Holders only if (i) the Company shall have timely requested that the
elective distribution be made available to Holders, (ii) the Depositary
shall have determined that such distribution is reasonably practicable and
(iii) the Depositary shall have received satisfactory documentation within
the terms of Section 5.7.  If the above
conditions are not satisfied, the Depositary shall, to the extent permitted by law,
distribute to the Holders, on the basis of the same determination as is made in
England and Wales in respect of the Shares for which no election is made,
either (X) cash upon the terms described in Section 4.1 or
(Y) additional ADSs representing such additional Shares upon the terms
described in Section 4.2.  If the above
conditions are satisfied, the Depositary shall establish an ADS Record Date (on
the terms described in Section 4.9) and establish procedures to enable Holders
to elect the receipt of the proposed distribution in cash or in additional
ADSs.  The Company shall assist the
Depositary in establishing such procedures to the extent necessary.  If a Holder elects to receive the proposed
distribution (X) in cash, the distribution shall be made upon the terms
described in Section 4.1, or (Y) in ADSs, the distribution shall be made
upon the terms described in Section 4.2. 
Nothing herein shall obligate the Depositary to make available to
Holders a method to receive the elective distribution in Shares (rather than
ADSs).  There can be no assurance that
Holders generally, or any Holder in particular, will be given the opportunity
to receive elective distributions on the same terms and conditions as the
holders of Shares.

 

Section 4.4             Distribution of Rights to Purchase Additional ADSs.

 

(a)           Distribution to ADS
Holders.  Whenever the
Company intends to distribute to the holders of the Deposited Securities rights
to subscribe for additional Shares, the Company shall give notice thereof to
the Depositary at least sixty (60) days prior to the proposed distribution
stating whether or not it wishes such rights to be made available to Holders of
ADSs.  Upon timely receipt of a notice
indicating that the Company wishes such rights to be made available to Holders
of ADSs, the Depositary shall consult with the Company to determine, and the
Company shall assist the Depositary in its determination, whether it is lawful
and reasonably practicable to make such rights available to the Holders.  The Depositary shall make such rights
available to Holders only if (i) the Company shall have timely requested
that such rights be made available to Holders, (ii) the Depositary shall
have received satisfactory documentation within the terms of Section 5.7, and
(iii) the Depositary shall have determined that such distribution of
rights is reasonably practicable.  In the
event any of the conditions set forth above are not satisfied or if the Company
requests that the rights not be made available to Holders of ADSs, the
Depositary shall proceed with the sale of the rights as contemplated in Section
4.4(b) below.  In the event all
conditions set forth above are satisfied, the Depositary shall establish an ADS
Record Date (upon the terms described in Section 4.9) and establish procedures
to (x) distribute rights to purchase additional ADSs (by means of warrants
or otherwise), (y) to enable the 

 

16

  

 

Holders to exercise such
rights (upon payment of the subscription price and of the applicable
(a) fees and charges of, and expenses incurred by, the Depositary and
(b) taxes), and (z) to deliver ADSs upon the valid exercise of such
rights.  The Company shall assist the
Depositary to the extent necessary in establishing such procedures.  Nothing herein shall obligate the Depositary
to make available to the Holders a method to exercise rights to subscribe for
Shares (rather than ADSs).

 

(b)           Sale of Rights.  If (i) the Company does not timely
request the Depositary to make the rights available to Holders or requests that
the rights not be made available to Holders, (ii) the Depositary fails to
receive satisfactory documentation within the terms of Section 5.7 or
determines it is not reasonably practicable to make the rights available to
Holders, or (iii) any rights made available are not exercised and appear
to be about to lapse, the Depositary shall determine whether it is lawful and
reasonably practicable to sell such rights, in a riskless principal capacity,
at such place and upon such terms (including public or private sale) as it may
deem practicable.  The Company shall
assist the Depositary to the extent necessary to determine such legality and
practicability.  The Depositary shall,
upon such sale, convert and distribute proceeds of such sale (net of applicable
(a) fees and charges of, and expenses incurred by, the Depositary and
(b) taxes) upon the terms set forth in Section 4.1.

 

(c)           Lapse of Rights.  If the Depositary is unable to make any
rights available to Holders upon the terms described in Section 4.4(a) or to
arrange for the sale of the rights upon the terms described in Section 4.4(b),
the Depositary shall allow such rights to lapse.

 

The Depositary
shall not be responsible for (i) any failure to determine that it may be
lawful or practicable to make such rights available to Holders in general or
any Holders in particular, (ii) any foreign exchange exposure or loss
incurred in connection with such sale, or exercise, or (iii) the content
of any materials forwarded to the Holders on behalf of the Company in
connection with the rights distribution.

 

Notwithstanding
anything to the contrary in this Section 4.4, if registration (under the
Securities Act or any other applicable law) of the rights or the securities to
which any rights relate may be required in order for the Company to offer such
rights or such securities to Holders and to sell the securities represented by
such rights, the Depositary will not distribute such rights to the Holders
(i) unless and until a registration statement under the Securities Act (or
other applicable law) covering such offering is in effect or (ii) unless
the Company furnishes the Depositary opinion(s) of counsel for the Company in
the United States and counsel to the Company in any other applicable country in
which rights would be distributed, in each case satisfactory to the Depositary,
to the effect that the offering and sale of such securities to Holders and
Beneficial Owners are exempt from, or do not require registration under, the
provisions of the Securities Act or any other applicable laws.

 

In the event that
the Company, the Depositary or the Custodian shall be required to withhold and
does withhold from any distribution of property (including rights) an amount on
account of taxes or other governmental charges, the amount distributed to the
Holders of ADSs representing such Deposited Securities shall be reduced
accordingly.  In the event that the
Depositary determines that any distribution in property (including Shares and
rights to subscribe therefor) is subject to any tax or other governmental
charges which the Depositary is obligated to 

 

17

  

 

withhold, the Depositary
may dispose of all or a portion of such property (including Shares and rights
to subscribe therefor) in such amounts and in such manner, including by public
or private sale, as the Depositary deems necessary and practicable to pay any
such taxes or charges.

 

There can be no
assurance that Holders generally, or any Holder in particular, will be given
the opportunity to receive or exercise rights on the same terms and conditions
as the holders of Shares or be able to exercise such rights.  Nothing herein shall obligate the Company to
file any registration statement in respect of any rights or Shares or other
securities to be acquired upon the exercise of such rights.

 

Section 4.5             Distributions Other Than Cash, Shares or Rights to
Purchase Shares.

 

(a)           Whenever the Company intends to
distribute to the holders of Deposited Securities property other than cash,
Shares or rights to purchase additional Shares, the Company shall give timely
notice thereof to the Depositary and shall indicate whether or not it wishes
such distribution to be made to Holders of ADSs.  Upon receipt of a notice indicating that the
Company wishes such distribution be made to Holders of ADSs, the Depositary
shall consult with the Company, and the Company shall assist the Depositary, to
determine whether such distribution to Holders is lawful and reasonably
practicable.  The Depositary shall not
make such distribution unless (i) the Company shall have requested the
Depositary to make such distribution to Holders, (ii) the Depositary shall
have received satisfactory documentation within the terms of Section 5.7, and
(iii) the Depositary shall have determined that such distribution is
reasonably practicable.

 

(b)           Upon receipt of satisfactory
documentation and the request of the Company to distribute property to Holders
of ADSs and after making the requisite determinations set forth in (a) above,
the Depositary shall distribute the property so received to the Holders of
record, as of the ADS Record Date, in proportion to the number of ADSs held by
them respectively and in such manner as the Depositary may deem practicable for
accomplishing such distribution (i) upon receipt of payment or net of the
applicable fees and charges of, and expenses incurred by, the Depositary, and
(ii) net of any taxes withheld.  The
Depositary may dispose of all or a portion of the property so distributed and
deposited, in such amounts and in such manner (including public or private
sale) as the Depositary may deem practicable or necessary to satisfy any taxes
(including applicable interest and penalties) or other governmental charges
applicable to the distribution.

 

(c)           If (i) the Company does not
request the Depositary to make such distribution to Holders or requests not to
make such distribution to Holders, (ii) the Depositary does not receive
satisfactory documentation within the terms of Section 5.7, or (iii) the
Depositary determines that all or a portion of such distribution is not
reasonably practicable, the Depositary shall sell or cause such property to be
sold in a public or private sale, at such place or places and upon such terms
as it may deem practicable and shall (i) cause the proceeds of such sale,
if any, to be converted into Dollars and (ii) distribute the proceeds of
such conversion received by the Depositary (net of applicable (a) fees and
charges of, and expenses incurred by, the Depositary and (b) taxes) to the
Holders as of the ADS Record Date upon the terms of Section 4.1.  If the Depositary is unable to sell such
property, the Depositary may dispose of such property for the account of the
Holders in any way it deems reasonably practicable under the circumstances.

 

18

  

 

Section 4.6             Distributions with Respect to Deposited Securities
in Bearer Form.  Subject
to the terms of this Article IV, distributions in respect of Deposited
Securities that are held by the Depositary in bearer form shall be made to the
Depositary for the account of the respective Holders of ADRs with respect to
which any such distribution is made upon due presentation by the Depositary or
the Custodian to the Company of any relevant coupons, talons, or
certificates.  The Company shall promptly
notify the Depositary of such distributions. 
The Depositary or the Custodian shall promptly present such coupons,
talons or certificates, as the case may be, in connection with any such distribution.

 

Section 4.7             Redemption.  If the Company intends to exercise any right
of redemption in respect of any of the Deposited Securities, the Company shall
give notice thereof to the Depositary at least sixty (60) days prior to the
intended date of redemption which notice shall set forth the particulars of the
proposed redemption.  Upon timely receipt
of (i) such notice and (ii) satisfactory documentation given by the
Company to the Depositary within the terms of Section 5.7, and only if the
Depositary shall have determined that such proposed redemption is practicable,
the Depositary shall provide to each Holder a notice setting forth the intended
exercise by the Company of the redemption rights and any other particulars set
forth in the Company’s notice to the Depositary.  The Depositary shall instruct the Custodian
to present to the Company the Deposited Securities in respect of which
redemption rights are being exercised against payment of the applicable redemption
price.  Upon receipt of confirmation from
the Custodian that the redemption has taken place and that funds representing
the redemption price have been received, the Depositary shall convert,
transfer, and distribute the proceeds (net of applicable (a) fees and
charges of, and the expenses incurred by, the Depositary, and (b) taxes),
retire ADSs and cancel ADRs upon delivery of such ADSs by Holders thereof and
the terms set forth in Sections 4.1 and 6.2 hereof.  If less than all outstanding Deposited
Securities are redeemed, the ADSs to be retired will be selected by lot or on a
pro rata basis, as may be determined by the Depositary.  The redemption price per ADS shall be the
dollar equivalent of the per share amount received by the Depositary (adjusted
to reflect the ADS(s)-to-Share(s) ratio) upon the redemption of the Deposited
Securities represented by ADSs (subject to the terms of Section 4.8 hereof and
the applicable fees and charges of, and expenses incurred by, the Depositary,
and taxes) multiplied by the number of Deposited Securities represented by each
ADS redeemed.

 

Section 4.8             Conversion of Foreign Currency.  Whenever the Depositary or the Custodian
shall receive Foreign Currency, by way of dividends or other distributions or
the net proceeds from the sale of securities, property or rights, which in the
judgment of the Depositary can at such time be converted on a practicable
basis, by sale or in any other manner that it may determine in accordance with
applicable law, into Dollars transferable to the United States and distributable
to the Holders entitled thereto, the Depositary shall convert or cause to be
converted, by sale or in any other manner that it may determine, such Foreign
Currency into Dollars, and shall distribute such Dollars (net of any applicable
fees, any reasonable and customary expenses incurred in such conversion and any
expenses incurred on behalf of the Holders in complying with currency exchange
control or other governmental requirements) in accordance with the terms of the
applicable sections of this Deposit Agreement. 
If the Depositary shall have distributed warrants or other instruments
that entitle the holders thereof to such Dollars, the Depositary shall
distribute such Dollars to the holders of such warrants and/or instruments upon
surrender thereof for cancellation, in either case without liability for
interest 

 

19

  

 

thereon.  Such distribution may be made upon an
averaged or other practicable basis without regard to any distinctions among
Holders on account of any application of exchange restrictions or otherwise.

 

If such conversion
or distribution generally or with regard to a particular Holder can be effected
only with the approval or license of any government or agency thereof, the
Depositary shall have authority to file such application for approval or
license, if any, as it may deem desirable. 
In no event, however, shall the Depositary be obligated to make such a
filing.

 

If at any time the
Depositary shall determine that in its judgment the conversion of any Foreign
Currency and the transfer and distribution of proceeds of such conversion
received by the Depositary is not practicable or lawful, or if any approval or
license of any governmental authority or agency thereof that is required for
such conversion, transfer and distribution is denied or, in the opinion of the
Depositary, not obtainable at a reasonable cost or within a reasonable period,
the Depositary may, in its discretion, (i) make such conversion and
distribution in Dollars to the Holders for whom such conversion, transfer and
distribution is lawful and practicable, (ii) distribute the Foreign
Currency (or an appropriate document evidencing the right to receive such
Foreign Currency) to Holders for whom this is lawful and practicable or (iii) hold
(or cause the Custodian to hold) such Foreign Currency (without liability for
interest thereon) for the respective accounts of the Holders entitled to
receive the same.

 

Section 4.9             Fixing of ADS Record Date.  Whenever the Depositary shall receive notice
of the fixing of a record date by the Company for the determination of holders
of Deposited Securities entitled to receive any distribution (whether in cash,
Shares, rights, or other distribution), or whenever for any reason the
Depositary causes a change in the number of Shares that are represented by each
ADS, or whenever the Depositary shall receive notice of any meeting of, or
solicitation of consents or proxies of, holders of Shares or other Deposited
Securities, or whenever the Depositary shall find it necessary or convenient in
connection with the giving of any notice, solicitation of any consent or any
other matter, the Depositary shall fix a record date (the “ADS Record Date”)
for the determination of the Holders of ADRs who shall be entitled to receive
such distribution, to give instructions for the exercise of voting rights at
any such meeting, to give or withhold such consent, to receive such notice or
solicitation or to otherwise take action, or to exercise the rights of Holders
with respect to such changed number of Shares represented by each ADS.  The Depositary shall make reasonable efforts
to establish the ADS Record Date as closely as possible to the applicable
record date for the Deposited Securities (if any) set by the Company in England
and Wales.  Subject to applicable law and
the provisions of Section 4.1 through 4.8 and to the other terms and conditions
of this Deposit Agreement, only the Holders of ADRs at the close of business in
New York on such ADS Record Date shall be entitled to receive such
distribution, to give such voting instructions, to receive such notice or
solicitation, or otherwise take action.

 

Section 4.10           Voting of Deposited Securities.  As soon as practicable after receipt of
notice of any meeting at which the holders of Deposited Securities are entitled
to vote, or of solicitation of consents or proxies from holders of Deposited
Securities, the Depositary shall fix the ADS Record Date in respect of such
meeting or solicitation of consent or proxy in accordance with Section
4.9.  The Depositary shall, if requested
by the Company in writing in a timely manner (the Depositary having no
obligation to take any further action if the request shall 

 

20

  

 

not have been received by
the Depositary at least thirty (30) days prior to the date of such vote or
meeting), at the Company’s expense and provided no U.S. legal prohibitions
exist, distribute to Holders as of the ADS Record Date:  (a) such notice of meeting or
solicitation of consent or proxy, (b) a statement that the Holders at the
close of business on the ADS Record Date will be entitled, subject to any
applicable law, the provisions of this Deposit Agreement, the Articles of
Association of the Company and the provisions of or governing the Deposited
Securities (which provisions, if any, shall be summarized in pertinent part by
the Company), to instruct the Depositary as to the exercise of the voting
rights, if any, pertaining to the Deposited Securities represented by such
Holder’s ADSs, and (c) a brief statement as to the manner in which such
voting instructions may be given.  Voting
instructions may be given only in respect of a number of ADSs representing an
integral number of Deposited Securities. 
Upon the timely receipt from a Holder of ADSs as of the ADS Record Date
of voting instructions in the manner specified by the Depositary, the
Depositary shall endeavor, insofar as practicable and permitted under
applicable law, the provisions of this Deposit Agreement, Articles of
Association of the Company and the provisions of the Deposited Securities, to
vote, or cause the Custodian to vote, the Deposited Securities (in person or by
proxy) represented by such Holder’s ADSs in accordance with such voting
instructions.

 

Neither the
Depositary nor the Custodian shall under any circumstances exercise any
discretion as to voting and neither the Depositary nor the Custodian shall
vote, attempt to exercise the right to vote, or in any way make use of for
purposes of establishing a quorum or otherwise, the Deposited Securities
represented by ADSs, except pursuant to and in accordance with the voting
instructions timely received from Holders or as otherwise contemplated
herein.  If the Depositary timely
receives voting instructions from a Holder which fail to specify the manner in
which the Depositary is to vote the Deposited Securities represented by such
Holder’s ADSs, the Depositary will deem such Holder (unless otherwise specified
in the notice distributed to Holders) to have instructed the Depositary to vote
in favor of the items set forth in such voting instructions.  Deposited Securities represented by ADSs for
which no timely voting instructions are received by the Depositary from the
Holder shall not be voted. 
Notwithstanding anything else contained herein, the Depositary shall, if
so requested in writing by the Company, represent all Deposited Securities
(whether or not voting instructions have been received in respect of such
Deposited Securities from Holders as of the ADS Record Date) for the sole
purpose of establishing quorum at a meeting of shareholders.

 

Notwithstanding
anything else contained in this Deposit Agreement or any Receipt, the
Depositary shall not have any obligation to take any action with respect to any
meeting, or solicitation of consents or proxies, of holders of Deposited
Securities if the taking of such action would violate U.S. laws.  The Company agrees to take any and all
actions reasonably necessary to enable Holders and Beneficial Owners to
exercise the voting rights accruing to the Deposited Securities and to deliver
to the Depositary an opinion of U.S. counsel addressing any actions requested
to be taken if so requested by the Depositary.

 

There can be no
assurance that Holders generally or any Holder in particular will receive the
notice described above with sufficient time to enable the Holder to return
voting instructions to the Depositary in a timely manner.

 

21

  

 

Section 4.11           Changes Affecting Deposited Securities.  Upon any change in nominal or par value,
split-up, cancellation, consolidation or any other reclassification of
Deposited Securities, or upon any recapitalization, reorganization, merger or
consolidation or sale of assets affecting the Company or to which it is a
party, any securities which shall be received by the Depositary or the
Custodian in exchange for, or in conversion of or replacement of or otherwise
in respect of, such Deposited Securities shall, to the extent permitted by law,
be treated as new Deposited Securities under this Deposit Agreement, and the
ADRs shall, subject to the provisions of this Deposit Agreement and applicable
law, evidence ADSs representing the right to receive such additional
securities.  The Depositary may, with the
Company’s approval, and shall, if the Company shall so request, subject to the
terms of the Deposit Agreement and receipt of an opinion of counsel to the
Company satisfactory to the Depositary that such distributions are not in
violation of any applicable laws or regulations, execute and deliver additional
ADRs as in the case of a stock dividend on the Shares, or call for the
surrender of outstanding ADRs to be exchanged for new ADRs, in either case, as
well as in the event of newly deposited Shares, with necessary modifications to
the form of ADR contained in Exhibit A hereto, specifically describing such new
Deposited Securities or corporate change. 
The Company agrees to, jointly with the Depositary, amend the
Registration Statement on Form F-6 as filed with the Commission to permit the
issuance of such new form of ADRs. 
Notwithstanding the foregoing, in the event that any security so
received may not be lawfully distributed to some or all Holders, the Depositary
may, with the Company’s approval, and shall, if the Company requests, subject
to receipt of an opinion of Company’s counsel satisfactory to the Depositary
that such action is not in violation of any applicable laws or regulations,
sell such securities at public or private sale, at such place or places and
upon such terms as it may deem proper and may allocate the net proceeds of such
sales (net of (a) fees and charges of, and expenses incurred by, the
Depositary and (b) taxes) for the account of the Holders otherwise
entitled to such securities upon an averaged or other practicable basis without
regard to any distinctions among such Holders and distribute the net proceeds
so allocated to the extent practicable as in the case of a distribution
received in cash pursuant to Section 4.1. 
The Depositary shall not be responsible for (i) any failure to
determine that it may be lawful or feasible to make such securities available
to Holders in general or to any Holder in particular, (ii) any foreign
exchange exposure or loss incurred in connection with such sale, or
(iii) any liability to the purchaser of such securities.

 

Section 4.12           Available Information.  The Company is subject to the periodic
reporting requirements of the Exchange Act and accordingly files certain
information with the Commission.  These
reports and documents can be inspected and copied at the public reference
facilities maintained by the Commission located at Judiciary Plaza, 450 Fifth
Street, N.W., Washington D.C.  20549.

 

Section 4.13           Reports.  The Depositary shall make available for
inspection by Holders at its Principal Office any reports and communications,
including any proxy soliciting materials, received from the Company which are
both (a) received by the Depositary, the Custodian, or the nominee of
either of them as the holder of the Deposited Securities and (b) made
generally available to the holders of such Deposited Securities by the
Company.  The Depositary shall also
provide to Holders copies of such reports when furnished by the Company
pursuant to Section 5.6.

 

22

  

 

Section 4.14           List of Holders.  Promptly upon written request by the Company,
the Depositary shall furnish to it a list, as of a recent date, of the names,
addresses and holdings of ADSs of all Holders.

 

Section 4.15           Taxation.  The Depositary will, and will instruct the
Custodian to, forward to the Company or its agents such information from its
records as the Company may reasonably request to enable the Company or its
agents to file the necessary tax reports with governmental authorities or
agencies.  The Depositary, the Custodian
or the Company and its agents may file such reports as are necessary to reduce
or eliminate applicable taxes on dividends and on other distributions in
respect of Deposited Securities under applicable tax treaties or laws for the
Holders and Beneficial Owners.  In
accordance with instructions from the Company and to the extent practicable,
the Depositary or the Custodian will take reasonable administrative actions to
obtain tax refunds, reduced withholding of tax at source on dividends and other
benefits under applicable tax treaties or laws with respect to dividends and
other distributions on the Deposited Securities.  As a condition to receiving such benefits,
Holders and Beneficial Owners of ADSs may be required from time to time, and in
a timely manner, to file such proof of taxpayer status, residence and
beneficial ownership (as applicable), to execute such certificates and to make
such representations and warranties, or to provide any other information or
documents, as the Depositary or the Custodian may deem necessary or proper to
fulfill the Depositary’s or the Custodian’s obligations under applicable
law.  The Holders and Beneficial Owners
shall indemnify the Depositary, the Company, the Custodian and any of their
respective directors, employees, agents and Affiliates against, and hold each
of them harmless from, any claims by any governmental authority with respect to
taxes, additions to tax, penalties or interest arising out of any refund of
taxes, reduced rate of withholding at source or other tax benefit obtained.

 

If the Company (or
any of its agents) withholds from any distribution any amount on account of
taxes or governmental charges, or pays any other tax in respect of such
distribution (i.e., stamp duty tax, capital
gains or other similar tax), the Company shall (and shall cause such agent to)
remit promptly to the Depositary information about such taxes or governmental
charges withheld or paid, and, if so requested, the tax receipt (or other proof
of payment to the applicable governmental authority) therefor, in each
case,  in a form satisfactory to the
Depositary.  The Depositary shall, to the
extent required by U.S. law, report to Holders any taxes withheld by it or the
Custodian, and, if such information is provided to it by the Company, any taxes
withheld by the Company.  The Depositary
and the Custodian shall not be required to provide the Holders with any
evidence of the remittance by the Company (or its agents) of any taxes
withheld, or of the payment of taxes by the Company, except to the extent the
evidence is provided by the Company to the Depositary or the Custodian, as
applicable.  Neither the Depositary nor
the Custodian shall be liable for the failure by any Holder or Beneficial Owner
to obtain the benefits of credits on the basis of non-U.S. tax paid against
such Holder’s or Beneficial Owner’s income tax liability.

 

The Depositary is
under no obligation to provide the Holders and Beneficial Owners with any information
about the tax status of the Company.  The
Depositary shall not incur any liability for any tax consequences that may be
incurred by Holders and Beneficial Owners on account of their ownership of the
ADSs, including without limitation, tax consequences resulting from the Company
(or any of its subsidiaries) being treated as a “Foreign Personal Holding 

 

23

  

 

Company,” or as a
“Passive Foreign Investment Company” (in each case as defined in the U.S. Internal
Revenue Code and the regulations issued thereunder) or otherwise.

 

ARTICLE V

 

THE DEPOSITARY, THE CUSTODIAN AND
THE COMPANY

 

Section 5.1             Maintenance of Office and Transfer Books by the
Registrar.  Until
termination of this Deposit Agreement in accordance with its terms, the
Registrar shall maintain in the Borough of Manhattan, the City of New York, an
office and facilities for the execution and delivery, registration of
issuances, registration of transfers, combination and split-up of ADRs, and the
surrender of ADRs for the purpose of withdrawal of Deposited Securities in
accordance with the provisions of this Deposit Agreement.

 

The Registrar
shall keep books for the registration of issuances and transfers of ADRs which
at all reasonable times shall be open for inspection by the Company and by the
Holders of such ADRs, provided that such inspection shall not be, to the
Registrar’s knowledge, for the purpose of communicating with Holders of such
ADRs in the interest of a business or object other than the business of the
Company or other than a matter related to this Deposit Agreement or the ADRs.

 

The Registrar may
close the transfer books with respect to the ADRs, at any time or from time to
time, when deemed necessary or advisable by it in good faith in connection with
the performance of its duties hereunder, or at the reasonable written request
of the Company subject, in all cases, to Section 7.8 hereof.

 

If any ADRs or the
ADSs evidenced thereby are listed on one or more stock exchanges or automated
quotation systems in the United States, the Depositary shall act as Registrar
or appoint a Registrar or one or more co-registrars for registration of ADRs
and transfers, combinations and split-ups, and to countersign such ADRs in
accordance with any requirements of such exchanges or systems.  Such Registrar or co-registrars may be
removed and a substitute or substitutes appointed by the Depositary.

 

Section 5.2             Exoneration.  Neither the Depositary nor the Company shall
be obligated to do or perform any act which is inconsistent with the provisions
of this Deposit Agreement or incur any liability (i) if the Depositary or
the Company shall be prevented or forbidden from, or delayed in, doing or
performing any act or thing required by the terms of this Deposit Agreement, by
reason of any provision of any present or future law or regulation of the
United States, England and Wales or any other country, or of any other
governmental authority or regulatory authority or stock exchange, or on account
of the possible criminal or civil penalties or restraint, or by reason of any
provision, present or future, of the Articles of Association of the Company or
any provision of or governing any Deposited Securities, or by reason of any act
of God or war or other circumstances beyond its control (including, without
limitation, nationalization, expropriation, currency restrictions, work
stoppage, strikes, civil unrest, acts of terrorism, revolutions, rebellions,
explosions and computer failure), (ii) by reason of any exercise of, or
failure to exercise, any discretion provided for in this Deposit Agreement or
in the Articles of Association of the Company or provisions of or governing
Deposited Securities, (iii) for any 

 

24

  

 

action or inaction in
reliance upon the advice of or information from legal counsel, accountants, any
person presenting Shares for deposit, any Holder, any Beneficial Owner or
authorized representative thereof, or any other person believed by it in good
faith to be competent to give such advice or information, (iv) for the
inability by a Holder or Beneficial Owner to benefit from any distribution,
offering, right or other benefit which is made available to holders of
Deposited Securities but is not, under the terms of this Deposit Agreement,
made available to Holders of ADSs, or (v) for any consequential or
punitive damages for any breach of the terms of this Deposit Agreement.

 

The Depositary,
its controlling persons, its agents, any Custodian and the Company, its
controlling persons and its agents may rely and shall be protected in acting
upon any written notice, request or other document believed by it to be genuine
and to have been signed or presented by the proper party or parties.

 

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

 

Section 5.3             Standard of Care.  The Company and the Depositary assume no
obligation and shall not be subject to any liability under this Deposit
Agreement or any ADRs to any Holder(s) or Beneficial Owner(s), except that the
Company and the Depositary agree to perform their respective obligations
specifically set forth in this Deposit Agreement or the applicable ADRs without
negligence or bad faith.

 

Without limitation
of the foregoing, neither the Depositary, nor the Company, nor any of their
respective controlling persons, or agents, shall be under any obligation to
appear in, prosecute or defend any action, suit or other proceeding in respect
of any Deposited Securities or in respect of the ADRs, which in its opinion may
involve it in expense or liability, unless indemnity satisfactory to it against
all expense (including fees and disbursements of counsel) and liability be
furnished as often as may be required (and no Custodian shall be under any
obligation whatsoever with respect to such proceedings, the responsibility of
the Custodian being solely to the Depositary).

 

The Depositary and
its agents shall not be liable for any failure to carry out any instructions to
vote any of the Deposited Securities, or for the manner in which any vote is
cast or the effect of any vote, provided that any such action or
omission is in good faith and in accordance with the terms of this Deposit
Agreement.  The Depositary shall not
incur any liability for any failure to determine that any distribution or
action may be lawful or reasonably practicable, for the content of any
information submitted to it by the Company for distribution to the Holders or
for any inaccuracy of any translation thereof, for any investment risk
associated with acquiring an interest in the Deposited Securities, for the
validity or worth of the Deposited Securities or for any tax consequences that
may result from the ownership of ADSs, Shares or Deposited Securities, for the
credit-worthiness of any third party, for allowing any rights to lapse upon the
terms of this Deposit Agreement or for the failure or timeliness of any notice
from the Company.

 

Section 5.4             Resignation and Removal of the Depositary;
Appointment of Successor Depositary.  The Depositary may at any time resign as
Depositary hereunder by 

 

25

  

 

written notice of
resignation delivered to the Company, such resignation to be effective on the
earlier of (i) the 60th day after delivery thereof to the Company
(whereupon the Depositary shall be entitled to take the actions contemplated in
Section 6.2 hereof), or (ii) the appointment by the Company of a successor
depositary and its acceptance of such appointment as hereinafter provided.

 

The Depositary may
at any time be removed by the Company by written notice of such removal, which
removal shall be effective on the earlier of (i) the 60th day after
delivery thereof to the Depositary (whereupon the Depositary shall be entitled
to take the actions contemplated in Section 6.2 hereof), or (ii) upon the
appointment by the Company of a successor depositary and its acceptance of such
appointment as hereinafter provided.

 

In case at any
time the Depositary acting hereunder shall resign or be removed, the Company
shall use its best efforts to appoint a successor depositary, which shall be a
bank or trust company having an office in the Borough of Manhattan, the City of
New York.  Every successor depositary
shall be required by the Company to execute and deliver to its predecessor and
to the Company an instrument in writing accepting its appointment hereunder,
and thereupon such successor depositary, without any further act or deed
(except as required by applicable law), shall become fully vested with all the
rights, powers, duties and obligations of its predecessor (other than as
contemplated in Sections 5.8 and 5.9). 
The predecessor depositary, upon payment of all sums due it and on the
written request of the Company shall, (i) execute and deliver an
instrument transferring to such successor all rights and powers of such
predecessor hereunder (other than as contemplated in Sections 5.8 and 5.9),
(ii) duly assign, transfer and deliver all right, title and interest to
the Deposited Securities to such successor, and (iii) deliver to such
successor a list of the Holders of all outstanding ADRs and such other
information relating to ADRs and Holders thereof as the successor may
reasonably request.  Any such successor
depositary shall promptly provide notice of its appointment to such Holders.

 

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

 

Section 5.5             The Custodian.  The Depositary has initially appointed
Citibank, N.A. London as Custodian for the purpose of this Deposit
Agreement.  The Custodian or its
successors in acting hereunder shall be subject at all times and in all
respects to the direction of the Depositary for the Shares for which the
Custodian acts as custodian and shall be responsible solely to it.  If any Custodian resigns or is discharged
from its duties hereunder with respect to any Deposited Securities and no other
Custodian has previously been appointed hereunder, the Depositary shall
promptly appoint a substitute custodian that is organized under the laws of
England and Wales.  The Depositary shall
require such resigning or discharged Custodian to deliver the Deposited
Securities held by it, together with all such records maintained by it as
Custodian with respect to such Deposited Securities as the Depositary may
request, to the Custodian designated by the Depositary.  Whenever the Depositary determines, in its
discretion, that it is appropriate to do so, it may appoint an additional
custodian with respect to any Deposited Securities, or discharge the Custodian
with respect to any Deposited Securities and appoint a substitute custodian,
which shall thereafter be Custodian hereunder with respect to the 

 

26

  

 

Deposited
Securities.  Immediately upon any such
change, the Depositary shall give notice thereof in writing to all Holders of
ADRs, each other Custodian and the Company.

 

Upon the appointment
of any successor depositary, any Custodian then acting hereunder shall, unless
otherwise instructed by the Depositary, continue to be the Custodian of the
Deposited Securities without any further act or writing, and shall be subject
to the direction of the successor depositary. 
The successor depositary so appointed shall, nevertheless, on the
written request of any Custodian, execute and deliver to such Custodian all
such instruments as may be proper to give to such Custodian full and complete power
and authority to act on the direction of such successor depositary.

 

Section 5.6             Notices and Reports.  On or before the first date on which the
Company gives notice, by publication or otherwise, of any meeting of holders of
Shares or other Deposited Securities, or of any adjourned meeting of such
holders, or of the taking of any action by such holders other than at a
meeting, or of the taking of any action in respect of any cash or other
distributions or the offering of any rights in respect of Deposited Securities,
the Company shall transmit to the Depositary and the Custodian a copy of the
notice thereof in the English language but otherwise in the form given or to be
given to holders of Shares or other Deposited Securities.  The Company shall also furnish to the
Custodian and the Depositary a summary, in English, of any applicable
provisions or proposed provisions of the Articles of Association of the Company
that may be relevant or pertain to such notice of meeting or be the subject of
a vote thereat.

 

The Depositary
shall arrange, at the request of the Company and at the Company’s expense, to
provide copies thereof to all Holders or make such notices, reports and other
communications available to all Holders on a basis similar to that for holders
of Shares or other Deposited Securities or on such other basis as the Company
may advise the Depositary or as may be required by any applicable law,
regulation or stock exchange requirement.

 

The Depositary
will, at the expense of the Company, make available a copy of any such notices,
reports or communications issued by the Company and delivered to the Depositary
for inspection by the Holders of the ADRs at the Depositary’s Principal Office,
at the office of the Custodian and at any other designated transfer office.

 

Section 5.7             Issuance of Additional Shares, ADSs etc.  The Company agrees that in the event it or
any of its Affiliates proposes (i) an issuance, sale or distribution of
additional Shares, (ii) an offering of rights to subscribe for Shares or
other Deposited Securities, (iii) an issuance of securities convertible
into or exchangeable for Shares, (iv) an issuance of rights to subscribe
for securities convertible into or exchangeable for Shares, (v) an
elective dividend of cash or Shares, (vi) a redemption of Deposited
Securities, (vii) a meeting of holders of Deposited Securities, or
solicitation of consents or proxies, relating to any reclassification of
securities, merger or consolidation or transfer of assets, or (viii) any
reclassification, recapitalization, reorganization, merger, consolidation or
sale of assets which affects the Deposited Securities, it will obtain U.S.
legal advice and take all steps necessary to ensure that the proposed
transaction does not violate the registration provisions of the Securities Act,
or any other applicable laws (including, without limitation, the Investment
Company Act of 1940, as amended, the Exchange Act and the securities laws of
the states of the U.S.).  In support of the
foregoing, the Company will furnish to the Depositary (a) a written
opinion of U.S. counsel (reasonably satisfactory to the 

 

27

  

 

Depositary) stating
whether such transaction (1) requires a registration statement under the
Securities Act to be in effect or (2) is exempt from the registration
requirements of the Securities Act and (b) an opinion of English counsel
stating that (1) making the transaction available to Holders and
Beneficial Owners does not violate the laws or regulations of United Kingdom
and (2) all requisite regulatory consents and approvals have been obtained
in United Kingdom.  If the filing of a
registration statement is required, the Depositary shall not have any
obligation to proceed with the transaction unless it shall have received
evidence reasonably satisfactory to it that such registration statement has
been declared effective.  If, being
advised by counsel, the Company determines that a transaction is required to be
registered under the Securities Act, the Company will either (i) register
such transaction to the extent necessary, (ii) alter the terms of the
transaction to avoid the registration requirements of the Securities Act or
(iii) direct the Depositary to take specific measures, in each case as contemplated
in this Deposit Agreement, to prevent such transaction from violating the
registration requirements of the Securities Act.  The Company agrees with the Depositary that
neither the Company nor any of its Affiliates will at any time (i) deposit
any Shares or other Deposited Securities, either upon original issuance or upon
a sale of Shares or other Deposited Securities previously issued and reacquired
by the Company or by any such Affiliate, or (ii) issue additional Shares,
rights to subscribe for such Shares, securities convertible into or
exchangeable for Shares or rights to subscribe for such securities, unless such
transaction and the securities issuable in such transaction are exempt from
registration under the Securities Act and, if applicable, the Exchange Act or
have been registered under the Securities Act and, if applicable, the Exchange
Act (and such registration statement has been declared effective).

 

Notwithstanding
anything else contained in this Deposit Agreement, nothing in this Deposit
Agreement shall be deemed to obligate the Company to file any registration
statement in respect of any proposed transaction.

 

Section 5.8             Indemnification.  The Depositary agrees to indemnify the
Company and its directors, officers, employees, agents and Affiliates against,
and hold each of them harmless from, any direct loss, liability, tax, charge or
expense of any kind whatsoever (including, but not limited to, the reasonable
fees and expenses of counsel) which may arise out of acts performed or omitted
by the Depositary under the terms hereof due to the negligence or bad faith of
the Depositary.

 

The Company agrees
to indemnify the Depositary, the Custodian and any of their respective
directors, officers, employees, agents and Affiliates against, and hold each of
them harmless from, any direct loss, liability, tax, charge or expense of any
kind whatsoever (including, but not limited to, the reasonable fees and
expenses of counsel) that may arise (a) out of or in connection with any
offer, issuance, sale, resale, transfer, deposit or withdrawal of ADRs, ADSs,
the Shares, or other Deposited Securities, as the case may be, (b) out of
or as a result of any offering documents in respect thereof or (c) out of
acts performed or omitted, including, but not limited to, any delivery by the
Depositary on behalf of the Company of information regarding the Company in
connection with this Deposit Agreement, the ADRs, the ADSs, the Shares, or any
Deposited Securities, in any such case (i) by the Depositary, the
Custodian or any of their respective directors, officers, employees, agents and
Affiliates, except to the extent such loss, liability, tax, charge or expense
is due to the negligence or bad faith of 

 

28

  

 

any of them, or
(ii) by the Company or any of its directors, officers, employees, agents
and Affiliates.

 

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

 

Any person seeking
indemnification hereunder (an “indemnified person”) shall notify the person
from whom it is seeking indemnification (the “indemnifying person”) of the
commencement of any indemnifiable action or claim promptly after such
indemnified person becomes aware of such commencement (provided that the
failure to make such notification shall not affect such indemnified person’s
rights to seek indemnification except to the extent the indemnifying person is
materially prejudiced by such failure) and shall consult in good faith with the
indemnifying person as to the conduct of the defense of such action or claim
that may give rise to an indemnity hereunder, which defense shall be reasonable
in the circumstances.  No indemnified
person shall compromise or settle any action or claim that may give rise to an
indemnity hereunder without the consent of the indemnifying person, which
consent shall not be unreasonably withheld.

 

Section 5.9             Fees and Charges of Depositary.  The Company, the Holders, the Beneficial
Owners, and persons depositing Shares or surrendering ADSs for cancellation and
withdrawal of Deposited Securities shall be required to pay to the Depositary
the Depositary’s fees and related charges identified as payable by them
respectively in the Fee Schedule attached hereto as Exhibit B.  All fees and charges so payable may, at any
time and from time to time, be changed by agreement between the Depositary and
the Company, but, in the case of fees and charges payable by Holders and
Beneficial Owners, only in the manner contemplated in Section 6.1.  The Depositary shall provide, without charge,
a copy of its latest fee schedule to anyone upon request.

 

The Company agrees
to promptly pay to the Depositary such other fees and charges and to reimburse
the Depositary for such out-of-pocket expenses as the Depositary and the
Company may agree to in writing from time to time.  Responsibility for payment of such charges
may at any time and from time to time be changed by agreement between the
Company and the Depositary.  Unless otherwise
agreed, the Depositary shall present its statement for such expenses and fees
or charges to the Company once every three months.  The charges and expenses of the Custodian are
for the sole account of the Depositary.

 

The right of the
Depositary to receive payment of fees, charges and expenses as provided above
shall survive the termination of this Deposit Agreement.  As to any Depositary, upon the resignation or
removal of such Depositary as described in Section 5.4 hereof, such right shall
extend for those fees, charges and expenses incurred prior to the effectiveness
of such resignation or removal.

 

Section 5.10           Pre-Release Transactions.  Subject to the further terms and provisions
of this Section 5.10, the Depositary, its Affiliates and their agents, on their
own behalf, may own and deal in any class of securities of the Company and its
Affiliates and in ADSs.  In its capacity
as Depositary, the Depositary shall not lend Shares or ADSs; provided, however,
that the Depositary may (i) issue ADSs prior to the receipt of Shares
pursuant to Section 2.3 and 

 

29

  

 

(ii) deliver Shares
prior to the receipt of ADSs for withdrawal of Deposited Securities pursuant to
Section 2.7, including ADSs which were issued under (i) above but for which
Shares may not have been received (each such transaction a “Pre-Release
Transaction”).  The Depositary may
receive ADSs in lieu of Shares under (i) above and receive Shares in lieu of ADSs
under (ii) above.  Each such Pre-Release
Transaction will be (a) subject to a written agreement whereby the person
or entity (the “Applicant”) to whom ADSs or Shares are to be delivered
(w) represents that at the time of the Pre-Release Transaction the
Applicant or its customer owns the Shares or ADSs that are to be delivered by
the Applicant under such Pre-Release Transaction, (x) agrees to indicate
the Depositary as owner of such Shares or ADSs in its records and to hold such
Shares or ADSs in trust for the Depositary until such Shares or ADSs are
delivered to the Depositary or the Custodian, (y) unconditionally
guarantees to deliver to the Depositary or the Custodian, as applicable, such
Shares or ADSs, and (z) agrees to any additional restrictions or
requirements that the Depositary deems appropriate, (b) at all times fully
collateralized with cash, U.S. government securities or such other collateral
as the Depositary deems appropriate, (c) terminable by the Depositary on
not more than five (5) business days’ notice and (d) subject to such further
indemnities and credit regulations as the Depositary deems appropriate.  The Depositary will normally limit the number
of ADSs and Shares involved in such Pre-Release Transactions at any one time to
thirty percent (30%) of the ADSs outstanding (without giving effect to ADSs
outstanding under (i) above), provided, however, that the
Depositary reserves the right to change or disregard such limit from time to
time as it deems appropriate.

 

The Depositary may
also set limits with respect to the number of ADSs and Shares involved in
Pre-Release Transactions with any one person on a case-by-case basis as it
deems appropriate.  The Depositary may
retain for its own account any compensation received by it in conjunction with
the foregoing.  Collateral provided
pursuant to (b) above, but not the earnings thereon, shall be held for the
benefit of the Holders (other than the Applicant).

 

Section 5.11           Restricted Securities Owners.  The Company agrees to advise in writing each
of the persons or entities who, to the knowledge of the Company, holds
Restricted Securities that such Restricted Securities are ineligible for
deposit hereunder and, to the extent practicable, shall require each of such
persons to represent in writing that such person will not deposit Restricted
Securities hereunder.

 

ARTICLE VI

 

AMENDMENT AND TERMINATION

 

Section 6.1             Amendment/Supplement.  Subject to the terms and conditions of this
Section 6.1 and applicable law, the ADRs outstanding at any time, the
provisions of this Deposit Agreement and the form of ADR attached hereto and to
be issued under the terms hereof may at any time and from time to time be
amended or supplemented by written agreement between the Company and the
Depositary in any respect which they may deem necessary or desirable without
the prior written consent of the Holders or Beneficial Owners.  Any amendment or supplement which shall
impose or increase any fees or charges (other than charges in connection with
foreign exchange control regulations, and taxes and other governmental charges,
delivery and other such expenses), or which shall otherwise materially
prejudice any substantial existing right of Holders or Beneficial Owners, shall
not, however, become effective as to outstanding ADRs 

 

30

  

 

until the expiration of
thirty (30) days after notice of such amendment or supplement shall have been
given to the Holders of outstanding ADRs. 
The parties hereto agree that any amendments or supplements which (i) are
reasonably necessary (as agreed by the Company and the Depositary) in order for
(a) the ADSs to be registered on Form F-6 under the Securities Act or
(b) the ADSs to be traded solely in electronic book-entry form and
(ii) do not in either such case impose or increase any fees or charges to
be borne by Holders, shall be deemed not to materially prejudice any
substantial rights of Holders or Beneficial Owners.  Every Holder and Beneficial Owner at the time
any amendment or supplement so becomes effective shall be deemed, by continuing
to hold such ADSs, to consent and agree to such amendment or supplement and to
be bound by the Deposit Agreement and the ADR as amended or supplemented
thereby.  In no event shall any amendment
or supplement impair the right of the Holder to surrender such ADR and receive
therefor the Deposited Securities represented thereby, except in order to
comply with mandatory provisions of applicable law.  Notwithstanding the foregoing, if any
governmental body should adopt new laws, rules or regulations which would
require an amendment of, or supplement to, the Deposit Agreement to ensure
compliance therewith, the Company and the Depositary may amend or supplement
the Deposit Agreement and the ADRs at any time in accordance with such changed
laws, rules or regulations.  Such
amendment or supplement to the Deposit Agreement and the ADRs in such
circumstances may become effective before a notice of such amendment or
supplement is given to Holders or within any other period of time as required
for compliance with such laws, rules or regulations.

 

Section 6.2             Termination.  The Depositary shall, at any time at the
written direction of the Company, terminate this Deposit Agreement by providing
notice of such termination to the Holders of all ADRs then outstanding at least
thirty (30) days prior to the date fixed in such notice for such
termination.  If sixty (60) days shall
have expired after (i) the Depositary shall have delivered to the Company
a written notice of its election to resign, or (ii) the Company shall have
delivered to the Depositary a written notice of the removal of the Depositary,
and in either case a successor depositary shall not have been appointed and
accepted its appointment as provided in Section 5.4, the Depositary may
terminate this Deposit Agreement by providing notice of such termination to the
Holders of all ADRs then outstanding at least thirty (30) days prior to the
date fixed for such termination.  On and
after the date of termination of this Deposit Agreement, the Holder of an ADR
will, upon surrender of such ADR at the Principal Office of the Depositary,
upon the payment of the charges of the Depositary for the surrender of ADRs
referred to in Section 2.7 and subject to the conditions and restrictions
therein set forth, and upon payment of any applicable taxes or governmental
charges, be entitled to Delivery, to him or upon his order, of the amount of
Deposited Securities represented by such ADR. 
If any ADRs shall remain outstanding after the date of termination of
this Deposit Agreement, the Registrar thereafter shall discontinue the
registration of transfers of ADRs, and the Depositary shall suspend the
distribution of dividends to the Holders thereof, and shall not give any
further notices or perform any further acts under this Deposit Agreement,
except that the Depositary shall continue to collect dividends and other
distributions pertaining to Deposited Securities, shall sell rights as provided
in this Deposit Agreement, and shall continue to deliver Deposited Securities,
subject to the conditions and restrictions set forth in Section 2.7, together
with any dividends or other distributions received with respect thereto and the
net proceeds of the sale of any rights or other property, in exchange for ADRs
surrendered to the Depositary (after deducting, or charging, as the case may
be, in each case, the charges of the Depositary for the surrender of a ADR, any
expenses for the account of the Holder in accordance with the terms and 

 

31

  

 

conditions of this
Deposit Agreement and any applicable taxes or governmental charges or
assessments).  At any time after the
expiration of six months from the date of termination of this Deposit
Agreement, the Depositary may sell the Deposited Securities then held hereunder
and may thereafter hold uninvested the net proceeds of any such sale, together
with any other cash then held by it hereunder, in an unsegregated account,
without liability for interest for the pro rata benefit of the Holders whose
ADRs have not theretofore been surrendered. 
After making such sale, the Depositary shall be discharged from all
obligations under this Deposit Agreement with respect to the ADRs, the
Deposited Securities and the ADSs, except to account for such net proceeds and
other cash (after deducting, or charging, as the case may be, in each case, the
charges of the Depositary for the surrender of an ADR, any expenses for the
account of the Holder in accordance with the terms and conditions of this
Deposit Agreement and any applicable taxes or governmental charges or
assessments).  Upon the termination of
this Deposit Agreement, the Company shall be discharged from all obligations
under this Deposit Agreement except for its obligations to the Depositary under
Sections 5.8, 5.9 and 7.6 hereof.

 

ARTICLE VII

 

MISCELLANEOUS

 

Section 7.1             Counterparts.  This Deposit Agreement may be executed in any
number of counterparts, each of which shall be deemed an original and all of
such counterparts together shall constitute one and the same agreement.  Copies of this Deposit Agreement shall be
maintained with the Depositary and shall be open to inspection by any Holder
during business hours.

 

Section 7.2             No Third-Party Beneficiaries.  This Deposit Agreement is for the exclusive
benefit of the parties hereto (and their successors) and shall not be deemed to
give any legal or equitable right, remedy or claim whatsoever to any other
person, except to the extent specifically set forth in this Deposit
Agreement.  Nothing in this Deposit
Agreement shall be deemed to give rise to a partnership or joint venture among
the parties nor establish a fiduciary or similar relationship among the
parties.  The parties hereto acknowledge
and agree that (i) the Depositary and its Affiliates may at any time have
multiple banking relationships with the Company and its Affiliates,
(ii) the Depositary and its Affiliates may be engaged at any time in
transactions in which parties adverse to the Company or the Holders or
Beneficial Owners may have interests and (iii) nothing contained in this
Deposit Agreement shall (a) preclude the Depositary or any of its
Affiliates from engaging in such transactions or establishing or maintaining
such relationships, or (b) obligate the Depositary or any of its
Affiliates to disclose such transactions or relationships or to account for any
profit made or payment received in such transactions or relationships.

 

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

 

Section 7.4             Holders and Beneficial Owners as Parties; Binding
Effect.  The Holders and
Beneficial Owners from time to time of ADSs shall be parties to this Deposit 

 

32

  

 

Agreement and shall be
bound by all of the terms and conditions hereof and of any ADR by acceptance
thereof or any beneficial interest therein.

 

Section 7.5             Notices.  Any and all notices to be given to the
Company shall be deemed to have been duly given if personally delivered or sent
by mail, air courier or cable, telex or facsimile transmission, confirmed by
letter personally delivered or sent by mail or air courier, addressed to
Jackson National Life Insurance Company, 1 Corporate Way Lansing, MI 48951,
Attention:  General Counsel, or to any
other address which the Company may specify in writing to the Depositary.

 

Any and all
notices to be given to the Depositary shall be deemed to have been duly given
if personally delivered or sent by mail, air courier or cable, telex or
facsimile transmission, confirmed by letter personally delivered or sent by
mail or air courier, addressed to Citibank, N.A., 388 Greenwich Street, New
York, New York 10013, U.S.A., Attention: 
Depositary Receipts Department, or to any other address which the
Depositary may specify in writing to the Company.

 

Any and all
notices to be given to any Holder shall be deemed to have been duly given if
(a) personally delivered or sent by mail or cable, telex or facsimile
transmission, confirmed by letter, addressed to such Holder at the address of
such Holder as it appears on the books of the Depositary or, if such Holder
shall have filed with the Depositary a request that notices intended for such
Holder be mailed to some other address, at the address specified in such
request, or (b) if a Holder shall have designated such means of
notification as an acceptable means of notification under the terms of this
Deposit Agreement, by means of electronic messaging addressed for delivery to
the e-mail address designated by the Holder for such purpose.  Notice to Holders shall be deemed to be
notice to Beneficial Owners for all purposes of this Deposit Agreement.  Failure to notify a Holder or any defect in
the notification to a Holder shall not affect the sufficiency of notification to
other Holders or to the Beneficial Owners of ADSs held by such other Holders.

 

Delivery of a
notice sent by mail, air courier or cable, telex or facsimile transmission
shall be deemed to be effective at the time when a duly addressed letter
containing the same (or a confirmation thereof in the case of a cable, telex or
facsimile transmission) is deposited, postage prepaid, in a post-office letter
box or delivered to an air courier service, without regard for the actual
receipt or time of actual receipt thereof by a Holder.  The Depositary or the Company may, however,
act upon any cable, telex or facsimile transmission received by it from any
Holder, the Custodian, the Depositary, or the Company, notwithstanding that
such cable, telex or facsimile transmission shall not be subsequently confirmed
by letter.

 

Section 7.6             Governing Law and Jurisdiction.  This Deposit Agreement and the ADRs shall be
interpreted in accordance with, and all rights hereunder and thereunder and
provisions hereof and thereof shall be governed by, the laws of the State of New
York without reference to the principles of choice of law thereof.  Notwithstanding anything contained in this
Deposit Agreement, any ADR or any present or future provisions of the laws of
the State of New York, the rights of holders of Shares and of any other
Deposited Securities and the obligations and duties of the Company in respect
of the holders of Shares and other Deposited Securities, as 

 

33

  

 

such, shall be governed
by the laws of England and Wales (or, if applicable, such other laws as may
govern the Deposited Securities).

 

Delivery of a
notice by means of electronic messaging shall be deemed to be effective at the
time of the initiation of the transmission by the sender (as shown on the
sender’s records), notwithstanding that the intended recipient retrieves the
message at a later date, fails to retrieve such message, or fails to receive
such notice on account of its failure to maintain the designated e-mail
address, its failure to designate a substitute e-mail address or for any other
reason.

 

Except as set
forth in the following paragraph of this Section 7.6, the Company and the
Depositary agree that the federal or state courts in the City of New York shall
have jurisdiction to hear and determine any suit, action or proceeding and to
settle any dispute between them that may arise out of or in connection with
this Deposit Agreement and, for such purposes, each irrevocably submits to the
non-exclusive jurisdiction of such courts. 
The Company hereby irrevocably designates, appoints and empowers Jackson
National Life Insurance Company (the “Agent”) now at 1 Corporate Way Lansing,
MI 48951, Attention General Counsel as its authorized agent to receive and
accept for and on its behalf, and on behalf of its properties, assets and
revenues, service by mail of any and all legal process, summons, notices and
documents that may be served in any suit, action or proceeding brought against
the Company in any federal or state court as described in the preceding sentence
or in the next paragraph of this Section 7.6. 
If for any reason the Agent shall cease to be available to act as such,
the Company agrees to designate a new agent in New York on the terms and for
the purposes of this Section 7.6 reasonably satisfactory to the
Depositary.  The Company further hereby
irrevocably consents and agrees to the service of any and all legal process,
summons, notices and documents in any suit, action or proceeding against the
Company, by service by mail of a copy thereof upon the Agent (whether or not
the appointment of such Agent shall for any reason prove to be ineffective or
such Agent shall fail to accept or acknowledge such service), with a copy
mailed to the Company by registered or certified air mail, postage prepaid, to
its address provided in Section 7.5 hereof. 
The Company agrees that the failure of the Agent to give any notice of
such service to it shall not impair or affect in any way the validity of such
service or any judgment rendered in any action or proceeding based thereon.

 

Notwithstanding
the foregoing, the Depositary and the Company unconditionally agree that in the
event that a Holder or Beneficial Owner brings a suit, action or proceeding
against (a) the Company, (b) the Depositary in its capacity as Depositary
under this Deposit Agreement or (c) against both the Company and the
Depositary, in any such case, in any state or federal court of the United
States, and the Depositary or the Company have any claim, for indemnification
or otherwise, against each other arising out of the subject matter of such
suit, action or proceeding, then the Company and the Depositary may pursue such
claim against each other in the state or federal court in the United States in
which such suit, action, or proceeding is pending and, for such purposes, the
Company and the Depositary irrevocably submit to the non-exclusive jurisdiction
of such courts.  The Company agrees that
service of process upon the Agent in the manner set forth in the preceding
paragraph shall be effective service upon it for any suit, action or proceeding
brought against it as described in this paragraph.

 

The Company
irrevocably and unconditionally waives, to the fullest extent permitted by law,
any objection that it may now or hereafter have to the laying of venue of any
actions, suits 

 

34

  

 

or proceedings brought in
any court as provided in this Section 7.6, and hereby further irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that
any such action, suit or proceeding brought in any such court has been brought
in an inconvenient forum.

 

The Company
irrevocably and unconditionally waives, to the fullest extent permitted by law,
and agrees not to plead or claim, any right of immunity from legal action, suit
or proceeding, from setoff or counterclaim, from the jurisdiction of any court,
from service of process, from attachment upon or prior to judgment, from
attachment in aid of execution or judgment, from execution of judgment, or from
any other legal process or proceeding for the giving of any relief or for the
enforcement of any judgment, and consents to such relief and enforcement
against it, its assets and its revenues in any jurisdiction, in each case with
respect to any matter arising out of, or in connection with, the Deposit
Agreement, any ADR or the Deposited Securities.

 

No disclaimer of
liability under the Securities Act is intended by any provision of the Deposit
Agreement.  The provisions of this
Section 7.6 shall survive any termination of this Deposit Agreement, in whole
or in part.

 

Section 7.7             Assignment.  Subject to the provisions of Section 5.4
hereof, this Deposit Agreement may not be assigned by either the Company or the
Depositary.

 

Section 7.8             Compliance with U.S. Securities Laws.  Notwithstanding anything in this Deposit
Agreement to the contrary, the withdrawal or delivery of Deposited Securities
will not be suspended by the Company or the Depositary except as would be
permitted by Instruction I.A.(1) of the General Instructions to Form F-6
Registration Statement, as amended from time to time, under the Securities Act.

 

Section 7.9             U.K. Law References.  Any summary of United Kingdom laws and
regulations and of the terms of the Company’s Articles of Association/By-laws
set forth in this Deposit Agreement have been provided by the Company solely
for the convenience of Holders, Beneficial Owners and the Depositary.  While such summaries are believed by the
Company to be accurate as of the date of this Deposit Agreement, (i) they
are summaries and as such may not include all aspects of the materials
summarized applicable to a Holder or Beneficial Owner, and (ii) these laws
and regulations and the Company’s Articles of Association/By-laws may change after
the date of this Deposit Agreement. 
Neither the Depositary nor the Company has any obligation under the
terms of this Deposit Agreement to update any such summaries.

 

Section 7.10           Titles and References.  All references in this Deposit Agreement to
exhibits, articles, sections, subsections, and other subdivisions refer to the
exhibits, articles, sections, subsections and other subdivisions of this
Deposit Agreement unless expressly provided otherwise.  The words “this Deposit Agreement”, “herein”,
“hereof”, “hereby”, “hereunder”, and words of similar import refer to the
Deposit Agreement as a whole as in effect between the Company, the Depositary
and the Holders and Beneficial Owners of ADSs and not to any particular
subdivision unless expressly so limited. 
Pronouns in masculine, feminine and neuter gender shall be construed to
include any other gender, and words in the singular form shall be construed to
include the plural and vice versa
unless the context otherwise requires. 
Titles to 

 

35

  

 

sections of this Deposit
Agreement are included for convenience only and shall be disregarded in
construing the language contained in this Deposit Agreement.  References to “applicable laws and
regulations” shall refer to laws and regulations applicable to ADRs, ADSs or
Deposited Securities as in effect at the relevant time of determination, unless
otherwise required by law or regulation.

 

IN WITNESS
WHEREOF, PRUDENTIAL PUBLIC LIMITED COMPANY and CITIBANK, N.A. have duly
executed this Deposit Agreement as of the day and year first above set forth
and all Holders and Beneficial Owners shall become parties hereto upon
acceptance by them of ADSs evidenced by ADRs issued in accordance with the
terms hereof, or upon acquisition of any beneficial interest therein.

 

	
   

  	
  Prudential Public
  Limited Company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  CITIBANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

36

 

  

EXHIBIT
A

 

[FORM OF ADR]

 

	
  Number

  	
  CUSIP NUMBER:
  ____________

  
	
   

  	
   

  
	
   

  	
  American Depositary
  Shares (each American

  Depositary Share representing one

  Fully Paid preference share)

  

 

 

AMERICAN DEPOSITARY
RECEIPT

 

FOR

 

AMERICAN DEPOSITARY
SHARES

 

representing

 

DEPOSITED PREFERENCE
SHARES

 

of

 

PRUDENTIAL PUBLIC LIMITED COMPANY

 

(Incorporated under the
laws of England and Wales)

 

CITIBANK, N.A., a
national banking association organized and existing under the laws of the
United States of America, as depositary (the “Depositary”), hereby certifies
that                     is the owner
of                    American
Depositary Shares (hereinafter “ADS”), representing deposited preference
shares, including evidence of rights to receive such preference shares (the
“Shares”), of Prudential Public Limited Company, a corporation incorporated
under the laws of England and Wales (the “Company”).  As of the date of the Deposit Agreement (as hereinafter defined),
each ADS represents one Share deposited under the Deposit Agreement with the
Custodian, which at the date of execution of the Deposit Agreement is Citibank,
N.A. London (the “Custodian”).  The
ADS(s)-to-Share(s) ratio is subject to amendment as provided in Articles IV and
VI of the Deposit Agreement.  The
Depositary’s Principal Office is located at 388 Greenwich Street, New York, New
York 10013, U.S.A.

 

(1)           The Deposit Agreement.  This American Depositary Receipt is one of
an issue of American Depositary Receipts (“ADRs”), all issued and to be issued
upon the terms and conditions set forth in the Deposit Agreement, dated as
of                       (as amended and
supplemented from time to time, the “Deposit Agreement”), by and among the
Company, the Depositary, and all Holders and Beneficial Owners from time to
time of ADSs evidenced by ADRs issued thereunder.  The Deposit Agreement sets forth the rights and obligations of
Holders and Beneficial Owners of ADRs and the rights and duties of the
Depositary in respect of the Shares deposited thereunder and any and all other
securities, property and cash from time to time 

 

A-1

 

received in respect of
such Shares and held thereunder (such Shares, securities, property and cash are
herein called “Deposited Securities”). 
Copies of the Deposit Agreement are on file at the Principal Office of
the Depositary and with the Custodian. 
Each Holder and each Beneficial Owner, upon acceptance of any ADSs (or
any interest therein) issued in accordance with the terms and conditions of the
Deposit Agreement, shall be deemed for all purposes to (a) be a party to
and bound by the terms of the Deposit Agreement and applicable ADR(s), and
(b) appoint the Depositary its attorney-in-fact, with full power to
delegate, to act on its behalf and to take any and all actions contemplated in
the Deposit Agreement and the applicable ADR(s), to adopt any and all
procedures necessary to comply with applicable law and to take such action as
the Depositary in its sole discretion may deem necessary or appropriate to carry
out the purposes of the Deposit Agreement and the applicable ADR(s), the taking
of such actions to be the conclusive determinant of the necessity and
appropriateness thereof.

 

The statements
made on the face and reverse of this ADR are summaries of certain provisions of
the Deposit Agreement and the Articles of Association of the Company (as in
effect on the date of the signing of the Deposit Agreement) and are qualified
by and subject to the detailed provisions of the Deposit Agreement and the
Articles of Association, to which reference is hereby made.  All capitalized terms used herein which are
not otherwise defined herein shall have the meanings ascribed thereto in the
Deposit Agreement.  The Depositary makes
no representation or warranty as to the validity or worth of the Deposited
Securities.  The Depositary has made
arrangements for the acceptance of the ADSs into DTC.  Each Beneficial Owner of ADSs held through DTC must rely on the
procedures of DTC and the DTC Participants to exercise and be entitled to any
rights attributable to such ADSs.

 

(2)           Withdrawal of Deposited Securities.  The Holder of this ADR (and of the ADSs
evidenced hereby) shall be entitled to Delivery (at the Custodian’s designated
office) of the Deposited Securities at the time represented by the ADSs
evidenced hereby upon satisfaction of each of the following conditions:  (i) the Holder (or a duly authorized
attorney of the Holder) has duly Delivered to the Depositary at its Principal
Office the ADSs evidenced hereby (and, if applicable, this ADR) for the purpose
of withdrawal of the Deposited Securities represented thereby, (ii) if so
required by the Depositary, this ADR has been properly endorsed in blank or is
accompanied by proper instruments of transfer in blank (including signature
guarantees in accordance with standard securities industry practice),
(iii) if so required by the Depositary, the Holder of the ADSs has
executed and delivered to the Depositary a written order directing the
Depositary to cause the Deposited Securities being withdrawn to be Delivered to
or upon the written order of the person(s) designated in such order, and
(iv) all applicable fees and charges of, and expenses incurred by, the
Depositary and all applicable taxes and governmental charges (as are set forth
in Section 5.9 of, and Exhibit B to, the Deposit Agreement) have been paid, subject,
however, in each case, to the terms and conditions of this ADR, of
the Deposit Agreement, of the Company’s Articles of Association, of any
applicable laws and the rules of DTC, and to any provisions of or governing the
Deposited Securities, in each case as in effect at the time thereof.

 

Upon satisfaction
of each of the conditions specified above, the Depositary (i) shall cancel
the ADSs Delivered to it (and, if applicable, the ADR(s) evidencing the ADSs so
Delivered), (ii) shall direct the Registrar to record the cancellation of
the ADSs so Delivered on the books maintained for such purpose, and
(iii) shall direct the Custodian to Deliver (without 

 

A-2

 

unreasonable delay) at
the Custodian’s designated office the Deposited Securities represented by the
ADSs so canceled together with any certificate or other document of title for
the Deposited Securities, or evidence of the electronic transfer thereof (if
available), as the case may be, to or upon the written order of the person(s)
designated in the order delivered to the Depositary for such purpose, subject
however, in each case, to the terms and conditions of the Deposit Agreement,
of this ADR, of the Articles of Association of the Company, of any applicable
laws and the rules of the DTC, and to the terms and conditions of  or governing the Deposited Securities, in
each case as in effect at the time thereof.

 

The Depositary
shall not accept for surrender ADSs representing less than one Share.  In the case of Delivery to it of ADSs
representing a number other than a whole number of Shares, the Depositary shall
cause ownership of the appropriate whole number of Shares to be Delivered in
accordance with the terms hereof, and shall, at the discretion of the
Depositary, either (i) return to the person surrendering such ADSs the
number of ADSs representing any remaining fractional Share, or (ii) sell
or cause to be sold the fractional Share represented by the ADSs so surrendered
and remit the proceeds of such sale (net of (a) applicable fees and
charges of, and expenses incurred by, the Depositary and (b) taxes
withheld) to the person surrendering the ADSs. 
Notwithstanding anything else contained in this ADR or the Deposit
Agreement, the Depositary may make delivery at the Principal Office of the
Depositary of (i) any cash dividends or cash distributions, or
(ii) any proceeds from the sale of any distributions of shares or rights, which
are at the time held by the Depositary in respect of the Deposited Securities
represented by the ADSs surrendered for cancellation and withdrawal.  At the request, risk and expense of any
Holder so surrendering ADSs represented by this ADR, and for the account of
such Holder, the Depositary shall direct the Custodian to forward (to the
extent permitted by law) any cash or other property (other than securities)
held by the Custodian in respect of the Deposited Securities represented by
such ADSs to the Depositary for delivery at the Principal Office of the
Depositary.  Such direction shall be
given by letter or, at the request, risk and expense of such Holder, by cable,
telex or facsimile transmission.

 

(3)           Transfer, Combination and Split-Up of ADRs.  The Registrar shall register the transfer of
this ADR (and of the ADSs represented hereby) on the books maintained for such
purpose and the Depositary shall (x) cancel this ADR and execute new ADRs
evidencing the same aggregate number of ADSs as those evidenced by this ADR
when canceled, (y) cause the Registrar to countersign such new ADRs, and
(z) Deliver such new ADRs to or upon the order of the person entitled
thereto, if each of the following conditions has been satisfied:  (i) this ADR has been duly Delivered by
the Holder (or by a duly authorized attorney of the Holder) to the Depositary
at its Principal Office for the purpose of effecting a transfer thereof,
(ii) this ADR has been properly endorsed or is accompanied by proper
instruments of transfer (including signature guarantees in accordance with
standard securities industry practice), (iii) this ADR has been duly
stamped (if required by the laws of the State of New York or of the United
States), and (iv) all applicable fees and charges of, and expenses
incurred by, the Depositary and all applicable taxes and governmental charges
(as are set forth in Section 5.9 of, and Exhibit B to, the Deposit Agreement)
have been paid, subject, however, in each case, to the terms and conditions
of this ADR, of the Deposit Agreement and of applicable law, in each case as in
effect at the time thereof.

 

A-3

 

The Registrar
shall register the split-up or combination of this ADR (and of the ADSs
represented hereby) on the books maintained for such purpose and the Depositary
shall (x) cancel this ADR and execute new ADRs for the number of ADSs
requested, but in the aggregate not exceeding the number of ADSs evidenced by
this ADR (when canceled), (y) cause the Registrar to countersign such new
ADRs, and (z) Deliver such new ADRs to or upon the order of the Holder
thereof, if each of the following conditions has been satisfied:  (i) this ADR has been duly Delivered by
the Holder (or by a duly authorized attorney of the Holder) to the Depositary
at its Principal Office for the purpose of effecting a split-up or combination
hereof, and (ii) all applicable fees and charges of, and expenses incurred
by, the Depositary and all applicable taxes and government charges (as are set
forth in Section 5.9 of, and Exhibit B to, the Deposit Agreement) have been
paid, subject,
however, in each case, to the terms and conditions of this ADR, of
the Deposit Agreement and of applicable law, in each case as in effect at the
time thereof.

 

(4)           Pre-Conditions to Registration, Transfer, Etc.  As a condition precedent to the execution
and delivery, the registration of issuance, transfer, split-up, combination or
surrender, of any ADR, the delivery of any distribution thereon, or the
withdrawal of any Deposited Securities, the Depositary or the Custodian may
require (i) payment from the depositor of Shares or presenter of ADSs or
of an ADR of a sum sufficient to reimburse it for any tax or other governmental
charge and any stock transfer or registration fee with respect thereto
(including any such tax or charge and fee with respect to Shares being
deposited or withdrawn) and payment of any applicable fees and charges of the
Depositary as provided in the Deposit Agreement and in this ADR, (ii) the
production of proof satisfactory to it as to the identity and genuineness of
any signature or any other matters contemplated in the Deposit Agreement, and
(iii) compliance with (A) any laws or governmental regulations
relating to the execution and delivery of ADRs or ADSs or to the withdrawal of
Deposited Securities and (B) such reasonable regulations as the Depositary
or the Company may establish consistent with the provisions of this ADR and the
Deposit Agreement and applicable law.

 

The issuance of
ADSs against deposits of Shares generally or against deposits of particular
Shares may be suspended, or the deposit of particular Shares may be refused, or
the registration of transfer of ADRs in particular instances may be refused, or
the registration of transfer of ADRs generally may be suspended, during any
period when the transfer books of the Company, the Depositary, a Registrar or
the Share Registrar are closed or if any such action is deemed necessary or
advisable by the Depositary or the Company, in good faith, at any time or from
time to time because of any requirement of law, any government or governmental
body or commission or any securities exchange upon which the Shares or ADSs are
listed, or under any provision of the Deposit Agreement or this ADR, or under any
provision of, or governing, the Deposited Securities, or because of a meeting
of shareholders of the Company or for any other reason, subject in all cases to
paragraph (24) hereof.  Notwithstanding
any provision of the Deposit Agreement or this ADR to the contrary, Holders are
entitled to surrender outstanding ADSs to withdraw the Deposited Securities at
any time subject only to (i) temporary delays caused by closing the
transfer books of the Depositary or the Company or the deposit of Shares in connection
with voting at a shareholders’ meeting or the payment of dividends,
(ii) the payment of fees, taxes and similar charges, (iii) compliance
with any U.S. or foreign laws or governmental regulations relating to the ADRs
or to the withdrawal of the Deposited Securities, 

 

A-4

 

and (iv) other
circumstances specifically contemplated by Instruction I.A.(l) of the General
Instructions to Form F-6 (as such General Instructions may be amended from time
to time).

 

(5)           Compliance With Information Requests.  Notwithstanding any other provision of the
Deposit Agreement or this ADR, each Holder and Beneficial Owner of the ADSs
represented hereby agrees to comply with requests from the Company pursuant to
applicable United Kingdom law and any stock exchange on which Shares or ADSs
are, or will be, registered, traded or listed, or the Articles of Association
of the Company, which are made to provide information, inter alia, as to the
capacity in which such Holder or Beneficial Owner owns ADSs (and Shares, as the
case may be) and regarding the identity of any other person(s) interested in
such ADSs and the nature of such interest and various other matters, whether or
not they are Holders and/or Beneficial Owners at the time of such request.

 

(6)           Ownership Restrictions.  Notwithstanding any provision of this ADR or
of the Deposit Agreement, the Company may restrict transfers of the Shares
where such transfer might result in ownership of Shares exceeding limits
imposed by applicable law or the Articles of Association of the Company.  The Company may also restrict, in such
manner as it deems appropriate, transfers of ADSs where such transfer may
result in the total number of Shares represented by the ADSs owned by a single
Holder or Beneficial Owner to exceed any such limits.  The Company may, in its sole discretion but subject to applicable
law, instruct the Depositary to take action with respect to the ownership
interest of any Holder or Beneficial Owner in excess of the limits set forth in
the preceding sentence, including but not limited to, the imposition of
restrictions on the transfer of ADSs, the removal or limitation of voting
rights or a mandatory sale or disposition on behalf of a Holder or Beneficial
Owner of the Shares represented by the ADSs held by such Holder or Beneficial
Owner in excess of such limitations, if and to the extent such disposition is
permitted by applicable law and the Articles of Association of the Company.

 

(7)           Liability of Holder for Taxes and Other Charges.  Any tax or other governmental charge payable
with respect to any ADR or any Deposited Securities or ADSs shall be payable by
the Holders and Beneficial Owners to the Depositary.  The Company, the Custodian and/or Depositary may withhold or
deduct from any distributions made in respect of Deposited Securities and may
sell for the account of a Holder and/or Beneficial Owner any or all of the
Deposited Securities and apply such distributions and sale proceeds in payment
of such taxes (including applicable interest and penalties) or charges, the
Holder and the Beneficial Owner hereof remaining liable for any
deficiency.  The Custodian may refuse
the deposit of Shares and the Depositary may refuse to issue ADSs, to deliver
ADRs, register the transfer, split-up or combination of ADRs and (subject to
paragraph (24) hereof) the withdrawal of Deposited Securities until payment in
full of such tax, charge, penalty or interest is received.  Every Holder and Beneficial Owner agrees to
indemnify the Depositary, the Company, the Custodian, and any of their agents,
officers, employees and Affiliates for, and hold each of them harmless from,
any claims with respect to taxes (including applicable interest and penalties
thereon) arising from any tax benefit obtained for such Holder and/or
Beneficial Owner.

 

(8)           Representations and Warranties of Depositors.  Each person depositing Shares under the
Deposit Agreement shall be deemed thereby to represent and warrant that
(i) such Shares and the certificates therefor are duly authorized, validly
issued, fully paid, non-assessable 

 

A-5

 

and legally obtained by
such person, (ii) all preemptive (and similar) rights, if any, with
respect to such Shares have been validly waived or exercised, (iii) the
person making such deposit is duly authorized so to do, (iv) the Shares
presented for deposit are free and clear of any lien, encumbrance, security
interest, charge, mortgage or adverse claim, (v) the Shares presented for
deposit are not, and the ADSs issuable upon such deposit will not be,
Restricted Securities, and (vi) the Shares presented for deposit have not
been stripped of any rights or entitlements. 
Such representations and warranties shall survive the deposit and
withdrawal of Shares, the issuance and cancellation of ADSs in respect thereof
and the transfer of such ADSs.  If any
such representations or warranties are false in any way, the Company and the
Depositary shall be authorized, at the cost and expense of the person depositing
Shares, to take any and all actions necessary to correct the consequences
thereof.

 

(9)           Filing Proofs, Certificates and Other Information.  Any person presenting Shares for deposit,
and any Holder and any Beneficial Owner may be required, and every Holder and
Beneficial Owner agrees, from time to time to provide to the Depositary and the
Custodian such proof of citizenship or residence, taxpayer status, payment of
all applicable taxes or other governmental charges, exchange control approval,
legal or beneficial ownership of ADSs and Deposited Securities, compliance with
applicable laws and the terms of the Deposit Agreement and the provisions of,
or governing, the Deposited Securities, to execute such certifications and to
make such representations and warranties, and to provide such other information
and documentation (or, in the case of Shares in registered form presented for
deposit, such information relating to the registration of Shares on the books
of the Shares Registrar) as the Depositary or the Custodian may deem necessary
or proper or as the Company may reasonably require by written request to the
Depositary consistent with its obligations under the Deposit Agreement.  The Depositary and the Registrar, as
applicable, may withhold the execution or delivery or registration of transfer
of any ADR or the distribution or sale of any dividend or other distribution of
rights or of the proceeds thereof or, to the extent not limited by paragraph
(24) hereof, the delivery of any Deposited Securities until such proof or other
information is filed or such certifications are executed, or such
representations are made or such information and documentation are provided, in
each case to the Depositary’s, the Registrar’s and the Company’s satisfaction.

 

(10)         Charges of Depositary.  The Depositary shall charge the following
fees:

 

(i)                                     Issuance Fee: 
to any person depositing Shares or to whom ADSs are issued upon the
deposit of Shares, a fee not in excess of U.S. $5.00 per 100 ADSs (or portion
thereof) so issued under the terms of the Deposit Agreement (excluding
issuances pursuant to paragraphs (iii) and (v) below);

 

(ii)                                  Cancellation Fee: 
to any person surrendering ADSs for cancellation and withdrawal of
Deposited Securities, a fee not in excess of U.S. $5.00 per 100 ADSs (or
portion thereof) so surrendered;

 

(iii)                               Dividend Fee: 
No Fee shall be payable upon distribution of (a) cash dividends or
(b) ADSs pursuant to stock dividends (or other free distributions of
stock) so long as the charging of such fee is prohibited by 

 

A-6

 

                                                the exchange upon which the ADSs are
listed.  If charging of such fees is not
prohibited, the fees specified in (i) above shall be payable in respect of
ADS distributions pursuant to stock dividends (or other free distributions of
stock) and the fees specified in (iv) below shall be payable in respect of
distributions of cash;

 

(iv)                              Cash Distribution Fee: 
to any Holder of ADRs, a fee not in excess of U.S. $2.00 per 100 ADSs
(or portion thereof) held for the distribution of cash proceeds (i.e.,
upon the sale of rights and other entitlements);

 

(v)                                 Rights Exercise Fee: 
to any Holder of ADRs, a fee not in the excess of U.S. $5.00 per 100
ADSs (or portion thereof) issued upon the exercise of rights to purchase
additional ADSs;

 

(vi)                              Other Distribution Fee: 
to any Holder of ADRs receiving a distribution of securities other than
ADSs or rights to purchase additional ADSs, a fee not in excess of U.S. $5.00
per unit of 100 securities (or fraction thereof) distributed;

 

(vii)                           Annual Depositary Services Fee: 
to any Holder of ADRs, a fee not in excess of U.S. $2.00 per 100 ADSs
(or fraction thereof) held on the last day of each calendar year, except to the
extent of any cash dividend fee(s) charged under paragraph (iii) above during
that calendar year.

 

In addition,
Holders, Beneficial Owners, persons depositing Shares and persons surrendering
ADSs for cancellation and withdrawal of Deposited Securities will be required
to pay the following charges:

 

(i)                                     taxes (including applicable interest and
penalties) and other governmental charges;

 

(ii)                                  such registration fees as may from time
to time be in effect for the registration of Shares or other Deposited
Securities on the share register and applicable to transfers of Shares or other
Deposited Securities to or from the name of the Custodian, the Depositary or
any nominees upon the making of deposits and withdrawals, respectively;

 

(iii)                               such cable, telex and facsimile
transmission and delivery expenses as are expressly provided in the Deposit
Agreement to be at the expense of the person depositing or withdrawing Shares
or Holders and Beneficial Owners of ADSs;

 

(iv)                              the expenses and charges incurred by the
Depositary in the conversion of foreign currency;

 

(v)                                 such fees and expenses as are incurred by
the Depositary in connection with compliance with exchange control regulations
and other regulatory 

 

A-7

 

                                                requirements applicable to Shares,
Deposited Securities, ADSs and ADRs; and

 

(vi)                              the fees and expenses incurred by the
Depositary, the Custodian, or any nominee in connection with the delivery or
servicing of Deposited Securities.

 

Any other charges
and expenses of the Depositary under the Deposit Agreement will be paid by the
Company upon agreement between the Depositary and the Company.  All fees and charges may, at any time and
from time to time, be changed by agreement between the Depositary and Company
but, in the case of fees and charges payable by Holders or Beneficial Owners,
only in the manner contemplated by paragraph (22) of this ADR.  The Depositary will provide, without charge,
a copy of its latest fee schedule to anyone upon request.  The charges and expenses of the Custodian
are for the sole account of the Depositary.

 

(11)         Title to ADRs.  It is a condition of this ADR, and every
successive Holder of this ADR by accepting or holding the same consents and
agrees, that title to this ADR (and to each ADS evidenced hereby) shall be
transferable upon the same terms as a certificated security under the laws of
the State of New York, provided that the ADR has been properly endorsed
or is accompanied by proper instruments of transfer.  Notwithstanding any notice to the contrary, the Depositary and
the Company may deem and treat the Holder of this ADR (that is, the person in
whose name this ADR is registered on the books of the Depositary) as the
absolute owner thereof for all purposes. 
Neither the Depositary nor the Company shall have any obligation nor be
subject to any liability under the Deposit Agreement or this ADR to any holder
of this ADR or any Beneficial Owner unless such holder is the Holder of this
ADR registered on the books of the Depositary or, in the case of a Beneficial
Owner, such Beneficial Owner or the Beneficial Owner’s representative is the
Holder registered on the books of the Depositary.

 

(12)         Validity of ADR.  The Holder(s) of this ADR (and the ADSs
represented hereby) shall not be entitled to any benefits under the Deposit
Agreement or be valid or enforceable for any purpose against the Depositary or
the Company unless this ADR has been (i) dated, (ii) signed by the
manual or facsimile signature of a duly-authorized signatory of the Depositary,
(iii) countersigned by the manual or facsimile signature of a
duly-authorized signatory of the Registrar, and (iv) registered in the
books maintained by the Registrar for the registration of issuances and
transfers of ADRs.  ADRs bearing the
facsimile signature of a duly-authorized signatory of the Depositary or the
Registrar, who at the time of signature was a duly authorized signatory of the
Depositary or the Registrar, as the case may be, shall bind the Depositary,
notwithstanding the fact that such signatory has ceased to be so authorized prior
to the delivery of such ADR by the Depositary.

 

(13)         Available Information; Reports; Inspection of Transfer
Books.  The Company
furnishes the Commission with certain public reports and documents required by
foreign law or otherwise under Rule 12g3-2(b) under the Exchange Act.  These reports and documents can be inspected
and copied at public reference facilities maintained by the Commission located
at Judiciary Plaza, 450 Fifth Street, N.W., 

 

A-8

 

Washington, D.C. 20549
and at the Principal Office of the Depositary. 
These reports and documents can be inspected and copied at the public
reference facilities maintained by the Commission located at Judiciary Plaza,
450 Fifth Street, N.W., Washington D.C. 20549. 
The Depositary shall make available for inspection by Holders at its
Principal Office any reports and communications, including any proxy soliciting
materials, received from the Company which are both (a) received by the
Depositary, the Custodian, or the nominee of either of them as the holder of
the Deposited Securities and (b) made generally available to the holders
of such Deposited Securities by the Company.

 

The Registrar
shall keep books for the registration of issuances and transfers of ADRs which
at all reasonable times shall be open for inspection by the Company and by the
Holders of such ADRs, provided that such inspection shall not be, to the
Registrar’s knowledge, for the purpose of communicating with Holders of such
ADRs in the interest of a business or object other than the business of the
Company or other than a matter related to the Deposit Agreement or the ADRs.

 

The Registrar may
close the transfer books with respect to the ADRs, at any time or from time to
time, when deemed necessary or advisable by it in good faith in connection with
the performance of its duties hereunder, or at the reasonable written request
of the Company subject, in all cases, to paragraph (24) hereof.

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CITIBANK, N.A.

  Transfer Agent and
  Registrar

  	
   

  	
  CITIBANK, N.A.

  as Depositary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  	
  Authorized Signatory

  

 

The address of the
Principal Office of the Depositary is 388 Greenwich Street, New York, New York
10013, U.S.A.

 

A-9

 

[FORM OF REVERSE OF ADR]

 

SUMMARY OF CERTAIN
ADDITIONAL PROVISIONS

 

OF THE DEPOSIT AGREEMENT

 

(14)         Dividends and Distributions in Cash, Shares, etc.  Whenever the Depositary receives
confirmation from the Custodian of receipt of any cash dividend or other cash
distribution on any Deposited Securities, or receives proceeds from the sale of
any Deposited Securities or of any entitlements held in respect of Deposited
Securities under the terms of the Deposit Agreement, the Depositary will
(i) if at the time of receipt thereof any amounts received in a Foreign
Currency can, in the judgment of the Depositary (upon the terms of the Deposit
Agreement), be converted on a practicable basis into Dollars transferable to
the United States, promptly convert or cause to be converted such cash
dividend, distribution or proceeds into Dollars (upon the terms of the Deposit
Agreement), (ii) if applicable, establish the ADS Record Date upon the
terms described in Section 4.9 of the Deposit Agreement, and (iii) distribute
promptly the amount thus received (net of (a) applicable fees and charges
of, and expenses incurred by, the Depositary and (b) taxes withheld) to
the Holders entitled thereto as of the ADS Record Date in proportion to the
number of ADSs held as of the ADS Record Date. 
The Depositary shall distribute only such amount, however, as can be
distributed without attributing to any Holder a fraction of one cent, and any
balance not so distributed shall be held by the Depositary (without liability
for interest thereon) and shall be added to and become part of the next sum
received by the Depositary for distribution to Holders of ADSs then outstanding
at the time of the next distribution. 
If the Company, the Custodian or the Depositary is required to withhold
and does withhold from any cash dividend or other cash distribution in respect
of any Deposited Securities an amount on account of taxes, duties or other
governmental charges, the amount distributed to Holders on the ADSs
representing such Deposited Securities shall be reduced accordingly.  Such withheld amounts shall be forwarded by
the Company, the Custodian or the Depositary to the relevant governmental
authority.

 

If any
distribution upon any Deposited Securities consists of a dividend in, or free
distribution of, Shares, the Company shall cause such Shares to be deposited
with the Custodian and registered, as the case may be, in the name of the
Depositary, the Custodian or their respective nominees.  Upon receipt of confirmation of the deposit
from the Custodian, the Depositary shall, subject to and in accordance with the
Deposit Agreement, establish the ADS Record Date and either (i) the
Depositary shall distribute to the Holders as of the ADS Record Date in
proportion to the number of ADSs held as of the ADS Record Date, additional
ADSs, which represent in aggregate the number of Shares received as such
dividend, or free distribution, subject to the terms of the Deposit Agreement
(including, without limitation, (a) the applicable fees and charges of,
and expenses incurred by, the Depositary and (b) taxes), or (ii) if
additional ADSs are not so distributed, each ADS issued and outstanding after
the ADS Record Date shall, to the extent permissible by law, thenceforth also
represent rights and interest in the additional integral number of Shares
distributed upon the Deposited Securities represented thereby (net of
(a) the applicable fees and charges of, and expenses incurred by, the
Depositary, and (b) taxes).  In lieu
of delivering fractional ADSs, the Depositary shall sell the number of 

 

A-10

 

Shares or ADSs, as the
case may be, represented by the aggregate of such fractions and distribute the
net proceeds upon the terms set forth in the Deposit Agreement.

 

In the event that
the Depositary determines that any distribution in property (including Shares)
is subject to any tax or other governmental charges which the Depositary is
obligated to withhold, or, if the Company in the fulfillment of its obligations
under the Deposit Agreement, has furnished an opinion of U.S. counsel
determining that Shares must be registered under the Securities Act or other
laws in order to be distributed to Holders (and no such registration statement
has been declared effective), the Depositary may dispose of all or a portion of
such property (including Shares and rights to subscribe therefor) in such
amounts and in such manner, including by public or private sale, as the
Depositary deems necessary and practicable and the Depositary shall distribute
the net proceeds of any such sale (after deduction of (a) taxes and
(b) fees and charges of, and the expenses incurred by, the Depositary) to
Holders entitled thereto upon the terms of the Deposit Agreement.  The Depositary shall hold and/or distribute
any unsold balance of such property in accordance with the provisions of the
Deposit Agreement.

 

Upon timely
receipt of a notice indicating that the Company wishes an elective distribution
to be made available to Holders of ADSs upon the terms described in the Deposit
Agreement, the Company and the Depositary shall determine whether such
distribution is lawful and reasonably practicable.  If so, the Depositary shall, subject to the terms and conditions
of the Deposit Agreement, establish an ADS Record Date according to paragraph
(16) and establish procedures to enable the Holder hereof to elect to receive
the proposed distribution in cash or in additional ADSs.  If a Holder elects to receive the
distribution in cash, the distribution shall be made as in the case of a
distribution in cash.  If the Holder
hereof elects to receive the distribution in additional ADSs, the distribution
shall be made as in the case of a distribution in Shares upon the terms
described in the Deposit Agreement.  If
such elective distribution is not reasonably practicable or if the Depositary
did not receive satisfactory documentation set forth in the Deposit Agreement,
the Depositary shall, to the extent permitted by law, distribute to Holders, on
the basis of the same determination as is made in England and Wales in respect
of the Shares for which no election is made, either (x) cash or
(y) additional ADSs representing such additional Shares, in each case,
upon the terms described in the Deposit Agreement.  Nothing herein or in the Deposit Agreement shall obligate the
Depositary to make available to the Holder hereof a method to receive the
elective distribution in Shares (rather than ADSs).  There can be no assurance that the Holder hereof will be given
the opportunity to receive elective distributions on the same terms and
conditions as the holders of Shares.

 

Upon timely
receipt by the Depositary of a notice indicating that the Company wishes rights
to subscribe for additional Shares to be made available to Holders of ADSs, the
Depositary upon consultation with the Company, shall determine, whether it is
lawful and reasonably practicable to make such rights available to the
Holders.  The Depositary shall make such
rights available to any Holders only if (i) the Company shall have timely
requested that such rights be made available to Holders, (ii) the
Depositary shall have received the documentation contemplated in the Deposit
Agreement, and (iii) the Depositary shall have determined that such
distribution of rights is reasonably practicable.  If such conditions are not satisfied, the Depositary shall sell
the rights as described below.  In the
event all conditions set forth above are satisfied, the Depositary shall
establish an ADS Record Date (upon the terms described in the Deposit
Agreement) and establish procedures (x) to distribute rights to purchase
additional ADSs 

 

A-11

 

(by means of warrants or
otherwise), (y) to enable the Holders to exercise the rights (upon payment
of the subscription price and of the applicable (a) fees and charges of,
and expenses incurred by, the Depositary and (b) taxes), and (z) to
deliver ADSs upon the valid exercise of such rights.  Nothing herein or in the Deposit Agreement shall obligate the
Depositary to make available to the Holders a method to exercise rights to
subscribe for Shares (rather than ADSs). 
If (i) the Company does not timely request the Depositary to make
the rights available to Holders or if the Company requests that the rights not
be made available to Holders, (ii) the Depositary fails to receive the
documentation required by the Deposit Agreement or determines it is not
reasonably practicable to make the rights available to Holders, or
(iii) any rights made available are not exercised and appear to be about
to lapse, the Depositary shall determine whether it is lawful and reasonably
practicable to sell such rights, in a riskless principal capacity, at such
place and upon such terms (including public and private sale) as it may deem
practicable.  The Depositary shall, upon
such sale, convert and distribute proceeds of such sale (net of applicable
(a) fees and charges of, and expenses incurred by, the Depositary and
(b) taxes) upon the terms hereof and of the Deposit Agreement.  If the Depositary is unable to make any
rights available to Holders or to arrange for the sale of the rights upon the
terms described above, the Depositary shall allow such rights to lapse.  The Depositary shall not be responsible for
(i) any failure to determine that it may be lawful or practicable to make
such rights available to Holders in general or any Holders in particular,
(ii) any foreign exchange exposure or loss incurred in connection with
such sale or exercise, or (iii) the content of any materials forwarded to
the ADR Holders on behalf of the Company in connection with the rights
distribution.

 

Notwithstanding
anything herein or in the Deposit Agreement to the contrary, if registration
(under the Securities Act or any other applicable law) of the rights or the
securities to which any rights relate may be required in order for the Company
to offer such rights or such securities to Holders and to sell the securities
represented by such rights, the Depositary will not distribute such rights to
the Holders (i) unless and until a registration statement under the
Securities Act (or other applicable law) covering such offering is in effect or
(ii) unless the Company furnishes the Depositary opinion(s) of counsel for
the Company in the United States and counsel to the Company in any other
applicable country in which rights would be distributed, in each case
satisfactory to the Depositary, to the effect that the offering and sale of
such securities to Holders and Beneficial Owners are exempt from, or do not require
registration under, the provisions of the Securities Act or any other
applicable laws.  In the event that the
Company, the Depositary or the Custodian shall be required to withhold and does
withhold from any distribution of property (including rights) an amount on
account of taxes or other governmental charges, the amount distributed to the
Holders of ADSs representing such Deposited Securities shall be reduced
accordingly.  In the event that the
Depositary determines that any distribution in property (including Shares and
rights to subscribe therefor) is subject to any tax or other governmental
charges which the Depositary is obligated to withhold, the Depositary may
dispose of all or a portion of such property (including Shares and rights to
subscribe therefor) in such amounts and in such manner, including by public or
private sale, as the Depositary deems necessary and practicable to pay any such
taxes or charges.

 

There can be no
assurance that Holders generally, or any Holder in particular, will be given
the opportunity to exercise rights on the same terms and conditions as the
holders of Shares or to exercise such rights. 
Nothing herein or in the Deposit Agreement shall obligate the 

 

A-12

 

Company to file any
registration statement in respect of any rights or Shares or other securities
to be acquired upon the exercise of such rights.

 

Upon receipt of a
notice indicating that the Company wishes property other than cash, Shares or
rights to purchase additional Shares, to be made to Holders of ADSs, the
Depositary shall determine whether such distribution to Holders is lawful and
reasonably practicable.  The Depositary
shall not make such distribution unless (i) the Company shall have
requested the Depositary to make such distribution to Holders, (ii) the
Depositary shall have received the documentation contemplated in the Deposit
Agreement, and (iii) the Depositary shall have determined that such
distribution is reasonably practicable. 
Upon satisfaction of such conditions, the Depositary shall distribute
the property so received to the Holders of record, as of the ADS Record Date,
in proportion to the number of ADSs held by them respectively and in such
manner as the Depositary may deem practicable for accomplishing such
distribution (i) upon receipt of payment or net of the applicable fees and
charges of, and expenses incurred by, the Depositary, and (ii) net of any
taxes withheld.  The Depositary may dispose
of all or a portion of the property so distributed and deposited, in such
amounts and in such manner (including public or private sale) as the Depositary
may deem practicable or necessary to satisfy any taxes (including applicable
interest and penalties) or other governmental charges applicable to the distribution.

 

If the conditions
above are not satisfied, the Depositary shall sell or cause such property to be
sold in a public or private sale, at such place or places and upon such terms
as it may deem practicable and shall (i) cause the proceeds of such sale,
if any, to be converted into Dollars and (ii) distribute the proceeds of
such conversion received by the Depositary (net of applicable (a) fees and
charges of, and expenses incurred by, the Depositary and (b) taxes) to the
Holders as of the ADS Record Date upon the terms hereof and of the Deposit
Agreement.  If the Depositary is unable
to sell such property, the Depositary may dispose of such property for the
account of the Holders in any way it deems reasonably practicable under the
circumstances.

 

(15)         Redemption.  Upon timely receipt of notice from the Company that it intends to
exercise its right of redemption in respect of any of the Deposited Securities,
and a satisfactory opinion of counsel, and upon determining that such proposed
redemption is practicable, the Depositary shall (to the extent practicable)
provide to each Holder a notice setting forth the Company’s intention to
exercise the redemption rights and any other particulars set forth in the
Company’s notice to the Depositary. 
Upon receipt of confirmation that the redemption has taken place and
that funds representing the redemption price have been received, the Depositary
shall convert, transfer, distribute the proceeds (net of applicable
(a) fees and charges of, and expenses incurred by, the Depositary, and
(b) taxes), retire ADSs and cancel ADRs upon delivery of such ADSs by
Holders thereof upon the terms of the Deposit Agreement.  If less than all outstanding Deposited
Securities are redeemed, the ADSs to be retired will be selected by lot or on a
pro rata basis, as may be determined by the Depositary.  The redemption price per ADS shall be the
dollar equivalent of the per share amount received by the Depositary (adjusted
to reflect the ADS(s)-to-Share(s) ratio) upon the redemption of the Deposited
Securities represented by ADSs (subject to the terms of the Deposit Agreement
and the applicable fees and charges of, and expenses incurred by, the
Depositary, and taxes) multiplied by the number of Deposited Securities
represented by each ADS redeemed.

 

A-13

 

(16)         Fixing of ADS Record Date.  Whenever the Depositary shall receive notice
of the fixing of a record date by the Company for the determination of holders
of Deposited Securities entitled to receive any distribution (whether in cash,
Shares, rights or other distribution), or whenever for any reason the
Depositary causes a change in the number of Shares that are represented by each
ADS, or whenever the Depositary shall receive notice of any meeting of, or
solicitation of consents or proxies of, holders of Shares or other Deposited
Securities, or whenever the Depositary shall find it necessary or convenient in
connection with the giving of any notice, solicitation of any consent or any other
matter, the Depositary shall fix a record date (“ADS Record Date”) for the
determination of the Holders of ADRs who shall be entitled to receive such
distribution, to give instructions for the exercise of voting rights at any
such meeting, to give or withhold such consent, to receive such notice or
solicitation or to otherwise take action, or to exercise the rights of Holders
with respect to such changed number of Shares represented by each ADS.  Subject to applicable law and the terms and
conditions of this ADR and the Deposit Agreement, only the Holders of ADRs at
the close of business in New York on such ADS Record Date shall be entitled to
receive such distributions, to give such instructions, to receive such notice
or solicitation, or otherwise take action.

 

(17)         Voting of Deposited Securities.  As soon as practicable after receipt of
notice of any meeting at which the holders of Deposited Securities are entitled
to vote, or of solicitation of consents or proxies from holders of Deposited
Securities, the Depositary shall fix the ADS Record Date in respect of such
meeting or solicitation of such consent or proxy.  The Depositary shall, if requested by the Company in writing in a
timely manner (the Depositary having no obligation to take any further action
if the request shall not have been received by the Depositary at least thirty
(30) days prior to the date of such vote or meeting), at the Company’s expense
and provided no U.S. legal prohibitions exist, distribute to Holders as of the
ADS Record Date:  (a) such notice
of meeting or solicitation of consent or proxies, (b) a statement that the
Holders at the close of business on the ADS Record Date will be entitled,
subject to any applicable law, the provisions of the Deposit Agreement, the
Company’s Articles of Association and the provisions of or governing Deposited
Securities (which provisions, if any, shall be summarized in pertinent part by
the Company), to instruct the Depositary as to the exercise of the voting
rights, if any, pertaining to the Deposited Securities represented by such
Holder’s ADSs and (c) a brief statement as to the manner in which such
voting instructions may be given. 
Voting instructions may be given only in respect of a number of ADSs
representing an integral number of Deposited Securities.  Upon the timely receipt of voting
instructions from a Holder of ADSs as of the ADS Record Date in the manner
specified by the Depositary, the Depositary shall endeavor, insofar as
practicable and permitted under applicable law and the provisions of the
Deposit Agreement, the Articles of Association of the Company and the
provisions of the Deposited Securities, to vote, or cause the Custodian to
vote, the Deposited Securities represented by such Holder’s ADSs in accordance
with such instructions.

 

Neither the
Depositary nor the Custodian shall under any circumstances exercise any
discretion as to voting and neither the Depositary nor the Custodian shall
vote, attempt to exercise the right to vote, or in any way make use of, for
purposes of establishing a quorum or otherwise the Deposited Securities
represented by ADSs, except pursuant to and in accordance with the voting
instructions timely received from Holders or as otherwise contemplated
herein.  If the Depositary timely
receives voting instructions from a Holder which fail to specify the manner in
which the Depositary is to vote the Deposited Securities represented by such
Holder’s 

 

A-14

 

ADSs, the Depositary will
deem such Holder (unless otherwise specified in the notice distributed to
Holders) to have instructed the Depositary to vote in favor of the items set
forth in such instructions.  Deposited
Securities represented by ADSs for which no timely voting instructions are
received by the Depositary from the Holder shall not be voted.  Notwithstanding anything else contained
herein, the Depositary shall, if so requested in writing by the Company,
represent all Deposited Securities (whether or not voting instructions have
been received in respect of such Deposited Securities from Holders as of the
ADS Record Date) for the sole purpose of establishing quorum at a meeting of
shareholders.  Notwithstanding anything
else contained in the Deposit Agreement or this ADR, the Depositary shall not
have any obligation to take any action with respect to any meeting, or
solicitation of consents or proxies, of holders of Deposited Securities if the
taking of such action would violate U.S. laws. 
The Company agrees to take any and all actions reasonably necessary to
enable Holders and Beneficial Owners to exercise the voting rights accruing to
the Deposited Securities and to deliver to the Depositary an opinion of U.S.
counsel addressing any actions requested to be taken if so requested by the
Depositary.  There can be no assurance
that Holders generally or any Holder in particular will receive the notice
described above with sufficient time to enable the Holder to return voting
instructions to the Depositary in a timely manner.

 

(18)         Changes Affecting Deposited Securities.  Upon any change in nominal or par value,
split-up, cancellation, consolidation or any other reclassification of
Deposited Securities, or upon any recapitalization, reorganization, merger or
consolidation or sale of assets affecting the Company or to which it is a
party, any securities which shall be received by the Depositary or the
Custodian in exchange for, or in conversion of or replacement of or otherwise
in respect of, such Deposited Securities shall, to the extent permitted by law,
be treated as new Deposited Securities under the Deposit Agreement, and the
ADRs shall, subject to the provisions of the Deposit Agreement and applicable
law, evidence ADSs representing the right to receive such additional
securities.  The Depositary may, with the
Company’s approval, and shall, if the Company shall so request, subject to the
terms of the Deposit Agreement and receipt of satisfactory documentation
contemplated by the Deposit Agreement, execute and deliver additional ADRs as
in the case of a stock dividend on the Shares, or call for the surrender of
outstanding ADRs to be exchanged for new ADRs, in either case, as well as in
the event of newly deposited Shares, with necessary modifications to the form
of ADR contained in this Exhibit A to the Deposit Agreement, specifically
describing such new Deposited Securities or corporate change.  Notwithstanding the foregoing, in the event
that any security so received may not be lawfully distributed to some or all
Holders, the Depositary may, with the Company’s approval, and shall if the
Company requests, subject to receipt of satisfactory legal documentation
contemplated in the Deposit Agreement, sell such securities at public or
private sale, at such place or places and upon such terms as it may deem proper
and may allocate the net proceeds of such sales (net of (a) fees and
charges of, and expenses incurred by, the Depositary and (b) taxes) for
the account of the Holders otherwise entitled to such securities and distribute
the net proceeds so allocated to the extent practicable as in the case of a
distribution received in cash pursuant to the Deposit Agreement.  The Depositary shall not be responsible for
(i) any failure to determine that it may be lawful or feasible to make
such securities available to Holders in general or any Holder in particular,
(ii) any foreign exchange exposure or loss incurred in connection with
such sale, or (iii) any liability to the purchaser of such securities.

 

A-15

 

(19)         Exoneration.  Neither the Depositary nor the Company shall be obligated to do
or perform any act which is inconsistent with the provisions of the Deposit
Agreement or incur any liability (i) if the Depositary or the Company
shall be prevented or forbidden from, or subjected to any civil or criminal
penalty or restraint on account of, or delayed in, doing or performing any act
or thing required by the terms of the Deposit Agreement and this ADR, by reason
of any provision of any present or future law or regulation of the United
States, the United Kingdom or any other country, or of any other governmental
authority or regulatory authority or stock exchange, or on account of possible
criminal or civil penalties or restraint, or by reason of any provision,
present or future, of the Articles of Association of the Company or any
provision of or governing any Deposited Securities, or by reason of any act of
God or war or other circumstances beyond its control (including, without
limitation, nationalization, expropriation, currency restrictions, work
stoppage, strikes, civil unrest, acts of terrorism, revolutions, rebellions,
explosions and computer failure), (ii) by reason of any exercise of, or
failure to exercise, any discretion provided for in the Deposit Agreement or in
the Articles of Association of the Company or provisions of or governing
Deposited Securities, (iii) for any action or inaction in reliance upon
the advice of or information from legal counsel, accountants, any person
presenting Shares for deposit, any Holder, any Beneficial Owner or authorized
representative thereof, or any other person believed by it in good faith to be
competent to give such advice or information, (iv) for the inability by a
Holder or Beneficial Owner to benefit from any distribution, offering, right or
other benefit which is made available to holders of Deposited Securities but is
not, under the terms of the Deposit Agreement, made available to Holders of
ADSs or (v) for any consequential or punitive damages for any breach of
the terms of the Deposit Agreement.  The
Depositary, its controlling persons, its agents, any Custodian and the Company,
its controlling persons and its agents may rely and shall be protected in
acting upon any written notice, request or other document believed by it to be
genuine and to have been signed or presented by the proper party or
parties.  No disclaimer of liability
under the Securities Act is intended by any provision of the Deposit Agreement
or this ADR.

 

(20)         Standard of Care.  The Company and the Depositary assume no
obligation and shall not be subject to any liability under the Deposit
Agreement or this ADR to any Holder(s) or Beneficial Owner(s), except that the
Company and Depositary agree to perform their respective obligations
specifically set forth in the Deposit Agreement and this ADR without negligence
or bad faith.  The Depositary and its
agents shall not be liable for any failure to carry out any instructions to
vote any of the Deposited Securities, or for the manner in which any vote is
cast or the effect of any vote, provided that any such action or
omission is in good faith and in accordance with the terms of this Deposit
Agreement.  The Depositary shall not
incur any liability for any failure to determine that any distribution or action
may be lawful or reasonably practicable, for the content of any information
submitted to it by the Company for distribution to the Holders or for any
inaccuracy of any translation thereof, for any investment risk associated with
acquiring an interest in the Deposited Securities, for the validity or worth of
the Deposited Securities or for any tax consequences that may result from the
ownership of ADSs, Shares or Deposited Securities, for the credit-worthiness of
any third party, for allowing any rights to lapse upon the terms of the Deposit
Agreement or for the failure or timeliness of any notice from the Company.

 

(21)         Resignation and Removal of the Depositary; Appointment
of Successor Depositary. 
The Depositary may at any time resign as Depositary under the Deposit
Agreement 

 

A-16

 

by written notice of
resignation delivered to the Company, such resignation to be effective on the
earlier of (i) the 60th day after delivery thereof to the Company, or
(ii) upon the appointment of a successor depositary and its acceptance of
such appointment as provided in the Deposit Agreement.  The Depositary may at any time be removed by
the Company by written notice of such removal, which removal shall be effective
on the earlier of (i) the 60th day after delivery thereof to the
Depositary, or (ii) upon the appointment of a successor depositary and its
acceptance of such appointment as provided in the Deposit Agreement.  In case at any time the Depositary acting
hereunder shall resign or be removed, the Company shall use its best efforts to
appoint a successor depositary, which shall be a bank or trust company having
an office in the Borough of Manhattan, the City of New York.  Every successor depositary shall execute and
deliver to its predecessor and to the Company an instrument in writing
accepting its appointment hereunder, and thereupon such successor depositary,
without any further act or deed (except as required by applicable law), shall
become fully vested with all the rights, powers, duties and obligations of its
predecessor.  The predecessor
depositary, upon payment of all sums due it and on the written request of the
Company, shall (i) execute and deliver an instrument transferring to such
successor all rights and powers of such predecessor hereunder (other than as
contemplated in the Deposit Agreement), (ii) duly assign, transfer and
deliver all right, title and interest to the Deposited Securities to such
successor, and (iii) deliver to such successor a list of the Holders of all
outstanding ADRs and such other information relating to ADRs and Holders
thereof as the successor may reasonably request.  Any such successor depositary shall promptly provide notice of
its appointment to such Holders.  Any
corporation into or with which the Depositary may be merged or consolidated
shall be the successor of the Depositary without the execution or filing of any
document or any further act.

 

(22)         Amendment/Supplement.  Subject to the terms and conditions of this
paragraph 22, the Deposit Agreement and applicable law, this ADR and any
provisions of the Deposit Agreement may at any time and from time to time be
amended or supplemented by written agreement between the Company and the
Depositary in any respect which they may deem necessary or desirable without
the prior written consent of the Holders or Beneficial Owners.  Any amendment or supplement which shall
impose or increase any fees or charges (other than the charges in connection
with foreign exchange control regulations, and taxes and other governmental
charges, delivery and other such expenses), or which shall otherwise materially
prejudice any substantial existing right of Holders or Beneficial Owners, shall
not, however, become effective as to outstanding ADRs until the expiration of thirty
(30) days after notice of such amendment or supplement shall have been given to
the Holders of outstanding ADRs.  The
parties hereto agree that any amendments or supplements which (i) are
reasonably necessary (as agreed by the Company and the Depositary) in order for
(a) the ADSs to be registered on Form F-6 under the Securities Act or
(b) the ADSs to be traded solely in electronic book-entry form and
(ii) do not in either such case impose or increase any fees or charges to
be borne by Holders, shall be deemed not to materially prejudice any
substantial rights of Holders or Beneficial Owners.  Every Holder and Beneficial Owner at the time any amendment or
supplement so becomes effective shall be deemed, by continuing to hold such
ADS(s), to consent and agree to such amendment or supplement and to be bound by
the Deposit Agreement and this ADR as amended or supplemented thereby.  In no event shall any amendment or
supplement impair the right of the Holder to surrender such ADR and receive
therefor the Deposited Securities represented thereby, except in order to
comply with mandatory provisions of applicable law.  Notwithstanding the foregoing, if any governmental body should
adopt new laws, rules or 

 

A-17

 

regulations which would
require an amendment of, or supplement to, the Deposit Agreement to ensure
compliance therewith, the Company and the Depositary may amend or supplement
the Deposit Agreement and this ADR at any time in accordance with such changed
laws, rules or regulations.  Such
amendment or supplement to the Deposit Agreement in such circumstances may
become effective before a notice of such amendment or supplement is given to
Holders or within any other period of time as required for compliance with such
laws, or rules or regulations.

 

(23)         Termination.  The Depositary shall, at any time at the written direction of the
Company, terminate the Deposit Agreement by providing notice of such
termination to the Holders of all ADRs then outstanding at least thirty (30)
days prior to the date fixed in such notice for such termination.  If sixty (60) days shall have expired after
(i) the Depositary shall have delivered to the Company a written notice of
its election to resign, or (ii) the Company shall have delivered to the
Depositary a written notice of the removal of the Depositary, and in either
case a successor depositary shall not have been appointed and accepted its
appointment as provided herein and in the Deposit Agreement, the Depositary may
terminate the Deposit Agreement by providing notice of such termination to the
Holders of all ADRs then outstanding at least thirty (30) days prior to the
date fixed for such termination.  On and
after the date of termination of the Deposit Agreement, the Holder will, upon
surrender of such Holders’ ADR(s) at the Principal Office of the Depositary,
upon the payment of the charges of the Depositary for the surrender of ADSs
referred to in paragraph (2) hereof and in the Deposit Agreement and subject to
the conditions and restrictions therein set forth, and upon payment of any
applicable taxes or governmental charges, be entitled to Delivery, to him or
upon his order, of the amount of Deposited Securities represented by such
ADR.  If any ADRs shall remain outstanding
after the date of termination of the Deposit Agreement, the Registrar
thereafter shall discontinue the registration of transfers of ADRs, and the
Depositary shall suspend the distribution of dividends to the Holders thereof,
and shall not give any further notices or perform any further acts under the
Deposit Agreement, except that the Depositary shall continue to collect
dividends and other distributions pertaining to Deposited Securities, shall
sell rights as provided in the Deposit Agreement, and shall continue to deliver
Deposited Securities, subject to the conditions and restrictions set forth in
the Deposit Agreement, together with any dividends or other distributions
received with respect thereto and the net proceeds of the sale of any rights or
other property, in exchange for ADRs surrendered to the Depositary (after
deducting, or charging, as the case may be, in each case the charges of the
Depositary for the surrender of a ADR, any expenses for the account of the
Holder in accordance with the terms and conditions of the Deposit Agreement and
any applicable taxes or governmental charges or assessments).  At any time after the expiration of six
months from the date of termination of the Deposit Agreement, the Depositary
may sell the Deposited Securities then held hereunder and may thereafter hold
uninvested the net proceeds of any such sale, together with any other cash then
held by it hereunder, in an unsegregated account, without liability for
interest for the pro rata benefit of the Holders whose ADRs have not
theretofore been surrendered.  After
making such sale, the Depositary shall be discharged from all obligations under
the Deposit Agreement with respect to the ADRs, the Deposited Securities and
the ADSs, except to account for such net proceeds and other cash (after
deducting, or charging, as the case may be, in each case, the charges of the
Depositary for the surrender of an ADR, any expenses for the account of the
Holder in accordance with the terms and conditions of the Deposit Agreement and
any applicable taxes or governmental charges or 

 

A-18

 

assessments).  Upon the termination of the Deposit
Agreement, the Company shall be discharged from all obligations under the
Deposit Agreement except as set forth in the Deposit Agreement.

 

(24)         Compliance with U.S. Securities Laws.  Notwithstanding any provisions in this ADR
or the Deposit Agreement to the contrary, the withdrawal or delivery of
Deposited Securities will not be suspended by the Company or the Depositary
except as would be permitted by Instruction I.A.(1) of the General Instructions
to the Form F-6 Registration Statement, as amended from time to time, under the
Securities Act.

 

(25)         Certain Rights of the Depositary; Limitations.  Subject to the further terms and provisions
of this paragraph (25), the Depositary, its Affiliates and their agents, on
their own behalf, may own and deal in any class of securities of the Company
and its Affiliates and in ADSs.  The
Depositary may issue ADSs against evidence of rights to receive Shares from the
Company, any agent of the Company or any custodian, registrar, transfer agent,
clearing agency or other entity involved in ownership or transaction records in
respect of the Shares.  Such evidence of
rights shall consist of written blanket or specific guarantees of ownership of
Shares.  In its capacity as Depositary,
the Depositary shall not lend Shares or ADSs; provided, however,
that the Depositary may (i) issue ADSs prior to the receipt of Shares
pursuant to Section 2.3 of the Deposit Agreement and (ii) deliver Shares
prior to the receipt of ADSs for withdrawal of Deposited Securities pursuant to
Section 2.7 of the Deposit Agreement, including ADSs which were issued under
(i) above but for which Shares may not have been received (each such
transaction a “Pre-Release Transaction”). 
The Depositary may receive ADSs in lieu of Shares under (i) above and
receive Shares in lieu of ADSs under (ii) above.  Each such Pre-Release Transaction will be (a) subject to a
written agreement whereby the person or entity (the “Applicant”) to whom ADSs
or Shares are to be delivered (w) represents that at the time of the
Pre-Release Transaction the Applicant or its customer owns the Shares or ADSs
that are to be delivered by the Applicant under such Pre-Release Transaction,
(x) agrees to indicate the Depositary as owner of such Shares or ADSs in
its records and to hold such Shares or ADSs in trust for the Depositary until
such Shares or ADSs are delivered to the Depositary or the Custodian,
(y) unconditionally guarantees to deliver to the Depositary or the
Custodian, as applicable, such Shares or ADSs and (z) agrees to any
additional restrictions or requirements that the Depositary deems appropriate,
(b) at all times fully collateralized with cash, U.S. government
securities or such other collateral as the Depositary deems appropriate,
(c) terminable by the Depositary on not more than five (5) business days’
notice and (d) subject to such further indemnities and credit regulations
as the Depositary deems appropriate. 
The Depositary will normally limit the number of ADSs and Shares
involved in such Pre-Release Transactions at any one time to thirty percent
(30%) of the ADSs outstanding (without giving effect to ADSs outstanding under
(i) above), provided, however, that the Depositary reserves the
right to change or disregard such limit from time to time as it deems
appropriate.  The Depositary may also
set limits with respect to the number of ADSs and Shares involved in Pre-Release
Transactions with any one person on a case by case basis as it deems
appropriate.  The Depositary may retain
for its own account any compensation received by it in conjunction with the
foregoing.  Collateral provided pursuant
to (b) above, but not earnings thereon, shall be held for the benefit of the
Holders (other than the Applicant).

 

A-19

 

(ASSIGNMENT AND TRANSFER SIGNATURE LINES)

 

FOR VALUE RECEIVED, the
undersigned Holder hereby sell(s), assign(s) and transfer(s) unto
                                                                     whose
taxpayer identification number is
                               
and whose address including postal zip code is
                              ,
the within ADR and all rights thereunder, hereby irrevocably constituting and
appointing
                                    
attorney-in-fact to transfer said ADR on the books of the Depositary with full
power of substitution in the premises.

 

	
  Dated

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE: The signature
  of the Holder to this assignment must correspond with the name as written
  upon the face of the within instrument in every particular, without
  alteration or enlargement or any change whatsoever.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If the endorsement be executed
  by an attorney, executor, administrator, trustee or guardian, the person
  executing the endorsement must give his/her full title in such capacity and
  proper evidence of authority to act in such capacity, if not on file with the
  Depositary, must be forwarded with this ADR.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNATURE GUARANTEED

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  All endorsements or
  assignments of ADRs must be guaranteed by a member of a Medallion Signature
  Program approved by the Securities Transfer Association, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Legends

  

 

The ADRs issued in respect of Partial Entitlement American
Depositary Shares shall bear the following legend on the face of the ADR:  “This ADR evidences ADSs representing  ‘partial entitlement’ preference Shares of
Prudential Public Limited Company and as such do not entitle the holders
thereof to the same per-share entitlement as other preference Shares (which are
‘full entitlement’ preference Shares) issued and outstanding at such time.  The ADSs represented by this ADR shall entitle
holders to distributions and entitlements identical to other ADSs when the
preference Shares represented by such ADSs become ‘full entitlement’ preference
Shares.”

 

A-20

 

EXHIBIT
B

 

FEE SCHEDULE

 

DEPOSITARY FEES AND RELATED CHARGES

 

All capitalized terms
used but not otherwise defined herein shall have the meaning given to such
terms in the Deposit Agreement.

 

I.                                         Depositary Fees

 

The Company, the
Holders, the Beneficial Owners and the persons depositing Shares or
surrendering ADSs for cancellation agree to pay the following fees of the
Depositary:

 

	
  Service

  	
   

  	
  Rate

  	
   

  	
  By Whom Paid

  
	
  (1)

  	
  Issuance of ADSs upon deposit of Shares (excluding
  issuances contemplated by paragraphs (3)(b) and (5) below).

  	
   

  	
  Up to U.S. $5.00 per 100 ADSs (or fraction thereof) issued.

  	
   

  	
  Person depositing Shares or person receiving ADSs.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
  Delivery of Deposited Securities against surrender of ADSs.

  	
   

  	
  Up to U.S. $5.00 per 100 ADSs (or fraction thereof)
  surrendered.

  	
   

  	
  Person surrendering ADSs for purpose of withdrawal of
  Deposited Securities or person to whom Deposited Securities are delivered.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
  Distribution of (a) cash dividends or (b) ADSs
  pursuant to stock dividends (or other free distribution of stock).

  	
   

  	
  No fee, to the extent prohibited by the exchange upon which
  the ADSs are listed. If the charging of such fee is not prohibited, the fees
  specified in (1) above shall be payable in respect of a distribution of ADSs
  pursuant to stock dividends (or other free distribution of stock) and the
  fees specified in (4) below shall be payable in respect of distributions of
  cash.

  	
   

  	
  Person to whom distribution is made.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
  Distribution of cash proceeds (i.e., upon sale of rights
  and other entitlements).

  	
   

  	
  Up to U.S. $2.00 per 100 ADSs (or fraction thereof) held.

  	
   

  	
  Person to whom distribution is made.

  

 

B-1

 

	
  (5)

  	
  Distribution of securities other than ADSs or rights to
  purchase additional ADSs (i.e., spin-off shares).

  	
   

  	
  Up to U.S. $5.00 per unit of 100 securities (or fraction
  thereof) distributed.

  	
   

  	
  Person to whom distribution is made.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (6)

  	
  Depositary Services.

  	
   

  	
  No fee, to the extent prohibited by the exchange upon which
  the ADSs are listed. If the charging of such fee is not prohibited, up to
  U.S. $2.00 per 100 ADSs (or fraction thereof) held as of the last day of each
  calendar year, except to the extent of any cash dividend fee(s) charged under
  paragraph (3)(a) above during the applicable calendar year.

  	
   

  	
  Person holding ADSs on last day of calendar year.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (7)

  	
  Distribution of ADSs pursuant to exercise of rights to
  purchase additional ADSs.

  	
   

  	
  Up to U.S. $5.00 per 100 ADSs (or fraction thereof) issued.

  	
   

  	
  Person to whom distribution is made.

  

 

II.                                     Charges

 

Holders,
Beneficial Owners, persons depositing Shares for deposit and persons
surrendering ADSs for cancellation and for the purpose of withdrawing Deposited
Securities shall be responsible for the following charges:

 

(i)                                     taxes (including applicable interest and
penalties) and other governmental charges;

 

(ii)                                  such registration fees as may from time
to time be in effect for the registration of Shares or other Deposited
Securities on the share register and applicable to transfers of Shares or other
Deposited Securities to or from the name of the Custodian, the Depositary or any
nominees upon the making of deposits and withdrawals, respectively;

 

(iii)                               such cable, telex and facsimile
transmission and delivery expenses as are expressly provided in the Deposit
Agreement to be at the expense of the person depositing or withdrawing Shares
or Holders and Beneficial Owners of ADSs;

 

(iv)                              the expenses and charges incurred by the
Depositary in the conversion of foreign currency;

 

(v)                                 such fees and expenses as are incurred by
the Depositary in connection with compliance with exchange control regulations
and other regulatory requirements applicable to Shares, Deposited Securities,
ADSs and ADRs; and

 

B-2

 

(vi)                              the fees and expenses incurred by the
Depositary, the Custodian or any nominee in connection with the servicing or
delivery of Deposited Securities.

 

B-3EXHIBIT
10.1

 

SETTLEMENT AGREEMENT

 

THIS SETTLEMENT AGREEMENT
(this “Agreement”) is made as of
this 15th day of July, 2004 (the “Effective
Date”), by and among (i) GOLF HOST RESORTS, INC., a Colorado
corporation (“Borrower”), (ii)
GOLF HOSTS, INC., a Florida corporation (“Guarantor”),
(iii) GOLF HOST MANAGEMENT, INC., a Delaware corporation (“GH Management”), (iv) GOLF HOST
CONDOMINIUM, INC., a Delaware corporation, (“Condo
Inc.”), (v) GOLF HOST CONDOMINIUM, LLC, a Delaware limited liability
company (“Condo
LLC” and, together with Condo Inc., “Condo Owner”),
(vi) GTA-IB, LLC, a Florida limited liability company (“GTA-IB”) and (vii) GOLF TRUST OF
AMERICA, L.P., a Delaware limited partnership (“Lender”). GTA-IB, Lender and GTA Parent (defined below) shall
be referred to collectively as “GTA”
in this Agreement.

 

THE PARTIES TO THIS
AGREEMENT enter into this Agreement on the basis of the following facts,
intentions and understandings:

 

A.                                   Borrower has executed that certain
Promissory Note (as it may have been extended, amended, restated, consolidated
or modified from time to time the “Note”),
dated as of June 20, 1997, payable to the order of Lender in the original
principal amount of Seventy-Eight Million Nine Hundred Seventy-Five Thousand
Dollars ($78,975,000), bearing interest and being payable as therein provided,
and maturing on June 19, 2027.

 

B.                                     The loan (the “Loan”) evidenced by the Note is evidenced and secured by,
among other things:

 

(1)                                  that certain Loan Agreement between
Lender and Borrower dated June 20, 1997 (as it may have been extended,
amended, restated, consolidated or modified from time to time the “Loan Agreement”);

 

(2)                                  that certain Mortgage, Security Agreement
and Fixture Filing with Assignment of Rents (as it may have been extended,
amended, restated, consolidated or modified from time to time, the “Mortgage”) dated as of June 20, 1997,
recorded in the land records (the “Land
Records”) of Pinellas County, Florida (“Pinellas County”), in Volume 9748 at Page 2292;

 

(3)                                  that certain Security Agreement (as it
may have been extended, amended, restated, consolidated or modified from time
to time, the “Security Agreement”)
dated as of June 20, 1997;

 

(4)                                  those certain UCC-1 financing statements
(as they may have been extended, amended, restated, consolidated or modified
from time to time the “Financing Statements”)
dated as of June 20, 1997, and filed (y) in the Land Records in Volume
9755 at Page 729, and (z) the offices of secretaries of state of Florida and
Colorado;

 

(5)                                  that certain Payment and Performance
Guaranty (as it may have been extended, amended, restated, consolidated or
modified from time to time, the “Guaranty”)
dated as of June 20, 1997, from Guarantor, an affiliate of Borrower, in
favor of Lender; and

 

 

(6)                                  that certain Pledge Agreement (as it may
have been extended, amended, restated, consolidated or modified from time to
time, the “Pledge Agreement”)
dated as of June 20, 1997, from Borrower in favor of Lender.

 

C.                                     The Note, the Loan Agreement, the
Mortgage, the Security Agreement, the Financing Statements, the Guaranty, the
Pledge Agreement and any and all other documents executed in connection with
the Loan are referred to herein collectively as the “Loan Documents”.

 

D.                                    Condo Inc. is an affiliate of
Borrower.  Condo LLC is an affiliate of
the Borrower and is the owner of the Condo Property (as defined below), which
Condo Property is subject to the lien of the Mortgage.

 

E.                                      Troon Golf LLC, a Delaware limited
liability company (“Troon”), is
currently the exclusive managing agent of the Innisbrook Golf Courses (as
defined below) pursuant to that certain Golf Course Management Agreement, dated
June 20, 1997, by and between Troon and Guarantor, which is currently
being extended on a month to month basis (“Current
Troon Agreement”).  Simultaneously herewith, Troon, Westin
Management Company South, a Delaware corporation (“Westin” or “Resort Manager”)
and GTA-IB (for certain limited purposes) are entering into that certain
Facility Management Agreement dated as of the date hereof, with respect to the
management of the Innisbrook Golf Courses from and after the Effective Date
(the “Troon Management Agreement”).

 

F.                                      Westin is currently the managing agent of
the Resort Property (as defined below) pursuant to that certain Management
Contract dated as of May 7, 1997, by and between Westin Hotel Company, a
Delaware corporation and an affiliate of Westin, and Borrower (“Current Management Contract”), which shall
terminate on the effective date of the Westin Management Agreement (defined
below).  Simultaneously herewith, Westin
and GTA Innisbrook, LLC, a Delaware limited liability company and an affiliate
of GTA-IB, are entering into that certain Management Agreement dated as of the
date hereof with respect to the management of the Resort Property from and
after the Effective Date (the “Westin
Management Agreement”).

 

G.                                     Borrower is in default of its obligations
under the Loan, inter  alia, by reason of Borrower’s failure to
make the payments due under the Loan on November 1, 2001, and all notice
and cure periods related thereto have expired. 
Lender accelerated the Loan by letter dated March 8, 2002.  Lender has the unrestricted right to
exercise its enforcement remedies with respect to the Loan and the Property (as
defined below).

 

H.                                    In order to avoid the expense and delay
of a foreclosure and other legal proceedings by Lender, Lender and Borrower
have agreed to attempt to settle all claims related to the Loan as provided in
this Agreement, and Borrower has agreed to convey to GTA-IB, an affiliate of Lender,
all of Borrower’s right, title and interest in and to the Property in
accordance with the terms and conditions of this Agreement.

 

I.                                         Borrower and Lender have agreed on the
Closing Date to reduce the carrying value of the Property (including, without
limitation, all tangible and intangible Property

 

2

 

and associated goodwill)
on their respective balance sheets to Forty Four Million Two Hundred Thousand
Dollars ($44,200,000), and to record a corresponding expense or income item,
subject to the terms of this Agreement and Lender’s receipt of the Deeds and
the Property, as described below, and Borrower’s, Guarantor’s, GH Management’s
and Condo Owner’s performance of such parties’ respective obligations under
this Agreement; provided, however, that (i) the Closing Date (defined below)
shall occur on or before October 15, 2004, and (ii) Lender’s carrying
value for the personal property does not exceed Three Million Dollars
($3,000,000).

 

NOW THEREFORE, in
consideration of the foregoing premises, the covenants in this Agreement and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereby agree as follows:

 

ARTICLE I

 

Property

 

1.1.                              The Property. 
Borrower, GH Management (to the extent applicable to the employment
contracts), Condo Owner (to the extent applicable to the Condo Property), and
Guarantor (to the extent applicable to the capital stock of Golf Host
Securities, Inc., a Florida corporation (“GH
Securities”)) agree to transfer, to GTA-IB or, at GTA-IB’s election
at or prior to the closing, to any of its direct or indirect subsidiaries, and
GTA-IB agrees to accept, or to cause such subsidiary to accept, as applicable,
from Borrower, GH Management, Condo Owner and Guarantor, in accordance with the
terms, covenants and conditions contained in this Agreement, all of the
following property (collectively, the “Property”,
and to the extent that any of the Property relates only to the Innisbrook Real
Property (as defined below), and not to the Condo Property, then such Property
shall herein be referred to as the “Resort
Property”)

 

(a)                                  the real property described on Exhibit
A-1 hereto (including, without limitation, all right, title and interest to
all strips and gores of land therein) (the “Innisbrook
Real Property”);

 

(b)                                 (i) those certain three (3) condominium
properties located at the Innisbrook Resort and commonly known as Unit 301 in
Building 15, Unit 104 in Building 20 and Unit 103 in Building 28 of the
Innisbrook Condominium, (ii) that certain linen closet commonly described as
Unit 115 in Building 28, each as more particularly described on Exhibit A-3
hereto and (iii) the right to all accrued but unpaid rental pool or other
distributions relating to such units described in (i) (collectively, (i), (ii)
and (iii) are referred to as the “Condo
Property” and together with the Innisbrook Real Property, the “Real Property”);

 

(c)                                  all of the buildings, fixtures and other
improvements now or hereafter located on the Real Property and all
appurtenances thereto as listed on Exhibit A-4 attached hereto
(collectively, the “Improvements”);

 

(d)                                 all tangible and intangible personal
property and any and all warranties related thereto (collectively, the “Personal Property”) owned by Borrower,
Guarantor, Condo Owner, or any of their affiliates or any person claiming by or
through such parties and located at or used in connection with the maintenance,
operation and/or management of the Real Property

 

3

 

and the golf courses located thereon known as
Copperhead, Island, and Highlands North and South Golf Courses (collectively,
the “Innisbrook Golf Courses”);

 

(e)                                  all right, title and interest of Borrower
and Condo Owner in, to and under the contracts and agreements, including,
without limitation, any and all employment contracts relating to the Property,
the rental pool agreements and that certain Westin Management Agreement
described on Schedule 1.1(e) attached hereto (collectively the “Contracts”) entered into by Borrower or
Condo Owner in connection with the operation and management of the Real
Property;

 

(f)                                    all licenses (including, without
limitation, liquor licenses), permits, certificates of occupancy and rights under
permits, approvals, and allocations relating to the Real Property and the
operation thereof and other similar documents described on Schedule 1.1(f)
attached hereto (collectively, the “Permits”),
as well as all keys, security codes, passwords and combinations to the Real
Property, the Personal Property and the Improvements;

 

(g)                                 all surveys, plans, maps, specifications,
drawings and other similar documents, relating to the Real Property (the “Plans and Specifications”);

 

(h)                                 all guarantees, permits and warranties
issued in connection with (1) the construction, operation, use, improvement,
alteration or repair of the Personal Property and the Improvements, and (2) the
purchase or repair of any Personal Property or Improvements (the “Warranties and Guaranties”);

 

(i)                                     all of Borrower’s and Condo Owner’s
right, title and interest with respect to any and all insurance policies with
respect to the Property, including any proceeds or premium refunds payable
thereunder (the “Insurance Policies”),
provided that neither Borrower nor Condo Owner shall have any obligation to
maintain any insurance with respect to the Property after the Closing Date;

 

(j)                                     all other rights and interests granted to
Borrower or Condo Owner in connection with the Property, including, without
limitation, any rights with respect to the name “Innisbrook” or “Innisbrook
Resort,” including, without limitation, all trademarks, trade names, logos, or
other intellectual property rights respecting such names  (the “Borrower
Rights”);

 

(k)                                  all leases of all or any portion of the
Personal Property described on Schedule 1.1(k) attached hereto (the
“Personal Property Leases”);

 

(l)                                     all leases of any portion of the Real
Property described on Schedule 1.1(l) attached hereto (the “Real Property Leases”);

 

(m)                               all of Borrower’s right, title and
interest, and all of the right title and interest of certain affiliates of
Borrower in those certain shares of common stock, limited partnership units and
options to purchase common stock of Lender and Golf Trust of America, Inc., a
Maryland corporation (the “GTA Parent”) described on Schedule 1.1(m)
hereto (the “GTA Stock Interests”);

 

4

 

(n)                                 all of Guarantor’s and its affiliates’
direct or indirect ownership interest in GH Securities, as described on Schedule 1.1(n)
hereto (the “GH Securities Stock Interests”),
and in any other entity engaged in brokering the sale and re-sale of
condominium units at the Property;

 

(o)                                 at GTA-IB’s election (which shall be made
in writing by GTA-IB on or prior to the Closing Date), all of Borrower’s, Condo
Owner’s, GH Management’s, Guarantor’s, and their respective affiliates’, right,
title and interest in and to any and all shares, partnership interests and/or
membership interests in any entity (1) with any ownership interest in the
Property, and/or (2) that participates in the operation or maintenance of
the Property, including, without limitation, Borrower, Condo Owner and GH
Management;

 

(p)                                 all
right, title and interest in and to that certain 0.6 acre Commercial Tract
within Parcel J (sometimes called “Parcel J-4”)
and contiguous to the Innisbrook Resort eastern gatehouse (such Commercial
Tract, the “0.6 Acre”), subject to
the terms of that certain lease (the “Parcel
J-4 Lease”, a form of which is attached hereto as Exhibit A-5),
which is to be entered into by and between Borrower and either: (i) Parcel F,
L.L.C., a Florida limited liability corporation (“Bayfair”) (in which case, the Parcel J-4 Lease is hereby
approved by Lender and GTA–IB pursuant to, and as part of, that certain Amended
and Restated Agreement For Sale and Purchase of Real Property – Parcel F
executed as of July 15, 2004, by and between Borrower and Bayfair, the “Original Bayfair Agreement”), or (ii)
another purchaser of Parcel F (defined below) which purchaser meets the
criteria set forth in Section 8.2(b) (in which case the Parcel J-4 Lease
shall be approved by Lender and GTA-IB pursuant to an agreement for the
purchase and sale of Parcel F entered into in accordance with this Agreement);
such 0.6 Parcel is more particularly depicted on Exhibit A-6 attached
hereto;

 

(q)                                 all right, title and interest in and to
any and all vested rights of Borrower, Guarantor, GH Management and/or Condo
Owner with respect to the development of 139 residential units (or such greater
number of units, if any, to which such parties have vested rights to develop,
including, without limitation, that number of residential units which equals
the difference between (i) 400 residential units and (ii) the actual number
constructed) in the event that fewer than 400 residential units are developed
on Parcel F (defined below) (the “Unused Parcel F Units”) on the Real
Property, and as such rights are more particularly described on Schedule 1.1
(q) attached hereto (the “Vested Rights”),
including, without limitation, all determinations, hearings, judgments and
settlements made by Pinellas County or any other governmental agency, entity or
court; provided, however, in no event shall Parcel F (or the current or any
future owner thereof) obtain any of the Vested Rights whatsoever;

 

(r)                                    all right, title and interest in and to
any and all contractual, real property or other rights or benefits of Borrower,
Guarantor, GH Management, Condo Owner or their respective affiliates that exist
in any form relating to: (i) the Innisbrook Parcels J-1 and J-2 (as such
properties are further described in that certain Agreement for Sale and
Purchase of Real Property – Multi-Family Sites, last dated November 6,
2000 by and between Borrower and to CKT Development Co., a Florida corporation
(“CKT”)) (“Parcels J-1 and J-2”), and (ii) the
Innisbrook Parcel K (as such property is further described in that certain
Agreement for Sale and Purchase of Real Property – Multi-Family Sites, dated
June 19, 1998 by and between Borrower

 

5

 

and CKT) (“Parcel K”),
which contractual, real property or other rights or benefits are listed on Schedule 1.1(r)
attached hereto (collectively, the “Parcel
Rights”);

 

(s)                                  all right, title and interest in and to
any and all contracts, real property or other rights or benefits of Borrower,
Guarantor, GH Management, Condo Owner or their respective affiliates that exist
in any form relating to any portion of that certain real property owned by
Pinellas County, as such real property is described more particularly on Schedule 1.1(s)-1
attached hereto (the “Pinellas County Land”),
which contracts, real property or other rights or benefits are set forth on Schedule 1.1(s)-2,
including, without limitation, those certain easements (including,
without limitation, the exclusive easement to and for the benefit of Borrower
for the purposes of enabling Borrower to construct, operate, maintain, repair
and replace a nine-hole golf course) and other rights set forth in the Agreement for
Effluent Disposal, dated April 30, 1973, between Borrower and Pinellas
County, as amended and/or restated, and as more particularly described on Schedule 6.1(jj)-2
attached hereto (all such all right, title and interest, collectively, the
“Pinellas County Rights”);

 

(t)                                    all right, title and interest in and to
any and all contracts, real property or other rights or benefits of Borrower,
Guarantor, GH Management, Condo Owner or their respective affiliates that exist
in any form relating to any portion of that certain real property which is
owned (or previously owned) by Wall Springs Conservatory, Inc. and located
adjacent to part of the Resort Property, as such real property is described
more particularly on Schedule 1.1(t)-1 attached hereto (the “Wall Springs Land”), which contracts, real
property or other rights or benefits are set forth on Schedule 1.1(t)-2,
including, without limitation, those certain easements (including, without
limitation, the easements over and across the Wall Springs Land relating to,
among other matters, drainage matters, cart paths and utility installations)
and other rights set forth in the Easements and Development Agreement dated
February 11, 1997 by and between Golf Host Resorts Inc. and Wall Springs
Conservatory, Inc., as amended and/or restated, and as more particularly
described on Schedule 6.1(jj)-4 attached hereto (all such all
right, title and interest, collectively, the “Wall
Springs Rights”);

 

(u)                                 all right, title and interest in and to
any judgments, settlements, liens, recoveries, damages, moneys,
property or other value received by Borrower, Guarantor, GH Management or
Condo Owner, or their respective affiliates, resulting from any resolution, settlement,
or dismissal of any of the “Klosterman Road” litigation more particularly
described on Schedule 1.1(u)) attached hereto (“Klosterman Litigation”) or in any way
resulting from the claims brought in connection with any of the Klosterman
Litigation (such right, title and interest, collectively, the “Klosterman  Litigation Interest”);
and

 

(v)                                 any other right, title and interest in
and to any and all real or personal property or contract or other rights or
benefits of Borrower, Guarantor, GH Management, Condo Owner, or their
respective affiliates, in any way relating to the Property or the use of the
Property.

 

6

 

ARTICLE II

 

Releases

 

2.1.                              Releases.  On the
Closing Date (as defined below), (i) GTA-IB shall deliver to Borrower and
Guarantor a duly executed release by Lender in favor of Borrower and Guarantor
in the form attached hereto as Exhibit B-1 (the “Borrower Release”), and (ii) Borrower,
Guarantor and any other guarantors shall deliver to GTA-IB a release of Lender
in the form attached hereto as Exhibit B-2 (the “Lender Release”; Borrower Release and the
Lender Release, collectively the “Releases”).

 

ARTICLE III

 

Closing of Transfer; Conditions to Closing

 

3.1.                              Place and Date. 
The closing under this Agreement and the transfer of the Property and
other rights contemplated hereunder shall be completed in accordance with the
terms and conditions contained in this Agreement and shall occur at the offices
of O’Melveny & Myers LLP, 275 Battery Street, Suite 2600, San Francisco,
California, or at the offices of GTA-IB’s local Florida counsel, as GTA-IB
shall elect, on or before July 15, 2004, with an effective date of 12:01
a.m. (ET) on  July 15, 2004 (the “Closing Date”), as the Closing Date may be
extended by the mutual written agreement of the parties hereto, but in no case
may extend past July 15, 2004. 
Until such time as the Closing Date has occurred and the transactions
contemplated by this Agreement have closed (other than those that are, pursuant
to the express terms hereof, to occur following the Closing Date), nothing
contained in this Agreement shall in any way restrict or modify the rights or
obligations of either Lender or Borrower, including, without limitation,
Lender’s right or ability to pursue any and all judicial or non-judicial
remedies and/or relief that may be available to Lender as a result of
Borrower’s default under the Loan.  The
parties understand for income tax purposes that this overall transaction will
be treated as a deemed sale of the Property by the Borrower to the Lender in
exchange for release of all amounts owed by the Borrower to the Lender under
the Loan.

 

3.2.                              Failure of Conditions Precedent. 
If, for any reason, except for such party’s breach of this Agreement, a
condition precedent to a party’s obligation to close hereunder has not been
satisfied on or before the Closing Date, then such party, in its sole
discretion, may by written notice to the other party:  (i) waive such condition and proceed to close;
(ii) extend the Closing Date to a date provided in such written notice; or
(iii) terminate this Agreement.  In
the event of a termination of this Agreement as provided above, Lender may
proceed to exercise or renew the exercise of all of the rights and remedies
held by Lender under the Loan Documents and applicable law.  Borrower hereby acknowledges and agrees that
nothing contained in this Agreement shall be deemed a waiver of any of Lender’s
rights or remedies against Borrower or Guarantor under the Loan Documents or
under applicable law unless and until the consummation of the transactions
contemplated by this Agreement in accordance with the terms of this Agreement
(other than those transactions that, pursuant to the terms of this Agreement,
are to occur after the Closing Date).

 

7

 

3.3.                              GTA-IB’s Conditions to Closing. 
GTA-IB and Lender’s respective obligations to consummate the
transactions contemplated under this Agreement shall be conditioned upon the
following:

 

(a)                                  all of Borrower’s, Guarantor’s, GH
Management’s and Condo Owner’s representations and warranties contained in this
Agreement shall be true and correct as of the Effective Date and as of the
Closing Date (as if made on the Closing Date);

 

(b)                                 Borrower, Condo Owner and such other
affiliates of Borrower as shall be necessary in order to transfer the GTA Stock
Interests shall have executed and delivered to GTA-IB each of the Conveyance
Documents (as defined below), as applicable to such party;

 

(c)                                  Borrower and Guarantor shall have delivered
to GTA-IB a true, correct and complete Closing Balance Sheet (as defined in
Section 7.2), in form and substance satisfactory to GTA-IB, in its sole
discretion;

 

(d)                                 Borrower shall have executed and
delivered to GTA-IB a certificate verifying that, as of the Closing Date: (i)
the representations and warranties of Borrower, Guarantor, GH Management and
Condo Owner in this Agreement are true, correct and complete, as if made on and
as of the Closing Date, and each of Borrower, Guarantor, GH Management and
Condo Owner has complied with all the agreements and satisfied all the
conditions on its part to be performed or satisfied at or prior to the Closing
Date; (ii) the Closing Date Balance Sheet is true, correct and complete in all
respects, including, without limitation, with respect to the assets and
liabilities of Borrower and the Property, other than with respect to minor,
non-material adjustments not to exceed Twenty Thousand Dollars ($20,000) in the
aggregate; and (iii) the amount of real property taxes and real property tax
appeal consequences (including, without limitation, all related reasonably and
actually incurred legal fees, penalties, interest and other directly related
reasonably and actually incurred third-party costs, which amounts shall not
exceed, in the aggregate, One Million Thirty Thousand Nine Hundred Dollars
($1,030,900) respecting the Property which have accrued or become payable as of
the Closing Date;

 

(e)                                  each of Guarantor, GH Management and
Condo Owner shall have fully cooperated with GTA-IB, and/or its affiliates, in
GTA-IB’s efforts to cause the NASD Regulation, Inc. to approve a notice and
application for continuance in membership in relation to a proposed change in
control of GH Securities (Guarantor currently owns 100% of GH Securities’
capital stock and intends to transfer its ownership interest to GTA-IB);

 

(f)                                    Borrower, Guarantor and GH Securities, as
applicable, shall have timely filed all required filings with the Securities
and Exchange Commission or NASD Regulation, Inc., as applicable, up until the
Closing Date (and shall have agreed to file all subsequent required filings
with the Securities and Exchange Commission respecting any period prior to the
Closing Date);

 

(g)                                 Borrower shall have delivered (or shall
have caused Guarantor, GH Management or Condo Owner to deliver, as applicable)
to GTA-IB true, correct and complete originals or copies of each of the
Equipment Leases, the Real Property Leases, the Contracts, the Plans and
Specifications, the Warranties and Guaranties and the Insurance Policies,
Permits,

 

8

 

Parcel J and K Contracts (defined below), the Pinellas
County Contracts and the Wall Springs Contracts (defined below) in the
possession of Borrower, Guarantor, GH Management, Condo Owner or their
respective affiliates, agents, consultants, directors, officers, employees or
contractors, to which GTA-IB shall have full and unrestricted access;

 

(h)                                 Borrower, Guarantor, GH Management and
Condo Owner shall have timely fulfilled each of their respective other
obligations under this Agreement that are required to be fulfilled on or prior
to the Closing Date;

 

(i)                                     Borrower shall have executed and
delivered to Lender the Lender Release;

 

(j)                                     Borrower shall have delivered (or shall
have caused Guarantor, GH Management or Condo Owner to deliver, as applicable)
to GTA-IB each of the following:

 

(i)                                     all Personal Property;

 

(ii)                                  copies of all pleadings, court documents,
deposition transcripts, legal memoranda and settlement proposals in respect of
the Lawsuits (as defined below) and in accordance with the Joint Defense
Agreement (defined below), the Klosterman Litigation and the Litigation, to the
extent that to do so would not waive attorney-client privilege (provided that Borrower
shall inform GTA-IB and its counsel in writing when it asserts such
attorney-client privilege);

 

(iii)                               any tax assessments, notices and
statements received by Borrower relating to the Property;

 

(iv)                              income and expense statements, balance
sheets and capital replacement and capital improvement data, each covering the
operation of the Property for the calendar year 1997 through the Closing Date;

 

(v)                                 originals or copies of all books and
records pertaining to the Property and maintained by Borrower and/or its
affiliates or agents, except for such books and records that are maintained by
the Resort Manager at the Property and to which GTA-IB shall have full and
unrestricted access;

 

(vi)                              an executed original of the Parcel F
Memorandum of Agreement (as defined below);

 

(vii)                           any keys, security codes, passwords and
combinations necessary to obtain full access to the Property that are in
Borrower’s possession;

 

(viii)                        all cash located on the Property or in
any accounts relating to the Property, as reflected in the Closing Date Balance
Sheet (as defined in Section 7.2), whether or not such accounts are in the
name of or for the benefit of Borrower or Guarantor or any of their affiliates
or Resort Manager or any of Resort Manager’s affiliates;

 

(ix)                                a true, correct and complete copy of any
executed purchase and sale agreement respecting Parcel F (defined below), which
may or may not be effective, by and

 

9

 

between Borrower, GTA-IB and Bayfair (or other
purchaser), together with all schedules and exhibits ) (a “Parcel F Contract”);

 

(x)                                   all instruments required by the Title
Insurer as a condition precedent to the issuance of the Title Policy (as
defined below);

 

(k)                                  GTA-IB and Resort Manager shall have
entered into the Westin Management Agreement, provided that it shall be in form
and substance acceptable to GTA-IB in its sole discretion for the management of
the Resort Property by Resort Manager from and after the Closing Date;

 

(l)                                     Resort Manager and Troon shall have
entered into the Troon Management Agreement, provided that it shall be in form
and substance acceptable to GTA-IB in its sole discretion for the management of
the Innisbrook Golf Courses by Troon from and after the Closing Date;

 

(m)                               Borrower and GTA-IB shall have agreed
upon the Allocations (defined below);

 

(n)                                 Borrower, GTA-IB and Escrow Agent shall
have entered into a defense and escrow agreement in the form of Exhibit D
attached hereto (the “Defense and Escrow
Agreement”) with respect to that certain lawsuit being defended by
Borrower and other entities, which was filed by William J. and Harriet J. Ball,
et al., on behalf of themselves and other similarly situated parties, in the
Circuit Court for the Sixth Judicial Circuit in Pinellas County, Florida, Case
Numbers 99-7532-CI-007 and/or 01-008582-CI-015 (the “Ball Claims,” and with respect to other claims which are
brought in the future, including such claims brought by intervenors (or could
have been brought) against Borrower, and which derive from or relate to the
same facts and circumstances as the Ball Claims (collectively, such additional
claims are referred to as the “Related Claims,”
and each such Claim is individually a “Related
Claim”)) (collectively the Ball Claims and the Related Claims are referred
to as the “Lawsuits”; and each of
the Ball Claims and the Related Claims is individually a “Lawsuit”). 
For purposes of this Agreement, the plaintiffs in the Lawsuits, and
those who have intervened or seek to intervene in one or more Lawsuits, shall
be collectively referred to as the “Plaintiffs”
and each is individually a “Plaintiff”;

 

(o)                                 Borrower shall have obtained (i) a
release (the “Resort Manager Release”)
from Resort Manager, and (ii) a release (the “Troon Release”), both in form
and substance satisfactory to Borrower and GTA-IB;

 

(p)                                 each of Borrower, Guarantor, GH
Management and Condo Owner, and their respective affiliates, shall have
assigned all of their right, title and interest to the Vested Rights (and such
parties shall have executed and delivered to GTA-IB the Vested Rights
Assignment (defined below)), the Parcel Rights, Pinellas County Rights and
Contracts and Wall Springs Rights and Contracts to GTA-IB; any consents or
other documents required for the assignment of the Parcel Rights, Pinellas
County Rights and Contracts or Wall Springs Rights and Contracts to GTA-IB
shall have been executed by the applicable parties and delivered to GTA-IB and
recorded in the appropriate land records, if applicable; and any notices
required to

 

10

 

be delivered as a result of the assignment of the
Parcel Rights, Pinellas County Rights and Contracts or Wall Springs Rights and
Contracts to GTA-IB shall have been delivered to the applicable parties;

 

(q)                                 Borrower shall have executed and
delivered to Lender the Lender Release;

 

(r)                                    Borrower and Guarantor shall have timely
fulfilled each of their other obligations under this Agreement in all material
respects;

 

(s)                                  Borrower and Bayfair, or such other
authorized purchaser of Parcel F pursuant to Section 8.2(b), shall have
delivered to GTA-IB a true, correct and complete copy of the executed Parcel F
Development Agreement (defined below); and

 

(t)                                    Borrower shall have executed and
delivered to GTA-IB a true, correct and complete copy of the Joint Defense
Agreement (defined below); and

 

(u)                                 Borrower and Guarantor shall have
executed and delivered to GTA-IB a copy of the Operational Benefits Agreement.

 

3.4.                              Borrower’s Conditions to Closing. 
Borrower’s obligation to consummate the transactions contemplated under
this Agreement shall be conditioned upon the following:

 

(a)                                  all of GTA-IB’s representations and
warranties contained in this Agreement shall be true and correct as of the
Effective Date and as of the Closing Date;

 

(b)                                 GTA-IB shall have executed and delivered
to Borrower, Condo Owner and Guarantor each of the Conveyance Documents, to the
extent such Conveyance Documents require the signature of GTA-IB;

 

(c)                                  GTA-IB and Lender shall have delivered to
Borrower a true, correct and complete copy of the executed Parcel F Development
Agreement, subject to Section 8.2(b) below;

 

(d)                                 Lender shall have executed and delivered
to Borrower the Borrower Release;

 

(e)                                  GTA-IB shall have timely fulfilled each
of its other obligations under this Agreement in all material respects;

 

(f)                                    Borrower, Lender and Escrow Agent have
entered into the Defense and Escrow Agreement;

 

(g)                                 Borrower and GTA-IB shall have agreed
upon the Allocations;

 

(h)                                 Borrower shall have obtained the Resort
Manager Release from Resort Manager, and the Troon Release from Troon both in
form and substance satisfactory to Borrower and GTA-IB; and

 

11

 

(i)                                     Lender shall have executed and delivered
to Borrower a copy of the Operational Benefits Agreement.

 

ARTICLE IV

 

Conveyance Documents

 

4.1.                              Real Property. 
On the Closing Date, Borrower shall convey to GTA IB, absolutely and
irrevocably, without reservation of any rights whatsoever, good and marketable
fee simple absolute title to (i) the Innisbrook Real Property (including,
without limitation, all right, title and interest to all strips and gores
therein) and (ii) the 0.6 Acre, to GTA IB by duly executed and acknowledged
warranty deed in the form attached hereto as Exhibit E-1, which is
subject to the terms of the Parcel J-4 Lease. 
On the Closing Date, Borrower and, to the extent applicable, Condo Inc.,
shall cause Condo LLC to convey, absolutely and irrevocably, without
reservation of any rights whatsoever, good and marketable fee simple absolute
title to the Condo Property to GTA-IB Condominium, LLC, a Florida limited
liability company (“GTA-IB Condominium”), by duly executed and acknowledged
warranty deed in the form attached hereto as Exhibit E-2.  The deeds used to convey the Real Property
shall be referred to herein as the “Deeds”. 
On the Closing Date, Borrower, Guarantor, GH Management, Condo Owner and
their respective affiliates shall convey all right, title and interest in and
to any and all contracts, real property or other rights or benefits of
Borrower, Guarantor, GH Management, Condo Owner or their respective affiliates
that exist in any form relating to any portion of the Pinellas County Land,
including, without limitation, the Pinellas County Rights and the Pinellas
County Contracts, by duly executed Assignment of Easement in the form attached
hereto as Exhibit E-3.

 

4.2.                              Personal Property. 
On the Closing Date, Borrower and Guarantor shall transfer, and shall
cause Condo Owner and their applicable affiliates to transfer, good title to
the Personal Property and the Improvements to GTA-IB by duly executed Bills of
Sale in the form attached hereto as Exhibit F (the “Bills of Sale”).

 

4.3.                              Assignment
of  Contracts .  On the
Closing Date, Borrower shall assign and, to the extent applicable, shall cause
Condo Owner to assign, good and marketable title to Borrower’s and Condo
Owner’s respective interest in the Contracts and the Equipment Leases to GTA-IB
by a duly executed Assignment of Contracts in the form attached hereto as Exhibit G
(the “Assignment of Contracts”).

 

4.4.                              Other.  On the
Closing Date, Borrower shall assign and, to the extent applicable, shall cause
Borrower, Guarantor, GM Management, Condo Owner, or their respective
affiliates, to assign, all of their respective right, title and interest in and
to the Parcel Rights, Pinellas County Rights and Contracts, Wall Springs Rights
and Contracts, Permits, Plans and Specifications, Warranties and Guaranties,
Insurance Policies, Borrower Rights, Equipment Leases, Real Property Leases,
Leases and any Klosterman Litigation Interest to GTA-IB by duly executed
General Assignment and Assignments of Leases in the form attached hereto as Exhibit H
(the “General Assignment and Assignment of
Leases”).

 

12

 

4.5.                              Non-Foreign Affidavit. 
On the Closing Date, Borrower and Condo Owner each shall execute and
deliver an affidavit pursuant to the Foreign Investment and Real Property Tax
Act, as amended, in the form attached hereto as Exhibit I (the “FIRPTA Affidavit”).

 

4.6.                              Stock Interests.

 

(a)                                  On the Closing Date, Borrower shall
assign, and shall cause its applicable affiliates to assign, to GTA-IB good and
marketable title to the GTA Stock Interests by duly executed stock power
certificate, stock transfer certificate and such other documents as may be
necessary to cause such transfer of the GTA Stock Interests (collectively, the
“GTA Stock Interest Transfer Documents”).  Borrower expressly consents to the
unqualified exercise by Lender, on or after the Closing Date, of any and all
stock powers relating to the GTA Stock Interests which are in Lender’s
possession as of the Effective Date; and

 

(b)                                 On the Closing Date, Guarantor shall
assign, and shall cause its applicable affiliates to assign, to GTA-IB good and
marketable title the GH Securities Stock Interests by duly executed stock power
certificate, stock transfer certificate and such other documents as may be
necessary to cause such transfer of the GTA Stock Interest (collectively, the “GH Securities Stock Interest Transfer Documents”).

 

The Deed, Bills of Sale,
Assignment of Rights, Assignment of Contracts, General Assignment and
Assignment of Leases, FIRPTA Affidavit, GTA Stock Interest Transfer Documents
and GH Securities Stock Interest Transfer Documents are collectively referred
to herein as the “Conveyance Documents.”

 

4.7.                              Possession.  On the
Closing Date, Borrower, Guarantor and Condo Owner shall transfer exclusive
possession of the Property to GTA-IB, subject only to the rights of tenants
under the Leases.

 

4.8.                              Florida Stamp Taxes. 
GTA-IB shall pay the costs and expenses associated with any and all
conveyance, stamp, transfer, document and other similar taxes due in connection
with or arising solely as a result of the transfer of the Real Property from
each of Borrower and Condo Owner to GTA-IB.

 

4.9.                              Owner’s Title Insurance. 
On the Closing Date, GTA-IB shall pay the premiums, costs and expenses
relating to the Title Policy (as defined below).  For purposes hereof, the term “Title
Policy” shall mean (i) an ALTA Owner’s form of extended coverage
title insurance policy in an amount reasonably determined by GTA-IB insuring
that fee simple to the Condo Property is vested in GTA-IB Condominium subject
only to such exceptions to title as listed on Exhibit  J-1 attached
hereto (the “Condo Property Permitted Exceptions”) and (ii) an ALTA Owner’s
form of extended coverage title insurance policy in an amount reasonably
determined by GTA-IB insuring that fee simple to the Innisbrook Real Property
is vested in GTA-IB subject only to such exceptions to title as are listed on Exhibit J-2
attached hereto (the “Innisbrook Permitted Exceptions”).

 

13

 

ARTICLE V

 

Other Closing Actions

 

5.1.                              Lawsuits.  Borrower
and GTA-IB shall abide by the terms and conditions contained in the Defense and
Escrow Agreement and Borrower, if any of the GTA Parties are joined as a party
to one or more Lawsuits by one or more of the Plaintiffs, shall, only to the
extent there are Net Proceeds (as such term is defined in the Defense and
Escrow Agreement) after distributions are made pursuant to
Section 5.2(v) (i.e., the “Fifth” level of the Net Proceeds
waterfall), at its sole cost and expense, indemnify, defend and hold harmless
each of Lender, the GTA Parent and GTA-IB, and their respective officers,
directors, managers, shareholders, members, partners, employees, agents and
their affiliates (collectively, the “GTA
Parties”), from and against any and all cost, expense (including,
without limitation, legal and investigatory fees, costs and expenses payable to
Dechert LLP and/or Borrower’s Local Counsel (as such terms are defined in the
Defense and Escrow Agreement), but specifically excluding any counsel retained by
any of the GTA Parties, except as provided below or as provided in the Defense
and Escrow Agreement), liability, claim, loss, judgment or damage of any kind
or nature arising out of or in connection with the Lawsuits to the extent
provided for in the Defense and Escrow Agreement; (provided, however, that the
foregoing indemnity shall not apply in any manner whatsoever to any indirect or
consequential damages incurred by any of the GTA Parties).  However, in the event any of the GTA Parties
are joined as a party to the Lawsuits by one or more Plaintiffs (present or
future), Borrower shall, subject to the availability of Net Proceeds in
Section 5.2(ii)(b) of the Defense and Escrow Agreement, promptly reimburse
such GTA Parties or their affiliates for their legal fees and costs incurred by
such parties with respect to the Lawsuits, in accordance with the terms of the
Defense and Escrow Agreement, subject to a maximum cap of Fifty Thousand
Dollars ($50,000).  The obligation of
Borrower to indemnify the GTA Parties as hereinabove set forth shall not apply
with respect to any losses, costs or damages directly resulting from the final
judicial determination of gross negligence or fraud by any of the GTA Parties
solely in connection with the Lawsuits, occurring after the Closing Date.  Notwithstanding the foregoing, the aforesaid
limit of Fifty Thousand Dollars ($50,000) in the event any of the GTA Parties
are joined as a Party to a Lawsuit by one or more Plaintiffs, shall not be
applicable in the event of a final judicial determination of a default under
this Agreement by Borrower, Guarantor, GH Management or Condo Owner, provided
that (i) the defaulting party shall have a period of up to ninety (90) days to
cure such default from receipt of notice thereof from GTA-IB or Lender; and
(ii) in the event such default is not so cured by the defaulting party
within the aforesaid ninety (90) day period, such obligation of Borrower
remains subject to the availability of Net Proceeds in Section 5.2(ii)(b)
regarding the Fifty Thousand Dollars ($50,000) amount and
Section 5.2(ii)(b)(v) regarding any amounts exceeding the Fifty Thousand
Dollar ($50,000) amount of the Defense and Escrow Agreement and the One Million
Five Hundred Thousand Dollars ($1,500,000) limitation of Section 10.3(c).

 

5.2.                              Employees.

 

(a)                                  General. As of the Closing Date, GTA-IB shall offer
employment to all of those Employees (as such term is defined in
Section 6.1(s) hereof) (i) listed on Schedule 5.2.1 hereof,
(ii) all replacements for such individuals, and (iii) all Employees who receive
a salary of Fifty Thousand Dollars ($50,000) per year or less, regardless of
whether listed on Schedule 5.2.1 

 

14

 

(the “Targeted
Employees”); provided, however,
that GTA-IB shall not assume any liabilities with respect to the Targeted
Employees or any past employees of Borrower, or any of its affiliates,
including, without limitation, Ian Baxter (collectively, the past employees of
Borrower or any of its affiliates “Other Employees”)
accruing on or before the Closing Date, except to the extent (i) such
liability (including sick pay, severance and accrued vacation) is specifically
set forth or accounted for on the Closing Date Balance Sheet or in the
footnotes thereto, (ii) GTA-IB terminates or fails to employ the Targeted
Employees, or (iii) as otherwise set forth on Schedule 5.2.2
attached hereto (the “Assumed Employer
Liabilities”).  As of the
Closing Date, in addition to the Assumed Employer Liabilities, GTA-IB shall
assume any and all future liabilities relating to the Targeted Employees that
have accepted employment with GTA-IB, including, without limitation, those
liabilities arising on or after the Closing Date under any GHR Employee Plan
(as defined herein) and any Retirement Account (as defined below) that has been
provided to GTA-IB at least ten (10) days prior to the Closing Date and that
remains in full force and effect. 
Borrower shall bear any and all costs in connection with the termination
of the Other Employees, including, without limitation, any severance payments,
termination payments, payments for accrued vacation due and owing or claimed to
be due and owing to the Other Employees and any and all other payments arising
as a matter of contract or law (collectively, the “Termination Payments”), and Borrower shall indemnify, defend
and hold harmless the GTA Parties from and against any and all cost, expense
(including, without limitation legal and investigatory fees, costs and
expenses), liability, claim, loss, judgment or damage of any kind or nature
arising out of or in connection with the Termination Payments and with respect
to any health or life insurance policies or plans, pension or profit-sharing
plans or other employee benefit programs benefiting the Targeted Employees and
the Other Employees at any time prior to the Closing Date, except (i) as to the
Assumed Employer Liabilities, (ii) to the extent specifically set forth or
accounted for in the Closing Date Balance Sheet or in the footnotes thereof, or
(iii) arising out of the failure by GTA IB to offer employment to, or continue
to employ, any of the Targeted Employees. 
In order to facilitate the employment by GTA-IB of the Targeted
Employees, Borrower and its employees, officers and affiliates shall cooperate
with GTA-IB and shall encourage the Targeted Employees to agree to employment
with GTA-IB, and neither Borrower nor its affiliates shall (i) solicit for
employment any of the Targeted Employees for a period of three (3) years from
the Closing Date, or (ii) employ any of the employees listed on Schedule 5.2.3
(the “Key Employees”) for a period
of one year from the Closing Date. 
Subject to the limitations provided herein, Borrower shall indemnify,
defend and hold harmless the GTA Parties from and against any and all costs,
expenses, liabilities, claims, losses, and actual, direct damages of any kind
or nature arising out of or in connection with the Targeted Employees and the
Other Employees and arising prior to the Closing Date (other than the Assumed Employer
Liabilities). Except to the extent such liability, or compliance obligation,
arises from GTA-IB’s failure to offer employment to, or termination of, the
Targeted Employees, and only to the extent such compliance relates to periods
prior to the Closing Date or arises in connection with the transactions
contemplated herein (as opposed to actions of GTA-IB subsequent to the Closing
Date or GTA-IB’s failure to meet any obligation, including those related to
employment of the Targeted Employees, hereunder), Borrower shall, at its sole
cost and expense, (i) comply with (a) the United States Worker Adjustment and
Retraining Notification Act, as amended (which compliance shall include those
matters set forth in Schedule 5.2.3), and with (b) any and all laws
relating to the Targeted Employees and the Other Employees in connection with
the transactions contemplated by this Agreement, and (ii)

 

15

 

indemnify and hold the GTA Parties harmless from and
against any and all liabilities relating thereto.  Following the Effective Date, neither Borrower nor its affiliates
shall, without GTA-IB’s prior written consent, (a) increase the
compensation or fringe benefits of any present or former director, officer or
employee of Borrower, (b) grant any severance or termination pay to any
present or former director, officer or employee of Borrower, (c) lend or
advance any money or other property to any present or former director, officer
or employee of Borrower, or (d) establish, adopt or enter into any GHR
Employee Plan (as defined below) or any plan, agreement, program, policy,
trust, fund or other arrangement that would be a GHR Employee Plan if it were
in existence as of the Effective Date.

 

(b)                                 From and after the Closing Date, neither
GTA-IB nor any of the GTA Parties shall have any additional obligations or
liabilities to the Employees (or any subset thereof) other than the Assumed
Employer Liabilities or liabilities otherwise expressly assumed hereunder.

 

5.3.                              Transition of Ownership. 
Borrower, at its sole cost and expense, from and after the Closing Date
shall cooperate with Lender in all reasonable respects in order to efficiently
transition ownership of the Property from Borrower, Guarantor, GH Management
and Condo Owner, as applicable, to GTA-IB. 
Such cooperation obligations shall include, without limitation:  (a) delivery of originals or copies of all
books, records and other documents related to the operation of the Property
held or maintained by Borrower or its agents or affiliates; (b) providing asset
management services (the “Asset Management
Services”) of Starwood Asset Management (“SAM”) for the period commencing on the Closing Date through
and including the day that is the six (6) month anniversary thereof (the “SAM Assistance Expiration Date”), subject
to GTA-IB’s right to terminate such arrangement prior to the SAM Assistance
Expiration Date; and (c) making generally available to GTA-IB the
following individuals: Merrick R. Kleeman and Robert Geimer (the “Key Executives”) to continue to cooperate
in all reasonable respects with GTA-IB in the transition of ownership of the
Property to GTA-IB pursuant to this Agreement, including, without limitation,
executing and delivering to GTA-IB any further agreements, instruments,
certificates and documents reasonably required for GTA-IB to effectively
operate and maintain the Property.  In
addition, to the extent that Keith Wilt’s employment relationship with Borrower
terminates and he becomes an employee of GTA-IB, or any of its affiliates,
GTA-IB shall make his services available to Borrower on a limited basis to
respond to inquiries of Borrower directly related to the transition of
ownership of the Property to GTA-IB pursuant to this Agreement and to the
completion of Borrower’s financial reporting obligations for the year 2004;
provided, however, that Borrower inform the GTA Parent’s Controller or other
designee about all such inquiries. The Asset Management Services shall be
provided primarily by Mr. Robert Geimer, currently an asset manager for
SAM.  The parties hereto agree that
(i) during the first three (3) months after the Closing Date, the first
forty (40) hours per calendar month of Asset Management Services shall be at no
cost to GTA-IB, and (ii) during the next three (3) months after the
Closing Date, the first twenty (20) hours per calendar month of Asset
Management Services shall be at no cost to GTA-IB; provided, however, in the
event that for any calendar month, SAM provides Asset Management Services in
excess of forty (40) hours for the first three (3) months after the Closing
Date or twenty (20) hours for the next three (3) months after the Closing Date,
then GTA-IB shall pay a fee to SAM for such excess Asset Management Services in
an amount equal to One Hundred Dollars ($100) for each hour of Asset Management
Services in excess of such limits (such amount to be

 

16

 

prorated for partial hours) and provided, further,
that the fees for such excess Asset Management Services shall not exceed Two
Thousand Dollars ($2,000) on a monthly basis without GTA-IB’s prior written
approval.  Such fee shall be payable by
GTA-IB within thirty (30) days after written demand therefor from SAM.

 

5.4.                              Allocation of Property Transferred. 
Attached hereto as Schedule 5.4 is the allocation of value
by dollar amount or relative percentage of each item of Real Property, Personal
Property and Contracts described in Sections 4.1, 4.2 and 4.3 above and any
other transferred items in sufficient specificity to comply with
Section 1060 of the Internal Revenue Code of 1986, as amended, as agreed
to by Borrower and GTA-IB (the “Allocations”).  The parties shall not cause to be filed any
tax return or tax report or otherwise take any position for Federal or State
income tax purposes that is inconsistent with the Allocations.

 

5.5.                              Survival.  The terms,
conditions and obligations under this Article V shall survive the closing
of the transactions contemplated under this Agreement.

 

5.6.                              GH Securities Regulatory Approvals.

 

(a)                                  The Guarantor shall, or shall cause GH
Securities (i) to file an application for change of ownership with the National
Association of Securities Dealers, Inc. (“NASD”)
and (ii) diligently to pursue such application through all appropriate
channels, including participating in any interviews requested by the NASD.  The Guarantor shall file, or cause GH
Securities to file and diligently pursue, all applications and notifications
relating to the change of ownership that may be required by the securities
authorities of the State of Florida and any other state in which GH Securities
is licensed as a securities broker and/or as a real estate broker.

 

(b)                                 In light of NASD Rule 1017, which
requires that the application for change of ownership to be filed no less than
thirty (30) days before such change is effected, until the 31st day after the
date on which such application is filed, title to the GH Securities Stock
Interests shall remain in the name of the Guarantor, notwithstanding the Guarantor’s
delivery of the GH Securities Stock Interest Transfer Documents to GTA-IB at
the Closing Date.

 

(c)                                  Upon receipt of NASD approval of such
change of ownership, the Guarantor shall deliver to GTA-IB letters of
resignation from all officers and directors of GH Securities other than Mr.
Dominic Bengivengo, the current President thereof.

 

(d)                                 In the event that NASD approval of such
change of ownership has not been obtained within twelve (12) months of the
Closing Date, GTA-IB shall have the right to cancel and rescind the transfer of
the GH Securities Stock Interests contemplated by this Agreement, and upon
exercise of such right, GTA-IB shall return the GH Securities Stock Interests
Transfer Documents to Guarantor.  In
that case, Guarantor agrees to own and operate GH Securities consistent with
past practice for up to forty-eight (48) months (provided that the Guarantor
shall not be obligated to invest any new capital in GH Securities), and to
transfer the GH Securities Stock Interests for nominal consideration to any
transferee designated by GTA-IB during such period.

 

17

 

ARTICLE VI

 

Representations and Warranties

 

6.1.                              Borrower Representations. 
Borrower represents, warrants, acknowledges, and agrees with GTA-IB that
as of the Effective Date, after due inquiry and investigation:

 

(a)                                  Borrower (i) is a duly organized and
validly existing corporation in good standing under the laws of the state of
Colorado, (ii) is duly qualified as a foreign entity in the jurisdiction in
which the Property is located, (iii) has the requisite entity power and
authority to carry on its business as now being conducted, and (iv) has the
requisite entity power to execute and deliver, and perform its obligations
hereunder.

 

(b)                                 The execution and delivery by Borrower of
this Agreement and the performance of its obligations hereunder and
consummation of the transactions contemplated herein (i) have been duly
authorized by all requisite corporate action on the part of Borrower, (ii) will
not violate any provision of any applicable legal requirements, any order,
writ, decree, injunction or demand of any court or other applicable
governmental authority with jurisdiction over Borrower or the Property, any
organizational document of Borrower or any indenture or agreement or other
instrument to which Borrower is a party, or by which Borrower is bound,
(iii) will not be in conflict with, result in a breach of, or constitute
(with due notice or lapse of time or both) a default under, or result in the
creation or imposition of any lien other than to Lender in connection with the
Loan of any nature whatsoever upon any of the property or assets of Borrower
pursuant to any indenture or agreement or instrument, and (iv) has been duly
executed and delivered by Borrower. 
This Agreement is enforceable against Borrower according to its
terms.  Except for those mentioned in
Section 5.6(a) and except for those obtained or filed on or prior to the
date hereof, Borrower is not required to obtain any consent, approval or
authorization from, or to file any declaration or statement with, any
governmental authority or other agency in connection with or as a condition to
the execution, delivery or performance of this Agreement or consummate any of
the transactions contemplated hereunder.

 

(c)                                  Borrower owns a fee simple estate in and
to the Innisbrook Real Property, subject only to Innisbrook Permitted
Exceptions.

 

(d)                                 Condo LLC owns a fee simple estate in and
to the Condo Property, subject only to the Condo Property Permitted Exceptions.

 

(e)                                  Borrower has full right, title and
interest in and to the GTA Stock Interests and has not transferred, pledged or
hypothecated the GTA Stock Interests other than pursuant to the Pledge
Agreement.

 

(f)                                    The Vested Rights (including, without
limitation, the right to develop 139 residential units on the Resort Property
or such greater number of units, if any, to which Borrower, Guarantor, GH
Management and/or Condo Owner may have vested rights to develop, including,
without limitation, the Unused Parcel F Units) shall be assigned to GTA-IB by
Borrower, Guarantor, GH Management and Condo Owner, pursuant to that certain
assignment agreement, a form of which is attached hereto as Exhibit J-3,
(the “Vested
Rights

 

18

 

Assignment”), and none of Borrower, Guarantor, GH
Management and Condo Owner, or their affiliates, shall impair or in any way
diminish the Vested Rights, including, without limitation, GTA-IB’s legal
standing, if any, to enforce the Vested Rights without qualification or
condition.  Notwithstanding the
foregoing, it shall not be considered an impairment or diminishment of the
Vested Rights under this Agreement if the following occur: (i) if there is a
final, non-appealable, judicially imposed reduction of the Vested Rights; or
(ii) if the number of residential units permitted to be developed in connection
with Vested Rights is decreased by ten percent (10%) or less (i.e., if
the 139 units permitted to be developed is decreased by 13 or fewer units).

 

(g)                                 To Borrower’s knowledge, there are no
permits, approvals, and allocations relating to the Real Property or other
similar documents other than the Permits.

 

(h)                                 To Borrower’s knowledge, there exist no surveys,
plans, maps, specifications, drawings and other similar documents, relating to
the Real Property and owned by or in the possession of Borrower or its
affiliates other than the Plans and Specifications.

 

(i)                                     There exist no employment agreements,
commitments, equipment leases, guarantees, contracts, undertakings, and
arrangements entered into by Borrower or anyone on Borrower’s behalf, whether
written and oral, relating to the Property other than the Contracts.

 

(j)                                     To Borrower’s knowledge, there exist no
rental agreements and leases entered into by Borrower or anyone on Borrower’s
behalf, whether written and oral, relating to the Property other than the
Leases.

 

(k)                                  Borrower has delivered to Lender true,
correct and complete originals or copies of all Contracts, Permits, Leases,
Pinellas County Contracts, Wall Springs Contracts, Plans and Specifications,
Warranties and Guaranties, and Insurance Policies in Borrower’s or its
affiliates’, agents’, consultants’, employees’ or contractors’ possession.

 

(l)                                     Borrower is not a party to any contract
or agreement with Resort Manager or SAM, or any of their respective affiliates,
other than the Current Management Contract or the Westin Management Agreement.

 

(m)                               The Closing Date Balance Sheet (as
defined below) shall reflect a true, correct and complete presentation, in all
material respects (i.e., material respects shall mean an amount
exceeding Twenty Thousand Dollars ($20,000) in the aggregate), of the assets
and liabilities relating to Borrower and the Property as of the Closing Date, including,
without limitation, the amount of real property taxes and real property tax
appeal consequences (including, without limitation, all related reasonably and
actually incurred legal fees, penalties, interest and other directly related
reasonably and actually incurred third-party costs, which amounts shall not
exceed, in the aggregate, One Million Thirty Thousand Nine Hundred Dollars
($1,030,900) respecting the Property which have accrued or become payable as of
the Closing Date.

 

(n)                                 Borrower and Guarantor are represented by
legal counsel of their choice, are fully aware of the terms contained in this
Agreement, and have voluntarily and without coercion or duress entered into
this Agreement and the documents executed in connection with this Agreement.

 

19

 

(o)                                 Neither Borrower nor Guarantor shall at
any time solicit, directly or indirectly, any person or persons employed at the
Property for a period of five (5) years after the Closing Date; provided, however,
that if a sale or refinancing of the Innisbrook Real Property is being marketed
or pending at the expiration of that period, the five (5) year period shall be
automatically extended for an additional one (1) year.

 

(p)                                 After giving effect to the Borrower
Release and the Resort Manager Release and excluding any potential liability
arising from the Lawsuits, the transfers of the Property and the GTA-Stock
Interests to GTA-IB and the assumption of liabilities by GTA-IB will not render
Borrower insolvent.

 

(q)                                 Borrower has made adequate provision for
the payment of all liabilities of Borrower (including, without limitation, the
liabilities of Borrower to Resort Manager) other than its liabilities to Lender
and those liabilities to be assumed by GTA-IB pursuant to the terms of this
Agreement.

 

(r)                                    Neither Borrower nor Guarantor have
entered into this transaction to provide preferential treatment to Lender,
GTA-IB or any other creditor of Borrower or Guarantor in anticipation of
seeking relief under the Bankruptcy Code, as amended.

 

(s)                                  The only individuals employed by Borrower
and Condo Owner and their affiliates with respect to the Property (including
the officers of Borrower and Condo Owner and those individuals on leave of
absence or layoff status) are those listed on Schedule 6.1(s)
attached hereto (the “Employees”).

 

(t)                                    Other than those rights and benefits
listed on Schedule 1.1(r), there are no other contractual, real
property or other rights or benefits of Borrower or Guarantor or their
respective affiliates that exist in any form respecting Parcels J-1, J-2 or
K.  Other than those consents and
notices listed on Schedule 6.1(t)-1, there are no Consents or
Notices (defined below) required to be executed or delivered in connection with
an assignment of any Property to GTA-IB. 
Other than those agreements and contracts set forth in Schedule 6.1(t)-2,
there are no other agreements or contracts or understandings, written or
otherwise, relating to the sale of Parcels J-1, J-2 and K by Borrower (the “Parcel J and K Contracts”).  For the purposes of this paragraph, “Consents and Notices” shall mean those
consents and notices required under those certain contracts, agreements or
understandings, excepting those contracts, agreements or understandings
which:  (i) shall have a commercial
value or cost of less than Ten Thousand Dollars ($10,000) individually,
provided that the collective commercial value or cost of all such contracts,
agreements and understandings meeting the aforesaid monetary criterion shall
not exceed Fifty Thousand Dollars ($50,000) in the aggregate; or (ii) may be
terminated at any time with no cost or penalty; or (iii) have a term of
less than thirty (30) days and may be cancelled without cost or penalty at the
expiration of that period.  Notwithstanding anything
contained in this Section 6.1(t), in no event shall Borrower have any
liability with respect to any contract or obligation which requires a Consent
or Notice if GTA-IB does not terminate or attempt to terminate such contract or
obligation.

 

(u)                                 All amounts required to be funded to the
retirement accounts relating to the Targeted Employees and Other Employees (the
“Retirement Accounts”) are fully
funded

 

20

 

and no Retirement Account or amount contained there
has been pledged, encumbered or hypothecated.

 

(v)                                 Any Parcel F Contract delivered to GTA-IB on or prior
to the Closing Date, (together with true, correct and complete copies of all
attachments thereto) is (1) a true, correct and complete original thereof,
enforceable against the parties thereto, and (2) no side letters or other
modifications thereto exist.

 

(w)                               There is no action, suit or proceeding,
or any governmental investigation or any arbitration, in each case pending or,
to the knowledge of Borrower, threatened against Borrower, GH Securities or the
Property before any governmental or administrative body, agency or official
which if adversely determined would affect the use and operation of the
Property or the business, financial condition or results of operations of
Borrower, GH Securities or the Property except for the Klosterman Litigation or
as set forth on Schedule 6.1(w) hereof.  In addition, none of Borrower, Guarantor, GH Securities, GH
Management or the Condo Owner, nor their respective affiliates, are aware
of any right to commence, have commenced, or intend to commence any legal
action, administrative proceeding, arbitration, or mediation before any
governmental or administrative body, agency or official in any way relating to
the Property or the business, financial condition or results of operations of
the Property, except for the Klosterman Litigation or as set forth on Schedule 6.1(w)
hereof (all such matters listed on Schedule 6.1(w) are collectively
the “Litigation”). Any future
legal actions, administrative proceedings, arbitrations, or
mediations commenced by such parties in any way relating to the Property
or the business, financial condition or results of operations of the Property
shall be referred to as the “Future Litigation.”  Borrower has delivered true, correct and
complete copies of all existing pleadings, court documents, deposition
transcripts, legal memoranda and settlement proposals in respect of the
Lawsuits, the Klosterman Litigation and the Litigation to GTA-IB and its
counsel, unless such delivery would waive attorney-client privilege (and
Borrower has informed GTA-IB and its counsel in writing when it has asserted
such attorney-client privilege).

 

(x)                                   Borrower is not aware of any payments in
the nature of Termination Payments which Borrower has not disclosed in writing
to Lender, and such writing shall make specific reference to this Agreement.

 

(y)                                 The Current Troon Agreement (i) is
the only agreement relating to the management and/or operation of the Innisbrook
Golf Courses, other than the Troon Management Agreement, (ii) has not been
modified or amended, and (iii) has not been extended or renewed by
Borrower, except insofar as it is currently being extended on a month to month
basis.

 

(z)                                   Neither Borrower nor Resort Manager has,
since January 1, 2001, applied any revenues, assets and/or credit
capacities of the Resort Property other than to costs, expenses and
improvements specifically relating to the Resort Property.

 

(aa)                            As of the Effective Date, Schedule 6.1(aa)-1
attached hereto is a true, correct and complete description of the job titles,
employment dates and aggregate annual cash compensation (all such information
shall be accurate as of the Effective date) for each of the Employees.  As of the Effective Date, except as
specifically set forth on Schedule 6.1(aa)-1

 

21

 

attached hereto, (a) Borrower does not have any
outstanding loan from or to any affiliate, or any agent or Employee, and
(b) no material representations, warranties or covenants have been made
to, or agreements have been reached with, any Employee in material variance
with the provisions of the employee manual with respect to their employment,
compensation or benefits.  No Employee
has given written notice as of the Effective Date of their plans to terminate
employment with Borrower during the twelve (12) months subsequent to the
Effective Date.  Schedule 6.1(aa)-2
attached hereto sets forth a list of each Employee who has a management, employment
or bonus contract, or contract for personal services with Borrower.

 

(bb)                          Schedule 6.1(bb) attached hereto contains a true, correct
and complete list of all employee benefit, bonus, auto allowance, consulting,
change in control, fringe benefit plans and collective bargaining, employment
or severance agreements or other similar arrangements, whether or not subject
to ERISA (including any funding mechanism therefor now in effect or required in
the future as a result of the transactions contemplated by this Agreement or
otherwise), whether formal or informal, oral or written, legally binding or
not, under which any Employee or Other Employee has any present or future right
to benefits sponsored or maintained by Borrower or to which Borrower is a party,
is required to make any contribution, or by which any of them is bound, or with
respect to which any of them has any liability or obligation, including,
without limitation, (i) any profit-sharing, deferred compensation, bonus, stock
option, stock purchase, or other equity-based compensation, pension, retainer,
consulting, retirement, severance, plant closing, loan or loan guarantee,
change in control, welfare or incentive plan, agreement or arrangement, (ii)
any plan, agreement or arrangement providing for “fringe benefits” or
perquisites to any Employee or Other Employee officers, directors or agents,
including, without limitation, benefits relating to automobiles, clubs,
vacation, child care, parenting, sabbatical, sick leave, medical, dental,
hospitalization, life insurance and other types of insurance, (iii) any written
employment agreement, or (iv) any other “employee benefit plan” (within the
meaning of Sections 3(3) and
3(37) of ERISA, including, without limitation, multiemployer plans) (each, a “GHR Employee Plan,” and collectively, the “GHR Employee Plans”).  There has been no amendment to the GHR
Employee Plans since January 1, 2001, which is the date on which Borrower
delivered copies of the GHR Employee Plans to GTA-IB. Other than those rights and
obligations contained in the GHR Employee Plans as of the Closing Date,
notwithstanding anything to the contrary, nothing in this Agreement or
otherwise shall create any additional rights (or expand any existing rights) of
any person or beneficiary in connection with the GHR Employee Plans.

 

(cc)                            Borrower has made available to Lender
true, correct and complete copies of (i) all material documents and
existing written summary plan descriptions (and written descriptions of any
oral GHR Employee Plans) with respect to the plans, agreements and arrangements
listed on Schedule 6.1(cc), (ii) each trust agreement, annuity or
insurance contract, or other funding instrument, if any, pertaining to each GHR
Employee Plan, (iii) the most recent annual report (IRS Form 5500 Series),
including all schedules to such reports, if applicable, filed with respect to
each GHR Employee Plan for which such a filing is required, (iv) the most
recent determination letter, if applicable, and (v) the most recent plan
audits, financial statements, and accountant’s opinion (with footnotes) for
each GHR Employee Plan.

 

(dd)                          With respect to each current GHR Employee
Plan maintained, or contributed to by any entity which either is currently or
was previously under common control

 

22

 

with any Borrower as determined under Section 414
of the Code or Section 3(5) of ERISA, to Borrower’s knowledge, no event
has occurred and no condition exists that after the Effective Date could
reasonably subject GTA-IB or Lender, directly or indirectly, by reason of their
affiliation with any member of their controlled group to any tax, fine, lien,
penalty or other liability (including liability under any indemnification
agreement) under applicable laws, rules and regulations imposed by ERISA.

 

(ee)                            To Borrower’s knowledge, (a) all material
contributions and material payments to or with respect to each GHR Employee
Plan have been timely made, and (b) Borrower made adequate provision for
reserves to satisfy all contributions and payments that have not been made
because they are not yet due under the terms of such GHR Employee Plan or
related arrangement, document or applicable law.

 

(ff)                                To Borrower’s knowledge, no GHR Employee
Plan provides for any accelerated payments, deemed satisfaction of goals or
conditions, new or increased benefits, forgiveness or modification of loans or
vesting conditioned in whole or in part upon a change in control of Borrower,
or otherwise as a result of the execution of this Agreement or the transactions
contemplated by this Agreement.

 

(gg)                          No agreement, commitment or obligation
exists to increase any benefits under any GHR Employee Plan or to adopt any new
GHR Employee Plan.

 

(hh)                          No GHR Employee Plan shall have any
unfunded accrued benefits that are not fully reflected in the Closing Date
Balance Sheet (including, without limitation, any accruals or reserves or other
provisions for any liabilities that may be triggered upon any change in control
of Borrower) and, to Borrower’s knowledge, no “reportable event” (as such term
is defined in ERISA section 4043) or “accumulated funding deficiency” (as
such term is defined in ERISA section 302 and Code section 412
(whether or not waived)) has occurred with respect to any GHR Employee Plan.

 

(ii)                                  GH Securities (i) is a duly organized and
validly existing corporation in good standing under the laws of the state of
Florida, (ii) is duly qualified as a foreign entity in each other jurisdiction
in which its business is conducted, if any, (iii) has the requisite entity
power and authority to carry on its business as now being conducted.  Guarantor has full right, title and interest
in and to the GH Securities Stock Interests and has not transferred pledged or
hypothecated the GH Securities Stock Interests.  Guarantor has the requisite entity power to execute and deliver,
and perform its obligations hereunder. 
The GH Securities Stock Interests constitute 100% of the capital stock
of GH Securities, and there are no outstanding options to purchase, or securities
convertible into, equity interests in GH Securities, nor any obligation to
issue any of the foregoing.  Delivery of
the GH Securities Stock Interest Transfer Documents will transfer to GTA-IB
good and valid title to the GH Securities Stock Interests, free and clear of
all liens and encumbrances, except as created by this Agreement.  As of the Closing Date, Borrower, Guarantor
and GH Securities, as applicable, shall have timely filed all required filings
with the Securities and Exchange Commission (and shall have agreed to file all
subsequent required filings with the Securities and Exchange Commission or
NASD, as applicable, respecting any period prior to the Closing Date),
including the notice to be provided to the

 

23

 

NASD which Lender shall provide to Borrower, or its
affiliates, for Borrower, or its affiliates, to provide to the NASD;

 

(jj)                                  Other than those rights and benefits
listed on Schedule 1.1(s)-2, there are no other contractual, real
property or other rights or benefits of Borrower or Guarantor, or their
respective affiliates, that exist in any form respecting the Pinellas County
Land. Other than those consents and notices listed on Schedule 6.1(jj)-1,
there are no consents or notices required to be executed or delivered in
connection with an assignment of any Pinellas County Rights to GTA-IB.  Other than those agreements and contracts
set forth in Schedule 6.1(jj)-2, there are no other agreements or
contracts or understandings, written or otherwise, relating to the Pinellas
County Rights (the “Pinellas County Contracts”).  Other than those rights and benefits listed
on Schedule 1.1(t)-2, there are no other contractual, real property
or other rights or benefits of Borrower or Guarantor, or their respective
affiliates, that exist in any form respecting the Wall Springs Land. Other than
those consents and notices listed on Schedule 6.1(jj)-3, there are
no consents or notices required to be executed or delivered in connection with
an assignment of any Wall Springs Rights to GTA-IB.  Other than those agreements and contracts set forth in Schedule 6.1(jj)-4,
there are no other agreements or contracts or understandings, written or
otherwise, relating to the Wall Springs Rights (the “Wall Springs Contracts”).

 

(kk)                            None of Borrower, Guarantor, GH
Management or Condo Owner, or their respective affiliates, have made or entered
into any agreements, side letters or understandings, written or otherwise, that
conflict with, result in a breach of, or constitute (with due notice or lapse
of time or both) a default under this Agreement, the Defense and Escrow
Agreement or that certain Operational Benefits Agreement which Borrower,
Guarantor, GTA-IB and Lender intend to enter into concurrently with the execution
of this Agreement, providing that it shall be in form and substance acceptable
to such parties (“Operational Benefits
Agreement”).

 

(ll)                                  Other than the Property, there exists no
other right, title and interest in and to any and all real or personal property
or contracts or other rights or benefits of Borrower, Guarantor, GH Management,
Condo Owner, or their respective affiliates, in any way relating to the
Property, or its operation or use.

 

(mm)                      Each of the Equipment Leases, the Real
Property Leases, the Contracts, the Plans and Specifications, the Warranties
and Guaranties and the Insurance Policies, Permits, Parcel J and K Contracts,
Pinellas County Contracts and Wall Springs Contracts delivered to GTA-IB in
connection with this Agreement, are true, correct and complete copies of such
documents.

 

6.2.                              GTA-IB Representations. 
GTA-IB represents, warrants, acknowledges, and agrees with Borrower that
as of the Effective Date:

 

(a)                                  GTA-IB (i) is a duly organized and
validly existing limited liability company in good standing under the laws of
the state of its formation, (ii) is duly qualified as a foreign entity in each
jurisdiction, if any, in which the nature of its business, or the location of
the Property makes such qualification necessary or desirable, (iii) has the
requisite entity power and authority to carry on its business as now being
conducted, and (iv) has the requisite entity power to execute and deliver, and
perform its obligations hereunder.

 

24

 

(b)                                 The execution and delivery by GTA-IB of
this Agreement and the performance of its obligations hereunder (i) have been
duly authorized by all requisite entity action on the part of GTA-IB, (ii) will
not violate any provision of any applicable legal requirements, any order,
writ, decree, injunction or demand of any court or other applicable
governmental authority with jurisdiction over GTA-IB or the Property, any
organizational document of GTA-IB or any indenture or agreement or other
instrument to which GTA-IB, or by which GTA-IB is bound, (iii) will not be in
conflict with, result in a breach of, or constitute (with due notice or lapse
of time or both) a default under, or result in the creation or imposition of
any lien of any nature whatsoever upon any of the property or assets of GTA-IB
pursuant to any indenture or agreement or instrument, and (iv) has been duly
executed and delivered by GTA-IB.  The
Agreement is enforceable against GTA-IB according to its terms.  Except for those obtained or filed on or
prior to the date hereof, GTA-IB is not required to obtain any consent,
approval or authorization from, or to file any declaration or statement with,
any governmental authority or other agency in connection with or as a condition
to the execution, delivery or performance of this Agreement.

 

(c)                                  Lender is the owner and title holder of
the Loan, the Note, the Mortgage, the Guaranty and the other Loan Documents.

 

6.3.                              Definition of Knowledge. 
For the purposes of this Agreement, the phrase “To Borrower’s knowledge”
and phrases and terms of similar import shall be limited to the actual
knowledge of Keith Wilt, Merrick R. Kleeman and Robert Geimer.

 

6.4.                              Survival.  All of
Borrower’s and GTA-IB’s representations and warranties in this Agreement shall
be deemed given as of the Effective Date, and shall be deemed to have been
remade as of the Closing Date.  All of
the aforesaid representations and warranties shall survive the Closing Date for
a period of one year therefrom, and any and all claims for indemnification
resulting from any misrepresentation or breach of such representations or
warranties shall be deemed to have been waived unless the party making such
claim delivers written notice thereof to the other party within such one-year
period; provided, however that the representation and warranty respecting real
property tax matters in appeal as of the Closing Date and set forth in
Section 6.1(m) above shall survive the Closing Date without limitation.

 

ARTICLE VII

 

Covenants

 

7.1.                              No Defenses, etc. 
Borrower for itself and its respective successors and assigns, and by
its execution hereof, hereby acknowledges, admits and agrees that, as of the
Effective Date, there are no defenses, counterclaims or offsets relating to
their respective obligations under or in respect of the Loan Documents or to
the enforcement or exercise by Lender of any of its rights, powers or remedies
under or in respect of the Loan Documents.

 

7.2.                              Balance Sheet.

 

(a)                                  On the Closing Date, Borrower shall
deliver to GTA-IB a balance sheet of Borrower to be dated as of the Closing
Date, and which shall have been approved in writing by

 

25

 

GTA-IB in its sole discretion, (and attached to this
Agreement as Schedule 7.2(a)) reflecting, in all material respects
(i.e., material respects shall mean an amount exceeding Twenty Thousand
Dollars ($20,000) in the aggregate), the assets and liabilities of Borrower
related to the Property, including, without limitation, all real property taxes
and real property tax appeal consequences (including, without limitation, all
related reasonably and actually incurred legal fees) that have accrued or
become payable with respect to the period prior to the Closing Date, and which
contains detailed schedules of the line items shown thereon as of the Closing
Date (together with all footnotes and schedules thereto, as approved in writing
by GTA-IB in its sole discretion, the “Closing
Date Balance Sheet”).  The
Closing Date Balance Sheet shall reflect the then current assets and
liabilities.  It shall be a condition of
Lender’s obligations to consummate the transactions set forth in this Agreement
and to execute and deliver the Conveyance Documents that (i) all cash flow
generated from the operation of the Property from and after May 31, 2002 shall
have been used by Borrower and Resort Manager, subject to Section 7.2(b)
hereof, for the benefit of the Property or Lender, (ii) Borrower shall deliver
to Lender on the Closing Date the Closing Date Balance Sheet of Borrower dated
as of the Closing Date which (A) accurately reflects, in all material
respects, the financial condition of the Property as of the Closing Date,
(B) has been approved by GTA-IB, in its sole, reasonable discretion, on or
before the Closing Date, and (C) which has been countersigned by an
authorized representative of each of the parties hereto, (iii) the Closing
Date Balance Sheet shall reflect that the amount due and payable to Resort
Manager shall not exceed Four Hundred Thirty-Four Thousand Dollars ($434,000) (i.e.,
the amount accruing prior to January 1, 2002, and unpaid as of the Closing
Date) and any then earned fees and unpaid amounts owed to the Resort Manager,
(iv) the Closing Date Balance Sheet shall state that the then current amount
owed by Borrower to Resort Manager pursuant to that certain Agreement Re
Guaranty of Funds dated as of May 7, 1997 between Borrower and Resort Manager
(the “Resort Manager Guaranty”)
equals no more than Ten Million Two Hundred Sixty-Five Thousand Dollars
($10,265,000) (which shall include amounts advanced by Resort Manager as
described in Section 7.2 (b) (ii)). 
Furthermore, if any real property taxes and/or real property tax appeal
consequences (including, without limitation, all related reasonably and
actually incurred legal fees) related to the period from January 1, 1998 through May 31, 2002, inclusive,
accrue or become payable before or after the Closing Date (the “Real
Property Taxes and Consequences”), subject to the Indemnified Amount
limitation described in Section 10.3(c), Borrower and Guarantor shall be
jointly and severally obligated to pay the same and shall jointly and severally
indemnify, defend and hold harmless each of the GTA Parties, from and against
any and all such Real Property Taxes and Consequences, including, without
limitation, penalties, fines, interest, legal fees, etc., and any other related
costs, expenses (including, without limitation, legal fees, penalties, interest
and other directly related reasonably and actually incurred third-party costs,
which amounts shall not exceed, in the aggregate, One Million Thirty Thousand
Nine Hundred Dollars ($1,030,900) (collectively, the “Indemnified Tax Amount”).

 

(b)                                 Lender recognizes, acknowledges, agrees
and consents that in order for Borrower to meet the requirements of
Section 7.2 (a), (i) until the Closing Date, Borrower shall direct and
permit Resort Manager to apply cash flow from the Resort Property to the
payment of amounts that are due and owing from Borrower to Resort Manager for
services rendered by the Resort Manager with respect to the Resort Property
only and payable pursuant to the express terms of the Management Contract
(other than amounts due Resort Manager arising from payments by Resort Manager
under the Resort Manager Guaranty) and (ii) Resort Manager shall,

 

26

 

during 2002, have advanced One Million Two Hundred
Fifty Thousand Dollars ($1,250,000) pursuant to the Resort Manager Guaranty,
which amount is reflected on the Closing Date Balance Sheet as having been
applied to pay a portion of the amounts due and owing to Resort Manager.

 

(c)                                  Upon closing hereunder, (i) Borrower
shall have no liability with respect to (i) any obligations arising on or after
the Closing Date in connection with the ownership and operation of the
Property, and (ii) those liabilities set forth or provided for on the
Closing Date Balance Sheet or otherwise in this Agreement.  Nothing contained in this Agreement or in
the Defense and Escrow Agreement shall be deemed an assumption by GTA-IB of any
liabilities relating to the ownership, operation or maintenance of the Property
prior to the Closing Date other than with respect to those that are expressly
included or provided for on the Closing Date Balance Sheet pursuant to Section 7.2(a)
hereof or otherwise in this Agreement.

 

7.3.                              Property Operations. 
Until the Closing Date occurs, Borrower shall cause the Resort Manager
to operate the Property in substantially the manner as the Property is being
operated as of the Effective Date.  In
connection therewith, notwithstanding anything to the contrary contained in the
Loan Documents, from the Effective Date until the Closing Date, Borrower shall
not be obligated to make payments of principal and interest under the Note to
Lender, but instead, Borrower shall have the right to use, and to permit Resort
Manager to use, (a) proceeds from the operation of the Resort Property only to
pay third-party costs and expenses of operating the Property in the ordinary
course and to reduce the current liabilities as described in
Section 7.2(b) above and (b) following the delivery to Lender of
written notice thereof, make capital expenditures for the benefit of the Resort
Property in the ordinary course, utilizing amounts in the capital expenditure reserve;
provided, however, that Borrower shall not permit Resort Manager to make
capital expenditures in excess of $20,000 in the aggregate without GTA-IB’s
prior written consent which may be withheld or denied in GTA-IB’s sole
discretion.  Borrower agrees that it
shall not and it shall not permit the Resort Manager to enter into any
contracts or agreements with respect to the Resort Property which entail
expenditures by Borrower and/or the Resort Manager of amounts in excess of
$20,000, in the aggregate, without GTA-IB’s prior written consent in each
instance.  Proceeds from the operation
of the Property shall not be paid to Borrower or its affiliates.

 

7.4.                              Amendments of Agreements. 
Borrower shall not, without GTA-IB’s prior written consent in each
instance, amend or modify or consent to any amendment or modification of the
Defense and Escrow Agreement, the Troon Management Agreement (or the Current
Troon Agreement), the Westin Management Agreement (or the Current Westin
Management Contract), or any of the other Contracts, Leases, Permits, Plans and
Specifications, Warranties and Guaranties or Insurance Policies; provided,
however that Borrower may (i) amend the Original Bayfair Agreement, or (ii)
enter into an agreement for the sale of Parcel F in lieu of the Original
Bayfair Agreement in accordance with the terms of this Agreement.  Furthermore, Borrower may terminate the
Original Bayfair Agreement pursuant to the terms thereof at its sole
discretion, and Borrower shall provide written notice thereof to GTA-IB and its
counsel as soon as reasonably practicable thereafter.  Borrower specifically agrees not to extend or renew the Current
Troon Agreement (except to the extent that it is currently being extended on a
month-to-month basis) and that the accrued balance due to Troon as of May 31,
2002 will not be paid without GTA-IB’s prior written consent.

 

27

 

7.5.                              Lawsuits,
Klosterman Litigation, Litigation and Future Litigation.

 

(a)                                  From and after the Effective Date,
Borrower shall provide GTA-IB and its counsel with copies of all pleadings,
court documents, deposition transcripts, legal memoranda and settlement
proposals in respect of the Lawsuits, the Klosterman Litigation, the Litigation
and Future Litigation, to the extent that to do so would not waive
attorney-client privilege (provided that Borrower shall inform GTA-IB and its
counsel in writing when it asserts such attorney-client privilege), and shall
assign (or cause Guarantor, GH Management, Condo Owner or their affiliates, as
applicable, to assign) the Klosterman Litigation Interest to GTA-IB.  To the extent that GTA-IB (or one or more of
its affiliates) is substituted as plaintiff under any of the Klosterman Litigation
or Litigation, Borrower, Guarantor, GH Management and Condo Owner and their
respective affiliates shall reasonably cooperate with GTA-IB and/or its
affiliates and its counsel in the Klosterman Litigation or the Litigation, and
provide GTA-IB and its counsel with documents or information which may be
reasonably required by GTA-IB to enable, or assist in, the Klosterman
Litigation or the Litigation.

 

(b)                                 Borrower shall use commercially
reasonable efforts to enter into a joint defense agreement with GTA-IB and
Lender (“Joint Defense Agreement”)
to allow GTA-IB, Lender and their respective counsel to receive all copies of
all pleadings, court documents, deposition transcripts, legal memoranda,
settlement proposals and other information or documentation related to the
Lawsuits, including all such privileged information and documentation.

 

(c)                                  All right, title and interest in and to
any judgments, settlements, liens, recoveries, damages, moneys, property or
other value received by Borrower, Guarantor, GH Management or Condo Owner, or
their respective affiliates, resulting from any resolution, settlement, or
dismissal of any of the Litigation or in any way resulting from the claims
brought in connection with any of the Litigation or Future Litigation (such
right, title and interest, collectively, the “Litigation Interest”), shall
be included in the definition of Net Proceeds (as defined in the Defense and
Escrow Agreement) and dispersed in accordance with the Net Proceeds waterfall
provided in the Defense and Escrow Agreement. 
For the purposes of clarity under this Agreement and the Defense and
Escrow Agreement, the Klosterman Litigation Interest shall not form part of the
Litigation Interest.

 

7.6.                              Post Closing Cooperation. 
From and after the Effective Date and the Closing Date, Borrower and
Guarantor shall fully cooperate with GTA-IB to assign any of such parties’
rights, title and interest in and to any and all contracts, real or personal
property or other rights or benefits related to the Property or the use and
operation of the Property (including, without limitation, permits, licenses,
etc.).

 

7.7.                              No Transfer or Assignment. 
Except as provided in this Agreement, including, without limitation, the
provisions of Section 8.1, Borrower shall not (i) transfer or assign any
of its rights or assets, including, without limitation, any of its rights in or
to Parcel F or the Proceeds or Net Proceeds, or (ii) transfer or assign any
ownership interest in Borrower.

 

28

 

7.8.                              Indebtedness. 
Borrower shall not directly or indirectly incur any indebtedness without
GTA-IB’s prior written approval, in each instance, which GTA-IB may grant or
deny in its sole discretion; provided, however, that Borrower may:

 

(a)                                  secure Parcel F with a mortgage for an
aggregate amount equal to up to Four Million Dollars ($4,000,000), to provide
for settlement costs with Plaintiffs in the Lawsuits; provided, however, that if
the mortgagor is affiliated with any Borrower Parties, such mortgage shall be
subordinated to any obligation to GTA-IB or any affiliate thereof; and

 

(b)                                 incur indebtedness solely in the ordinary
course of Borrower’s business for purposes of operations at the Resort Property
only so long as such indebtedness shall (i) not exceed Five Hundred Thousand
Dollars ($500,000) in the aggregate, (ii) shall be repayable within thirty (30)
days of incurring the same, and (iii) not be secured by any of the Property or
any of Borrower’s assets, other than as described in (a) above (provided,
however, that if the mortgagor is affiliated with any Borrower
Parties, such mortgage shall be subordinated to any obligation to GTA-IB or any
affiliate thereof).

 

Notwithstanding anything
to the contrary, Borrower shall not encumber the Property or any of Borrower’s
assets with any mortgage, lien, pledge, security interest or any other device
intended to create an interest in property as security, (i) except as otherwise
provided in this Agreement, and (ii) except that Parcel F may be encumbered by
a mortgage for the benefit of Borrower in connection with the sale of Parcel F
to a third party in accordance with this Agreement.

 

7.9.                              Amendments.  From and
after the Effective Date, none of Borrower, Guarantor, GH Management, Condo
Owner, or their respective affiliates, shall amend, or agree to amend, any of
the Equipment Leases, the Real Property Leases, the Contracts, the Plans and
Specifications, the Warranties and Guaranties and the Insurance Policies,
Permits, Parcel J and K Contracts, Pinellas County Contracts, except with the
prior written consent of GTA-IB, and except that Borrower may (i) amend the
Original Bayfair Agreement, or (ii) enter into an agreement for the sale of
Parcel F in lieu of the Original Bayfair Agreement in accordance with the terms
of this Agreement and Borrower shall provide written notice thereof to GTA-IB
and its counsel as soon as reasonably practicable thereafter.  Furthermore, Borrower may terminate the
Original Bayfair Agreement pursuant to the terms thereof at its sole discretion,
provided that Borrower shall provide written notice thereof to GTA-IB and its
counsel as soon as reasonably practicable thereafter.

 

7.10.                        Other Agreements. From and after the Effective Date, none
of Borrower, Guarantor, GH Management or Condo Owner, or their respective
affiliates, shall make or enter into any agreements, side letters or
understandings, written or otherwise, that conflict with, result in a breach
of, or constitute (with due notice or lapse of time or both) a default under
this Agreement, the Defense and Escrow Agreement or the Operational Benefits
Agreement.

 

7.11.                        Vested Rights. None of Borrower, Guarantor, GH
Management and Condo Owner, or their affiliates, shall impair or in any way
diminish the Vested Rights, including, without limitation, GTA-IB’s legal
standing, if any, to enforce the Vested Rights without qualification or
condition.  Notwithstanding the
foregoing, it shall not be considered an

 

29

 

impairment or diminishment of the Vested Rights under
this Agreement if the following occur: (i) if there is a final, non-appealable,
judicially imposed reduction of the Vested Rights; or (ii) if the number of
residential units permitted to be developed in connection with Vested Rights is
decreased by ten percent (10%) or less (i.e., if the 139 units permitted
to be developed is decreased by 13 or fewer units).

 

7.12.                        Master Lease
Agreement.  To the extent that, and at the time that,
GTA-IB, Lender or any successor owner of the Property (a “Successor Property Owner”)
derives a cash savings under the Rental Pool Agreement (i.e., a
liquidated reduction in a liquidated financial obligation of GTA-IB) from the
settlement or final adjudication of the Ball Claims and, to the extent that
Successor Property Owner is not obligated to pay participants in the rental
pool pursuant to the terms of that certain Innisbrook Rental Pool Master Lease
Agreement effective as of January , 2002 (as amended from time to time)
(including, without limitation, by that First Addendum effective January 1,
2002; that certain Second Addendum dated December 2001; and by those
certain Annual Lease Agreements executed by certain lessors to adopt the
benefits and burdens of the Innisbrook Rental Pool Master Lease Agreement for
the relevant forthcoming year), then any amounts that the GTA Parties are
otherwise entitled to under Article 5.2 of the Defense and Escrow
Agreement shall be offset against the GTA Parties and allocated to Borrower by
an amount which represents thirty percent (30%) of such cash savings (i.e.,
a liquidated reduction in a liquidated financial obligation of GTA-IB) as
amended or adjusted and to the extent that it is actually realized.

 

7.13.                        Survival. The terms, covenants and obligations contained in
this Article VII shall survive the Closing Date.

 

ARTICLE VIII

 

Parcel F

 

8.1.                              Sale of Parcel F.

 

(a)                                  GTA-IB acknowledges that Borrower desires
that the real property known as Parcel F and described on Exhibit L
hereto (“Parcel F”) be sold to a
third party.  Parcel F is immediately
adjacent to, and surrounded by, the Real Property.  Borrower shall manage and conduct the sale of Parcel F on behalf
of Borrower and Lender and all deposits and proceeds from the sale of Parcel F
shall be deposited with and/or remitted directly to Chicago Title Insurance
Company (the “Escrow Agent”) and
shall be held and disbursed by the Escrow Agent strictly in accordance with the
Defense and Escrow Agreement.  Subject
to the terms of this Agreement, including, without limitation, Sections 8.2(b)
and 8.5, and the Defense and Escrow Agreement, Borrower shall have the right to
enter into any agreement for the sale of Parcel F with any purchaser.  Borrower and GTA-IB agree that on the
Closing Date, Borrower shall cause a memorandum of agreement between Borrower
and GTA-IB in the form attached hereto as Exhibit K-1 (the “Parcel F Memorandum of Agreement”)
to be recorded against Parcel F.

 

(b)                                 If at any time after the Effective Date,
Borrower desires to sell Parcel F to a bona fide, unaffiliated, creditworthy
third-party for a price less than Six Million Nine Hundred Thousand Dollars
($6,900,000) (an “Asset Sale”), Borrower (in, and only in,
such case of a sale

 

30

 

for a price less than Six Million Nine Hundred
Thousand Dollars ($6,900,000)) shall have the right to consummate the sale
thereof at that price provided Borrower shall first give to GTA written notice
thereof (an “Offer Notice”), which Offer Notice shall set forth the cash
price (the “ROFO Price”), Borrower would be willing to accept to
consummate such sale.  The Offer Notice
shall also set forth the following information with respect to the terms
Borrower would be willing to accept to consummate such sale (the “Other Terms”):  (i) the anticipated closing date; (ii) the
amount, if any, Borrower would be willing to finance (i.e., purchase
money financing in the form of a promissory note secured by Parcel F); (iii) a
form of deed which is substantially in the form which Borrower would provide
with respect to such sale; and (iv) the terms regarding the obligation (as
between Borrower and potential buyer) to pay the following closing costs:  title insurance stamp/transfer taxes.  Within sixty (60) days of receipt of an
Offer Notice (the “Exercise Period”), GTA shall have the right
to offer to purchase Parcel F at the ROFO Price and subject to the Other Terms
(except as regards the closing date which is set forth in the Offer Notice only
for informational purposes), by giving written notice of such election within
the Exercise Period (the “ROFO Election”), which offer shall be
irrevocable and accompanied by a non-refundable deposit equal to five percent
(5%) of the ROFO Price, subject to Borrower’s performance.

 

(c)                                  If GTA does not timely make a ROFO
Election, GTA shall be deemed to have elected not to purchase Parcel F.  If no timely ROFO Election is made by GTA,
Borrower shall be free to initiate and consummate the Asset Sale within one
hundred eighty (180) days after the expiration of the Exercise Period at a
price determined by Borrower, but which price must in no event be less than
ninety-five percent (95%) of the ROFO Price and, except as set forth herein,
subject to the Other Terms.  The parties
hereto agree that the amount of financing, if any, provided by Borrower as well
as the terms regarding the obligation to pay the closing costs (title insurance
and stamp/transfer taxes) may differ by five percent (5%) from that set forth
in the Other Terms without any obligation of Borrower, or right of GTA,
triggered by virtue of such deviations from the Other Terms.  Such Asset Sale shall be consummated within
nine (9) months after the expiration of the Exercise Period.

 

(d)                                 If GTA has timely delivered a ROFO
Election, Borrower shall accept such offer at the ROFO Price and subject to the
Other Terms set forth in the Offer Notice. 
Borrower and GTA shall consummate the ROFO Sale on an “as is” and “where
is” basis, except for materially, but not necessarily exactly, the warranties,
if any, contained in the form of deed which is part of the Other Terms, within
ninety (90) days after the date of the ROFO Election.  If GTA has timely delivered a ROFO Election, but thereafter the
sale contemplated thereby fails to close within a sixty (60) day period by reason
of GTA’s sole default (and not any default by Borrower), then GTA shall be in
material default under this provision hereof (and no others) and the five
percent (5%) deposit shall be forfeited as Borrower’s sole remedy and as GTA’s
sole liability.  In the event of GTA’s
material default hereunder as aforesaid, which GTA has not substantially cured
after written notice from Borrower and the passage of a cure period of not to
exceed ten (10) business days, without limiting any of the rights of Borrower
or GTA hereunder, at law or in equity, Borrower shall have the right to
consummate the ROFO Sale described in the Offer Notice to non-affiliated third
parties for a cash price determined by Borrower (without regard to the ROFO
Price) and on such other terms and conditions as Borrower reasonably determines,
and shall have a nine (9) month period to consummate such or any other ROFO
Sale.

 

31

 

Further, GTA shall not thereafter be entitled to give
a ROFO Election and Borrower shall have no further obligations whatsoever under
this provision.

 

(e)                                  Promptly after the execution of a
contract for an Asset Sale, Borrower shall deliver to GTA a true, correct and
complete copy of the contract therefor (including all exhibits and schedules).

 

(f)                                    If an Asset Sale is not initiated or
consummated within the nine (9) month period described above, the rights of GTA
under this Section 8.1, provided it has not defaulted hereunder (and such
default has not been cured), shall be fully restored and reinstated.

 

(g)                                 Subject to GTA’s rights set forth herein
and otherwise, with respect to an Asset Sale, Borrower shall have the right to
execute customary contracts, agreements or certifications to effectuate the
consummation of the Asset Sale.

 

8.2.                              Execution of Certain Documents.

 

(a)                                  In order to permit the sale of Parcel F,
Borrower, Lender and Innisbrook F, LLC (formerly known as Bayfair Innisbrook,
L.L.C.), entered into that certain Parcel F development agreement, dated
March 29, 2004 (the “Parcel F
Development Agreement”), which, among other matters, (i) describes
certain cross easement rights and obligations between the Innisbrook Real
Property and Parcel F and the terms and conditions pursuant to which Innisbrook
F, LLC, or a replacement buyer shall perform construction on Parcel F, and
(ii) sets forth the covenants, conditions and restrictions describing the
rights and relationships among lot owners and the to-be-formed association with
respect to Parcel F. 
Notwithstanding anything to the contrary, the Parcel F Development
Agreement shall not be modified without the consent of Lender, subject to the
provisions of Section 8.3. 
Borrower shall provide Lender with a true, correct and complete list of
all members (and the constituent members thereof) of Innisbrook F, LLC, as
the same may change from time to time.

 

(b)                                 Notwithstanding anything to the contrary,
but subject to Section 8.3, none of GTA-IB, Lender or their respective
affiliates shall be obligated or required in any way to negotiate or enter into
the Parcel F Development Agreement, or any similar agreement respecting Parcel
F, if Borrower enters into an agreement for the purchase and sale of Parcel F
and such agreement materially and adversely modifies the terms of the Original
Bayfair Agreement in the sole discretion of GTA-IB or its affiliates. As used
in this Section, “materially and adversely” shall mean, (i) any violation by
Borrower of the provisions of Section 8.3; (ii) Borrower agrees to sell
Parcel F to a purchaser other than one with a good business reputation in real
estate development, reasonable experience in real estate development for the
type of project being considered, and good credit; or (iii) in the event that
any of GTA-IB or Lender’s rights are materially diminished or obligations
materially increased.  Subject to the
terms of the Original Bayfair Agreement, the parties hereto shall not object to
Bayfair Properties, Inc. (to the extent it is controlled and majority owned by
J. Michael Morris) or another entity controlled and majority owned by J. Michael
Morris, as a purchaser of Parcel F, absent any materially and adversely changed
circumstances.

 

32

 

8.3.                              Further Cooperation. 
Subject to the provisions of this Agreement, including without
limitation, Section 8.2 above, in addition to executing and/or causing
Lender to execute the documents described in Section 8.2 above, as
appropriate, from and after the Closing Date, GTA-IB shall, at Borrower’s sole
cost and expense, reasonably take such actions (including execution of
documents):

 

(a)                                  to cause any reasonable changes to the
foregoing agreements that do not, when compared to the effect of the documents
described in Section 8.2 have an adverse effect on the Property
(including, without limitation, any cost to GTA-IB or contingent liabilities or
future obligations of GTA-IB), the use and operation thereof and the related
golf experience, including, without limitation, the health and safety matters
affecting the golf course, golfers and contiguous property owner; the
playability of the golf course; and the physical and visual quality of the golf
experience, and are not inconsistent with any currently existing agreements or
undertakings to current or future members of the Innisbrook Resort that may be
requested by a future purchaser of Parcel F;

 

(b)                                 to assist Borrower at Borrower’s expense
in its attempt to renew and obtain entitlements to permit the development of
Parcel F by any potential buyer, provided that such entitlements do not:

 

(i)                                     have an adverse effect on the development
contemplated in the documents described in Section 8.2 (when compared to
the effect of the permissible terms of the agreements described in
Section 8.2);

 

(ii)                                  adversely affect the Innisbrook Golf
Courses (when compared to the permissible terms of the agreements described in
Section 8.2); or

 

(iii)                               contradict the terms and provisions of (x) any
and all agreements between Lender, Borrower and/or GTA-IB, including, without
limitation, this Agreement, (y) all other existing agreements applicable
to the Property, including, without limitation, existing undertakings to
existing members, and/or (z) the terms of Section 7.11 hereof; and

 

(c)                                  revise the Parcel F Development Agreement
to name a different purchaser of Parcel F, subject to the provisions of
Section 8.2 above.

 

Nothing contained in this Agreement shall (i) affect
any notice or consent rights of Lender pursuant to any of the Loan Documents,
(ii) require Lender and/or GTA-IB to consent to any modification to the Parcel
F Development Agreement  which
shall adversely affect or modify the nature, character, use or development of
the Property, or (ii) adversely affect or modify the Vested Rights or alter the
density rights at the Property.

 

8.4.                              Proceeds of Sale of Parcel F. 
In consideration of GTA-IB’s entering into this Agreement and accepting
the Conveyance Documents and cooperating with the sale of Parcel F as provided
in this Article VIII, all amounts received from the sale of Parcel F,
if any, shall be distributed to Borrower and Lender by the Escrow Agent as
described in the Defense and Escrow Agreement.

 

33

 

8.5.                              Restated Bayfair Agreement. 
Notwithstanding the provisions of Sections 8.1 and 8.2 above, Borrower
shall use commercially reasonable efforts to enter into and to cause Bayfair
Properties, Inc. to enter into an amended and restated version of the Original
Bayfair Agreement with Bayfair, which agreement contains the same terms for the
sale of Parcel F as the Original Bayfair Agreement (together with any
amendments thereto) (the “Restated Bayfair
Agreement”).

 

8.6.                              Survival.  The terms,
covenants and obligations contained in this Article VIII shall survive the
consummation of the transactions contemplated in this Agreement.

 

ARTICLE IX

 

Merger

 

9.1.                              Present Conveyance; No Merger. 
Borrower and GTA-IB agree that the delivery of the Conveyance Documents
in accordance with the terms hereof constitutes a present and absolute
conveyance of the Property not subject to a condition subsequent (except as
otherwise provided herein).  It is
Borrower, GTA-IB and Lender’s intent that such delivery shall (a) constitute
and be deemed a present conveyance, (b) not be construed as a security interest
in or lien upon the Property, and (c) not be deemed to merge the interest of
GTA-IB, as owner of the Property under the Deed, with the interest of Lender,
as mortgagee under the Mortgage. 
Borrower represents that it has sought the advice of counsel in connection
with this transaction has explored various alternatives to the transactions
contemplated hereby and determined that it is in its interest to enter into
this transaction, and understands that by entering into this Agreement Borrower
may be relinquishing certain rights or remedies it may otherwise have under the
Loan Documents or under Florida law.

 

9.2.                              Mortgage Lien to Continue. 
Notwithstanding the fact that GTA-IB, by virtue of recording the Deed,
will obtain title to the Property, the Mortgage and all other applicable loan
documents evidencing, relating to or securing the Loan shall remain liens
against the Property, shall remain in full force and effect, and unmodified
hereby, and no merger of the interests of GTA-IB, as owner under the Deed, and
its affiliate, Lender, as mortgagee under the Mortgage, shall occur.  GTA-IB’s acceptance of the Conveyance
Documents will not constitute a full or partial satisfaction or release of the
obligations under the Loan Documents, which obligations shall survive as an
encumbrance on the Property; provided, however, that Borrower and any existing
guarantors of the Loan shall have no further liability with respect to all such
obligations.  Lender does not waive any
existing event of default under the Loan Documents and shall continue to have
all of the rights and remedies to which it is entitled under the Loan
Documents, subject to the terms of this Agreement.

 

9.3.                              Intentionally Deleted.

 

34

 

ARTICLE X

 

General

 

10.1.                        Notices.  All notices
required hereunder shall be addressed to each party at the respective addresses
set forth in the first paragraph hereof, and shall be in writing and delivered
or mailed (by registered or certified mail, return receipt requested and
postage prepaid), addressed to the respective parties as set forth below:

 

If to GTA-IB:

 

Golf Trust of America, L.P.

14 North Adger’s Wharf

Charleston, South Carolina 
29401

Tel.:                         (803)
723-4653

Fax:                           (803)
723-0479

Attn:                    Mr.
W. Bradley Blair, II

 

Copy to:

 

O’Melveny & Myers LLP

Embarcadero Center West

275 Battery Street, Suite 2600

San Francisco, California  94111

Attn:                    Peter
T. Healy, Esq.

Tel.:                         (415)
984-8833

Fax:                           (415)
984-8701

 

If to Borrower:

 

Golf Host Resorts, Inc.

591 West Putnam Avenue

Greenwich, Connecticut  06830

Attn:                    Mr.
Merrick R. Kleeman

Tel.:                         (203)
422-7710

Fax:                           (203)
422-7810

 

Copies to:

 

Dechert LLP

90 State House Square

Hartford, Connecticut  06103

Attn:                    John
J. Gillies, Jr., Esq.

Tel.:                         (860)
524-3938

Fax:                           (860)
524-3930

 

35

 

and

 

Rinaldi, Finkelstein & Franklin

591 West Putnam Avenue

Greenwich, Connecticut  06830

Attn:                    Steven
Finkelstein, Esq.

Tel.:                         (203)
422-7767

Fax:                           (203)
422-7867

 

10.2.                        Governing Law. 
This Agreement shall be governed by and construed in accordance with the
laws of the State of Florida applicable to contracts made and performed in such
State and without regard to conflicts of law doctrines; provided, however, that
any action or proceeding arising from or relating to this Agreement must be
brought in the State of Delaware, and each party to this Agreement irrevocably
submits to the jurisdiction and venue of any such court in any such action or
proceeding.

 

10.3.                        Indemnity.

 

(a)                                  Borrower shall indemnify, defend and hold
harmless the GTA Parties from and against any and all claims, demands, causes
of action, losses, damages, liabilities, judgments, taxes (including, without
limitation, all real property taxes and real property tax appeal consequences),
costs and expenses (including attorneys’ fees and court costs, whether suit is
instituted or not) and all Operational Benefits (as defined in the Operational
Benefits Agreement), subject to the terms of the Operational Benefits Agreement
(collectively, “Losses”), asserted
against the GTA Parties, or any of them, by reason of or arising out of a
breach of any provision or any representation, warranty, covenant or
undertaking of Borrower and/or its affiliates contained in this Agreement, the
Defense and Escrow Agreement or the Operational Benefits Agreement.

 

(b)                                 GTA-IB shall defend, indemnify and hold
harmless Borrower from and against any and all Losses asserted against Borrower
by reason of or arising out of a breach of any provision or any representation,
warranty, covenant or undertaking of GTA-IB or Lender contained in this
Agreement or the Defense and Escrow Agreement.

 

(c)                                  The indemnity obligations of each of
Borrower, GTA-IB and Lender, and their respective affiliates, under this
Agreement, the Parcel F Development Agreement, the Operational Benefits
Agreement, the Joint Defense Agreement and the Defense and Escrow Agreement
(including both Losses under this Section 10.3 and including the indemnity
regarding the Lawsuits) shall be payable solely from such party’s respective
share of Net Proceeds (defined in the Defense and Escrow Agreement) pursuant to
Section 5.2(vii) (i.e., the “Seventh” level of the Net Proceeds
waterfall). Furthermore Borrower’s indemnity obligations under this Agreement
(except for its indemnity obligations respecting Losses arising from the
Lawsuits) shall be limited to an amount which equals One Million Five Hundred
Thousand Dollars ($1,500,000) in the aggregate (the “Indemnified Amount”). 
The parties acknowledge that Borrower has paid certain property taxes in
the amount of One Million Thirty Thousand Dollars ($1,030,000) and such payment
shall reduce the Indemnified Amount correspondingly.  Subject to the Indemnified Amount limitation, the only indemnity
obligation set forth in this Agreement

 

36

 

which is not subject to the availability of Net
Proceeds is the Indemnified Tax Amount described in Section 7.2(a)
above.  Borrower hereby grants to GTA-IB
a first-lien security interest in all funds payable to Borrower under the
Defense and Escrow Agreement.  Borrower
shall promptly perform any and all acts requested by GTA-IB from time to time
to assure that GTA-IB may perfect such security interest.

 

(d)                                 This Section 10.3 shall terminate
upon the termination of the Defense and Escrow Agreement.

 

10.4.                        No Personal Liability. 
In no event, and notwithstanding anything contained herein or elsewhere,
shall any of the respective past, present or future officers, directors,
managers, partners, members, stockholders, employees, representatives,
trustees, advisors, attorneys or other agents of each of Borrower, Guarantor,
GH Management, Condo Owner, GTA-IB, Lender and the GTA Parent (or any of their
respective affiliates) be personally liable under or in connection with this
Agreement, the Defense and Escrow Agreement or the Operational Benefits
Agreement whatsoever. Each of the parties to this Agreement, the Defense and
Escrow Agreement or the Operational Benefits Agreement, and each of such
parties’ respective successors and assigns does hereby waive any such personal
liability or any right to make such a claim against any of the others.

 

10.5.                        Construction. 
Borrower and GTA-IB acknowledge that each party and its counsel have
reviewed and revised this Agreement, and that the rule of construction to the
effect that any ambiguities are to be resolved against the drafting party shall
not be employed in the interpretation of this Agreement or any document
executed and delivered by either party in connection with the transactions
contemplated by this Agreement.  The captions
in this Agreement are for convenience or reference only and shall not be used
to interpret this Agreement.

 

10.6.                        Terms Generally. 
The defined terms in this Agreement shall apply equally to both the
singular and the plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The term “person” includes
individuals, corporations, partnerships, trusts, other legal entities,
organizations and associations, and any government or governmental agency or
authority.  The words “include,”
“includes” and “including” shall be deemed to be followed by the phrase
“without limitation.”  The words
“approval,” “consent” and “notice” shall be deemed to be preceded by the word “written.”

 

10.7.                        Confidentiality. 
For so long as no party is in default under the terms of this Agreement,
the parties to this Agreement shall keep the existence of, and the terms and
conditions of this Agreement and its exhibits, schedules and all attachments,
strictly confidential, except as follows: (i) such disclosures as are necessary
to consummate the transactions contemplated hereunder, including, without
limitation, the recording of the Conveyance Documents; (ii) such internal
disclosures, disclosures to attorneys, accountants, advisors and servicers, and
disclosures to investors and rating agencies as are required by the respective
parties’ operating policies and procedures and as may be required by the
Securities and Exchange Commission; and (iii) such disclosures as are required
by law, including pursuant to the service of judicial process.  The parties acknowledge and agree for the
purposes of this

 

37

 

Section, that the terms and conditions of this
Agreement and its exhibits, schedules and all attachments shall only be
disclosed to Troon and/or its counsel, after GTA-IB publicly discloses in a
filing with the Securities and Exchange Commission the Agreement and its
exhibits, schedules and all attachments. 
The parties also acknowledge and agree that this provision constitutes
material consideration for the parties’ obligations hereunder, and the breach
thereof may result in irreparable injury to a party, entitling such party to
specific performance of the terms hereof.

 

10.8.                        Waivers.  No waiver of
any provision of this Agreement or any breach of this Agreement shall be
effective unless such waiver is in writing and signed by the waiving party, and
any such waiver shall not be deemed a waiver of any other provision of this
Agreement or any other or subsequent breach of this Agreement.

 

10.9.                        Remedies.  The parties
hereto agree that money damages would not be an adequate remedy for any actual
or threatened breach of this Agreement by a non-defaulting party and that each
non-defaulting party shall be entitled as a non-exclusive remedy to equitable
relief, including, without limitation, injunctions (temporary and permanent)
and specific performance, as a remedy for any such breach and the defaulting
party or parties hereby agree to waive any requirement for the securing or
posting of any bond in connection with the non-defaulting parties’ pursuit of
any of such remedies.  Such remedies
shall not be deemed to be the exclusive remedies for a breach by a non-defaulting
party of this Agreement (or any part thereof) but shall be in addition to all
other rights and remedies otherwise available at law or equity to a
non-defaulting party.  If, in the event
of litigation relating to this Agreement among the parties, a court of
competent jurisdiction determines in a final, non-appealable order that this
Agreement has been breached by any party, then the breaching party or parties
shall be liable for and pay to the non-breaching party or parties its costs and
expenses (including, without limitation, the reasonable legal fees and
expenses) incurred in connection with all such litigation.

 

10.10.                  Miscellaneous.  The Exhibits
and Schedules attached to this Agreement are hereby made a part of this
Agreement.  This Agreement shall benefit
and bind Borrower and GTA-IB and their respective representatives, successors
and assigns.  Time is of the essence of
this Agreement.  This Agreement may be
executed in counterparts, each of which shall be an original, but all of which
shall constitute one and the same Agreement. 
This Agreement may not be amended or modified except by a written
instrument signed by Borrower and GTA-IB. 
This Agreement, including the Exhibits hereto and the Releases described
herein, constitute the entire and integrated agreement between Borrower and
GTA-IB relating to the conveyance of the Property and supersedes all prior
agreements, understandings, offers and negotiations, oral or written, with
respect to the conveyance of the Property.

 

[Signatures commence on the following page]

 

38

 

IN
WITNESS WHEREOF,
the following parties have executed this Agreement as of the Effective Date.

 

	
   

  	
  “BORROWER”

  
	
   

  	
   

  
	
   

  	
  GOLF HOST RESORTS, INC.,

  
	
   

  	
  a Colorado corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Merrick Kleeman

  	
   

  
	
   

  	
   

  	
   Name: Merrick Kleeman

  
	
   

  	
   

  	
   Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “GUARANTOR”

  
	
   

  	
   

  
	
   

  	
  GOLF HOSTS, INC.,

  
	
   

  	
  a Florida corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Merrick Kleeman

  	
   

  
	
   

  	
   

  	
   Name: Merrick Kleeman

  
	
   

  	
   

  	
   Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “GH MANAGEMENT”

  
	
   

  	
   

  
	
   

  	
  GOLF HOST MANAGEMENT, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Merrick Kleeman

  	
   

  
	
   

  	
   

  	
   Name: Merrick Kleeman

  
	
   

  	
   

  	
   Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “CONDO INC.”

  
	
   

  	
   

  
	
   

  	
  GOLF HOST CONDOMINIUM, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Merrick Kleeman

  	
   

  
	
   

  	
   

  	
   Name: Merrick Kleeman

  
	
   

  	
   

  	
   Title: President

  

 

S-1

 

	
   

  	
  “CONDO LLC”

  
	
   

  	
   

  
	
   

  	
  GOLF HOST CONDOMINIUM, LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Merrick Kleeman

  	
   

  
	
   

  	
   

  	
   Name: Merrick Kleeman

  
	
   

  	
   

  	
   Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “GTA-IB”

  
	
   

  	
   

  
	
   

  	
  GTA-IB LLC,

  
	
   

  	
  a Florida limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W. Bradley Blair, II

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ W. Bradley Blair, II

  	
   

  
	
   

  	
   

  	
   

  	
   Name: W. Bradley Blair, II

  
	
   

  	
   

  	
   

  	
   Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “LENDER”

  
	
   

  	
   

  
	
   

  	
  GOLF TRUST OF AMERICA, L.P.,

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GTA GP, Inc., a
  Maryland corporation, its

  general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ W. Bradley Blair, II

  	
   

  
	
   

  	
   

  	
   

  	
   Name: W. Bradley Blair, II

  
	
   

  	
   

  	
   

  	
   Title: President

  
								

 

S-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]