Document:

Exhibit
10.22

 

SUBLEASE

AGREEMENT

BETWEEN THE MIDLAND DEVELOPMENT

CORPORATION AND AST & SCIENCE, LLC

 

THIS
SUBLEASE AGREEMENT (“Sublease”) is made and effective this 13th day of November, 2018, by
and between the Midland Development Corporation (“MDC” or “Landlord”), a Type A corporation
existing under the authority of Chapter 504 of the Texas Local Government Code, and AST & Science, LLC, a Delaware limited
liability company (“Lessee”).

 

RECITALS

 

WHEREAS,
the City of Midland, Texas (“City”) owns and operates Midland International Air & Space Port (the “Airport”)
at which Lessee desires to locate its corporate headquarters satellite manufacturing, antenna site and network operations center;
and

 

WHEREAS,
MDC has leased from City certain existing hangar space and land at the Airport, which is further described herein; and

 

WHEREAS,
MDC and Lessee desire to set forth the terms and conditions under which Lessee will sublease said existing hangar space and land
from MDC for purposes of said business;

 

WHEREAS,
MDC and City have executed a second amendment that certain Commercial Hangar Lease Agreement, dated July 10, 2012. Said second
amendment being attached hereto as Exhibit A and incorporated herein for all purposes; and

 

WHEREAS,
MDC and Lessee will simultaneously with the execution of this Sublease, enter into an Economic Development Agreement (the “Development
Agreement”, which is attached hereto as Exhibit B and incorporated herein for all purposes)

 

NOW,
THEREFORE, for and in consideration of the covenants and conditions herein stated, City and Lessee agree as follows:

 

The
Recitals above are incorporated into, and made part of, this Sublease for all purposes.

 

LEASE
INFORMATION

 

Lessee:
AST & Science, LLC

 

Lessee
Address: Abel Avellan, Chairman and CEO at 1111 Brickell Ave., Ste. 1100, Miami, FL 33131

 

Telephone:
1-305-913-7106

 

Landlord:
Midland Development Corporation

 

Landlord’s
Address: at 200 N. Loraine Street, Suite 610, Midland, TX 79701 City Manager, P.O. Box 1152, 300 North Loraine, Midland, Texas
79702

 

Telephone:

 

Lessee’s
Proportionate Share of the Leased Premises: 100%

 

Lessee’s
Proportionate Share of the Spaceport Business Park (the “Park”): TBD

 

Security
Deposit: One Hundred Fifty Thousand and No/100 Dollars ($150,000)

 

    	 

     

    

 

Article
1.

GRANT OF LEASE

 

	1.01	Leased
                                         Premises: MDC agrees to lease to Lessee Hangars S-11A and S-11B, and Tracts 4-A and
                                         4-B, located in Lot 1, Block 13, Industrial Park Regional Air Terminal, Unit 12, Midland,
                                         Midland County, Texas, and being more particularly described on Exhibit C
                                         attached hereto and incorporated by reference. Hangars S-11A and S-11B, and Tracts 4-A
                                         and 4-B, are hereinafter collectively referred to as the “Leased Premises.”
                                         The parties hereby agree that any adjacent real property MDC subsequently leases from
                                         City through an option agreement may be included as part of the Leased Premises upon
                                         written approval of such inclusion by both parties. Any such real property included as
                                         part of the Leased Premises shall be subject to the terms and conditions of this Sublease.
	 	 
	1.02	Easements:
                                         This Sublease shall be subject to such easements, rights-of way, drill sites, or other
                                         rights or reservations affecting the Leased Premises which are of record or are clearly
                                         visible as of the date of this Sublease, or which are shown on Exhibit C.
	 	 
	1.03	Acceptance
                                         of Leased Premises: Subject to the requirements of Article 6.01, BY EXECUTING
                                         THIS SUBLEASE LESSEE AGREES AND ACKNOWLEDGES THAT LESSEE IS TAKING OR LEASING THE LEASED
                                         PREMISES “AS IS” WITH ANY AND ALL LATENT AND PATENT DEFECTS AND THAT THERE
                                         IS NO WARRANTY, EXPRESS OR IMPLIED BEING MADE BY THE MDC OR CITY THAT THE LEASED PREMISES
                                         ARE FIT FOR A PARTICULAR PURPOSE. LESSEE ACKNOWLEDGES, BY EXECUTING THIS SUBLEASE,
                                         THAT LESSEE IS NOT RELYING UPON ANY REPRESENTATION MADE BY MDC OR CITY WITH RESPECT TO
                                         THE CONDITION OF THE LEASED PREMISES (INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL,
                                         AND GEOLOGY), BUT IS RELYING UPON LESSEE’S EXAMINATION OF THE LEASED PREMISES.
                                         LESSEE ALSO RECOGNIZES BY EXECUTING THIS SUBLEASE THAT LESSEE IS AGREEING TO ACCEPT THE
                                         LEASED PREMISES “AS IS,” THAT LESSEE AGREES TO MAKE LESSEE’S
                                         OWN APPRAISAL OF THE LEASED PREMISES AND TO ACCEPT THE RISK THAT LESSEE MAY BE WRONG.
                                         MDC GIVES NO ASSURANCES, EXPRESS OR IMPLIED CONCERNING THE VALUE OR CONDITION OF THE
                                         LEASED PREMISES. IN NO EVENT SHALL THE LESSEE OR LANDLORD HAVE A RIGHT TO RECOVER CONSEQUENTIAL
                                         DAMAGES. THEREFORE, LESSEE WILL TAKE THE LEASED PREMISES UNDER THE EXPRESS UNDERSTANDING
                                         THE LEASED PREMISES ARE ACCEPTED “AS IS” AND WITH ALL FAULTS, EXCLUDING
                                         EXPRESS OR IMPLIED WARRANTIES. FURTHER, LESSEE COVENANTS AND AGREES THAT MDC HAS NOT
                                         MADE, DOES NOT MAKE, AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS, WARRANTIES, COVENANTS
                                         OR GUARANTEES OF ANY KIND WHATSOEVER REGARDING THE DISPOSAL OR EXISTENCE OF ANY HAZARDOUS
                                         SUBSTANCE, AS DEFINED BY THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND
                                         LIABILITY ACT, AS AMENDED, OR APPLICABLE STATE LAWS.

 

    	2

    	 

    

 

Article
2.

TERM OF SUBLEASE

 

	2.01	Sublease
                                         Term: The term of this Sublease shall commence on November 21, 2018, and terminate
                                         on November 20, 2033, (the “Sublease Term”) unless terminated earlier
                                         pursuant to the provisions of this Sublease.

 

Article
3.

RENT

 

	3.01	Amount
                                         of Base Rent:

	Basic
    Rental (“Base Rent”): 

    Months 1-12	$15.00/SF
                                         for Office Space (44,988 sq. ft.)

        $
        9.00 /SF for Hanger A (28,480 sq. ft.)

        $
        7.00 /SF for Hanger B (11,900 sq. ft.)

        $
        0.45/SF for Land Lease

        (Approximately
        238,000 square feet of additional land, as determined by a future mutually-approved survey, which is incorporated herein
        by reference.)

 

Lessee
will pay Landlord the Base Rent of Eighty One Thousand Three Hundred Eighty-Seven and No/100 Dollars ($81,387.00) per month plus
CAM charges (defined herein) on or before the 10th business day of each month as a fixed rent for the next month’s rent.
Rent for any fractional month at the beginning or end of the Sublease Term will be prorated on a per-day basis (also see Article
15 below).

 

It
is agreed and understood that provision must be made herein for an adjustment of rentals annually. Therefore, as of November 1,
2019, all payments made by Lessee to MDC shall be increased only in the same proportion or percentage by which the cost of living
has been increased as reflected by the Consumer Price Index for All Items, as maintained by the United States Government’s
Department of Labor, Bureau of Labor Statistics for the Dallas/Fort Worth SMA; such increase being measured by comparison with
such cost-of-living indices at the end of the immediately preceding 12-month period of this Sublease, as compared with the indices
at the commencement of the immediately preceding 12-month period of this Sublease.

 

    	3

    	 

    

 

	3.02	Delivery
                                         of Rent: Lessee shall timely pay to Landlord Rent, without deduction or set off,
                                         at Landlord’s Address (or such other address as Landlord may from time to time
                                         designate in writing to Lessee). Base Rent shall be payable monthly in advance (including
                                         any partial month). Monthly installments of Base Rent shall be due on the first day of
                                         the first full calendar month of the Sublease Term with a ten (10) day grace period and
                                         continuing the first day of each succeeding calendar month during the Sublease Term.
                                         Base Rent for any fractional month at the beginning of the Sublease Term shall be prorated
                                         based on 1/365 of the current annual Base Rent for each day of the partial month this
                                         Sublease is in effect and shall be due on the commencement date of this Sublease. All
                                         sums payable by Lessee under this Sublease, whether or not expressly denominated as rent,
                                         will constitute rent for the purposes of Section 502(b)(6) of the Bankruptcy Code and
                                         for all other purposes. In addition, Lessee shall pay its Proportionate Share of electricity
                                         and other utility charges at the end of each month.

The
wiring instructions for all payments to Landlord are as follows:

 

	 	Account Name:	 ______________
	 	Bank Name:	______________
	 	Account Number:	 ______________
	 	ABA Routing Number:	 ______________

 

The
wiring instructions for all payments to Lessee are as follows:

 

	 	Account Name:	 ______________
	 	Bank Name:	______________
	 	Account Number:	 ______________
	 	ABA Routing Number:	 ______________

 

	3.03	Triple
                                         Net Rent: The rent paid by Lessee will be on a triple net basis. Lessee agrees to
                                         pay as additional rent an amount equal to Lessee’s Pro Rata Share of the following,
                                         collectively called “Additional Rent”: (a) all ad valorem taxes on
                                         the Leased Premises and all improvements thereon (including, without limitation, the
                                         Leased Premises (b) all premiums for insurance carried by Landlord on the improvements
                                         and operations situated on the Park and/or Leased Premises (c) Common Area Maintenance
                                         Charges, and all expenses and liabilities incurred by Landlord in connection with its
                                         possession of the Park and/or Leased Premises, including without limitation, deductibles
                                         on insured claims, and for the purposes of the foregoing, the amount of the said deductible(s)
                                         shall be passed through to the Lessee in the year of the occurrence of the event causing
                                         such claim based on the amount of the deductible set forth in the policy. For purposes
                                         of this Sublease, the phrase “Common Area Maintenance Charges” (“CAM”)
                                         shall mean for each calendar year, or portion thereof, during the Sublease Term, the
                                         aggregate of all costs, expenses and liabilities of every kind or nature paid or incurred
                                         by Landlord to operate, manage, maintain and repair the common area and all other improvements
                                         on the Park and/or Leased Premises, including, without limitation, those paid or incurred
                                         in connection with the sweeping, cleaning, removing of debris from, maintaining, re-striping,
                                         and repairing the common areas; the cost of supplying water, electricity, gas, sewer
                                         disposal and/or garbage pickup and disposal, and monitoring and security services with
                                         respect to the common areas (all of which Landlord is obligated to furnish; providing
                                         the Park and/or Leased Premises identification signs and the repair and maintenance of
                                         the pylons and all signs thereon: providing traffic control, if any; constructing, maintaining
                                         and repairing any on-site and off-site utilities necessary or appropriate for operation
                                         of the common areas; maintaining, repairing and renovating the Park and/or Leased Premises;
                                         plus all other costs and expenses of every kind or nature paid or incurred by Landlord
                                         relative to maintaining, managing, repairing, renovating, and equipping the common areas
                                         in the Park and/or Leased Premises. The portion of CAM attributable to Lessee herein
                                         for the replacement of any HVAC system or component thereof, any roof or portion thereof,
                                         or any other system or component for which Landlord must replace pursuant to this Sublease
                                         shall be limited to the cost of the replacement divided by the total expected service
                                         life of the item so replaced (in months) multiplied by the number of months that have
                                         passed since the Effective Date of the Sublease, which number shall then be further multiplied
                                         by the product of the total square footage of the Park and/or Leased Premises, as the
                                         case may be, divided by the square footage of the Park and/or Leased Premises leased
                                         by Lessee. Common areas of the Park and/or Leased Premises are those parts of the Park
                                         and/or Leased Premises designated by Landlord for the common and non-exclusive use of
                                         all Lessees, including, among other facilities, the parking areas, sidewalks, landscaped
                                         areas, curbs, loading areas, private streets and alleys, lighting facilities, signs erected
                                         or maintained by Landlord advertising or identifying the Park and/or Leased Premises
                                         and service drives, all of which shall be subject to the Landlord’s sole management
                                         and control.

 

    	4

    	 

    

 

	3.04	Real
                                         Estate Tax Protest: Lessee has no right to protest the real estate tax rate assessed
                                         against the Leased Premises and/or the appraised value of the Leased Premises determined
                                         by any appraisal review board or other taxing entity with authority to determine tax
                                         rates and/or appraised values (each a “Taxing Authority”). Lessee
                                         hereby knowingly, voluntarily and intentionally waives and releases any right, whether
                                         created by law or otherwise, to (a) file or otherwise protest before any Taxing Authority
                                         any such rate or value determination even though Landlord may elect not to file any such
                                         protest; (b) receive, or otherwise require Landlord to deliver, a copy of any reappraisal
                                         notice received by Landlord from any Taxing Authority; and (e) appeal any order of a
                                         Taxing Authority that determines any such protest. The foregoing waiver and release covers
                                         and includes any and all rights, remedies and recourse of Lessee, now or at any time
                                         hereafter, under Section 41.413 and Section 42.015 of the Texas Tax Code (as currently
                                         enacted or hereafter modified) together with any other or further laws, rules or regulations
                                         covering the subject matter thereof Lessee acknowledges and agrees that the foregoing
                                         waiver and release was bargained for by Landlord and Landlord would not have agreed to
                                         enter into this Sublease in the absence of this waiver and release. If, notwithstanding
                                         any such waiver and release, Lessee files or otherwise appeals any such protest, then
                                         Lessee will be in default under this Sublease and, in addition to Landlord’s other
                                         rights and remedies, Lessee must pay or otherwise reimburse Landlord for all costs, charges
                                         and expenses incurred by, or otherwise asserted against, Landlord as a result of any
                                         tax protest or appeal by Lessee, including, appraisal costs, tax consultant charges and
                                         attorneys’ fees (collectively, the “Tax Protest Costs”). If
                                         as a result of Lessee’s tax protest or appeal, the appraised value for the Leased
                                         Premises is increased above that previously determined by the Taxing Authority (such
                                         increase, the “Value Increase”) for the year covered by such tax protest
                                         or appeal (such year. the “Protest Year”) then Lessee must pay Landlord,
                                         in addition to all Tax Protest Costs, an amount (the “Additional Taxes”)
                                         equal to the sum of the following: (i) the product of the Value Increase multiplied by
                                         the tax rate in effect for the Protest Year plus (ii) the amount of additional taxes
                                         payable during the five (5) year period following the Protest Year, such amount to be
                                         calculated based upon the Value Increase multiplied by the tax rate estimated to be in
                                         effect for each year during such five (5) year period. Lessee must pay all Additional
                                         Taxes - even those in excess of Lessee’s proportionate share and which may relate
                                         to years beyond the term of this Sublease. The Additional Taxes will be conclusively
                                         determined by a tax consultant selected by Landlord, without regard to whether and to
                                         what extent Landlord may be able in years following the Protest Year to reduce or otherwise
                                         eliminate any Value Increase. All Tax Protest Costs and Additional Taxes must be paid
                                         by Lessee within five (5) days following written demand by Landlord.

 

    	5

    	 

    

 

	3.05	Security
                                         Deposit: Upon execution of this Sublease, in addition to the installment of rent
                                         due under Article 3 and in addition to any other amounts that are due from Lessee
                                         upon the execution of this Sublease, Lessee shall deliver to Landlord a Security Deposit
                                         in the amount stated in Lease Information. Landlord may apply all or part of the Security
                                         Deposit to any unpaid rent, and damages and charges for which Lessee is legally liable
                                         under this Sublease, and damages and charges that result from a breach of this Sublease,
                                         including but not limited to any other provision that requires Lessee to leave the Leased
                                         Premises in a certain condition upon the expiration or termination of this Sublease.
                                         If Landlord uses any part of the Security Deposit, Lessee shall restore the Security
                                         Deposit to its full amount within ten (10) days after Landlord’s written demand.
                                         Lessee’s failure to restore the full amount of the Security Deposit within the
                                         time specified will be a default under this Sublease. No interest will be paid on the
                                         Security Deposit. Landlord will not be required to keep the Security Deposit separate
                                         from its other accounts, and no trust relationship is created with respect to the Security
                                         Deposit. After the expiration of this Sublease, Landlord shall refund the unused portion
                                         of the Security Deposit, if any, to Lessee within ten (10) days after the date Lessee
                                         surrenders possession of the Leased Premises and provides a written notice to Landlord
                                         of Lessee’s forwarding address for the purpose of refunding the Security Deposit.
                                         If Landlord transfers its interest in the Leased Premises, then Landlord may assign the
                                         Security Deposit to the transferee and Landlord thereafter shall have no further liability
                                         for the return of the Security Deposit. The provisions of this Article will survive the
                                         expiration or termination of this Sublease.

 

Article
4.

USE OF LEASED PREMISES

 

	4.01	Permitted
                                         Uses: Lessee shall be permitted to use the Leased Premises for the purpose of conducting
                                         for-profit commercial services or activities consisting of any or all of the following
                                         operations and no others:

 

		(a)	Location
                                         of corporate headquarters, operation of warehouse, freight distribution and storage services
                                         for commercial and non-commercial activities;
	 	 	 
		(b)	Manufacture,
                                         assembly, development and testing of Lessee’s satellite parts and subsystems systems
                                         required to build and deploy Lessee’s satellite products for commercial and government
                                         applications. Lessee will have the option to build clean room facilities within the Leased
                                         Premises to accommodate its manufacturing and payload testing requirements;

 

    	 

     

    

 

	 	(c)	Sales of Lessee’s products;
	 	 	 
		(d)	Storage
                                         of such inventory, equipment and apparatus as may be incidental and/or necessary to Lessee’s
                                         operations, including, but not limited to motor and electric vehicles and aircraft operated
                                         and/or owned by Lessee;
	 	 	 
		(e)	Build-out
                                         and construction required to locate Lessee’s ground satellite antennas and related
                                         operational equipment on the Leased Premises. This will include concrete slabs at each
                                         location, electricity and fiber connectivity and a temporary structure to house Lessee’s
                                         ground test satellite antenna system and the antenna farm location for Lessee’s
                                         satellite communication systems.
	 	 	 
		(f)	Such
                                         other uses described in Exhibit C or as may be permitted in writing by
                                         MDC.

 

	4.02	Prohibited
                                         Uses: Lessee agrees at all times to comply with the following:

 

		(a)	Lessee
                                         shall at no time use, or permit the use of, the Leased Premises in a manner that is contrary
                                         to applicable federal, state, or local laws, ordinances, rules, or regulations, which
                                         shall include, but not be limited to, applicable Federal Aviation Administration (“FAA”)
                                         rules and regulations and applicable regulations for the use of the Airport as may from
                                         time to time be promulgated by MDC or City;
	 	 	 
		(b)	Lessee
                                         shall not permit any permanent, unshielded light or illumination source to cause glare
                                         as viewed from any street, adjacent properties or operating aircraft;
	 	 	 
		(c)	Lessee
                                         shall not cause or permit the burial or storage above ground on the Leased Premises of
                                         any hazardous waste or materials, as defined by federal or state law, except in accordance
                                         with applicable federal, state, or local laws, ordinances, regulations and rules, as
                                         may be adopted or amended from time to time;
	 	 	 
		(d)	Lessee
                                         shall not cause or permit any use or activity on the Leased Premises that may create
                                         a hazardous condition for aircraft operating at the Airport;
	 	 	 
		(e)	Lessee
                                         shall not allow the Leased Premises to be used for parking of motor vehicles, motorcycles,
                                         or motor driven equipment by anyone other than customers, employees, or contractors of
                                         Lessee except as may be authorized by the Director of Airports, with all such parking
                                         being limited to areas designated by the Department of Airports for such parking. Lessee
                                         shall not be in default for the improper parking of vehicles over which neither Lessee
                                         nor any of its sublessees, customers, employees, or contractors have any control; and
	 	 	 
		(f)	Lessee
                                         shall not operate, nor permit the operation of, a car rental business from the Leased
                                         Premises, unless the Lessee or the operator of said car rental business has executed
                                         a car rental concession or permit agreement with MDC or City; and

 

    	6

    	 

    

 

		(g)	Lessee
                                         shall not allow airline passenger operations to be conducted on the Leased Premises.
                                         The Leased Premises shall not be used for any use that is disreputable or creates extraordinary
                                         fire hazards or results in an increased rate of insurance on the Leased Premises or its
                                         contents or the storage of any hazardous materials or substances. If, because of an act
                                         on the party of Lessee, the rate of insurance on the Leased Premises, its facilities
                                         or its contents increases, Lessee shall pay to Landlord the amount of such increase on
                                         demand, and acceptance of such payment shall not constitute a waiver of any of Landlord’s
                                         other rights. Lessee shall conduct its business and control each other Lessee party or
                                         agent, so as not to create any nuisance or interfere with other Lessees or Landlord in
                                         its management of the Leased Premises, its facilities or contents. Subject to Landlord’s
                                         reasonable security measures and the Rules and Regulations described in Article 17.06,
                                         Lessee and its agents and employees will have access to the Leased Premises 24 hours
                                         per day, 7 days per week.

 

	4.03	Compliance
                                         with Minimum Standards: All activities conducted upon the Leased Premises, whether
                                         by Lessee or its sublessees, shall be in substantial conformance with the City’s
                                         Minimum Standards for Aeronautical Activities, as such standards exist or may be duly
                                         amended from time to time by the City Council to the extent that such Minimum Standards
                                         may apply to Lessee’s operations. MDC agrees to provide Lessee with written notice
                                         not later than 30 days prior to adoption of substantive changes to the Minimum Standards
                                         for Aeronautical Activities that would apply to Lessee’s operations.

 

	4.04	Non-exclusive
                                         Uses: Lessee understands and acknowledged that, as to that part of the Airport not
                                         included within the Leased Premises, the allowable uses permitted herein are on a non-exclusive
                                         basis with respect to other potential providers of aeronautical services at the Airport.

 

Article
5.

OBLIGATIONS OF LESSEE

WITH REGARD TO CONSTRUCTION OF IMPROVEMENTS

 

	5.01	Approval
                                         of Plans Not Assurance of Design Quality: The approval by MDC and the Director of
                                         Airports of any plans and specifications applies only to the conformity of such plans
                                         to the general architectural and operational plan for the Leased Premises and the Airport.
                                         The approval of MDC and the Director of Airports does not constitute approval of the
                                         quality of the architectural or engineering work performed. Neither MDC, City nor the
                                         Director of Airports assumes any liability or responsibility for the architectural or
                                         engineering design or for any defect in any building or improvement constructed from
                                         the plans or specifications. Construction of any contemplated improvements shall be in
                                         accordance with the plans presented to and approved by MDC and the Director of Airports.
                                         All construction work shall be subject to inspection by a representative employed by
                                         MDC and City or an inspector from the Code Enforcement Division of the City of Midland,
                                         or both, to determine that such work conforms to the plans and specifications approved
                                         by MDC and City, which inspections shall be conducted and adjudicated on a time-is-of-the-essence
                                         basis.

 

    	7

    	 

    

 

	5.02	Contractor’s
                                         Insurance; Bonds: At any time construction activities are undertaken on the Leased
                                         Premises, Lessee shall require that its contractor or contractors keep in force insurance
                                         issued by a responsible insurance company or companies authorized to conduct business
                                         in the State of Texas insuring the improvements during construction under Completed Builder’s
                                         All Risk Insurance, including fire, extended coverage, vandalism and malicious mischief,
                                         in an amount equal to the full insurable value of such construction as the same progresses
                                         in order to insure continuity of construction and ultimate completion despite damage
                                         or destruction suffered during the course thereof. ALL INSURANCE SHALL NAME MDC AND
                                         CITY AS ADDITIONAL INSUREDS AND CO-PAYEES AND PROVIDE FOR A WAIVER OF SUBROGATION IN
                                         FAVOR OF MDC AND CITY. Lessee shall require all contractors performing construction
                                         work on the Leased Premises to provide payment and performance bonds issued by a responsible
                                         bonding company or companies authorized to conduct business in the State of Texas for
                                         the full amount of the cost of the construction to be performed on forms which are in
                                         compliance with Tex. Gov’t Code Chapter 2253, as amended. The foregoing shall be
                                         made a part of any contract between Lessee and its contractor or contractor. In the event
                                         Lessee does not complete the construction work itself; it shall comply with the all risk
                                         insurance provisions hereof.
	 	 
	5.03	Compliance
                                         with Building Codes and Federal Standards: All improvements made to the Leased Premises
                                         by Lessee shall comply with all applicable City Building Codes and federal standards
                                         for construction of airport improvements in effect at the time construction commences
                                         as well as all other applicable Federal Aviation Administration regulations, if any.
	 	 
	5.04	Encumbrance
                                         of Leasehold Estate: Lessee shall at no time encumber or attempt to encumber its
                                         leasehold interest in the Leased Premises by deed of trust, mortgage, security agreement
                                         or other security interest.
	 	 
	5.05	Ownership
                                         of Buildings, Improvements and Fixtures: Any and all buildings, improvements (including,
                                         but not limited to all aprons, taxiways and roadways), additions, alterations, and permanent
                                         fixtures existing on the commencement date of this Sublease or constructed or placed
                                         on any part of the Leased Premises during the Sublease Term by City, MDC or Lessee shall
                                         be considered part of the real property of the Leased Premises, shall remain on the Leased
                                         Premises, and shall not be removed by Lessee or any sublessee without the written consent
                                         of the MDC. All improvements, additions, alterations, and fixtures on the Leased Premises
                                         shall become the sole property of MDC or City upon termination of this Sublease without
                                         compensation to Lessee, it being understood and agreed by Lessee that the improvements
                                         located on the Leased Premises at the end of the Sublease Term are additional consideration
                                         for this Sublease. Notwithstanding the above, Lessee shall have the right at any time
                                         during Lessee’s occupancy of the Leased Premises, or within a reasonable time thereafter,
                                         to remove any and all furniture, machinery, tools, inventory, computers, equipment, but
                                         not permanent fixtures owned or placed by Lessee, in, under, or on the Leased Premises;
                                         provided, however, prior to the termination of the Sublease Term, Lessee shall repair
                                         any damage to any buildings or improvements on the Leased Premises resulting from their
                                         removal. Any such personal property items which are not removed within sixty (60) days
                                         after the termination date of this Sublease shall become the property of MDC or City
                                         as of that date.

 

    	8

    	 

    

 

Article
6.

REPAIRS, MAINTENANCE AND RESTORATION

 

	6.01	Maintenance
                                         by Lessee: Lessee shall, at Lessee’s sole expense, keep the Leased Premises
                                         and all improvements of any kind, which may be existing at the commencement of the Lease
                                         Term in good repair, condition and appearance. Lessee specifically acknowledges its obligations,
                                         at its sole expense, to keep in good repair, condition and appearance the foundation,
                                         roof, exterior walls and structural portions of the interior walls of the hangars located
                                         on the Leased Premises. Lessee shall keep mowed and in a sightly condition all landscaping
                                         and grass areas within the Lease Premises. MDC shall be the sole judge of the quality
                                         of Lessee’s maintenance; provided, however, MDC shall not unreasonably withhold
                                         acceptance of said repairs or maintenance. Upon written notice by MDC to Lessee, Lessee
                                         shall be required to perform such reasonable maintenance under this Article 6.01,
                                         as MDC considers necessary. If Lessee does not undertake such maintenance within ten
                                         (10) business days after receipt of written notice. MDC shall have the right to enter
                                         on the Leased Premises and perform the necessary maintenance, the cost of which shall
                                         be borne by Lessee. Other items of maintenance for which Lessee shall be solely responsible
                                         shall include, but not be limited to, the following:

 

		(a)	Janitorial
                                         services, providing janitorial supplies, window washing, rubbish and trash removal;
	 	 	 
		(b)	Supply
                                         and replacement of light bulbs in and on all buildings (except lighting removed for causing
                                         obstructions or glare);
	 	 	 
		(c)	Replacement
                                         of cracked or broken glass in all buildings;
	 	 	 
		(d)	Cleaning
                                         of interior stoppages in interior plumbing fixtures and drain lines up to the first manhole
                                         or clean out outside of the exterior of the building where the stoppage occurred;
	 	 	 
		(e)	Replacement
                                         of floor covering;
	 	 	 
		(f)	Maintenance
                                         of all doors and door operating systems, including weather stripping and glass replacement;
	 	 	 
		(g)	Painting,
                                         repairing and replacement of interior walls not resulting from structural failure;
	 	 	 
		(h)	Landscaping
                                         and grass cutting services within the Leased Premises, including, but not limited to,
                                         repair or replacement of exterior building flood lights and planter lights;
	 	 	 
		(i)	Repair
                                         or replacement of heating, air conditioning, ventilation, electrical, plumbing, or mechanical
                                         systems, or their respective components (Lessee shall provide for such repairs by procuring
                                         annual maintenance contracts requiring quarterly status reporting from MDC-approved third-party
                                         vendors, with said contracts and any maintenance reports to be promptly provided to MDC
                                         within thirty (30) days of completion); and
	 	 	 
		(j)	Maintenance
                                         of all aprons, ramps, and roadways that are constructed by Lessee.

 

    	9

    	 

    

 

Subject
to the provisions of Article 5.05, on the last day of the term hereof, or on any earlier termination, Lessee shall surrender
the Leased Premises to MDC in the same condition, except for fire and casualty, ordinary wear and tear, clean and free of debris.

 

All
material repairs and material maintenance described in this Article shall be performed only by contractors and subcontractors
approved in writing by Landlord (which approval will not be unreasonably withheld or delayed). Lessee shall cause all contractors
and subcontractors to procure and maintain insurance coverage against such risks, in such amounts, and with such companies as
Landlord may reasonably require, and to procure payment and performance bonds reasonably satisfactory to Landlord covering the
cost of the repairs and maintenance. All such repairs and maintenance shall be performed in accordance with all laws and in a
good and workmanlike manner so as not to damage the buildings (including the Premises, the roof, the structural elements, and
the plumbing, electrical lines, or other utility transmission facility). All such repairs and maintenance that may affect the
buildings’ HVAC, electrical, plumbing, other mechanical systems, the roof, or structural elements must be approved by MDC,
at Lessee’s expense.

 

Lessee
shall not permit any mechanic’s liens to be filed against any portion of the Premises for any work performed, materials
furnished, or obligation incurred by or at the request of Lessee. Lessee’s failure to comply with this requirement shall
constitute a default of this Sublease.

 

	6.02	Trash
                                         and Waste Removal: Lessee agrees to cause to be removed from the Leased Premises,
                                         at its own expense, all waste, garbage and rubbish, and agrees not to deposit same on
                                         the Leased Premises except temporarily in waste or garbage containers provided by Lessee
                                         at Lessee’s expense. Lessee further agrees that Lessee will store all parts, supplies,
                                         and other materials on the interior of buildings located on the Leased Premises, provided,
                                         however, that any parts or supplies which must be kept outside because of volatility
                                         of the supply item or the size of the part will be kept out of view of the public traveling
                                         on public rights of way or other surrounding Lessees by installation of fencing or other
                                         means of screening approved by MDC and the Director of Airports.

 

Article
7.

ACCESS TO AND USE OF AIRPORT

 

	7.01	Access
                                         to Airport: City shall maintain all roads on the Airport giving access to the Leased
                                         Premises in good and adequate condition for use by cars and trucks and shall always maintain
                                         free and uninterrupted access to the Leased Premises over said roads at all times; provided,
                                         however, MDC shall not be in default of this Sublease if access is interrupted.
	 	 
	7.02	Right
                                         to Use Airport: Lessee and Lessee’s employees, sublessees, and guests shall
                                         have the right to use that part of the Airport and its facilities not included within
                                         the Leased Premises in common with others authorized to do so. Such use shall be subject
                                         to any and all applicable federal, state or local laws, ordinances, statutes, rules,
                                         regulations, or orders of any governmental authority, lawfully exercising jurisdiction
                                         over the Airport or the activities and business operations of Lessee, including any limitations,
                                         restrictions or prohibitions affecting the aviation activities or operations of Lessee.

 

    	10

    	 

    

 

	7.03	Vehicular
                                         Operations on the Airfield: No vehicles of Lessee, its employees, customers or invitees
                                         will be allowed to operate on, or cross, the runways and taxiways and their respective
                                         safety areas of the Airport. When necessary, Airport Operations Control Center personnel
                                         will provide Lessee escorted access to and from the airfield area.
	 	 
	7.04	Airport
                                         Security Rules and Regulations: Lessee, its directors, officers, employees, and contractors
                                         shall comply with all federal and local Airport Security Regulations adopted by the City
                                         or the Department of Airports as such rules and regulations exist or may hereafter be
                                         amended.
	 	 
	7.05	14
                                         C.F.R. Part 77 Requirements: Lessee agrees to comply with the notification and review
                                         requirements set forth in Part 77 of the Federal Aviation Regulations [14 CFR Part 77]
                                         in the event any future structure, antenna or building is planned for the Leased Premises,
                                         or in the event of any planned modification of any present or future building, antenna
                                         or structure located on the Leased Premises.
	 	 
	7.06	Control
                                         of Structures: Lessee shall not erect nor permit the erection of any structure or
                                         object, nor permit the growth of any tree on the Leased Premises which highest point
                                         is above a mean sea level elevation established by the FAA and City as a height limitation
                                         on such structures or objects. MDC and City reserves the right to enter upon the Leased
                                         Premises and to remove the offending structure or object and cut the offending tree at
                                         Lessee’s expense.
	 	 
	7.07	Aerial
                                         Approaches: MDC and City reserve the right to take any action they considers necessary
                                         to protect the aerial approaches of the Airport against obstruction together with the
                                         right to prevent Lessee from erecting or permitting to be erected any building or other
                                         structure on or adjacent to the Airport which, in the opinion of City, would limit the
                                         usefulness of the Airport or constitute a hazard to aircraft.
	 	 
	7.08	Right
                                         of Over-flight: There is hereby reserved to City, for the use and benefit of the
                                         public, a right of flight for the passage of aircraft above the surface of the Leased
                                         Premises, together with the right to cause in said airspace such noise as may be inherent
                                         in the operation of aircraft, now known or hereafter used for navigation of or flight
                                         in the air, using said airspace for landing at, taking off from or operating on the Airport.

 

    	11

    	 

    

 

Article
8.

INSURANCE AND INDEMNITY

 

	8.01	Lessee’s
                                         Minimum Insurance Amounts: Lessee shall obtain and maintain continuously in effect
                                         at all times during the Sublease Term, at Lessee’s sole expense, at least the following
                                         minimum insurance with a carrier or carriers licensed to do business in the State of
                                         Texas and satisfactory to MDC:

		(a)	Property
                                         and Casualty Insurance insuring against loss or damage to Lessee’s improvements
                                         and any and all property being maintained or repaired by Lessee due to fire, lightning
                                         and all other perils included in standard extended coverage policies, and vandalism and
                                         malicious mischief, all in amounts of not less than one-hundred percent (100%) of replacement
                                         value;

		(b)	Commercial
                                         General Liability Insurance against claims for bodily injury, death, or property damage
                                         occurring on, in or about the Leased Premises, or any other portion of the Airport, in
                                         at least the amount of $10,000,000.00 per individual, $10,000,000.00 per occurrence and
                                         $10.000,000.00 with respect to property, and the statutory limits with respect to worker’s
                                         compensation.

All
insurance policies referenced herein or procured by Lessee for the purposes contemplated herein shall name MDC and City as additional
insureds and provide for waivers of subrogation in favor of MDC and City. MDC and City shall not be liable to the Lessee or those
claiming by, through, or under for any injury to or death of any person or the damage to or theft, destruction, loss, or loss
of use of any property or inconvenience (a “Loss”) caused by casualty, theft, fire, third parties, or any other
matter (including Losses arising through repair or alteration of any part of the Premises or failure to make repairs, or from
any other cause), regardless of whether the negligence of any party caused such Loss in whole or in part. Lessee waives any claim
it might have against MDC and City for any damage to or theft destruction, loss, or loss of use of any property, to the extent
the same is insured against under any insurance policy maintained by it that covers the Leased Premises, the Leased Premises,
MDC’s and City’s or Lessee’s fixtures, personal property, leasehold improvements, or business, or is required
to be insured against by it under the terms hereof, regardless of whether the negligence or fault of the other party caused such
loss. Each party shall cause its insurance carrier to endorse all applicable policies waiving the carrier’s rights of recovery
under subrogation or otherwise against the other party.

 

	8.02	Lessee’s
                                         Coverage Primary: All insurance herein required shall apply as primary and not in
                                         excess of or contributing with other insurance which the Lessee may carry. Insurance
                                         provided pursuant to Article 8.01 shall name MDC and City as additional insureds
                                         or loss payees as the case may be and provide for a waiver of subrogation in favor of
                                         MDC arid City. The comprehensive general liability policy as provided in Article 8.01(b)
                                         shall provide contractual liability coverage sufficiently broad so as to include
                                         the liability assumed by Lessee under this Sublease.
	 	 
	8.03	Contents
                                         of General Liability Policy: Lessee’s Comprehensive General Liability policy
                                         shall protect MDC, City and Lessee against any and all liability to any person or persons
                                         whose property damage or personal injury arises out of or is in connection with the occupation,
                                         use, or condition of the Leased Premises or resulting from any injury or damage occurring
                                         on or about the roads, driveways or other public areas of the Leased Premises used by
                                         Lessees, its trustees, officers, employees, students, invitees, and contractors at the
                                         Airport, whether or not such damage or injury is the result of negligence of Lessee or
                                         its officers, employees, representatives, invitees, licensees, contractors, agents, guests,
                                         or students.

 

    	12

    	 

    

 

	8.04	Cancellation
                                         and Certificates of Insurance: Lessee’s insurance as required by this Sublease
                                         shall not be subject to cancellation or material alteration until at least thirty (30)
                                         days’ written notice has been provided to MDC. Lessee shall furnish to MDC, annually,
                                         certificates of insurance showing MDC and City as additional insureds and evidencing
                                         that all of the herein-stated requirements have been met.
	 	 
	8.05	MDC’s
                                         Right to Purchase Insurance: In the event such insurance as required by Article
                                         8.01 shall lapse, such event shall constitute a default by Lessee and MDC reserves
                                         the right to obtain such insurance at Lessee’s expense. Upon demand from MDC, Lessee
                                         shall reimburse MDC for the full amount of the premium paid on Lessee’s behalf.
	 	 
	8.06	Indemnity:
                                         LESSEE WILL INDEMNIFY AND HOLD HARMLESS AND DEFEND MDC AND CITY AND ALL OF MDC’S
                                         AND CITY’S OFFICERS, AGENTS AND EMPLOYEES FROM ALL SUITS, ACTIONS, CLAIMS, DAMAGES,
                                         PERSONAL INJURIES, LOSSES, PROPERTY DAMAGE AND EXPENSES OF ANY CHARACTER WHATSOEVER,
                                         INCLUDING REASONABLE ATTORNEY’S FEES, BROUGHT FOR OR ON ACCOUNT OF ANY INJURIES
                                         OR DAMAGES RECEIVED OR SUSTAINED BY ANY PERSON OR PERSONS OR PROPERTY ON ACCOUNT OF ANY
                                         NEGLIGENT ACT OF LESSEE, ITS AGENTS OR EMPLOYEES, OR ANY SUBCONTRACTOR, ARISING OUT OF,
                                         OR RESULTING FROM, LESSEE’S USE OF, OR ACTIVITIES ON THE LEASED PREMISES, OR LESSEE’S
                                         ACTIVITIES AND OPERATIONS GROWING OUT OF OR IN ANY WAY CONNECTED WITH THIS SUBLEASE,
                                         AND LESSEE WILL BE REQUIRED TO PAY ANY JUDGMENT WITH COSTS THAT MAY BE OBTAINED AGAINST
                                         MDC OR CITY OR ANY OF MDC’S OR CITY’S OFFICERS, AGENTS OR EMPLOYEES, INCLUDING
                                         REASONABLE ATTORNEY’S FEES.

 

LESSEE
AGREES THAT IT WILL INDEMNIFY AND HOLD HARMLESS AND DEFEND MDC AND CITY AND ALL OF MDC’S AND CITY’S OFFICERS, AGENTS
AND EMPLOYEES FROM ALL SUITS, ACTIONS, CLAIMS, DAMAGES, PERSONAL INJURIES, LOSSES, PROPERTY DAMAGE AND EXPENSES OF ANY CHARACTER
WHATSOEVER, INCLUDING REASONABLE ATTORNEY’S FEES, BROUGHT FOR OR ON ACCOUNT OF ANY INJURIES OR DAMAGES RECEIVED OR SUSTAINED
BY ANY PERSON OR PERSONS OR PROPERTY ON ACCOUNT OF ANY NEGLIGENT ACT OF MDC OR CITY, MDC’S OR CITY’S RESPECTIVE OFFICERS,
AGENTS AND EMPLOYEES, WHETHER SUCH NEGLIGENT ACT WAS THE SOLE PROXIMATE CAUSE OF THE INJURY OR DAMAGE, OR A PROXIMATE CAUSE JOINTLY
AND CONCURRENTLY WITH LESSEE OR LESSEE’S EMPLOYEES, AGENTS, OR SUBCONTRACTORS NEGLIGENCE, IN THE EXECUTION, SUPERVISION,
AND OPERATIONS GROWING OUT OF OR IN ANY WAY CONNECTED WITH THE PERFORMANCE OF THIS SUBLEASE AND LESSEE WILL BE REQUIRED TO PAY
ANY JUDGEMENT WITH COSTS THAT MAY BE OBTAINED AGAINST MDC OR CITY, OR ANY OF MDC’S OR CITY’S RESPECTIVE OFFICERS,
AGENTS, OR EMPLOYEES, INCLUDING REASONABLE ATTORNEY’S FEES.

 

    	13

    	 

    

 

Article
9.

UTILITIES

 

Lessee
shall be solely responsible for the payment of all electric, telephone, water, sewer, refuse, natural gas and other public utility
services used on the Leased Premises.

 

Article
10.

SIGNS

 

	10.01	Consent
                                         Required: Except with the prior written consent of the Director of Airports, which
                                         shall not be unreasonably withheld. Lessee shall not erect, maintain or display any signs
                                         or any advertising at, or on, the exterior part of structures on the Leased Premises,
                                         or inside any buildings located on the Leased Premises so as to be visible through the
                                         window or exterior doors thereof.
	 	 
	10.02	Monument
                                         Signage: MDC shall install, or cause to be installed, a sign containing Lessee’s
                                         name and/or logo on the monument sign serving the Leased Premises. The design, size,
                                         specifications, graphics, materials, manner of affixing, exact location, colors, and
                                         lighting (if applicable) of Lessee’s sign shall be in a form substantially similar
                                         to the architectural drawings contained in the Project Manual for the Midland Development
                                         Corporation Landscape Improvements to the Spaceport Business Park Project and the associated
                                         Midland Development Corporation Landscape Improvements Construction Plans. Said Project
                                         Manual and Construction Plans are incorporated herein by reference and shall be kept
                                         on file in the offices of MDC. The parties agree that all right, title, and interest
                                         in Lessee’s sign and the monument sign shall remain with MDC.
	 	 
	10.03	Removal
                                         on Termination: Upon the termination of this Sublease, Lessee shall remove, obliterate
                                         or paint out, as MDC may direct, any and all signs and advertising on the Leased Premises
                                         or elsewhere at the Airport, and in connection therewith shall restore the Leased Premises
                                         to the same condition as prior to the placement of any such signs or advertising. In
                                         the event that there is a failure by Lessee to so remove, obliterate or paint out each
                                         and every sign or advertising and so to restore the Leased Premises within seven business
                                         days after termination, MDC may, at its option, perform the necessary work at the expense
                                         of Lessee, and the charge therefor shall be paid by Lessee to MDC on demand. In certain
                                         circumstances, MDC may elect to allow specific signs to remain as existing at the termination
                                         of this Sublease. Such signs shall be identified and agreed upon mutually, in writing,
                                         by Lessee and MDC.

 

Article
11.

SUBLEASING

 

At
no time shall Lessee sublease any portion of the Leased Premises or otherwise assign its interests or obligations in this Sublease
without the written consent of MDC. Any such assignment or attempted assignment shall be void.

 

    	14

    	 

    

 

Article
12.

TAX LIENS

 

Lessee
shall be solely responsible for the collection and payment of all applicable federal, state, and local taxes, including, but not
limited to, sales, use, amusement, or excise tax required to be collected and paid over by Lessee to the appropriate taxing authority.
Furthermore, Lessee shall be responsible for the payment of any applicable ad valorem taxes and any taxes on Lessee’s personal
property located on the Leased Premises. Lessee shall at no time permit the foreclosure of any tax liens to Lessee’s leasehold
interest in the Leased Premises or the buildings, fixtures, or other improvements located on the Leased Premises. MDC shall have
the right to pay such taxes due after Lessee’s refusal to pay such taxes, and upon demand Lessee shall reimburse the MDC
for the amount of taxes paid plus any penalties, interests, and attorney’s fees incurred, subject to Lessee’s right
to challenge the validity of such taxes in whole or in part, in which case the reimbursement shall be deferred until resolution
of the challenge. In the event that Lessee is successful in any challenge regarding the payment of any tax, MDC shall be subrogated
to any recovery obtained by Lessee to the extent of the amount of taxes, interests, penalties, and attorney fees previously paid
by MDC and not already reimbursed by Lessee.

 

Article
13.

DEFAULT AND REMEDIES

 

		13.01	Default
                                         by Lessee: The following shall be deemed to be events of default by Lessee under
                                         this Sublease:

		(a)	Lessee
                                         shall fail to pay when due any installment of rent or any other payment required pursuant
                                         to this Sublease;
	 	 	 
		(b)	Lessee
                                         shall abandon any substantial portion of the Leased Premises;
	 	 	 
		(c)	Lessee
                                         or any guarantor of Lessee’s obligations hereunder shall file a petition or be
                                         adjudged bankrupt or insolvent under any applicable federal or state bankruptcy or insolvency
                                         law or admit that it cannot meet its financial obligations as they become due, or a receiver
                                         or trustee shall be appointed for all or substantially all of the assets of Lessee of
                                         any guarantor of Lessee’s obligations hereunder;
	 	 	 
		(d)	Lessee
                                         or any guarantor of Lessee’s obligations hereunder shall make a transfer in fraud
                                         of creditors or shall make an assignment for the benefit of creditors;
	 	 	 
		(e)	Lessee
                                         shall do or permit to be done any act which results in a lien being filed against the
                                         Leased Premises;
	 	 	 
		(f)	The
                                         liquidation, termination, dissolution of Lessee or any guarantor of Lessee’s obligations
                                         hereunder; or
	 	 	 
		(g)	Lessee
                                         shall be in noncompliance with any other term, provision or covenant of this Sublease
                                         or the Development Agreement, other than those specified in subparts (a) through (f)
                                         above.

 

    	15

    	 

    

 

	13.02	Abandonment
                                         of Business by Lessee: Lessee further agrees that the abandonment for a period of
                                         thirty (30) consecutive days by Lessee of the conduct of its business activities at the
                                         Airport shall terminate Lessee’s rights under this Sublease. By so terminating
                                         this Sublease, MDC does not waive any other claim or rights against Lessee. For the purposes
                                         of this paragraph, the term “abandonment” shall mean the failure of Lessee
                                         to be open for business on the Leased Premises except in the case of war, strike, catastrophe
                                         or causes beyond Lessee’s control.
	 	 
	13.03	No
                                         Remedy Exclusive: No remedy herein conferred upon or reserved to MDC or Lessee is
                                         intended to be exclusive of any other available remedy or remedies, but each and every
                                         such remedy shall be cumulative and shall be in addition to every other remedy given
                                         under this Sublease or hereafter existing under law or in equity. No delay or omission
                                         to exercise any right or power accruing upon any default shall impair any such right
                                         or power or shall be construed to be a waiver thereof, but any such right and power may
                                         be exercised from time to time and as often as may be deemed expedient. In order to entitle
                                         MDC and Lessee to exercise any remedy reserved to it in this section, it shall not be
                                         necessary to give any notice, other than such notice as may be herein expressly required.
	 	 
	13.04	Landlord’s
                                         Lien: If Lessee defaults in paying rent or any other sum due from Lessee to Landlord
                                         under this Sublease, Landlord has a lien on all fixtures, chattels, or other property
                                         of any description belonging to Lessee that are placed in, or become a part of, the Leased
                                         Premises as security for rent due and to become due for the remainder of the Sublease
                                         Term and any other sum Lessee owes Landlord, subject, and subordinate to, any purchase
                                         money security interests that Lessee has on its machinery, tools, inventory, and equipment.
                                         This lien is not in lieu of, nor in any way affects, the statutory landlord’s lien
                                         but is in addition to that lien, and Lessee grants Landlord a security interest in all
                                         of Lessee’s property placed in or on the Leased Premises, which is more particularly
                                         described in Exhibit D, for purposes of this contractual lien. This does
                                         not prevent Lessee’s selling any merchandise in the ordinary course of business
                                         free of such Landlord’s lien. If Landlord exercises the option to terminate the
                                         leasehold, reenter, and relet the Leased Premises as provided in the preceding paragraph
                                         and gives Lessee reasonable notice of the intent to take possession and an opportunity
                                         for a hearing on the matter, Landlord may take possession of all of Lessee’s property
                                         on the Leased Premises and sell it at public or private sale after giving Lessee reasonable
                                         notice of the time and place of any public sale or of the time after which any private
                                         sale is to be made, for cash or on credit, for the prices and terms that Landlord considers
                                         best, with or without having the property present at the sale. The proceeds of the sale
                                         will be applied first to the necessary and proper expense of removing, storing, and selling
                                         the property, then to the payment of any rent due or to become due under this Sublease;
                                         any balance will paid to Lessee.

 

For
the purpose of further securing the Lessee’s rent obligations herein, the parties agree that Lessee shall not sell in whole
or in part or otherwise encumber the intellectual property of the Lessee during the Sublease Term. Intellectual property shall
mean, but not be limited to, a work or invention that is the result of creativity, such as a manuscript or a design, to which
one has rights and for which one may apply for a patent, copyright, or trademark to which the Lessee could reasonably bring legal
action against the unauthorized use of the intellectual property.

 

    	16

    	 

    

 

	13.05	No
                                         Waiver of Breach: MDC’s failure or delay in declaring the existence of an event
                                         of default by Lessee shall not be construed as a waiver thereof, nor shall it be construed
                                         so as to waive or to lessen the right of MDC to insist upon the performance by Lessee
                                         of any term, covenant or condition hereof, or to exercise any rights given it on account
                                         of any such event of default. A waiver of any particular event of default shall not be
                                         deemed to be a waiver of the same, similar of any other subsequent event of default.
	 	 
	13.06	Expeditious
                                         Action: Notwithstanding any provision as to notice in this Sublease, if in MDC’s
                                         reasonable judgment the continuance of any event of default by Lessee for the full period
                                         of the notice to cure the event of default will jeopardize the operation of the Airport
                                         or the rights of MDC or the other Airport Lessees, MDC may, without notice, elect to
                                         perform those acts in respect to which Lessee is in default. Lessee shall reimburse MDC
                                         for any reasonable and necessary costs incurred by MDC pursuant to this Article 13.06.
	 	 
	13.07	Reletting:
                                         Lessee acknowledges that MDC has entered into this Sublease in reliance upon, among other
                                         matters, Lessee’s agreement and continuing obligation to pay all rent due throughout
                                         the Sublease Term. As a result, Lessee hereby knowingly and voluntarily waives, after
                                         advice of competent counsel, any of MDC (and any affirmative defense based upon such
                                         duty) following any Event of Default to relet the Leased Premises or otherwise mitigate
                                         MDC’s damages arising from such Event of Default. If such waiver is not effective
                                         under then applicable law or MDC otherwise elects, at MDC’s sole option, to attempt
                                         to relet all or any part of the Leased Premises, Lessee agrees that MDC has no obligation
                                         to: (i) relet the Leased Premises prior to leasing any other space within the buildings;
                                         (ii) relet the Leased Premises (A) at a rental rate or otherwise on terms below market,
                                         as then determined by MDC in its sole discretion; (B) to any entity not satisfying MDC’s
                                         then standard financial credit risk criteria; (C) for a use (1) not consistent with Lessee’s
                                         use prior to the Event of Default; (2) which would violate then applicable law or regulation,
                                         or violate any restrictive covenant or other lease affecting the buildings; (3) which
                                         would impose a greater burden upon the buildings’ parking, HVAC or other facilities;
                                         and/or (4) which would involve any use of Hazardous Materials; (iii) divide the Leased
                                         Premises, install new demising walls or otherwise reconfigure the Leased Premises to
                                         make same more marketable; (iv) pay any leasing or other commissions arising from such
                                         reletting. Unless Lessee unconditionally delivers MDC, in good and sufficient funds,
                                         the full amount thereof in advance; (v) pay, and/or grant any allowance for, lessee finish
                                         or other costs associated with any new lease, even though same may be amortized over
                                         the applicable Sublease Term, unless Lessee unconditionally delivers MDC, in good and
                                         sufficient funds, the full amount thereof in advance; and/or (vi) relet the Leased Premises,
                                         if to do so, MDC would be required to alter other portions of the buildings, make ADA-type
                                         modifications or otherwise install or replace any sprinkler, security, safety, HVAC or
                                         other building operating systems.
	 	 
	13.08	Security
                                         Agreement: Lessee shall execute a security agreement, the form of which is attached
                                         hereto as Exhibit E and incorporated herein for all purposes, and MDC shall
                                         have the right to file a UCC-1 Financing Statement in the state of Lessee’s incorporation
                                         in order to perfect a lien on the assets described in said security agreement. The liened
                                         assets described in said security agreement shall be limited to Lessee’s unencumbered
                                         personal property physically located and installed on and in the Leased Premises. These
                                         liened assets shall not include Lessee’s intellectual property, patents/patent
                                         applications, trademarks/trademark applications, domain names, logos, copyrights/copyright
                                         applications, and/or Lessee’s proprietary technology and software. Lessee agrees
                                         that MDC may, in an event of default by Company under this Sublease or the Development
                                         Agreement, execute against Company’s property pursuant to the terms of said security
                                         agreement.

 

    	17

    	 

    

 

	13.09	Cure
                                         Period: In lieu of exercising any of the right and remedies referenced herein, after
                                         MDC gives Lessee written notice of its default as set forth in this Sublease, MDC may,
                                         in its sole and absolute discretion, elect to allow Lessee a period not less than thirty
                                         (30) days, but not to exceed sixty (60) days to cure any such default. Any such election
                                         by MDC to allow Lessee to cure such a default shall in no way be construed as, or shall
                                         operate as, a waiver of any of MDC’s rights contained in the Development Agreement
                                         or this Sublease.

 

Article
14.

TERMINATION

 

		14.01	Discretionary
                                         Termination. MDC shall have the right to terminate this Sublease upon Lessee’s
                                         violation or default of any provision contained in the Sublease or the Development Agreement
                                         and failure to cure said violation or default within thirty (30) days after receipt of
                                         written notice from MDC reasonably specifying such violation or default, or such longer
                                         period as may be reasonably necessary so long as Lessee has commenced the cure within
                                         the thirty (30) day period, and thereafter is diligently pursing such care. Except for
                                         the payment by Lessee to MDC of rents or other amounts past due accrued to the termination
                                         date, but not yet due, either party shall have the right to terminate this Sublease in
                                         its entirety, without monetary penalty, and all rights and obligations ensuing therefrom
                                         immediately upon the occurrence of the following:

		(a)	The
                                         issuance of any order, rule or regulation of the FAA, or its successor federal agency,
                                         or other competent government authority, federal or state, or the issuance and execution
                                         of any judicial process by any court of competent jurisdiction, materially restricting
                                         for a period of at least thirty (30) days, the use of the Airport for aeronautical purposes;
                                         provided that none of the foregoing is due to any material fault of Lessee; or

		(b)	The
                                         material restriction of City’s operation of the Airport by action of the federal
                                         government, or any department or agency thereof, under its wartime or emergency powers,
                                         and the continuance thereof for a period of not less than thirty (30) days; provided,
                                         however, that without prejudice to the rights of Lessee to terminate as above provided,
                                         the MDC and Lessee may mutually agree to adjust fees and charges; or

		(c)	Material
                                         restriction of the operation of the Airport arising from City’s failure to maintain
                                         and keep in repair the landing area of the Airport.

 

    	18

    	 

    

 

		14.02	Automatic
                                         Termination. Except for the payment by Lessee to MDC of rents or other amounts past
                                         due accrued to the termination date, but not yet due, this Sublease shall automatically
                                         terminate in its entirety, without monetary penalty, within thirty (30) days following
                                         the FAA’s determination that Lessee’s use or occupation of the Property does
                                         not comply with the requirements of 49 U.S.C. 47107(a)(1), the FAA’s Airport Improvement
                                         Program, or any other applicable statute, rule, or regulation. MDC, in its sole and absolute
                                         discretion, may elect to toll said thirty (30) day period so as to prevent the automatic
                                         termination of this Sublease for any or no reason at all. If this Sublease is terminated
                                         for any of the reasons set forth in Article 14.01 or Article 14.02, MDC
                                         shall promptly repay Lessee any rent previously paid by Lessee attributable to the period
                                         following the date of such termination.

		14.03	Termination;
                                         Accelerated Rent. Notwithstanding any other provision contained in this Sublease,
                                         if Lessee creates any condition that does not conform to the purpose of establishing
                                         Lessee’s headquarters, network operations center, manufacturing operations, and
                                         satellite antenna farm on the Property, as contemplated by this Sublease or the Development
                                         Agreement, and said condition causes the FAA to determine that Lessee’s use or
                                         occupation of the Leased Premises does not comply with the requirements of 49 U.S.C.
                                         47107(a)(1), the FAA’s Airport Improvement Program, or any other applicable statute,
                                         rule, or regulation, and Lessee has exercised all reasonable administrative efforts to
                                         appeal said determination by the FAA, then this Sublease shall terminate and all rent
                                         payments contemplated by this Sublease shall, at MDC’s option, thereupon immediately
                                         become due and payable to MDC. Lessee shall be obligated for such accelerated rent regardless
                                         of which, if any, remedies otherwise provided in this Sublease, the Development Agreement,
                                         or by law MDC elects to pursue.

		14.04	Economic
                                         Development Agreement; Concurrent Termination. A termination of this Sublease shall
                                         terminate the Development Agreement. A termination of the Development Agreement shall
                                         terminate this Sublease. A termination of this Sublease without liability to either party
                                         shall terminate the Development Agreement without liability to either party. A termination
                                         of the Development Agreement without liability to either party shall terminate this Sublease
                                         without liability to either party. Uncured defaults under either the Development Agreement
                                         or the Sublease shall be deemed uncured defaults of the other agreement, and contractual
                                         and legal termination procedures shall apply to both this Sublease and the Development
                                         Agreement.

Article
15.

RENT ABATEMENT, BASE RENT, DISCOUNTED BASE RENT

AND DEVELOPMENT AGREEMENT

 

		15.01	Economic
                                         Development Agreement Commitments: Simultaneously with the execution of this Sublease,
                                         Lessee will execute the Development Agreement with MDC. The Development Agreement requires
                                         Lessee to maintain certain levels of Annual Payroll, make certain leasehold Capital Improvements,
                                         make certain investments in Personal Property and maintain certain levels of Inventory
                                         (collectively defined in the Development Agreement as the “Improvements”).
                                         All Improvements will be located at the Leased Premises. In addition, all employees used
                                         when accounting for Annual Payroll calculations will have their principal work place
                                         as the Leased Premises.

 

    	19

    	 

    

 

In
order to ensure Lessee’s compliance with its commitments and obligations due under this Sublease and the Development Agreement,
Lessee shall, subject to confidentiality and privacy obligations, make all documents available to MDC for inspection, audit and
copying, regardless of whether a dispute is then pending between the parties. Access shall be provided to MDC and/or the accounting
firm designated by MDC, in its sole and absolute discretion, to perform such review during normal business hours in an adequate
work space. Upon receipt of a written request made by MDC, Lessee shall reimburse all costs incurred by MDC relating to the inspection,
audit and copying of said documents.

 

		15.02	Base
                                         Rent and Discounted Base Rent: Landlord agrees to discount the initial monthly Base
                                         Rent for Office Space from $15.00 per square foot to $12.00 per square foot herein referred
                                         to as (“Adjusted Base Rent”). The difference between Base Rent and
                                         Adjusted Base Rent ($3.00 per square foot), being referred to herein as (“Discounted
                                         Rent”). Therefore, the initial monthly Base Rent will be charged to the Lessee
                                         at an annual rate of $15.00 per square foot for the Office Space, $9.00 per square foot
                                         for Hangar A space and $7.00 per square foot for Hangar B space plus a ground lease of
                                         $0.45 per square foot for Lot M and Lot L.

		15.03	Lessee
                                         Rent Abatement: Landlord agrees to provide the Lessee the Leased Premises for the
                                         first five (5) years of the Sublease Term rent-free (the “Rent Abatement Period”).
                                         During the Rent Abatement Period the Lessee will pay monthly, the monthly Base Rent and
                                         the CAM charges due each month. Within fifteen (15) days after the end of each quarter
                                         year during the Rent Abatement Period, the Landlord shall rebate such Base Rent paid
                                         to the Landlord. After the Rent Abatement Period, the then-current monthly rental rate
                                         shall be the Adjusted Base Rent for the Office Space, the Base Rent for Hangar A, Hangar
                                         B and the ground lease plus the CAM charges for the Leased Premises.

		15.04	Lessee’s
                                         Earned Rental Abatement: In accordance with Section IV.E of the Development
                                         Agreement, if by December 31, 2023, Lessee certifies, as provided for therein, that Lessee
                                         has invested at least (i) Twenty-Eight Million Five Hundred Thousand and No/100 Dollars
                                         ($28,500,000) in Improvements and (ii) created and maintained One Hundred Sixty (160)
                                         Full-Time Jobs with an Annual Payroll of Twelve Million Eight Hundred Thousand and No/100
                                         Dollars ($12,800,000), then Lessee shall be entitled to an additional five (5) years’
                                         worth of rent abatement, as provided for in Article 15.03 herein.

		15.05	Grace
                                         Period and Post Grace Period Rent Obligations: If the Lessee is unable to meet the
                                         Development Agreement commitments with respect to Full-Time Jobs and Annual Payroll amounts,
                                         upon written request by Lessee, Landlord shall extend the completion dare of such unfulfilled
                                         requirement(s) by six (6) months (the “Grace Period”). During said
                                         Grace Period, Lessee shall pay 0.5 times the Base Rent (the “Grace Period Rent”)
                                         plus CAM charges for the Leased Premises without rebate by Landlord. If Lessee is unable
                                         to bring itself back into compliance during the Grace Period, Lessee will be required
                                         to begin paying the Adjusted Base Rent for the Office Space and the Base Rent for Hanger
                                         A, Hanger B and the Land Lease (the “Post Grace Period Rent”) plus
                                         CAM charges for the Leased Premises in the first month following the end of the Grace
                                         Period. The Grace Period Rent and Post Grace Period Rent will continue until all shortfalls
                                         are brought into compliance with the Development Agreement. When Lessee is able to bring
                                         itself back into compliance with the Development Agreement during the Rent Abatement
                                         Period, Landlord shall reinstate the rent abatement as described in Article 15.02
                                         during the remainder of the Rent Abatement Period. Lessee shall NOT be entitled to
                                         recapture the Grace Period Rent or Post Grace Period Rent paid during the Grace Period
                                         Rent or Post Grace Period Rent payment period(s).

 

    	20

    	 

    

 

Article
16.

HOLD OVER

 

If
Lessee fails to vacate the Leased Premises at the end of the Sublease Term, then Lessee shall be a Lessee at-will and, in addition
to all other damages and remedies to which Landlord may be entitled for such holding over, Lessee shall pay, in addition to the
other rent, a daily Basic Rental equal to 150% of the daily Basic Rental payable during the last month of the Sublease Term.

 

Article
17.

MISCELLANEOUS PROVISIONS

 

		17.01	Quiet
                                         Enjoyment: Upon the performance of the covenants and agreements on the part of the
                                         Lessee to be performed hereunder, as determined to be satisfied in MDC’s sole and
                                         absolute discretion, Lessee shall peaceable have and enjoy the Leased Premises, appurtenances,
                                         facilities, licenses and privileges granted in this Sublease.

		17.02	Force
                                         Majeure: Neither the MDC nor Lessee shall be deemed in violation of this Sublease
                                         if it is prevented from performing any of its obligations hereunder except the obligation
                                         to pay rent by reason of strikes, boycotts, labor disputes, embargoes, shortages of materials,
                                         act of God, act of superior governmental authority, weather conditions, floods, riots,
                                         rebellions, acts of sabotage or any other circumstances for which it is not responsible
                                         or which are not in its control.

		17.03	Independent
                                         Contractor: It is expressly understood and agreed that Lessee shall perform all work
                                         and services described herein as an independent contractor and not as an officer, agent,
                                         servant or employee of MDC; that Lessee shall have exclusive control of and the exclusive
                                         right to control the details of the services and work performed hereunder, and all persons
                                         performing the same; and shall be solely responsible for the acts and omissions of its
                                         officers, agents, employees, contractors and subcontractors; that the doctrine of respondeat
                                         superior shall not apply as between MDC and Lessee, its officers, agents, employees,
                                         contractors and subcontractors; and that nothing herein shall be construed as creating
                                         a partnership or joint enterprise between MDC and Lessee. No person performing any of
                                         the work and services described hereunder shall be considered an officer, agent, servant
                                         or employee of MDC. Further, it is specifically understood and agreed that nothing in
                                         this Sublease is intended or shall be construed as creating a “Community of Pecuniary
                                         Interest” or “An Equal Right of Control” that would give rise to vicarious
                                         liability. Lessee shall be an independent contractor under this Sublease and shall assume
                                         all the rights, obligations and liabilities, applicable to it as such independent contractor
                                         hereunder and any provisions in this Sublease that may appear to give MDC the right to
                                         direct Lessee as to details of doing the work herein covered or to exercise a measure
                                         of control over the work shall be deemed to mean that Lessee shall follow the desires
                                         of MDC in the results of the work only. MDC does not have the power to direct the order
                                         in which the work is done. MDC shall not have the right to control the means, methods
                                         or details of the Lessee’s work.

 

    	21

    	 

    

 

		17.04	Inspection
                                         by MDC: MDC may enter upon the Leased Premises at any reasonable time for any purpose
                                         necessary, incidental to or connected with the performance of MDC’s obligations
                                         hereunder, or in the exercise of its governmental functions, for fire protection or security
                                         purposes, or for inspecting or maintaining the Leased Premises, or doing any and all
                                         things MDC is obligated to do, or which may be deemed by MDC necessary or desirable for
                                         the proper conduct and operation of the Airport or the protection of MDC’s interests.
                                         Such inspections shall be (i) accompanied by a representative of Lessee; (ii) conducted
                                         during normal business hours; and (iii) shall not be disruptive or intrusive to Lessee’s
                                         business operations.

		17.05	On-Site
                                         Representatives: Lessee shall select and appoint a representative or representatives
                                         for its operations at the Airport. The representatives shall be qualified and experienced
                                         and vested with the full power and authority to act in the name of the Lessee with respect
                                         to the method, manner and conduct of the operation of Lessee to be performed under this
                                         Sublease.

		17.06	Conformance
                                         with Rules and Regulations: The use of the Airport by Lessee shall be subject to
                                         any and all rules, regulations and ordinances which are now in force or which may be
                                         hereafter adopted by MDC and City with respect to the operation and use of the Airport,
                                         but no such rules, regulations, or ordinances shall increase the rents payable by Lessee
                                         under this Sublease or otherwise materially and adversely affect Lessee’s tenure
                                         of the Leased Premises under this Sublease. Furthermore, this Sublease and Lessee’s
                                         use of the Airport shall be subject to all applicable laws, ordinances, resolutions,
                                         statutes, rules, regulations or orders of any federal, state or local governmental authority
                                         lawfully exercising jurisdiction over the Airport or the activities and business operations
                                         of Lessee, including any limitations, restrictions or prohibitions affecting the aviation
                                         activities or operations of Lessee.

		17.07	Licenses
                                         and Permits: Lessee hereby agrees that it shall, at its own expense and cost, procure
                                         and obtain all lawfully required licenses and permits, certificates and other authorizations
                                         (all, “Permits”) required by any governmental authority, in connection
                                         with or covering the operations or activities permitted to be performed by it under the
                                         provisions of this Sublease. Landlord shall assist Lessee, diligently and free of charge
                                         in applying for and obtaining the Permits, as needed.

 

    	22

    	 

    

 

		17.08	Notices:
                                         Notices provided for in this Sublease shall be either hand delivered, sent/received by
                                         recognized courier, or sent by certified mail, return receipt requested, postage prepaid,
                                         and properly addressed as follows:

	 	If
    to MDC:	Executive
    Director

Midland
Development Corporation

109
N. Main St.

Midland,
Texas 79701

 

	 	With
    Copy To:	City
    Manager

P.O.
Box 1152

300
North Loraine

Midland,
Texas 79702

 

	 	If
    to Lessee:	AST
    & SCIENCE, LLC

ATTN:
Abel Avellan

Chairman
and CEO

1111
Brickell Avenue, Suite 1000

Miami
Florida 33131

 

The
parties may change the representative or address for delivery of notices from time to time by sending written notices to the other
party. All notices shall be in writing and effective only upon actual receipt.

 

		17.09	Governing
                                         Law and Venue: This Sublease shall be governed by and construed in accordance with
                                         the laws and court decisions of the State of Texas. All performance and payment made
                                         pursuant to this Sublease shall be deemed to have occurred in Midland County, Texas.
                                         The sole, exclusive, and mandatory venue for any claims, suits, disputes or any other
                                         action arising from, relating to or concerning in any way this Sublease or the performance
                                         of this Sublease shall be in Midland County, Texas. The obligations and undertakings
                                         of each of the parties to this Sublease shall be deemed to have occurred in Midland County,
                                         Texas. This Sublease shall be governed by, interpreted, enforced and construed under
                                         the laws of the State of Texas. The laws of the State of Texas shall govern, construe
                                         and enforce all the rights and duties of the parties, including but not limited to tort
                                         claims and any and all contractual claims or disputes, arising from or relating in any
                                         way to the subject matter of this Sublease, without regard to conflict of laws and rules
                                         that would direct application of the laws of another jurisdiction. All payments under
                                         this Sublease are deemed to have taken place in Midland County, Texas.

		17.10	Severability:
                                         If any provision of this Sublease is invalid or unenforceable, this Sublease shall be
                                         considered severable as to such provision, and the remainder of this Sublease shall remain
                                         valid and binding as though such invalid or unenforceable provisions were not included
                                         herein.

		17.11	Captions:
                                         Section headings are inserted herein only as a matter of convenience and for reference,
                                         and in no way defines, limits or describes the scope or intent to any provision herein.

 

    	23

    	 

    

 

		17.12	Use
                                         of Language: Words of any gender used in this Sublease shall be held and construed
                                         to include any other gender, and words in the singular shall be held to include the plural,
                                         unless the context otherwise requires.

 

		17.13	Counterparts:
                                         This Sublease may be executed in multiple counterparts, each of which shall be deemed
                                         as original, and all of which constitute but one and the same instrument.

		17.14	Development
                                         of the Airport: The parties understand and agree future development, changes, alterations,
                                         modifications or improvement to the Airport are in the sole discretion of City. subject
                                         only to such notification to Lessee that the FAA may dictate.

		17.15	Subordination
                                         to Other Agreements: This Sublease shall be subordinate to the provisions and requirements
                                         of any existing or future agreement between MDC and City relative to the Leased Premises,
                                         including the lease agreement between MDC and City regarding the Leased Premises, which
                                         is attached hereto as Exhibit A, and City and the United States, relative
                                         to the development, operation or maintenance of the Airport.

		17.16	No
                                         Exclusivity on Aeronautical Services: Nothing herein contained shall be construed
                                         to grant or authorize the granting of the exclusive right to provide aeronautical services
                                         to the public as prohibited by Section 308(a) of the Federal Aviation Act of 1958, as
                                         amended.

		17.17	Discrimination
                                         Prohibited: The Lessee, for itself, its trustees, officers, legal representatives,
                                         successors-in-interest and assigns, as a part of the consideration hereof, agrees (1)
                                         that no person on the grounds of race, color, sex, national origin, veteran status or
                                         disability shall be excluded from participation in, denied the benefits of or be otherwise
                                         subjected to discrimination in the use of the Leased Premises; (2) that in the construction
                                         of any improvements on, over or under the Leased Premises and the furnishing of services
                                         thereon, no person on the grounds of race, sex, color, national origin, or disability
                                         shall be excluded from participation in, denied the benefits of or otherwise be subjected
                                         to discrimination; (3) that the Lessee shall use the Leased Premises and the Airport
                                         in compliance with all other requirements imposed by, or pursuant to, Title 49, Code
                                         of Federal Regulations, Department of Transportation, Subtitle A, office of the Secretary,
                                         Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation
                                         of Title VI of the Civil Rights Act of 1964, and as said regulations may be amended.
                                         In the event of breach of any of the above nondiscrimination covenants, the MDC shall
                                         have the right to terminate this Sublease and to re-enter and repossess the Leased Premises
                                         and the improvements thereon and hold the same as if said Sublease were terminated by
                                         its own term pursuant to Article 2.01 above.

		17.18	Affirmative
                                         Action Program: Lessee assures that it will undertake an affirmative action program
                                         as required by 14 CFR Part 152, Subpart E, to ensure that no person shall on the grounds
                                         of race, creed, color, national origin, sex or disability be excluded from participating
                                         in any employment activities covered in 14 CFR Part 152, Subpart E. Lessee assures that
                                         no person shall be excluded on these grounds from participating in or receiving the services
                                         or benefits of any program or activity covered by this Sublease.

 

    	24

    	 

    

 

		17.19	Entire
                                         Agreement: This Sublease, in conjunction with the Development Agreement, embodies
                                         the entire agreement between MDC and Lessee. and supersedes all prior agreements and
                                         understandings, whether written or oral, and all contemporaneous oral agreements and
                                         understandings relating to the subject matter hereof. This Sublease shall not be changed,
                                         modified, discharged or extended, except by written instrument duly executed by MDC and
                                         Lessee. The parties agree that no representations or warranties shall be binding upon
                                         either party unless expressed in writing.

		17.20	Governmental
                                         Immunity: By executing this Sublease, MDC is not waiving its right of governmental
                                         immunity. MDC is retaining its immunity from suit. MDC is not granting consent to be
                                         sued by legislative resolution or action. THERE IS NO WAIVER OF GOVERNMENTAL IMMUNITY.

		17.21	Third-Party
                                         Beneficiary: MDC’s approval of this Sublease does not create a third-party
                                         beneficiary. There is no third-party beneficiary to this Sublease. No person or entity
                                         who is not a party to this Sublease shall have any third-party beneficiary or other rights
                                         hereunder.

		17.22	Notice
                                         of Alleged Breach: As a condition precedent to filing suit for alleged damages incurred
                                         by an alleged breach of an express or implied provision of this Sublease, Lessee or its
                                         legal representative, shall give the Chairman of the MDC, or any other reasonable official
                                         of MDC, notice in writing of such damages, duly verified, within one hundred and twenty
                                         (120) days after the same has been sustained. The discovery rule does not apply to the
                                         giving of this notice. The notice shall include when, where and how the damages occurred,
                                         the apparent extent thereof, the amount of damages sustained, the amount for which Lessee
                                         will settle, the physical and mailing addresses of Lessee at the time and date the claim
                                         was presented and the physical and mailing addresses of Lessee for the six months immediately
                                         preceding the occurrence of such damages, and the names and addresses of the witnesses
                                         upon whom the Lessee relies to establish its claim; and a failure to so notify MDC within
                                         the time and manner provided herein shall exonerate, excuse and except MDC from any liability
                                         whatsoever. MDC is under no obligation to provide notice to Lessee that Lessee’s
                                         notice is insufficient MDC reserves the right to request reasonable additional information
                                         regarding the claim. Said additional information shall be supplied within thirty (30)
                                         days after receipt of notice.

The
statutory prerequisites outlined herein constitute jurisdictional requirements pursuant to Section 271.154 of the Texas Local
Government Code and Section 311.034 of the Texas Government Code. Notwithstanding any other provision, Lessee’s failure
to comply with the requirements herein shall perpetually bar Lessee’s claim for damages under Chapter 271 of the Texas Local
Government Code, and Section 311.034 of the Texas Government Code, regardless if MDC has actual or constructive notice or knowledge
of said claim or alleged damages. Lessee agrees that the requirements of this entire agreement are reasonable.

 

    	25

    	 

    

 

		17.23	RELEASE:
                                         LESSEE HEREBY RELEASES, RELINQUISHES, ACQUITS AND FOREVER DISCHARGES MDC, MDC’S
                                         EMPLOYEES AND OFFICERS, FROM ANY AND ALL DEMANDS, CLAIMS, DAMAGES OR CAUSES OF ACTION
                                         OF ANY KIND WHATSOEVER, WHICH LESSEE HAS OR MIGHT HAVE IN THE FUTURE, INCLUDING BUT NOT
                                         LIMITED TO BREACH OF CONTRACT, QUANTUM MERUIT, DUE PROCESS AND TAKINGS CLAUSES UNDER
                                         THE TEXAS AND UNITED STATES CONSTITUTION, TORT CLAIMS OR MDC’S NEGLIGENCE.

		17.24	WAIVER
                                         OF ATTORNEY FEES: BY EXECUTING THIS SUBLEASE, LESSEE AGREES TO WAIVE AND DOES HEREBY
                                         WAIVE ANY CLAIM IT HAS OR MAY HAVE AGAINST THE MDC, REGARDING THE AWARD OF ATTORNEY’S
                                         FEES, WHICH ARE IN ANY WAY RELATED TO THIS SUBLEASE, OR THE CONSTRUCTION, INTERPRETATION
                                         OR BREACH OF THE SUBLEASE. LESSEE SPECIFICALLY AGREES THAT IF LESSEE BRINGS OR COMMENCES
                                         ANY LEGAL ACTION OR PROCEEDING RELATED TO THIS SUBLEASE, THE CONSTRUCTION, INTERPRETATION,
                                         VALIDITY OR BREACH OF THIS SUBLEASE, INCLUDING BUT NOT LIMITED TO ANY ACTION PURSUANT
                                         TO THE PROVISIONS OF THE TEXAS UNIFORM DECLARATORY JUDGMENTS ACT (TEXAS CIVIL PRACTICE
                                         AND REMEDIES CODE SECTION 37.001, ET SEQ., AS AMENDED), LESSEE AGREES TO (i) WAIVE AND
                                         RELINQUISH ANY AND ALL RIGHTS TO THE RECOVERY OF ATTORNEY’S FEES TO WHICH LESSEE
                                         MIGHT OTHERWISE BE ENTITLED AND (ii) ASSUME COMPLETE RESPONSIBILITY FOR AND PAY ANY AND
                                         ALL ATTORNEY FEES AND ASSOCIATED COSTS INCURRED IN GOOD FAITH BY MDC IN ITS CONTESTING
                                         OF THE LEGAL ACTION OR PROCEEDING BROUGHT BY LESSEE.

LESSEE
ACKNOWLEDGES THAT THIS IS THE INTENTIONAL RELINQUISHMENT OF A PRESENTLY EXISTING KNOWN RIGHT AND THE ASSUMPTION OF A FUTURE OBLIGATION
IN THE EVENT THAT LESSEE BRINGS OR COMMENCES ANY LEGAL ACTION OR PROCEEDING AGAINST MDC RELATED TO THIS SUBLEASE, THE CONSTRUCTION,
INTERPRETATION, VALIDITY OR BREACH OF THIS SUBLEASE, INCLUDING BUT NOT LIMITED TO ANY ACTION PURSUANT TO THE PROVISIONS OF THE
TEXAS UNIFORM DECLARATORY JUDGMENTS ACT (TEXAS CIVIL PRACTICE AND REMEDIES CODE SECTION 37.001, ET SEQ., AS AMENDED). LESSEE ACKNOWLEDGES
THAT IT UNDERSTANDS ALL TERMS AND CONDITIONS OF THE THIS SUBLEASE.

 

BY
EXECUTION OF THIS SUBLEASE, LESSEE HEREBY REPRESENTS AND WARRANTS THAT LESSEE HAS READ AND UNDERSTOOD THE SUBLEASE.

 

		17.25	Waiver
                                         of Rights under the Deceptive Trade Practices; Consumer Protection Act: Landlord
                                         and Lessee waive their rights under the Deceptive Trade Practices-Consumer Protection
                                         Act, Section 17.41 et seq., Business & Commerce Code, a law that gives consumers
                                         special rights and protections. Each, after consultation with an attorney of its selection,
                                         voluntarily consents to this waiver.

 

    	26

    	 

    

 

		17.26	Patriot
                                         Act Representation: MDC and Lessee each represent to the other that: (i) its property
                                         interests are not blocked by Executive Order No. 13224, 66 Fed. Reg. 49079; (ii) it is
                                         not a person listed on the Specially Designated Nationals and Blocked Persons list of
                                         the Office of Foreign Assets Control of the United States Department of the Treasury;
                                         and (iii) it is not acting for or on behalf of any person on that list.

		17.27	Landlord
                                         Improvements; Security Fencing: MDC agrees to provide a security fence with keypad
                                         entrance to the perimeter of Lot H and Lot M of the Leased Premises; provided, however,
                                         that MDC shall only be responsible for the costs of said security fence in an amount
                                         not to exceed $100,000.00.

		17.28	Landscaping:
                                         MDC agrees to provide for professional landscaping work and services for the Leased Premises,
                                         which are more particularly described in the Project Manual for the Midland Development
                                         Corporation Landscape Improvements to the Spaceport Business Park Project and the associated
                                         Midland Development Corporation Landscape Improvements Construction Plans.

		17.29	Governmental
                                         Function: MDC AND LESSEE HEREBY ACKNOWLEDGE AND AGREE THAT THE ENTIRETY OF MDC’S
                                         PERFORMANCE AND OBLIGATIONS UNDER THIS SUBLEASE ARE GOVERNMENTAL FUNCTIONS. BY ENTERING
                                         INTO THIS SUBLEASE, LESSEE RELEASES MDC FROM ANY PRESENT OR FUTURE CLAIMS ASSERTING MDC’S
                                         PERFORMANCE AND OBLIGATIONS UNDER THIS SUBLEASE ARE NOT GOVERNMENTAL FUNCTIONS. MDC AND
                                         LESSEE ACKNOWLEDGE AND AGREE THAT THIS SUBLEASE IS IN THE PUBLIC INTEREST AND SERVES
                                         A PUBLIC PURPOSE OF THE STATE OF TEXAS AND CITY OF MIDLAND IN PROMOTING THE WELFARE OF
                                         THE GENERAL PUBLIC ECONOMICALLY BY SECUREING AND RETAINING BUSINESS ENTERPRISES AND AS
                                         A RESULT OF MAINTAINING A HIGHER LEVEL OF EMPLOYMENT, ECONOMIC ACTIVITY, AND STABILITY.

THERE
ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. TIME IS OF THE ESSENCE WITH REGARDS TO ALL DEADLINES IN THIS SUBLEASE.

 

REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE TO FOLLOW

 

    	27

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Sublease to be legally executed in duplicate this 13th day of November, 2018.

 

	 	MIDLAND
    DEVELOPMENT CORPORATION
	 	 
	 	/s/
    Brent D. Hilliard
	 	Brent
    D. Hilliard, Chairman

 

	ATTEST:	 
	 	 
	/s/
    Wesley Bownds	 
	Wesley
    Bownds, Secretary	 

 

[Signature
Page Follows]

 

    	28

    	 

    
 	 	AST & SCIENCE, LLC
	 	 
	 	/s/ Tho

                                                 mas E. Severson

	 	Thomas E. Severson JR
	 	Chief Financial Officer & COO

 

	THE
    STATE OF NORTH CAROLINA	§
	 	§
	COUNTY
    OF SWAIN	§

 

BEFORE
ME, Lisa L. Bryan, a notary public, on this day personally appeared Abel Avellan, Chairman and CEO of AST & Science, LLC,
known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the
same as the act and deed of said Company for the purposes and consideration therein expressed and in the capacity therein stated.

 

GIVEN
UNDER MY HAND AND SEAL OF OFFICE THIS 13th day of November, A.D., 2018.

 

	 	/s/ Lisa L. Bryan
	 	Notary Public, in and for
	 	the State of North Carolina

  

    	29Exhibit
4.4

​

​

​

​

​

​

	
        
        
        ​

	
        
        
        ​

	
        
        
        ​

	
        TABLE
        OF CONTENTS

	
        ​
	
        ​
	
        Page

	
        PARTIES
	
        ​
	
        1

	
        RECITALS
	
        ​
	
        1

	
        Section 1.
	
        Certain Definitions
	
        1

	
        (a)
	
        ADR Register
	
        1

	
        (b)
	
        ADRs; Direct Registration ADRs
	
        1

	
        (c)
	
        ADS
	
        2

	
        (d)
	
        Beneficial Owner
	
        2

	
        (e)
	
        Custodian
	
        2

	
        (f)
	
        Deliver, execute, issue et al.
	
        2

	
        (g)
	
        Delivery Order
	
        2

	
        (h)
	
        Deposited Securities 
	
        2

	
        (i)
	
        Direct Registration System
	
        2

	
        (j)
	
        Holder
	
        3

	
        (k)
	
        Rule 144
	
        3

	
        (l)
	
        Securities Act of 1933
	
        3

	
        (m)
	
        Securities Exchange Act of 1934 
	
        3

	
        (n)
	
        Shares 
	
        3

	
        (o)
	
        Transfer Office 
	
        3

	
        (p)
	
        Withdrawal Order 
	
        3

	
        Section 2.
	
        Form of ADRs 
	
        3

	
        Section 3.
	
        Deposit of Shares
	
        4

	
        Section 4.
	
        Issue of ADRs
	
        5

	
        Section 5.
	
        Distributions on Deposited Securities
	
        5

	
        Section 6.
	
        Withdrawal of Deposited Securities
	
        5

	
        Section 7.
	
        Substitution of ADRs
	
        6

	
        Section 8.
	
        Cancellation and Destruction of ADRs; Maintenance of
        Records
	
        6

	
        Section 9.
	
        The Custodian 
	
        6

	
        Section 10.
	
        Lists of Holders
	
        7

	
        Section 11.
	
        Depositary's Agents
	
        7

	
        Section 12.
	
        Resignation and Removal of the Depositary; Appointment
        of Successor Depositary
	
        7

	
        Section 13.
	
        Reports
	
        8

	
        Section 14.
	
        Additional Shares
	
        8

	
        Section 15.
	
        Indemnification
	
        8

	
        Section 16.
	
        Notices
	
        10

	
        Section 17.
	
        Counterparts
	
        10

	
        Section 18.
	
        No Third Party Beneficiaries; Holders and Beneficial
        Owners as Parties; Binding Effect
	
        10

	
        Section 19.
	
        Severability
	
        11

	
        Section 20.
	
        Governing Law; Consent to Jurisdiction
	
        11

	
        Section 21.
	
        Agent for Service
	
        13

	
        Section 22.
	
        Waiver of Immunities
	
        14

	
        Section 23.
	
        Waiver of Jury Trial
	
        15

	
        Section 24.
	
        Amendment and Restatement of Prior Deposit Agreement
	
        15

	
        TESTIMONIUM 
	
        16

	
        SIGNATURES 
	
        16

​

​

-
i -

​

	
        
        
        ​

	
        
        
        ​

	
        
        
        ​

	
        ​
	
        ​
	
        Page

	
        EXHIBIT
        A

	
        FORM OF FACE OF ADR
	
        A-1

	
        Introductory Paragraph
	
        A-1

	
        (1)
	
        Issuance of ADSs
	
        A-2

	
        (2)
	
        Withdrawal of Deposited Securities
	
        A-3

	
        (3)
	
        Transfers, Split-Ups and Combinations of ADRs
	
        A-3

	
        (4)
	
        Certain Limitations to Registration, Transfer etc.
	
        A-4

	
        (5)
	
        Liability for Taxes, Duties and Other Charges
	
        A-5

	
        (6)
	
        Disclosure of Interests
	
        A-6

	
        (7)
	
        Charges of Depositary
	
        A-6

	
        (8)
	
        Available Information
	
        A-9

	
        (9)
	
        Execution
	
        A-10

	
        Signature of Depositary
	
        A-10

	
        Address of Depositary's Office
	
        A-10

	
        FORM OF REVERSE OF ADR
	
        A-11

	
        (10)
	
        Distributions on Deposited Securities
	
        A-11

	
        (11)
	
        Record Dates
	
        A-12

	
        (12)
	
        Voting of Deposited Securities
	
        A-12

	
        (13)
	
        Changes Affecting Deposited Securities
	
        A-14

	
        (14)
	
        Exoneration
	
        A-14

	
        (15)
	
        Resignation and Removal of Depositary; the Custodian
	
        A-17

	
        (16)
	
        Amendment
	
        A-18

	
        (17)
	
        Termination
	
        A-19

	
        (18)
	
        Appointment; Acknowledgements and Agreements
	
        A-19

	
        (19)
	
        Waiver
	
        A-20

	
        (20)
	
        Jurisdiction
	
        A-21

​

​

-
ii -

​

SECOND
AMENDED AND RESTATED DEPOSIT AGREEMENT dated as of June 10,
2020 (the "Deposit Agreement") among
BAOZUN INC. and its successors (the "Company"),
JPMORGAN CHASE BANK, N.A., as depositary hereunder (the "Depositary"),
and all Holders (defined below) and Beneficial Owners (defined below) from time to time of American Depositary Receipts issued
hereunder ("ADRs") evidencing
American Depositary Shares ("ADSs") representing deposited Shares (defined below). The Company hereby appoints the Depositary as depositary for the Deposited Securities (defined below) and hereby authorizes and directs the Depositary to act in accordance with the terms set forth in this Deposit Agreement. All capitalized terms used herein have the meanings ascribed to them in Section 1 or elsewhere in this Deposit
Agreement.

​

W I
T N E S S E T H

​

WHEREAS, the Company and the Depositary entered into an Amended and Restated Deposit Agreement dated as of April 4, 2019 (the "Prior
Deposit Agreement") for the purposes set forth therein, for the creation of American depositary shares representing the Shares so deposited and for the execution and delivery of American depositary receipts ("Prior Receipts") evidencing the American depositary shares;

​

WHEREAS,
pursuant to the terms of the Prior Deposit Agreement, the Company and the Depositary wish to amend and restate the Prior Deposit Agreement
and the Prior Receipts;

​

NOW
THEREFORE, in consideration of the premises, subject to Section 24 hereof, the parties hereto hereby amend and restate the Prior Deposit
Agreement and the Prior Receipts in their entirety as follows:

​

1. Certain Definitions.

​

(a)"ADR
Register" is defined in paragraph (3) of the form of ADR (Transfers,
Split-Ups and Combinations of ADRs).

​

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

​

​

1

​

​

(c)Subject
to paragraph (13) of the form of ADR, (Changes Affecting Deposited Securities)
each "ADS" evidenced by an ADR represents the right to receive, and to exercise the beneficial ownership interests in, the number of Shares specified in the form of ADR attached hereto as Exhibit A (as amended from time to time) that are on deposit with the Depositary and/or the Custodian and a pro rata share in any other Deposited Securities, subject, in each case, to the terms of this Deposit Agreement and the ADSs. The ADS(s)-to-Share(s) ratio is subject to amendment as provided in the form of ADR (which may give rise to fees contemplated in paragraph (7) thereof (Charges of Depositary)).

​

(d)"Beneficial
Owner" means as to any ADS, any person or entity having a beneficial ownership interest in such ADS. A Beneficial Owner need not be the Holder of the ADR evidencing such ADS. If a Beneficial Owner of ADSs is not a Holder, it must rely on the Holder of the ADR(s) evidencing such ADSs in order to assert any rights or receive any benefits under this Deposit Agreement. The arrangements between a Beneficial Owner of ADSs and the Holder of the corresponding ADRs may affect the Beneficial Owner’s ability to exercise any rights it may have.

​

(e)"Custodian"
means the agent or agents of the Depositary (singly or collectively, as the context requires) and any additional or substitute Custodian
appointed pursuant to Section 9.

​

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

​

(g)"Delivery
Order" is defined in Section 3.

​

(h)"Deposited
Securities" as of any time means all Shares at such time deposited under this Deposit Agreement
and any and all other Shares, securities, property and cash at such time held by the Depositary or the Custodian in respect or in lieu
of such deposited Shares and other Shares, securities, property and cash. Deposited Securities are not intended to, and shall not, constitute
proprietary assets of the Depositary, the Custodian or their nominees. Beneficial ownership in Deposited Securities is intended to be,
and shall at all times during the term of the Deposit Agreement continue to be, vested in the Beneficial Owners of the ADSs representing
such Deposited Securities.

​

(i)"Direct
Registration System" means the system for the uncertificated registration of ownership of securities
established by The Depository Trust Company

​

2

​

​

("DTC")
and utilized by the Depositary pursuant to which the Depositary may record the ownership of ADRs without the issuance of a certificate,
which ownership shall be evidenced by periodic statements issued by the Depositary to the Holders entitled thereto. For purposes hereof,
the Direct Registration System shall include access to the Profile Modification System maintained by DTC which provides for automated
transfer of ownership between DTC and the Depositary.

​

(j)"Holder"
means the person or persons in whose name an ADR is registered on the ADR Register. For all purposes under the Deposit Agreement and the
ADRs, a Holder shall be deemed to have all requisite authority to act on behalf of any and all Beneficial Owners of the ADSs evidenced
by the ADR(s) registered in such Holder's name.

​

(k)"Rule
144" shall mean Rule 144 under the Securities Act of 1933, as such rule may be amended from time
to time.

​

(l)"Securities
Act of 1933" means the United States Securities Act of 1933, as from time to time amended.

​

(m)"Securities
Exchange Act of 1934" means the United States Securities Exchange Act of 1934, as from time to
time amended.

​

(n)"Shares"
mean the Class A ordinary shares of the Company, and shall include the rights to receive Shares specified in paragraph (1) of the form
of ADR (Issuance of ADSs).

​

(o)"Transfer
Office" is defined in paragraph (3) of the form of ADR (Transfers,
Split-Ups and Combinations of ADRs).

​

(p)"Withdrawal
Order" is defined in Section 6.

​

2. Form of ADRs.

​

(a)Direct
Registration ADRs. Notwithstanding anything in this Deposit Agreement or in the form of ADR to the contrary,
ADSs shall be evidenced by Direct Registration ADRs, unless certificated ADRs are specifically requested by the Holder.

​

(b)Certificated
ADRs. ADRs in certificated form shall be printed or otherwise reproduced at the discretion of the Depositary in accordance with its customary practices in its American depositary receipt business, or at the request of the Company typewritten and photocopied on plain or safety paper, and shall be substantially in the form set forth in the form of ADR, with such changes as may be required by the Depositary or the Company to comply with their obligations hereunder, any applicable law, regulation or usage or to indicate any special limitations or restrictions to which any particular ADRs are subject. ADRs may be issued in denominations of any number of ADSs. ADRs in certificated form shall be executed by the Depositary by the manual

​

3

​

​

or facsimile signature of a duly authorized officer of the Depositary. ADRs in certificated form bearing the facsimile signature of anyone who was at the time of execution a duly authorized officer of the Depositary shall bind the Depositary, notwithstanding that such officer
has ceased to hold such office prior to the delivery of such ADRs.

​

(c)Binding
Effect. Holders of ADRs, and the Beneficial Owners of the ADSs evidenced by such ADRs, shall each be bound by the terms and conditions of this Deposit Agreement and of the form of ADR, regardless of whether such ADRs are Direct Registration ADRs or certificated ADRs.

​

3. Deposit of Shares.

​

(a)Requirements.
In connection with the deposit of Shares hereunder, the Depositary or the Custodian may require the
following in a form satisfactory to it:

​

(i)a
written order directing the Depositary to issue to, or upon the written order of, the person or persons designated in such order a Direct
Registration ADR or ADRs evidencing the number of ADSs representing such deposited Shares (a "Delivery
Order");

​

(ii)Share
certificates, and a certified share extract, reflecting the registration of the Shares in the name of JPMorgan Chase Bank, N.A., as depositary
for the benefit of holders of ADRs or in such other name as the Depositary shall direct; and

​

(iii)
instruments assigning to the Depositary, the Custodian or a nominee of either any distribution
on or in respect of such deposited Shares or indemnity therefor; and

​

(b)Holding of Deposited Securities. Deposited Securities shall be held by the Custodian for the account and to
the order of the Depositary for the benefit of Holders of ADRs (to the extent not prohibited by law) at such place or places and in such
manner as the Depositary shall determine. Notwithstanding anything else contained herein, in the form of ADR and/or any outstanding ADSs,
the Depositary, the Custodian and their respective nominees are intended to be, and shall at all times during the term of the Deposit
Agreement be, the record holder(s) only of the Deposited Securities represented by the ADSs for the benefit of the Holders. The Depositary,
on its own behalf and on behalf of the Custodian and their respective nominees, disclaims any beneficial ownership interest in the Deposited
Securities held on behalf of the Holders.

​

(c)Delivery
of Deposited Securities. Deposited Securities may be delivered by the Custodian to any person only under
the circumstances expressly contemplated in this Deposit Agreement. To the extent that the provisions of or governing the Shares make
delivery of certificates therefor impracticable, Shares may be deposited

​

4

​

​

hereunder by such delivery
thereof as the Depositary or the Custodian may reasonably accept, including, without limitation, by causing them to be credited to an
account maintained by the Custodian for such purpose with the Company or an accredited intermediary, such as a bank, acting as a registrar
for the Shares, together with delivery of the documents, payments and Delivery Order referred to herein to the Custodian or the Depositary.

​

4. Issue of ADRs. After any such deposit of Shares, the Custodian shall notify the Depositary of such deposit and of the information contained in any related Delivery Order by letter, first class airmail postage prepaid, or, at the request, risk and expense of the person making the deposit, by SWIFT, cable, telex or facsimile transmission. After receiving such notice from the Custodian, the Depositary, subject to this Deposit Agreement, shall properly issue at the Transfer Office, to or upon the order of any person named in such notice, an ADR or ADRs registered as requested and evidencing the aggregate ADSs to which such person is entitled.

​

5. Distributions on Deposited Securities. To the extent that the Depositary determines in its discretion that any distribution pursuant to paragraph (10) of the form of ADR (Distributions on Deposited Securities) is not practicable with respect to any Holder, the Depositary may make such distribution as it so deems practicable, including the distribution of foreign currency, securities or property (or appropriate documents evidencing the right to receive foreign currency, securities or property) or the retention thereof as Deposited Securities with respect to such Holder's ADRs (without liability for interest thereon or the investment thereof).

​

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

​

5

​

​

Company shall not unreasonably withhold the provision of such instructions, input, consent or notice or the taking of any such other action. If the Company’s share registrar and/or transfer agent refuses to process any Share delivery instructions, the Company will provide all reasonable cooperation to the Depositary in its efforts to cause such instructions to be processed. The obligations of the Company set forth in this Section 6 shall survive the termination of this Deposit Agreement.

​

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

​

8. Cancellation and Destruction of ADRs; Maintenance of Records. All ADRs surrendered to the Depositary shall be cancelled by the Depositary. The Depositary is authorized to destroy ADRs in certificated form so cancelled in accordance with its customary practices. The Depositary, however, shall maintain or cause its agents to maintain records of all ADRs surrendered and Deposited Securities withdrawn under Section 6 hereof and paragraph (2) of the form of ADR, substitute ADRs delivered under Section 7 hereof, and canceled or destroyed ADRs under this Section 8, in keeping with the procedures ordinarily followed by stock transfer agents located in the United States or as required by the laws or regulations governing the Depositary.

​

9.
The Custodian.

​

(a)Rights of the Depositary. Any Custodian in acting hereunder shall be subject to the directions of the Depositary and shall be responsible solely to it. The Depositary reserves the right to add, replace or remove a Custodian. The Depositary will give prompt notice of any such action, which will be advance notice if practicable. The Depositary may discharge any Custodian at any time upon notice to the Custodian being discharged.

​

(b)Rights
of the Custodian. Any Custodian may resign from its duties hereunder by providing at least 30 days' prior written notice to the Depositary. Any Custodian ceasing to act hereunder as Custodian shall deliver, upon the instruction of the Depositary, all Deposited Securities held by it to a Custodian continuing to act. Notwithstanding anything to the contrary contained in this Deposit Agreement (including the ADRs) and, subject to the further limitations set forth in subparagraph (o) of paragraph (14) of the form of ADR (Exoneration), the Depositary shall not be responsible for, and shall incur no liability in connection with or arising from, any act or omission to act on the part of the Custodian except to the extent that any Holder has incurred liability directly as a result of the Custodian having (i) committed fraud or willful misconduct in the provision of custodial services to the Depositary or (ii) failed to use reasonable care in the provision of custodial services to the Depositary as

​

6

​

​

determined in accordance
with the standards prevailing in the jurisdiction in which the Custodian is located.

​

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

​

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

​

12. Resignation and Removal of the Depositary; Appointment of Successor Depositary.

​

(a)Resignation
of the Depositary. The Depositary may at any time resign as Depositary hereunder by written notice of
its election to do so delivered to the Company, such resignation to take effect upon the appointment of a successor depositary and its
acceptance of such appointment as hereinafter provided.

​

(b)Removal
of the Depositary. The Depositary may at any time be removed by the Company by providing no less than
60 days' prior written notice of such removal to the Depositary, such removal to take effect the later of (i) the 60th
day after such notice of removal is first provided and (ii) the appointment of a successor depositary
and its acceptance of such appointment as hereinafter provided. Notwithstanding the foregoing, if upon the resignation or removal of the
Depositary a successor depositary is not appointed within the applicable 60-day period as specified in paragraph (17) of the form of ADR
(Termination), then the Depositary may elect to
terminate this Deposit Agreement and the ADR and the provisions of said paragraph (17) shall thereafter govern the Depositary's obligations
hereunder.

​

(c)Appointment
of Successor Depositary. In case at any time the Depositary acting hereunder shall resign or be removed, the Company shall use its best efforts to appoint a successor depositary, which shall be a bank or trust company having an office in the Borough of Manhattan, The City of New York. Every successor depositary shall execute and deliver to its predecessor and to the Company an instrument in writing accepting its appointment hereunder, and thereupon such successor depositary, without any further act or deed, shall become fully vested with all the rights, powers, duties and obligations of its predecessor. The predecessor depositary, only upon payment of all sums due to it and on the written request of the Company, shall (i) execute and deliver an instrument transferring to such successor all rights and powers

​

7

​

​

of such predecessor hereunder (other than its rights to indemnification and fees owing, each of which shall survive any such removal and/or resignation), (ii) duly assign, transfer and deliver all right, title and interest to the Deposited Securities to such successor, and (iii) deliver to such successor a list of the Holders of all outstanding ADRs. Any such successor depositary shall promptly mail notice of its appointment to such Holders. Any bank or trust company into or with which the Depositary may be merged or consolidated, or to which the Depositary shall transfer substantially all its American depositary receipt business, shall be the successor of the Depositary without the execution or filing of any document or any further act.

​

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

​

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

​

15. Indemnification.

​

(a)Indemnification
by the Company. The Company shall indemnify, defend

​

8

​

​

and save harmless each of the Depositary, the Custodian and their respective directors, officers, employees, agents and affiliates against any loss, liability or expense (including reasonable fees and expenses of counsel) which may arise out of acts performed or omitted, in connection with the provisions of this Deposit Agreement and of the ADRs, as the same may be amended, modified or supplemented from time to time in accordance herewith (i) by either the Depositary or a Custodian or their respective directors, officers, employees, agents and affiliates, except for any liability or expense directly arising out of the negligence, or willful misconduct of the Depositary or its directors, officers or affiliates acting in their capacities as such hereunder, or (ii) by the Company or any of its directors, officers, employees, agents and affiliates.

​

The
indemnities set forth in the preceding paragraph shall also apply to any liability or expense which may arise out of any misstatement
or alleged misstatement or omission or alleged omission in any registration statement, proxy statement, prospectus (or placement memorandum),
or preliminary prospectus (or preliminary placement memorandum) relating to the offer, issuance, withdrawal or sale of ADSs or the deposit
of Shares in connection therewith, except to the extent any such liability or expense arises out of (i) information relating to the Depositary
or its agents (other than the Company), as applicable, furnished in writing by the Depositary expressly for use in any of the foregoing
documents and not changed or altered by the Company or any other person (other than the Depositary) or (ii) if such information is provided,
the failure to state a material fact therein necessary to make the information provided, in light of the circumstance under which provided,
not misleading.

​

(b)
Indemnification by the Depositary. Subject
to the limitations provided for in Section 15(c) below, the Depositary shall indemnify, defend and save harmless the Company against any
direct loss, liability or expense (including reasonable fees and expenses of counsel) incurred by the Company in respect of this Deposit
Agreement to the extent such loss, liability or expense is due to the negligence or willful misconduct of the Depositary.

​

(c)
Damages or Lost Profits. Notwithstanding any other provision of this Deposit Agreement or the ADRs to the contrary, neither the Company nor the Depositary, nor any of their agents shall be liable to the other for any indirect, special, punitive or consequential damages (excluding reasonable fees and expenses of counsel) or lost profits (collectively "Special Damages") of any form incurred by any of them or any other person or entity, whether or not foreseeable and regardless of the type of action in
which such a claim may be brought; provided, however, that to the extent Special Damages arise from or out of a claim brought by a third
party, Holder(s) or beneficial owners of interests in ADSs against the Depositary or any of its agents acting under the Deposit Agreement,
the Depositary and its agents shall be entitled to full indemnification from the Company for all such Special Damages, unless such Special
Damages are found to have been a direct result of the gross negligence or willful misconduct of the Depositary.

​

​

9

​

​

(d)Survival.
The obligations set forth in this Section 15 shall survive the termination of this Deposit Agreement
and the succession or substitution of any indemnified person.

​

16. Notices.

​

(a)Notice
to Holders. Notice to any Holder shall be deemed given when first mailed, first class postage prepaid, to the address of such Holder on the ADR Register or received by such Holder. Failure to notify a Holder or any defect in the notification to a Holder shall not affect the sufficiency of notification to other Holders or to the Beneficial Owners of ADSs evidenced by ADRs held by such other Holders. Except for such notices to be delivered to the Company under this Deposit Agreement and the ADRs, the Depositary's only notification obligations under this Deposit Agreement and the ADRs shall be to Holders. Notice to a Holder shall be deemed, for all purposes of the Deposit Agreement and the ADRs, to constitute notice to any and all Beneficial Owners of the ADSs evidenced by such Holder’s ADRs.

​

(b)
Notice to the Depositary or the Company.
Notice to the Depositary or the Company shall be deemed given when first received by it at the address or facsimile transmission number
set forth in (i) or (ii), respectively, or at such other address or facsimile transmission number as either may specify to the other by
written notice:

​

		
        (i)
	
        JPMorgan
        Chase Bank, N.A.

383 Madison
Avenue, Floor 11

New York,
New York, 10179

Attention:
Depositary Receipts Group

Fax: (302)
220-4591

​

		
        (ii)
        
	
        Baozun
        Inc.

Building
B, No. 1268 Wanrong Road

Shanghai
200436

The People’s
Republic of China

Attention:
CFO office

Fax: 86-21-80265904

​

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

​

18. No Third-Party Beneficiaries; Holders and Beneficial Owners as Parties; Binding Effect. This Deposit Agreement is for the exclusive benefit of the Company, the Depositary, the Holders, and each and any of their respective successors hereunder, and, except to the extent specifically set forth in Section 15 of this Deposit Agreement,

​

10

​

​

shall not give any legal or equitable right, remedy or claim whatsoever to any other person. The Holders and Beneficial Owners from time to time shall be parties to this Deposit Agreement and shall be bound by all of the provisions hereof. A Beneficial Owner shall only be able to exercise any right or receive any benefit hereunder solely through the Holder of the ADR(s) evidencing the ADSs owned by such Beneficial Owner.

​

19. Severability. If any provision of this Deposit Agreement or the ADRs is, or becomes, invalid, illegal or unenforceable in any respect, the remaining provisions contained herein and therein shall in no way be affected thereby.

​

20. Governing Law; Consent to Jurisdiction.

​

(a)The
Deposit Agreement, the ADSs and the ADRs shall be governed by and construed in accordance with the internal laws of the State of New York
without giving effect to the application of the conflict of law principles thereof.

​

(b)By the Company. The Company irrevocably agrees that any legal suit, action or proceeding against or involving the Company brought by the Depositary or any Holder or Beneficial Owner, arising out of or based upon this Deposit Agreement, the ADSs, the ADRs or the transactions contemplated herein, therein, hereby or thereby, may be instituted in any state or federal court in New York, New York, and irrevocably waives any objection which it may now or hereafter have to the laying of venue of any such proceeding, and irrevocably submits to the non-exclusive jurisdiction of such courts in any such suit, action or proceeding. The Company also irrevocably agrees that any legal suit, action or proceeding against or involving the Depositary brought by the Company, arising out of or based upon this Deposit Agreement, the ADSs, the ADRs or the transactions contemplated herein, therein, hereby or thereby, may only be instituted in a state or federal court in New York, New York. Notwithstanding the foregoing, subject to the federal securities law carve-out set forth in Section 20(d) below, the Depositary may refer any such suit, action or proceeding to arbitration in accordance with the provisions of the Deposit Agreement and, upon such referral, any such suit, action or proceeding instituted by the Company shall be finally decided in such arbitration rather than in such court.

​

(c)By
Holders and Beneficial Owners. By holding an ADS or an interest therein, Holders and Beneficial Owners
each irrevocably agree that, subject to the Depositary's rights under Section 20 (d) below, any legal suit, action or proceeding against
or involving the Company or the Depositary, arising out of or based upon this Deposit Agreement, the ADSs, the ADRs or the transactions
contemplated herein, therein or hereby, may only be instituted in a state or federal court in New York, New York, and by holding an ADS
or an interest therein each irrevocably waives any objection which it may now or hereafter have to the laying of venue of any such proceeding,
and irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding.

​

​

11

​

​

(d)
Optional Arbitration. Notwithstanding anything in this Deposit Agreement to the contrary, each of the parties hereto (i.e. the Company, the Depositary and all Holders from time to time of ADRs issued hereunder (and Beneficial Owners) agrees that: (i) the Depositary may, in its sole discretion, elect to institute any dispute, suit, action, controversy, claim or proceeding directly or indirectly based on, arising out of or relating to this Deposit Agreement, the ADSs or the ADRs or the transactions contemplated hereby or thereby, including without limitation any question regarding its or their existence, validity, interpretation, performance or termination (a "Dispute") against any other party or parties hereto (including, without limitation, Disputes, suits, actions or proceedings brought against Holders and Beneficial Owners), by having the Dispute referred to and finally resolved by an arbitration conducted under the terms set out below, and (ii) the Depositary may in its sole discretion require, by written notice to the relevant party or parties, that any Dispute, suit, action, controversy, claim or proceeding brought by any party or parties hereto (including, without limitation, Disputes, suits, actions or proceedings brought by Holders and Beneficial Owners) against the Depositary shall be referred to and finally settled by an arbitration conducted under the terms set out below; provided however, notwithstanding the Depositary’s written notice under this (ii), to the extent there are specific federal securities law violation aspects to any Disputes against the Company and/or the Depositary brought by any Holder or Beneficial Owner, the federal securities law violation aspects of such Disputes brought by a Holder and/or Beneficial Owner against the Company and/or the Depositary may, at the option of such Holder and/or Beneficial Owner, remain in state or federal court in New York, New York and all other aspects, claims, Disputes, legal suits, actions and/or proceedings brought by such Holder and/or Beneficial Owner against the Company and/or the Depositary, including those brought along with, or in addition to, federal securities law violation claims, would be referred to arbitration in accordance herewith. Any such arbitration shall at the Depositary’s election be conducted either in New York, New York in accordance with the Commercial Arbitration Rules of the American Arbitration Association or in Hong Kong following the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL) with the Hong Kong International Arbitration Centre serving as the appointing authority, and the language of any such arbitration shall be English. A notice of arbitration may be mailed to the Company at its address last specified for notices under this Deposit Agreement, and, if applicable, to any Holders at their addresses on the ADR Register, which notice to any such Holder, for the avoidance of doubt, shall be deemed, for all purposes of the Deposit Agreement and the ADRs, including, without limitation, the arbitration provisions contained in this clause (d), constitute notice to any and all Beneficial Owners of the ADSs evidenced by such Holder’s ADRs. In any case where the Depositary exercises its right to arbitrate hereunder, arbitration of the Dispute shall be mandatory and any pending litigation arising out of or related to such Dispute shall be stayed. Judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. The number of arbitrators shall be three, each of whom shall be disinterested in the Dispute or controversy, shall have no connection with any party thereto, and shall be an attorney experienced in international securities transactions. Each of the Company and the Depositary shall

​

12

​

​

appoint one arbitrator
and the two arbitrators shall select a third arbitrator who shall serve as chairperson of the tribunal. If a Dispute shall involve more
than two parties, the parties shall attempt to align themselves in two sides (i.e., claimant and respondent), each of which shall appoint
one arbitrator as if there were only two parties to such Dispute. If either or both parties fail to select an arbitrator, or if such alignment
(in the event there are more than two parties) shall not have occurred, within thirty (30) calendar days after the Depositary serves the
arbitration demand or the two arbitrators fail to select a third arbitrator within thirty (30) calendar days of the selection of the second
arbitrator, the American Arbitration Association in the case of an arbitration in New York, or the Hong Kong International Arbitration
Centre in the case of an arbitration in Hong Kong, shall appoint the remaining arbitrator or arbitrators in accordance with its rules.
The parties and the American Arbitration Association and/or the Hong Kong International Arbitration Centre, as the case may be, may appoint
the arbitrators from among the nationals of any country, whether or not the appointing party or any other party to the arbitration is
a national of that country. The arbitrators shall have no authority to award damages against any party not measured by the prevailing
party’s actual damages and
shall have no authority to award any consequential, special or punitive damages against any party and may not, in any event, make any
ruling, finding or award that does not conform to the terms and conditions of this Deposit Agreement. In all cases, the fees of the arbitrators
and other costs incurred by the parties in connection with such arbitration shall be paid by the party (or parties) that is (or are) unsuccessful
in such arbitration. No party hereto shall be entitled to join or consolidate Disputes by or against others in any arbitration, or to
include in any arbitration any Dispute as a representative or member of a class, or act in any arbitration in the interest of the general
public or in a private attorney general capacity.

​

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

​

21.
Agent for Service.

​

(a)Appointment.
The Company has appointed Cogency Global Inc., located at 122 East 42nd Street, 18th Floor, New York, NY 10168, as its authorized agent
(the "Authorized Agent") upon which process
may be served in any such suit, action or proceeding arising out of or based on this Deposit Agreement, the ADSs, the ADRs or the transactions
contemplated herein, therein or hereby which may be instituted in any state or federal court in New York, New York by the Depositary or
any Holder, and waives any other requirements of or objections to personal jurisdiction with respect

​

13

​

​

thereto. Subject to the
Company’s rights to replace
the Authorized Agent with another entity in the manner required were the Authorized Agent to have resigned, such appointment shall be
irrevocable.

​

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

​

(c)Waiver
of Personal Service of Process. In the event the Company fails to continue such designation and appointment
in full force and effect, the Company hereby waives personal service of process, notice and/or papers upon it and consents that any such
service of process may be made by certified or registered mail, return receipt requested, directed to the Company at its address last
specified for notices hereunder, and service so made shall be deemed completed five (5) days after the same shall have been so mailed.

​

22. Waiver of Immunities. To the
extent that the Company or any of its properties, assets or revenues may have or may hereafter be entitled to, or have attributed to it,
any right of immunity, on the grounds of sovereignty or otherwise, from any legal action, suit or proceeding (including any arbitration),
from the giving of any relief in any respect thereof, from setoff or counterclaim, from the jurisdiction of any court, from service of
process, from attachment upon or prior to judgment, from attachment in aid of execution or judgment, or from execution of judgment, or
other legal process or proceeding for the giving of any relief or for the enforcement of any judgment or arbitration award, in any jurisdiction
in which proceedings may at any time be commenced, with respect to its obligations, liabilities or other matters under or arising out
of or in connection with the Shares or Deposited Securities, the ADSs, the ADRs or this Deposit Agreement, the Company, to the fullest
extent permitted by law, hereby irrevocably and unconditionally waives, and agrees not to plead or claim, any

​

14

​

​

such immunity and consents
to such relief and enforcement.

​

23. Waiver of Jury Trial. EACH PARTY TO THIS DEPOSIT AGREEMENT (INCLUDING, FOR AVOIDANCE OF DOUBT, EACH HOLDER AND BENEFICIAL OWNER OF, AND/OR HOLDER OF INTERESTS IN, ADSS OR ADRS) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING AGAINST THE DEPOSITARY AND/OR THE COMPANY DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE ADSs OR THE ADRs, THE DEPOSIT AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF (WHETHER BASED ON CONTRACT, TORT, COMMON LAW OR ANY OTHER THEORY), INCLUDING, WITHOUT LIMITATION, ANY SUIT, ACTION OR PROCEEDING UNDER THE UNITED STATES FEDERAL SECURITIES LAWS. No provision of this Deposit Agreement or any ADR is intended to constitute a waiver or limitation of any rights which Holders or Beneficial Owners may have under the Securities Act of 1933 or the Securities Exchange Act of 1934, to the extent applicable.

​

24. Amendment and Restatement of Prior Deposit Agreement. The Deposit Agreement amends and restates the Prior Deposit Agreement in its entirety to consist exclusively of the Deposit Agreement, and each Prior Receipt is hereby deemed amended and restated to substantially conform to the form of ADR set forth in Exhibit A annexed hereto, except that, to the extent any portion of such amendment and restatement impose or increase any fees or charges different from those set forth herein (other than charges in connection with foreign exchange control regulations, and taxes and other governmental charges, delivery and other such expenses), or otherwise materially prejudice any substantial existing right of Holders of Prior Receipts or Beneficial Owners of ADSs evidenced by such Prior Receipts, such portion shall not become effective as to such Holders or Beneficial Owners with respect to such Prior Receipts until 30 days after such Holders shall have received notice thereof, such notice to be conclusively deemed given upon the mailing to such Holders of notice of such amendment and restatement which notice contains a provision whereby such Holders can receive a copy of the form of ADR.

​

​

15

​

​

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

​

	
        
        
        ​

	
        
        
        ​

	
        
        
        ​

	
        ​
	
        BAOZUN INC.

	
        ​
	
        ​

	
        ​
	
        ​

	
        ​
	
        By: 
	
        /s/ Vincent Wenbin Qiu

	
        ​
	
        Name:
	
        Vincent Wenbin Qiu

	
        ​
	
        Title: 
	
        Chief Executive Officer

	
        ​
	
        ​

	
        ​
	
        ​

	
        ​
	
        JPMORGAN CHASE BANK,
        N.A.

	
        ​
	
        ​

	
        ​
	
        ​

	
        ​
	
        By: 
	
        /s/ Lisa M. Hayes

	
        ​
	
        Name:
	
        Lisa M. Hayes

	
        ​
	
        Title: 
	
        Vice President

​

​

16

​

​

EXHIBIT
A

ANNEXED
TO AND INCORPORATED IN

DEPOSIT
AGREEMENT

​

[FORM
OF FACE OF ADR]

​

	
                  
	
        ​
	
        No. of ADSs:

	
        Number
	
        ​

	
        ​
	
        ​

	
        ​
	
        ​

	
        ​
	
        Each ADS represents

	
        ​
	
        three Shares

	
        ​
	
        ​

	
        ​
	
        CUSIP:

​

AMERICAN
DEPOSITARY RECEIPT

​

evidencing

​

AMERICAN
DEPOSITARY SHARES

​

representing

​

CLASS
A ORDINARY SHARES

​

of

​

BAOZUN
INC.

​

(Incorporated
under the laws of the Cayman Islands)

​

JPMORGAN
CHASE BANK, N.A., a national banking association organized under the laws of the United States of America, as depositary hereunder (the
 "Depositary"), hereby certifies that 
 is the registered owner (a "Holder")
of American depositary shares ("ADSs"),
each (subject to paragraph (13) (Changes Affecting Deposited Securities))
representing three class A ordinary shares (including the rights to receive Shares described in paragraph (1) (Issuance
of ADSs), "Shares"
and, together with any other securities, cash or property from time to time held by the Depositary in respect or in lieu of deposited
Shares, the "Deposited Securities"), of
Baozun Inc., a corporation organized under the laws of the Cayman Islands (the "Company"),
deposited under the Second Amended and Restated Deposit Agreement dated as of June 10 ,
2020 (as amended from time to time, the "Deposit Agreement")
among the Company, the Depositary and all Holders and Beneficial Owners from time to time of American depositary receipts issued thereunder
("ADRs"), each of
whom by accepting an ADR becomes a party thereto. The Deposit Agreement and this ADR (which includes the provisions set forth on the reverse
hereof) shall be governed by and

​

A-1

​

​

construed in accordance
with the internal laws of the State of New York without giving effect to the application of the conflict of law principles thereof. All
capitalized terms used herein, and not defined herein, shall have the meanings ascribed to such terms in the Deposit Agreement.

​

(1)
Issuance of ADSs.

​

(a) Issuance. This ADR is one of the ADRs issued under the Deposit Agreement. Subject to the other provisions hereof, the Depositary may so issue ADRs for delivery at the Transfer Office (as hereinafter defined) only against deposit of: (i) Shares in a form satisfactory to the Custodian; or (ii) rights to receive Shares from the Company or any registrar, transfer agent, clearing agent or other entity recording Share ownership or transactions.

​

(b)
Lending. In its capacity as
Depositary, the Depositary shall not lend Shares or ADSs.

​

(c)
Representations and Warranties of Depositors.
Every person depositing Shares under the Deposit Agreement represents and warrants that:

​

		
        (i)
	
        such
        Shares and the certificates therefor are duly authorized, validly issued and outstanding, fully paid, nonassessable and legally obtained
        by such person,

​

		
        (ii)
	
        all
        pre-emptive and comparable rights, if any, with respect to such Shares have been validly waived or exercised,

​

		
        (iii)
	
        the
        person making such deposit is duly authorized so to do,

​

		
        (iv)
	
        the
        Shares presented for deposit are free and clear of any lien, encumbrance, security interest, charge, mortgage or adverse claim and

​

		
        (v)
	
        such
        Shares (A) are not "restricted securities" as such term is defined in Rule 144 under the Securities Act of 1933 ("Restricted
        Securities") unless at the time of deposit the requirements of paragraphs (c), (e), (f) and (h)
        of Rule 144 shall not apply and such Shares may be freely transferred and may otherwise be offered and sold freely in the United States
        or (B) have been registered under the Securities Act of 1933. To the extent the person depositing Shares is an "affiliate" of
        the Company as such term is defined in Rule 144, the person also represents and warrants that upon the sale of the ADSs, all of the provisions
        of Rule 144 which enable the Shares to be freely sold (in the form of ADSs) will be fully complied with and, as a result thereof, all
        of the ADSs issued in respect of

​

A-2

​

​

such Shares
will not be on the sale thereof, Restricted Securities.

​

Such representations and warranties shall survive the deposit and withdrawal of Shares and the issuance and cancellation of ADSs in respect thereof and the transfer of such ADSs. If any of the representations or warranties are incorrect in any way, the Company and the Depositary may, at the cost of the breaching Holder and/or Beneficial Owner, and each of them, take any and all actions necessary to correct the consequences of such misrepresentation.

​

(d) The Depositary may refuse to accept for such deposit any Shares identified by the Company in order to facilitate compliance with the requirements of the laws, rules and regulations of the United States, including, but not limited to, the Securities Act of 1933 and the rules and regulations promulgated thereunder.

​

(2)
Withdrawal of Deposited Securities.
Subject to paragraphs (4) (Certain Limitations to Registration, Transfer etc.),
(5) (Liability for Taxes, Duties and Other Charges),
(14) (Exoneration) and (17) (Termination),
upon surrender of (a) a certificated ADR in a form satisfactory to the Depositary at the Transfer Office or (b) proper instructions and
documentation in the case of a Direct Registration ADR, the Holder hereof is entitled to delivery at, or to the extent in dematerialized
form from, the Custodian's office of the Deposited Securities at the time represented by the ADSs evidenced by this ADR. At the request,
risk and expense of the Holder hereof, the Depositary may deliver such Deposited Securities at such other place as may have been requested
by the Holder. Notwithstanding any other provision of the Deposit Agreement or this ADR, the withdrawal of Deposited Securities may be
restricted only for the reasons set forth in General Instruction I.A.(1) of Form F-6 (as such instructions may be amended from time to
time) under the Securities Act of 1933.

​

(3)
Transfers, Split-Ups and Combinations of ADRs.
The Depositary or its agent will keep, at a designated transfer office (the "Transfer
Office"), (i) a register (the "ADR Register")
for the registration, registration of transfer, combination and split-up of ADRs, and, in the case of Direct Registration ADRs, shall
include the Direct Registration System, which at all reasonable times will be open for inspection by Holders and the Company for the purpose
of communicating with Holders in the interest of the business of the Company or a matter relating to the Deposit Agreement and (ii) facilities
for the delivery and receipt of ADRs. The term ADR Register includes the Direct Registration System. Title to this ADR (and to the Deposited
Securities represented by the ADSs evidenced hereby), when properly endorsed (in the case of ADRs in certificated form) or upon delivery
to the Depositary of proper instruments of transfer, is transferable by delivery with the same effect as in the case of negotiable instruments
under the laws of the State of New York; provided
that the Depositary, notwithstanding any notice to the contrary, may treat the person in whose name this ADR is registered on the ADR
Register as the absolute owner hereof for all purposes and neither the Depositary nor the Company will have any obligation or be subject
to any liability under the Deposit Agreement or any ADR to any Beneficial Owner, unless such Beneficial Owner is the

​

A-3

​

​

Holder hereof. Subject
to paragraphs (4) and (5), this ADR is transferable on the ADR Register and may be split into other ADRs or combined with other ADRs into
one ADR, evidencing the aggregate number of ADSs surrendered for split-up or combination, by the Holder hereof or by duly authorized attorney
upon surrender of this ADR at the Transfer Office properly endorsed (in the case of ADRs in certificated form) or upon delivery to the
Depositary of proper instruments of transfer and duly stamped as may be required by applicable law; provided
that the Depositary may close the ADR Register (and/or any portion thereof) at any time or from time to time when deemed expedient by
it. Additionally, at the reasonable request of the Company, the Depositary close the issuance book portion of the ADR Register in order
to enable the Company to comply with applicable law; provided further, that the Depositary shall have no liability and shall be indemnified
by the Company in such event. At the request of a Holder, the Depositary shall, for the purpose of substituting a certificated ADR with
a Direct Registration ADR, or vice versa, execute and deliver a certificated ADR or a Direct Registration ADR, as the case may be, for
any authorized number of ADSs requested, evidencing the same aggregate number of ADSs as those evidenced by the certificated ADR or Direct
Registration ADR, as the case may be, substituted.

​

(4) Certain Limitations to Registration, Transfer etc. Prior to the issue, registration, registration of transfer, split-up or combination of any ADR, the delivery of any distribution in respect thereof, or, subject to the last sentence of paragraph (2) (Withdrawal of Deposited Securities), the withdrawal of any Deposited Securities, and from time to time in the case of clause (b)(ii) of this paragraph (4), the Company, the Depositary or the Custodian may require:

​

(a) payment with respect thereto of (i) any stock transfer or other tax or other governmental charge, (ii) any stock transfer or registration fees in effect for the registration of transfers of Shares or other Deposited Securities upon any applicable register and (iii) any applicable charges as provided in paragraph (7) (Charges of Depositary) of this ADR;

​

(b)
the production of proof satisfactory to it of (i) the identity of any signatory and genuineness of any signature and (ii) such other information,
including without limitation, information as to citizenship, residence, exchange control approval, beneficial or other ownership of, or
interest in, any securities, compliance with applicable law, regulations, provisions of or governing Deposited Securities and terms of
the Deposit Agreement and this ADR, as it may deem necessary or proper; and

​

(c) compliance with such regulations as the Depositary may establish consistent with the Deposit Agreement or as the Depositary reasonably believes are required in order to enable compliance with applicable laws, rules and regulations.

​

The
issuance of ADRs, the acceptance of deposits of Shares, the registration, registration of transfer, split-up or combination of ADRs or,
subject to the last sentence of paragraph (2) (Withdrawal of Deposited Securities),
the withdrawal of Deposited

​

A-4

​

​

Securities may be suspended,
generally or in particular instances, when the ADR Register or any register for Deposited Securities is closed or when any such action
is deemed advisable by the Depositary.

​

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

​

A-5

​

​

respective
officers, directors, employees, agents and affiliates against, and hold each of them harmless from, any claims by any governmental authority
with respect to taxes, additions to tax, penalties or interest arising out of any refund of taxes, reduced rate of withholding at source
or other tax benefit obtained. The obligations of Holders and Beneficial Owners under this paragraph (5) shall survive any transfer of
ADSs, any surrender of ADSs and withdrawal of Deposited Securities and any termination of the Deposit Agreement.

​

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

​

(7)
Charges of Depositary.

​

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

​

(b)
Additional charges by the Depositary.
The following additional charges shall also be incurred by the Holders, the Beneficial Owners, by any party

​

A-6

​

​

depositing or withdrawing
Shares or by any party surrendering ADSs and/or to whom ADSs are issued (including, without limitation, issuances pursuant to a stock
dividend or stock split declared by the Company or an exchange of stock regarding the ADSs or the Deposited Securities or a distribution
of ADSs pursuant to paragraph (10) (Distributions on Deposited Securities),
whichever is applicable:

​

		
        (i)
        
	
        a
        fee of U.S.$0.05 or less per ADS upon which any Cash distribution is made pursuant to the Deposit Agreement,

​

		
        (ii)
        
	
        a
        fee for the distribution or sale of securities pursuant to paragraph (10) hereof, such fee being in an amount equal to the fee for the
        execution and delivery of ADSs referred to above which would have been charged as a result of the deposit of such securities (for purposes
        of this paragraph (7) treating all such securities as if they were Shares) but which securities or the net cash proceeds from the sale
        thereof are instead distributed by the Depositary to Holders entitled thereto,

​

		
        (iii)
	
        an
        aggregate fee of U.S.$0.05 or less per ADS per calendar year (or portion thereof) for services performed by the Depositary in administering
        the ADRs (which fee may be charged on a periodic basis during each calendar year and shall be assessed against Holders as of the record
        date or record dates set by the Depositary during each calendar year and shall be payable at the sole discretion of the Depositary by
        billing such Holders or by deducting such charge from one or more cash dividends or other cash distributions), and

​

		
        (iv)
	
        a
        fee for the reimbursement of such fees, charges and expenses as are incurred by the Depositary and/or any of its agents (including, without
        limitation, the Custodian and expenses incurred on behalf of Holders in connection with compliance with foreign exchange control regulations
        or any law or regulation relating to foreign investment) in connection with the servicing of the Shares or other Deposited Securities,
        the sale of securities (including, without limitation, Deposited Securities), the delivery of Deposited Securities or otherwise in connection
        with the Depositary's or its Custodian's compliance with applicable law, rule or regulation (which fees and charges shall be assessed
        on a proportionate basis against Holders as of the record date or dates set by the Depositary and shall be payable at the sole discretion
        of the Depositary by billing such Holders or by deducting such charge from one or more cash dividends or other cash distributions).

​

(c) Other Obligations and Charges. The Company will pay all other

​

A-7

​

​

charges and expenses
of the Depositary and any agent of the Depositary (except the Custodian) pursuant to agreements from time to time between the Company
and the Depositary, except:

​

		
        (i)
	
        stock
        transfer or other taxes and other governmental charges (which are payable by Holders or persons depositing Shares);

​

		
        (ii)
	
        SWIFT,
        cable, telex and facsimile transmission and delivery charges incurred at the request of persons depositing, or Holders delivering Shares,
        ADRs or Deposited Securities (which are payable by such persons or Holders); and

​

		
        (iii)
	
        transfer
        or registration fees for the registration or transfer of Deposited Securities on any applicable register in connection with the deposit
        or withdrawal of Deposited Securities (which are payable by persons depositing Shares or Holders withdrawing Deposited Securities).

​

(d)
Foreign Exchange Related Matters. To facilitate
the administration of various depositary receipt transactions, including disbursement of dividends
or other cash distributions and other corporate actions, the Depositary may engage the foreign exchange desk within JPMorgan Chase Bank,
N.A. (the “Bank”)
and/or its affiliates in order to enter into spot foreign exchange transactions to convert foreign currency into U.S. dollars (“FX
Transactions”). For certain currencies,
FX Transactions are entered into with the Bank or an affiliate, as the case may be, acting in a principal capacity. For other currencies,
FX Transactions are routed directly to and managed by an unaffiliated local custodian (or other third party local liquidity provider),
and neither the Bank nor any of its affiliates is a party to such FX Transactions.

​

The
foreign exchange rate applied to an FX Transaction will be either (a) a published benchmark rate, or (b) a rate determined by a third
party local liquidity provider, in each case plus or minus a spread, as applicable. The Depositary will disclose which foreign exchange
rate and spread, if any, apply to such currency on the “Disclosure”
page (or successor page) of www.adr.com
(as updated by the Depositary from time to time, “ADR.com”).
Such applicable foreign exchange rate and spread may (and neither the Depositary, the Bank nor any of their affiliates is under any obligation
to ensure that such rate does not) differ from rates and spreads at which comparable transactions are entered into with other customers
or the range of foreign exchange rates and spreads at which the Bank or any of its affiliates enters into foreign exchange transactions
in the relevant currency pair on the date of the FX Transaction. Additionally, the timing of execution of an FX Transaction varies according
to local market dynamics, which may include regulatory requirements, market hours and liquidity in the foreign exchange market or other
factors. Furthermore, the Bank and its affiliates may manage the associated risks of their position in the market in a manner they deem
appropriate without regard to the impact of such activities on the Company,

​

A-8

​

​

the Depositary, Holders
or Beneficial Owners. The spread applied does not reflect any gains or losses that may be earned or incurred by the Bank and its affiliates
as a result of risk management or other hedging related activity.

​

Notwithstanding
the foregoing, to the extent the Company provides U.S. dollars to the Depositary, neither the Bank nor any of its affiliates will execute
an FX Transaction as set forth herein. In such case, the Depositary will distribute the U.S. dollars received from the Company.

​

Further
details relating to the applicable foreign exchange rate, the applicable spread and the execution of FX Transactions will be provided
by the Depositary on ADR.com. The Company, Holders and Beneficial Owners each acknowledge and agree that the terms applicable to FX Transactions
disclosed from time to time on ADR.com will apply to any FX Transaction executed pursuant to the Deposit Agreement.

​

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

​

(f)
The right of the Depositary to charge and receive payment of fees, charges and expenses as provided above shall survive the termination
of the Deposit Agreement. As to any Depositary, upon the resignation or removal of such Depositary, such right shall extend for those
fees, charges and expenses incurred prior to the effectiveness of such resignation or removal.

​

(8) Available Information. The Deposit Agreement, the provisions of or governing Deposited Securities and any written communications from the Company, which are both received by the Custodian or its nominee as a holder of Deposited Securities and made generally available to the holders of Deposited Securities, are available for inspection by Holders at the offices of the Depositary and the Custodian, at the Transfer Office, on the U.S. Securities and Exchange Commission’s website, or upon request from the Depositary (which request may be refused by the Depositary at its discretion). The Depositary will distribute copies of such communications (or English translations or summaries thereof) to Holders when furnished by the Company. The Company is subject to the periodic reporting requirements of the Securities Exchange Act of 1934 and accordingly files certain reports with the United States Securities and Exchange Commission (the "Commission"). Such reports and other information may be inspected and copied through the Commission’s EDGAR system or at public reference facilities maintained by the Commission located at the date hereof at 100 F Street, NE, Washington, DC 20549.

​

​

A-9

​

​

(9) Execution. This ADR shall not be valid for any purpose unless executed by the Depositary by the manual or facsimile signature of a duly authorized officer of the Depositary.

​

	
        Dated:
	
        ​

	
        ​
	
        ​

	
        ​
	
        JPMORGAN CHASE BANK,
        N.A., as Depositary

	
        ​
	
        By
	
        ​

	
        ​
	
        Authorized Officer

​

The
Depositary's office is located at 383 Madison Avenue, Floor 11, New York, New York 10179.

​

​

A-10

​

​

[FORM
OF REVERSE OF ADR]

​

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

​

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

​

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

​

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

​

​

A-11

​

​

(d)
Other Distributions. (i) Securities
or property available to the Depositary resulting from any distribution on Deposited Securities other than Cash, Share Distributions and
Rights ("Other Distributions"), by any
means that the Depositary may deem equitable and practicable, or (ii) to the extent the Depositary deems distribution of such securities
or property not to be equitable and practicable, any U.S. dollars available to the Depositary from the net proceeds of sales of Other
Distributions as in the case of Cash.

​

The
Depositary reserves the right to utilize a division, branch or affiliate of JPMorgan Chase Bank, N.A. to direct, manage and/or execute
any public and/or private sale of securities hereunder. Such division, branch and/or affiliate may charge the Depositary a fee in connection
with such sales, which fee is considered an expense of the Depositary contemplated above and/or under paragraph (7) (Charges
of Depositary). Any U.S. dollars available will be distributed by checks drawn on a bank in the United
States for whole dollars and cents. Fractional cents will be withheld without liability and dealt with by the Depositary in accordance
with its then current practices. All purchases and sales of securities will be handled by the Depositary in accordance with its then current
policies, which are currently set forth in the "Depositary Receipt Sale and Purchase of Security" section of https://www.adr.com/Investors/FindOutAboutDRs,
the location and contents of which the Depositary shall be solely responsible for.

​

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

​

(12)
Voting of Deposited Securities.

​

(a)
Notice of any Meeting or Solicitation.
As soon as practicable after receipt of notice of any meeting at which the holders of Shares are entitled to vote, or of solicitation
of consents or proxies from holders of Shares or other Deposited Securities, the Depositary shall fix the ADS record date in accordance
with paragraph (11) above provided that if the Depositary receives a written request from the Company in a timely manner and at least
30 days prior to the date of such vote or meeting, the Depositary shall, at the Company's expense and provided no legal prohibitions
exist, distribute to Holders a notice (the “Voting
Notice”) stating (i) final information
particular to such vote and meeting and any solicitation materials, (ii) that each Holder

​

A-12

​

​

on
the record date set by the Depositary will, subject to any applicable provisions of the laws of the Cayman Islands, be entitled to instruct
the Depositary as to the exercise of the voting rights, if any, pertaining to the Deposited Securities represented by the ADSs evidenced
by such Holder's ADRs and (iii) the manner in which such instructions may be given, including instructions to give a discretionary
proxy to a person designated by the Company. Each Holder shall be solely responsible for the forwarding of Voting Notices to the Beneficial
Owners of ADSs registered in such Holder's name. There is no guarantee that Holders and Beneficial Owners generally or any Holder
or Beneficial Owner in particular will receive the notice described above with sufficient time to enable such Holder or Beneficial Owner
to return any voting instructions to the Depositary in a timely manner.

​

(b)
Voting of Deposited Securities. Following
actual receipt by the ADR department responsible for proxies and voting of Holders’
instructions (including, without limitation, instructions of any entity or entities acting on behalf of the nominee for DTC), the Depositary
shall, in the manner and on or before the time established by the Depositary for such purpose, endeavor to vote or cause to be voted the
Deposited Securities represented by the ADSs evidenced by such Holders’
ADRs in accordance with such instructions insofar as practicable and permitted under the provisions of or governing Deposited Securities.
The Depositary will not itself exercise any voting discretion in respect of any Deposited Securities.

​

(c)
Alternative Methods of Distributing Materials. Notwithstanding
anything contained in the Deposit Agreement or any ADR, the Depositary may, to the extent not prohibited by any law, rule or regulation
or the rules and/or requirements of the stock exchange on which the ADSs are listed, in lieu of distribution of the materials provided
to the Depositary in connection with any meeting of or solicitation of consents or proxies from holders of Deposited Securities, distribute
to the Holders a notice that provides Holders with or otherwise publicizes to Holders instructions on how to retrieve such materials or
receive such materials upon request (i.e.,
by reference to a website containing the materials for retrieval or a contact for requesting copies of the materials). Holders are strongly
encouraged to forward their voting instructions as soon as possible. Voting instructions will not be deemed received until such time as
the ADR department responsible for proxies and voting has received such instructions, notwithstanding that such instructions may have
been physically received by JPMorgan Chase Bank, N.A., as Depositary, prior to such time.

​

(d)
The Depositary has been advised by the Company that under the Cayman Islands law and the Memorandum and Articles of Association of the
Company, each as in effect as of the date of the Deposit Agreement, voting at any meeting of shareholders of the Company is by show of
hands unless a poll is (before or on the declaration of the results of the show of hands) demanded. In the event that voting on any resolution
or matter is conducted on a show of hands basis in accordance with the Memorandum and Articles of Association, the Depositary will refrain
from voting and the voting instructions received by the Depositary from Holders shall lapse. The Depositary

​

A-13

​

​

will not demand a poll
or join in demanding a poll, whether or not requested to do so by Holders of ADSs.

​

(13)
Changes Affecting Deposited Securities.

​

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

​

(b)
To the extent the Depositary does not so amend this ADR or make a distribution to Holders to reflect any of the foregoing, or the net
proceeds thereof, whatever cash, securities or property results from any of the foregoing shall constitute Deposited Securities and each
ADS evidenced by this ADR shall automatically represent its pro rata interest in the Deposited Securities as then constituted.

​

(c)
Promptly upon the occurrence of any of the aforementioned changes affecting Deposited Securities, the Company shall notify the Depositary
in writing of such occurrence and as soon as practicable after receipt of such notice from the Company, may instruct the Depositary to
give notice thereof, at the Company's expense, to Holders in accordance with the provisions hereof. Upon receipt of such instruction,
the Depositary shall give notice to the Holders in accordance with the terms thereof, as soon as reasonably practicable.

​

(14)
Exoneration.

​

(a)
The Depositary, the Company, and each of their respective directors, officers, employees, agents and affiliates and each of them shall:
(i) incur no liability to Holders or Beneficial Owners (A) if any present or future law, rule, regulation, fiat, order or decree of the
United States, the Cayman Islands, the People’s
Republic of China (including the Hong Kong Special Administrative Region, the People’s
Republic of China) or any other country or jurisdiction, or of any governmental or regulatory authority or any securities exchange or
market or automated quotation system, the provisions of or governing any Deposited Securities, any present or future provision of

​

A-14

​

​

the
Company's charter, any act of God, war, terrorism, nationalization, expropriation, currency restrictions, work stoppage, strike, civil
unrest, revolutions, rebellions, explosions, computer failure or circumstance beyond its direct and immediate control shall prevent or
delay, or shall cause any of them to be subject to any civil or criminal penalty in connection with, any act which the Deposit Agreement
or this ADR provides shall be done or performed by it or them (including, without limitation, voting pursuant to paragraph (12) hereof),
or (B) by reason of any non-performance or delay, caused as aforesaid, in the performance of any act or things which by the terms of the
Deposit Agreement it is provided shall or may be done or performed or any exercise or failure to exercise any discretion given it in the
Deposit Agreement or this ADR (including, without limitation, any failure to determine that any distribution or action may be lawful or
reasonably practicable); (ii) not incur or assume any liability to Holders or Beneficial Owners except to perform its obligations to the
extent they are specifically set forth in this ADR and the Deposit Agreement without gross negligence or willful misconduct and the Depositary
shall not be a fiduciary or have any fiduciary duty to Holders or Beneficial Owners; (iii) in the case of the Depositary and its agents,
be under no obligation to appear in, prosecute or defend any action, suit or other proceeding in respect of any Deposited Securities,
ADSs or this ADR; (iv) in the case of the Company and its agents hereunder be under no obligation to appear in, prosecute or defend any
action, suit or other proceeding in respect of any Deposited Securities, the ADSs or this ADR, which in its opinion may involve it in
expense or liability, unless indemnity satisfactory to it against all expense (including fees and disbursements of counsel) and liability
be furnished as often as may be required; and (v) not be liable to Holders or Beneficial Owners for any action or inaction by it in reliance
upon the advice of or information from legal counsel, accountants, any person presenting Shares for deposit, any Holder, any other person
believed by it to be competent to give such advice or information, or in the case of the Depositary only, the Company. The Depositary
shall not be liable for the acts or omissions made by, or the insolvency of, any share registrar, share transfer agent, securities depository,
clearing agency or settlement system.

​

(b)
The Depositary. The Depositary
shall not be responsible for, and shall incur no liability in connection with or arising from, the insolvency of any Custodian that is
not a branch or affiliate of JPMorgan Chase Bank, N.A. The Depositary shall not have any liability for the price received in connection
with any sale of securities, the timing thereof or any delay in action or omission to act nor shall it be responsible for any error or
delay in action, omission to act, default or negligence on the part of the party so retained in connection with any such sale or proposed
sale. Notwithstanding anything to the contrary contained in the Deposit Agreement (including the ADRs), subject to the further limitations
set forth in subparagraph (o) of this paragraph (14), the Depositary shall not be responsible for, and shall incur no liability in connection
with or arising from, any act or omission to act on the part of the Custodian except to the extent that any Holder has incurred liability
directly as a result of the Custodian having (i) committed fraud or willful misconduct in the provision of custodial services to the Depositary
or (ii) failed to use reasonable care in the provision of custodial services to the Depositary as determined in accordance with the standards
prevailing in the

​

A-15

​

​

jurisdiction in which
the Custodian is located.

​

(c)
The Depositary, its agents and the Company may rely and shall be protected in acting upon any written notice, request, direction, instruction
or document believed by them to be genuine and to have been signed, presented or given by the proper party or parties.

​

(d)
The Depositary shall be under no obligation to inform Holders or Beneficial Owners about the requirements of the laws, rules or regulations
or any changes therein or thereto of any country or jurisdiction or of any governmental or regulatory authority or any securities exchange
or market or automated quotation system.

​

(e)
The Depositary and its agents will not be responsible for any failure to carry out any instructions to vote any of the Deposited Securities,
for the manner in which any such vote is cast or for the effect of any such vote.

​

(f)
The Depositary may rely upon instructions from the Company or its counsel in respect of any approval or license required for any currency
conversion, transfer or distribution.

​

(g)
The Depositary and its agents may own and deal in any class of securities of the Company and its affiliates and in ADRs.

​

(h)
Notwithstanding anything to the contrary set forth in the Deposit Agreement or an ADR, the Depositary and its agents may fully respond
to any and all demands or requests for information maintained by or on its behalf in connection with the Deposit Agreement, any Holder
or Holders, any ADR or ADRs or otherwise related hereto or thereto to the extent such information is requested or required by or pursuant
to any lawful authority, including without limitation laws, rules, regulations, administrative or judicial process, banking, securities
or other regulators.

​

(i)
None of the Depositary, the Custodian or the Company shall be liable for the failure by any Holder or Beneficial Owner to obtain the benefits
of credits or refunds of non-U.S. tax paid against such Holder's or Beneficial Owner's income tax liability.

​

(j)
The Depositary is under no obligation to provide the Holders and Beneficial Owners, or any of them, with any information about the tax
status of the Company. The Depositary and the Company shall not incur any liability for any tax or tax consequences that may be incurred
by Holders and Beneficial Owners on account of their ownership or disposition of the ADRs or ADSs.

​

(k)
The Depositary shall not incur any liability for the content of any information submitted to it by or on behalf of the Company for distribution
to the

​

A-16

​

​

Holders or for any inaccuracy
of any translation thereof, for any investment risk associated with acquiring an interest in the Deposited Securities, for the validity
or worth of the Deposited Securities, for the credit-worthiness of any third party, for allowing any rights to lapse upon the terms of
the Deposit Agreement or for the failure or timeliness of any notice from the Company.

​

(l)
Notwithstanding anything herein or in the Deposit Agreement to the contrary, the Depositary and the Custodian(s) may use third party delivery
services and providers of information regarding matters such as pricing, proxy voting, corporate actions, class action litigation and
other services in connection herewith and the Deposit Agreement, and use local agents to provide services such as, but not limited to,
attendance at any meetings of security holders. Although the Depositary and the Custodian will use reasonable care (and cause their agents
to use reasonable care) in the selection and retention of such third party providers and local agents, they will not be responsible for
any errors or omissions made by them in providing the relevant information or services.

​

(m)
The Depositary shall not be liable for any acts or omissions made by a successor depositary whether in connection with a previous act
or omission of the Depositary or in connection with any matter arising wholly after the removal or resignation of the Depositary.

​

(n)
The Company has agreed to indemnify the Depositary and its agents under certain circumstances and the Depositary has agreed to indemnify
the Company under certain circumstances.

​

(o)
Neither the Depositary nor any of its agents shall be liable to Holders or Beneficial Owners for any indirect, special, punitive or consequential
damages (including, without limitation, legal fees and expenses) or lost profits, in each case of any form incurred by any person or entity
(including, without limitation, Holders and Beneficial Owners), whether or not foreseeable and regardless of the type of action in which
such a claim may be brought.

​

(p)
No provision of the Deposit Agreement or this ADR is intended to constitute a waiver or limitation of any rights which Holders or Beneficial
Owners may have under the Securities Act of 1933 or the Securities Exchange Act of 1934, to the extent applicable.

​

(15)
Resignation and Removal of Depositary; the Custodian.

​

(a)
Resignation. The Depositary
may resign as Depositary by written notice of its election so to do delivered to the Company, such resignation to take effect upon
the appointment of a successor depositary and its acceptance of such appointment as provided in the Deposit Agreement.

​

​

A-17

​

​

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

​

(c)
The Custodian. The Depositary
may appoint substitute or additional Custodians and the term "Custodian"
refers to each Custodian or all Custodians as the context requires.

​

(16)
Amendment. Subject to the last
sentence of paragraph (2) (Withdrawal of Deposited Securities),
the ADRs and the Deposit Agreement may be amended by the Company and the Depositary, provided
that any amendment that imposes or increases any fees or charges on a per ADS basis (other than stock transfer or other taxes and other
governmental charges, transfer or registration fees, SWIFT, cable, telex or facsimile transmission costs, delivery costs or other such
expenses), or that shall otherwise prejudice any substantial existing right of Holders or Beneficial Owners, shall become effective 30
days after notice of such amendment shall have been given to the Holders. Every Holder and Beneficial Owner at the time any amendment
to the Deposit Agreement so becomes effective shall be deemed, by continuing to hold such ADR, to consent and agree to such amendment
and to be bound by the Deposit Agreement as amended thereby. In no event shall any amendment impair the right of the Holder of any ADR
to surrender such ADR and receive the Deposited Securities represented thereby, except in order to comply with mandatory provisions of
applicable law. Any amendments or supplements which (i) are reasonably necessary (as agreed by the Company and the Depositary) in order
for (a) the ADSs to be registered on Form F-6 under the Securities Act of 1933 or (b) the ADSs or Shares to be traded solely in electronic
book-entry form and (ii) do not in either such case impose or increase any fees or charges to be borne by Holders, shall be deemed not
to prejudice any substantial rights of Holders or Beneficial Owners. Notwithstanding the foregoing, if any governmental body or regulatory
body should adopt new laws, rules or regulations which would require amendment or supplement of the Deposit Agreement or the form of ADR
to ensure compliance therewith, the Company and the Depositary may amend or supplement the Deposit Agreement and the ADR at any time in
accordance with such changed laws, rules or regulations. Such amendment or supplement to the Deposit Agreement in such circumstances may
become effective before a notice of such amendment or supplement is given to Holders or within any other period of time as required for
compliance. Notice of any amendment to the Deposit Agreement or form of ADRs shall not need to describe
in detail the specific amendments effectuated thereby, and failure to describe the specific amendments in any such notice shall not render
such notice invalid, provided, however, that, in each such case, the notice given to the Holders identifies a means for Holders and Beneficial
Owners to retrieve or receive the text of such amendment (i.e.,
upon retrieval from the U.S. Securities and Exchange Commission's, the Depositary's or the Company's website or upon request
from

​

A-18

​

​

the Depositary).

​

(17)
Termination. The Depositary
may, and shall at the written direction of the Company, terminate the Deposit Agreement and this ADR by mailing notice of such termination
to the Holders at least 30 days prior to the date fixed in such notice for such termination; provided, however, if the Depositary shall
have (i) resigned as Depositary hereunder, notice of such termination by the Depositary shall not be provided to Holders unless a successor
depositary shall not be operating hereunder within 60 days of the date of such resignation, or (ii) been removed as Depositary hereunder,
notice of such termination by the Depositary shall not be provided to Holders unless a successor depositary shall not be operating hereunder
on the 60th day after the Company's notice
of removal was first provided to the Depositary. Notwithstanding anything to the contrary herein, the Depositary may terminate the Deposit
Agreement without notice to the Company, but subject to giving 30 days’
notice to the Holders, under the following circumstances: (i) in the event of the Company’s
bankruptcy or insolvency, (ii) if the Company effects (or will effect) a redemption of all or substantially all of the Deposited Securities,
or a cash or share distribution representing a return of all or substantially all of the value of the Deposited Securities, or (iii) there
occurs a merger, consolidation, sale of assets or other transaction as a result of which securities or other property are delivered in
exchange for or in lieu of Deposited Securities.

​

After
the date so fixed for termination, (a) all Direct Registration ADRs shall cease to be eligible for the Direct Registration System and
shall be considered ADRs issued on the ADR Register and (b) the Depositary shall use its reasonable efforts to ensure that the ADSs cease
to be DTC eligible so that neither DTC nor any of its nominees shall thereafter be a Holder. At such time as the ADSs cease to be DTC
eligible and/or neither DTC nor any of its nominees is a Holder, the Depositary shall (a) instruct its Custodian to deliver all Deposited
Securities to the Company along with a general stock power that refers to the names set forth on the ADR Register and (b) provide the
Company with a copy of the ADR Register (which copy may be sent by email or by any means permitted under the notice provisions of the
Deposit Agreement). Upon receipt of such Deposited Securities and the ADR Register, the Company shall use its best efforts to issue to
each Holder a Share certificate representing the Shares represented by the ADSs reflected on the ADR Register in such Holder's name
and to deliver such Share certificate to the Holder at the address set forth on the ADR Register. After providing such instruction to
the Custodian and delivering a copy of the ADR Register to the Company, the Depositary and its agents will perform no further acts under
the Deposit Agreement and this ADR and shall cease to have any obligations under the Deposit Agreement and/or the ADRs. After the Company
receives the copy of the ADR Register and the Deposited Securities, the Company shall be discharged from all obligations under the Deposit
Agreement except (i) to distribute the Shares to the Holders entitled thereto and (ii) for its obligations to the Depositary and its agents.

​

(18)
Appointment; Acknowledgements and Agreements.
Each Holder and each

​

A-19

​

​

Beneficial Owner, upon
acceptance of any ADSs or ADRs (or any interest in any of them) issued in accordance with the terms and conditions of the Deposit Agreement
shall be deemed for all purposes to (a) be a party to and bound by the terms of the Deposit Agreement and the applicable ADR(s), (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, and (c)
acknowledge and agree that (i) nothing in the Deposit Agreement or any ADR shall give rise to a partnership or joint venture among the
parties thereto nor establish a fiduciary or similar relationship among such parties, (ii) the Depositary, its divisions, branches and
affiliates, and their respective agents, may from time to time be in the possession of non-public information about the Company, Holders,
Beneficial Owners and/or their respective affiliates, (iii) the Depositary and its divisions, branches and affiliates may at any time
have multiple banking relationships with the Company, Holders, Beneficial Owners and/or the affiliates of any of them, (iv) the Depositary
and its divisions, branches and affiliates may, from time to time, be engaged in transactions in which parties adverse to the Company
or the Holders or Beneficial Owners may have interests, (v) nothing contained in the Deposit Agreement or any ADR(s) shall (A) preclude
the Depositary or any of its divisions, branches or affiliates from engaging in such transactions or establishing or maintaining such
relationships, or (B) obligate the Depositary or any of its divisions, branches or affiliates to disclose such transactions or relationships
or to account for any profit made or payment received in such transactions or relationships, (vi) the Depositary shall not be deemed to
have knowledge of any information held by any branch, division or affiliate of the Depositary and (vii) notice to a Holder shall be deemed,
for all purposes of the Deposit Agreement and this ADR, to constitute notice to any and all Beneficial Owners of the ADSs evidenced by
such Holder’s
ADRs. For all purposes under the Deposit Agreement and this ADR, the Holder hereof shall be deemed to have all requisite authority to
act on behalf of any and all Beneficial Owners of the ADSs evidenced by this ADR.

​

(19)
Waiver. EACH PARTY TO THE DEPOSIT
AGREEMENT (INCLUDING, FOR AVOIDANCE OF DOUBT, EACH HOLDER AND BENEFICIAL OWNER OF, AND/OR HOLDER OF INTERESTS IN, ADSS OR ADRS) HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION OR
PROCEEDING AGAINST THE DEPOSITARY AND/OR THE COMPANY DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE SHARES OR OTHER DEPOSITED
SECURITIES, THE ADSs OR THE ADRs, THE DEPOSIT AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF
(WHETHER BASED ON CONTRACT, TORT, COMMON LAW OR ANY OTHER THEORY), INCLUDING, WITHOUT LIMITATION, ANY SUIT, ACTION OR PROCEEDING UNDER
THE UNITED STATES FEDERAL SECURITIES LAWS.

​

​

A-20

​

​

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

​

A-21

​

​

the Depositary’s
election be conducted either in New York, New York in accordance with the Commercial Arbitration Rules of the American Arbitration Association
or in Hong Kong following the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL) with the Hong Kong
International Arbitration Centre serving as the appointing authority, and the language of any such arbitration shall be English, in each
case as provided in the Deposit Agreement.

A-22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00326-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00326-of-00352.parquet"}]]