Document:

Form of Deposit Agreement Relating to the Depositary Shares.

 Exhibit 4.1 

  
 PUBLIC STORAGE, INC. 
  
 EQUISERVE TRUST COMPANY, N. A., AS DEPOSITARY 
  
 AND 
  
 THE HOLDERS FROM TIME TO TIME OF 
 THE DEPOSITARY RECEIPTS DESCRIBED HEREIN 
 RELATING TO SERIES B PREFERRED STOCK 
  

  
 DEPOSIT AGREEMENT 
  

  
 Dated as of June 30, 2004 
  

  

 TABLE OF CONTENTS 
  

			
	 	  	Page

	ARTICLE I	  	 
		
	Definitions	  	 
		
	ARTICLE II	  	 
		
	Form of Receipts, Deposit of Stock,	  	 
	Execution and Delivery, Transfer,	  	 
	Surrender and Redemption of Receipts	  	 
		
	 SECTION 2.1 Form and Transfer of Receipts
	  	2
	 SECTION 2.2 Deposit of Stock; Execution and Delivery of Receipts in Respect Thereof
	  	3
	 SECTION 2.3 Registration of Transfer of Receipts
	  	4
	 SECTION 2.4 Split-ups and Combinations of Receipts; Surrender of Receipts and Withdrawal of Stock
	  	4
	 SECTION 2.5 Limitations on Execution and Delivery, Transfer, Surrender and Exchange of Receipts
	  	5
	 SECTION 2.6 Lost Receipts, etc.
	  	6
	 SECTION 2.7 Cancellation and Destruction of Surrendered Receipts
	  	6
	 SECTION 2.8 Redemption of Stock
	  	6
		
	ARTICLE III	  	 
		
	Certain Obligations of	  	 
	Holders of Receipts and the Company	  	 
		
	 SECTION 3.1 Filing Proofs, Certificates and Other Information
	  	7
	 SECTION 3.2 Payment of Taxes or Other Governmental Charges
	  	8
	 SECTION 3.3 Warranty as to Stock
	  	8
		
	ARTICLE IV	  	 
		
	The Deposited Securities; Notices	  	 
		
	 SECTION 4.1 Cash Distributions
	  	8
	 SECTION 4.2 Distributions Other than Cash, Rights Preferences or Privileges
	  	9
	 SECTION 4.3 Subscription Rights, Preferences or Privileges
	  	9

  

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	 SECTION 4.4 Notice of Dividends, etc.; Fixing Record Date for Holders of Receipts
	  	10
	 SECTION 4.5 Voting Rights
	  	10
	 SECTION 4.6 Changes Affecting Deposited Securities and Reclassifications, Recapitalizations, etc.
	  	11
	 SECTION 4.7 Delivery of Reports
	  	11
	 SECTION 4.8 List of Receipt Holders
	  	11
		
	ARTICLE V	  	 
		
	The Depositary, the Depositary’s	  	 
	Agents, the Registrar and the Company	  	 
		
	 SECTION 5.1 Maintenance of Offices, Agencies and Transfer Books by the Depositary; Registrar
	  	12
	 SECTION 5.2 Prevention of or Delay in Performance by the Depositary, the Depositary’s Agents, the Registrar or the
Company
	  	12
	 SECTION 5.3 Obligation of the Depositary, the Depositary’s Agents, the Registrar and the Company
	  	13
	 SECTION 5.4 Resignation and Removal of the Depositary; Appointment of Successor Depositary
	  	14
	 SECTION 5.5 Corporate Notices and Reports
	  	15
	 SECTION 5.6 Indemnification by the Company
	  	15
	 SECTION 5.7 Charges and Expenses
	  	16
	 SECTION 5.8 Tax Compliance
	  	16
		
	ARTICLE VI	  	 
		
	Amendment and Termination	  	 
		
	 SECTION 6.1 Amendment
	  	17
	 SECTION 6.2 Termination
	  	17
		
	ARTICLE VII	  	 
		
	Miscellaneous	  	 
		
	 SECTION 7.1 Counterparts
	  	18
	 SECTION 7.2 Exclusive Benefit of Parties
	  	18
	 SECTION 7.3 Invalidity of Provisions
	  	18
	 SECTION 7.4 Notices
	  	18

  

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	 SECTION 7.5 Appointment of Registrar
	  	19
	 SECTION 7.6 Holders of Receipts are Parties
	  	19
	 SECTION 7.7 Governing Law
	  	19
	 SECTION 7.8 Inspection of Deposit Agreement
	  	19
	 SECTION 7.9 Headings
	  	19
		
	Form of Depositary Shares	  	 
		
	 Form of Face of Receipt
	  	A-1
	 Form of Reverse of Receipt
	  	A-3

  

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 DEPOSIT AGREEMENT, dated as of June 30, 2004, among PUBLIC STORAGE, INC., a California corporation (the
“Company”), EquiServe, Inc., a Delaware corporation and its wholly-owned subsidiary, EquiServe Trust Company, N. A., a national banking association (collectively, the “Depositary” or individually “EQI” and the
“Trust Company” respectively), and the holders from time to time of the Receipts described herein. 
  
 WHEREAS, it is desired to provide, as hereinafter set forth in this Deposit Agreement, for the deposit of shares of Series B Preferred Stock of the
Company with the Depositary for the purposes set forth in this Deposit Agreement and for the issuance hereunder of Receipts evidencing Depositary Shares in respect of the Stock so deposited; and 
  
 WHEREAS, the Receipts are to be substantially in the form of Exhibit A
annexed hereto, with appropriate insertions, modifications and omissions, as hereinafter provided in this Deposit Agreement; 
  
 NOW, THEREFORE, in consideration of the promises contained herein, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby
agree as follows: 
  
 ARTICLE I 
  
 Definitions 
  
 The following definitions shall, for all purposes, unless otherwise
indicated, apply to the respective terms used in this Deposit Agreement: 
  
 “Certificate” shall mean the Certificate of Determination filed with the Secretary of State of the State of California establishing the Stock as a series of preferred stock of the Company. 
  
 “Deposit Agreement” shall mean this Deposit Agreement, as amended
or supplemented from time to time. 
  
 “Depositary”
shall mean the Depositary as defined above and any successor as Depositary hereunder. 
  
 “Depositary Shares” shall mean Depositary Shares, each representing 1/1,000 of a share of Stock and evidenced by a Receipt. 
  
 “Depositary’s Agent” shall mean an agent appointed by the Depositary pursuant to Section 5.1 and shall
include the Registrar if such Registrar is not the Depositary. 
  

 “Depositary’s Office” shall mean the principal office of the Depositary at which at any
particular time its depositary receipt business shall be administered. 
  
 “Receipt” shall mean one of the Depositary Receipts, substantially in the form set forth as Exhibit A hereto, issued hereunder, whether in definitive or temporary form and evidencing the number of Depositary Shares held of record
by the record holder of such Depositary Shares. 
  
 “record
holder” or “holder” as applied to a Receipt shall mean the person in whose name a Receipt is registered on the books of the Depositary maintained for such purpose. 
  
 “Registrar” shall mean the Depositary or such other bank or trust company which shall be appointed to register
ownership and transfers of Receipts as herein provided. 
  
 “Securities Act” shall mean the Securities Act of 1933, as amended. 
  
 “Stock” shall mean shares of the Company’s 7.125% Cumulative Preferred Stock, Series B, $.01 par value per share. 
  

ARTICLE II 
  
 Form of Receipts, Deposit of Stock, 
 Execution and Delivery, Transfer,

 Surrender and Redemption of Receipts 
  
 SECTION 2.1 Form and Transfer of Receipts. Definitive Receipts shall be engraved or printed or lithographed on steel-engraved borders, with
appropriate insertions, modifications and omissions, as hereinafter provided, if and to the extent required by any securities exchange on which the Receipts are listed. Pending the preparation of definitive Receipts or if definitive Receipts are not
required by any securities exchange on which the Receipts are listed, the Depositary, upon the written order of the Company or any holder of Stock, as the case may be, delivered in compliance with Section 2.2, shall execute and deliver temporary
Receipts which are printed, lithographed, typewritten, mimeographed or otherwise substantially of the tenor of the definitive Receipts in lieu of which they are issued and with such appropriate insertions, omissions, substitutions and other
variations as the persons executing such Receipts may determine, as evidenced by their execution of such Receipts. If temporary Receipts are issued, the Company and the Depositary will cause definitive Receipts to be prepared without unreasonable
delay. After the preparation of definitive Receipts, the temporary Receipts shall be exchangeable for definitive Receipts upon surrender of the temporary Receipts at the Depositary’s Office or at such other place or places as the Depositary
shall determine, without charge to the holder. Upon surrender for cancellation of any one or more temporary Receipts, the Depositary shall execute and deliver in exchange 

  

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therefor definitive Receipts representing the same number of Depositary Shares as represented by the surrendered temporary Receipt or Receipts. Such exchange
shall be made at the Company’s expense and without any charge to the holder therefor. Until so exchanged, the temporary Receipts shall in all respects be entitled to the same benefits under this Agreement, and with respect to the Stock, as
definitive Receipts. 
  
 Receipts shall be executed by the
Depositary by the manual and/or facsimile signature of a duly authorized officer of the Depositary. No Receipt shall be entitled to any benefits under this Deposit Agreement or be valid or obligatory for any purpose unless it shall have been
executed in accordance with the foregoing sentence. The Depositary shall record on its books each Receipt so signed and delivered as hereinafter provided. 
  
 Receipts shall be in denominations of any number of whole Depositary Shares. The Company shall deliver to the Depositary from time to time such quantities
of Receipts as the Depositary may request to enable the Depositary to perform its obligations under this Deposit Agreement. 
  
 Receipts may be endorsed with or have incorporated in the text thereof such legends or recitals or changes not inconsistent with the provisions of this
Deposit Agreement as may be required by the Depositary or required to comply with any applicable law or any regulation thereunder or with the rules and regulations of any securities exchange upon which the Stock, the Depositary Shares or the
Receipts may be listed or to conform with any usage with respect thereto, or to indicate any special limitations or restrictions to which any particular Receipts are subject. 
  
 Title to Depositary Shares evidenced by a Receipt, which is properly endorsed or accompanied by a properly executed
instrument of transfer, shall be transferable by delivery with the same effect as in the case of a negotiable instrument; provided, however, that until transfer of a Receipt shall be registered on the books of the Depositary as
provided in Section 2.3, the Depositary may, notwithstanding any notice to the contrary, treat the record holder thereof at such time as the absolute owner thereof for the purpose of determining the person entitled to distributions of dividends or
other distributions or to any notice provided for in this Deposit Agreement and for all other purposes. 
  
 SECTION 2.2 Deposit of Stock; Execution and Delivery of Receipts in Respect Thereof. Subject to the terms and conditions of this Deposit Agreement,
the Company or, subject to Section 2.4, any holder of Stock may from time to time deposit shares of Stock under this Deposit Agreement by delivery to the Depositary of a certificate or certificates for the Stock to be deposited, properly endorsed or
accompanied, if required by the Depositary, by a duly executed instrument of transfer or endorsement, in form satisfactory to the Depositary, together with all such certifications as may be required by the Depositary in accordance with the
provisions of this Deposit Agreement, and together with a written order of the Company or such holder, as the case may be, directing the Depositary to execute and deliver to, or upon the written order of, the person or persons stated in such order a
Receipt or Receipts for the number of Depositary Shares representing such deposited Stock. 
  

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 Deposited Stock shall be held by the Depositary at the Depositary’s Office or at such other place or
places as the Depositary shall determine. 
  
 Upon receipt by the
Depositary of a certificate or certificates for Stock deposited in accordance with the provisions of this Section, together with the other documents required as above specified, and upon recordation of the Stock on the books of the Company in the
name of the Depositary or its nominee, the Depositary, subject to the terms and conditions of this Deposit Agreement, shall execute and deliver, to or upon the order of the person or persons named in the written order delivered to the Depositary
referred to in the first paragraph of this Section, a Receipt or Receipts for the whole number of Depositary Shares representing, in the aggregate, the Stock so deposited and registered in such name or names as may be requested by such person or
persons. The Depositary shall execute and deliver such Receipt or Receipts at the Depositary’s Office or such other offices, if any, as the Depositary may designate. Delivery at other offices shall be at the risk and expense of the person
requesting such delivery. 
  
 SECTION 2.3 Registration of
Transfer of Receipts. Subject to the terms and conditions of this Deposit Agreement, the Depositary shall register on its books from time to time transfers of Receipts upon any surrender thereof by the holder in person or by a duly authorized
attorney, properly endorsed or accompanied by a properly executed instrument of transfer. Thereupon, the Depositary shall execute a new Receipt or Receipts evidencing the same aggregate number of Depositary Shares as those evidenced by the Receipt
or Receipts surrendered and deliver such new Receipt or Receipts to or upon the order of the person entitled thereto. 
  
 SECTION 2.4 Split-ups and Combinations of Receipts; Surrender of Receipts and Withdrawal of Stock. Upon surrender of a Receipt or Receipts at the
Depositary’s Office or at such other offices as it may designate for the purpose of effecting a split-up or combination of such Receipt or Receipts, and subject to the terms and conditions of this Deposit Agreement, the Depositary shall execute
and deliver a new Receipt or Receipts in the authorized denomination or denominations requested, evidencing the aggregate number of Depositary Shares evidenced by the Receipt or Receipts surrendered; provided, however, that the
Depositary shall not issue any Receipt evidencing a fractional Depositary Share. 
  
 Any holder of a Receipt or Receipts representing any number of whole shares of Stock may (unless the related Depositary Shares have previously been called for redemption) withdraw the Stock and all money and other
property, if any, represented thereby by surrendering such Receipt or Receipts at the Depositary’s Office or at such other offices as the Depositary may designate for such withdrawals and paying any unpaid amount due the Depositary. Thereafter,
without unreasonable delay, the Depositary shall deliver to such holder or to the person or persons designated by such holder as hereinafter provided, the number of whole shares of Stock and all money and other property, if any, represented by the
Receipt or Receipts so surrendered for withdrawal, but holders of such whole shares of Stock will not thereafter be entitled to deposit such Stock hereunder or to receive Depositary Shares therefor. If a Receipt delivered by the holder to the
Depositary in connection with such withdrawal shall evidence a number of Depositary 

  

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Shares in excess of the number of Depositary Shares representing the number of whole shares of Stock to be so withdrawn, the Depositary shall at the same
time, in addition to such number of whole shares of Stock and such money and other property, if any, to be so withdrawn, deliver to such holder, or upon his order, a new Receipt evidencing such excess number of Depositary Shares, provided,
however, that the Depositary shall not issue any Receipt evidencing a fractional Depositary Share. Delivery of the Stock and money and other property being withdrawn may be made by the delivery of such certificates, documents of title and
other instruments as the Depositary may deem appropriate which, if required by the Depositary, shall be properly endorsed or accompanied by proper instruments of transfer. 
  
 If the Stock and the money and other property being withdrawn are to be delivered to a person or persons other than the
record holder of the Receipt or Receipts being surrendered for withdrawal of Stock, such holders shall execute and deliver to the Depositary a written order so directing the Depositary and the Depositary may require that the Receipt or Receipts
surrendered by such holder for withdrawal of such shares of Stock be properly endorsed in blank or accompanied by a properly executed instrument of transfer in blank. 
  
 Delivery of the Stock and the money and other property, if any, represented by Receipts surrendered for withdrawal shall be
made by the Depositary at the Depositary’s Office, except that, at the request, risk and expense of the holder surrendering such Receipt or Receipts and for the account of the holder thereof, such delivery may be made at such other place as may
be designated by such holder. 
  
 SECTION 2.5 Limitations on
Execution and Delivery, Transfer, Surrender and Exchange of Receipts. As a condition precedent to the execution and delivery, registration of transfer, split-up, combination, surrender or exchange of any Receipt, the Depositary, any of the
Depositary’s Agents or the Company may require payment to it of a sum sufficient for the payment (or, in the event that the Depositary or the Company shall have made such payment, the reimbursement to it) of any charges or expenses payable by
the holder of a Receipt pursuant to Sections 3.2 and 5.7, may require the production of evidence satisfactory to it as to the identity and genuineness of any signature, and may also require compliance with such regulations, if any, as the Depositary
or the Company may establish consistent with the provisions of this Deposit Agreement. 
  
 The deposit of Stock may be refused, the delivery of Receipts against Stock may be suspended, the registration of transfer of Receipts may be refused and the registration of transfer, surrender or exchange of
outstanding Receipts may be suspended (i) during any period when the register of stockholders of the Company is closed, or (ii) if any such action is deemed necessary or advisable by the Depositary, any of the Depositary’s Agents or the Company
at any time or from time to time because of any requirement of law or of any government or governmental body or commission or under any provision of this Deposit Agreement. 
  

 5 

 SECTION 2.6 Lost Receipts, etc. In case any receipt shall be mutilated, destroyed, lost or stolen,
the Depositary in its reasonable discretion may execute and deliver a Receipt of like form and tenor in exchange and substitution for such mutilated Receipt, or in lieu of and in substitution for such destroyed, lost or stolen Receipt, upon (i) the
filing by the holder thereof with the Depositary of evidence reasonably satisfactory to the Depositary of such destruction or loss or theft of such Receipt, of the authenticity thereof and of his or her ownership thereof, (ii) the furnishing of the
Depositary with indemnification reasonably satisfactory to it and the Company and (iii) the payment of any reasonable expense (including reasonable fees, charges and expenses of the Depositary) in connection with such execution and delivery.

  
 SECTION 2.7 Cancellation and Destruction of Surrendered
Receipts. All Receipts surrendered to the Depositary or any Depositary’s Agent shall be cancelled by the Depositary. Except as prohibited by applicable law or regulation, the Company is authorized to destroy all Receipts so cancelled.

  
 SECTION 2.8 Redemption of Stock. Whenever the Company
shall be permitted and shall elect to redeem shares of Stock in accordance with the provisions of the Certificate, it shall (unless otherwise agreed to in writing with the Depositary) give or cause to be given to the Depositary not less than 60
days’ notice of the date of such proposed redemption or exchange of Stock and of the number of such shares held by the Depositary to be so redeemed and the applicable redemption price, as set forth in the Certificate, which notice shall be
accompanied by a certificate from the Company stating that such redemption of Stock is in accordance with the provisions of the Certificate. Notice of redemption of Stock will also be given by the Company by publication in a newspaper of general
circulation in the County of Los Angeles and the City of New York, such publication to be made once a week for two successive weeks commencing not less than 30 nor more than 60 days prior to the redemption date, and the Depositary will publish a
notice of redemption of the Depositary Shares containing the same type of information and in the same manner as the Company’s notice of redemption. On the date of such redemption, provided that the Company shall then have paid or caused to be
paid in full to the Depositary the redemption price of the Stock to be redeemed, plus an amount equal to any accrued and unpaid dividends thereon to the date fixed for redemption, in accordance with the provisions of the Certificate, the Depositary
shall redeem the number of Depositary Shares representing such Stock. The Depositary shall mail notice of the Company’s redemption of Stock and the proposed simultaneous redemption of the number of Depositary Shares representing the Stock to be
redeemed by first-class mail, postage prepaid, not less than 30 and not more than 60 days prior to the date fixed for redemption of such Stock and Depositary Shares (the “Redemption Date”) to the record holders of the Receipts evidencing
the Depositary Shares to be so redeemed, at the address of such holders as they appear on the records of the Depositary; but neither failure to mail any such notice of redemption of Depositary Shares to one or more such holders nor any defect in any
notice of redemption of Depositary Shares to one or more such holders shall affect the sufficiency of the proceedings for redemption as to the other holders. The Company will provide the Depositary with the information necessary for the Depositary
to prepare such notice and each such notice shall state: (i) the Redemption Date; (ii) the number of Depositary Shares to be redeemed and, if less than all the Depositary Shares held by any such holder are to be redeemed, the number of such
Depositary Shares held 

  

 6 

 
by such holder to be so redeemed; (iii) the redemption price per Depositary Share; (iv) the place or places where Receipts evidencing Depositary Shares are
to be surrendered for payment of the redemption price; and (v) that dividends in respect of the Stock represented by the Depositary Shares to be redeemed will cease to accrue on such Redemption Date. In case less than all the outstanding Depositary
Shares are to be redeemed, the Depositary Shares to be so redeemed shall be determined pro rata or by lot in a manner determined by the Board of Directors. 
  
 Notice having been mailed by the Depositary as aforesaid, from and after the Redemption Date (unless the Company shall have failed to provide the funds
necessary to redeem the Stock evidenced by the Depositary Shares called for redemption) (i) dividends on the shares of Stock so called for redemption shall cease to accrue from and after such date, (ii) the Depositary Shares being redeemed from such
proceeds shall be deemed no longer to be outstanding, (iii) all rights of the holders of Receipts evidencing such Depositary Shares (except the right to receive the redemption price) shall, to the extent of such Depositary Shares, cease and
terminate, and (iv) upon surrender in accordance with such redemption notice of the Receipts evidencing any such Depositary Shares called for redemption (properly endorsed or assigned for transfer, if the Depositary or applicable law shall so
require), such Depositary Shares shall be redeemed by EQI at a redemption price per Depositary Share equal to the same fraction of the redemption price per share paid with respect to the shares of Stock as the fraction each Depositary Share
represents of a share of Stock plus the same fraction of all money and other property, if any, represented by such Depositary Shares, including all amounts paid by the Company in respect of dividends which on the Redemption Date have accumulated on
the shares of Stock to be so redeemed and have not theretofore been paid. Any funds deposited by the Company with EQI for any Depositary Shares that the holders thereof fail to redeem will be returned to the Company after a period of five years from
the date such funds are so deposited. 
  
 If fewer than all of the
Depositary Shares evidenced by a Receipt are called for redemption, the Depositary will deliver to the holder of such Receipt upon its surrender to the Depositary, together with the redemption payment, a new Receipt evidencing the Depositary Shares
evidenced by such prior Receipt and not called for redemption, provided, however, that the Depositary shall not issue any Receipt evidencing a fractional Depositary Share. 
  
 ARTICLE III 
  
 Certain Obligations of 
 Holders of
Receipts and the Company 
  
 SECTION 3.1 Filing Proofs,
Certificates and Other Information. Any holder of a Receipt may be required from time to time to file such proof of residence, or other matters or other information, to 

  

 7 

 
execute such certificates and to make such representations and warranties as the Depositary or the Company may reasonably deem necessary or proper or
otherwise reasonably request. The Depositary or the Company may withhold the delivery, or delay the registration of transfer, redemption or exchange, of any Receipt or the withdrawal or conversion of the Stock represented by the Depositary Shares
evidenced by any Receipt or the distribution of any dividend or other distribution or the sale of any rights or of the proceeds thereof until such proof or other information is filed or such certificates are executed or such representations and
warranties are made. 
  
 SECTION 3.2 Payment of Taxes or Other
Governmental Charges. Holders of Receipts shall be obligated to make payments to the Depositary of certain charges and expenses, as provided in Section 5.7. Registration of transfer of any Receipt or any withdrawal of Stock and all money or
other property, if any, represented by the Depositary Shares evidenced by such Receipt may be refused until any such payment due is made, and any dividends, interest payments or other distributions may be withheld or any part of or all the Stock or
other property represented by the Depositary Shares evidenced by such Receipt and not theretofore sold may be sold for the account of the holder thereof (after attempting by reasonable means to notify such holder prior to such sale), and such
dividends, interest payments or other distributions or the proceeds of any such sale may be applied to any payment of such charges or expenses, the holder of such Receipt remaining liable for any deficiency. 
  
 SECTION 3.3 Warranty as to Stock. The Company hereby represents and
warrants that the Stock, when issued, will be duly authorized, validly issued, fully paid and nonassessable. Such representation and warranty shall survive the deposit of the Stock and the issuance of Receipts. 
  
 ARTICLE IV 
  
 The Deposited Securities; Notices 
  
 SECTION 4.1 Cash Distributions. Whenever EQI shall receive any cash dividend or other cash distribution on Stock, EQI
shall, subject to Sections 3.1 and 3.2, distribute to record holders of Receipts on the record date fixed pursuant to Section 4.4 such amounts of such dividend or distribution as are, as nearly as practicable, in proportion to the respective numbers
of Depositary Shares evidenced by the Receipts held by such holders; provided, however, that in case the Company or EQI shall be required to withhold and shall withhold from any cash dividend or other cash distribution in respect of
the Stock an amount on account of taxes or as otherwise required by law, regulation or court process, the amount made available for distribution or distributed in respect of Depositary Shares shall be reduced accordingly. In the event that the
calculation of any such cash dividend or other cash distribution to be paid to any record holder on the aggregate number of Depositary Receipts held by such holder results in an amount which is a fraction of a cent, the amount EQI shall distribute
to such record holder shall be rounded to the next highest whole cent if such fraction of a cent is equal to or greater than $.005, otherwise such fractional 

  

 8 

 
interest shall be disregarded; and upon request of EQI, the Company shall pay the additional amount to EQI for distribution. 
  
 SECTION 4.2 Distributions Other than Cash, Rights, Preferences or
Privileges. Whenever the Depositary shall receive any distribution other than cash, rights, preferences or privileges upon Stock, the Depositary shall, subject to Sections 3.1 and 3.2, distribute to record holders of Receipts on the record date
fixed pursuant to Section 4.4 such amounts of the securities or property received by it as are, as nearly as practicable, in proportion to the respective numbers of Depositary Shares evidenced by the Receipts held by such holders, in any manner that
the Depositary may deem equitable and practicable for accomplishing such distribution. If in the opinion of the Depositary such distribution cannot be made proportionately among such record holders, or if for any other reason (including any
requirement that the Company or the Depositary withhold an amount on account of taxes) the Depositary deems such distribution not to be feasible, the Depositary may, with the approval of the Company, adopt such method as it deems equitable and
practicable for the purpose of effecting such distribution, including the sale (at public or private sale) of the securities or property thus received, or any part thereof, at such place or places and upon such terms as it may deem equitable and
appropriate. The net proceeds of any such sale shall, subject to Sections 3.1 and 3.2, be distributed or made available for distribution, as the case may be, by the Depositary to record holders of Receipts as provided by Section 4.1 in the case of a
distribution received in cash. 
  
 SECTION 4.3 Subscription
Rights, Preferences or Privileges. If the Company shall at any time offer or cause to be offered to the persons in whose names Stock is recorded on the books of the Company any rights, preferences or privileges to subscribe for or to purchase
any securities or any rights, preferences or privileges of any other nature, such rights, preferences or privileges shall in each such instance be made available by the Depositary to the record holders of Receipts in such manner as the Depositary
may determine, either by the issue to such record holders of warrants representing such rights, preferences or privileges or by such other method as may be approved by the Depositary in its discretion with the approval of the Company;
provided, however, that (i) if at the time of issue or offer of any such rights, preferences or privileges the Depositary determines that it is not lawful or (after consultation with the Company) not feasible to make such rights,
preferences or privileges available to holders of Receipts by the issue of warrants or otherwise, or (ii) if and to the extent so instructed by holders of Receipts who do not desire to execute such rights, preferences or privileges, then the
Depositary, in its discretion (with approval of the Company, in any case where the Depositary has determined that it is not feasible to make such rights, preferences or privileges available), may, if applicable laws or the terms of such rights,
preferences or privileges permit such transfer, sell such rights, preferences or privileges at public or private sale, at such place or places and upon such terms as it may deem proper. The net proceeds of any such sale shall, subject to Sections
3.1 and 3.2, be distributed by the Depositary to the record holders of Receipts entitled thereto as provided by Section 4.1 in the case of a distribution received in cash. 
  
 If registration under the Securities Act of the securities to which any rights, preferences or privileges relate is required
in order for holders of Receipts to be offered or sold the securities to which 

  

 9 

 
such rights, preferences or privileges relate, the Company will file promptly a registration statement pursuant to the Securities Act with respect to such
rights, preferences or privileges and securities and use its best efforts and take all steps available to it to cause such registration statement to become effective sufficiently in advance of the expiration of such rights, preferences or privileges
to enable such holders to exercise such rights, preferences or privileges. In no event shall the Depositary make available to the holders of Receipts any right, preference or privilege to subscribe for or to purchase any securities unless and until
it has received written notice from the Company that such registration statement shall have become effective, or that the offering and sale of such securities to such holders are exempt from registration under the provisions of the Securities Act
and the Company shall have provided to the Depositary an opinion of counsel reasonably satisfactory to the Depositary to such effect. 
  
 If any other action under the laws of any jurisdiction or any governmental or administrative authorization, consent or permit is required in order for
such rights, preferences or privileges to be made available to holders of Receipts, the Company will use its reasonable best efforts to take such action or obtain such authorization, consent or permit sufficiently in advance of the expiration of
such rights, preferences or privileges to enable such holders to exercise such rights, preferences or privileges. 
  
 SECTION 4.4 Notice of Dividends, etc.; Fixing Record Date for Holders of Receipts. Whenever any cash dividend or other cash distribution shall
become payable or any distribution other than cash shall be made, or if rights, preferences or privileges shall at any time be offered, with respect to Stock, or whenever the Depositary shall receive notice of any meeting at which holders of Stock
are entitled to vote or of which holders of Stock are entitled to notice, or whenever the Depositary and the Company shall decide it is appropriate, the Depositary shall in each such instance fix a record date (which shall be the same date as the
record date fixed by the Company with respect to or otherwise in accordance with the terms of the Stock) for the determination of the holders of Receipts who shall be entitled to receive such dividend, distribution, rights, preferences or privileges
or the net proceeds of the sale thereof, or to give instructions for the exercise of voting rights at any such meeting, or who shall be entitled to notice of such meeting or for any other appropriate reasons. 
  
 SECTION 4.5 Voting Rights. Upon receipt of notice of any meeting at
which the holders of Stock are entitled to vote, the Depositary shall, as soon as practicable thereafter, mail to the record holders of Receipts a notice which shall contain (i) such information as is contained in such notice of meeting and (ii) a
statement that the holders may, subject to any applicable restrictions, instruct the Depositary as to the exercise of the voting rights pertaining to the amount of Stock represented by their respective Depositary Shares (including an express
indication that instructions may be given to the Depositary to give a discretionary proxy to a person designated by the Company) and a brief statement as to the manner in which such instructions may be given. Upon the written request of the holders
of Receipts on the relevant record date, the Depositary shall use its best efforts to vote or cause to be voted, in accordance with the instructions set forth in such requests, the maximum number of whole shares of Stock represented by the
Depositary Shares evidenced by all Receipts as to which any particular voting 

  

 10 

 
instructions are received. The Company hereby agrees to take all action which may be deemed necessary by the Depositary in order to enable the Depositary to
vote such Stock or cause such Stock to be voted. In the absence of specific instructions from the holder of a Receipt, the Depositary will not vote (but, at its discretion, may appear at any meeting with respect to such Stock unless directed to the
contrary by the holders of all the Receipts) to the extent of the Stock represented by the Depositary Shares evidenced by such Receipt. 
  
 SECTION 4.6 Changes Affecting Deposited Securities and Reclassifications, Recapitalizations, etc. Upon any change in par value or liquidation
preference, split-up, combination or any other reclassification of the Stock, or upon any recapitalization, reorganization, merger or consolidation affecting the Company or to which it is a party, the Depositary may in its discretion with the
approval (not to be unreasonably withheld) of, and shall upon the instructions of, the Company, and (in either case) in such manner as the Depositary may deem equitable, (i) make such adjustments in the fraction of an interest in one share of Stock
represented by one Depositary Share as may be necessary (as certified by the Company) fully to reflect the effects of such change in par value or liquidation preference, split-up, combination or other reclassification of Stock, or of such
recapitalization, reorganization, merger or consolidation and (ii) treat any securities which shall be received by the Depositary in exchange for or upon conversion of or in respect of the Stock as new deposited securities so received in exchange
for or upon conversion or in respect of such Stock. In any such case, the Depositary may in its discretion, with the approval of the Company, execute and deliver additional Receipts or may call for the surrender of all outstanding Receipts to be
exchanged for new Receipts specifically describing such new deposited securities. Anything to the contrary herein notwithstanding, holders of Receipts shall have the right from and after the effective date of any such change in par value or
liquidation preference, split-up, combination or other reclassification of the Stock or any such recapitalization, reorganization, merger or consolidation to surrender such Receipts to the Depositary with instructions to convert, exchange or
surrender the Stock represented thereby only into or for, as the case may be, the kind and amount of shares of stock and other securities and property and cash into which the Stock represented by such Receipts would have been converted or for which
such Stock would have been exchanged or surrendered had such Receipt been surrendered immediately prior to the effective date of such transaction. 
  
 SECTION 4.7 Delivery of Reports. The Depositary shall furnish to holders of Receipts any reports and communications received from the Company which
are received by the Depositary as the holder of Stock. 
  
 SECTION
4.8 List of Receipt Holders. Promptly upon request from time to time by the Company, the Depositary shall furnish to it a list, as of the most recent practicable date, of the names, addresses and holdings of Depositary Shares of all record
holders of Receipts. The Company shall be entitled to receive such list four times annually without charge. 
  

 11 

 ARTICLE V 
  
 The Depositary, the Depositary’s 
 Agents, the Registrar and the Company 
  
 SECTION
5.1 Maintenance of Offices, Agencies and Transfer Books by the Depositary; Registrar. Upon execution of this Deposit Agreement, the Depositary shall maintain at the Depositary’s office facilities for the execution and delivery,
registration and registration of transfer, surrender and exchange of Receipts, and at the offices of the Depositary’s Agents, if any, facilities for the delivery, registration of transfer, surrender and exchange of Receipts, all in accordance
with the provisions of this Deposit Agreement. 
  
 The Depositary
shall keep books at the Depositary’s Office for the registration and registration of transfer of Receipts, which books during normal business hours shall be open for inspection by the record holders of Receipts; provided that any such holder
requesting to exercise such right shall certify to the Depositary that such inspection shall be for a proper purpose reasonably related to such person’s interest as an owner of Depositary Shares evidenced by the Receipts. 
  
 The Depositary may close such books, at any time or from time to time, when
deemed expedient by it in connection with the performance of its duties hereunder. 
  
 The Depositary may, with the approval of the Company, appoint a Registrar for registration of the Receipts or the Depositary Shares evidenced thereby. If the Receipts or the Depositary Shares evidenced thereby or the
Stock represented by such Depositary Shares shall be listed on one or more national securities exchanges, the Depositary will appoint a Registrar (acceptable to the Company) for registration of such Receipts or Depositary Shares in accordance with
any requirements of such exchange. Such Registrar (which may be the Depositary if so permitted by the requirements of any such exchange) may be removed and a substitute registrar appointed by the Depositary upon the request or with the approval of
the Company. If the Receipts, such Depositary Shares or such Stock are listed on one or more other stock exchanges, the Depositary will, at the request and at the expense of the Company, arrange such facilities for the delivery, registration,
registration of transfer, surrender and exchange of such Receipts, such Depositary Shares or such Stock as may be required by law or applicable securities exchange regulation. 
  
 The Depositary may from time to time appoint Depositary’s Agents to act in any respect for the Depositary for the
purposes of this Deposit Agreement and may at any time appoint additional Depositary’s Agents and vary or terminate the appointment of such Depositary’s Agents. The Depositary will notify the Company of any such action. 
  
 SECTION 5.2 Prevention of or Delay in Performance by the Depositary, the
Depositary’s Agents, the Registrar or the Company. Neither the Depositary nor any Depositary’s 

  

 12 

 
Agent nor the Registrar nor the Company shall incur any liability to any holder of any Receipt if by reason of any provision of any present or future law, or
regulation thereunder, of the United States of America or of any other governmental authority or, in the case of the Depositary, the Depositary’s Agent or the Registrar, by reason of any provision, present or future, of the Company’s
Articles of Incorporation or by reason of any act of God or war or other circumstance beyond the control of the relevant party, the Depositary, the Depositary’s Agent, the Registrar or the Company shall be prevented, delayed or forbidden from,
or subjected to any penalty on account of, doing or performing any act or thing which the terms of this Deposit Agreement provide shall be done or performed; nor shall the Depositary, any Depositary’s Agent, the Registrar or the Company incur
liability to any holder of a Receipt (i) by reason of any nonperformance or delay, caused as aforesaid, in the performance of any act or thing which the terms of this Deposit Agreement shall provide shall or may be done or performed, or (ii) by
reason of any exercise of, or failure to exercise, any discretion provided for in this Deposit Agreement except, in the case of any such exercise or failure to exercise discretion not caused as aforesaid, if caused by the gross negligence or willful
misconduct of the party charged with such exercise or failure to exercise. 
  
 SECTION 5.3 Obligation of the Depositary, the Depositary’s Agents, the Registrar and the Company. Neither the Depositary nor any Depositary’s Agent nor the Registrar nor the Company assumes any
obligation or shall be subject to any liability under this Deposit Agreement or any Receipt to holders of Receipts other than for its gross negligence, willful misconduct or bad faith. 
  
 Neither the Depositary nor any Depositary’s Agent nor the Registrar nor the Company shall be under any obligation to
appear in, prosecute or defend any action, suit or other proceeding in respect of the Stock, the Depositary Shares or the Receipts which in its reasonable opinion may involve it in expense or liability unless indemnity reasonably satisfactory to it
against expense and liability be furnished as often as may be reasonably required. 
  
 Neither the Depositary nor any Depositary’s Agent nor the Registrar nor the Company shall be liable for any action or any failure to act by it in reliance upon the written advice of legal counsel or accountants,
or information from any person presenting Stock for deposit, any holder of a Receipt or any other person believed by it in good faith to be competent to give such information. The Depositary, any Depositary’s Agent, the Registrar and the
Company may each rely and shall each be protected in acting upon any written notice, request, direction or other document reasonably believed by it to be genuine and to have been signed or presented by the proper party or parties. 
  
 The Depositary shall not be responsible for any failure to carry out any
instruction to vote any of the shares of Stock or for the manner or effect of any such vote made, as long as any such action or non-action is in good faith. The Depositary will indemnify the Company and hold it harmless from any loss, liability or
expense (including the reasonable costs and expenses of defending itself) which may arise out of acts performed or omitted by the Depositary, including when such Depositary acts as Registrar, or the Depositary’s Agents in connection with this
Agreement due to its or their gross negligence, willful 

  

 13 

 
misconduct or bad faith. The indemnification obligations of the Depositary set forth in this Section 5.3 shall survive any termination of this Agreement and
any succession of any Depositary. 
  
 The Depositary, its parent,
affiliates or subsidiaries, the Depositary’s Agents, and the Registrar may own, buy, sell and deal in any class of securities of the Company and its affiliates and in Receipts or Depositary Shares or become pecuniarily interested in any
transaction in which the Company or its affiliates may be interested or contract with or lend money to or otherwise act as fully or as freely as if it were not the Depositary, parent, affiliate or subsidiary or Depositary’s Agent or Registrar
hereunder. The Depositary may also act as trustee, transfer agent or registrar of any of the securities of the Company and its affiliates. 
  
 It is intended that neither the Depositary nor any Depositary’s Agent nor the Registrar, acting as the Depositary’s Agent or Registrar, as the
case may be, shall be deemed to be an “issuer” of the securities under the federal securities laws or applicable state securities laws, it being expressly understood and agreed that the Depositary, any Depositary’s Agent and the
Registrar are acting only in a ministerial capacity as Depositary or Registrar for the Stock. 
  
 Neither the Depositary (or its officers, directors, employees or agents) nor any Depositary’s Agent nor the Registrar makes any representation or has any responsibility as to the validity of the registration
statement pursuant to which the Depositary Shares are registered under the Securities Act, the Stock, the Depositary Shares or the Receipts (except for its counter-signatures thereon) or any instruments referred to therein or herein, or as to the
correctness of any statement made therein or herein. 
  
 The
Depositary assumes no responsibility for the correctness of the description that appears in the Receipts, which can be taken as a statement of the Company summarizing certain provisions of this Deposit Agreement. Notwithstanding any other provision
herein or in the Receipts, the Depositary makes no warranties or representations as to the validity or genuineness of any Stock at any time deposited with the Depositary hereunder or of the Depositary Shares, as to the validity or sufficiency of
this Deposit Agreement, as to the value of the Depositary Shares or as to any right, title or interest of the record holders of Receipts in and to the Depositary Shares. The Depositary shall not be accountable for the use or application by the
Company of the Depositary Shares or the Receipts or the proceeds thereof. 
  
 SECTION 5.4 Resignation and Removal of the Depositary; Appointment of Successor Depositary. The Depositary may at any time resign as Depositary hereunder by delivering notice of its election to do so to the
Company, such resignation to take effect upon the appointment of a successor Depositary and its acceptance of such appointment as hereinafter provided. 
  
 The Depositary may at any time be removed by the Company by notice of such removal delivered to the Depositary, such removal to take effect upon the
appointment of a successor Depositary and its acceptance of such appointment as hereinafter provided. 
  

 14 

 In case at any time the Depositary acting hereunder shall resign or be removed, the Company shall, within
60 days after the delivery of the notice of resignation or removal, as the case may be, appoint a successor Depositary, which shall be a bank or trust company having its principal office in the United States of America and having a combined capital
and surplus of at least $150,000,000. If no successor Depositary shall have been so appointed and have accepted appointment within 60 days after delivery of such notice, the resigning or removed Depositary may petition any court of competent
jurisdiction for the appointment of a successor Depositary. Every successor Depositary shall execute and deliver to its predecessor and to the Company an instrument in writing accepting its appointment hereunder, and thereupon such successor
Depositary, without any further act or deed, shall become fully vested with all the rights, powers, duties and obligations of its predecessor and for all purposes shall be the Depositary under this Deposit Agreement, and such predecessor, upon
payment of all sums due it and on the written request of the Company, shall execute and deliver an instrument transferring to such successor all rights and powers of such predecessor hereunder, shall duly assign, transfer and deliver all right,
title and interest in the Stock and any moneys or property held hereunder to such successor, and shall deliver to such successor a list of the record holders of all outstanding Receipts and such records, books and other information in its possession
relating thereto. Any successor Depositary shall promptly mail notice of its appointment to the record holders of Receipts. 
  
 Any corporation into or with which the Depositary may be merged, consolidated or converted shall be the successor of such Depositary without the execution
or filing of any document or any further act, and notice thereof shall not be required hereunder. Such successor Depositary may authenticate the Receipts in the name of the predecessor Depositary or in the name of the successor Depositary.

  
 SECTION 5.5 Corporate Notices and Reports. The Company
agrees that it will deliver to the Depositary, and the Depositary will, promptly after receipt thereof, transmit to the record holders of Receipts, in each case at the addresses recorded in the Depositary’s books, copies of all notices and
reports (including without limitation financial statements) required by law or by the rules of any national securities exchange upon which the Stock, the Depositary Shares or the Receipts are listed, to be furnished to the record holders of
Receipts. Such transmission will be at the Company’s expense and the Company will provide the Depositary with such number of copies of such documents as the Depositary may reasonably request. 
  
 SECTION 5.6 Indemnification by the Company. The Company shall
indemnify the Depositary, any Depositary’s Agent and the Registrar against, and hold each of them harmless from, any loss, liability or expense (including the reasonable costs and expenses of defending itself) which may arise out of acts
performed or omitted in connection with this Deposit Agreement and the Receipts by the Depositary, any Registrar or any of their respective agents (including any Depositary’s Agent), except for any liability arising out of gross negligence,
willful misconduct or bad faith on the respective parts of any such person or persons. The obligations of the Company set forth in this Section 5.6 shall survive any succession of any Depositary or Depositary’s Agent. Subject to the foregoing,
the Depositary may, at any 

  

 15 

 
time, apply to any officer of the Company for instruction, and may consult with legal counsel for the Company with respect to any matter arising in
connection with the services to be performed by the Depositary under this Agreement, and Depositary and its agents and subcontractors shall not be liable and shall be indemnified by the Company for any action taken or omitted by it in reliance upon
such instructions or upon the advice or opinion of such counsel. 
  
 SECTION 5.7 Charges and Expenses. The Company shall pay all transfer and other taxes and governmental charges arising solely from the existence of the depositary arrangements. The Company shall pay charges of the Depositary in
connection with the initial deposit of the Stock and the initial issuance of the Depositary Shares, all withdrawals of shares of the Stock by owners of Depositary Shares, and any redemption of the Stock at the option of the Company. All other
transfer and other taxes and governmental charges shall be at the expense of holders of Depositary Shares. If, at the request of a holder of Receipts, the Depositary incurs charges or expenses for which it is not otherwise liable hereunder, such
holder will be liable for such charges and expenses. All other charges and expenses of the Depositary and any Depositary’s Agent hereunder (including, in each case, reasonable fees and expenses of counsel) incident to the performance of their
respective obligations hereunder will be paid upon consultation and agreement between the Depositary and the Company as to the amount and nature of such charges and expenses. The Depositary shall present its statement for charges and expenses to the
Company at such intervals as the Company and the Depositary may agree. 
  
 SECTION 5.8 Tax Compliance. The Depositary, on its own behalf and on behalf of the Company, will comply with all applicable certification, information reporting and withholding (including “backup” withholding) requirements
imposed by applicable tax laws, regulations or administrative practice with respect to (i) any payments made with respect to the Depositary Shares or (ii) the issuance, delivery, holding, transfer, redemption or exercise of rights under the
Depositary Receipts or the Depositary Shares. Such compliance shall include, without limitation, the preparation and timely filing of required returns and the timely payment of all amounts required to be withheld to the appropriate taxing authority
or its designated agent. 
  
 The Depositary shall comply with any
direction received from the Company with respect to the application of such requirements to particular payments or holders or in other particular circumstances, and may for purposes of this Agreement rely on any such direction in accordance with the
provisions of Section 5.3 hereof. 
  
 The Depositary shall
maintain all appropriate records documenting compliance with such requirements, and shall make such records available on request to the Company or to its authorized representatives. 
  
 The Company acknowledges that the bank accounts maintained by EQI in connection with the services provided hereunder will be
in EQI’s name and that, to the extent permitted by law, EQI may 

  

 16 

 
receive investment earnings in connection with the investment at EQI’s risk and for its benefit of funds held in those accounts from time to time.

  
 ARTICLE VI 
  
 Amendment and Termination 
  
 SECTION 6.1 Amendment. The form of the Receipts and any provisions of
this Deposit Agreement may at any time and from time to time be amended by agreement between the Company and the Depositary in any respect which they may deem necessary or desirable; provided, however, that no such amendment (other
than any change in the fees of any Depositary or Registrar, which shall go into effect not sooner than three months after notice thereof to the holders of the Receipts) which shall materially adversely alter the rights of the holders of Receipts
shall be effective unless such amendment shall have been approved by the holders of at least a majority of the Depositary Shares then outstanding. Every holder of an outstanding Receipt at the time any such amendment becomes effective shall be
deemed, by continuing to hold such Receipt, to be bound by the Deposit Agreement as amended thereby. Notwithstanding the foregoing, in no event may any amendment impair the right of any holder of any Depositary Shares, upon surrender of the Receipts
evidencing such Depositary Shares and subject to any conditions specified in this Deposit Agreement, to receive shares of Stock and any money or other property represented thereby, except in order to comply with mandatory provisions of applicable
law. 
  
 SECTION 6.2 Termination. This Deposit Agreement
may be terminated by the Company at any time upon not less than 60 days’ prior written notice to the Depositary, in which case, on a date that is not later than 30 days after the date of such notice, the Depositary shall deliver or make
available for delivery to holders of Depositary Shares, upon surrender of the Receipts evidencing such Depositary Shares, such number of whole or fractional shares of Stock as are represented by such Depositary Shares. This Deposit Agreement will
automatically terminate after (i) all outstanding Depositary Shares have been redeemed pursuant to Section 2.8 or (ii) there shall have been made a final distribution in respect of the Stock in connection with any liquidation, dissolution or winding
up of the Company and such distribution shall have been distributed to the holders of Depositary Receipts pursuant to Section 4.1 or 4.2, as applicable. 
  
 Upon the termination of this Deposit Agreement, the Company shall be discharged from all obligations under this Deposit Agreement except for its
obligations to the Depositary, the Registrar and any Depositary’s Agent under Sections 5.6 and 5.7. 
  

 17 

 ARTICLE VII 
  
 Miscellaneous 
  
 SECTION 7.1 Counterparts. This Deposit Agreement may be executed in any number of counterparts, and by each of the parties hereto on separate
counterparts, each of which counterparts, when so executed and delivered, shall be deemed an original, but all such counterparts taken together shall constitute one and the same instrument. 
  
 SECTION 7.2 Exclusive Benefit of Parties. This Deposit Agreement is
for the exclusive benefit of the parties hereto, and their respective successors hereunder, and shall not be deemed to give any legal or equitable right, remedy or claim to any other person whatsoever. 
  
 SECTION 7.3 Invalidity of Provisions. In case any one or more of the
provisions contained in this Deposit Agreement or in the Receipts should be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein or therein shall in no way
be affected, prejudiced or disturbed thereby. 
  
 SECTION 7.4
Notices. Any and all notices to be given to the Company hereunder or under the Receipts shall be in writing and shall be deemed to have been duly given if personally delivered or sent by mail, or by telegram or facsimile transmission
confirmed by letter, addressed to the Company at: 
  
 Public
Storage, Inc. 
 701 Western Avenue, 2nd Floor 
 Glendale, California 91201-2397 
 Facsimile No.: (818) 244-9267 
  
 or at any other address of which the Company shall have notified the Depositary in writing.

  
 Any and all notices to be given to the Depositary hereunder or
under the Receipts shall be in writing and shall be deemed to have been duly given if personally delivered or sent by mail or by telegram or facsimile transmission confirmed by letter, addressed to the Depositary at the Depositary’s Office, at:

  
 EquiServe Trust Company, N. A. 
 150 Royall Street 
 Mail Stop: 45-02-62

 Canton, MA 02021 
 Attention:
Client Administration 
 Facsimile No.: (617) 575-2549 
  
 or at any other address of which the Depositary shall have notified the Company in writing. 
  

 18 

 Any and all notices to be given to any record holder of a Receipt hereunder or under the Receipts shall
be in writing and shall be deemed to have been duly given if personally delivered or sent by mail, or by telegram or facsimile transmission confirmed by letter, addressed to such record holder at the address of such record holder as it appears on
the books of the Depositary, or if such holder shall have filed with the Depositary a written request that notices intended for such holder be mailed to some other address, at the address designated in such request. 
  
 Delivery of a notice sent by mail or by telegram or facsimile transmission
shall be deemed to be effected at the time when a duly addressed letter containing the same (or a confirmation thereof in the case of a telegram or facsimile transmission) is deposited for mailing by first class mail, postage prepaid. The Depositary
or the Company may, however, act upon any telegram or facsimile transmission received by it from the other or from any holder of a Receipt, notwithstanding that such telegram or facsimile transmission shall not subsequently be confirmed by letter or
as aforesaid. 
  
 SECTION 7.5 Appointment of Registrar. The
Company hereby also appoints the Depositary as Registrar in respect of the Receipts and the Depositary hereby accepts such appointments. 
  
 SECTION 7.6 Holders of Receipts Are Parties. The holders of Receipts from time to time shall be parties to this Deposit Agreement and shall be
bound by all of the terms and conditions hereof and of the Receipts by acceptance of delivery thereof. 
  
 SECTION 7.7 Governing Law. THIS DEPOSIT AGREEMENT AND THE RECEIPTS AND ALL RIGHTS HEREUNDER AND THEREUNDER AND PROVISIONS HEREOF AND THEREOF SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS APPLICABLE TO CONTRACTS MADE IN AND TO BE PERFORMED IN THE STATE OF NEW YORK, INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 
  
 SECTION 7.8 Inspection of Deposit Agreement. Copies of this Deposit
Agreement shall be filed with the Depositary and the Depositary’s Agent and shall be open to inspection during business hours at the Depositary’s Office or respective offices of the Depositary’s Agent, if any, by any holder of a
Receipt. 
  
 SECTION 7.9 Headings. The headings of articles
and sections in this Deposit Agreement and in the form of the Receipt set forth in Exhibit A hereto have been inserted for convenience only and are not to be regarded as a part of this Deposit Agreement or the Receipts or to have any bearing upon
the meaning or interpretation of any provision contained herein or in the Receipts. 
  

 19 

 IN WITNESS WHEREOF, the Company and the Depositary have duly executed this Agreement as of the day and
year first above set forth, and all holders of Receipts shall become parties hereto by and upon acceptance by them of delivery of Receipts issued in accordance with the terms hereof. 
  

									
	 	 	 	 	PUBLIC STORAGE, INC.
			
	 Attested by:
	 	 	 	 
			
	 	 	 	 	 
	 Name:
	 	John Reyes	 	 	 	 Name:
	 	David Goldberg
	 Title:
	 	Senior Vice President, Chief Financial	 	 	 	 Title:
	 	Vice President and Senior Counsel
	 	 	Officer and Assistant Secretary	 	 	 	 	 	 

  

									
	 Attested by:
	 	 	 	EQUISERVE TRUST COMPANY, N. A.
			
	 	 	 	 	 
	 Name:
	 	Margaret Dunn	 	 	 	 Name:
	 	Tyler Haynes
	 Title:
	 	Account Manager	 	 	 	 Title:
	 	Managing Director

  

 ANNEX A 
  
 TEMPORARY RECEIPT EXCHANGEABLE FOR DEFINITIVE 
  
 ENGRAVED RECEIPT WHEN READY FOR DELIVERY 
  
 The Shares represented by this Depositary Receipt are subject to restrictions on ownership and transfer for the purpose of this Corporation’s maintenance of its
status as a Real Estate Investment Trust under the Internal Revenue Code of 1986, as amended. Except as set forth in this Corporation’s Articles of Incorporation or Bylaws, no person may Beneficially Own (i) more than 2.0% of the outstanding
shares of Common Stock of this Corporation, or (ii) more than 9.9% of the outstanding shares of any series of Preferred Stock or Equity Stock of this Corporation, with certain further restrictions and exceptions as are set forth in this
Corporation’s Articles of Incorporation or Bylaws. Any Person who attempts to own or Beneficially Own Shares in excess of the above limitations must immediately notify this Corporation. All capitalized terms in this legend have the meanings
defined in this Corporation’s Articles of Incorporation or Bylaws. If any of the restrictions on transfer or ownership set forth in the Articles of Incorporation or Bylaws are violated, the Shares represented hereby will be automatically
transferred to the Trustee of a Trust for the benefit of a Charitable Beneficiary pursuant to the terms of the Articles of Incorporation or Bylaws. In addition, attempted transfers of Shares in violation of the limitations described above (as
modified or expanded upon in this Corporation’s Articles of Incorporation or Bylaws), may be void ab initio. This Corporation will furnish to the holder hereof, upon request and without charge, a complete written statement of the
terms and conditions of these restrictions. Requests for such documents may be directed to the corporate secretary. 
  

					
	 	 	 DEPOSITARY SHARES

		
	 	 	 THIS DEPOSITARY RECEIPT

	 	 	 IS TRANSFERABLE IN BOSTON,

	 	 	 MA OR NEW YORK, NY

  

					
	 	 	 	 	 CUSIP 74460D 47 1

			
	 	 	 	 	 SEE REVERSE FOR
 CERTAIN DEFINITIONS

  
 DEPOSITARY RECEIPT FOR DEPOSITARY

 SHARES EACH REPRESENTING 1/1,000th OF A 
 SHARE OF 7.125% CUMULATIVE PREFERRED STOCK, 
 SERIES B 
             OF 
 PUBLIC STORAGE, INC. 
 INCORPORATED UNDER THE 
 LAWS OF THE STATE OF CALIFORNIA 
  

 A-1 

 EQUISERVE TRUST COMPANY, N. A., as Depositary (the “Depositary”), hereby certifies that

  
 is the registered owner of
                             DEPOSITARY SHARES 
  
 (“Depositary Shares”), each Depositary Share representing a 1/1,000 interest in one
share of 7.125% Cumulative Preferred Stock, Series B (the “Stock”), of Public Storage, Inc., a California corporation (the “Corporation”), on deposit with the Depositary, subject to the terms and entitled to the benefits of the
Deposit Agreement dated as of June 30, 2004 (the “Deposit Agreement”), between the Corporation and the Depositary. By accepting this Depositary Receipt, the holder hereof becomes a party to and agrees to be bound by all the terms and
conditions of the Deposit Agreement. This Depositary Receipt shall not be valid or obligatory for any purpose or be entitled to any benefits under the Deposit Agreement unless it shall have been executed by the Depositary by the manual and/or
facsimile signature of a duly authorized officer or, if executed in facsimile by the Depositary, countersigned by a Registrar in respect of the Depositary Receipts by a duly authorized officer. 
  
 The Corporation is authorized to issue Common Stock, one or more series of Preferred Stock,
one or more series of Equity Stock and Depositary Shares. The Corporation will furnish without charge to each receiptholder, who so requests in writing, a statement of the rights, preferences, privileges and restrictions granted to or imposed upon
the respective classes of shares and upon the holders thereof, a copy of the Corporation’s Bylaws and a copy of the Deposit Agreement. Any such request shall be made to the Corporation at the principal office of the Corporation at 701 Western
Avenue, Glendale, California 91201-2397, Attention: Secretary. 
  
 This Depositary
Receipt is continued on the reverse hereof and the additional provisions set forth therein (including, without limitation, those relating to redemption) for all purposes have the same effect as if set forth at this place. 
  
 Dated: 
  

			
	 Countersigned

	
	EQUISERVE TRUST COMPANY, N. A.
	
	 Depositary, Transfer Agent and
 Registrar

		
	By:	 	 
	 	 	Authorized Officer

  

 A-2 

 THE SHARES REPRESENTED BY THIS DEPOSITARY RECEIPT ARE SUBJECT TO THE PROVISIONS OF THE ARTICLES AND
BYLAWS, INCLUDING BUT NOT LIMITED TO (1) SECTION (C) OF THE CERTIFICATE OF DETERMINATION RELATING TO THE STOCK, WHICH CONFERS UPON THE BOARD THE RIGHT, ON OR AFTER JUNE 30, 2009, TO CALL FOR REDEMPTION THE STOCK, (2) ARTICLE XI, SECTION 7 OF THE
BYLAWS, WHICH CONFERS UPON THE BOARD THE RIGHT TO REFUSE TO REGISTER THE TRANSFER OF AND/OR TO CALL FOR REDEMPTION THE SHARES REPRESENTED BY THIS CERTIFICATE IF NECESSARY IN ITS OPINION TO MAINTAIN THE CORPORATION’S QUALIFICATION AS A
“REAL ESTATE INVESTMENT TRUST” UNDER THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, AND (3) THE PROVISIONS OF THE ARTICLES AND BYLAWS, WHICH SET FORTH OWNERSHIP LIMITATION PROVISIONS DESIGNED TO MAINTAIN SUCH QUALIFICATION. 
  
 1. The Deposit Agreement. Depositary Receipts, of which this
Depositary Receipt is one, are made available upon the terms and conditions set forth in the Deposit Agreement, dated as of June 30, 2004 (the “Deposit Agreement”), among the Company, the Depositary and all holders from time to time of
Depositary Receipts. The Deposit Agreement (copies of which are on file at the principal office maintained by the Depositary which at the time of the execution of the Deposit Agreement is located at 150 Royall Street, Mail Stop: 45-02-62, Canton, MA
02021 (the “Depositary’s Office”) and at the office of any agent of the Depositary) sets forth the rights of holders of Depositary Receipts and the rights and duties of the Depositary. The statements made on the face and the reverse
of this Depositary Receipt are summaries of certain provisions of the Deposit Agreement and are subject to the detailed provisions thereof, to which reference is hereby made. In the event of any conflict between the provisions of this Depositary
Receipt and the provisions of the Deposit Agreement, the provisions of the Deposit Agreement will govern. 
  
 2. Definitions. Unless otherwise expressly herein provided, all defined terms used in this summary of the Deposit Agreement shall have the meanings
ascribed thereto in the Deposit Agreement. 
  
 3. Redemption of
Stock. Whenever the Company shall elect to redeem shares of Stock, it shall (unless otherwise agreed in writing with the Depositary) give the Depositary not less than 60 days’ notice of the date of such proposed redemption and of the number
of such shares of Stock held by the Depositary to be so redeemed and the applicable redemption price. The Depositary shall mail, first-class postage prepaid, notice of the redemption of Stock and the proposed simultaneous redemption of Depositary
Shares representing the Stock to be redeemed, not less than 30 and not more than 60 days prior to the date fixed for redemption of such Stock and Depositary Shares, to the record holders of the Depositary Receipts evidencing the Depositary Shares to
be so redeemed, at the addresses of such holders as the same appear on the records of the Depositary. Any such notice shall also be published in the same manner as notices of redemption of the Stock are required to be published by the Company. On
the date of such redemption, the Depositary shall redeem the number of Depositary Shares representing such redeemed Stock; provided, that the Company shall then have paid or caused to be paid in full to the Depositary the redemption price of
the Stock to be redeemed, plus any accrued and unpaid dividends payable with respect thereto to the date of any such redemption. In case fewer than all the outstanding Depositary Shares are to be redeemed, the Depositary Shares to be redeemed shall
be determined pro rata or by lot in a manner determined by the Board of Directors. Notice having been mailed as aforesaid, from and after the Redemption Date (unless the Company shall have failed to provide the funds 

  

 A-3 

 
necessary to redeem the shares of Stock evidenced by the Depositary Shares called for redemption), dividends on the shares of Stock so called for redemption
shall cease to accrue, the Depositary Shares called for redemption shall be deemed no longer to be outstanding and all rights of the holders of Depositary Receipts evidencing such Depositary Shares (except the right to receive the redemption price)
shall, to the extent of such Depositary Shares, cease and terminate. Upon surrender in accordance with said notice of the Depositary Receipts evidencing such Depositary Shares (properly endorsed or assigned for transfer, if the Depositary or
applicable law shall so require), such Depositary Shares shall be redeemed at a redemption price per Depositary Share equal to the same fraction of the redemption price per share paid with respect to the shares of Stock as the fraction each
Depositary Share represents of a share of Stock plus the same fraction of all money and other property, if any, represented by such Depositary Shares, including all amounts paid by the Company in respect of dividends which on the Redemption Date
have accumulated on the shares of Stock to be so redeemed and have not theretofore been paid. The foregoing is subject further to the terms and conditions of the Certificate of Determination. If fewer than all of the Depositary Shares evidenced by
this Depositary Receipt are called for redemption, the Depositary will deliver to the holder of this Depositary Receipt upon its surrender to the Depositary, together with the redemption payment, a new Depositary Receipt evidencing the Depositary
Shares evidenced by such prior Depositary Receipt and not called for redemption. 
  
 4. Surrender of Depositary Receipts and Withdrawal of Stock. Upon surrender of this Depositary Receipt to the Depositary at the Depositary’s Office or at such other offices as the Depositary may designate,
and subject to the provisions of the Deposit Agreement, the holder hereof is entitled to withdraw, and to obtain delivery, without unreasonable delay, to or upon the order of such holder, any or all of the Stock (but only in whole shares of Stock)
and all money and other property, if any, at the time represented by the Depositary Shares evidenced by this Depositary Receipt; provided, however, that, in the event this Depositary Receipt shall evidence a number of Depositary Shares
in excess of the number of Depositary Shares representing the whole number of shares of Stock to be withdrawn, the Depositary shall, in addition to such whole number of shares of Stock and such money and other property, if any, to be withdrawn,
deliver, to or upon the order of such holder, a new Depositary Receipt or Depositary Receipts evidencing such excess number of whole Depositary Shares. 
  
 5. Transfers, Split-ups, Combinations. Subject to the Deposit Agreement, this Depositary Receipt is transferable on the books of the Depositary
upon surrender of this Depositary Receipt to the Depositary, properly endorsed or accompanied by a properly executed instrument of transfer, and upon such transfer the Depositary shall sign and deliver a Depositary Receipt or Depositary Receipts to
or upon the order of the person entitled thereto, all as provided in and subject to the Deposit Agreement. This Depositary Receipt may be split into other Depositary Receipts or combined with other Depositary Receipts into one Depositary Receipt
evidencing the same aggregate number of Depositary Shares evidenced by the Depositary Receipt or Depositary Receipts surrendered; provided, however, that the Depositary shall not issue any Depositary Receipt evidencing a fractional Depositary
Share. 
  
 6. Conditions to Signing and Delivery,
Transfer, etc., of Depositary Receipts. Prior to the execution and delivery, registration of transfer, split-up, combination, surrender or exchange of this Depositary Receipt, the Depositary, any 

  

 A-4 

 
of the Depositary’s Agents or the Company may require any or all of the following: (i) payment to it of a sum sufficient for the payment (or, in the
event that the Depositary or the Company shall have made such payment, the reimbursement to it) of any tax or other governmental charge with respect thereto; (ii) production of proof satisfactory to it as to the identity and genuineness of any
signature; and (iii) compliance with such reasonable regulations, if any, as the Depositary or the Company may establish not inconsistent with the Deposit Agreement. 
  
 7. Suspension of Delivery, Transfer, etc. The deposit of Stock may be refused, the delivery of this Depositary
Receipt against Stock may be suspended, the registration of transfer of Depositary Receipts may be refused and the registration of transfer, surrender or exchange of this Depositary Receipt may be suspended (i) during any period when the register of
stockholders of the Company is closed or (ii) if any such action is deemed necessary or advisable by the Depositary, any of the Depositary’s Agents or the Company at any time or from time to time because of any requirement of law or of any
government or governmental body or commission, or under any provision of the Deposit Agreement. 
  
 8. Amendment. The form of the Depositary Receipts and any provision of the Deposit Agreement may at any time and from time to time be amended by
agreement between the Company and the Depositary in any respect that they may deem necessary or desirable; provided, however, that no such amendment (other than any changes in the fees of any Depositary or Registrar which shall go into effect
not sooner than three months after Notice thereof to the holders of the Depositary Receipts) which shall materially adversely alter the rights of holders of Depositary Receipts shall be effective unless such amendment shall have been approved by at
least a majority of the Depositary Shares then outstanding. The holder of this Depositary Receipt at the time any such amendment becomes effective shall be deemed, by continuing to hold this Depositary Receipt, to be bound by the Deposit Agreement
as amended thereby. In no event shall any amendment impair the right of the owner of the Depositary Shares evidenced by this Depositary Receipt to surrender this Depositary Receipt with instructions to the Depositary to deliver to the holder the
Stock and all money and other property, if any, represented thereby, except in order to comply with mandatory provisions of applicable law. 
  
 9. Charges and Expenses. The Company will pay all transfer and other taxes and governmental charges arising solely from the existence of the
depositary arrangement, except such charges as are expressly provided in the Deposit Agreement to be at the expense of holders of Depositary Receipts. 
  
 10. Title to Depositary Receipts. Title to this Depositary Receipt, when properly endorsed or accompanied by a properly executed instrument of
transfer, is transferable by delivery with the same effect as in the case of a negotiable instrument; provided, however, that the Depositary may, notwithstanding any notice to the contrary, treat the record holder hereof at such time as the
absolute owner hereof for the purpose of determining the person entitled to distribution of dividends or other distributions or to any notice provided for in the Deposit Agreement and for all other purposes. 
  
 11. Dividends and Distributions. Whenever the Depositary shall receive
any cash dividend or other cash distribution on the Stock, the Depositary shall, subject to the provisions of the Deposit Agreement, distribute to record holders of Depositary Receipts such amounts of such sums as are, as nearly as 

  

 A-5 

 
practicable, in proportion to the respective numbers of Depositary Shares evidenced by the Depositary Receipts held by such holders; provided,
however, that in case the Company or the Depositary shall be required by law to withhold and does withhold from any cash dividend or other cash distribution in respect of the Stock an amount on account of taxes or as otherwise required by law,
regulation or court process, the amount made available for distribution or distributed in respect of Depositary Shares shall be reduced accordingly. In the event that the calculation of any such cash dividend or other cash distribution to be paid to
any record holder on the aggregate number of Depositary Receipts held by such holder results in an amount which is a fraction of a cent, the amount the Depositary shall distribute to such record holder shall be rounded to the next highest whole
cent; and upon request of the Depositary, the Company shall pay the additional amount to the Depositary for distribution. 
  
 12. Subscription Rights, Preferences or Privileges. If the Company shall at any time offer or cause to be offered to the persons in whose name
Stock is registered on the books of the Company any rights, preferences or privileges to subscribe for or to purchase any securities or any rights, preferences or privileges of any other nature, such rights, preferences or privileges shall in each
such instance, subject to the provisions of the Deposit Agreement, be made available by the Depositary to the record holders of Depositary Receipts in such manner as the Depositary shall determine. 
  
 13. Notice of Dividends, Fixing of Record Date. Whenever (i) any cash
dividend or other cash distribution shall become payable, or any distribution other than cash shall be made, or any rights, preferences or privileges shall at any time be offered, with respect to the Stock, or (ii) the Depositary shall receive
notice of any meeting at which holders of Stock are entitled to vote or of which holders of Stock are entitled to notice or whenever the Depositary and the Company shall decide it is appropriate, the Depositary shall in each such instance fix a
record date (which shall be the same date as the record date fixed by the Company with respect to the Stock) for the determination of the holders of Depositary Receipts (x) who shall be entitled to receive such dividend, distribution, rights,
preferences or privileges or the net proceeds of the sale thereof, or (y) who shall be entitled to give instructions for the exercise of voting rights at any such meeting or to receive notice of such meeting or for any other appropriate reasons.

  
 14. Voting Rights. Upon receipt of notice of any
meeting at which the holders of Stock are entitled to vote, the Depositary shall, as soon as practicable thereafter, mail to the record holders of Depositary Receipts a notice, which shall contain (i) such information as is contained in such notice
of meeting, (ii) a statement that the holders may, subject to any applicable restrictions, instruct the Depositary as to the exercise of the voting rights pertaining to the Stock represented by their respective Depositary Shares, and (iii) a brief
statement as to the manner in which such instructions may be given. Upon the written request of a holder of this Depositary Receipt on such record date the Depositary shall use its best efforts to vote or cause to be voted the Stock represented by
the Depositary Shares evidenced by this Depositary Receipt in accordance with the instructions set forth in such request. The Company hereby agrees to take all action that may be deemed necessary by the Depositary in order to enable the Depositary
to vote such Stock or cause such Stock to be voted. In the absence of specific instructions from the holder of this Depositary Receipt, the Depositary will abstain from voting to 

  

 A-6 

 
the extent of the Stock represented by the Depositary Shares evidenced by this Depositary Receipt. 
  
 15. Reports, Inspection of Transfer Books. The Depositary shall
transmit to the record holders of Depositary Receipts copies of all reports and communications received from the Company that are received by the Depositary as the holder of Stock. The Depositary shall keep books at the Corporate Office for the
registration and transfer of Depositary Receipts, which books at all reasonable times will be open for inspection by the record holders of Depositary Receipts; provided that any such holder requesting to exercise such right shall certify to
the Depositary that such inspection shall be for a proper purpose reasonably related to such person’s interest as an owner of Depositary Shares. 
  
 16. Liability of the Depositary, the Depositary’s Agents, the Registrar and the Company. Neither the Depositary nor any Depositary’s
Agent nor the Registrar nor the Company shall incur any liability to any holder of this Depositary Receipt, if by reason of any provision of any present or future law or regulation thereunder of any governmental authority or, in the case of the
Depositary, the Registrar or any Depositary’s Agent, by reason of any provision present or future, of the Articles of Incorporation or by reason of any act of God or war or other circumstances beyond the control of the relevant party, the
Depositary, any Depositary’s Agent, the Registrar or the Company shall be prevented or forbidden from doing or performing any act or thing that the terms of the Deposit Agreement provide shall be done or performed; nor shall the Depositary, any
Depositary’s Agent, the Registrar or the Company incur any liability to any holder of this Depositary Receipt (i) by reason of any nonperformance or delay, caused as aforesaid, in the performance of any act or thing that the terms of the
Deposit Agreement provide shall or may be done or performed, or (ii) by reason of any exercise of, or failure to exercise, any discretion provided for in the Deposit Agreement except if such exercise or failure to exercise discretion is caused by
its gross negligence or willful misconduct. 
  
 17. Obligations
of the Depositary, the Depositary’s Agents, the Registrar and the Company. Neither the Depositary nor any Depositary’s Agent nor the Registrar nor the Company assumes any obligation or shall be subject to any liability under the
Deposit Agreement or this Depositary Receipt to the holder hereof or other persons, other than for its gross negligence, willful misconduct or bad faith. 
  
 Neither the Depositary nor any Depositary’s Agent nor the Registrar nor the Company shall be under any obligation to appear in, prosecute or defend
any action, suit or other proceeding with respect to Stock, Depositary Shares or Depositary Receipts or Common Stock that in its opinion may involve it in expense or liability, unless indemnity satisfactory to it against all expense and liability be
furnished as often as may be required. 
  
 Neither the Depositary
nor any Depositary’s Agent nor the Registrar nor the Company will be liable for any action or failure to act by it in reliance upon the advice of or information from legal counsel, accountants, any person presenting Stock for deposit, any
holder of this Depositary Receipt or any other person believed by it in good faith to be competent to give such advice or information. 
  

 A-7 

 18. Termination of Deposit Agreement. Whenever so directed by the Company upon not less than 60
days’ prior written notice, the Depositary will terminate the Deposit Agreement by mailing notice of such termination to the record holders of all Depositary Receipts then outstanding at least 30 days after the date of such notice. Upon the
termination of the Deposit Agreement, the Company shall be discharged to all obligations thereunder except for its obligations to the Depositary, any Depositary’s Agent and any Registrar under Sections 5.6 and 5.7 of the Deposit Agreement.

  
 19. Governing Law. The Deposit Agreement and this
Depositary Receipt and all rights thereunder and hereunder and provisions thereof and hereof shall be governed by, and construed in accordance with, the law of the State of New York, including without limitation Section 5-1401 of the New York
General Obligations Law. 
  

 A-8 

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

					
	 TEN COM - as tenants in common
 TEN ENT - as tenants by the entireties
	  	 UNIF GIFT MIN ACT
	  	 -             Custodian
            
  (Cust)
                    (Minor)

	 JT TEN - as joint tenants with right
       of survivorship and not as
       tenants in common
	  	 	  	  under Uniform Gifts to Minors
  Act
                    
             (State)

			
	 	  	 UNIF TRF MIN ACT
	  	 -             Custodian (until age
        )
  (Cust)
  _______ under Uniform Transfers
  (Minor)
 to
Minors Act                     
                             (State)

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

 A-9 

 For Value Received,
                     hereby sell, assign and transfer unto 
  

	
	 PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

	
	  
	  
	  

  

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

                     Depositary Shares represented by the
within Depositary Receipt, and do hereby irrevocably constitute and appoint                      Attorney to transfer the said Depositary
Shares on the books of the within named Depositary with full power of substitution in the premises. 
  

									
	 Dated  
	 	 	 	 	 	 Signed

				
	 	 	 	 	 	 	

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

  

			
	 SIGNATURE(S) GUARANTEED

		
	By	 	 
	 	 	THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE
GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.

  

 A-10Lease dated April 1, 2004 for the principal offices of Peak Plastic & Metal Prod

 EXHIBIT 10.20 
  
 THIS AGREEMENT made 1st April 2004 
  

					
	BETWEEN	  	(1)	  	CDW BUILDING LIMITED a company limited by shares incorporated under the laws of the Cayman Islands with its principal place of business in Hong Kong at Suite 3701, 37th Floor, Jardine House, 1 Connaught Place, Central, Hong Kong (“the Landlord” which expression shall where the context
permits include the reversioner expectant on the determination of the Term whether or not immediately); AND
			
	 	  	(2)	  	PEAK PLASTIC & METAL PRODUCTS (INTERNATIONAL) LIMITED 

 whose registered office is situate at Units E and F, 19th Floor, CDW Building, 388
Castle Peak Road, Tsuen Wan, New Territories, Hong Kong (“the Tenant” which expression shall where the context permits include its permitted assigns and persons deriving title under or through it).

  
 WITNESSETH as follows:- 
  

							
	1.	  	Definitions and Interpretation
			
	 	  	(1)	  	In this Agreement, unless the context otherwise requires, the terms defined in this Clause shall have the meanings respectively ascribed to them:-
				
	 	  	 	  	(a)	  	“Basic Rent” means the calendar monthly rent of Hong Kong Dollars Sixty Six Thousand Two Hundred and Forty only (HK$66,240.00);
				
	 	  	 	  	(b)	  	“Building” means CDW Building, 388 Castle Peak Road, Tsuen Wan erected on Section A of Lot No.1221 in Demarcation District No. 453;
				
	 	  	 	  	(c)	  	“Common Parts” means the pedestrian ways forecourts car parks ramps driveways loading and unloading bays areas and platforms landscaped areas entrances halls landings lifts lift-shafts
lift lobbies staircases passages lavatories and other areas which are from time to time during the Term provided for the common use and enjoyment by the tenants and occupiers of the Building and all persons expressly or by implication authorised by
them;
				
	 	  	 	  	(d)	  	“Cooling Water Charge” means all charges payable from time to time for the supply of cooling water for air conditioning purposes as shall be determined by the Landlord and/or the
Manager from time to time;

							
	 	 	 	 	(e)	  	“Deed of Mutual Covenant” means any Deed of Mutual Covenant or deed or document of a similar nature affecting the Building from time to time;
				
	 	 	 	 	(f)	  	“Deposit” means an amount equal to three times the monthly Basic Rent, the quarterly Government rates and Government rent payable from time to time hereunder which shall initially be
Hong Kong Dollars Two Hundred Fourteen Thousand Six Hundred and Seventeen only (HK$214,617.00);
				
	 	 	 	 	(g)	  	“Equipment” means the plant machinery apparatus equipment devices installations lifts boilers air-conditioning system fire extinguishing equipment lighting container hoist water tanks
pumps transformers hoppers meters pipes sewers drains mains ducts conduits gutters watercourses wires cables channels flues and all other electronic electrical gas mechanical water supply drainage telephone security computer building management or
other service facilities now or at any time in above below adjacent to or in the vicinity of and serving and/or benefiting the Building;”
				
	 	 	 	 	(h)	  	“Interest Rate” means 1.5% per month calculated on a daily basis and compounded at monthly intervals;
				
	 	 	 	 	(i)	  	“Liability” and “Liabilities” means any penalty fine damage damages losses costs expenses actions demands proceedings claims and liabilities;
				
	 	 	 	 	(j)	  	“Manager” means the manager of the Building from time to time;
				
	 	 	 	 	(k)	  	“Permitted Use” means Industrial use only;
				
	 	 	 	 	(l)	  	“Plan” means the plan annexed hereto;
				
	 	 	 	 	(m)	  	“Premises” means Units E and F on the Nineteenth Floor of the Building as more particularly defined in the First Schedule;
				
	 	 	 	 	(n)	  	“Rents” means the Basic Rent, the Service Charge, the Cooling Water Charge and all monies hereunder stipulated to be payable or recoverable as rent;
				
	 	 	 	 	(o)	  	“Service Charge” means all service, repair, maintenance and management charges (including remuneration of the Manager) payable from time to time by the owner or occupier of the
Premises as shall be determined by the Landlord or the Manager;
				
	 	 	 	 	(p)	  	“Term” means Three (3) years from and including 15th January 2004 and expiring on 14th January 2007.

  

 2 

							
	 	 	(2)	  	In this Agreement:-
				
	 	 	 	  	(a)	 	if the context permits or requires words importing the singular number shall include the plural number and vice-versa and words importing one gender shall include all other
genders;
				
	 	 	 	  	(b)	 	the headings are for convenience only and shall not be referred to in the construction or interpretation of this Agreement;
				
	 	 	 	  	(c)	 	references to any specific ordinance shall be deemed to refer to any modification amendment or re-enactment thereof and any bye-laws rules regulations or orders made thereunder for the time
being in force and any general reference to “Ordinance”, “Ordinances” or “legislation” includes any bye laws rules regulations or orders made under such Ordinance Ordinances or legislation and any other orders
regulations bye-laws and rules of any Governmental or other competent authority or Court of competent jurisdiction;
				
	 	 	 	  	(d)	 	references to “the Premises” “the Building” and “the Equipment” shall in the absence of any provision to the contrary include any part thereof;
				
	 	 	 	  	(e)	 	any agreement by the Tenant not to do an act or thing shall be deemed to include an obligation not to permit or suffer such act or thing to be done and to use its best endeavours to prevent such
act or thing being done by a third party;
				
	 	 	 	  	(f)	 	any provisions referring to the consent or approval of the Landlord shall be construed as also requiring the consent or approval of any mortgagee of the Premises and if applicable of the Manager
but nothing in this Agreement shall be construed as implying that any obligation is imposed upon any mortgagee of the Premises or the Manager or Tenant not unreasonably to refuse such consent or approval;
				
	 	 	 	  	(g)	 	references to “consent” or “approval” or words to similar effect mean (as the case may be) a written and signed consent or approval;
				
	 	 	 	  	(h)	 	reference to any Clause or Schedule without further designation shall be construed as a reference to the Clause of or Schedule to this Agreement so numbered;
				
	 	 	 	  	(i)	 	where the Landlord or the Tenant for the time being are two or more persons obligations expressed or implied to be made by or with such party are deemed to be made by or with such persons
jointly and severally.

  

 3 

 Demise 
  

			
	2.	  	In consideration of the Rents hereby reserved and the Tenant’s agreements and obligations hereinafter contained the Landlord LETS and the Tenant TAKES the Premises TOGETHER with (so far as
the same are reasonably necessary for the proper enjoyment of the Premises and so far as the Landlord has title to grant the same) the right in common with the Landlord and all others having the like right to:-
		
	(a)	  	the free passage and running (subject to temporary interruption for repair alteration or replacement) of water gas electricity sewage and all other services and supplies as are now or are
hereafter to be used from and to the Premises through the pipes sewers drains watercourses wires cables and other conduits now or hereafter serving the Premises and situated in on under or over the Building;
		
	(b)	  	use the Common Parts (subject to temporary interruption for repair alteration or replacement); and
		
	(c)	  	support and protection from other parts of the Building as is now enjoyed by the Premises

  
 EXCEPT AND RESERVING unto the Landlord
and all other persons authorised by the Landlord:- 
  

					
	(a)	  	the free and uninterrupted passage and running of water gas electricity and sewage and all other services and supplies as are now or hereafter to be used from and to any other
premises in the Building through the Premises;
		
	(b)	  	the right to use the Equipment within the Premises not exclusively serving the same;
		
	(c)	  	the right with or without workmen tools and appliances at all reasonable times upon giving the Tenant reasonable prior notice (except in cases of emergency when no notice shall be
required) to enter (or in cases of emergency to break and enter) the Premises to:-
			
	 	  	(i)	  	inspect rebuild repair renew maintain cleanse paint or decorate the Building and the Equipment and for such purposes to erect scaffolding or to place ladders upon the Premises;
			
	 	  	(ii)	  	construct in on under or over the Premises at any time during the Term any Equipment for the benefit of the Building;
			
	 	  	(iii)	  	carry out work or do anything whatsoever comprised within the Landlord’s obligations in this Agreement whether or not the Tenant is liable to make a contribution;

  

 4 

					
	 	 	(iv)	  	take schedules or inventories of fixtures and other items to be yielded up on the determination of the Term;
			
	 	 	(v)	  	exercise any of the rights granted to the Landlord by this Agreement;
			
	 	 	(vi)	  	extinguish any fire or salvage property or otherwise deal with any emergency;
			
	 	 	(vii)	  	a right of support and protection from the Premises as is now enjoyed by other parts of the Building

  
 TO HOLD the same unto the Tenant for
the Term SUBJECT TO all rights easements privileges restrictions covenants and stipulations of whatever nature affecting the Premises including without limitation the matters contained or referred to in the Deed of Mutual Covenant YIELDING AND
PAYING therefor the Rents. 
  
 TENANT’S AGREEMENTS 
  

			
	3.	  	The Tenant AGREES with the Landlord as follows:-

  
 Expenses and Outgoings

  

							
	(1)	  	(a)	  	To pay the Basic Rent, the Service Charge, the Cooling Water Charge and any increase therein in Hong Kong currency on the first day of each and every calendar month during the Term
in advance without any deduction therefrom and the Tenant hereby expressly agrees that it shall not be entitled to any set-off (whether legal or equitable) against the Basic Rent, the Service Charge and the Cooling Water Charge hereby reserved and
payable by the Tenant to the intent that the same shall be paid in full to the Landlord on the day and in the manner herein before provided the first of such payments shall be made on the date hereof;
			
	 	  	(b)	  	The Landlord or the Manager shall be entitled at any time and from time to time by notice in writing to the Tenant to increase the amount of Service Charge to reflect increased
expenses incurred, payable at the date hereof and thereafter the Service Charge payable shall be the increased amount in lieu of the amount payable at the date hereof. There shall be no restriction on the number of occasions upon which the Landlord
or the Manager may call for an increase.
				
	 	  	(c)	  	(i)	  	To pay and discharge by way of further rent all Government rent rates taxes assessments duties charges impositions and outgoings of an annual or recurring nature now or hereafter to be assessed
imposed or charged by the Government of Hong Kong or other lawful authority upon the Premises or upon the owner or occupier thereof (Property Tax only excepted);

  

 5 

							
	 	 	 	  	(ii)	  	In the event of the Premises not having been assessed to rates at the date of commencement of the Term to pay to the Landlord quarterly in advance on the first days of January April July and
October for the continuance of the Term (the first payment in respect of the period from the commencement of the Term until the next said quarter day to be made on the date hereof) such percentage (as shall from time to time be determined by the
Legislative Council in accordance with Section 18 of the Rating Ordinance Cap.116 as the percentage of the rateable value on which rates shall be computed) of the rent for the corresponding quarter as shall be required by the Landlord as a deposit
by way of security for the due payment of rates and any over-payment or under-payment by the Tenant shall be adjusted on receipt of an assessment from the Government;
			
	 	 	(d)	  	To pay to the suppliers and indemnify the Landlord against all deposits and charges in respect of water electricity gas and telephones consumed or used at or in relation to the
Premises as may be shown by the separate meter or meters installed in the Premises or by accounts rendered to the Tenant such sums to be recoverable as rent;
			
	 	 	(e)	  	To produce to the Landlord on written demand made by the Landlord receipts for Government rent rates water telephone gas and electricity charges paid by the Tenant;
			
	 	 	(f)	  	If and so often as any Rents (whether formally demanded or not) or any other money due from the Tenant hereunder shall be unpaid after becoming due to pay on demand by way of further
rent with interest from the date of demand on such unpaid Rents and other moneys (as the case may be) until payment at the Interest Rate both before and after judgment and for the avoidance of doubt it is declared that this provision shall not
entitle the Tenant to withhold or delay any payment of the Rents or any other sum due hereunder after the date upon which it falls due or in any way prejudice affect or derogate from the rights of the Landlord in relation to the said
non-payment.

  
 Landlord’s Expenses

  

					
	(2)	  	To pay to the Landlord on an indemnity basis all costs fees charges disbursements and expenses (including without prejudice to the generality of the foregoing those payable to
counsel solicitors surveyors architects engineers and bailiffs) incurred or payable by the Landlord in relation or incidental to:-
			
	 	  	(a)	  	the preparation and service of any notice under Section 58 of the Conveyancing and Property Ordinance Cap.219 or incurred in or in contemplation of proceedings thereunder notwithstanding in any
such case that forfeiture may be avoided otherwise than by relief granted by the Court;

  

 6 

					
	 	 	(b)	  	every application made by the Tenant for a consent or approval of the Landlord or any mortgagee of the Premises required by this Agreement whether or not the application is granted together with
any stamp duties on any licences and duplicates in connection therewith; and
			
	 	 	(c)	  	the recovery or attempted recovery of arrears of the Rents or other sums due from the Tenant.

  
 To Fit Out 
  

			
	(3)	  	To fit out the interior of the Premises at the Tenant’s expense in accordance with such plans and specifications (including but not limited to the installation of machinery electrical
wiring plumbing fire services air-conditioning and electrical works) as shall have been first submitted by the Tenant and approved in writing by the Landlord in a good proper and workmanlike fashion using good quality materials and in all respects
in a style and manner appropriate to a high class industrial building and so to maintain the same throughout the Term in good and substantial repair and condition to the reasonable satisfaction of the Landlord PROVIDED THAT no approval shall make
the Landlord responsible for any damages or claims arising from defects in design or quality of the fitting out. The Tenant will not cause or permit any variation to the approved fitting out plans and specifications or to the interior design or
layout of the Premises without the previous approval by the Landlord (such approval not to be unreasonably withheld) and the Tenant shall pay to the Landlord any fees and/or costs incurred or payable by the Landlord in obtaining the advice of its
architects and/or specialist consultants in respect of the initial fit-out works and any variation thereof.

  
 Repair 
  

							
	(4)	 	(a)	  	At all times during the Term to put and keep the interior of the Premises and the Equipment therein (save and except any Equipment within the Premises not exclusively serving the
Premises) in good clean a condition (reasonable wear and tear excepted) and to deliver up the same to the Landlord at the expiration or sooner determination of the Term in good condition (reasonable wear and tear excepted) and in particular but
without prejudice to the generality of the foregoing:-
				
	 	 	 	  	(i)	  	to repair or replace any electrical or gas installations wiring or piping (as the case may be) within and exclusively serving the Premises if the same becomes dangerous or unsafe or if so
reasonably required the Landlord or if required by any relevant Ordinances or the relevant utility company and in so doing the Tenant shall use only a contractor approved by the Landlord in writing for that purpose;
				
	 	 	 	  	(ii)	  	to keep any Equipment within and exclusively serving the Premises in good clean and substantial repair and condition and in accordance with the provisions of any relevant legislation and in so
doing the Tenant shall only use a contractor approved by the Landlord for that purpose;

  

 7 

							
	 	 	 	  	(iii)	  	to keep any toilets used exclusively by the Tenant its employees and licensees (whether or not within the Premises) in good clean and tenantable repair and condition;
			
	 	 	(b)	  	To reimburse to the Landlord on demand the cost of replacing all broken and damaged windows and glass in the Premises whether or not the same is broken or damaged by the act or
neglect of the Tenant and the cost of cleansing and clearing any of the drains choked or stopped up owing to the negligence or careless use by the Tenant; and
			
	 	 	(c)	  	To take all reasonable precautions to protect the Premises against damage by fire storm typhoon heavy rainfall or the like and in particular to ensure that all exterior doors and
windows are securely fastened upon the threat of such adverse weather conditions.

  
 Landlord’s Access

  

							
	(5)	 	(a)	  	To permit the Landlord and its agents with or without workmen materials and appliances to:-
				
	 	 	 	  	(i)	  	enter upon the Premises at reasonable times on reasonable notice (except in case of emergency when no notice shall be required) to inspect and test the wiring and piping therein and to inspect
execute test maintain and repair additions alterations or other works on any part of the Building or the fixtures and fittings or appliances therein and for the purpose of executing the same to erect scaffolding or to place ladders upon the
Premises;
				
	 	 	 	  	(ii)	  	enter the Premises at reasonable times on reasonable notice for the purpose of ascertaining that the covenants and conditions of this Agreement have been observed and performed;
				
	 	 	 	  	(iii)	  	enter upon the Premises at reasonable times on reasonable notice to view (and to open up floors and other parts of the Premises where such opening-up is required in order to view) the state of
repair and condition of the Premises;
				
	 	 	 	  	(iv)	  	give to the Tenant (or leave upon the Premises) a notice specifying any repairs renewals replacements rebuilding cleaning and maintenance that the Tenant has failed to execute in breach of this
Agreement and to request the Tenant immediately to execute the same including the making good of such opening-up (if any) Provided That any such opening up shall be made good by and at the cost of the Landlord where such opening-up reveals no breach
of this Agreement;

  

 8 

					
	 	 	(b)	  	Immediately to repair renew rebuild replace cleanse and maintain the Premises as required by any proper notice given pursuant to Clause 3(5)(a)(iv); and
			
	 	 	(c)	  	If within fourteen days of the service of any notice given pursuant to Clause 3(5)(a)(iv) the Tenant shall not have commenced and be proceeding diligently with the execution of the work referred
to in such notice or if the Tenant shall fail to complete the work within one month of such notice or if in the Landlord’s reasonable opinion the Tenant is unlikely to have completed the work within such period to permit the Landlord with all
necessary workmen materials and appliances to enter upon the Premises and forcibly if necessary to execute such work as may be requisite to comply with such notice and the cost thereof (which expression shall include without limitation all legal
costs and surveyors’ fees and other expenditure whatsoever attendant thereon) shall be paid by the Tenant to the Landlord on demand and shall be recoverable as rent.

  
 Restriction on
Alterations 
  

							
	(6)	 	(a)	  	Not to:-
				
	 	 	 	  	(i)	  	commit any waste nor damage destroy obstruct hinder or prevent the use of any Equipment;
				
	 	 	 	  	(ii)	  	make any addition or alteration to the Premises or any fixtures partitioning erections or installations therein without the prior written consent of the Landlord;
				
	 	 	 	  	(iii)	  	unite the Premises with any adjoining premises;
				
	 	 	 	  	(iv)	  	make any addition or alteration to the Equipment without the prior written consent of the Landlord;
				
	 	 	 	  	(v)	  	install any equipment apparatus or machinery which imposes a weight on any part of the floors ceilings roofs or structure of the Premises or Building in excess of that for which it is designed
or which requires any additional electrical wiring or gas piping or which consumes electricity or gas not metered through the Tenant’s separate meter;
				
	 	 	 	  	(vi)	  	cut maim injure drill into mark or deface any doors windows walls beams structural members or any part of the fabric of the Premises;

  

 9 

	

					
	 	  	(vii)	  	drive or insert any nails screws hooks brackets or similar articles into the ceilings floors doors windows or columns of the Premises nor to lay or use any floor covering or do any thing which
may damage or penetrate the existing flooring floor screed or slab;
			
	 	  	(viii)	  	damage injure or deface the Premises or the Building or the fixtures or fittings therein;
			
	 	  	(ix)	  	install or erect anything on the windows exterior or flatroofs (if any) of the Premises or the Building or that protrudes from the Premises or from the external facades of the air-conditioning
platform thereof;
			
	 	  	(x)	  	install additional locks bolts security fitments or systems or other fittings to the doors of the Premises or to the Premises or to change those already installed without the prior written
consent of the Landlord, which consent shall not be unreasonably withheld; and
			
	 	  	(xi)	  	install any heating ventilation or air-conditioning plant equipment or system in the Premises without the prior written consent of the Landlord and the Manager;
		
	(b)	  	Any consent shall be given or withheld at the Landlord’s discretion and the Landlord shall not be obliged to give reasons why it has withheld its consent and in any event if any
consent shall be granted it shall be subject to the condition that the Tenant shall not cause any damage to the Premises and/or the Building or any part thereof and such other conditions as the Landlord shall think fit to impose.
		
	(c)	  	Any work to which the Landlord may consent must be carried out in accordance with plans and specifications previously submitted to and approved by the Landlord and the Tenant shall
co-operate and cause its servants agents contractors and workmen to co-operate fully with the Landlord and its servants agents contractors and workmen and with other tenants or contractors carrying out any work in the Building and to obey and comply
and to cause its servants agents contractors and workmen to obey and comply with all instructions and directions which may be given by the Landlord’s representative in connection with the carrying out of such work;
		
	(d)	  	In carrying out any permitted work to the Equipment to use only a contractor approved by the Landlord for that purpose; and
		
	(e)	  	If the Tenant shall install package unit air-conditioning the Tenant shall only use the cooling water for such unit as shall be supplied by the Landlord and such supply shall be
subject to the Tenant paying to the Landlord the Cooling Water Charge.

  

 10 

 Alienation 
  

					
	(7)	  	Not to assign underlet mortgage charge hold on trust for another or part with or share possession or occupation or use or otherwise dispose of the Premises or any part thereof or any
interest therein or right thereto whereby any person or persons not party to this Agreement obtains the use or possession of the Premises or any part thereof irrespective of whether any rental or other consideration is given for such use or
possession and in the event of any breach of this provision this Agreement shall at the discretion of the Landlord determine and the Tenant shall forthwith surrender the Premises to the Landlord. The tenancy shall be personal to the Tenant named in
this Agreement and without in anyway limiting the generality of the foregoing, the following acts and events shall unless previously approved in writing by the Landlord (which approval the Landlord may give or withhold at its discretion without
assigning any reason therefor) be deemed to be breaches of this Clause:-
			
	 	  	(iii)	  	Any take-over, reconstruction, amalgamation, merger, liquidation or winding up either voluntarily or otherwise or a change in the person or persons who own the majority of its voting shares or
who otherwise have effective control thereof unless the Tenant shall notify the Landlord of any take-over, reconstruction, amalgamation or merger and such take-over, reconstruction, amalgamation or merger shall be approved in writing by the Landlord
(which approval the Landlord shall not unreasonably withhold).
			
	 	  	(iv)	  	The giving by the Tenant of a Power of Attorney or similar authority whereby the donee of the Power obtains the right to use possess occupy or enjoy the Premises or any part thereof or does in
fact use possess occupy or enjoy the same unless previously approved in writing by the Landlord (which approval the Landlord may give or withheld at it discretion without assigning any reason therefor).

  
 Legislation and Notices

  

					
	(8)	  	(a)	 	To obey and comply with all legislation relating to the Premises and the conduct and carrying on of the Tenant’s business thereat and the use of all plant and machinery installed in the
Premises or to any other act deed matter or thing done permitted suffered or omitted therein or thereon;
			
	 	  	(b)	 	Not to do in or near the Premises any act or thing by reason of which the Landlord may under any Ordinance incur any Liability; and
			
	 	  	(c)	 	Forthwith on receipt of any notice order or claim or information regarding any proposal for a notice order or claim affecting the Premises or the owner thereof (whether by advertisement or
otherwise) to give full particulars thereof to the Landlord and if so required by the Landlord to produce such notice order claim or information regarding such proposal for a notice order or claim to the Landlord.

  

 11 

 Restrictions on Use 
  

					
	(9)	  	(a)	  	Not to use the Premises for any purpose other than for the Permitted Use excluding any trade that is now or may hereafter be declared to be an offensive trade under the Public Health and
Municipal Services Ordinance Cap.13 or any similar legislation and not to cease to carry on business in the Premises;
			
	 	  	(b)	  	Not to use the Premises for any illegal or immoral purpose;
			
	 	  	(c)	  	Not to use the Premises as sleeping quarters or domestic premises nor to allow any person to remain in the Premises overnight except with the prior consent of the Landlord posting watchmen to
look after the contents of the Premises;
			
	 	  	(d)	  	Not to use or permit or suffer the Premises to be used for the purpose of dyeing or weaving works or the manufacture of plastic ware or materials;
			
	 	  	(e)	  	Not to keep any animals or pets inside the Premises and at the Tenant’s expense to take all such steps and precautions as shall be required by the Landlord to prevent the Premises from
becoming infested or to remedy the infestation of the Premises by termites rats mice roaches or any other pests or vermin and to employ at the Tenant’s cost only such pest extermination contractors as the Landlord may require and at such
intervals as the Landlord may reasonably direct and to the exclusion of all others;
			
	 	  	(f)	  	Not to bring or permit to remain on the Premises any safes machinery goods or other articles which may strain or damage the Premises;
			
	 	  	(g)	  	To comply with the Landlord’s requirements as to the maximum weight and location of heavy equipment apparatus and machinery.
			
	 	  	(h)	  	Not to use in the Building any cart trolley or similar vehicle for the transport of goods unless the same is run on wheels of not less than six inches’ diameter and without skids or tracks
and unless all such wheels are covered with a tread of soft and non-metallic material;
			
	 	  	(i)	  	Not to use any liquid or solid fuel within the Premises or the Building; or
			
	 	  	(j)	  	Not to use any fresh or salt water from Government mains for any heating cooling humidification or industrial purposes without obtaining any requisite consents and licences from the Water
Authority.

  

 12 

 Loading and Unloading 
  

					
	(10)	  	(a)	  	Not to use the passenger lifts in the Building for the purpose of carrying any merchandise supplies chattels refuse equipment or other materials which items shall be carried only in the freight
or cargo lifts;
			
	 	  	(b)	  	Not to load the freight or cargo lifts in such a manner as to exceed the maximum laden weight from time to time recommended by the manufacturer or any service engineers for the operation thereof
and not to cause congestion of the loading and unloading bays areas and platforms and the adjoining parking areas (if any) or inconvenience to any other user of them; and
			
	 	  	(c)	  	To use the loading and unloading bays areas and platforms for the purposes of loading and unloading goods only.

  
 Access and Common Parts

  

					
	(11)	  	(a)	  	Not to do any act or thing whereby any entrance or exit of the Building or any of the Common Parts may be obstructed impeded or hindered in any way whatsoever and not to place any objects on the
Common Parts nor to cause any Common Parts to become untidy or in a dirty condition;
			
	 	  	(b)	  	Not to place deposit or expose outside the Premises any goods materials articles or things whatsoever for display or sale or for any other purpose.

  
 Electricity Loading 

 

			
	(12)	  	Not to overload the electrical wiring or cables or apparatus associated therewith in or serving the Premises and to comply in all respects with all Ordinances relating
thereto.

  
 Aerials and Noise 

 

					
	(13)	  	(a)	  	Not without the consent of the Landlord to affix any aerial or similar apparatus (whether in connection with telegraphic, telephonic, radio or television communication or otherwise) upon any
part of the outside of the Building and not to make any claim against the Landlord in respect of interference to reception of wireless radio or television transmissions or to the operation of any appliance in or upon the Premises suffered or alleged
to be suffered by reason of the use of electrical or other apparatus at the Building;
			
	 	  	(b)	  	Not to make at any time in the Premises any music or noise (including without limitation sound produced reproduced received or recorded by any broadcasting or other apparatus or equipment) so as
to be audible outside the Premises.

  

 13 

 Fire Fighting Equipment 
  

			
	(14)	  	To keep all fire fighting alarm detection systems and extinguishing apparatus installed at the Premises in compliance with all Ordinances and open to inspection and maintained in complete
working order to the satisfaction of the Landlord and not to hinder prevent or obstruct the access to or operation of such systems apparatus and appliances.

  
 Machinery 
  

					
	(15)	  	(a)	  	Not to install any machinery in the Premises without the written consent of the Landlord (such consent not to be unreasonably withheld);
			
	 	  	(b)	  	Not to install or use in the Premises any machinery or apparatus which causes undue noise or vibration or which can be heard or felt in any other premises in the Building or which may cause
structural damage;
			
	 	  	(c)	  	To keep all plant apparatus machinery (including any boilers) in or upon the Premises properly maintained and in good working order and for that purpose to employ reputable contractors for the
regular periodic inspection and maintenance of them and to renew all working and other parts as and when necessary or recommended by such contractors; and
			
	 	  	(d)	  	To mount and equip its machinery and particularly (without prejudice to the generality of the foregoing) machinery with horizontal or vertical reciprocating actions and every part thereof with
anti-vibration absorbers and anti-dumping absorbers of such types and designs as may be first approved in writing by the Landlord and to comply with all directions or orders of the Landlord or its agents for eliminating and reducing vibrations and
dumping produced by the operation and running of any of the machinery installed at or on or affixed to the Premises.

  
 Nuisance 
  

					
	(16)	  	(a)	  	Not to do any act or thing in or upon the Premises or any of the Common Parts which may be or become or cause nuisance injury or damage or annoyance disturbance or inconvenience to the Landlord
or the tenants owners or occupiers of other premises in the Building;
			
	 	  	(b)	  	Not to cause or permit any grit fumes or deleterious noxious offensive or poisonous effluvia or substance to be emitted from the Premises; and
			
	 	  	(c)	  	Not to allow to pass into the Conduits any oil or grease or noxious deleterious objectionable dangerous poisonous or explosive effluent matter or other substance which is of a kind that is
likely to or does in fact damage destroy contaminate or pollute the water of any stream or river or the sea or any land or property or which may pollute the environment or cause an obstruction in or injury any pipes sewers drains watercourses or
other conduits and to construct at the Tenant’s expense such intercepting and neutralising tanks as may be required by the Landlord.

  

 14 

 Tenant’s Insurance 
  

					
	(17)	  	(a)	  	To effect and maintain at all times comprehensive insurance cover in respect of liability for loss injury or damage to any person or property whatsoever arising as a direct or indirect result of
any act neglect default or omission of the Tenant or the contractors servants agents licensees or invitees of the Tenant with an insurance company of good repute;
			
	 	  	(b)	  	To pay all premiums in respect of any policies effected pursuant to Clause 3(17)(a) upon the due date and whenever so required by the Landlord to produce to the Landlord such policies of
insurance and the receipts for the last premiums paid and in the event of failure to do so the Landlord may effect such insurance either in its sole name or in the joint names of the Landlord and the Tenant (as the Landlord may in its discretion
decide) and in such event to reimburse the Landlord on demand all costs and expenses thereby incurred by the Landlord; and
			
	 	  	(c)	  	If at any time the Tenant shall be entitled to the benefit of any insurance of the Premises or the Equipment therein to apply all monies received by virtue of such insurance in making good the
loss or damage in respect of which such money shall have been received.

  
 Landlord’s Insurance

  

					
	(18)	  	(a)	  	Not to do or omit anything whereby any insurance for the time being effected in respect of the Premises the Building or the Equipment may be rendered void or voidable wholly or in part or be in
anyway affected nor do or omit anything whereby any additional premium may become payable for any such insurance and to comply with all requirements and recommendations of the insurers as to fire precautions relating to the Premises Provided that if
as the result of anything done or omitted by the Tenant the premium on any such policy of insurance shall be increased the Landlord shall be entitled without prejudice to any other remedy hereunder to recover from the Tenant the amount of any such
increase; and
			
	 	  	(b)	  	To give notice in writing to the Landlord forthwith upon the happening of any event which might affect any insurance policy on or relating to the Premises the Building or the Equipment or upon
the happening or any destruction thereof or damage thereto.

  
 Refuse, Storage and Cleaning

  

					
	(19)	  	(a)	  	Not to form any refuse dump or scrap heap on the Premises;

  

 15 

					
	 	  	(b)	  	Not to deposit refuse rubbish scrap and waste material in the Premises and to ensure that all refuse rubbish scrap and waste material is at all times stored in the Premises in proper receptacles
and as from time to time directed by the Landlord;
			
	 	  	(c)	  	To ensure that not less frequently than once a day all refuse rubbish scrap and waste material which may have accumulated on the Premises is removed therefrom and at the Tenant’s expense to
employ such cleaning contractors as shall be nominated by the Landlord;
			
	 	  	(d)	  	To dispose properly of any dangerous or trade waste at the Tenant’s cost in accordance with the provisions of the Public Cleansing and Prevention of Nuisances By-laws and any other relevant
legislation;
			
	 	  	(e)	  	Not to bring keep or store in or upon the Premises or the Building any arms ammunition unlawful goods gun powder saltpetre kerosene petrol or petroleum products or any other dangerous explosive
or inflammable substances;
			
	 	  	(f)	  	Not to bring or keep upon the Premises or the Building anything which in the opinion of the Landlord is or may become untidy unclean unsightly or otherwise detrimental to the amenities of the
Premises or the Building;
			
	 	  	(g)	  	Generally to keep the Premises and all areas immediately adjoining thereto clean tidy and in good order.

  
 Signs and Placards 

 

					
	(20)	  	(a)	  	Not to affix display place or exhibit within or outside the Premises any signboard sign decoration advertising matter or other device whether illuminated or not which may be visible from outside
the Premises save the display of a name-plate or signboard identifying the Tenant the type size and position of which shall be subject to the prior written approval of the Landlord and the Manager;
			
	 	  	(b)	  	To pay to the Landlord on demand the cost of affixing repairing or replacing the Tenant’s name on the directory board at the entrances to the Building and on the floor on which the Premises
are situated; and
			
	 	  	(c)	  	The Landlord its agents or the Manager shall have the right to remove at the cost and expense of the Tenant any signboard, sign, decoration or device which shall be affixed, put up or displayed
in breach of Clause 3(20)(a).

  

 16 

 Landlord’s signs 
  

			
	(21)	  	To permit the Landlord at any time during the last four months of the Term to affix and retain without interference upon any part of the Premises a notice for reletting the same or at any time
or times during the Term a notice for the sale of any reversionary interest in the Premises and to permit persons with written authority from the Landlord or its agent at reasonable times to view the Premises.

  
 Delivery-up 
  

					
	(22)	  	At the expiration or sooner determination of the Term quietly to yield up the Premises with vacant possession and at the Landlord’s discretion either :-
			
	 	  	(a)	  	to remove all fixtures and fittings installed in the Premises by or on behalf of the Tenant and all additions erections alterations and improvements which the Tenant and any predecessor in title
may have made to the Premises with or without the consent of the Landlord and to make good all damage caused by their removal; or
			
	 	  	(b)	  	to leave all fixtures and fittings which have been affixed to the Premises by or on behalf of the Tenant and which have become part of the Premises (except trade fixtures and fittings the Tenant
making good all damage caused by the removal thereof) and all additions erections alterations and improvements which the Tenant and any predecessor in title may have made to the Premises with or without the consent of the Landlord
		
	 	  	in either case in the state of repair and decoration in which they should be having regard to the Tenant’s agreements and obligations contained in this Agreement and generally
in accordance with the terms of this Agreement and to deliver to the Landlord all keys to the Premises.

  
 Landlord’s Rights

  

			
	(23)	  	To permit the Landlord at all times during the Term to exercise without interruption or interference any of the rights granted to it by virtue of the provisions of this
Agreement.

  
 Remedy of Tenant’s Default

  

			
	(24)	  	In the event of the Tenant failing to comply with any of the provisions of this Agreement (and without prejudice to any other provisions of this Agreement) to permit the Landlord or any
person authorised by the Landlord to enter upon the Premises and/or to take such other action as it or they may from time to time deem appropriate to remedy rectify or mitigate such failure and to repay on demand all costs and expenses thereby
incurred by the Landlord or such authorized person.

  

 17 

 Contractors Servants Agents Licensees 
  

			
	(25)	  	To be responsible to the Landlord for any act neglect omission and default of any contractors servants agents licensees and invitees of the Tenant as if they were the acts neglects omissions or
default of the Tenant and for the purposes of this Agreement “licensees” shall include any person present in using or visiting the Premises with the express or implied consent of the Tenant save only the Landlord and its contractors
servants agents invitees and licensees.

  
 Indemnity 
  

					
	(26)	  	To be responsible for and to keep the Landlord fully indemnified during and after the Term against all
Liabilities suffered or incurred by the Landlord arising directly or
indirectly out of:-
			
	 	  	(a)	 	any breach non-observance or non-performance by the Tenant of the provisions of this Agreement or any of the matters to which this demise is subject;
			
	 	  	(b)	 	any act omission or negligence of the Tenant or any contractors servants agents licensees or invitees of the Tenant; and
			
	 	  	(c)	 	the repair condition user or any alteration to the Premises or owing to the spread of fire or smoke or the escape or overflow of water originating from the Premises Provided That the same shall
not arise by reason of the act neglect or omission of the Landlord.

  
 Government lease and Deed of Mutual
Covenant 
  

			
	(27)	  	Not to do any act deed matter or thing whatsoever which does or would amount to a breach of the terms and conditions of the Deed of Mutual Covenant or of the Government lease relating to the
Building and not to impede the Manager in carrying out its duties and powers.

  
 Regulations 
  

			
	(28)	  	To comply with all regulations for the proper management or the control or security of the Building or the comfort or convenience of its occupiers and visitors as may from time to time apply to
the Building Provided That nothing in any regulations made by or at the direction of or with the consent of the Landlord shall purport to amend this Agreement and in the event of any inconsistency between this Agreement and such regulations this
Agreement shall prevail.

  
 LANDLORD’S AGREEMENTS

  

			
	4.	  	The Landlord agrees with the Tenant as follows:-

  

 18 

 Quiet Enjoyment 
  

			
	(1)	  	That the Tenant paying the Rents and performing and observing the agreements and obligations on its part herein contained shall and may peaceably and quietly hold and enjoy the Premises during
the Term without any unlawful interruption by the Landlord or any person rightfully claiming under or in trust for the Landlord.

  
 Property Tax 
  

			
	(2)	  	To pay the property tax which are now or may hereafter during the Term be imposed by Government upon the Premises.

  
 Maintenance of Structure

  

			
	(3)	  	To maintain and keep the main structure of the Premises in proper and tenantable repair and condition Provided that the Landlord’s liability hereunder shall not be deemed to have arisen
unless and until written notice of any want of repair of the same shall have been previously given by the Tenant to the Landlord and the Landlord shall have failed to take steps to inspect and repair the same after the lapse of a reasonable time And
Provided that the Landlord shall not be required to repaint or whitewash any external part of the Premises.

  
 PROVISOS 
  

			
	5.	  	PROVIDED ALWAYS and it is agreed and declared as follows:-

  
 Re-entry 
  

			
	(1)	  	If the Rents or any part thereof shall at any time be unpaid for fifteen days after the due date therefor (whether formally demanded or not) or if any of the agreements or obligations on the
part of the Tenant or any one of them herein contained shall not be performed or observed or if the Tenant or any one of them (being an individual or individuals) shall become bankrupt or if the Tenant (being a company) shall enter into liquidation
whether compulsory or voluntary (save for the purpose of amalgamation or reconstruction of a solvent company) or if a receiver shall be appointed of the Tenant’s undertaking or if the Tenant shall enter into an agreement or make any arrangement
with creditors for liquidation of the debts of the Tenant by composition or otherwise or if the Tenant’s Business Registration Certificate is cancelled or if the Tenant shall suffer any distress or process of execution to be levied on the goods
of the Tenant then and in any such case it shall be lawful for the Landlord at any time thereafter to re-enter upon the Premises or any part thereof in the name of the whole and thereupon this Agreement shall absolutely determine in which event the
Deposit shall be absolutely forfeited to the Landlord but without prejudice to any right of action of the Landlord in respect of any antecedent breach of any of the agreements or obligations on the part of the Tenant herein
contained.

  

 19 

 Deposit 
  

					
	(2)	  	(a)	  	The Tenant will on the signing of this Agreement pay to and thereafter maintain with the Landlord the Deposit by way of security for the due performance and observance of the agreements and
obligations on the part of the Tenant herein contained. The Landlord shall have the right (without prejudice to any other remedy available to the Landlord) to deduct from the Deposit the amount of any loss or damage suffered by the Landlord as the
direct or indirect result of any non-performance or non-observance by the Tenant of the agreements and obligations on its part herein contained and subject thereto the Deposit or the balance thereof (as the case may be) shall be returned to the
Tenant within 21 days of the expiration or sooner determination of the Term, delivery of vacant possession of the Premises or settlement of the Landlord’s last outstanding claim (whichever is the later);
			
	 	  	(b)	  	In the event of any proper deduction being made by the Landlord from the Deposit at any time or from time to time the Tenant shall forthwith on demand in writing made by the Landlord make a
further deposit equal to the amount so deducted;
			
	 	  	(c)	  	In the event of the Basic Rent, Government rent or Government rates being increased at any time or from time to time the Tenant shall forthwith on demand in writing made by the Landlord deposit
with the Landlord an amount equal to three times the amount by which the Basic Rent, quarterly Government rent or Government rates (as the case may be) has increased by way of further security for the due performance and observance of the agreements
and obligations on the part of the Tenant herein contained.
			
	 	  	(d)	  	In the event of the Landlord disposing of its interest in the Premises, the Landlord will transfer the Deposit and the benefits and burdens of this Clause 5(2) to its successor in title (to
which transfer the Tenant hereby consents) to the intent that the Landlord’s obligation to repay the Deposit to the Tenant shall be an obligation which runs with the land and that the Landlord’s successor in title for the time being in
possession of the reversionary interest immediately expectant hereon shall be obliged to repay the Deposit to the Tenant in accordance with the terms of this Agreement; and
			
	 	  	(e)	  	Following any transfer of the Deposit in accordance with Clause 5(2)(d) the Landlord shall be absolutely discharged from its obligations herein contained to refund the Deposit or any part
thereof to the Tenant.

  
 Abatement of Rent 

 

			
	(3)	  	In the event of the Premises or any substantial part thereof being damaged or destroyed by any cause save and except for the act neglect or default of the Tenant so as to be unfit for occupation
or use the Basic Rent or a fair proportion thereof according to the nature and extent of the damage sustained shall cease

  

 20 

			
	 	  	to be payable by the Tenant from the date of damage or destruction until the Premises or the affected part are repaired and reinstated fit for occupation and use Provided That there shall be
no cesser of Basic Rent if any insurance policy effected by the Landlord shall have been rendered void or voidable in whole or in part by the act or default of the Tenant and Provided Further That if the whole or substantially the whole of the
Premises shall have been damaged or destroyed by any such cause as aforesaid so as to be unfit for occupation or use and shall not have been repaired and reinstated within three months of the damage or destruction either party shall be entitled at
any time before the same are repaired and reinstated to terminate this Agreement by notice in writing to the other without prejudice to each party’s rights against the other in respect of any antecedent breach hereof Provided Further that the
Landlord shall be under no obligation to repair and reinstate any damage or destruction to the Premises.

  
 Non-liability of Landlord

  

					
	(4)	  	Notwithstanding anything herein contained and so far as permitted by law the Landlord shall not in any circumstances be liable for any Liabilities suffered or incurred by the Tenant
or occupier of the Premises or any of its or their respective servants employees licensees invitees or visitors or by any other person or persons by reason or in consequence of:-
			
	 	  	(a)	  	any act neglect default or omission of any contractors servants agents licensees or workmen of the Landlord;
			
	 	  	(b)	  	any act neglect default or omission of any tenants or occupiers of any other premises in the Building;
			
	 	  	(c)	  	any defect in or breakdown of or the defective state or condition of the Premises or the Building or the appurtenances or anything in on or about the same;
			
	 	  	(d)	  	any failure malfunction stoppage fluctuation interruption or suspension of the security services or other services and facilities of or in the Building and in particular (but without limitation)
the provision by the Landlord of security services shall not create an obligation on the part of the Landlord for the security of the Premises or any contents therein;
			
	 	  	(e)	  	any failure malfunction explosion or suspension of the electricity gas or water supply to the Building or the Premises; or
			
	 	  	(f)	  	fire or the overflow or leakage of water from anywhere within the Building or the influx of rain water or sea water into the Building or the Premises or the activity of rats or other vermin in
the Building;
		
	 	  	nor subject to the provisions of Clause 5(3) shall the Rents or any part thereof abate or cease to be payable on account thereof.

  

 21 

 Waiver and Condonation 
  

					
	(5)	  	(a)	  	No acceptance of rent or condoning exercising or overlooking by the Landlord of any non-observance or non-performance by the Tenant at any time or times of the Tenant’s agreements and
obligations herein contained shall operate as a waiver of the Landlord’s rights hereunder in respect of any continuing or subsequent non-observance or non-performance or so as to defeat or affect in any way the rights and remedies of the
Landlord hereunder in respect of any such continuing or subsequent non-observance or non-performance and no waiver by the Landlord shall be inferred from or implied by anything done or omitted by the Landlord unless the same is expressly waived in
writing and signed by the Landlord; and
			
	 	  	(b)	  	Any consent given by the Landlord shall operate as a consent only for the particular matter to which it relates and in no way shall be considered as a waiver or release of any of the provisions
hereof nor shall it be construed as dispensing with the necessity of obtaining the specific written consent of the Landlord in the future unless expressly so provided.

  
 Premium 
  

			
	(6)	  	The Tenant acknowledges that no fine premium key money or consideration other than that details of which are contained in this Agreement has been paid by the Tenant to the Landlord for the grant
of this Agreement.

  
 Rent to be paid in advance

  

			
	(7)	  	For the purpose of the Landlord and Tenant (Consolidation) Ordinance Cap.7the rents reserved hereby are in arrears if not paid in advance as herein provided.

  
 Verbal Warranties and Exclusion of
Use 
  

					
	(8)	  	(a)	  	This Agreement sets out the full agreement reached between the parties and the Tenant acknowledges that this Agreement has not been entered into in reliance wholly or partly on any
representation or statement made or given by the Landlord except any such statement or representation that is expressly set out in this Agreement;
			
	 	  	(b)	  	Nothing in this Agreement or in any consent granted by the Landlord under this Agreement shall imply or warrant that the Premises may be used for the purpose herein authorised;
			
	 	  	(c)	  	The parties hereto agree that the Premises will be let to the Tenant by the Landlord in the state and condition as at the date of signing this Agreement and no warranty or representation is
given or made by the Landlord or its agents regarding:-

  

 22 

							
	 	 	 	 	(i)	  	the fittings and finishes of the installations and appliances (if any) in the Premises and/or the Building;
				
	 	 	 	 	(ii)	  	the state and condition of the Premises or the Building or the user thereof; or
				
	 	 	 	 	(iii)	  	the composition of the Building.

  
 Notices 
  

			
	(9)	  	Any notice to be served hereunder or in relation hereto shall if to be served on the Tenant be sufficiently served if addressed to the Tenant and sent by prepaid registered post to or delivered
at the Premises or the Tenant’s registered office or last known place of business in Hong Kong and if to be served on the Landlord be sufficiently served if addressed to the principal place of business of the Landlord in Hong Kong as set out
above and sent by prepaid registered post or any other address which the Landlord may notify to the Tenant from time to time. A notice sent by post shall be deemed to be given when recorded by the Post Office as received.

  
 Property Tax Increase

  

			
	(10)	  	If for any reason whatsoever the property tax payable in respect of the Premises is increased to a figure in excess of the property tax at the date hereof by reason of any decoration alteration
or other works or improvements carried out by the Tenant to the Premises then and in any such case the Tenant shall during the continuance of this Agreement bear the increase in property tax and the amount of such increase or increases shall form
part of the rent and be recoverable accordingly.

  
 Unwanted property 

 

			
	(11)	  	If after the ending of the Term any property remains in the Premises and/or the Building the Landlord may either in so far as the same is annexed to the Premises and/or the Building treat it as
having reverted to the Landlord as fixtures or as the agent of the Tenant (and the Landlord is appointed by the Tenant to act in that behalf) to remove, store, and/or dispose of whether by sale or otherwise to retain any proceeds of sale and recover
the costs for such removal, storage and/or disposal from the Tenant if the proceeds of sale shall not be sufficient to cover the same Provided That the Tenant shall indemnify the Landlord against liability incurred by it to any third party whose
property is dealt with by the Landlord.
		
	6.	  	COSTS
		
	 	  	All the stamp duty on this Agreement and its duplicate will be borne and paid by the parties hereto in equal shares. If the Tenant engages non-employee Hong Kong solicitors to act for him, the
Tenant shall pay one half share of the Landlord’s solicitors’ scale charges plus one half of the stamp duty on this Agreement and its duplicate.

  

 23 

			
	7.	  	EARLY DETERMINATION BY LANDLORD
		
	 	  	Notwithstanding anything herein contained the Tenant hereby expressly agrees that in the event of the Premises and/or the Building or any part thereof being required by the Landlord for the
purpose of rebuilding refurnishment reconstruction or redevelopment, a resolution of the Board of Directors of the Landlord shall be conclusive evidence of such requirement, the Landlord shall have the right to terminate this Agreement by giving to
the Tenant six month’s prior notice in writing of its intention to do so and upon the expiration of such notice this Agreement shall absolutely be determined but without prejudice to the rights of either party against the other in respect of
any antecedent breach hereof.
		
	8.	  	SPECIAL CONDITIONS
		
	 	  	For the avoidance of doubt, it is hereby agreed that this Agreement shall be read and construed on the basis that the special conditions, if any, set out in the Second Schedule hereto form an
integral part of this Agreement. In the event of conflict between such special conditions and the terms and conditions hereinbefore provided, the special conditions shall prevail.

  
 IN WITNESS whereof the parties hereto
have signed this Agreement the day and year first before written. 
  

 24 

 THE FIRST SCHEDULE 
  
 Premises 
  
 The Premises are shown for the purposes of identification only coloured pink on the Plan and include:- 
  

	(a)	 	the inner surface of and the paint paper and other decorative finishes applied to the interior of the external walls and internal structural walls of the Premises but not any other
part of the external walls or internal structural walls; 

  

	(b)	 	the floor finishes floor boards and floor screeding so that the lower limit of each floor of the Premises includes such finishes, boards and screeding but does not extend to
anything below them except any Equipment that exclusively serve the Premises; 

  

	(c)	 	the plaster inner surface paint paper and other decorative finishes applied to the underside of the ceilings so that the upper limit of each floor of the Premises includes such
plaster inner surfaces and finishes but does not extend to anything beyond them except any Equipment that exclusively serve the Premises; 

  

	(d)	 	one-half severed medially of the internal non-structural walls dividing the Premises from other parts of the Building and all other non-structural internal walls;

  

	(e)	 	the doors door frames windows and window frames; 

  

	(f)	 	all additions and improvements to the Premises; 

  

	(g)	 	all the Landlord’s fixtures and fittings of every kind now in or upon or which shall from time to time be in or upon the Premises (whether originally affixed or fastened to or
upon the same or otherwise) except any such tenant’s or trade fixtures installed by the Tenant that can be removed from the Premises without defacing the same and except any Equipment within the Premises not exclusively serving the Premises;
and 

  

	(h)	 	the Equipment within the Premises that exclusively serves the Premises. 

  

 25 

 THE SECOND SCHEDULE 
 Special Conditions 
  

	1.	 	Notwithstanding any provisions to the contrary herein contained, the Landlord hereby agrees that the Tenant shall be entitled to a six (6) months’ rent-free period from (i) the
commencement date of the Term to the 14th day of February 2004 (both days inclusive); (ii) the 1st day of February 2005 to the 28th day of February 2005 (both days inclusive); (iii) the 1st day of December 2005 to the
31st day of January 2006 (both days inclusive); and (iv) the 15th day of November 2006 to the 14th day of January 2007 (both days inclusive) Provided That all Government rent, rates, Service Charge, Cooling Water Charge and all other outgoings within the said rent-free periods shall be borne by the Tenant solely.

  

	2.	 	The Tenant shall at its own costs and expenses reinstate the Premises to its original handover condition and deliver vacant possession of the Premises to the Landlord upon
expiration or sooner determination of the Term. 

  

	3.	 	The Tenant shall at its own costs and expenses fit out the Premises in accordance with the fitting out rules imposed by the Landlord and the Manager and the Tenant shall solely be
responsible at its own costs and expenses to obtain approval(s) from the Building Authority and any relevant Government authority for such fitting out works. 

  

	4.	 	The Landlord hereby agrees that the Premises shall be delivered to the Tenant with a full ceiling (sprinklers, false ceiling, light boxes, air-conditioners and carpet materials).

  

	5.	 	Notwithstanding anything to the contrary herein contained, the Landlord and the Tenant hereby mutually agree that each party shall after 12 months from the commencement of the Term
have the right to early terminate this Agreement by giving to the other party not less than six (6) months’ prior written notice of its intention to do so and upon expiration of such notice this Agreement shall absolutely be determined but
without prejudice to either part’s right to claim against the other in respect of any antecedent breach hereof. 

  

	6.	 	Notwithstanding anything to the contrary herein contained, the Landlord hereby agrees that the Service Charge, shall not be increased by more than 20% during the Term.

  

	7.	 	Notwithstanding anything to the contrary herein contained, the Landlord hereby agrees that the Tenant shall not be responsible for payment of any of the landlord’s tax other
than the rates and Government rent of the Property. 

  

	8.	 	The Landlord hereby agrees that any notice to be served by the Landlord (save and except the notice issued by the Manager on the building management matters) to the Tenant will also
be copied to the General Counsel of the Tenant in the United States of America by fax at fax number 01 510 449-0102. 

  

 26 

					
	TANG YU MING	 	 	  	 For and on behalf of

	 SIGNED by
	 	 )
	  	 CDW BUILDING LIMITED

	 director(s)/authorised person(s)
	 	 )
	  	  
 /s/ Tang Yu
Ming

                                      
           Authorized Signature(s)

	 duly authorised by the Board of
	 	 )
	  
	 Directors of the Landlord whose
	 	 )
	  
	 signature is verified by:-
	 	 	  
			
	 WENDY CHOW
 Solicitor, Hong Kong SAR
 Messrs. Slaughter and May
	 	 	  	 
	 	 	 	  	 For and on behalf of

	 SIGNED by Darren Spencer
	 	)	  	 PEAK PLASTIC & METAL PRODUCTS (INTERNATIONAL) LTD.

	 director(s)/authorised person(s)
	 	)	  	 /s/ Darren Spencer

                                       
          Authorized Signature(s)

	 duly authorised by the Board of
	 	)	  
	 Directors of the Tenant in the
	 	)	  
	 presence of:-
	 	 	  
			
	Isabella Law	 	 	  	 
			
	 Received on or before the day and
	 	)	  	 
	 year first above written of and
	 	)	  	 
	 from the Tenant the sum of Hong
	 	)	  	 
	 Kong Dollars Two Hundred Fourteen
	 	)	  	 
	 Thousand Six Hundred and Seventeen
	 	)	  	 
	 only (HK$214,617.00) being the
	 	)	  	 HK$214,617.00

	 Deposit
	 	 	  	 
	 	 	 	  	For and on behalf of
	 	 	 	  	CDW BUILDING LIMITED
			
	 	 	 	  	 /s/ Tang Yu Ming

	 	 	 	  	                                       
         Authorized Signature(s)

  

 27 

 Dated 1st April 2004 

  
 CDW BUILDING LIMITED (1) 
  
 and 
  
 PEAK PLASTIC & METAL
PRODUCTS 
 (INTERNATIONAL) LIMITED (2) 
  

  
 TENANCY AGREEMENT 
  
 of 
  
 UNITS E AND F, NINETEENTH FLOOR, 
 CDW BUILDING 
 388 CASTLE PEAK ROAD

  
 TSUEN WAN 
  

  
 SLAUGHTER AND MAY 
 SOLICITORS, 
 HONG KONG SAR 
  

 28

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