Document:

spwh_Ex10_1

		

			EXECUTION VERSION

		

		
			EXHIBIT 10.1
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			ASSET PURCHASE AGREEMENT

BY AND BETWEEN

DICK’S SPORTING GOODS, INC. 
		

		
			

AND

SPORTSMAN’S WAREHOUSE, INC. 

DATED AS OF September 28, 2019
		

		
			 
		

		
			 
		

		
			

		 

		

			                                                                                                                                                        

		

		

		
			TABLE OF CONTENTS
		

		
			Page
		

		
			ARTICLE 1 PURCHASE AND SALE OF PURCHASED ASSETS;  PURCHASE PRICE1
		

		
			1.1Agreement to Sell and Purchase................................................................................1
		

		
			1.2Calculation of Purchase Price....................................................................................2
		

		
			1.3Assumption of Liabilities..............................................................................................2
		

		
			1.4Transactions to be Effected at the Closing.................................................................4
		

		
			1.5[Intentionally omitted.].................................................................................................5
		

		
			1.6Allocation of Purchase Price.......................................................................................5
		

		
			ARTICLE 2 THE CLOSING6
		

		
			2.1Closing;  Closing Date.................................................................................................6
		

		
			2.2Additional Actions.......................................................................................................6
		

		
			ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE SELLER6
		

		
			3.1Organization and Qualification...................................................................................6
		

		
			3.2Binding Obligation.......................................................................................................6
		

		
			3.3No Defaults or Conflicts.............................................................................................7
		

		
			3.4No Material Contracts.................................................................................................7
		

		
			3.5Employee and Labor Matters.....................................................................................7
		

		
			3.6Real Property.............................................................................................................8
		

		
			3.7Leases.........................................................................................................................8
		

		
			3.8Title to Purchased Assets; Inventory...........................................................................8
		

		
			3.9Legal Proceedings.....................................................................................................8
		

		
			3.10Permits.........................................................................................................................9
		

		
			3.11Brokers.........................................................................................................................9
		

		
			3.12Tax Matters.................................................................................................................9
		

		
			3.13Fixed Assets...............................................................................................................9
		

		
			3.14Employee Benefits.....................................................................................................9
		

		
			3.15Compliance with Laws.............................................................................................10
		

		
			3.16Exclusivity of Representations.................................................................................10
		

		
			ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER10
		

		
			4.1Organization.............................................................................................................10
		

		
			4.2Binding Obligation.....................................................................................................10
		

		
			4.3No Defaults or Conflicts...........................................................................................10
		

		
			4.4Legal Proceedings...................................................................................................11
		

		
			4.5Brokers.......................................................................................................................11
		

		
			4.6Independent Investigation.........................................................................................11
		

		
			4.7Retail Operations.....................................................................................................11
		

		
			ARTICLE 5 COVENANTS12
		

		
			5.1Conduct of the Transferred Locations Prior to the Closing.......................................12
		

		
			5.2Use of DSG Name and the Seller’s Trademarks.....................................................12
		

		
			5.3Employee Matters...................................................................................................12
		

		
			5.4Employee Benefit Plans............................................................................................13
		

		
			5.5Tax Matters.............................................................................................................13
		

		
			5.6Bulk Sales Laws.......................................................................................................14
		

		
			5.7Post-Closing Payment.............................................................................................14
		

		
			

		 

		

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			5.8Governmental Permits.............................................................................................14
		

		
			5.9Private Label Inventory.............................................................................................15
		

		
			5.10Non-Competition; Non-Solicitation...........................................................................15
		

		
			5.11Subsequent Closings...............................................................................................16
		

		
			5.12Landlord Estoppel Certificates.................................................................................17
		

		
			5.13Confidentiality...........................................................................................................17
		

		
			5.14Further Assurances.................................................................................................17
		

		
			ARTICLE 6 CONDITIONS TO CLOSING17
		

		
			6.1Conditions to Obligation of the Purchaser...............................................................17
		

		
			6.2Conditions to Obligation of the Seller.......................................................................17
		

		
			6.3Mutual Conditions to Closing...................................................................................18
		

		
			ARTICLE 7 INDEMNIFICATION18
		

		
			7.1Survival.......................................................................................................................18
		

		
			7.2Indemnification by the Seller; Indemnification by the Purchaser...............................18
		

		
			7.3Limitations on Indemnification..................................................................................19
		

		
			7.4Indemnification Claim Process................................................................................20
		

		
			7.5Indemnification Procedures for Non-Third Party Claims...........................................21
		

		
			7.6Exclusive Remedy...................................................................................................21
		

		
			7.7Calculation of Losses; Limitations...........................................................................22
		

		
			7.8Tax Treatment of Indemnity Payments.....................................................................22
		

		
			ARTICLE 8 TERMINATION22
		

		
			8.1Termination.............................................................................................................22
		

		
			8.2Effect of Termination...............................................................................................22
		

		
			ARTICLE 9 MISCELLANEOUS23
		

		
			9.1Expenses.................................................................................................................23
		

		
			9.2Public Announcements.............................................................................................23
		

		
			9.3Amendment.............................................................................................................23
		

		
			9.4Waiver.........................................................................................................................23
		

		
			9.5Entire Agreement.....................................................................................................23
		

		
			9.6Headings.................................................................................................................23
		

		
			9.7Notices.......................................................................................................................23
		

		
			9.8Exhibits and Schedules............................................................................................24
		

		
			9.9Binding Effect; Assignment.......................................................................................25
		

		
			9.10No Third Party Beneficiary.......................................................................................25
		

		
			9.11Counterparts.............................................................................................................25
		

		
			9.12Governing Law and Jurisdiction...............................................................................25
		

		
			9.13Consent to Jurisdiction and Service of Process.......................................................25
		

		
			9.14WAIVER OF JURY TRIAL.........................................................................................25
		

		
			9.15Conveyance Taxes...................................................................................................25
		

		
			9.16Specific Performance...............................................................................................26
		

		
			9.17Severability...............................................................................................................26
		

		
			
		

		
			

		 

		

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			Appendix A Definitions 
		

		
			Exhibits

Exhibit A.1Store Locations
		

		
			Exhibit A.2Base Amount
		

		
			Exhibit A.3Minimum Rent Chart
		

		
			Exhibit BForm of Transition Services Agreement 
		

		
			Exhibit CForm of Bill of Sale
		

		
			Exhibit DForm of Sublease
		

		
			Exhibit EAllocation Schedule
		

		
			Schedules

Schedule 1.2(a)Inventory Value
		

		
			Schedule 3.3No Defaults or Conflicts
		

		
			Schedule 3.6Real Property
		

		
			Schedule 3.7(c)Leases; Written Notice of Default
		

		
			Schedule 3.7(e)Leases; Written Notice of Pending Condemnation or Eminent Domain Proceeding
		

		
			Schedule 3.7(h)Prior Year Minimum and Additional Rent
		

		
			Schedule 3.8(a)Title to Purchased Assets; Inventory
		

		
			Schedule 3.8(b)Physical Inventory Dates
		

		
			Schedule 3.13Fixed Assets
		

		
			Schedule 3.14(a)Employee Benefit Plans
		

		
			Schedule 3.14(c)Seller Employee 401(k) Plan Account Balance Loans
		

		
			Schedule 5.3(a)Employee Matters
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

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			ASSET PURCHASE AGREEMENT
		

		
			This ASSET PURCHASE AGREEMENT (this “Agreement”), dated as of September 28, 2019, is entered into by and between Dick’s Sporting Goods, Inc., a Delaware corporation (the “Seller”), and Sportsman’s Warehouse, Inc., a Utah corporation (the “Purchaser”).
		

		
			RECITALS
		

		
			WHEREAS, the Seller desires to sell to the Purchaser, and the Purchaser desires to acquire from the Seller,  (i) at least five  (5) and up to eight (8) of the stores located at the locations as set forth on Exhibit A.1 attached hereto (subject to Section ‎6.3,  collectively, the “Transferred Locations”), and (ii) the Purchased Assets  (as defined herein) located at such Transferred Locations, in the manner and subject to the terms and conditions set forth herein.
		

		
			WHEREAS, the parties hereto desire that the Purchaser assume the Assumed Liabilities in the manner and subject to the terms and conditions set forth herein.
		

		
			WHEREAS,  capitalized terms used herein shall have the meanings ascribed herein and as set forth on Appendix A to this Agreement.
		

		
			NOW THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements contained herein, and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties to this Agreement agree as follows:
		

			
	
			
				ARTICLE 1
			

PURCHASE AND SALE OF PURCHASED ASSETS;  PURCHASE PRICE

			
	
			
				 1.1
			Agreement to Sell and Purchase.

			
	
			
				 (a)
			At the Closing, subject to the terms and conditions of this Agreement, the Seller shall grant, sell, convey, assign, transfer, and deliver to the Purchaser, and the Purchaser shall purchase from the Seller, free and clear of all Encumbrances (other than Permitted Encumbrances), all right, title, and interest of the Seller in and to only the following assets, properties, and rights set forth in this Section 1.1(a), used, held for use or located at the Transferred Locations to the extent that such assets, properties, and rights exist as of the Closing Date and exclusively relate to the Transferred Locations, subject to, in each case, the applicable Sublease (collectively, the “Purchased Assets”):

			
	
			
				 (i)
			all Cash located at the Transferred Locations as of the Closing Date;

			
	
			
				 (ii)
			all inventory (including the Private Label Inventory)  on hand at  the Transferred Locations,  including finished goods, samples, labels and packaging materials, as of the Closing Date (“Inventory”);

			
	
			
				 (iii)
			all furniture, fixtures, machinery, equipment, supplies, computer hardware and accessories, personal property and furnishings located at the Transferred Locations as of the Closing Date (the “Fixed Assets”); 

		
			

		 

		

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				 (iv)
			the personnel and employment records for the Transferred Employees (to the extent permissible under applicable Law) (collectively, the “Books and Records”);   and

			
	
			
				 (i)
			all rights of the Seller under or pursuant to all warranties, representations and guarantees made by suppliers or manufacturers of the Private Label Inventory in the ordinary course of business.

			
	
			
				 (b)
			As this Agreement does not contemplate the sale of a going-concern business, other than the Purchased Assets subject to Section ‎1.1(a),  the Purchaser expressly understands and agrees that it is not at the Closing purchasing or acquiring, and the Seller is not selling or assigning, any other assets or properties of the Seller, and all such other assets and properties, including, but not limited to (i) any Contracts that are applicable and provide benefits or obligations to any location of the Seller that is not a Transferred Location, regardless of whether such Contract also benefits a Transferred Location, (ii) any software and other intangible technology-related services, (iii) except as set forth in Section ‎5.2,  any signage bearing the DSG Name or any of the Seller’s trademarks, (iv) any checks made out to the Seller or to an Affiliate of the Seller,  and (v) any Federal Firearm License or state or local permits related to the sale of firearms, shall be excluded from the Purchased Assets (collectively, the “Excluded Assets”).

			
	
			
				 1.2
			Calculation of Purchase Price. 

		
			 
		

			
	
			
				 (a)
			As consideration for the transactions contemplated by this Agreement,  at the Closing, the Purchaser shall pay or cause to be paid to the Seller, by wire transfer of immediately available funds to an account designated by the Seller in writing, an aggregate amount equal to the sum of (the “Purchase Price”): (i) the Base Amount,  plus (ii) fifty percent (50%) of the Inventory Value,  plus (iii) the Closing Cash. 

			
	
			
				 (b)
			The Purchase Price shall be calculated for each Transferred Location on a store-by-store basis.

			
	
			
				 1.3
			Assumption of Liabilities.

			
	
			
				 (a)
			At the Closing, as additional consideration for the purchase of the Purchased Assets, the Purchaser shall assume and agree to pay, discharge, or perform, as appropriate, when due only the following Liabilities of the Seller (the “Assumed Liabilities”) to the extent that such Liabilities first arise or accrue on and after the Closing Date, relate to the period on and after the Closing Date and are not included in the Excluded Liabilities: 

			
	
			
				 (i)
			all Liabilities for (A)  Taxes relating to the Transferred Locations, the Purchased Assets or the Assumed Liabilities on or after the Closing Date, (B)  Taxes for which the Purchaser is liable pursuant to Section ‎5.5(b) and Section ‎9.15, and (C) Taxes under any Sublease relating to the Post-Closing Period;  

			
	
			
				 (i)
			all Liabilities (including claims made for environmental matters) arising out of or relating to the Purchaser’s (A) operation of the stores located at the Transferred Locations and (B) ownership and use of the Purchased Assets on or after the Closing; and

			
	
			
				 (i)
			the Liabilities related to the Leases to the extent expressly set forth in any Sublease.

		
			

		 

		

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				 (a)
			Notwithstanding anything in this Agreement or any other agreement or instrument entered into in connection herewith to the contrary, and regardless of any disclosure by the Seller, the Seller shall retain and remain responsible for paying, performing and discharging when due, and the Purchaser shall not assume or otherwise be responsible for, all Liabilities of the Seller and its Affiliates other than the Assumed Liabilities (collectively, the “Excluded Liabilities”), including but not limited to the following:

			
	
			
				 (i)
			all Liabilities arising out of or relating to (A) the operation of the Transferred Locations or (B) the ownership or use of the Purchased Assets, in each case prior to the Closing Date;

			
	
			
				 (ii)
			any and all Seller Taxes;

			
	
			
				 (iii)
			all Liabilities arising out of or relating to the Excluded Assets, in each case whether arising prior to, on or after the Closing Date;

			
	
			
				 (iv)
			any Liabilities related to the Leases prior to the Closing Date except as may be expressly set forth otherwise in any Sublease;

			
	
			
				 (v)
			all Indebtedness of the Seller;

			
	
			
				 (vi)
			all Liabilities arising out of or relating to the employment or engagement, potential employment or engagement or termination of employment or engagement of any Person (including the Seller Employees) by the Seller in respect of any period prior to the Closing, including all Liabilities arising from (A) the misclassification of any employee as exempt from the requirements of the Fair Labor Standards Act or analogous applicable Laws of any state, (B) the misclassification of any employee as an independent contractor, (C) collective bargaining agreements or other agreements with a labor union or equivalent organization or (D) a “plant closing” or a “mass layoff” (as such terms are defined in the WARN Act) or other transaction, layoff, reduction in force or employment terminations sufficient in number to trigger application of the WARN Act or any similar state laws, in each case with respect to the Transferred Locations.

			
	
			
				 (vii)
			all Liabilities arising out of or relating to any employee benefit or compensation plan, program, policy, agreement or arrangement (whether or not subject to ERISA) sponsored, maintained or contributed to by the Seller or any of its current or former ERISA Affiliates, including (A) all Liabilities arising under or with respect to any of the Employee Benefit Plans,  Title IV of ERISA or Section 302 of the Code, (B) all salaries, wages, commissions, bonuses (including any bonuses due in connection with the Transaction or for any period prior to or including the Closing Date), deferred compensation, vacation pay and other paid time off and other employee benefits of any nature that are payable or owed to any current or former employee or independent contractor of the Seller (including the Seller Employees) in respect of services rendered, or welfare benefit claims incurred (including any claims incurred but not reported), prior to or as of the Closing Date, (C) all Liabilities (including severance and related obligations) arising out of, relating to or in respect of the termination of any employee or independent contractor of the Seller prior to or at the Closing, including all Liabilities arising under the obligation to provide health care “continuation coverage” to such individuals and their covered dependents under the health plans of the Seller, the Purchaser or any of their Affiliates with respect to all qualifying events under COBRA that occur prior to or as of the Closing, and (D) all Liabilities for workers’ compensation and short- or long-term disability claims that relate to events occurring prior to or as of the Closing;

		
			

		 

		

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				 (viii)
			all Liabilities arising prior to or as of the Closing to indemnify, reimburse or advance amounts to any current or former director, officer, manager, shareholder, employee, independent contractor or other agent of the Seller; and

			
	
			
				 (ix)
			all obligations of the Seller under this Agreement and the Ancillary Agreements to which it is a party.

			
	
			
				 1.4
			Transactions to be Effected at the Closing.  At or prior to the Closing, the following transactions shall be effected by the parties:

		
			 
		

			
	
			
				 (a)
			The Seller shall deliver or cause to be delivered at or prior to the Closing to the Purchaser or such other Persons as set forth below:

			
	
			
				 (i)
			the Closing Statement (including a list of all Fixed Assets by Transferred Location), which statement shall be prepared in good faith by the Seller and delivered to the Purchaser at least three (3) Business Days prior to the Closing;

			
	
			
				 (ii)
			a  Transition Services Agreement related to the Transferred Locations, duly executed by the Seller, in substantially the form attached hereto as Exhibit B (the  “Transition Services Agreement”);

			
	
			
				 (iii)
			a  Bill of Sale and Assignment and Assumption Agreement related to the Purchased Assets,  duly executed by the Seller, in substantially the form attached hereto as Exhibit C (the  “Bill of Sale”);

			
	
			
				 (iv)
			with respect to each Transferred Location, a Sublease duly executed by the Seller,  in substantially the form attached hereto as Exhibit D (each a “Sublease”), provided that the Sublease for each Transferred Location shall provide for the Minimum Rent as set forth on Exhibit A.3;

			
	
			
				 (v)
			a certificate executed by the Secretary of the Seller as of the Closing Date (A) attaching a  certificate issued by the Secretary of State of the State of Delaware, certifying that the Seller has legal existence and is in good standing in the State of Delaware as of a date that is no earlier than ten (10) Business Days prior to the Closing Date; and (B) confirming the satisfaction of the conditions specified in Section ‎6.1(a) and Section ‎6.1(b);  

			
	
			
				 (vi)
			the Books and Records; 

			
	
			
				 (vii)
			a certificate, in form and substance satisfactory to the Purchaser, as to the non-foreign status of the Seller pursuant to Section 1.1445-2(b)(2) of the United States Treasury Regulations, duly executed by the Seller; and 

			
	
			
				 (viii)
			all other documents, instruments or writings required to be delivered to the Purchaser at or prior to the Closing pursuant to this Agreement,  provided that, in no event shall this section apply to or be deemed to require any landlord or lessor estoppel certificate.

		
			

		 

		

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				 (b)
			The Purchaser shall deliver or cause to be delivered at the Closing to the Seller or such other Person as set forth below:

			
	
			
				 (i)
			the Purchase Price by wire transfer of immediately available funds to the bank account designated in writing by the Seller;  

			
	
			
				 (ii)
			the Transition Services Agreement related to the Transferred Locations, duly executed by the Purchaser;

			
	
			
				 (iii)
			the Bill of Sale related to the Transferred Locations, duly executed by the Purchaser;

			
	
			
				 (iv)
			with respect to each Transferred Location,  a  Sublease duly executed by the Purchaser;

			
	
			
				 (v)
			a certificate executed by the Secretary of the Purchaser as of the Closing Date (A)  certifying as to true and complete copies of the resolutions adopted by the board of directors of the Purchaser authorizing the execution, delivery and performance of this Agreement; (B) attaching a  certificate issued by the Secretary of State of the State of Utah, certifying that the Purchaser has legal existence and is in good standing in such state as of a date that is no earlier than ten (10) Business Days prior to the Closing Date; and (C) confirming the satisfaction of the conditions specified in Section ‎6.2(a) and Section ‎6.2(b); 

			
	
			
				 (vi)
			the Guaranty of Sublease Agreement for each Transferred Location, duly executed by Sportsman’s Warehouse Holdings, Inc., a Delaware corporation, in the form attached to each Sublease as Exhibit B; and

			
	
			
				 (vii)
			all other documents, instruments or writings required to be delivered to the Seller at or prior to the Closing pursuant to this Agreement, and such other certificates of authority and documents as the Seller may reasonably request.

			
	
			
				 1.5
			[Intentionally omitted.] 

			
	
			
				 1.6
			Allocation of Purchase Price.  The Purchase Price shall be allocated among the Purchased Assets in accordance with the allocation principles set forth on the allocation schedule attached hereto as Exhibit E (the “Allocation Schedule”).  Neither the Seller nor the Purchaser will take a position on any income tax return, before any Governmental Authority charged with the collection of any tax, or in any judicial proceeding that is in any way inconsistent with the terms of this Section 1.6 or the Allocation Schedule unless otherwise required by a final “determination” (within the meaning of Section 1313(a) of the Code),  and the Seller and the Purchaser shall file Form 8594 with the IRS in a manner consistent with this allocation.  Notwithstanding the Allocation Schedule, each party agrees that (a) the Allocation Schedule shall not affect the enforceability of the restrictive covenants set forth in Section ‎5.10 (the “Restrictive Covenants”), which the parties intend to be enforceable in accordance with the terms of Section ‎5.10, and (b) the Allocation Schedule shall not be an indication of the Losses to which the Purchaser Indemnitees will be entitled in the event of a breach of any of the Restrictive Covenants.

		
			 
		

		
			

		 

		

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				ARTICLE 2
			

THE CLOSING

			
	
			
				 2.1
			Closing;  Closing Date.  Subject to the terms and conditions of this Agreement, the closing of the Transaction (the “Closing”) shall take place at 9:00 a.m. Eastern Time, on October 11, 2019 following the satisfaction or waiver of each of the conditions to the Closing set forth in ARTICLE 6 (other than conditions which, by their nature, are to be satisfied on the Closing Date), (i) by the electronic exchange of documents, with the Seller’s documents being transmitted from the offices of Reed Smith LLP in Pittsburgh, Pennsylvania and the Purchaser’s documents being transmitted from the offices of Ballard Spahr LLP in Minneapolis, Minnesota or (ii) at such other place, time or date as may be mutually agreed upon in writing by the parties (such date on which the Closing actually occurs being referred to herein as the “Closing Date”).  The Closing shall be deemed effective for Tax and accounting purposes at 12:00:01 a.m. Eastern Time on the Closing Date.

		
			 
		

			
	
			
				 2.2
			Additional Actions.  Following the Closing, the Seller and the Purchaser shall each deliver or cause to be delivered at such times and places as shall be reasonably requested such deeds, bills of sale, assignments, assurances or other instruments and shall perform any actions as the Purchaser and the Seller may reasonably request for the purpose of vesting, perfecting or confirming of record or otherwise in the Purchaser its right, title or interest in, to or under any of the Purchased Assets or otherwise carrying out the transactions contemplated by this Agreement with respect to the Closing.

		
			 
		

			
	
			
				ARTICLE 3
			

REPRESENTATIONS AND WARRANTIES OF THE SELLER

		
			As a material inducement to the Purchaser to enter into this Agreement, the Seller represents and warrants to the Purchaser that the statements contained in this ‎ARTICLE 3 are true and correct as of the date hereof.
		

			
	
			
				 3.1
			Organization and Qualification.  The Seller is a corporation duly formed, validly existing and in good standing under the Laws of the State of Delaware.  The Seller has all requisite corporate power and authority to lease and operate the Transferred Locations and carry on the business therein as presently leased or operated.  The Seller has at all times since January 1, 2018, been qualified, licensed or registered to transact business as a foreign entity and is in good standing (or the equivalent thereof) in each jurisdiction in which the ownership or lease of the Transferred Locations or the conduct of the business therein requires such qualification, license or registration, except where the failure to be so qualified, licensed or registered or in good standing (or the equivalent thereof) would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

		
			 
		

			
	
			
				 3.2
			Binding Obligation.  The Seller has all requisite corporate authority and power to execute, deliver and perform this Agreement and the other Transaction Documents and to consummate the transactions contemplated hereby and thereby.  This Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by all required corporate action on the part of the Seller and no other corporate proceedings on the part of the Seller are necessary to authorize the execution, delivery and performance of this Agreement or the other Transaction Documents and the consummation by the Seller of the transactions contemplated hereby and thereby.  This Agreement has been duly executed and delivered, and the other Transaction Documents will have been duly executed and delivered at the Closing, by the Seller and, assuming that this Agreement constitute, and the other Transaction Documents will constitute at the Closing,  the legal, valid and binding obligation of the Purchaser,  constitute (or with respect to the other Transaction Documents will 

		 

		

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	constitute at the Closing)  the legal, valid and binding obligations of the Seller, enforceable against the Seller in accordance with their terms, except to the extent that the enforceability thereof may be limited by (a)  applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or similar Laws from time to time in effect affecting generally the enforcement of creditors rights and remedies, and (b)  general principles of equity (collectively, the “Equitable Exceptions”).

		
			 
		

			
	
			
				 3.3
			No Defaults or Conflicts.  Except as set forth in Schedule ‎3.3, the due execution, delivery and performance by the Seller of this Agreement and the other Transaction Documents and the consummation by the Seller of the transactions contemplated hereby and thereby (a) do not conflict with or violate the certificate of incorporation or bylaws of the Seller,  (b)  do not, in any respect, conflict with, or result in a breach of any of the terms or provisions of, or constitute a default, or require any consent of, notice or payment to or other action by any Person, under any material Contract (excluding any lease or sublease of real property and assuming the accuracy of the representations and warranties made by the Purchaser in Section ‎4.7)  or Permit that exclusively relate to the Transferred Locations,  (c) do not conflict with or violate any applicable Law or Order of any Governmental Authority having jurisdiction over the Seller with respect to the Transferred Locations and the Purchased Assets, in any material respect or (d) will not result in the creation or imposition of any Encumbrance (other than a Permitted Encumbrance) upon any of the Transferred Locations or the Purchased Assets.

		
			 
		

			
	
			
				 3.4
			No Material Contracts.  The Seller is not a party to or otherwise bound by any material Contract (excluding any lease or sublease of real property) that is applicable and provides benefits exclusively to the Transferred Locations or the Purchased Assets.

		
			 
		

			
	
			
				 3.5
			Employee and Labor Matters.

		
			 
		

			
	
			
				 (a)
			Since January 1, 2018 through (and including) the date of this Agreement with respect to the Transferred Locations, (i) there has not been nor is there pending or, to the Seller’s Knowledge, threatened, any labor strike, walk-out, slowdown, work stoppage or lockout with respect to the Transferred Locations,  (ii)  the Seller has not received written notice of any unfair labor practice charges against the Seller relating to the Transferred Locations by the National Labor Relations Board or any similar state, local or foreign Governmental Authority,  and (iii)  the Seller has not received written notice of any pending or in progress and, to the Seller’s Knowledge, there are no threatened, suits, actions or other proceedings in connection with the Transferred Locations before the Equal Employment Opportunity Commission or any similar state, local or foreign Governmental Authority responsible for the prevention of unlawful employment practices.

			
	
			
				 (b)
			The Seller has provided the Purchaser a true, complete and correct list of the following information with respect to each Seller Employee:  (i) name, (ii) title or position held, (iii) date of hire, (iv) total length of employment or service including any prior service credit that would affect the calculation of years of service for any purpose, (v) classification as exempt or non-exempt, (vi) status as full- or part-time, (vii) hourly rate or base salary and commissions, (viii) accrued bonus, if any, as of the date hereof, and (ix) accrued but unused vacation and other paid-time-off entitlements as of the date hereof.

			
	
			
				 (c)
			Each current Seller Employee is an “at-will” employee or an independent contractor whose employment or engagement, respectively, may be terminated at any time without advance notice by or Liability to the Seller.  The Seller has provided the Purchaser with a list of the Seller Employees who (i) are on a paid or unpaid medical, disability, family or other leave of absence, or (ii) have given written notice of termination of his or her employment or engagement.

		
			

		 

		

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				 3.6
			Real Property.  The Seller does not own any real property associated with the Transferred Locations.  Schedule ‎3.6 contains a true, correct and complete list of all leases, subleases and licenses relating to the Transferred Locations as of the date hereof (all such leases, subleases and licenses and any related documents, collectively, in each case, as the same may have been amended, supplemented or otherwise modified, the “Leases”).

		
			 
		

			
	
			
				 3.7
			Leases. With respect to the Leases: (a)  the Leases are in full force and effect; (b)  the Seller has not received written notice from any lessor or landlord claiming the Seller is in default under any Lease beyond applicable notice and cure periods; (c)  except as set forth in Schedule ‎3.7(c),  the Seller has not provided to any landlord or lessor, as applicable, under the Leases,  a written notice of default; (d)  the Seller has not received any written notice that the use of the Transferred Locations as utilized by the Seller in the prior three (3) years violates any applicable building, zoning or other similar law that has not otherwise been corrected or cured, or which, if uncorrected or uncured, would result in a Material Adverse Effect;  (e)  except as set forth on Schedule ‎3.7(e), the Seller has not received any written notice of any pending condemnation or eminent domain proceeding with respect to the Transferred Locations;  (f) the Seller has not received any written notice of violation by the Seller of any Environmental Law or release by the Seller of any Hazardous Materials at the demised premises under any of the Leases; (g) the Seller has not received any written notice of actual or threatened special assessments that are not already accounted for in Schedule ‎3.7(h); and (h) the amounts set forth on Schedule 3.7(h) are the amounts paid by the Seller in the prior calendar year, lease year or tax year, as applicable, for minimum rent and additional rent (real estate taxes, lessor’s insurance, and common area maintenance) with respect to each of the Transferred Locations.

		
			 
		

			
	
			
				 3.8
			Title to Purchased Assets; Inventory.

		
			 
		

			
	
			
				 (a)
			Except as set forth on Schedule ‎3.7(c),  Schedule ‎3.7(e), and Schedule ‎3.8(a),  the Seller has good and valid title to, or a valid leasehold interest in, all of the Purchased Assets,  including all Inventory free and clear of all Encumbrances except for Permitted Encumbrances.  The Seller has, and the Purchaser shall receive at the Closing, good and marketable title to, and exclusive possession of (with the exception of possession of Purchased Assets that are firearms, as that term is defined in 18 U.S.C. §921(a)(3), possession of which shall be governed by the Transition Services Agreement) the Purchased Assets, free and clear of all Encumbrances except for Permitted Encumbrances.    

			
	
			
				 (b)
			The Seller conducted the physical inventories at the Transferred Locations in the ordinary course of the Seller’s business, consistent with past practice, on the dates set forth on Schedule ‎3.8(b) (collectively, the “Physical Inventories”).  Each of the Physical Inventories was conducted in accordance with the Seller’s internal controls over financial reporting, the effectiveness of which is assessed pursuant to the requirements of the Securities Exchange Act of 1934, as amended.  Since the date of the applicable Physical Inventories, there have been no material increases or decreases in the quality or quantity of inventories of the applicable Transferred Location except in the ordinary course of business consistent with past practice. The Inventory is of a quality and quantity normally maintained by the Seller in the ordinary course of business consistent with past practice, and,  is being transferred on an “as is, where is” basis.  No Inventory has been consigned (that is, delivered but not sold or sold with an unlimited right of return) to any Person.  Since December 31, 2018, there have been no material increases or decreases in the inventories of the Transferred Locations except in the ordinary course of business consistent with past practice. 

			
	
			
				 3.9
			Legal Proceedings.  Except as disclosed in Schedule ‎3.7(e), there are no material actions, suits, claims, investigations or other legal proceedings pending or, to the Seller’s Knowledge, threatened against or by the Seller relating to or affecting the Transferred Locations, the Purchased Assets or the Assumed Liabilities in the past three (3) years.    

		
			 
		

		
			

		 

		

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				 3.10
			Permits.    All Permits required for the Seller to conduct the Seller’s  business as currently conducted at the Transferred Locations or for the ownership and use of the Purchased Assets have been obtained by the Seller and are valid and in full force and effect, except where the failure to obtain such Permits would not have, individually or in the aggregate, a Material Adverse Effect.

		
			 
		

			
	
			
				 3.11
			Brokers.    No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of the Seller.

		
			 
		

			
	
			
				 3.12
			Tax Matters.

		
			 
		

			
	
			
				 (a)
			The Seller has timely filed with the appropriate Governmental Authorities all material Tax Returns that it was required to file on or prior to the Closing Date, all such Tax Returns were true, complete and correct in all material respects when filed, and all material Taxes that are due and payable by the Seller with respect to Pre-Closing Periods, whether or not shown on any Tax Returns (including any Taxes required to be withheld from amounts owing to any Transferred Employees), have been timely paid in full.

			
	
			
				 (b)
			The Seller has complied in all material respects with applicable Laws relating to the payment and withholding of Taxes and has, within the time and the manner prescribed by applicable Law, withheld and paid over to the appropriate Governmental Authority all material amounts required to be so withheld and paid over under all applicable Laws in connection with amounts paid or owning to any employee, independent contractor, creditor, shareholder or other third party.  The Seller has complied in all material respects with all applicable Laws relating to sales, value-added, property and similar Taxes.

			
	
			
				 3.13
			Fixed Assets.  Schedule 3.13 sets forth, and the list of Fixed Assets to be included on the Closing Statement will set forth, a true, correct and complete list of all Fixed Assets as of its respective date.  The Fixed Assets are being transferred on an “as is, where is” basis, and, to the Knowledge of the Seller, (a) the Fixed Assets are in normal operating condition (subject to routine maintenance and repair for similar assets of like age), (b) no major repairs are necessary concerning the Fixed Assets, and (c) the Fixed Assets comply in all material respects with all applicable Laws. 

		
			 
		

			
	
			
				 3.14
			Employee Benefits.

		
			 
		

			
	
			
				 (a)
			The Seller has provided the Purchaser copies of the Employee Benefit Plans offered to the Seller Employees, and at least three (3) Business Days prior to the Closing Date, the Seller will list such Employee Benefit Plans on Schedule 3.14(a).  Each Employee Benefit Plan (and each related trust, insurance contract or fund) covering any Seller Employee has been maintained, funded and administered in material compliance with the terms of the applicable Employee Benefit Plan and with all applicable Laws (including ERISA and the Code).

			
	
			
				 (b)
			Each Employee Benefit Plan covering any Seller Employee that is intended to be “qualified” within the meaning of Section 401(a) of the Code has received a favorable and current determination letter from the IRS, or is a prototype plan that is entitled, under applicable IRS guidance, to rely on a favorable opinion letter from the IRS to the prototype plan sponsor, as to the tax qualification of such Employee Benefit Plan under Section 401(a) of the Code and the exemption of the related trust from federal income taxation under Section 501(a) of the Code, and, to the Seller’s Knowledge,  no fact or event has occurred since the date of such letter that would reasonably be expected to adversely affect such tax qualified status or tax exempt status.

		
			

		 

		

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				 (c)
			Except as set forth on Schedule 3.14(c), no Seller Employee has any outstanding loan(s) against such Seller Employee’s account balance(s) in the Dick’s Sporting Goods,  Inc. Smart Savings 401(k) Plan.

			
	
			
				 3.15
			Compliance with Laws.  The Seller has complied in all material respects with all Laws applicable to the Transferred Locations and the Purchased Assets, and no action, suit, proceeding, hearing, investigation, charge, complaint, claim, demand or notice has been filed or commenced against the Seller alleging any failure to so comply.  The Seller has not received any notice or communication from any Person alleging or relating to any violation of any Law by the Seller applicable to the Transferred Locations or the Purchased Assets.    

		
			 
		

			
	
			
				 3.16
			Exclusivity of Representations.  Other than as set forth in any other Transaction Document (including without limitation any Sublease), (a) the representations and warranties made by the Seller in this Agreement are the exclusive representations and warranties made by the Seller and (b) the Seller hereby disclaims any other express or implied representations or warranties.  The Seller is not, directly or indirectly, making any representations or warranties regarding any pro-forma financial information, financial projections or other forward-looking statements of the Seller.

		
			 
		

			
	
			
				ARTICLE 4
			

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

		
			As a material inducement to the Seller to enter into this Agreement, the Purchaser represents and warrants to the Seller that the statements contained in this ‎ARTICLE 4 are true and correct as of the date hereof.
		

			
	
			
				 4.1
			Organization.  The Purchaser is a corporation duly formed, validly existing and in good standing under the Laws of the State of Utah.  The Purchaser has all requisite corporate power and authority to own, lease and operate its properties and carry on its business as presently owned or conducted.

		
			 
		

			
	
			
				 4.2
			Binding Obligation.  The Purchaser has all requisite corporate authority and power to execute, deliver and perform this Agreement and the other Transaction Documents and to consummate the transactions contemplated hereby and thereby.  This Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by all required corporate action on the part of the Purchaser and no other corporate proceedings on the part of the Purchaser are necessary to authorize the execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby by the Purchaser.  This Agreement has been duly executed and delivered, and the other Transaction Documents will have been duly executed and delivered at the Closing, by the Purchaser and, assuming that this Agreement constitute, and the other Transaction Documents will constitute at the Closing,  the legal, valid and binding obligation of the Seller, constitute (or with respect to the other Transaction Documents will constitute at the Closing) the legal, valid and binding obligations of the Purchaser, enforceable against the Purchaser in accordance with their terms, except to the extent that the enforceability thereof may be limited by the Equitable Exceptions.

		
			 
		

			
	
			
				 4.3
			No Defaults or Conflicts.  The due execution, delivery and performance by the Purchaser of this Agreement and the other Transaction Documents and the consummation by the Purchaser of the transactions contemplated hereby and thereby (a) do not conflict with or violate the articles of incorporation or bylaws of the Purchaser,  (b)  do not, in any respect, conflict with, or result in a breach of any of the terms or provisions of, or constitute a default, or require any consent of, notice or payment to or other action by any Person,  under any indenture, mortgage or loan or any other agreement or instrument to 

		 

		

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	which the Purchaser is a party or by which it is bound or to which its properties are subject, and (c) do not conflict with or violate any applicable Law or Order of any Governmental Authority having jurisdiction over the Purchaser, in any material respect.

		
			 
		

			
	
			
				 4.4
			Legal Proceedings.  There is no claim, action, suit or legal proceeding pending or to the knowledge of the Purchaser, threatened against the Purchaser or any material portion of its assets or properties before any Governmental Authority that, if determined or resolved adversely to the Purchaser,  would reasonably be expected, individually or in the aggregate, to materially impair the Purchaser’s ability to perform its obligations under this Agreement or the other Transaction Documents.

		
			 
		

			
	
			
				 4.5
			Brokers.  No broker, finder or similar intermediary has acted for or on behalf of the Purchaser in connection with this Agreement or the other Transaction Documents or the transactions contemplated hereby or thereby, and no broker, finder, agent or similar intermediary is entitled to any broker’s, finder’s or similar fee or other commission in connection therewith based on any agreement with the Purchaser or any action taken by the Purchaser.

		
			 
		

			
	
			
				 4.6
			Independent Investigation.  The Purchaser has conducted its own independent investigation, review and analysis of the Transferred Locations, the Leases, files related to the Leases provided by Seller, and the Purchased Assets, and acknowledges that it has been provided adequate access to the personnel, properties, assets, premises, books, records, Leases, files related to the Leases, and other documents and data of the Seller for such purpose. The Purchaser acknowledges and agrees that: (a) in making its decision to enter into this Agreement and to consummate the transactions contemplated hereby, the Purchaser has relied solely upon its own investigation and the express representations and warranties of the Seller set forth in this Agreement (including related portions of the Schedules) and the other Transaction Documents (including without limitation the Subleases), (b) neither the Seller nor any other Person has made any representation or warranty as to the Seller, the Transferred Locations, the Purchased Assets or this Agreement, except as expressly set forth in this Agreement (including related portions of the Schedules) and the other Transaction Documents (including without limitation the Subleases), and (c) in making its decision to enter into this Agreement and consummate the transactions contemplated hereby, the Purchaser has relied solely upon its own review and analysis of the Leases, together with the review of files related to the Leases, and the express representations and warranties of the Seller set forth in this Agreement (including related portions of the Schedules) and the other Transaction Documents (including without limitation the Subleases)  with respect to any and all Encumbrances,  restrictions, covenants,  rules and regulations, and other similar matters affecting the Leases and/or the Transferred Locations.

		
			 
		

			
	
			
				 4.7
			Retail Operations.  The retail operations of the Purchaser and each of its Affiliates executing a Sublease hereunder: (a) do not involve the sale or display of used merchandise or second hand goods, except for the sale of used firearms and related supplies on an incidental basis; (b) do not involve the sale of goods at closeout or heavy discount prices; and (c) are compatible with and of a type customarily found in first class shopping centers. In addition, the Purchaser hereby represents and warrants to the Seller that the Purchaser (i) operates a first class retail business; (ii) currently has a total net worth of not less than Eighty Two Million Dollars ($82,000,000);  (iii) has the financial ability to perform all obligations of the Seller under each of the respective Leases;  (iv) has conducted retail operations for over thirty (30) years; and (v) currently operates more than ninety (90) stores in twenty five (25) states.  The Purchaser acknowledges that (x) the representations and warranties contained in this Section 4.7 are fundamental representations and warranties, (y) the Seller has relied upon the representations and warranties set forth in this Section ‎4.7 in making any representations and/or warranties with respect to any consents or third party approvals necessary to complete the Transaction, and (z) the Seller’s ability to consummate the Transaction is dependent upon the completeness and accuracy of the representations and warranties set forth in this Section ‎4.7.

		
			 
		

		
			

		 

		

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				ARTICLE 5
			

COVENANTS

			
	
			
				 5.1
			Conduct of the Transferred Locations Prior to the Closing.  From the date hereof until the Closing, except as otherwise provided in this Agreement, otherwise permitted under the form of Sublease, or consented to in writing in advance by the Purchaser (which consent shall not be unreasonably withheld or delayed), the Seller shall conduct the business at the Transferred Locations in the ordinary course of business.

		
			 
		

			
	
			
				 5.2
			Use of DSG Name and the Seller’s Trademarks.  The Purchaser and its Affiliates (including Sportsman’s Warehouse Holdings, Inc., a Delaware corporation),  have no right in or to, and shall not use, the DSG Name or any of the Seller’s trademarks (including “Field & Stream” and any related trademarks) for any purpose whatsoever; provided,  however, that for a period equal to a maximum of ninety  (90) days following the Closing, the Purchaser may utilize the DSG Name and the Seller’s trademarks (including “Field & Stream” and any related trademarks) in the operation of the stores at the Transferred Locations.  Notwithstanding the foregoing and for the avoidance of doubt, the parties agree and acknowledge that images and displays located in the Transferred Locations at the Closing that do not include the DSG Name,  any of the Seller’s trademarks (including “Field & Stream” and any related trademarks), or any intellectual property of any third party, may be retained and used by the Purchaser indefinitely.

		
			 
		

			
	
			
				 5.3
			Employee Matters.

		
			 
		

			
	
			
				 (a)
			Prior to the Closing, the Seller shall facilitate and cooperate with reasonable requests of the Purchaser in any application, interview, background check and hiring processes of the Purchaser.  The Purchaser will determine which of the Seller Employees to whom it wishes to extend conditional offers of at-will employment; provided that the Purchaser shall extend such offers to substantially all (excluding the “Responsible Persons,” as defined below) of the Seller Employees, including the Seller Employees as described on Schedule 5.3(a).  Any such offers will be subject to the candidate passing the Purchaser's background check process (including any drug and credit screening checks as applicable).

			
	
			
				 (b)
			Following the close of business on the Closing Date, and except as may be set forth in the Transition Services Agreement, the Seller shall terminate as of the Closing Date those Seller Employees that have been extended offers of at-will employment with the Purchaser, and the Seller will remain liable for all Liabilities relating to such employees and its former employees that arise out of or relate to the period prior to the Closing.  Immediately following the Closing, the Purchaser shall or shall cause its Affiliates to, make offers of at-will employment to such Seller Employees and on such terms and conditions as the Purchaser determines, in its sole discretion, subject to Section ‎5.4.  Each Seller Employee who accepts employment with the Purchaser after the Closing shall be a “Transferred Employee.”  Nothing in this Agreement shall constitute an agreement by the Purchaser to assume or be bound by any previous or existing employment agreement or arrangement between the Seller and any of its employees, or a guarantee that any Transferred Employee shall be entitled to remain in the employment of the Purchaser for a specified period of time.  Any Liability arising out of or relating to the termination of employment of the Seller Employees by the Seller in respect of any period prior to the Closing (including Liabilities arising from employment terminations sufficient in number to trigger application of the WARN Act or any similar state laws, in each case with respect to the Transferred Locations) shall be an Excluded Liability for all purposes. 

		
			

		 

		

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				 (c)
			Notwithstanding the foregoing, the Seller shall continue to employ following the Closing and pursuant to the terms and conditions of the Transition Services Agreement (on a store-by-store basis) only such Seller Employees that are designated as a “Responsible Person”  under the Transition Services Agreement (collectively, the “Responsible Persons”). Each Responsible Person who accepts employment with the Purchaser after the termination of the Transition Services Agreement (on a store-by-store basis) and pursuant to the terms of the  Transition Services Agreement shall be a Transferred Employee for purposes of this Agreement.

			
	
			
				 5.4
			Employee Benefit Plans.

			
	
			
				 (a)
			For a period of not less than one  (1)  year following the Closing Date, the Purchaser shall offer each Transferred Employee, while employed by the Purchaser or an Affiliate thereof, with (i) wages and salaries that are at least equal to the wages and salaries of such Transferred Employee immediately prior to the Closing, and (ii) eligibility to participate in the group employee benefit plans made generally available to similarly situated employees of the Purchaser, other than any employee benefit plan that is closed, grandfathered or frozen as of the Closing either with respect to level of benefits or participation.  

			
	
			
				 (b)
			To the extent permissible under applicable Law, for all purposes under any of the employee benefit and compensation plans, programs, arrangements and policies maintained by the Purchaser following the Closing (collectively, the “Purchaser’s Plans”), the Purchaser shall give to each Transferred Employee credit for past service with the Seller as of and through the Closing Date for eligibility and vesting purposes (but not for benefit accruals other than vacation)  under any comparable Employee Benefit Plan to the same extent that such Employee Benefit Plan recognized such service; provided,  however, such service shall not be recognized to the extent that such recognition would result in a duplication of benefits or to the extent that the Employee Benefit Plan is not listed on Schedule 3.14(a).

			
	
			
				 (c)
			The Purchaser shall take commercially reasonable efforts to (i) waive any waiting periods, evidence of insurability requirements, or the application of any pre-existing condition limitations and  (ii) credit amounts paid under the comparable Employee Benefit Plan (but only to the extent the Employee Benefit Plan is listed on Schedule 3.14(a))  for purposes of applying deductibles, co-payments and out-of-pocket maximums as though such amounts had been paid in accordance with the terms and conditions of the Purchaser’s Plan with respect to the plan year in which the Closing Date occurs.

			
	
			
				 (d)
			Effective as of the Closing, the Purchaser shall have in effect a defined contribution plan that is qualified under Section 401(a) of the Code and that includes a qualified cash or deferred arrangement within the meaning of Section 401(k) of the Code (the “Purchaser Savings Plan”).  Transferred Employees shall be eligible to participate in the Purchaser Savings Plan to the extent they have met the eligibility requirements thereof (after giving effect to prior service credit with the Seller in accordance with Section ‎5.4(b)); and, with respect to those Transferred Employees who are eligible to participate in the Purchaser Savings Plan, the Purchaser shall permit such Transferred Employees, if any, who receive an eligible rollover distribution (as defined in Section 402(c)(4) of the Code)  from the Dick’s Sporting Goods, Inc. Smart Savings 401(k) Plan to rollover such eligible rollover distribution, including any associated loan of cash, into an account under the Purchaser Savings Plan as soon as reasonably practicable following the Purchaser’s receipt of the Transferred Employee’s rollover application.

			
	
			
				 5.5
			Tax Matters.

		
			 
		

			
	
			
				 (a)
			The Purchaser and the Seller shall cooperate fully, as and to the extent reasonably requested by the other party, in connection with Tax matters arising after the Closing Date related to the Transferred Locations or the Purchased Assets, including any audit, litigation, notice or other 

		 

		

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	proceeding with respect to Taxes.  Such cooperation shall include the retention and (upon the other party’s request) the provision of records and information which are reasonably relevant to any such audit, litigation or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder.  The Seller agrees (a) to retain all books, records, files and other data and materials with respect to Tax matters relating to the Transferred Locations for any period including or prior to the Closing Date (the “Tax Records”) until the expiration of the statute of limitations of the respective taxable periods, and to abide by all record retention agreements entered into with any taxing authority, and (b) to give the Purchaser reasonable written notice prior to transferring, destroying or discarding any such Tax Records and, if the Purchaser so requests, the Purchaser shall be permitted to take possession of such Tax Records.

			
	
			
				 (b)
			All real property, personal property and similar ad valorem Taxes (“Property Taxes”) levied with respect to the Purchased Assets for a Straddle Period shall be apportioned between the Purchaser and the Seller on a per diem basis for any Straddle Period based on the number of days of such Straddle Period included in the Pre-Closing Period and the number of days of such Straddle Period included in the Post-Closing Period.   The Seller shall be liable for the proportionate amount of such Property Taxes that is attributable to the Pre‐Closing Period and the Purchaser shall be liable for the proportionate amount of such Property Taxes that is attributable to the Post-Closing Period. Upon receipt of any bill for such Property Taxes,  the Purchaser or the Seller, as applicable, shall present a statement to the other setting forth the amount of reimbursement to which each is entitled under this Section ‎5.5(b) together with such supporting evidence as is reasonably necessary to calculate the proration amount. The proration amount shall be paid by the party owing it to the other within thirty (30) days after delivery of such statement. In the event that the Purchaser or the Seller makes any payment of Property Taxes for which it is entitled to reimbursement under this Section ‎5.5(b), the applicable party shall make such reimbursement no later than thirty (30) days after the presentation of a statement setting forth the amount of the reimbursement to which the party presenting the statement is entitled along with such supporting evidence as is reasonably necessary to calculate the reimbursement amount.

			
	
			
				 5.6
			Bulk Sales Laws.  The parties hereby waive compliance with the provisions of any bulk sales, bulk transfer or similar Laws of any jurisdiction that may otherwise be applicable with respect to the sale of any or all of the Purchased Assets to the Purchaser,  it being understood that any Liabilities arising out of the failure of the Seller to comply with the requirements and provisions of any bulk sales, bulk transfer or similar laws shall be treated as Excluded Liabilities.  

		
			 
		

			
	
			
				 5.7
			Post-Closing Payment.  Within ninety (90) days after the Closing Date the Purchaser shall pay or cause to be paid to the Seller, by wire transfer of immediately available funds to an account designated by the Seller in writing, an aggregate amount equal to fifty percent (50%) of the applicable Inventory Value.  For the avoidance of doubt, the parties acknowledge and agree that following payment of such amount to the Seller, such amount shall be included in the definition of “Purchase Price” for all purposes herein including, without limitation, as such term is used in Article VII.

		
			 
		

			
	
			
				 5.8
			Governmental Permits.  The Purchaser shall, as promptly as possible, use its reasonable best efforts to obtain, or cause to be obtained, the Permits from all Governmental Authorities,  that are required in connection with the purchase or other acquisition, possession or sale or other transfer of firearms, ammunition, reloading supplies or explosives (including without limitation pursuant to the Gun Control Act of 1968 (Chapter 44 of Title 18, United States Code), the National Firearms Act of 1934 (Chapter 53 of Title 26, United States Code), and the Arms Export Control Act (22 U.S.C. § 2778), as well as all applicable rules and regulations of the Bureau of Alcohol, Tobacco, Firearms and Explosives), and any similar state and local laws and regulations.    Each party shall cooperate fully with the other party and its Affiliates, and do all things reasonably necessary, in order to promptly seek and obtain all such firearm Permits, including performing its obligations under the Transition Services Agreement.  The parties hereto 

		 

		

			14

		

		

			 

		

	shall not willfully take any action that will have the effect of delaying, impairing or impeding the receipt of any required firearm Permits.

		
			 
		

			
	
			
				 5.9
			Private Label Inventory.

		
			 
		

			
	
			
				 (a)
			The Seller will allocate to and replenish Private Label Inventory to the Purchaser through December 31, 2019 on a cost-neutral basis (including all supply chain-related costs) in the ordinary course of business consistent with past practice, so long as such Private Label Inventory was already ordered as of the date hereof.

			
	
			
				 (b)
			The Purchaser agrees not to liquidate the Private Label Inventory during the one hundred twenty (120) day period following December 31, 2019;  provided,  however, the Purchaser may manage and resell such Private Label Inventory in its ordinary course of business (including, the ordinary course promotions, sales and clearances).  The Purchaser may return to the Seller,  at cost,  all Private Label Inventory that the Purchaser has not sold within one hundred twenty (120) days of the December 31, 2019 or liquidate such Private Label Inventory at the Seller’s election.  The Seller shall be responsible for the cost of associated return freight.  The parties shall mutually agree upon the time and manner of any such return of the Private Label Inventory pursuant to this Section ‎5.9.  

			
	
			
				 5.10
			Non-Competition; Non-Solicitation.    

		
			 
		

			
	
			
				 (a)
			For a period of three (3) years following the Closing Date and within a ten (10) mile radius of any of the Transferred Locations, the Seller will not, for itself or for any of its subsidiaries, commence or recommence the sale of firearms, ammunition, reloading supplies, and/or hunting licenses;  provided that, for the avoidance of doubt, the parties acknowledge that the restrictions set forth in this Section ‎5.10(a) shall not apply to (i) any of the Seller’s (or any of its subsidiaries’) store locations existing on the date hereof, (ii) any store locations that are acquired by the Seller as part of a corporate transaction or a portfolio acquisition of multiple store locations where such stores are selling firearms, ammunition, reloading supplies and/or hunting licenses on the date of such acquisition, or (iii) any action performed by the Seller pursuant to the Transition Services Agreement.

			
	
			
				 (b)
			For a period of one (1) year following the Closing Date,  the Seller shall not, and shall not permit any of its subsidiaries to, directly or indirectly, without the consent of the Purchaser,  hire or solicit any Transferred Employee hired by the Purchaser pursuant to this Agreement or encourage any such Transferred Employee to leave such employment or hire any such employee who has left such employment, except pursuant to a general solicitation which is not directed specifically to any such employees; provided, that nothing in this Section ‎5.10(b) shall prevent the Seller or any of its respective Affiliates from hiring (i) any employee whose employment has been terminated by the Purchaser or (ii) after ninety (90) days from the date of termination of employment, any employee whose employment has been terminated by the employee.

			
	
			
				 (c)
			The Seller acknowledges and agrees that (i) the Purchaser and its Affiliates would suffer irreparable and ongoing damages (including a significant loss of the value of the Transferred Locations and Purchased Assets purchased by the Purchaser pursuant to this Agreement) in the event that any provision of this Section ‎5.10 were not performed in accordance with its terms or otherwise were breached, and (ii) monetary damages, even if available, alone would not be an adequate remedy for any such non-performance or breach.  Accordingly, the Seller agrees that in the event of any breach or threatened breach of any provision of this Section ‎5.10, the Purchaser shall be entitled, in addition to all other remedies that it may have existing in its favor at law, in equity or otherwise, to obtain injunctive or other equitable relief (including a temporary restraining order, a preliminary injunction and a final injunction) to prevent any such breach or threatened breach and to enforce such provisions specifically, 

		 

		

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	without the necessity of posting a bond or other security or of proving actual damages.  The prevailing party in any action commenced under this Section ‎5.10(c) (whether through a monetary judgment, injunctive relief or otherwise) also shall be entitled to recover reasonable attorneys’ fees and court costs incurred in connection with such action.  Notwithstanding anything contained herein to the contrary, in no event shall the Seller be liable to the Purchaser for any consequential or indirect damages related to any default or breach under this Section ‎5.10.    

			
	
			
				 (d)
			The Seller acknowledges and agrees that (i) the covenants applicable to the Seller set forth in this Section ‎5.10 constitute a material inducement to the Purchaser’s willingness to enter into this Agreement and consummate the Transaction and are an integral part of the Transaction, (ii) but for these covenants, the Purchaser would not have entered into this Agreement or agreed to acquire the Transferred Locations and the Purchased Assets, and (iii) in view of the highly competitive nature of the businesses conducted at the Transferred Locations, the business objectives of the Purchaser in acquiring the Transferred Locations and the Purchased Assets and consideration to be paid for the Transferred Locations and the Purchased Assets hereunder, each of the covenants set forth in this Section ‎5.10 is reasonable with respect to its scope, geographic area and duration and is necessary to protect the Purchaser’s legitimate business interests.

			
	
			
				 (e)
			Each of the covenants set forth in this Section ‎5.10 is a severable and independent covenant.  The invalidity, illegality or unenforceability of any covenant as written in any jurisdiction shall not invalidate or render unenforceable the remaining covenants set forth in this Section ‎5.10 or such covenant in any other jurisdiction.  The existence of any claim or cause of action against one party hereto by any other party hereto, whether predicated on the breach of this Agreement or otherwise, shall not constitute a defense to the enforcement of the covenants set forth in this Section ‎5.10.  If, at the time of enforcement of any provision of this Section ‎5.10, a final determination is made by a court of competent jurisdiction or an arbitrator that any such provision is invalid, illegal or otherwise unenforceable under applicable Law, the parties hereto hereby authorize and instruct such court or arbitrator to revise and reform the scope, geographic area and/or duration of the provisions of this Section ‎5.10 and such provisions shall be deemed to have been reformed so as to produce the maximum legally enforceable restrictions (not greater than those contained herein) permitted by applicable Law.  If such court or arbitrator refuses to do so, the parties hereto agree that the provisions of this Section ‎5.10 shall not be rendered null and void, but rather shall be deemed to have been reformed to provide for such maximum legally enforceable restrictions.  The time period during which the covenants set forth in this Section ‎5.10 shall apply shall be tolled and suspended for a period equal to the aggregate time during which any of the Seller violates any such covenant.

			
	
			
				 5.11
			Subsequent Closings.  Notwithstanding anything to the contrary in this Agreement, the parties acknowledge and agree that if the Closing occurs but one (1) or more of the store locations identified on Exhibit A.1 is not included among the Transferred Locations, then the parties may mutually agree to consummate one (1) or more subsequent closings (each, a “Subsequent Closing”) through which any such store identified on Exhibit A.1 but not originally included among the Transferred Locations may be sold, assigned, transferred and delivered by the Seller to the Purchaser on the date of the Subsequent Closing pursuant to the terms and conditions of this Agreement,  mutatis mutandis;  provided,  however, any such Subsequent Closing shall occur on or before the Outside Date.    For the avoidance of doubt, in the event that one or more Subsequent Closings occur, then the parties acknowledge and agree that (a) with respect to any closing delivery, closing condition, representation or warranty, the term “Closing Date” as used herein shall refer to the date on which such Subsequent Closing actually occurs and (b) with respect to any covenant, except Section ‎5.3(b) or indemnification obligation, the term “Closing Date” as used herein shall refer to the date on which the last Subsequent Closing actually occurs under this Agreement.

		
			 
		

		
			

		 

		

			16

		

		

			 

		

		

			
	
			
				 5.12
			Landlord Estoppel Certificates.  The parties shall work together in good faith to obtain a Landlord Estoppel Certificate from the landlord of each Lease in the form provided to each landlord or as otherwise mutually agreed by the parties.  Notwithstanding the foregoing,  the Seller shall not be in default hereunder for the failure to obtain an estoppel for any Lease and the receipt of such estoppels shall not be a condition to the Closing.

		
			 
		

			
	
			
				 5.13
			Confidentiality.  The Purchaser acknowledges and agrees that the Confidentiality Agreement remains in full force and effect and, in addition, covenants and agrees to keep confidential, in accordance with the provisions of the Confidentiality Agreement, information provided to the Purchaser pursuant to this Agreement,  provided that the Seller shall have the right to disclose information related to this transaction to each of the landlords or lessors under the Leases for the purpose of obtaining any necessary consents or other similar approvals contemplated herein.

		
			 
		

			
	
			
				 5.14
			Further Assurances.  Following the Closing, each of the parties hereto shall, and shall cause their respective Affiliates to,  at the request of any party hereto, execute and deliver, or cause to be executed and delivered, such additional documents, instruments, conveyances and assurances and take such further actions as may be reasonably requested or desirable to carry out the provisions hereof and give effect to the Transaction and the other documents delivered pursuant to or in connection with this Agreement.

		
			 
		

			
	
			
				ARTICLE 6
			

CONDITIONS TO CLOSING

			
	
			
				 6.1
			Conditions to Obligation of the Purchaser.  The respective obligations of the Purchaser to effect the Transaction shall be subject to the satisfaction or waiver, at or prior to the Closing Date, of each of the following conditions:

		
			 
		

			
	
			
				 (a)
			The representations and warranties of the Seller contained in ‎ARTICLE 3 shall be true and correct in all respects as of the Closing Date with the same effect as though made at and as of such date (except those representations and warranties that address matters only as of a specified date, which shall be true and correct in all respects as of that specified date), except where the failure of such representations and warranties to be true and correct would not have a Material Adverse Effect.

			
	
			
				 (b)
			The Seller shall have duly performed and complied in all material respects with all agreements, covenants and conditions required by this Agreement and each of the other Transaction Documents to be performed or complied with by it prior to or on the Closing Date.

			
	
			
				 (c)
			The Seller shall have delivered to the Purchaser duly executed counterparts to the Transaction Documents (other than this Agreement) and such other documents and deliveries set forth in Section ‎1.4(a).

			
	
			
				 6.2
			Conditions to Obligation of the Seller.  The respective obligations of the Seller to effect the Transaction shall be subject to the satisfaction or waiver, at or prior to the Closing Date, of each of the following conditions:

		
			 
		

			
	
			
				 (a)
			 The representations and warranties of the Purchaser contained in ‎ARTICLE 4 shall be true and correct in all respects as of the Closing Date with the same effect as though made at and as of such date (except those representations and warranties that address matters only as of a specified date, which shall be true and correct in all respects as of that specified date), except where the 

		 

		

			17

		

		

			 

		

	failure of such representations and warranties to be true and correct would not have a material adverse effect on the Purchaser’s ability to consummate the transactions contemplated hereby.

			
	
			
				 (b)
			The Purchaser shall have duly performed and complied in all material respects with all agreements, covenants and conditions required by this Agreement and each of the other Transaction Documents to be performed or complied with by it prior to or on the Closing Date.

			
	
			
				 (c)
			The Purchaser shall have delivered to the Seller duly executed counterparts to the Transaction Documents (other than this Agreement) and such other documents and deliveries set forth in Section ‎1.4(b).

			
	
			
				 6.3
			Mutual Conditions to Closing.  The obligation of each party to effect the Transaction is subject to (a) mutual agreement between the Purchaser and the Seller regarding which of the store locations identified on Exhibit A.1 shall constitute the “Transferred Locations”  for purposes of this Agreement (which, for the avoidance of doubt, shall be at least five (5) store locations unless mutually waived by the parties) and (b) the satisfaction (or written waiver by such party) as of the Closing of the following conditions: (i) no Order or legal proceeding preventing or seeking to prevent the consummation of the Transaction shall have been issued, threatened or commenced and (ii) no Law or Order shall have been enacted or enforced by any Governmental Authority that prohibits, makes illegal or materially frustrates the purpose of the Transaction as it relates, individually or in the aggregate, to more than three (3)  Transferred Locations. 

		
			 
		

			
	
			
				ARTICLE 7
			

INDEMNIFICATION

			
	
			
				 7.1
			Survival.  The representations and warranties of the parties hereto contained in or made pursuant to this Agreement or any certificate delivered pursuant hereto or in connection herewith shall survive the Closing and continue in full force and effect until the first anniversary of the Closing Date;  provided,  however, that the Fundamental Representations shall survive the Closing and continue in full force and effect indefinitely or until the latest date permitted by applicable Law.  None of the covenants or other agreements contained in this Agreement shall survive the applicable Closing Date other than those which by their terms contemplate performance after the applicable Closing Date, and each such surviving covenant and agreement shall survive the applicable Closing for the period contemplated by its terms.    If any Claims Notice (as defined below) is given in accordance with the terms of Section ‎7.4 within the applicable survival period provided above (as applicable, the “Cut-Off Date”), the claims specifically set forth in such Claims Notice shall survive until such time as such claims are finally resolved.

		
			 
		

			
	
			
				 7.2
			Indemnification by the Seller; Indemnification by the Purchaser.

		
			 
		

			
	
			
				 (a)
			Subject to the limitations set forth herein,  from and after the Closing Date, the Seller agrees to indemnify, defend and hold harmless the Purchaser, its Affiliates and their respective directors, managers, officers, employees and agents, and their respective heirs, executors, successors and permitted assigns (each, a “Purchaser Indemnitee”) from and against any and all Losses incurred by any such Purchaser Indemnitee caused by or arising from (i) any breach of or inaccuracy in any representation or warranty of the Seller contained in this Agreement or any certificate pursuant hereto or in connection herewith,  (ii) any breach of or failure to timely perform any covenant or agreement made hereunder by the Seller to be made or performed by the Seller, or (iii) the Excluded Assets or Excluded Liabilities.

			
	
			
				 (b)
			Subject to the limitations set forth herein,  from and after the Closing Date, the Purchaser hereby agrees to indemnify, defend and hold harmless the Seller,  its Affiliates and their 

		 

		

			18

		

		

			 

		

	respective directors, managers, officers, employees and agents, and their respective heirs, executors, successors and permitted assigns (each, a “Seller Indemnitee,” and together with the Purchaser Indemnitees, the “Indemnitees” and each an “Indemnitee”), from and against any and all Losses incurred by any such Seller Indemnitee caused by or arising from (i) any breach of or inaccuracy in any representation or warranty of the Purchaser contained in this Agreement or any certificate delivered pursuant hereto or in connection herewith,  (ii) any breach of or failure to timely perform any covenant or agreement made hereunder by the Purchaser to be made or performed by the Purchaser, or (iii) the Assumed Liabilities.

			
	
			
				 7.3
			Limitations on Indemnification.

			
	
			
				 (a)
			Notwithstanding anything in this Agreement to the contrary, in no event shall the cumulative indemnification obligations of the Seller under Section ‎7.2(a)(i) (other than for any breach of a Fundamental Representation)  in the aggregate exceed an amount equal to seven and one half percent (7.5%) of (i) the Purchase Price,  less (ii) any Cash included in the calculation thereof (the “Cap”); provided,  however, that the limitation set forth in this Section ‎7.3‎(a) shall not apply to claims (and such claims shall not apply to the Cap) arising out of or in connection with fraud or willful misconduct. Notwithstanding the foregoing or anything herein to the contrary, except in the case of fraud or willful misconduct, the aggregate amount of all Losses for which the Seller or the Purchaser shall be liable pursuant to Section ‎7.2(a)(i) or (ii) or pursuant to Section ‎7.2(b)(i) or (ii), respectively, shall not in any event exceed the Purchase Price, less any Cash included in the calculation thereof.

			
	
			
				 (b)
			Notwithstanding anything in this Agreement to the contrary, the Seller shall not have any obligation to indemnify any Purchaser Indemnitee under Section ‎7.2(a)(i) (other than for any breach of a Fundamental Representation)  until the aggregate amount of Losses that would otherwise be subject to indemnification pursuant to Section ‎7.2(a)(i), exceeds an amount equal to one percent (1.0%) of (i) the Purchase Price, less (ii) any Cash included in the calculation thereof (the “Basket Amount”), whereupon the Purchaser Indemnitee shall be entitled to receive only amounts for Losses in excess of the Basket Amount;  provided,  however, that the limitations set forth in this Section ‎7.3‎(b) shall not apply to claims arising out of or in connection with fraud or willful misconduct.

			
	
			
				 (a)
			Notwithstanding anything in this Agreement to the contrary, under no circumstances shall any Indemnitee be entitled to be indemnified for special, consequential, indirect, punitive, exemplary or other similar damages, or damages based upon lost profits, lost revenues, diminution in value, business interruptions, multiples of earnings, multiples of cash flows, or losses of business opportunity or reputation.  

			
	
			
				 (a)
			Notwithstanding anything to the contrary contained in this Agreement, the Purchaser Indemnitees shall not be entitled to indemnification pursuant to Section ‎7.2(a) to the extent any Loss results from any breach or inaccuracy in any representation of warranty of the Purchaser in Section ‎4.7.

			
	
			
				 (b)
			No party hereto shall be obligated to indemnify any other Person with respect to (i) any representation, warranty, covenant or condition specifically waived in writing by an authorized officer of the other party on or prior to the Closing, or (ii) any Losses for which a Claims Notice was not duly delivered prior to the applicable Cut-Off Date.

			
	
			
				 (c)
			The party seeking indemnification under this ‎ARTICLE 7 shall use its commercially reasonable efforts to (i) mitigate any Losses which form the basis of an indemnification claim hereunder and (ii) obtain any insurance proceeds or proceeds from other sources of indemnification available to such party in respect of the Losses which form the basis of an indemnification claim hereunder.    Notwithstanding the foregoing, such party’s obligation to mitigate any Losses shall not require such party to initiate any legal proceeding or assume or incur any material Liability.

		
			

		 

		

			19

		

		

			 

		

		

			
	
			
				 (d)
			No Indemnitee shall be entitled to recover any Losses relating to any matter arising under one provision of this Agreement to the extent that such Indemnitee has already recovered such Losses with respect to such matter pursuant to other provisions of this Agreement.

			
	
			
				 7.4
			Indemnification Claim Process.

			
	
			
				 (a)
			All claims for indemnification by either a Seller Indemnitee or a  Purchaser Indemnitee under this ‎ARTICLE 7 shall be asserted and resolved in accordance with Sections ‎7.4 and ‎7.5.

			
	
			
				 (b)
			If a Purchaser Indemnitee intends to seek indemnification pursuant to this ‎ARTICLE 7, the Purchaser Indemnitee shall promptly, but in no event more than thirty (30) days following such Purchaser Indemnitee’s knowledge of such claim, notify the Seller in writing of such claim, describing such claim in reasonable detail and the amount or estimated amount of such Losses (the “Claims Notice”).  Notwithstanding the foregoing, the failure or delay of the Purchaser Indemnitee to give a Claims Notice shall not relieve the Seller of its indemnification obligations hereunder except to the extent (and only to the extent) that the Seller shall have been materially prejudiced by such failure or delay.

			
	
			
				 (c)
			If a Seller Indemnitee intends to seek indemnification pursuant to this ‎ARTICLE 7, the Seller Indemnitee shall promptly, but in no event more than thirty (30) days following such Seller Indemnitee’s knowledge of such claim, deliver a Claims Notice to the Purchaser.  Notwithstanding the foregoing, the failure or delay of the Seller Indemnitee to give a Claims Notice shall not relieve the Purchaser of its indemnification obligations hereunder except to the extent (and only to the extent) that the Purchaser shall have been materially prejudiced by such failure or delay.

			
	
			
				 (d)
			The Indemnitor shall have thirty (30) days from the date on which the Indemnitor received the Claims Notice related to any Third Party Claim to notify the Indemnitee that the Indemnitor desires to assume the defense or prosecution of such Third Party Claim and any litigation resulting therefrom with counsel of its choice reasonably acceptable to the Indemnitee.  If the Indemnitor assumes the defense of such claim in accordance herewith:  (i) the Indemnitee may retain separate co-counsel at its sole cost and expense and participate in the defense of such Third Party Claim, but the Indemnitor shall control the investigation, defense and settlement thereof, (ii) the Indemnitee shall not file any papers or consent to the entry of any judgment or enter into any settlement with respect to such Third Party Claim without the prior written consent of the Indemnitor, which consent shall not be unreasonably withheld, conditioned or delayed, and (iii) the Indemnitor shall not consent to the entry of any judgment or enter into any settlement with respect to such Third Party Claim without the prior written consent of the Indemnitee unless the judgment or settlement provides solely for the payment of money and the Indemnitee receives an unconditional release.  The parties shall act in good faith in responding to, defending against, settling or otherwise dealing with Third Party Claims, and cooperate in any such defense and give each other reasonable access to all information relevant thereto.  Whether or not the Indemnitor has assumed the defense of such Third Party Claim, the Indemnitor will not be obligated to indemnify the Indemnitee hereunder with respect to any settlement entered into or any judgment consented to without the Indemnitor’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed.  Notwithstanding the foregoing, without the prior written consent of the Indemnitee, an Indemnitor may not assume the defense of any such Third Party Claim if (i) the claim could result in imprisonment of or imposition of a civil or criminal fine against the Indemnitee or its Representatives, (ii) the claim could result in an equitable remedy that would impair the Indemnitee’s ability to exercise its rights under this Agreement, or impair the Purchaser’s right or ability to operate the stores at the Transferred Locations, (iii) the claim names both the Indemnitor and Indemnitee (including impleaded parties) and representation of both such parties by the same counsel would create a conflict or (iv) the aggregate amount of all Losses with respect to such claim exceeds the Indemnitor’s indemnification obligations for such claim.    

		
			

		 

		

			20

		

		

			 

		

		

			
	
			
				 (e)
			If the Indemnitor does not assume or is not entitled to assume, in accordance with Section ‎7.4(d) above, the defense of such Third Party Claim within thirty (30) days of receipt of the Claims Notice, the Indemnitee will be entitled to assume such defense, at its sole cost and expense, upon delivery of notice to such effect to the Indemnitor;  provided,  however, that the Indemnitor (i) shall have the right to participate in the defense of the Third Party Claim at its sole cost and expense and (ii) shall not be obligated to indemnify the Indemnitee hereunder for any settlement entered into or any judgment consented to without the Indemnitor’s prior written consent,  which consent shall not be unreasonably withheld, conditioned or delayed.

			
	
			
				 (f)
			The Indemnitee shall, and shall cause its Affiliates to, provide reasonable cooperation with the Indemnitor in all aspects of any investigation, defense, pretrial activities, trial, compromise, settlement or discharge of any claim in respect of which a Indemnitee is seeking indemnification pursuant to this ‎ARTICLE 7 that the Indemnitor has elected to control,  including, but not limited to, by providing the Indemnitor with reasonable access to books, records, employees and officers (including as witnesses) of the Indemnitee.

			
	
			
				 7.5
			Indemnification Procedures for Non-Third Party Claims.  The Indemnitee will deliver a Claims Notice to the Indemnitor promptly, but in any event no later than thirty (30) days after its discovery of any matter for which the Indemnitor may be liable to the Indemnitee hereunder that does not involve a Third Party Claim describing in reasonable detail (based on the information then available to the Indemnitee) the basis for such non-third party claim and the amount of the Losses claimed by the Indemnitee.  Notwithstanding the foregoing, the failure or delay of the Indemnitee to give such notice shall not relieve the Indemnitor of its indemnification obligations hereunder except to the extent (and only to the extent) that the Indemnitor shall have been materially prejudiced by such failure or delay.    Each party shall reasonably cooperate with and assist the other party in determining the validity of any claim for indemnity by the Indemnitee and in otherwise resolving such matters.  

		
			 
		

			
	
			
				 7.6
			Exclusive Remedy.  Except (a) in the case where a party seeks to obtain specific performance pursuant to Section ‎5.10 or Section ‎9.16,  and (b)  for claims arising out of or in connection with fraud or willful misconduct, from and after the Closing the rights of the parties to indemnification pursuant to the provisions of this ‎ARTICLE 7 shall be the sole and exclusive remedy for the parties hereto with respect to any matter in any way arising from or relating to (i) this Agreement or the Transaction or (ii) any other matter relating to the operation of the stores at the Transferred Locations prior to the Closing, in each case regardless of the legal theory under which such Liability or obligation may be sought to be imposed, whether sounding in contract or tort, or whether at Law or in equity, or otherwise, and the parties hereby agree that the Purchaser Indemnitees shall have no remedy or recourse with respect to any of the foregoing other than pursuant to, and subject to the terms and conditions of, this ‎ARTICLE 7.  The Purchaser acknowledges and agrees that the Purchaser Indemnitees may not avoid such limitation on Liability by (1) seeking damages for breach of contract, tort or pursuant to any other theory of Liability, all of which are hereby waived or (2) asserting or threatening any claim against any Person that is not a party hereto (or a successor to a party hereto) for breaches of the representations, warranties and covenants contained in this Agreement.  The parties agree that the provisions in this Agreement relating to indemnification, and the limits imposed on the Purchaser’s and the Purchaser Indemnitees’ and the Seller’s and the Seller Indemnitees’ remedies with respect to this Agreement and the transactions contemplated hereby were specifically bargained for between sophisticated parties and were specifically taken into account in the determination of the amounts to be paid to the Seller hereunder.  Each party hereto shall be entitled to rely upon, and shall be deemed to have relied upon, all of the representations, warranties, covenants and agreements of each other party hereto set forth herein.  Subject to the foregoing and the additional procedures for bringing or resolving disputes as specifically provided in this Agreement,  to the maximum extent permitted by Law, the parties hereby waive all other rights and remedies with respect to 

		 

		

			21

		

		

			 

		

	any matter in any way relating to this Agreement or arising in connection herewith, whether under any laws at common law, in equity or otherwise.

		
			 
		

			
	
			
				 7.7
			Calculation of Losses; Limitations. The amount of any Loss for which indemnification is provided under this ‎ARTICLE 7 shall be (a) net of any amounts recoverable by any Indemnitee under insurance policies or any other source of indemnification with respect to such Loss (net of direct collection expenses), and (b) reduced to the extent of any Tax savings or benefits actually received by any Indemnitee to the extent attributable to such Loss,  provided that the Indemnitee shall not be required to seek action from any Person as a requirement hereunder or as a condition to seeking or recovering indemnification from any Indemnitor hereunder.    Any Indemnitee shall forward any insurance proceeds received by such Indemnitee to the applicable Indemnitor to the extent that such proceeds cover Losses previously incurred by the applicable Indemnitor.

		
			 
		

			
	
			
				 7.8
			Tax Treatment of Indemnity Payments.  Unless otherwise required by applicable Law, any indemnity payment made under this Agreement shall be treated by all parties as an adjustment to the purchase price for all federal, state, local and foreign Tax purposes, and the parties shall file their Tax Returns accordingly.

		
			 
		

			
	
			
				ARTICLE 8
			

TERMINATION

			
	
			
				 8.1
			Termination.  This Agreement may be terminated at any time prior to the Closing only:

		
			 
		

			
	
			
				 (a)
			by the mutual written consent of the Seller and the Purchaser;

			
	
			
				 (b)
			by either the Seller or the Purchaser, if the Closing shall not have occurred on or before October 11, 2019 (the “Outside Date”); provided that the right to terminate this Agreement in its entirety under this Section ‎8.1(b) shall not be available to any party to this Agreement whose breach or failure to perform any material covenant or obligation under this Agreement has been the cause of or has resulted in the failure of the transactions contemplated by this Agreement to occur on or before such date; or 

			
	
			
				 (c)
			by the Purchaser or the Seller in the event that:

			
	
			
				 (i)
			there shall be any Law that makes consummation of the transactions contemplated by this Agreement illegal or otherwise prohibited; or

			
	
			
				 (i)
			any Governmental Authority shall have issued a governmental order restraining or enjoining the transactions contemplated by this Agreement, and such governmental order shall have become final and non-appealable.

			
	
			
				 8.2
			Effect of Termination.  In the event of the termination of this Agreement prior to the Closing Date as provided in Section ‎8.1, this Agreement shall terminate and become void and have no effect, without any liability or obligation on the part of any party hereto or their respective Affiliates or Representatives in respect thereof, except (a) as set forth in Section ‎5.13, ARTICLE 8, and ARTICLE 9, each of which shall survive the termination of this Agreement, and (b) that nothing herein will relieve any party from liability for any intentional breach of this Agreement or any fraud or intentional misconduct with respect to this Agreement.

		
			 
		

		
			 
		

		
			

		 

		

			22

		

		

			 

		

		

			
	
			
				ARTICLE 9
			

MISCELLANEOUS

			
	
			
				 9.1
			Expenses.  Except as expressly provided herein or in any Sublease, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses.

		
			 
		

			
	
			
				 9.2
			Public Announcements.  No party will issue or cause the publication of any press release or other public announcement with respect to this Agreement or the transactions contemplated hereby without the prior written consent of the other parties hereto; provided,  however, that nothing herein will prohibit any party from issuing or causing publication of any such press release or public announcement to the extent that such disclosure is required by Law (including securities Laws) or stock exchange requirements, in which case the party making such determination will, if practicable in the circumstances, use commercially reasonable efforts to allow the other parties reasonable time to comment on such release or announcement in advance of its issuance.    

		
			 
		

			
	
			
				 9.3
			Amendment.  This Agreement may only be amended, modified, or supplemented by an agreement in writing signed by each party hereto.  

		
			 
		

			
	
			
				 9.4
			Waiver.  Waiver of any term or condition of this Agreement by any party shall only be effective if in writing and shall not be construed as a waiver of any subsequent breach or failure of the same term or condition, or a waiver of any other term or condition of this Agreement.  

		
			 
		

			
	
			
				 9.5
			Entire Agreement.  This Agreement including the Schedules and Exhibits attached hereto which are deemed for all purposes to be part of this Agreement and the other documents delivered pursuant to or in connection with this Agreement contain all of the terms, conditions and representations and warranties agreed upon or made by the parties relating to the subject matter of this Agreement and supersede all prior and contemporaneous agreements, negotiations, correspondence, undertakings and communications of the parties or their Representatives, oral or written, respecting such subject matter.

		
			 
		

			
	
			
				 9.6
			Headings.  The headings contained in this Agreement are intended solely for convenience and shall not affect the rights of the parties to this Agreement.

		
			 
		

			
	
			
				 9.7
			Notices.  Any notice or other communication required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given and made: (i) when delivered, if personally delivered to the party for whom it is intended; (ii) on the date sent by email of a PDF  (or substantively equivalent) document, if sent during normal business hours of the recipient and on the next Business Day, if sent after normal business hours of the recipient, or (iii) on the third (3rd) day after the date mailed, if mailed by certified mail, registered mail, or courier service, return-receipt requested.  Such communications must be sent to the respective parties at the following addresses:

		
			 
		

		
			If to the Seller:
		

		
			Dick’s Sporting Goods, Inc. 
345 Court Street
		

		
			Coraopolis, PA 15108
Attention: Chief Financial Officer and Legal Department
Phone: (724)-273-3142
		

		
			Email: legal.department@dcsg.com
		

		
			 
		

		
			

		 

		

			23

		

		

			 

		

		

		
			With a copy to (which copy shall not constitute notice):
		

		
			 
		

		
			Reed Smith LLP
225 Fifth Avenue
Pittsburgh, PA 15222
Attention: Kristin I. Wells
Phone: (412) 288-1272
Email: KWells@ReedSmith.com
		

		
			 
		

		
			If to the Purchaser:
		

		
			 
		

		
			Sportsman’s Warehouse, Inc. 
7035 S. High Tech Drive
		

		
			Midvale, Utah 84047
Attention: Chief Executive Officer
Phone: (801) 566-6681
Email: jbarker@sportsmanswarehouse.com
		

		
			 
		

		
			With a copy to (which copy shall not constitute notice):
		

		
			 
		

		
			Ballard Spahr LLP
		

		
			2000 IDS Center
		

		
			80 South 8th Street
		

		
			Minneapolis, Minnesota
		

		
			Attention: April Hamlin, Esq.
		

		
			Phone: (612) 371-3522
Email: hamlina@ballardspahr.com
		

		
			 
		

		
			Such addresses may be changed, from time to time, by means of a notice given in the manner provided in this Section ‎9.7.
		

			
	
			
				 9.8
			Exhibits and Schedules.

			
	
			
				 (a)
			Any matter, information or item disclosed in the Schedules delivered under any specific representation, warranty or covenant or Schedule number hereof, shall be deemed to have been disclosed with respect to any other representation, warranty or covenant in this Agreement in respect of which such disclosure is reasonably apparent on its face notwithstanding the omission of an appropriate cross-reference.

			
	
			
				 (b)
			Any item of information, matter or document disclosed or referenced in, or attached to, the Schedules hereto shall not (i) be used as a basis for interpreting the terms “material”, “Material Adverse Effect” or other similar terms in this Agreement or to establish a standard of materiality, (ii) represent a determination that such item or matter did not arise in the ordinary course of business, (iii) be deemed or interpreted to expand the scope of the Seller’s representations and warranties, obligations, covenants, conditions or agreements contained herein, (iv) constitute, or be deemed to constitute, an admission of Liability or obligation regarding such matter, (v) represent a determination that the consummation of the transactions contemplated by this Agreement requires the consent of any third party, (vi) constitute, or be deemed to constitute, and admission to any third party concerning such item or matter, or (vii) constitute, or be deemed to constitute, an admission or indication by the Seller that such item meets any or all of the criteria set forth in this Agreement for inclusion in the Schedules.  No reference in the Schedules to any Contract or other agreement or document shall be construed as an admission or indication that such Contract,  agreement or document is enforceable or currently in effect or that there are any 

		 

		

			24

		

		

			 

		

	obligations remaining to be performed or any rights that may be exercised under such Contract,  agreement or document.  No disclosure in the Schedules relating to any possible breach or violation of any agreement or Law shall be construed as an admission or indication to any third party that any such breach or violation exists or has actually occurred.  

			
	
			
				 (c)
			The Schedules and Exhibits hereto are hereby incorporated into this Agreement and are hereby made a part hereof as if set out in full in this Agreement.

			
	
			
				 9.9
			Binding Effect; Assignment.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their permitted successors and assigns.  No party to this Agreement may assign or delegate, by operation of Law or otherwise, all or any portion of its rights, obligations or liabilities under this Agreement without the prior written consent of the other parties to this Agreement, which any such party may withhold in its absolute discretion.  Any purported assignment without such prior written consents shall be void.

		
			 
		

			
	
			
				 9.10
			No Third Party Beneficiary.  Nothing in this Agreement shall confer any rights, remedies or claims upon any Person or entity not a party or a permitted assignee of a party to this Agreement, except for the Persons set forth in ‎ARTICLE 7, who are intended third party beneficiaries of such provisions.

		
			 
		

			
	
			
				 9.11
			Counterparts.  This Agreement may be signed in any number of counterparts, and delivered via e-mail or similar electronic transmittal, with the same effect as if the signatures to each counterpart were upon a single instrument, and all such counterparts together shall be deemed an original of this Agreement.

		
			 
		

			
	
			
				 9.12
			Governing Law and Jurisdiction.  This Agreement and any claim or controversy hereunder shall be governed by and construed in accordance with the Laws of the Commonwealth of Pennsylvania without giving effect to the principles of conflict of Laws thereof.

		
			 
		

			
	
			
				 9.13
			Consent to Jurisdiction and Service of Process.  Any legal action, suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby may only be instituted in any state or federal court in the Commonwealth of Pennsylvania and each party waives any objection which such party may now or hereafter have to the laying of the venue of any such action, suit or proceeding, and irrevocably submits to the exclusive jurisdiction of any such court in any such action, suit or proceeding.

		
			 
		

			
	
			
				 9.14
			WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

		
			 
		

			
	
			
				 9.15
			Conveyance Taxes.  The Seller and the Purchaser each agrees to pay one-half of all sales, use, value added, Transfer Taxes, stamp, registration, documentary, excise, real property transfer or gains, or similar Taxes incurred as a result of the transactions contemplated by this Agreement.  The 

		 

		

			25

		

		

			 

		

	Purchaser will provide the Seller with any applicable resale or other sales tax exemption certificates on or prior to the Closing.

		
			 
		

			
	
			
				 9.16
			Specific Performance.  The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed by them in accordance with the terms hereof or were otherwise breached and that each party hereto shall be entitled to seek an injunction or injunctions to prevent breaches of the provisions hereof and to specific performance of the terms hereof, in addition to any other remedy at Law or in equity.

		
			 
		

			
	
			
				 9.17
			Severability.  If any term, provision, agreement, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, agreements, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto.  Upon such a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a reasonably acceptable manner so that the transactions contemplated hereby may be consummated as originally contemplated to the fullest extent possible.

		
			 
		

		
			[Remainder of page intentionally left blank]
		

		
			 
		

		
			

		 

		

			26

		

		

			 

		

		

		
			IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the date first above written.
		

		
			PURCHASER:

SPORTSMAN’S WAREHOUSE, INC. 
		

		
			By:/s/  Jon Barker
Name:  Jon Barker
Title:  Chief Executive Officer
		

		
			SELLER:

DICK’S SPORTING GOODS, INC.
		

		
			By: /s/  Lee J. Belitsky
Name:  Lee J. Belitsky
Title:  Executive Vice President, Chief Financial Officer
		

		
			 
		

		
			 
		

		
			

		 

		

			[Signature Page to Asset Purchase Agreement]

		

		

			 

		

		

		
			APPENDIX A

DEFINITIONS
		

		
			1.Definitions.  The following terms shall have the following meanings for all purposes of that certain Asset Purchase Agreement, dated as of September 28, 2019, entered into by and between Dick’s Sporting Goods, Inc., a Delaware corporation, and Sportsman’s Warehouse, Inc., a Utah corporation (the  “Agreement”). All section or schedule references herein are references to sections and schedules of the Agreement:
		

		
			“Affiliate” means as to any Person (a) any Person that directly or indirectly controls, is controlled by, or is under common control with such Person, and (b) any Person who is a director, officer, partner or principal of such Person or of any Person that directly or indirectly controls, is controlled by, or is under common control with such Person.  For purposes of this definition, “control” of a Person shall mean the power, direct or indirect, to direct or cause the direction of the management and policies of such Person whether by ownership of voting stock, by Contract or otherwise.
		

		
			“Base Amount” means, as to each Transferred Location, the amount set forth on Exhibit A.2.
		

		
			“Business Day” means any day that is not a Saturday, Sunday or other day on which banking institutions in Pittsburgh, Pennsylvania are authorized or required by Law or executive order to close.
		

		
			“Cash” means the cash held in tills, safes and petty cash.
		

		
			“Closing Cash”  means the aggregate amount of actual cash held in tills in the Transferred Locations,  on a store-by-store basis, as of the close of business on the day immediately prior to the applicable Closing Date.
		

		
			“Closing Statement”  means a written statement setting forth (a) the Base Amount, (b) the Inventory Value and (c) the Closing Cash.
		

		
			“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and as codified in Section 601 et seq. of ERISA and Section 4980B of the Code, and any similar state Law.
		

		
			“Code”  means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.
		

		
			“Confidentiality Agreement” means that certain Mutual Confidentiality Agreement by and between the Seller and Sportsman’s Warehouse Holdings, Inc., dated as of June 12, 2019.
		

		
			“Contract” means any written or oral agreement, contract, lease, license, instrument, commitment or arrangement.
		

		
			“DSG Name”  means any of the words “Dick’s Sporting Goods, Inc.” and “Field & Stream”, in each case alone or in combination with other words.
		

		
			“Employee Benefit Plan” means, with respect to the Seller Employees, any “employee benefit plan” as such term is defined in Section 3(3) of ERISA and any other employee benefit plan, program or arrangement of any kind sponsored or maintained by the Seller or any ERISA Affiliate, or to which the Seller or any ERISA Affiliate has any obligation to contribute or with respect to which the Seller or any ERISA Affiliate has any Liability.
		

		
			“Encumbrance” means any and all liens, encumbrances, charges, mortgages, options, pledges, restrictions on transfer, security interests, claims, hypothecations, easements, rights of way, encroachments or licenses.
		

		
			

		 

		

			 

		

		

			A-1

		

		

			 

		

		

		
			“Environmental Laws” means all applicable Laws relating to pollution, Hazardous Materials, and protection of human health and the environment including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act, U.S.C. §9601 et seq. (“CERCLA”), the Resource Conservation and Recovery Act of 1976, 42 U.S.C. §6901 et seq., the Emergency Planning and Community Right-to-Know Act, 42 U.S.C. §11001 et seq., the Clean Air Act, 42 U.S.C. §7401 et seq., the Federal Water Pollution Control Act, 33 U.S.C. §1251 et seq., the Toxic Substance Control Act, 15 U.S.C. §2601 et seq., and the Safe Drinking Water Act, 42 U.S.C. §300f et seq., the Occupational Safety and Health Act, and any regulations, rules, ordinances adopted or publications promulgated pursuant thereto.
		

		
			“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.
		

		
			“ERISA Affiliate” means each entity that is treated as a single employer with the Seller for purposes of Section 414 of the Code, or Section 4001(a)(14) or 4001(b) of ERISA.
		

		
			“Fundamental Representations” means (a) with respect to the Seller, the representations and warranties of the Seller contained in Section ‎3.1 (“Organization and Qualification”), Section ‎3.2 (“Binding Obligation”), Section ‎3.8(a) (“Title to Purchased Assets”), Section 3.7 (“Leases”) and Section ‎3.11 (“Brokers”); and (b) with respect to the Purchaser, the representations and warranties of the Purchaser contained in Section ‎4.1 (“Organization”), Section ‎4.2 (“Binding Obligation”), Section ‎4.5 (“Brokers”) and Section ‎4.7 (Retail Operations).
		

		
			“Governmental Authority” means any nation or government, any state, province or other political subdivision thereof, any entity exercising executive, legislative, judicial, regulatory or administration functions of or pertaining to government, or any government authority, agency, department, board, tribunal, bureau, commission or instrumentality of the United States, any state of the United States, or any municipality or other political subdivision thereof or of any other government in any jurisdiction, and any court, tribunal or arbitrator(s) of competent jurisdiction, and any governmental or non-governmental self-regulatory organization, agency or authority in any jurisdiction.
		

		
			“Hazardous Materials”  means (a) hazardous materials, hazardous substances, extremely hazardous substances, toxic substances, hazardous wastes or words of similar import as defined under any Environmental Laws; (b) petroleum, including without limitation, crude oil or any fraction thereof; (c) any radioactive material; (d) asbestos in any form or condition regulated under applicable Environmental Laws; (e) polychlorinated byphenyls (“PCBs”) or PCB-containing materials regulated under applicable Environmental Laws; and (f) any other material, substance or waste to which liability or standards of conduct are currently imposed under any Environmental Laws.
		

		
			“Income Taxes” means any Tax based on or measured by reference to gross or net income or receipts, and franchise, net worth, capital or other doing business Taxes, including any interest, penalty or addition thereto, irrespective of whether disputed.
		

		
			“Indebtedness” means, with respect to any Person and without duplication, (a) all indebtedness for borrowed money, including all accrued but unpaid interest, penalties, fees and prepayment premiums, (b) all indebtedness owed under any credit agreement or facility or evidenced by any note, debenture, bond or similar instrument, (c) all capitalized lease obligations, (d) all obligations issued or assumed as the deferred purchase price of assets, property or services (including all obligations under any acquisition agreements for any earn-out, note payable or other contingent payment), (e) all obligations (whether fixed or contingent) to reimburse any bank or other Person in respect of amounts paid or payable under a letter of credit or a line of credit and (f) all guarantees of obligations of another Person of the type described in clauses (a) through (e) of this definition.
		

		
			

		 

		

			 

		

		

			A-2

		

		

			 

		

		

		
			“Indemnitor” means any party hereto from which any Indemnitee is seeking indemnification pursuant to the provisions of this Agreement.
		

		
			“Inventory Value” means the value for Inventory, as determined on a store-by-store basis and set forth on Schedule ‎1.2(a).
		

		
			“IRS” means the United States Internal Revenue Service.
		

		
			“Law” means any federal, state, or local law (including common law), treaty, statute, code, ordinance, rule, regulation, written Order or other requirement or guideline of any Governmental Authority,  including any Order.
		

		
			“Liability” means any liability or obligation, whether known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated and whether due or to become due, regardless of when asserted.
		

		
			“Loss” or “Losses”, in respect of any matter, means any actual out-of-pocket loss,  Liability,  Tax,  cost, expense (including expenses of investigation), judgment, settlement or damage arising out of or resulting from such matter, including court costs and reasonable out-of-pocket fees of attorneys’ and other professionals retained in connection with any legal proceeding.
		

		
			“Material Adverse Effect” means any event, occurrence, fact, condition or change that, individually or in the aggregate, (a) has had or would reasonably be expected to have a material adverse effect on the assets, business, condition (financial or otherwise), liabilities or results of operations of the stores at the Transferred Locations, or (b) is reasonably likely to prevent or materially impair or delay the ability of the Seller to consummate the transactions contemplated hereby.
		

		
			“Minimum Rent”  means, as to each Sublease for each Transferred Location, the amount set forth on Exhibit A.3.
		

		
			“Order” means any judgment, writ, decree, compliance agreement, injunction or judicial or administrative order or legally binding determination from any Governmental Authority.
		

		
			“Permits” means any material permits, certificates, licenses, approvals, registrations and authorizations.
		

		
			“Permitted Encumbrances” means, (a) Encumbrances for Taxes, assessments and other government charges not yet due and payable or which are being contested in good faith by appropriate proceedings, (b) mechanics’, workmen’s, repairmen’s, warehousemen’s, carriers’ or other similar Encumbrances (including Encumbrances created by operation of Laws) for charges not yet due and payable or which are being contested in good faith by appropriate proceedings, (c)  non-monetary Encumbrances incurred in the ordinary course of the business that are not material and do not adversely affect the title of, materially detract from the value of or materially interfere with any present use of, the assets or properties affected by such Encumbrance, (d) Encumbrances in respect of easements, Permits, licenses, rights of way, restrictive covenants, reservations or encroachments or defects or irregularities in, and other similar exceptions to, title and any conditions with respect to real property or any other condition that (i) would be disclosed by a physical inspection of the property, a current survey, title report or other public record or (ii) does not have a material adverse effect on the use of the Transferred Locations, (e) municipal bylaws, development restrictions or regulations, facility costs, sharing and servicing Contracts, and zoning, building or planning restrictions or regulations, (f) Encumbrances in favor of any landlord of real property leased by  the Seller, (g) Encumbrances created by any mortgage of any landlord of real property leased by the Seller, (h) Encumbrances created by the acts of the Purchaser and the Purchaser’s Affiliates, and (i) Encumbrances related to labor performed, or on account of any material supplied, on or to the Transferred Locations prior to Closing, as to which any lien is or legally can be asserted against the 

		 

		

			 

		

		

			A-3

		

		

			 

		

Seller’s leasehold interest in the Transferred Locations or the improvements located thereon, provided the Seller shall, at its sole expense, promptly remove and discharge of record, by bond or otherwise, any such liens filed against the Transferred Locations in accordance with applicable Law, no later than fifteen (15) Business Days after the Seller receives written notice of the filing of any such lien.
		

		
			“Person” means any individual, corporation (including any not for profit corporation), general or limited partnership, limited liability partnership, joint venture, estate, trust, firm, company (including any limited liability company or joint stock company), association, organization, entity or Governmental Authority.
		

		
			“Post-Closing Period” means any taxable period (or portion thereof) beginning on or after the Closing Date and the portion of the Straddle Period beginning on and including the Closing Date.
		

		
			“Pre-Closing Period” means any taxable period (or portion thereof) ending on or before the day immediately prior to the Closing Date and the portion of the Straddle Period ending on and including the day immediately prior to the Closing Date.
		

		
			“Private Label Inventory”  means any inventory, merchandise, finished goods, packaging, labels or supplies related to any products sold, marketed or distributed by the Seller under the “Field & Stream”, “Jawbone”, “Quest” labels.
		

		
			“Representatives” means, with respect to any Person, any director, officer, manager, agent, employee, general partner, member, stockholder, advisor or representative of such Person.
		

		
			“Schedule” means each Schedule to this Agreement delivered by any party hereto.
		

		
			“Seller Employees” means all employees of the Seller employed exclusively at the Transferred Locations immediately prior to the Closing.
		

		
			“Seller Taxes”  means (a) any and all Income Taxes owed by the Seller or any of its Affiliates for any period; (b) any and all Taxes relating to the Excluded Assets or Excluded Liabilities for any period; (c) any and all Taxes of the Seller related to the operations of the stores at the Transferred Locations or the ownership of the Purchased Assets for any Pre-Closing Period; (d) any and all Taxes of the Seller or any other Person by reason of being a member of a consolidated, combined, unitary or affiliated group that includes the Seller or any of its present or past Affiliates prior to the Closing (including liability for Taxes under Section 1.1502-6(a) of the Treasury Regulations or any analogous or similar state, local or foreign law or regulation), by reason of a Tax sharing, Tax indemnity or similar agreement entered into by the Seller or any of its present or past Affiliates prior to the Closing or by reason of transferee or successor liability arising in respect of a transaction undertaken by the Seller or any of its present or past Affiliates prior to the Closing;  and (e) Seller’s share of any and all Transfer Taxes and other amounts pursuant to Section ‎9.15.
		

		
			“Seller’s Knowledge” or any similar phrase means the actual knowledge of any of Herman Blatz, Kristen Boscarino, Debbie Victorelli or Stephen P. Miller and the knowledge each such individual would have after reasonable investigation and inquiry by such individual in their respective capacities with the Seller.
		

		
			“Straddle Period” means any taxable year or period beginning on or before the day immediately prior to the Closing Date and ending after the day immediately prior to the Closing Date.
		

		
			“Tax” or “Taxes”  means (a) all federal, state, county, local, municipal, foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, 

		 

		

			 

		

		

			A-4

		

		

			 

		

registration,  escheat, unclaimed property, value added, alternative or add-on minimum, estimated, and other taxes, assessments, duties, levies, tariffs, imposts, governmental impositions or similar charges of any kind whatsoever, (b) all interest, penalties and additions imposed with respect to such amounts, imposed by any Governmental Authority, whether disputed or not, and (c) any obligations to indemnify or otherwise assume or succeed to the Tax liability of any other Person, other than Contracts entered into in the ordinary course of business where the principal purpose of such Contract is unrelated to Tax Liability.
		

		
			“Tax Contest” means any audit, investigation, claim, dispute or controversy relating to Taxes.
		

		
			“Tax Returns” means any report, declaration, return, information return or statement, claim for refund, election, disclosure, certification, schedule, estimate or other statement required to be supplied to a  Governmental Authority in connection with Taxes,  including any schedule or attachment thereto, and including any amendments thereof.
		

		
			“Third Party Claim” means any claim or demand for which an Indemnitor may be liable to an Indemnitee hereunder which is asserted by a third party.
		

		
			“Transaction” means the transactions contemplated by this Agreement and the other Transaction Documents.
		

		
			“Transaction Documents” means this Agreement, the Transition Services Agreement, the Bill of Sale, the Subleases and the other agreements, certificates instruments and documents required to be delivered at the Closing.
		

		
			“Transfer Taxes” means all sales, transfer, conveyance, stamp, documentary, filing, recordation and other similar transfer Taxes, together with interest, additions or penalties with respect thereto resulting from the transactions contemplated by this Agreement and the agreements and contracts referenced in this Agreement, including, without limitation, any Taxes owed or payable in connection with any sales, use, value added, transfer, stamp, registration, documentary, excise, real property transfer or gains, or similar Taxes incurred as a result of the transactions contemplated by this Agreement.
		

		
			“WARN Act” means Workers Adjustment and Retraining Notification Act.  
		

		
			2. Definition Reference Table.  The definitions of the following terms can be found in the section of this Agreement set forth opposite such term in the table below.
		

			
					
						Definitions

					
					
						Reference Section

				
	
					
						“Agreement”

					
					
						Preamble

				
	
					
						“Allocation Schedule”

					
					
						Section ‎1.6

				
	
					
						“Assumed Liabilities”

					
					
						Section ‎1.3(a)

				
	
					
						“Basket Amount”

					
					
						Section ‎7.3(b)

				
	
					
						“Bill of Sale”

					
					
						Section ‎1.4(a)(iii)

				
	
					
						“Books and Records” 

					
					
						Section ‎1.1(a)(iv)

				
	
					
						“Cap”

					
					
						Section ‎7.3(a)

				
	
					
						“Claims Notice”

					
					
						Section ‎7.4(b)

				
	
					
						“Cut-Off Date”

					
					
						Section ‎7.1

				
	
					
						“Equitable Exceptions”

					
					
						Section ‎3.2

				
	
					
						“Excluded Assets”

					
					
						Section ‎1.1(b)

				
	
					
						“Excluded Liabilities”

					
					
						Section ‎1.3(b)

				
	
					
						“Fixed Assets”

					
					
						Section ‎1.1(a)(iii)

				
	
					
						“Indemnitee”

					
					
						Section ‎7.2(b)

				
	
					
						“Inventory”

					
					
						Section ‎1.1(a)(ii)

				
	
					
						“Leases”

					
					
						Section ‎3.6

				

		 

		

			 

		

		

			A-5

		

		

			 

		

	
					
						

					
						“Outside Date”

					
					
						Section ‎8.1(b)

				
	
					
						“Physical Inventories”

					
					
						Section ‎3.8(b)

				
	
					
						“Property Taxes”

					
					
						Section ‎5.5(b)

				
	
					
						“Purchase Price”

					
					
						Section ‎1.2(a)

				
	
					
						“Purchased Assets”

					
					
						Section ‎1.1(a)

				
	
					
						“Purchaser”

					
					
						Preamble

				
	
					
						“Purchaser Indemnitee”

					
					
						Section ‎7.2(a)

				
	
					
						“Purchaser Savings Plan”

					
					
						Section ‎5.4(d)

				
	
					
						“Purchaser’s Plans”

					
					
						Section ‎5.4(b)

				
	
					
						“Responsible Persons” 

					
					
						Section ‎5.3(c)

				
	
					
						“Restrictive Covenants”

					
					
						Section ‎1.6

				
	
					
						“Seller”

					
					
						Preamble

				
	
					
						“Seller Indemnitee”

					
					
						Section ‎7.2(b)

				
	
					
						“Sublease”

					
					
						Section ‎1.4(a)(iii)

				
	
					
						“Subsequent Closing”

					
					
						Section ‎5.11

				
	
					
						“Tax Records”

					
					
						Section ‎5.5(a)

				
	
					
						“Transferred Employee”

					
					
						Section ‎5.3(b)

				
	
					
						“Transition Services Agreement”

					
					
						Section ‎1.4(a)(ii)

				

		
			 
		

		
			

		 

		

			 

		

		

			A-6

		

		

			 

		

		

		
			EXHIBIT A.1
		

		
			 
		

		
			STORE LOCATIONS 
		

		
			 
		

			
	
			
				 1.
			

			
	
			
			Horseheads, NY

			
	
			
				 2.
			

			
	
			
			Rochester, NY

			
	
			
				 3.
			

			
	
			
			Washington, PA

			
	
			
				 4.
			

			
	
			
			Altoona, PA

			
	
			
				 5.
			

			
	
			
			Camp Hill, PA

			
	
			
				 6.
			

			
	
			
			Greensboro, NC

			
	
			
				 7.
			

			
	
			
			Asheville, NC

			
	
			
				 8.
			

			
	
			
			Troy, MIExhibit 4.1

 

 

DEPOSIT AGREEMENT

 

 

by and among

 

AESTHETIC MEDICAL INTERNATIONAL HOLDINGS GROUP LIMITED

 

as Issuer,

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

 

as Depositary,

 

AND

 

THE HOLDERS AND BENEFICIAL OWNERS
 OF AMERICAN DEPOSITARY SHARES EVIDENCED BY
 AMERICAN DEPOSITARY RECEIPTS ISSUED HEREUNDER

 

 

Dated as of [·], 2019

 

 

 

DEPOSIT AGREEMENT

 

DEPOSIT AGREEMENT, dated as of [·], 2019, by and among (i) Aesthetic Medical International Holdings Group Limited, a company incorporated in the Cayman Islands, with its principal executive office at 1122 Nanshan Boulevard, Nanshan District, Shenzhen, Guangdong Province, China 518052 and its registered office at the offices of Vistra (Cayman) Limited, P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205 Cayman Islands (together with its successors, the “Company”), (ii) Deutsche Bank Trust Company Americas, an indirect wholly owned subsidiary of Deutsche Bank A.G., acting in its capacity as depositary, with its principal office at 60 Wall Street, New York, NY 10005, United States of America (the “Depositary”, which term shall include any successor depositary hereunder) and (iii) all Holders and Beneficial Owners of American Depositary Shares evidenced by American Depositary Receipts issued hereunder (all such capitalized terms as hereinafter defined).

 

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

 

WHEREAS, the Company desires to establish an ADR facility with the Depositary to provide for the deposit of the Shares and the creation of American Depositary Shares representing the Shares so deposited;

 

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

 

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

 

WHEREAS, the American Depositary Shares to be issued pursuant to the terms of this Deposit Agreement are accepted for trading on NASDAQ; and

 

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

 

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

 

ARTICLE I.

 

DEFINITIONS

 

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

 

SECTION 1.1  “Affiliate” shall have the meaning assigned to such term by the Commission under Regulation C promulgated under the Securities Act.

 

1

 

SECTION 1.2  “Agent” shall mean such entity or entities as the Depositary may appoint under Section 7.8 hereof, including the Custodian or any successor or addition thereto.

 

SECTION 1.3  “American Depositary Share(s)” and “ADS(s)” shall mean the securities represented by the rights and interests in the Deposited Securities granted to the Holders and Beneficial Owners pursuant to this Deposit Agreement and evidenced by the American Depositary Receipts issued hereunder.  Each American Depositary Share shall represent the right to receive [·] Share[s], until there shall occur a distribution upon Deposited Securities referred to in Section 4.2 hereof or a change in Deposited Securities referred to in Section 4.9 hereof with respect to which additional American Depositary Receipts are not executed and delivered and thereafter each American Depositary Share shall represent the Shares or Deposited Securities specified in such Sections.

 

SECTION 1.4  “Article” shall refer to an article of the American Depositary Receipts as set forth in the Form of Face of Receipt and Form of Reverse of Receipt in Exhibit A and Exhibit B annexed hereto.

 

SECTION 1.5  “Articles of Association” shall mean the articles of association of the Company, as amended from time to time.

 

SECTION 1.6  “ADS Record Date” shall have the meaning given to such term in Section 4.7 hereof.

 

SECTION 1.7  “Beneficial Owner” shall mean as to any ADS, any person or entity having a beneficial interest in such ADS.  A Beneficial Owner need not be the Holder of the ADR evidencing such ADSs. A Beneficial Owner may exercise any rights or receive any benefits hereunder solely through the Holder of the ADR(s) evidencing the ADSs in which such Beneficial Owner has an interest.

 

SECTION 1.8  “Business Day” shall mean each Monday, Tuesday, Wednesday, Thursday and Friday which is not (a) a day on which banking institutions in the Borough of Manhattan, The City of New York are authorized or obligated by law or executive order to close and (b) a day on which the market(s) in which ADSs are traded are closed.

 

SECTION 1.9  “Commission” shall mean the Securities and Exchange Commission of the United States or any successor governmental agency in the United States.

 

SECTION 1.10  “Company” shall mean Aesthetic Medical International Holdings Group Limited, a company incorporated and existing under the laws of the Cayman Islands, and its successors.

 

SECTION 1.11  “Corporate Trust Office” when used with respect to the Depositary, shall mean the corporate trust office of the Depositary at which at any particular time its depositary receipts business shall be administered, which, at the date of this Deposit Agreement, is located at 60 Wall Street, New York, New York 10005, U.S.A.

 

SECTION 1.12  “Custodian” shall mean, as of the date hereof, Deutsche Bank AG, Hong Kong Branch, having its principal office at 57/F International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong S.A.R., People’s Republic of China, as the custodian for the purposes of this Deposit Agreement, and any other firm or corporation  which may hereinafter be appointed by the Depositary pursuant to the terms of Section 5.5 hereof as a successor or an additional custodian or custodians hereunder, as the context shall require.  The term “Custodian” shall mean all custodians, collectively.

 

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SECTION 1.13  “Deliver”, “Deliverable” and “Delivery” shall mean, when used in respect of American Depositary Shares, Receipts, Deposited Securities and Shares, the physical delivery of the certificate representing such security, or the electronic delivery of such security by means of book-entry transfer, as appropriate, including, without limitation, through DRS/Profile.  With respect to DRS/Profile ADRs, the terms “execute”, “issue”, “register”, “surrender”, “transfer” or “cancel” refer to applicable entries or movements to or within DRS/Profile.

 

SECTION 1.14  “Deposit Agreement” shall mean this Deposit Agreement and all exhibits annexed hereto, as the same may from time to time be amended and supplemented in accordance with the terms hereof.

 

SECTION 1.15  “Depositary” shall mean Deutsche Bank Trust Company Americas, an indirect wholly owned subsidiary of Deutsche Bank AG, in its capacity as depositary under the terms of this Deposit Agreement, and any successor depositary hereunder.

 

SECTION 1.16  “Deposited Securities” as of any time shall mean Shares at such time deposited or deemed to be deposited under this Deposit Agreement and any and all other securities, property and cash received or deemed to be received by the Depositary or the Custodian in respect thereof and held hereunder, subject, in the case of cash, to the provisions of Section 4.6.

 

SECTION 1.17  “Dollars” and “$” shall mean the lawful currency of the United States.

 

SECTION 1.18  “DRS/Profile” shall mean the system for the uncertificated registration of ownership of securities pursuant to which ownership of ADSs is maintained on the books of the Depositary without the issuance of a physical certificate and transfer instructions may be given to allow for the automated transfer of ownership between the books of DTC and the Depositary.  Ownership of ADSs held in DRS/Profile is evidenced by periodic statements issued by the Depositary to the Holders entitled thereto.

 

SECTION 1.19  “DTC” shall mean The Depository Trust Company, the central book-entry clearinghouse and settlement system for securities traded in the United States, and any successor thereto.

 

SECTION 1.20  “DTC Participants” shall mean participants within DTC.

 

SECTION 1.21  “Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as from time to time amended.

 

SECTION 1.22  “Foreign Currency” shall mean any currency other than Dollars.

 

SECTION 1.23  “Foreign Registrar” shall mean the entity, if any, that carries out the duties of registrar for the Shares or any successor as registrar for the Shares and any other appointed agent of the Company for the transfer and registration of Shares or, if no such agent is so appointed and acting, the Company.

 

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SECTION 1.24  “Holder” shall mean the person in whose name a Receipt is registered on the books of the Depositary (or the Registrar, if any) maintained for such purpose.  A Holder may or may not be a Beneficial Owner.  A Holder shall be deemed to have all requisite authority to act on behalf of those Beneficial Owners of the ADRs registered in such Holder’s name.

 

SECTION 1.25  “Indemnified Person” and “Indemnifying Person” shall have the respective meanings set forth in Section 5.8 hereof.

 

SECTION 1.26  “Losses” shall have the meaning set forth in Section 5.8 hereof.

 

SECTION 1.27  “Memorandum” shall mean the memorandum of association of the Company.

 

SECTION 1.28  “Opinion of Counsel” shall mean a written opinion from legal counsel to the Company who is acceptable to the Depositary.

 

SECTION 1.29  “Receipt(s); “American Depositary Receipt(s)”; and “ADR(s)” shall mean the certificate(s) or statement(s) issued by the Depositary evidencing the American Depositary Shares issued under the terms of this Deposit Agreement, as such Receipts may be amended from time to time in accordance with the provisions of this Deposit Agreement.  References to Receipts shall include physical certificated Receipts as well as ADSs issued through any book-entry system, including, without limitation, DRS/Profile, unless the context otherwise requires.

 

SECTION 1.30  “Registrar” shall mean the Depositary or any bank or trust company having an office in the Borough of Manhattan, The City of New York, which shall be appointed by the Depositary to register ownership of Receipts and transfer of Receipts as herein provided, and shall include any co-registrar appointed by the Depositary for such purposes.  Registrars (other than the Depositary) may be removed and substitutes appointed by the Depositary.

 

SECTION 1.34 “Restricted Securities” shall mean Shares which (i) have been acquired directly or indirectly from the Company or any of its Affiliates in a transaction or chain of transactions not involving any public offering and subject to resale limitations under the Securities Act or the rules issued thereunder, or (ii) are held by an officer or director (or persons performing similar functions) or other Affiliate of the Company or (iii) are subject to other restrictions on sale or deposit under the laws of the United States or the Cayman Islands, under a shareholders’ agreement, shareholders’ lock-up agreement or the Articles of Association or under the regulations of an applicable securities exchange unless, in each case, such Shares are being sold to persons other than an Affiliate of the Company in a transaction (x) covered by an effective resale registration statement or (y) exempt from the registration requirements of the Securities Act (as hereafter defined) and the Shares are not, when held by such person, Restricted Securities.

 

SECTION 1.36  “Securities Act” shall mean the United States Securities Act of 1933, as from time to time amended.

 

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SECTION 1.37  “Shares” shall mean ordinary shares in registered form of the Company, par value $0.001 each, heretofore or hereafter validly issued and outstanding and fully paid.  References to Shares shall include evidence of rights to receive Shares,  whether or not stated in the particular instance; provided, however, that in no event shall Shares include evidence of rights to receive Shares with respect to which the full purchase price has not been paid or Shares as to which pre-emptive rights have theretofore not been validly waived or exercised; provided further, however, that, if there shall occur any change in par value, split-up, consolidation, reclassification, exchange, conversion or any other event described in Section 4.9 hereof in respect of the Shares, the term “Shares” shall thereafter, to the extent permitted by law, represent the successor securities resulting from such change in par value, split-up, consolidation, reclassification, exchange, conversion or event.

 

SECTION 1.38  “United States” or “U.S.” shall mean the United States of America.

 

ARTICLE II.

 

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

 

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

 

SECTION 2.2  Form and Transferability of Receipts.

 

(a)           Form.  Receipts in certificated form shall be substantially in the form set forth in Exhibit A and Exhibit B annexed to this Deposit Agreement, with appropriate insertions, modifications and omissions, as hereinafter provided.  Receipts may be issued in denominations of any number of American Depositary Shares.  No Receipt in certificated form shall be entitled to any benefits under this Deposit Agreement or be valid or obligatory for any purpose, unless such Receipt shall have been dated and signed by the manual or facsimile signature of a duly authorized signatory of the Depositary.  The Depositary shall maintain books on which each Receipt so executed and Delivered, in the case of Receipts in certificated form, and each Receipt issued through any book-entry system, including, without limitation, DRS/Profile, in either case as hereinafter provided, and the transfer of each such Receipt shall be registered.  Receipts in certificated form bearing the manual or facsimile signature of a duly authorized signatory of the Depositary who was at any time a proper signatory of the Depositary shall bind the Depositary, notwithstanding the fact that such signatory has ceased to hold such office prior to the execution and Delivery of such Receipts by the Registrar or did not hold such office on the date of issuance of such Receipts.

 

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Notwithstanding anything in this Deposit Agreement or in the form of Receipt to the contrary, to the extent available by the Depositary, ADSs shall be evidenced by Receipts  issued through any book-entry system, including, without limitation, DRS/Profile, unless certificated Receipts are specifically requested by the Holder.  Holders and Beneficial Owners shall be bound by the terms and conditions of this Deposit Agreement and of the form of Receipt, regardless of whether their Receipts are in certificated form or are issued through any book-entry system, including, without limitation, DRS/Profile.

 

(b)           Legends.  In addition to the foregoing, the Receipts may, and upon the written request of the Company shall, be endorsed with, or have incorporated in the text thereof, such legends or recitals or modifications not inconsistent with the provisions of this Deposit Agreement as may be (i) necessary to enable the Depositary and the Company to perform their respective obligations hereunder, (ii) required to comply with any applicable laws or regulations, or with the rules and regulations of any securities exchange or market upon which ADSs may be traded, listed or quoted, or to conform with any usage with respect thereto, (iii) necessary to indicate any special limitations or restrictions to which any particular ADRs or ADSs are subject by reason of the date of issuance of the Deposited Securities or otherwise or (iv) required by any book-entry system in which the ADSs are held.  Holders and Beneficial Owners shall be deemed, for all purposes, to have notice of, and to be bound by, the terms and conditions of the legends set forth, in the case of Holders, on the ADR registered in the name of the applicable Holders or, in the case of Beneficial Owners, on the ADR representing the ADSs owned by such Beneficial Owners.

 

(c)           Title. Subject to the limitations contained herein and in the form of Receipt, title to a Receipt (and to the ADSs evidenced thereby), when properly endorsed (in the case of certificated Receipts) or upon delivery to the Depositary of proper instruments of transfer, shall be transferable by delivery with the same effect as in the case of a negotiable instrument under the laws of the State of New York; provided, however, that the Depositary, notwithstanding any notice to the contrary, may treat the Holder thereof as the absolute owner thereof for the purpose of determining the person entitled to distribution of dividends or other distributions or to any notice provided for in this Deposit Agreement and for all other purposes and neither the Depositary nor the Company will have any obligation or be subject to any liability under the Deposit Agreement to any holder of a Receipt, unless such holder is the Holder thereof.

 

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SECTION 2.3  Deposits.

 

(a)           Subject to the terms and conditions of this Deposit Agreement and applicable law, Shares or evidence of rights to receive Shares may be deposited by any person (including the Depositary in its individual capacity but subject, however, in the case of the Company or any Affiliate of the Company, to Section 5.7 hereof) at any time beginning on the 181st day after the date of the prospectus contained in the registration statement on Form F-1 under which the ADSs are first sold or on such earlier date as the Company (with the approval of the underwriters referred to in the said prospectus) may specify in writing to the Depositary, whether or not the transfer books of the Company or the Foreign Registrar, if any, are closed, by Delivery of the Shares to the Custodian.  Except for Shares deposited by the Company in connection with the initial sale of ADSs under the registration statement on Form F-1, no deposit of Shares shall be accepted under this Deposit Agreement prior to such date.  Every deposit of Shares shall be accompanied by the following: (A)(i) in the case of Shares represented by certificates issued in registered form, appropriate instruments of transfer or endorsement, in a form satisfactory to the Custodian, (ii) in the case of Shares represented by certificates issued in bearer form, such Shares or the certificates representing such Shares and (iii) in the case of Shares Delivered by book-entry transfer, confirmation of such book-entry  transfer to the Custodian or that irrevocable instructions have been given to cause such Shares to be so transferred, (B) such certifications and payments (including, without limitation, the Depositary’s fees and related charges) and evidence of such payments (including, without limitation, stamping or otherwise marking such Shares by way of receipt) as may be required by the Depositary or the Custodian in accordance with the provisions of this Deposit Agreement, (C) if the Depositary so requires, a written order directing the Depositary to execute and Deliver to, or upon the written order of, the person or persons stated in such order a Receipt or Receipts for the number of American Depositary Shares representing the Shares so deposited, (D) evidence satisfactory to the Depositary (which may include an opinion of counsel reasonably satisfactory to the Depositary provided at the cost of the person seeking to deposit Shares) that all conditions to such deposit have been met and all necessary approvals have been granted by, and there has been compliance with the rules and regulations of, any applicable governmental agency and (E) if the Depositary so requires, (i) an agreement, assignment or instrument satisfactory to the Depositary or the Custodian which provides for the prompt transfer by any person in whose name the Shares are or have been recorded to the Custodian of any distribution, or right to subscribe for additional Shares or to receive other property in respect of any such deposited Shares or, in lieu thereof, such indemnity or other agreement as shall be satisfactory to the Depositary or the Custodian and (ii) if the Shares are registered in the name of the person on whose behalf they are presented for deposit, a proxy or proxies entitling the Custodian to exercise voting rights in respect of the Shares for any and all purposes until the Shares so deposited are registered in the name of the Depositary, the Custodian or any nominee.  No Share shall be accepted for deposit unless accompanied by confirmation or such additional evidence, if any is required by the Depositary, that is reasonably satisfactory to the Depositary or the Custodian that all conditions to such deposit have been satisfied by the person depositing such Shares under the laws and regulations of the Cayman Islands and any necessary approval has been granted by any governmental body in the Cayman Islands, if any, which is then performing the function of the regulator of currency exchange.  The Depositary may issue Receipts against evidence of rights to receive Shares from the Company, any agent of the Company or any custodian, registrar, transfer agent, clearing agency or other entity involved in ownership or transaction records in respect of the Shares.  Without limitation of the foregoing, the Depositary shall not knowingly accept for deposit under this Deposit Agreement any Shares or other Deposited Securities required to be registered under the provisions of the Securities Act, unless a registration statement is in effect as to such Shares or other Deposited Securities, or any Shares or other Deposited Securities the deposit of which would violate any provisions of the Memorandum and Articles of Association.  The Depositary shall use commercially reasonable efforts to comply with reasonable written instructions of the Company that the Depositary shall not accept for deposit hereunder any Shares specifically identified in such instructions at such times and under such circumstances as may reasonably be specified in such instructions in order to facilitate the Company’s compliance with the securities laws in the United States and other jurisdictions, provided that the Company shall indemnify the Depositary and the Custodian for any claims and losses arising from not accepting the deposit of any Shares identified in the Company’s instructions.

 

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(b)           As soon as practicable after receipt of any permitted deposit hereunder and compliance with the provisions of this Deposit Agreement, the Custodian shall present the Shares so deposited, together with the appropriate instrument or instruments of transfer or endorsement, duly stamped, to the Foreign Registrar for transfer and registration of the Shares (as soon as transfer and registration can be accomplished and at the expense of the person for whom the deposit is made) in the name of the Depositary, the Custodian or a  nominee of either.  Deposited Securities shall be held by the Depositary or by a Custodian for the account and to the order of the Depositary or a nominee, in each case for the account of the Holders and Beneficial Owners, at such place or places as the Depositary or the Custodian shall determine.

 

(c)           In the event any Shares are deposited which entitle the holders thereof to receive a per-share distribution or other entitlement in an amount different from the Shares then on deposit, the Depositary is authorized to take any and all actions as may be necessary (including, without limitation, making the necessary notations on Receipts) to give effect to the issuance of such ADSs and to ensure that such ADSs are not fungible with other ADSs issued hereunder until such time as the entitlement of the Shares represented by such non-fungible ADSs equals that of the Shares represented by ADSs prior to such deposit. The Company agrees to give timely written notice to the Depositary if any Shares issued or to be issued contain rights different from those of any other Shares theretofore issued and shall assist the Depositary with the establishment of procedures enabling the identification of such non-fungible Shares upon Delivery to the Custodian.

 

SECTION 2.4  Execution and Delivery of Receipts.  After the deposit of any Shares pursuant to Section 2.3 hereof, the Custodian shall notify the Depositary of such deposit and the person or persons to whom or upon whose written order a Receipt or Receipts are Deliverable in respect thereof and the number of American Depositary Shares to be evidenced thereby.  Such notification shall be made by letter, first class airmail postage prepaid, or, at the request, risk and expense of the person making the deposit, by cable, telex, SWIFT, facsimile or electronic transmission.  After receiving such notice from the Custodian, the Depositary, subject to this Deposit Agreement (including, without limitation, the payment of the fees, expenses, taxes and/or other charges owing hereunder), shall issue the ADSs representing the Shares so deposited to or upon the order of the person or persons named in the notice delivered to the Depositary and shall execute and Deliver a Receipt registered in the name or names requested by such person or persons evidencing in the aggregate the number of American Depositary Shares to which such person or persons are entitled.

 

SECTION 2.5  Transfer of Receipts; Combination and Split-up of Receipts.

 

(a)           Transfer.  The Depositary, or, if a Registrar (other than the Depositary) for the Receipts shall have been appointed, the Registrar, subject to the terms and conditions of this Deposit Agreement, shall register transfers of Receipts on its books, upon surrender at the Corporate Trust Office of the Depositary of a Receipt by the Holder thereof in person or by duly authorized attorney, properly endorsed in the case of a certificated Receipt or accompanied by, or in the case of Receipts issued through any book-entry system, including, without limitation, DRS/Profile, receipt by the Depositary of, proper instruments of transfer (including signature guarantees in accordance with standard industry practice) and duly stamped as may be required by the laws of the State of New York, of the United States, of the Cayman Islands and of any other applicable jurisdiction.  Subject to the terms and conditions of this Deposit Agreement, including payment of the applicable fees and charges of the Depositary set forth in Section 5.9 hereof and Article (9) of the Receipt, the Depositary shall execute a new Receipt or Receipts and Deliver the same to or upon the order of the person entitled thereto evidencing the same aggregate number of American Depositary Shares as those evidenced by the Receipts surrendered.

 

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(b)           Combination and Split Up.  The Depositary, subject to the terms and conditions of this Deposit Agreement shall, upon surrender of a Receipt or Receipts for the purpose of effecting a split-up or combination of such Receipt or Receipts and upon payment to the Depositary of the applicable fees and charges set forth in Section 5.9 hereof and Article (9) of the Receipt, execute and Deliver a new Receipt or Receipts for any authorized number of American Depositary Shares requested, evidencing the same aggregate number of American Depositary Shares as the Receipt or Receipts surrendered.

 

(c)           Co-Transfer Agents.  The Depositary may appoint one or more co-transfer agents for the purpose of effecting transfers, combinations and split-ups of Receipts at designated transfer offices on behalf of the Depositary. In carrying out its functions, a co-transfer agent may require evidence of authority and compliance with applicable laws and other requirements by Holders or persons entitled to such Receipts and will be entitled to protection and indemnity, in each case to the same extent as the Depositary. Such co-transfer agents may be removed and substitutes appointed by the Depositary.  Each co-transfer agent appointed under this Section 2.5 (other than the Depositary) shall give notice in writing to the Depositary accepting such appointment and agreeing to be bound by the applicable terms of this Deposit Agreement.

 

(d)           Substitution of Receipts. At the request of a Holder, the Depositary shall, for the purpose of substituting a certificated Receipt with a Receipt issued through any book-entry system, including, without limitation, DRS/Profile, or vice versa, execute and Deliver a certificated Receipt or deliver a statement, as the case may be, for any authorized number of ADSs requested, evidencing the same aggregate number of ADSs as those evidenced by the relevant Receipt.

 

SECTION 2.6  Surrender of Receipts and Withdrawal of Deposited Securities.  Upon surrender, at the Corporate Trust Office of the Depositary, of American Depositary Shares for the purpose of withdrawal of the Deposited Securities represented thereby, and upon payment of (i) the fees and charges of the Depositary for the making of withdrawals of Deposited Securities and cancellation of Receipts (as set forth in Section 5.9 hereof and Article (9) of the Receipt) and (ii) all fees, taxes and/or governmental charges payable in connection with such surrender and withdrawal, and subject to the terms and conditions of this Deposit Agreement, the Memorandum and Articles of Association, Section 7.11 hereof and any other provisions of or governing the Deposited Securities and other applicable laws, the Holder of such American Depositary Shares shall be entitled to Delivery, to him or upon his order, of the Deposited Securities at the time represented by the American Depositary Shares so surrendered.  American Depositary Shares may be surrendered for the purpose of withdrawing Deposited Securities by Delivery of a Receipt evidencing such American Depositary Shares (if held in certificated form) or by book-entry Delivery of such American Depositary Shares to the Depositary.

 

A Receipt surrendered for such purposes shall, if so required by the Depositary, be properly endorsed in blank or accompanied by proper instruments of transfer in blank, and if the Depositary so requires, the Holder thereof shall execute and deliver to the Depositary a written order directing the Depositary to cause the Deposited Securities being withdrawn to be Delivered to or upon the written order of a person or persons designated in such order. Thereupon, the Depositary shall direct the Custodian to Deliver (without unreasonable delay) at the designated office of the Custodian or through a book-entry delivery of the Shares (in either case, subject to Sections 2.7, 3.1, 3.2, 5.9, hereof and to the other terms and conditions of this Deposit Agreement, to the Memorandum and Articles of Association, and to the provisions of or governing the Deposited Securities and applicable laws, now or hereafter in effect) to or upon the written order of the person or persons designated in the order delivered  to the Depositary as provided above, the Deposited Securities represented by such American Depositary Shares, together with any certificate or other proper documents of or relating to title of the Deposited Securities as may be legally required, as the case may be, to or for the account of such person.

 

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The Depositary may refuse to accept for surrender American Depositary Shares only in the circumstances described in Article (4) of the Receipt.  Subject thereto, in the case of surrender of a Receipt evidencing a number of American Depositary Shares representing other than a whole number of Shares, the Depositary shall cause ownership of the appropriate whole number of Shares to be Delivered in accordance with the terms hereof, and shall, at the discretion of the Depositary, either (i) issue and Deliver to the person surrendering such Receipt a new Receipt evidencing American Depositary Shares representing any remaining fractional Share, or (ii) sell or cause to be sold the fractional Shares represented by the Receipt surrendered and remit the proceeds of such sale (net of (a) applicable fees and charges of, and expenses incurred by, the Depositary and/or a division or Affiliate(s) of the Depositary and (b) taxes and/or governmental charges) to the person surrendering the Receipt.

 

At the request, risk and expense of any Holder so surrendering a Receipt, and for the account of such Holder, the Depositary shall direct the Custodian to forward (to the extent permitted by law) any cash or other property (other than securities) held in respect of, and any certificate or certificates and other proper documents of or relating to title to, the Deposited Securities represented by such Receipt to the Depositary for delivery at the Corporate Trust Office of the Depositary, and for further Delivery to such Holder.  Such direction shall be given by letter or, at the request, risk and expense of such Holder, by cable, telex or facsimile transmission. Upon receipt by the Depositary of such direction, the Depositary may make delivery to such person or persons entitled thereto at the Corporate Trust Office of the Depositary of any dividends or cash distributions with respect to the Deposited Securities represented by such American Depositary Shares, or of any proceeds of sale of any dividends, distributions or rights, which may at the time be held by the Depositary.

 

SECTION 2.7  Limitations on Execution and Delivery, Transfer, etc. of Receipts; Suspension of Delivery, Transfer, etc..

 

(a)           Additional Requirements.  As a condition precedent to the execution and Delivery, registration, registration of transfer, split-up, subdivision, combination or surrender of any Receipt, the Delivery of any distribution thereon (whether in cash or shares) or withdrawal of any Deposited Securities, the Depositary or the Custodian may require (i) payment from the depositor of Shares or presenter of the Receipt of a sum sufficient to reimburse it for any tax or other governmental charge and any stock transfer or registration fee with respect thereto (including any such tax or charge and fee with respect to Shares being deposited or withdrawn) and payment of any applicable fees and charges of the Depositary as provided in Section 5.9 hereof and Article (9) of the Receipt hereto, (ii) the production of proof satisfactory to it as to the identity and genuineness of any signature or any other matter contemplated by Section 3.1 hereof and (iii) compliance with (A) any laws or governmental regulations relating to the execution and Delivery of Receipts or American Depositary Shares or to the withdrawal or Delivery of Deposited Securities and (B) such reasonable regulations and procedures as the Depositary may establish consistent with the provisions of this Deposit Agreement and applicable law.

 

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(b)           Additional Limitations.  The issuance of ADSs against deposits of Shares generally or against deposits of particular Shares may be suspended, or the issuance of ADSs against the deposit of particular Shares may be withheld, or the registration of transfer of Receipts in particular instances may be refused, or the registration of transfers of Receipts generally may be suspended, during any period when the transfer books of the Depositary are closed or if any such action is deemed necessary or advisable by the Depositary or the Company, in good faith, at any time or from time to time because of any requirement of law, any government or governmental body or commission or any securities exchange on which the Receipts or Shares are listed, or under any provision of this Deposit Agreement or provisions of, or governing, the Deposited Securities, or any meeting of shareholders of the Company or for any other reason, subject, in all cases, to Section 7.10 hereof.

 

(c)           The Depositary shall not issue ADSs prior to the receipt of Shares or deliver Shares prior to the receipt and cancellation of ADSs.

 

SECTION 2.8  Lost Receipts, etc.  To the extent the Depositary has issued Receipts in physical certificated form, in case any Receipt shall be mutilated, destroyed, lost or stolen, unless the Depositary has notice that such ADR has been acquired by a bona fide purchaser, subject to Section 5.9 hereof, the Depositary shall execute and Deliver a new Receipt (which, in the discretion of the Depositary may be issued through any book-entry system, including, without limitation, DRS/Profile, unless specifically requested otherwise) in exchange and substitution for such mutilated Receipt upon cancellation thereof, or in lieu of and in substitution for such destroyed, lost or stolen Receipt.  Before the Depositary shall execute and Deliver a new Receipt in substitution for a destroyed, lost or stolen Receipt, the Holder thereof shall have (a) filed with the Depositary (i) a request for such execution and Delivery before the Depositary has notice that the Receipt has been acquired by a bona fide purchaser and (ii) a sufficient indemnity bond in form and amount acceptable to the Depositary and (b) satisfied any other reasonable requirements imposed by the Depositary.

 

SECTION 2.9  Cancellation and Destruction of Surrendered Receipts; Maintenance of Records.  All Receipts surrendered to the Depositary shall be cancelled by the Depositary. The Depositary is authorized to destroy Receipts so cancelled in accordance with its customary practices.  Cancelled Receipts shall not be entitled to any benefits under this Deposit Agreement or be valid or obligatory for any purpose.

 

SECTION 2.10   Maintenance of Records     .  The Depositary agrees to maintain records of all Receipts surrendered and Deposited Securities withdrawn under Section 2.6, substitute Receipts Delivered under Section 2.8 and cancelled or destroyed Receipts under Section 2.9, in keeping with the procedures ordinarily followed by stock transfer agents located in the United States.

 

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ARTICLE III.

 

CERTAIN OBLIGATIONS OF HOLDERS
 AND BENEFICIAL OWNERS OF RECEIPTS

 

SECTION 3.1  Proofs, Certificates and Other Information.  Any person presenting Shares for deposit shall provide, any Holder and any Beneficial Owner may be required to provide, and every Holder and Beneficial Owner agrees, from time to time to provide to the Depositary or the Custodian such proof of citizenship or residence, taxpayer status, payment of all applicable taxes or other governmental charges, exchange control approval, legal or  beneficial ownership of ADSs and Deposited Securities, compliance with applicable laws and the terms of this Deposit Agreement and the provisions of, or governing, the Deposited Securities or other information, to execute such certifications and to make such representations and warranties and to provide such other information and documentation as the Depositary may deem necessary or proper or as the Company may reasonably require by written request to the Depositary consistent with its obligations hereunder. The Depositary and the Registrar, as applicable, may withhold the execution or Delivery or registration of transfer of any Receipt or the distribution or sale of any dividend or other distribution of rights or of the proceeds thereof, or to the extent not limited by the terms of Section 7.11 hereof, the Delivery of any Deposited Securities, until such proof or other information is filed or such certifications are executed, or such representations and warranties are made, or such other documentation or information provided, in each case to the Depositary’s and the Company’s satisfaction. The Depositary shall from time to time on the written request of the Company advise the Company of the availability of any such proofs, certificates or other information and shall, at the Company’s sole expense, provide or otherwise make available copies thereof to the Company upon written request therefor by the Company, unless such disclosure is prohibited by law.  Each Holder and Beneficial Owner agrees to provide, any information requested by the Company or the Depositary pursuant to this Section 3.1.  Nothing herein shall obligate the Depositary to (i) obtain any information for the Company if not provided by the Holders or Beneficial Owners or (ii) verify or vouch for the accuracy of the information so provided by the Holders or Beneficial Owners.

 

Every Holder and Beneficial Owner agrees to indemnify the Depositary, the Company, the Custodian, the Agents and each of their respective directors, officers, employees, agents and Affiliates against, and to hold each of them harmless from, any Losses which any of them may incur or which may be made against any of them as a result of or in connection with any inaccuracy in or omission from any such proof, certificate, representation, warranty, information or document furnished by or on behalf of such Holder and/or Beneficial Owner or as a result of any such failure to furnish any of the foregoing.

 

The obligations of Holders and Beneficial Owners under Section 3.1 shall survive any transfer of Receipts, any surrender of Receipts or withdrawal of Deposited Securities or the termination of the Deposit Agreement.

 

SECTION 3.2  Liability for Taxes and Other Charges.  If any present or future tax or other governmental charge shall become payable by the Depositary or the Custodian with respect to any ADR or any Deposited Securities or American Depositary Shares, such tax or other governmental charge shall be payable by the Holders and Beneficial Owners to the Depositary and such Holders and Beneficial Owners shall be deemed liable therefor.  The Company, the Custodian and/or the Depositary may withhold or deduct from any distributions made in respect of Deposited Securities and may sell for the account of a Holder and/or Beneficial Owner any or all of the Deposited Securities and apply such distributions and sale proceeds in payment of such taxes (including applicable interest and penalties) and charges, with the Holder and the Beneficial Owner remaining fully liable for any deficiency.  In addition to any other remedies available to it, the Depositary and the Custodian may refuse the deposit of Shares, and the Depositary may refuse to issue ADSs, to Deliver ADRs, to register the transfer, split-up or combination of ADRs and (subject to Section 7.11 hereof) the withdrawal of Deposited Securities, until payment in full of such tax, charge, penalty or interest is received. The liability of Holders and Beneficial Owners under this Section 3.2  shall survive any transfer of Receipts, any surrender of Receipts and withdrawal of Deposited Securities or the termination of this Deposit Agreement.

 

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SECTION 3.3  Representations and Warranties on Deposit of Shares.  Each person depositing Shares under this Deposit Agreement shall be deemed thereby to represent and warrant that (i) such Shares and the certificates therefor are duly authorized, validly issued, fully paid, non-assessable and were legally obtained by such person, (ii) all preemptive (and similar) rights, if any, with respect to such Shares have been validly waived or exercised, (iii) the person making such deposit is duly authorized so to do, (iv) the Shares presented for deposit are free and clear of any lien, encumbrance, security interest, charge, mortgage or adverse claim and are not, and the American Depositary Shares issuable upon such deposit will not be, Restricted Securities, (v) the Shares presented for deposit have not been stripped of any rights or entitlements and (vi) the Shares are not subject to any lock-up agreement with the Company or other party, or the Shares are subject to a lock-up agreement but such lock-up agreement has terminated or the lock-up restrictions imposed thereunder have expired.  Such representations and warranties shall survive the deposit and withdrawal of Shares, the issuance and cancellation of American Depositary Shares in respect thereof and the transfer of such American Depositary Shares.  If any such representations or warranties are false in any way, the Company and the Depositary shall be authorized, at the cost and expense of the person depositing Shares, to take any and all actions necessary to correct the consequences thereof.

 

SECTION 3.4  Compliance with Information Requests.  Notwithstanding any other provision of the Deposit Agreement, the Articles of Association and applicable law, each Holder and Beneficial Owner agrees to (a) provide such information as the Company or the Depositary may request pursuant to  law (including, without limitation, relevant Cayman Islands law, any applicable law of the United States, the Memorandum and Articles of Association, any resolutions of the Company’s Board of Directors adopted pursuant to the Memorandum and Articles of Association, the requirements of any markets or exchanges upon which the Shares, ADSs or Receipts are listed or traded, or to any requirements of any electronic book-entry system by which the ADSs or Receipts may be transferred), (b) be bound by and subject to applicable provisions of the laws of the Cayman Islands, the Memorandum and Articles of Association and the requirements of any markets or exchanges upon which the ADSs, Receipts or Shares are listed or traded, or pursuant to any requirements of any electronic book-entry system by which the ADSs, Receipts or Shares may be transferred, to the same extent as if such Holder and Beneficial Owner held Shares directly, in each case irrespective of whether or not they are Holders or Beneficial Owners at the time such request is made and, without limiting the generality of the foregoing, (c) comply with all applicable provisions of Cayman Islands law, the rules and requirements of any stock exchange on which the Shares are, or will be registered, traded or listed and the Articles of Association regarding any such Holder or Beneficial Owner’s interest in Shares (including the aggregate of ADSs and Shares held by each such Holder or Beneficial Owner) and/or the disclosure of interests therein, whether or not the same may be enforceable against such Holder or Beneficial Owner. The Depositary agrees to use its reasonable efforts to forward upon the request of the Company, and at the Company’s expense, any such request from the Company to the Holders and to forward to the Company any such responses to such requests received by the Depositary.

 

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ARTICLE IV.

 

THE DEPOSITED SECURITIES

 

SECTION 4.1  Cash Distributions.  Whenever the Depositary receives confirmation from the Custodian of receipt of any cash dividend or other cash distribution on any Deposited Securities, or receives proceeds from the sale of any Shares, rights, securities or other entitlements under the terms hereof, the Depositary will, if at the time of receipt thereof any amounts received in a Foreign Currency can in the judgment of the Depositary (pursuant to Section 4.6 hereof) be converted on a practicable basis into Dollars transferable to the United States, promptly convert or cause to be converted such cash dividend, distribution or proceeds into Dollars (on the terms described in Section 4.6 hereof) and will distribute promptly the amount thus received (net of (a) the applicable fees and charges of, and expenses incurred by, the Depositary and/or a division or Affiliate(s) of the Depositary and (b) taxes and/or governmental charges) to the Holders of record as of the ADS Record Date in proportion to the number of American Depositary Shares held by such Holders respectively as of the ADS Record Date.  The Depositary shall distribute only such amount, however, as can be distributed without attributing to any Holder a fraction of one cent.  Any such fractional amounts shall be rounded down to the nearest whole cent and so distributed to Holders entitled thereto.  Holders and Beneficial Owners understand that in converting Foreign Currency, amounts received on conversion are calculated at a rate which exceeds the number of decimal places used by the Depositary to report distribution rates.  The excess amount may be retained by the Depositary as an additional cost of conversion, irrespective of any other fees and expenses payable or owing hereunder and shall not be subject to escheatment.  If the Company, the Custodian or the Depositary is required to withhold and does withhold from any cash dividend or other cash distribution in respect of any Deposited Securities an amount on account of taxes, duties or other governmental charges, the amount distributed to Holders of the ADSs representing such Deposited Securities shall be reduced accordingly. Such withheld amounts shall be forwarded by the Company, the Custodian or the Depositary to the relevant governmental authority.  Evidence of payment thereof by the Company shall be forwarded by the Company to the Depositary upon request.  The Depositary shall forward to the Company or its agent such information from its records as the Company may reasonably request to enable the Company or its agent to file with governmental agencies such reports as are necessary to obtain benefits under the applicable tax treaties for the Holders and Beneficial Owners of Receipts.

 

SECTION 4.2  Distribution in Shares.  If any distribution upon any Deposited Securities consists of a dividend in, or free distribution of, Shares, the Company shall cause such Shares to be deposited with the Custodian and registered, as the case may be, in the name of the Depositary, the Custodian or any of their nominees.  Upon receipt of confirmation of such deposit from the Custodian, the Depositary shall establish the ADS Record Date upon the terms described in Section 4.7 hereof and shall, subject to Section 5.9 hereof, either (i) distribute to the Holders as of the ADS Record Date in proportion to the number of ADSs held as of the ADS Record Date, additional ADSs, which represent in the aggregate the number of Shares received as such dividend, or free distribution, subject to the other terms of this Deposit Agreement (including, without limitation, (a) the applicable fees and charges of, and expenses incurred by, the Depositary and (b) taxes and/or governmental charges), or (ii) if additional ADSs are not so distributed, each ADS issued and outstanding after the ADS Record Date shall, to the extent permissible by law, thenceforth also represent rights and interests in the additional Shares distributed upon the Deposited Securities  represented thereby (net of (a) the applicable fees and charges of, and expenses incurred by, the Depositary and (b) taxes and/or governmental charges).  In lieu of Delivering fractional ADSs, the Depositary shall sell the number of Shares represented by the aggregate of such fractions and distribute the proceeds upon the terms described in Section 4.1 hereof. The Depositary may withhold any such distribution of Receipts if it has not received satisfactory assurances from the Company (including an Opinion of Counsel furnished at the expense of the Company) that such distribution does not require registration under the Securities Act or is exempt from registration under the provisions of the Securities Act.  To the extent such distribution may be withheld, the Depositary may dispose of all or a portion of such distribution in such amounts and in such manner, including by public or private sale, as the Depositary deems necessary and practicable, and the Depositary shall distribute the net proceeds of any such sale (after deduction of applicable taxes and/or governmental charges and fees and charges of, and expenses incurred by, the Depositary and/or a division or Affiliate(s) of the Depositary) to Holders entitled thereto upon the terms described in Section 4.1 hereof.

 

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SECTION 4.3  Elective Distributions in Cash or Shares.  Whenever the Company intends to distribute a dividend payable at the election of the holders of Shares in cash or in additional Shares, the Company shall give notice thereof to the Depositary at least 30 days prior to the proposed distribution stating whether or not it wishes such elective distribution to be made available to Holders of ADSs.  Upon receipt of notice indicating that the Company wishes such elective distribution to be made available to Holders of ADSs, the Depositary shall consult with the Company to determine, and the Company shall assist the Depositary in its determination, whether it is lawful and reasonably practicable to make such elective distribution available to the Holders of ADSs.  The Depositary shall make such elective distribution available to Holders only if (i) the Company shall have timely requested that the elective distribution is available to Holders of ADRs, (ii) the Depositary shall have received satisfactory documentation within the terms of Section 5.7 hereof (including, without limitation, any legal opinions of counsel in any applicable jurisdiction that the Depositary in its reasonable discretion may request, at the expense of the Company) and (iii) the Depositary shall have determined that such distribution is lawful and reasonably practicable.  If the above conditions are not satisfied, the Depositary shall, to the extent permitted by law, distribute to the Holders, on the basis of the same determination as is made in the local market in respect of the Shares for which no election is made, either cash upon the terms described in Section 4.1 hereof or additional ADSs representing such additional Shares upon the terms described in Section 4.2 hereof.  If the above conditions are satisfied, the Depositary shall establish an ADS Record Date (on the terms described in Section 4.7 hereof) and establish procedures to enable Holders to elect the receipt of the proposed dividend in cash or in additional ADSs.  The Company shall assist the Depositary in establishing such procedures to the extent necessary.  Subject to Section 5.9 hereof, if a Holder elects to receive the proposed dividend in cash, the dividend shall be distributed upon the terms described in Section 4.1 hereof or in ADSs, the dividend shall be distributed upon the terms described in Section 4.2 hereof.  Nothing herein shall obligate the Depositary to make available to Holders a method to receive the elective dividend in Shares (rather than ADSs).  There can be no assurance that Holders generally, or any Holder in particular, will be given the opportunity to receive elective distributions on the same terms and conditions as the holders of Shares.

 

SECTION 4.4  Distribution of Rights to Purchase Shares.

 

(a)           Distribution to ADS Holders.  Whenever the Company intends to distribute to the holders of the Deposited Securities rights to subscribe for additional Shares, the Company shall give notice thereof to the Depositary at least 60 days prior to the proposed distribution stating whether or not it wishes such rights to be made available to Holders of ADSs.  Upon timely receipt of a notice indicating that the Company wishes such rights to be made available to Holders of ADSs, the Depositary shall consult with the Company to determine, and the Company shall determine, whether it is lawful and reasonably practicable to make such rights available to the Holders.  The Depositary shall make such rights available to Holders only if (i) the Company shall have timely requested that such rights be made available to Holders, (ii) the Depositary shall have received satisfactory documentation within the terms of Section 5.7 hereof and (iii) the Depositary shall have determined that such distribution of rights is lawful and reasonably practicable.  In the event any of the conditions set forth above are not satisfied, the Depositary shall proceed with the sale of the rights as contemplated in Section 4.4(b) below or, if timing or market conditions may not permit, do nothing thereby allowing such rights to lapse.  In the event all conditions set forth above are satisfied, the Depositary shall establish an ADS Record Date (upon the terms described in Section 4.7 hereof) and establish procedures to distribute such rights (by means of warrants or otherwise) and to enable the Holders to exercise the rights (upon payment of applicable fees and charges of, and expenses incurred by, the Depositary and taxes and/or other governmental charges).  Nothing herein shall obligate the Depositary to make available to the Holders a method to exercise such rights to subscribe for Shares (rather than ADSs).

 

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

 

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

 

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

 

Notwithstanding anything to the contrary in this Section 4.4, if registration (under the Securities Act or any other applicable law) of the rights or the securities to which any rights  relate may be required in order for the Company to offer such rights or such securities to Holders and to sell the securities represented by such rights, the Depositary will not distribute such rights to the Holders (i) unless and until a registration statement under the Securities Act covering such offering is in effect or (ii) unless the Company furnishes at its expense the Depositary with opinion(s) of counsel for the Company in the United States and counsel to the Company in any other applicable country in which rights would be distributed, in each case satisfactory to the Depositary, to the effect that the offering and sale of such securities to Holders and Beneficial Owners are exempt from, or do not require registration under, the provisions of the Securities Act or any other applicable laws.  In the event that the Company, the Depositary or the Custodian shall be required to withhold and does withhold from any distribution of property (including rights) an amount on account of taxes and/or other governmental charges, the amount distributed to the Holders shall be reduced accordingly.  In the event that the Depositary determines that any distribution in property (including Shares and rights to subscribe therefor) is subject to any tax or other governmental charges which the Depositary is obligated to withhold, the Depositary may dispose of all or a portion of such property (including Shares and rights to subscribe therefor) in such amounts and in such manner, including by public or private sale, as the Depositary deems necessary and practicable to pay any such taxes and/or charges.

 

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There can be no assurance that Holders generally, or any Holder in particular, will be given the opportunity to exercise rights on the same terms and conditions as the holders of Shares or be able to exercise such rights.  Nothing herein shall obligate the Company to file any registration statement in respect of any rights or Shares or other securities to be acquired upon the exercise of such rights or otherwise to register or qualify the offer or sale of such rights or securities under the applicable law of any other jurisdiction for any purpose.

 

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

 

(a)           Whenever the Company intends to distribute to the holders of Deposited Securities property other than cash, Shares or rights to purchase additional Shares, the Company shall give notice thereof to the Depositary at least 30 days prior to the proposed distribution and shall indicate whether or not it wishes such distribution to be made to Holders of ADSs.  Upon receipt of a notice indicating that the Company wishes such distribution be made to Holders of ADSs, the Depositary shall determine whether such distribution to Holders is lawful and practicable.  The Depositary shall not make such distribution unless (i) the Company shall have timely requested the Depositary to make such distribution to Holders, (ii) the Depositary shall have received satisfactory documentation within the terms of Section 5.7 hereof and (iii) the Depositary shall have determined that such distribution is lawful and reasonably practicable.

 

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

 

(c)           If (i) the Company does not request the Depositary to make such distribution to Holders or requests the Depositary not to make such distribution to Holders, (ii) the Depositary does not receive satisfactory documentation within the terms of Section 5.7 hereof or (iii) the Depositary determines that all or a portion of such distribution is not reasonably practicable or feasible, the Depositary shall endeavor to sell or cause such property to be sold in a public or private sale, at such place or places and upon such terms as it may deem proper and shall distribute the net proceeds, if any, of such sale received by the Depositary (net of applicable fees and charges of, and expenses incurred by, the Depositary and/or a division or Affiliate(s) of the Depositary and taxes and/or governmental charges) to the Holders as of the ADS Record Date upon the terms of Section 4.1 hereof.  If the Depositary is unable to sell such property, the Depositary may dispose of such property in any way it deems reasonably practicable under the circumstances for nominal or no consideration and Holders and Beneficial Owners shall have no rights thereto or arising therefrom.

 

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SECTION 4.6  Conversion of Foreign Currency.  Whenever the Depositary or the Custodian shall receive Foreign Currency, by way of dividends or other distributions or the net proceeds from the sale of securities, property or rights, and in the judgment of the Depositary such Foreign Currency can at such time be converted on a practicable basis (by sale or in any other manner that it may determine in accordance with applicable law) into Dollars transferable to the United States and distributable to the Holders entitled thereto, the Depositary shall convert or cause to be converted, by sale or in any other manner that it may determine, such Foreign Currency into Dollars, and shall distribute such Dollars (net of any fees, expenses, taxes and/or other governmental charges incurred in the process of such conversion) in accordance with the terms of the applicable sections of this Deposit Agreement.  If the Depositary shall have distributed warrants or other instruments that entitle the holders thereof to such Dollars, the Depositary shall distribute such Dollars to the holders of such warrants and/or instruments upon surrender thereof for cancellation, in either case without liability for interest thereon. Such distribution may be made upon an averaged or other practicable basis without regard to any distinctions among Holders on account of exchange restrictions, the date of delivery of any Receipt or otherwise.

 

In converting Foreign Currency, amounts received on conversion may be calculated at a rate which exceeds the number of decimal places used by the Depositary to report distribution rates (which in any case will not be less than two decimal places).  Any excess amount may be retained by the Depositary as an additional cost of conversion, irrespective of any other fees and expenses payable or owing hereunder and shall not be subject to escheatment.

 

If such conversion or distribution can be effected only with the approval or license of any government or agency thereof, the Depositary may file such application for approval or license, if any, as it may deem necessary, practicable and at nominal cost and expense.  Nothing herein shall obligate the Depositary to file or cause to be filed, or to seek effectiveness of any such application or license.

 

If at any time the Depositary shall determine that in its judgment the conversion of any Foreign Currency and the transfer and distribution of proceeds of such conversion received by the Depositary is not practical or lawful, or if any approval or license of any governmental authority or agency thereof that is required for such conversion, transfer and distribution is denied, or not obtainable at a reasonable cost, within a reasonable period or otherwise sought, the Depositary shall, in its sole discretion but subject to applicable laws and regulations, either (i) distribute the Foreign Currency (or an appropriate document evidencing the right to receive such Foreign Currency) received by the Depositary to the Holders entitled to receive  such Foreign Currency or (ii) hold such Foreign Currency uninvested and without liability for interest thereon for the respective accounts of the Holders entitled to receive the same.

 

Holders and Beneficial Owners are directed to refer to Section 7.9 hereof for certain disclosure related to conversion of Foreign Currency.

 

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SECTION 4.7  Fixing of Record Date.  Whenever necessary in connection with any distribution (whether in cash, Shares, rights, or other distribution), or whenever for any reason the Depositary causes a change in the number of Shares that are represented by each American Depositary Share, or whenever the Depositary shall receive notice of any meeting of or solicitation of holders of Shares or other Deposited Securities, or whenever the Depositary shall find it necessary or convenient, the Depositary shall fix a record date (the “ADS Record Date”), as close as practicable to the record date fixed by the Company with respect to the Shares (if applicable), for the determination of the Holders who shall be entitled to receive such distribution, to give instructions for the exercise of voting rights at any such meeting, to give or withhold such consent, to receive such notice or solicitation or to otherwise take action or to exercise the rights of Holders with respect to such changed number of Shares represented by each American Depositary Share or for any other reason.  Subject to applicable law and the provisions of Sections 4.1 through 4.6 hereof and to the other terms and conditions of this Deposit Agreement, only the Holders of record at the close of business in New York on such ADS Record Date shall be entitled to receive such distribution, to give such voting instructions, to receive such notice or solicitation, or otherwise take action.

 

SECTION 4.8  Voting of Deposited Securities.  Subject to the next sentence, as soon as practicable after receipt of notice of any meeting at which the holders of Deposited Securities are entitled to vote, or of solicitation of consents or proxies from holders of Deposited Securities, the Depositary shall fix the ADS Record Date in respect of such meeting or such solicitation of consents or proxies. The Depositary shall, if requested by the Company in writing in a timely manner (the Depositary having no obligation to take any further action if the request shall not have been received by the Depositary at least 30 Business Days prior to the date of such vote or meeting) and at the Company’s expense, and provided no U.S. legal prohibitions exist, mail by regular, ordinary mail delivery (or by electronic mail or as otherwise may be agreed between the Company and the Depositary in writing from time to time) or otherwise distribute as soon as practicable after receipt thereof to Holders as of the ADS Record Date: (a) such notice of meeting or solicitation of consent or proxy; (b) a statement that the Holders at the close of business on the ADS Record Date will be entitled, subject to any applicable law, the provisions of this Deposit Agreement, the Company’s Memorandum and Articles of Association and the provisions of or governing the Deposited Securities (which provisions, if any, shall be summarized in pertinent part by the Company), to instruct the Depositary as to the exercise of the voting rights, if any, pertaining to the Deposited Securities represented by such Holder’s American Depositary Shares; and (c) a brief statement as to the manner in which such voting instructions may be given to the Depositary, or in which instructions may be deemed to have been given in accordance with this Section 4.8, including an express indication that instructions may be given (or be deemed to have been given in accordance with the immediately following paragraph of this section if no instruction is received) to the Depositary to give a discretionary proxy to a person or persons designated by the Company.  Voting instructions may be given only in respect of a number of American Depositary Shares representing an integral number of Deposited Securities.  Upon the timely receipt of voting instructions of a Holder on the ADS Record  Date in the manner specified by the Depositary, the Depositary shall endeavor, insofar as practicable and permitted under applicable law, the provisions of this Deposit Agreement, the Company’s Memorandum and Articles of Association and the provisions of or governing the Deposited Securities, to vote or cause the Custodian to vote the Deposited Securities (in person or by proxy) represented by American Depositary Shares evidenced by such Receipt in accordance with such voting instructions.

 

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In the event that (i) the Depositary timely receives voting instructions from a Holder which fail to specify the manner in which the Depositary is to vote the Deposited Securities represented by such Holder’s ADSs or (ii) no timely instructions are received by the Depositary from a Holder with respect to any of the Deposited Securities represented by the ADSs held by such Holder on the ADS Record Date, the Depositary shall (unless otherwise specified in the notice distributed to Holders) deem such Holder to have instructed the Depositary to give a discretionary proxy to a person designated by the Company with respect to such Deposited Securities and the Depositary shall give a discretionary proxy to a person designated by the Company to vote such Deposited Securities, provided, however, that no such instruction shall be deemed to have been given and no such discretionary proxy shall be given with respect to any matter as to which the Company informs the Depositary (and the Company agrees to provide such information as promptly as practicable in writing, if applicable) that (x) the Company does not wish to give such proxy, (y) the Company is aware or should reasonably be aware that substantial opposition exists from Holders against the outcome for which the person designated by the Company would otherwise vote or (z) the outcome for which the person designated by the Company would otherwise vote would materially and adversely affect the rights of holders of Deposited Securities, provided, further, that the Company will have no liability to any Holder or Beneficial Owner resulting from such notification.

 

In the event that voting on any resolution or matter is conducted on a show of hands basis in accordance with the Memorandum and Articles of Association, the Depositary will refrain from voting and the voting instructions (or the deemed voting instructions, as set out above) received by the Depositary from Holders shall lapse.  The Depositary will have no obligation to demand voting on a poll basis with respect to any resolution and shall have no liability to any Holder or Beneficial Owner for not having demanded voting on a poll basis.

 

Neither the Depositary nor the Custodian shall, under any circumstances exercise any discretion as to voting, and neither the Depositary nor the Custodian shall vote, attempt to exercise the right to vote, or in any way make use of for purposes of establishing a quorum or otherwise, the Deposited Securities represented by ADSs except pursuant to and in accordance with such written instructions from Holders, including the deemed instruction to the Depositary to give a discretionary proxy to a person designated by the Company.  Deposited Securities represented by ADSs for which (i) no timely voting instructions are received by the Depositary from the Holder, or (ii) timely voting instructions are received by the Depositary from the Holder but such voting instructions fail to specify the manner in which the Depositary is to vote the Deposited Securities represented by such Holder’s ADSs, shall be voted in the manner provided in this Section 4.8.  Notwithstanding anything else contained herein, and subject to applicable law, regulation and the Memorandum and Articles of Association, the Depositary shall, if so requested in writing by the Company, represent all Deposited Securities (whether or not voting instructions have been received in respect of such Deposited Securities from Holders as of the ADS Record Date) for the purpose of establishing quorum at a meeting of shareholders.

 

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

 

Notwithstanding the above, save for applicable provisions of the law of the Cayman Islands, and in accordance with the terms of Section 5.3 hereof, the Depositary shall not be liable for any failure to carry out any instructions to vote any of the Deposited Securities or the manner in which such vote is cast or the effect of such vote.

 

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SECTION 4.9  Changes Affecting Deposited Securities.  Upon any change in par value, split-up, subdivision, cancellation, consolidation or any other reclassification of Deposited Securities or upon any recapitalization, reorganization, amalgamation, merger or consolidation or sale of assets affecting the Company or to which it is otherwise a party, any securities which shall be received by the Depositary or the Custodian in exchange for, or in conversion of or replacement or otherwise in respect of, such Deposited Securities shall, to the extent permitted by law, be treated as new Deposited Securities under this Deposit Agreement and the Receipts shall, subject to the provisions of this Deposit Agreement and applicable law, evidence American Depositary Shares representing the right to receive such additional securities.  Alternatively, the Depositary may, with the Company’s approval, and shall, if the Company shall so request, subject to the terms of this Deposit Agreement and receipt of an Opinion of Counsel furnished at the Company’s expense satisfactory to the Depositary (stating that such distributions are not in violation of any applicable laws or regulations), execute and deliver additional Receipts, as in the case of a stock dividend on the Shares, or call for the surrender of outstanding Receipts to be exchanged for new Receipts. In either case, as well as in the event of newly deposited Shares, necessary modifications to the form of Receipt contained in Exhibit A and Exhibit B hereto, specifically describing such new Deposited Securities and/or corporate change, shall also be made. The Company agrees that it will, jointly with the Depositary, amend the Registration Statement on Form F-6 as filed with the Commission to permit the issuance of such new form of Receipt. Notwithstanding the foregoing, in the event that any security so received may not be lawfully distributed to some or all Holders, the Depositary may, with the Company’s approval, and shall, if the Company requests, subject to receipt of an Opinion of Counsel (furnished at the Company’s expense) satisfactory to the Depositary that such action is not in violation of any applicable laws or regulations, sell such securities at public or private sale, at such place or places and upon such terms as it may deem proper and may allocate the net proceeds of such sales (net of fees and charges of, and expenses incurred by, the Depositary and/or a division or Affiliate(s) of the Depositary and taxes and/or governmental charges) for the account of the Holders otherwise entitled to such securities upon an averaged or other practicable basis without regard to any distinctions among such Holders and distribute the net proceeds so allocated to the extent practicable as in the case of a distribution received in cash pursuant to Section 4.1 hereof. The Depositary shall not be responsible for (i) any failure to determine that it may be lawful or feasible to make such securities available to Holders in general or to any Holder in particular, (ii) any foreign exchange exposure or loss incurred in connection with such sale or (iii) any liability to the purchaser of such securities.

 

SECTION 4.10  Available Information.  The Company is subject to the periodic reporting requirements of the Exchange Act applicable to foreign private issuers (as defined in Rule 405 of the Securities Act) and accordingly files certain information with the Commission.  These reports and documents can be inspected and copied at the Commission’s  website at www.sec.gov or at the public reference facilities maintained by the Commission located at 100 F Street, N.E., Washington D.C. 20549, U.S.A.

 

SECTION 4.11  Reports.  The Depositary shall make available during normal business hours on any Business Day for inspection by Holders at its Corporate Trust Office any reports and communications, including any proxy soliciting materials, received from the Company which are both received by the Depositary, the Custodian, or the nominee of either of them as the holder of the Deposited Securities and made generally available to the holders of such Deposited Securities by the Company.  The Company agrees to provide to the Depositary, at the Company’s expense, all such documents that it provides to the Custodian.  Unless otherwise agreed in writing by the Company and the Depositary, the Depositary shall, at the expense of the Company and in accordance with Section 5.6 hereof, also mail to Holders by regular, ordinary mail delivery or by electronic transmission (if agreed by the Company and the Depositary) copies of notices and reports when furnished by the Company pursuant to Section 5.6 hereof.

 

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SECTION 4.12  List of Holders.  Promptly upon written request by the Company, the Depositary shall, at the expense of the Company, furnish to it a list, as of a recent date, of the names, addresses and holdings of American Depositary Shares by all persons in whose names Receipts are registered on the books of the Depositary.

 

SECTION 4.13  Taxation; Withholding.  The Depositary will, and will instruct the Custodian to, forward to the Company or its agents such information from its records as the Company may request to enable the Company or its agents to file necessary tax reports with governmental authorities or agencies. The Depositary, the Custodian or the Company and its agents may, but shall not be obligated to, file such reports as are necessary to reduce or eliminate applicable taxes on dividends and on other distributions in respect of Deposited Securities under applicable tax treaties or laws for the Holders and Beneficial Owners. Holders and Beneficial Owners of American Depositary Shares may be required from time to time, and in a timely manner, to provide and/or file such proof of taxpayer status, residence and beneficial ownership (as applicable), to execute such certificates and to make such representations and warranties, or to provide any other information or documents, as the Depositary or the Custodian may deem necessary or proper to fulfill the Depositary’s or the Custodian’s obligations under applicable law. The Holders and Beneficial Owners shall indemnify the Depositary, the Company, the Custodian, the Agents and their respective directors, officers, employees, agents and Affiliates against, and hold each of them harmless from, any claims by any governmental authority with respect to taxes, additions to tax, penalties or interest arising out of any refund of taxes, reduced rate of withholding at source or other tax benefit obtained by the Beneficial Owner or Holder or out of or in connection with any inaccuracy in or omission from any such proof, certificate, representation, warranty, information or document furnished by or on behalf of such Holder or Beneficial Owner. The obligations of Holders and Beneficial Owners under this Section 4.13 shall survive any transfer of Receipts, any surrender of Receipts and withdrawal of Deposited Securities or the termination of this Deposit Agreement.

 

The Company shall remit to the appropriate governmental authority or agency any amounts required to be withheld by the Company and owing to such governmental authority or agency.  Upon any such withholding, the Company shall remit to the Depositary information, in a form reasonably satisfactory to the Depositary, about such taxes and/or governmental charges withheld or paid, and, if so requested, the tax receipt (or other proof of payment to the applicable governmental authority) therefor.  The Depositary shall, to the extent required  by U.S. law, report to Holders (i) any taxes withheld by it; (ii) any taxes withheld by the Custodian, subject to information being provided to the Depositary by the Custodian and (iii) any taxes withheld by the Company, subject to information being provided to the Depositary by the Company. The Depositary and the Custodian shall not be required to provide the Holders with any evidence of the remittance by the Company (or its agents) of any taxes withheld, or of the payment of taxes by the Company, except to the extent the evidence is provided by the Company to the Depositary.  None of the Depositary, the Custodian or the Company shall be liable for the failure by any Holder or Beneficial Owner to obtain the benefits of credits on the basis of non-U.S. tax paid against such Holder’s or Beneficial Owner’s income tax liability.

 

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In the event that the Depositary determines that any distribution in property (including Shares and rights to subscribe therefor) is subject to any tax or other governmental charge which the Depositary is obligated to withhold, the Depositary shall withhold the amount required to be withheld and may by public or private sale dispose of all or a portion of such property (including Shares and rights to subscribe therefor) in such amounts and in such manner as the Depositary deems necessary and practicable to pay such taxes and/or charges and the Depositary shall distribute the net proceeds of any such sale after deduction of such taxes and/or charges to the Holders entitled thereto in proportion to the number of American Depositary Shares held by them respectively.

 

The Depositary is under no obligation to provide the Holders and Beneficial Owners with any information about the tax status of the Company.  The Depositary shall not incur any liability for any tax consequences that may be incurred by Holders and Beneficial Owners on account of their ownership of the American Depositary Shares, including without limitation, tax consequences resulting from the Company (or any of its subsidiaries) being treated as a “Passive Foreign Investment Company” (as defined in the U.S. Internal Revenue Code of 1986, as amended and the regulations issued thereunder) or otherwise.

 

ARTICLE V.

 

THE DEPOSITARY, THE CUSTODIAN AND THE COMPANY

 

SECTION 5.1  Maintenance of Office and Transfer Books by the Registrar.  Until termination of this Deposit Agreement in accordance with its terms, the Depositary or if a Registrar for the Receipts shall have been appointed, the Registrar shall maintain in the Borough of Manhattan, the City of New York, an office and facilities for the execution and delivery, registration, registration of transfers, combination and split-up of Receipts, the surrender of Receipts and the Delivery and withdrawal of Deposited Securities in accordance with the provisions of this Deposit Agreement.

 

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

 

The Depositary or the Registrar, as applicable, may close the transfer books with respect to the Receipts, at any time and from time to time, when deemed necessary or advisable by it in  connection with the performance of its duties hereunder, or at the reasonable written request of the Company.

 

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

 

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If any Receipts or the American Depositary Shares evidenced thereby are listed on one or more securities exchanges, markets or automated quotation systems, (i) the Depositary shall be entitled to, and shall, take or refrain from taking such action(s) as it may deem necessary or appropriate to comply with the requirements of such securities exchange(s), market(s) or automated quotation system(s) applicable to it, notwithstanding any other provision of this Deposit Agreement; and (ii) upon the reasonable request of the Depositary, the Company shall provide the Depositary such information and assistance as may be reasonably necessary for the Depositary to comply with such requirements, to the extent that the Company may lawfully do so.

 

Each Registrar and co-registrar appointed under this Section 5.1 shall give notice in writing to the Depositary accepting such appointment and agreeing to be bound by the applicable terms of the Deposit Agreement.

 

SECTION 5.2  Exoneration.  None of the Depositary, the Custodian or the Company shall be obligated to do or perform any act which is inconsistent with the provisions of this Deposit Agreement or shall incur any liability to Holders, Beneficial Owners or any third parties (i) if the Depositary, the Custodian or the Company or their respective controlling persons or agents (including without limitation, the Agents) shall be prevented or forbidden from, or delayed in, doing or performing any act or thing required by the terms of this Deposit Agreement, by reason of any provision of any present or future law or regulation of the United States or any state thereof, the Cayman Islands or any other country, or of any other governmental authority or regulatory authority or stock exchange, or on account of the possible criminal or civil penalties or restraint, or by reason of any provision, present or future, of the Memorandum and Articles of Association or any provision of or governing any Deposited Securities, or by reason of any act of God or war or other circumstances beyond its control (including, without limitation, nationalization, expropriation, currency restrictions, work stoppage, strikes, civil unrest, revolutions, rebellions, explosions and computer failure), (ii) by reason of any exercise of, or failure to exercise, any discretion provided for in this Deposit Agreement or in the Memorandum and Articles of Association or provisions of or governing Deposited Securities, (iii) for any action or inaction of the Depositary, the Custodian or the Company or their respective controlling persons or agents (including without limitation, the Agents) in reliance upon the advice of or information from legal counsel, accountants, any person presenting Shares for deposit, any Holder, any Beneficial Owner or authorized representative thereof, or any other person believed by it in good faith to be competent to give such advice or information, (iv) for the inability by a Holder or Beneficial Owner to benefit from any distribution, offering, right or other benefit which is made available to holders of Deposited Securities but is not, under the terms of this Deposit Agreement, made available to Holders of American Depositary Shares or (v) for any special, consequential, indirect or punitive damages for any breach of the terms of this Deposit Agreement or otherwise.

 

The Depositary, its controlling persons, its agents (including without limitation, the Agents), the Custodian and the Company, its controlling persons and its agents may rely and shall be protected in acting upon any written notice, request, opinion or other document believed by it to be genuine and to have been signed or presented by the proper party or parties.

 

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

 

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SECTION 5.3  Standard of Care.  The Company and the Depositary and their respective directors, officers, Affiliates, employees and agents (including without limitation, the Agents) assume no obligation and shall not be subject to any liability under this Deposit Agreement or any Receipts to any Holder(s) or Beneficial Owner(s) or other persons, except in accordance with Section 5.8 hereof, provided, that the Company and the Depositary and their respective directors, officers, Affiliates, employees and agents (including without limitation, the Agents) agree to perform their respective obligations specifically set forth in this Deposit Agreement or the applicable ADRs without gross negligence or willful misconduct.

 

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

 

The Depositary and its directors, officers, affiliates, employees and agents (including without limitation, the Agents) shall not be liable for any failure to carry out any instructions to vote any of the Deposited Securities, or for the manner in which any vote is cast or the effects of any vote.  The Depositary shall not incur any liability for any failure to determine that any distribution or action may be lawful or reasonably practicable, for the content of any information submitted to it by the Company for distribution to the Holders or for any inaccuracy of any translation thereof, for any investment risk associated with acquiring an interest in the Deposited Securities, for the validity or worth of the Deposited Securities or for any tax consequences that may result from the ownership of ADSs, Shares or Deposited Securities, for the credit-worthiness of any third party, for allowing any rights to lapse upon the terms of this Deposit Agreement or for the failure or timeliness of any notice from the Company, or for any action or non action by it in reliance upon the opinion, advice of or information from legal counsel, accountants, any person presenting Shares for deposit, any Holder or any other person believed by it in good faith to be competent to give such advice or information.  The Depositary and its agents (including without limitation, the Agents) shall not be liable for any acts or omissions made by a successor depositary whether in connection with a previous act or omission of the Depositary or in connection with any matter arising wholly after the removal or resignation of the Depositary, provided that in connection with the issue out of which such potential liability arises the Depositary performed its obligations without gross negligence or willful misconduct while it acted as Depositary.

 

SECTION 5.4  Resignation and Removal of the Depositary; Appointment of Successor Depositary.  The Depositary may at any time resign as Depositary hereunder by  written notice of resignation delivered to the Company, such resignation to be effective on the earlier of (i) the 90th day after delivery thereof to the Company (whereupon the Depositary shall, in the event no successor depositary has been appointed by the Company, be entitled to take the actions contemplated in Section 6.2 hereof) and (ii) the appointment by the Company of a successor depositary and its acceptance of such appointment as hereinafter provided, save that, any amounts, fees, costs or expenses owed to the Depositary hereunder or in accordance with any other agreements otherwise agreed in writing between the Company and the Depositary from time to time shall be paid to the Depositary prior to such resignation.

 

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The Company shall use reasonable efforts to appoint such successor depositary, and give notice to the Depositary of such appointment, not more than 90 days after delivery by the Depositary of written notice of resignation as provided in this Section 5.4.  In the event that notice of the appointment of a successor depositary is not provided by the Company in accordance with the preceding sentence, the Depositary shall be entitled to take the actions contemplated in Section 6.2 hereof.

 

The Depositary may at any time be removed by the Company by written notice of such removal, which removal shall be effective on the later of (i) the 90th day after delivery thereof to the Depositary (whereupon the Depositary shall be entitled to take the actions contemplated in Section 6.2 hereof if a successor depositary has not been appointed), and (ii)  the appointment by the Company of a successor depositary and its acceptance of such appointment as hereinafter provided, save that, any amounts, fees, costs or expenses owed to the Depositary hereunder or in accordance with any other agreements otherwise agreed in writing between the Company and the Depositary from time to time shall be paid to the Depositary prior to such removal.

 

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

 

Any corporation into or with which the Depositary may be merged or consolidated shall be the successor of the Depositary without the execution or filing of any document or any further act and, notwithstanding anything to the contrary in this Deposit Agreement, the Depositary may assign or otherwise transfer all or any of its rights and benefits under this Deposit Agreement (including any cause of action arising in connection with it) to Deutsche Bank AG or any branch thereof or any entity which is a direct or indirect subsidiary or other affiliate of Deutsche Bank AG.

 

SECTION 5.5  The Custodian.  The Custodian or its successors in acting hereunder shall be subject at all times and in all respects to the direction of the Depositary for the Deposited Securities for which the Custodian acts as custodian and shall be responsible solely to it.  If any Custodian resigns or is discharged from its duties hereunder with respect to any Deposited Securities and no other Custodian has previously been appointed hereunder, the Depositary shall promptly appoint a substitute custodian.  The Depositary shall require such resigning or discharged Custodian to deliver the Deposited Securities held by it, together with all such records maintained by it as Custodian with respect to such Deposited Securities as the Depositary may request, to the Custodian designated by the Depositary.  Whenever the Depositary determines, in its discretion, that it is appropriate to do so, it may appoint an additional entity to act as Custodian with respect to any Deposited Securities, or discharge the Custodian with respect to any Deposited Securities and appoint a substitute custodian, which shall thereafter be Custodian hereunder with respect to the Deposited Securities.  After any such change, the Depositary shall give notice thereof in writing to all Holders.

 

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

 

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

 

The Company will also transmit to the Depositary (a) English language versions of the other notices, reports and communications which are made generally available by the Company to holders of its Shares or other Deposited Securities and (b) English language versions of the Company’s annual and other reports prepared in accordance with the applicable requirements of the Commission.  The Depositary shall arrange, at the request of the Company and at the Company’s expense, for the mailing of copies thereof to all Holders, or by any other means as agreed between the Company and the Depositary (at the Company’s expense) or make such notices, reports and other communications available for inspection by all Holders, provided, that, the Depositary shall have received evidence sufficiently satisfactory to it, including in the form of an Opinion of Counsel regarding U.S. law or of any other applicable jurisdiction, furnished at the expense of the Company, as the Depositary reasonably requests, that the distribution of such notices, reports and any such other communications to Holders from time to time is valid and does not or will not infringe any local, U.S. or other applicable jurisdiction regulatory restrictions or requirements if so distributed and made available to Holders.  The Company will timely provide the Depositary with the quantity of such notices,  reports, and communications, as requested by the Depositary from time to time, in order for the Depositary to effect such mailings. The Company has delivered to the Depositary and the Custodian a copy of the Memorandum and Articles of Association along with the provisions of or governing the Shares and any other Deposited Securities issued by the Company or any Affiliate of the Company, in connection with the Shares, in each case, to the extent not in English, along with a certified English translation thereof, and promptly upon any amendment thereto or change therein, the Company shall deliver to the Depositary and the Custodian a copy of such amendment thereto or change therein, to the extent not in English, along with a certified English translation thereof. The Depositary may rely upon such copy for all purposes of this Deposit Agreement.

 

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The Depositary will make available, at the expense of the Company, a copy of any such notices, reports or communications issued by the Company and delivered to the Depositary for inspection by the Holders of the Receipts evidencing the American Depositary Shares representing such Shares governed by such provisions at the Depositary’s Corporate Trust Office, at the office of the Custodian and at any other designated transfer office.

 

SECTION 5.7  Issuance of Additional Shares, ADSs etc.  The Company agrees that in the event it or any of its Affiliates proposes (i) an issuance, sale or distribution of additional Shares, (ii) an offering of rights to subscribe for Shares or other Deposited Securities, (iii) an issuance of securities convertible into or exchangeable for Shares, (iv) an issuance of rights to subscribe for securities convertible into or exchangeable for Shares, (v) an elective dividend of cash or Shares, (vi) a redemption of Deposited Securities, (vii) a meeting of holders of Deposited Securities, or solicitation of consents or proxies, relating to any reclassification of securities, merger, subdivision, amalgamation or consolidation or transfer of assets, (viii) any reclassification, recapitalization, reorganization, merger, amalgamation, consolidation or sale of assets which affects the Deposited Securities or (ix) a distribution of property other than cash, Shares or rights to purchase additional Shares it will obtain U.S. legal advice and take all steps necessary to ensure that the application of the proposed transaction to Holders and Beneficial Owners does not violate the registration provisions of the Securities Act, or any other applicable laws (including, without limitation, the Investment Company Act of 1940, as amended, the Exchange Act or the securities laws of the states of the United States).  In support of the foregoing, the Company will furnish to the Depositary at its request, at the Company’s expense, (a) a written opinion of U.S. counsel (satisfactory to the Depositary) stating whether or not application of such transaction to Holders and Beneficial Owners (1) requires a registration statement under the Securities Act to be in effect or (2) is exempt from the registration requirements of the Securities Act and/or (3) dealing with such other issues requested by the Depositary; (b) a written opinion of Cayman Islands counsel (satisfactory to the Depositary) stating that (1) making the transaction available to Holders and Beneficial Owners does not violate the laws or regulations of the Cayman Islands and (2) all requisite regulatory consents and approvals have been obtained in the Cayman Islands; and (c) as the Depositary may request, a written Opinion of Counsel in any other jurisdiction in which Holders or Beneficial Owners reside to the effect that making the transaction available to such Holders or Beneficial Owners does not violate the laws or regulations of such jurisdiction.  If the filing of a registration statement is required, the Depositary shall not have any obligation to proceed with the transaction unless it shall have received evidence reasonably satisfactory to it that such registration statement has been declared effective and that such distribution is in accordance with all applicable laws or regulations.  If, being advised by counsel, the Company determines that a transaction is required to be registered under the Securities Act, the Company will either (i) register such transaction to the extent  necessary, (ii) alter the terms of the transaction to avoid the registration requirements of the Securities Act or (iii) direct the Depositary to take specific measures, in each case as contemplated in this Deposit Agreement, to prevent such transaction from violating the registration requirements of the Securities Act.

 

The Company agrees with the Depositary that neither the Company nor any of its Affiliates will at any time (i) deposit any Shares or other Deposited Securities, either upon original issuance or upon a sale of Shares or other Deposited Securities previously issued and reacquired by the Company or by any such Affiliate, or (ii) issue additional Shares, rights to subscribe for such Shares, securities convertible into or exchangeable for Shares or rights to subscribe for such securities, unless such transaction and the securities issuable in such transaction are exempt from registration under the Securities Act or have been registered under the Securities Act (and such registration statement has been declared effective).

 

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

 

SECTION 5.8  Indemnification.  The Company agrees to indemnify the Depositary, any Custodian and each of their respective directors, officers, employees, agents (including without limitation, the Agents) and Affiliates against, and hold each of them harmless from, any losses, liabilities, taxes, costs, claims, judgments, proceedings, actions, demands and any charges or expenses of any kind whatsoever (including, but not limited to, reasonable fees and expenses of counsel together with, in each case, value added tax and any similar tax charged or otherwise imposed in respect thereof) (collectively referred to as “Losses”) which the Depositary or any agent (including without limitation, the Agents) thereof may incur or which may be made against it as a result of or in connection with its appointment or the exercise of its powers and duties under this Agreement or that may arise (a) out of or in connection with any offer, issuance, sale, resale, transfer, deposit or withdrawal of Receipts, American Depositary Shares, the Shares, or other Deposited Securities, as the case may be, (b) out of or in connection with any offering documents in respect thereof or (c) out of or in connection with acts performed or omitted, including, but not limited to, any delivery by the Depositary on behalf of the Company of information regarding the Company in connection with this Deposit Agreement, the Receipts, the American Depositary Shares, the Shares, or any Deposited Securities, in any such case (i) by the Depositary, the Custodian or any of their respective directors, officers, employees, agents (including without limitation, the Agents) and Affiliates, except to the extent any such Losses arise out of the gross negligence or wilful misconduct of any of them, or (ii) by the Company or any of its directors, officers, employees, agents and Affiliates.

 

The Depositary agrees to indemnify the Company and hold it harmless from any Losses which may arise out of acts performed or omitted to be performed by the Depositary arising out of its gross negligence or wilful misconduct.  Notwithstanding the above, in no event shall the Depositary or any of its directors, officers, employees, agents (including without limitation, the Agents) and/or Affiliates be liable for any special, consequential, indirect or punitive damages to the Company, Holders, Beneficial Owners or any other person.

 

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

 

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

 

SECTION 5.9  Fees and Charges of Depositary.  The Company, the Holders, the Beneficial Owners, and persons depositing Shares or surrendering ADSs for cancellation and withdrawal of Deposited Securities shall be required to pay to the Depositary the Depositary’s fees and related charges identified as payable by them respectively as provided for under Article (9) of the Receipt.  All fees and charges so payable may, at any time and from time to time, be changed by agreement between the Depositary and the Company, but, in the case of fees and charges payable by Holders and Beneficial Owners, only in the manner contemplated in Section 6.1 hereof.  The Depositary shall provide, without charge, a copy of its latest fee schedule to anyone upon request.

 

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The Depositary and the Company may reach separate agreement in relation to the payment of any additional remuneration to the Depositary in respect of any exceptional duties which the Depositary finds necessary or desirable and agreed by both parties in the performance of its obligations hereunder and in respect of the actual costs and expenses of the Depositary in respect of any notices required to be given to the Holders in accordance with Article (20) of the Receipt.

 

In connection with any payment by the Company to the Depositary:

 

(i)                                     all fees, taxes, duties, charges, costs and expenses which are payable by the Company shall be paid or be procured to be paid by the Company (and any such amounts which are paid by the Depositary shall be reimbursed to the Depositary by the Company upon demand therefor);

 

(ii)                                  such payment shall be subject to all necessary applicable exchange control and other consents and approvals having been obtained. The Company undertakes to use its reasonable endeavours to obtain all necessary approvals that are required to be obtained by it in this connection; and

 

(iii)                               the Depositary may request, in its sole but reasonable discretion after reasonable consultation with the Company, an Opinion of Counsel regarding U.S. law, the laws of the Cayman Islands or of any other relevant jurisdiction, to be furnished at the expense of the Company, if at any time it deems it necessary to seek such an Opinion of Counsel regarding the validity of any action to be taken or instructed to be taken under this Agreement.

 

The Company agrees to promptly pay to the Depositary such other fees, charges and expenses and to reimburse the Depositary for such out-of-pocket expenses as the Depositary and the Company may agree to in writing from time to time.  Responsibility for payment of  such charges may at any time and from time to time be changed by agreement between the Company and the Depositary.

 

All payments by the Company to the Depositary under this Section 5.9 shall be paid without set-off or counterclaim, and free and clear of and without deduction or withholding for or on account of, any present or future taxes, levies, imports, duties, fees, assessments or other charges of whatever nature, imposed by the Cayman Islands or by any department, agency or other political subdivision or taxing authority thereof or therein, and all interest, penalties or similar liabilities with respect thereto.

 

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

 

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SECTION 5.10  Restricted Securities Owners/Ownership Restrictions.  From time to time or upon request of the Depositary, the Company shall provide to the Depositary a list setting forth, to the actual knowledge of the Company, those persons or entities who beneficially own Restricted Securities and the Company shall update such list on a regular basis. The Depositary may rely on such list or update but shall not be liable for any action or omission made in reliance thereon. The Company agrees to advise in writing each of the persons or entities who, to the knowledge of the Company, holds Restricted Securities that such Restricted Securities are ineligible for deposit hereunder and, to the extent practicable, shall require each of such persons to represent in writing that such person will not deposit Restricted Securities hereunder.  Holders and Beneficial Owners shall comply with any limitations on ownership of Shares under the Memorandum and Articles of Association or applicable Cayman Islands law as if they held the number of Shares their ADSs represent. The Company shall, in accordance with Article (24) of the Receipt, inform Holders and Beneficial Owners and the Depositary of any other limitations on ownership of Shares that the Holders and Beneficial Owners may be subject to by reason of the number of ADSs held under the Articles of Association or applicable Cayman Islands law, as such restrictions may be in force from time to time.

 

The Company may, in its sole discretion, but subject to applicable law, instruct the Depositary to take action with respect to the ownership interest of any Holder or Beneficial Owner pursuant to the Memorandum and Articles of Association, including but not limited to, the removal or limitation of voting rights or the mandatory sale or disposition on behalf of a Holder or Beneficial Owner of the Shares represented by the ADRs held by such Holder or Beneficial Owner in excess of such limitations, if and to the extent such disposition is permitted by applicable law and the Memorandum and Articles of Association; provided that any such measures are practicable and legal and can be undertaken without undue burden or expense, and provided further the Depositary’s agreement to the foregoing is conditional upon it being advised of any applicable changes in the Memorandum and Articles of Association.  The Depositary shall have no liability for any actions taken in accordance with such instructions.

 

ARTICLE VI.

 

AMENDMENT AND TERMINATION

 

SECTION 6.1  Amendment/Supplement.  Subject to the terms and conditions of this Section 6.1 and applicable law, the Receipts outstanding at any time, the provisions of this Deposit Agreement and the form of Receipt attached hereto and to be issued under the terms hereof may at any time and from time to time be amended or supplemented by written agreement between the Company and the Depositary in any respect which they may deem necessary or desirable and not materially prejudicial to the Holders without the consent of the Holders or Beneficial Owners. Any amendment or supplement which shall impose or increase any fees or charges (other than charges in connection with foreign exchange control regulations, and taxes and/or other governmental charges, delivery and other such expenses payable by Holders or Beneficial Owners), or which shall otherwise materially prejudice any substantial existing right of Holders or Beneficial Owners, shall not, however, become effective as to outstanding Receipts until 30 days after notice of such amendment or supplement shall have been given to the Holders of outstanding Receipts. Notice of any amendment to the Deposit Agreement or form of Receipts shall not need to describe in detail the specific amendments effectuated thereby, and failure to describe the specific amendments in any such notice shall not render such notice invalid, provided, however, that, in each such case, the notice given to the Holders identifies a means for Holders and Beneficial Owners to retrieve or receive the text of such amendment (i.e., upon retrieval from the Commission’s, the Depositary’s or the Company’s website or upon request from the Depositary).The parties hereto agree that any amendments or supplements which (i) are reasonably necessary (as agreed by the Company and the Depositary) in order for (a) the American Depositary Shares to be registered on Form F-6 under the Securities Act or (b) the American Depositary Shares or the Shares to be traded solely in electronic book-entry form and (ii) do not in either such case impose or increase any fees or charges to be borne by Holders, shall be deemed not to materially prejudice any substantial rights of Holders or Beneficial Owners. Every Holder and Beneficial Owner at the time any amendment or supplement so becomes effective shall be deemed, by continuing to hold such American Depositary Share or Shares, to consent and agree to such amendment or supplement and to be bound by the Deposit Agreement as amended and supplemented thereby. In no event shall any amendment or supplement impair the right of the Holder to surrender such Receipt and receive therefor the Deposited Securities represented thereby, except in order to comply with mandatory provisions of applicable law. Notwithstanding the foregoing, if any governmental body should adopt new laws, rules or regulations which would require amendment or supplement of the Deposit Agreement to ensure compliance therewith, the Company and the Depositary may amend or supplement the Deposit Agreement and the Receipt at any time in accordance with such changed laws, rules or regulations.  Such amendment or supplement to the Deposit Agreement in such circumstances may become effective before a notice of such amendment or supplement is given to Holders or within any other period of time as required for compliance with such laws, rules or regulations.

 

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SECTION 6.2  Termination.  The Depositary shall, at any time at the written direction of the Company, terminate this Deposit Agreement by mailing notice of such termination to the Holders of all Receipts then outstanding at least 90 days prior to the date fixed in such notice for such termination, provided that, the Depositary shall be reimbursed for any amounts, fees, costs or expenses owed to it in accordance with the terms of this Deposit Agreement and in accordance with any other agreements as otherwise agreed in writing  between the Company and the Depositary from time to time, prior to such termination shall take effect. If 90 days shall have expired after (i) the Depositary shall have delivered to the Company a written notice of its election to resign, or (ii) the Company shall have delivered to the Depositary a written notice of the removal of the Depositary, and in either case a successor depositary shall not have been appointed and accepted its appointment as provided in Section 5.4 hereof, the Depositary may terminate this Deposit Agreement by mailing notice of such termination to the Holders of all Receipts then outstanding at least 30 days prior to the date fixed for such termination. On and after the date of termination of this Deposit Agreement, each Holder will, upon surrender of such Receipt at the Corporate Trust Office of the Depositary, upon the payment of the charges of the Depositary for the surrender of Receipts referred to in Section 2.6 hereof and subject to the conditions and restrictions therein set forth, and upon payment of any applicable taxes and/or governmental charges, be entitled to Delivery, to him or upon his order, of the amount of Deposited Securities represented by such Receipt. If any Receipts shall remain outstanding after the date of termination of this Deposit Agreement, the Registrar thereafter shall discontinue the registration of transfers of Receipts, and the Depositary shall suspend the distribution of dividends to the Holders thereof, and shall not give any further notices or perform any further acts under this Deposit Agreement, except that the Depositary shall continue to collect dividends and other distributions pertaining to Deposited Securities, shall sell rights or other property as provided in this Deposit Agreement, and shall continue to Deliver Deposited Securities, subject to the conditions and restrictions set forth in Section 2.6 hereof, together with any dividends or other distributions received with respect thereto and the net proceeds of the sale of any rights or other property, in exchange for Receipts surrendered to the Depositary (after deducting, or charging, as the case may be, in each case, the charges of the Depositary for the surrender of a Receipt, any expenses for the account of the Holder in accordance with the terms and conditions of this Deposit Agreement and any applicable taxes and/or governmental charges or assessments). At any time after the expiration of six months from the date of termination of this Deposit Agreement, the Depositary may sell the Deposited Securities then held hereunder and may thereafter hold uninvested the net proceeds of any such sale, together with any other cash then held by it hereunder, in an unsegregated account, without liability for interest for the pro rata benefit of the Holders of Receipts whose Receipts have not theretofore been surrendered. After making such sale, the Depositary shall be discharged from all obligations under this Deposit Agreement with respect to the Receipts and the Shares, Deposited Securities and American Depositary Shares, except to account for such net proceeds and other cash (after deducting, or charging, as the case may be, in each case, the charges of the Depositary for the surrender of a Receipt, any expenses for the account of the Holder in accordance with the terms and conditions of this Deposit Agreement and any applicable taxes and/or governmental charges or assessments). Upon the termination of this Deposit Agreement, the Company shall be discharged from all obligations under this Deposit Agreement except for its obligations to the Depositary hereunder. The obligations under the terms of the Deposit Agreement and Receipts of Holders and Beneficial Owners of ADSs outstanding as of the effective date of any termination shall survive such effective date of termination and shall be discharged only when the applicable ADSs are presented by their Holders to the Depositary for cancellation under the terms of the Deposit Agreement and the Holders have each satisfied any and all of their obligations hereunder (including, but not limited to, any payment and/or reimbursement obligations which relate to prior to the effective date of termination but which payment and/or reimbursement is claimed after such effective date of termination).

 

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Notwithstanding anything contained in the Deposit Agreement or any ADR, in connection with the termination of the Deposit Agreement, the Depositary may, independently and without the need for any action by the Company, make available to Holders of ADSs a means to withdraw the Deposited Securities represented by their ADSs and to direct the deposit of such Deposited Securities into an unsponsored American depositary shares program established by the Depositary, upon such terms and conditions as the Depositary may deem reasonably appropriate, subject however, in each case, to satisfaction of the applicable registration requirements by the unsponsored American depositary shares program under the Securities Act, and to receipt by the Depositary of payment of the applicable fees and charges of, and reimbursement of the applicable expenses incurred by, the Depositary.

 

ARTICLE VII.

 

MISCELLANEOUS

 

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

 

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

 

SECTION 7.3  Severability.  In case any one or more of the provisions contained in this Deposit Agreement or in the 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  Holders and Beneficial Owners as Parties; Binding Effect.  The Holders and Beneficial Owners from time to time of American Depositary Shares shall be parties to the Deposit Agreement and shall be bound by all of the terms and conditions hereof and of any Receipt by acceptance hereof or any beneficial interest therein.

 

SECTION 7.5  Notices.  Any and all notices to be given to the Company shall be deemed to have been duly given if personally delivered or sent by first-class mail, air courier or cable, telex, facsimile transmission or electronic transmission, confirmed by letter, addressed to Aesthetic Medical International Holdings Group Limited, 1122 Nanshan  Boulevard, Nanshan District, Shenzhen, Guangdong Province, China 518052, Attention: Fan Peng, (Chief Strategy Officer), telephone +86 (0755) 2559 8065, facsimile +86 (0755) 2559 8065 or to any other address which the Company may specify in writing to the Depositary or at which it may be effectively given such notice in accordance with applicable law.

 

Any and all notices to be given to the Depositary shall be deemed to have been duly given if personally delivered or sent by first-class mail, air courier or cable, telex, facsimile transmission or by electronic transmission (if agreed by the Company and the Depositary), at the Company’s expense, unless otherwise agreed in writing between the Company and the Depositary, confirmed by letter, addressed to Deutsche Bank Trust Company Americas, 60 Wall Street, New York, New York 10005, USA, Attention: ADR Department, telephone:  +1 212 250-9100, facsimile:  + 1 212 797 0327 or to any other address which the Depositary may specify in writing to the Company.  Any and all notices to be given to any Holder shall be deemed to have been duly given if personally delivered or sent by first-class mail or cable, telex, facsimile transmission or by electronic transmission (if agreed by the Company and the Depositary), at the Company’s expense, unless otherwise agreed in writing between the Company and the Depositary, addressed to such Holder at the address of such Holder as it appears on the transfer books for Receipts 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 specified in such request. Notice to Holders shall be deemed to be notice to Beneficial Owners for all purposes of this Deposit Agreement.

 

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Delivery of a notice sent by mail, air courier or cable, telex, facsimile or electronic transmission shall be deemed to be effective at the time when a duly addressed letter containing the same (or a confirmation thereof in the case of a cable, telex, facsimile or electronic transmission) is deposited, postage prepaid, in a post-office letter box or delivered to an air courier service. The Depositary or the Company may, however, act upon any cable, telex, facsimile or electronic transmission received by it from the other or from any Holder, notwithstanding that such cable, telex, facsimile or electronic transmission shall not subsequently be confirmed by letter as aforesaid, as the case may be.

 

SECTION 7.6  Governing Law and Jurisdiction.  This Deposit Agreement and the Receipts shall be interpreted in accordance with, and all rights hereunder and thereunder and provisions hereof and thereof shall be governed by, the laws of the State of New York without reference to the principles of choice of law thereof.   Subject to the Depositary’s rights under the third paragraph of this Section 7.6, the Company and the Depositary agree that the federal or state courts in the City of New York shall have exclusive jurisdiction to hear and determine any suit, action or proceeding and to settle any dispute between them that may arise out of or in connection with this Deposit Agreement and, for such purposes, each irrevocably submits to the exclusive jurisdiction of such courts. Notwithstanding the above, the parties hereto agree that any judgment and/or order from any such New York court can be enforced in any court having jurisdiction thereof.   The Company hereby irrevocably designates, appoints and empowers Law Debenture Corporate Services Inc. (the “Process Agent”), now at 801 2nd Avenue, Suite 403, New York, NY 10017, United States, as its authorized agent to receive and accept for and on its behalf, and on behalf of its properties, assets and revenues, service by mail of any and all legal process, summons, notices and documents that may be served in any suit, action or proceeding brought against the Company in any federal or state court as described in the preceding sentence or in the next paragraph of  this Section 7.6. If for any reason the Process Agent shall cease to be available to act as such, the Company agrees to designate a new agent in the City of New York on the terms and for the purposes of this Section 7.6 reasonably satisfactory to the Depositary. The Company further hereby irrevocably consents and agrees to the service of any and all legal process, summons, notices and documents in any suit, action or proceeding against the Company, by service by mail of a copy thereof upon the Process Agent (whether or not the appointment of such Process Agent shall for any reason prove to be ineffective or such Process Agent shall fail to accept or acknowledge such service), with a copy mailed to the Company by registered or certified air mail, postage prepaid, to its address provided in Section 7.5 hereof. The Company agrees that the failure of the Process Agent to give any notice of such service to it shall not impair or affect in any way the validity of such service or any judgment rendered in any action or proceeding based thereon.

 

The Company irrevocably and unconditionally waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of venue of any actions, suits or proceedings brought in any court as provided in this Section 7.6, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.

 

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The Company, the Depositary and by holding an American Depositary Share (or interest therein) Holders and Beneficial Owners each agree that, notwithstanding the foregoing, with regard to any claim or dispute or difference of whatever nature between or involving the parties hereto arising directly or indirectly from the relationship created by this Deposit Agreement, the Depositary, in its sole discretion, shall be entitled to refer such dispute or difference for final settlement by arbitration (“Arbitration”) in accordance with the Commercial Arbitration Rules of the American Arbitration Association (the “Rules”) then in force.  The arbitration shall be conducted by three arbitrators, one nominated by the Depositary, one nominated by the Company, and one nominated by the two party-appointed arbitrators within 30 calendar days of the confirmation of the nomination of the second arbitrator.  If any arbitrator has not been nominated within the time limits specified herein and in the Rules, then such arbitrator shall be appointed by the American Arbitration Association in accordance with the Rules.  Judgment upon the award rendered by the arbitrators may be enforced in any court having jurisdiction thereof.  The seat and place of any reference to arbitration shall be New York City, New York, and the procedural law of such arbitration shall be New York law.  The language to be used in the arbitration shall be English. The fees of the arbitrator and other costs incurred by the parties in connection with such Arbitration shall be paid by the party or parties that is (are) unsuccessful in such Arbitration. For the avoidance of doubt this paragraph does not preclude Holders and Beneficial Owners from pursuing claims under the Securities Act or the Exchange Act in federal courts.

 

Holders and Beneficial Owners understand, and holding an American Depositary Share or an interest therein, such Holders and Beneficial Owners each irrevocably agree that any legal suit, action or proceeding against or involving the Company or the Depositary, arising out of or based upon the Deposit Agreement, American Depositary Shares, Receipts or the transactions contemplated hereby or thereby or by virtue of ownership thereof, may only be instituted in a state or federal court in New York, New York, and by holding an American Depositary Share or an interest therein each irrevocably waives any objection which it may now or hereafter have to the laying of venue of any such proceeding, and  irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding.   Holders and Beneficial Owners agree that the provisions of this paragraph shall survive such Holders’ and Beneficial Owners’ ownership of American Depositary Shares or interests therein.

 

EACH PARTY TO THE DEPOSIT AGREEMENT (INCLUDING, FOR  AVOIDANCE OF DOUBT, EACH HOLDER AND BENEFICIAL OWNER AND/OR HOLDER OF INTERESTS IN ANY ADRs) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING AGAINST THE DEPOSITARY AND/OR THE COMPANY DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE ADSs OR THE ADRs, THE DEPOSIT AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF (WHETHER BASED ON CONTRACT, TORT, COMMON LAW OR ANY OTHER THEORY).

 

The provisions of this Section 7.6 shall survive any termination of this Deposit Agreement, in whole or in part.

 

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SECTION 7.7  Assignment.  Subject to the provisions and exceptions set forth in Section 5.4 hereof, this Deposit Agreement may not be assigned by either the Company or the Depositary.

 

SECTION 7.8  Agents.  The Depositary shall be entitled, in its sole but reasonable discretion, to appoint one or more agents (the “Agents”) of which it shall have control for the purpose, inter alia, of making distributions to the Holders or otherwise carrying out its obligations under this Agreement.

 

SECTION 7.9  Affiliates etc.  The Depositary reserves the right to utilize and retain a division or Affiliate(s) of the Depositary to direct, manage and/or execute any public and/or private sale of Shares, rights, securities, property or other entitlements hereunder and to engage in the conversion of Foreign Currency hereunder.  It is anticipated that such division and/or Affiliate(s) will charge the Depositary a fee and/or commission in connection with each such transaction, and seek reimbursement of its costs and expenses related thereto.  Such fees/commissions, costs and expenses, shall be deducted from amounts distributed hereunder and shall not be deemed to be fees of the Depositary under Article (9) of the Receipt or otherwise.  Persons are advised that in converting foreign currency into U.S. dollars the Depositary may utilize Deutsche Bank AG or its affiliates (collectively, “DBAG”) to effect such conversion by seeking to enter into a foreign exchange (“FX”) transaction with DBAG.  When converting currency, the Depositary is not acting as a fiduciary for the holders or beneficial owners of depositary receipts or any other person.  Moreover, in executing FX transactions, DBAG will be acting in a principal capacity, and not as agent, fiduciary or broker, and may hold positions for its own account that are the same, similar, different or opposite to the positions of its customers, including the Depositary.  When the Depositary seeks to execute an FX transaction to accomplish such conversion, customers should be aware that DBAG is a global dealer in FX for a full range of FX products and, as a result, the rate obtained in connection with any requested foreign currency conversion may be impacted by DBAG executing FX transactions for its own account or with another customer.  In addition, in order to source liquidity for any FX transaction relating to any foreign currency  conversion, DBAG may internally share economic terms relating to the relevant FX transaction with persons acting in a sales or trading capacity for DBAG or one of its agents.  DBAG may charge fees and/or commissions to the Depositary or add a mark-up in connection with such conversions, which are reflected in the rate at which the foreign currency will be converted into U.S. dollars. The Depositary, its Affiliates and their agents, on their own behalf, may own and deal in any class of securities of the Company and its Affiliates and in ADSs.

 

SECTION 7.10  Exclusivity.  The Company agrees not to appoint any other depositary for the issuance or administration of depositary receipts evidencing any class of stock of the Company so long as Deutsche Bank Trust Company Americas is acting as Depositary hereunder.

 

SECTION 7.11  Compliance with U.S. Securities Laws.  Notwithstanding anything in this Deposit Agreement to the contrary, the withdrawal or Delivery of Deposited Securities will not be suspended by the Company or the Depositary except as would be permitted by Instruction I.A.(1) of the General Instructions to Form F-6 Registration Statement, as amended from time to time, under the Securities Act.

 

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SECTION 7.12  Titles.  All references in this Deposit Agreement to exhibits, Articles, sections, subsections, and other subdivisions refer to the exhibits, Articles, sections, subsections and other subdivisions of this Deposit Agreement unless expressly provided otherwise.  The words “this Deposit Agreement”, “herein”, “hereof”, “hereby”, “hereunder”, and words of similar import refer to the Deposit Agreement as a whole as in effect between the Company, the Depositary and the Holders and Beneficial Owners of ADSs and not to any particular subdivision unless expressly so limited.  Pronouns in masculine, feminine and neuter gender shall be construed to include any other gender, and words in the singular form shall be construed to include the plural and vice versa unless the context otherwise requires.  Titles to sections of this Deposit Agreement are included for convenience only and shall be disregarded in construing the language contained in this Deposit Agreement.

 

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IN WITNESS WHEREOF, AESTHETIC MEDICAL INTERNATIONAL HOLDINGS GROUP LIMITED and DEUTSCHE BANK TRUST COMPANY AMERICAS have duly executed this Deposit Agreement as of the day and year first above set forth and all Holders and Beneficial Owners shall become parties hereto upon acceptance by them of American Depositary Shares evidenced by Receipts issued in accordance with the terms hereof.

 

	
 
    	
AESTHETIC MEDICAL   INTERNATIONAL HOLDINGS GROUP LIMITED
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DEUTSCHE BANK TRUST   COMPANY AMERICAS
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

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EXHIBIT A

 

	
 
    	
 
    	
 
    	
CUSIP                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
ISIN                 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
American Depositary
  Shares (Each
    
	
 
    	
 
    	
 
    	
American Depositary 
   Share
    
	
 
    	
 
    	
 
    	
representing [•]
    
	
 
    	
 
    	
 
    	
Fully Paid
   Ordinary Shares)
    

 

[FORM OF FACE OF RECEIPT]

 

AMERICAN DEPOSITARY RECEIPT

 

for

 

AMERICAN DEPOSITARY SHARES

 

representing

 

DEPOSITED ORDINARY SHARES

 

of

 

AESTHETIC MEDICAL INTERNATIONAL HOLDINGS GROUP LIMITED

 

(Incorporated under the laws of the Cayman Islands)

 

DEUTSCHE BANK TRUST COMPANY AMERICAS, as depositary (herein called the “Depositary”), hereby certifies that                  is the owner of                American Depositary Shares (hereinafter “ADS”), representing deposited ordinary shares, each of Par Value of U.S. $0.001 including evidence of rights to receive such ordinary shares (the “Shares”) of Aesthetic Medical International Holdings Group Limited, a company incorporated under the laws of the Cayman Islands (the “Company”). As of the date of the Deposit Agreement (hereinafter referred to), each ADS represents [•] Shares deposited under the Deposit Agreement with the Custodian which at the date of execution of the Deposit Agreement is Deutsche Bank AG, Hong Kong Branch (the “Custodian”). The ratio of Depositary Shares to shares of stock is subject to subsequent amendment as provided in Article IV of the Deposit Agreement.  The Depositary’s Corporate Trust Office is located at 60 Wall Street, New York, New York 10005, U.S.A.

 

(1)                                 The Deposit Agreement.  This American Depositary Receipt is one of an issue of American Depositary Receipts (“Receipts”), all issued or to be issued upon the terms and conditions set forth in the Deposit Agreement, dated as of [•], 2019 (as amended from time to time, the “Deposit Agreement”), by and among the Company, the Depositary, and all Holders and Beneficial Owners from time to time of Receipts issued thereunder, each of whom by accepting a Receipt agrees to become a party thereto and becomes bound by all the terms and conditions thereof. The Deposit Agreement sets forth the rights and obligations of  Holders and Beneficial Owners of Receipts and the rights and duties of the Depositary in respect of the Shares deposited thereunder and any and all other securities, property and cash from time to time, received in respect of such Shares and held thereunder (such Shares, other securities, property and cash are herein called “Deposited Securities”). Copies of the Deposit Agreement are on file at the Corporate Trust Office of the Depositary and the Custodian.

 

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

 

The statements made on the face and reverse of this Receipt are summaries of certain provisions of the Deposit Agreement and the Memorandum and Articles of Association (as in effect on the date of the Deposit Agreement) and are qualified by and subject to the detailed provisions of the Deposit Agreement, to which reference is hereby made. All capitalized terms used herein which are not otherwise defined herein shall have the meanings ascribed thereto in the Deposit Agreement. To the extent there is any inconsistency between the terms of this Receipt and the terms of the Deposit Agreement, the terms of the Deposit Agreement shall prevail. Prospective and actual Holders and Beneficial Owners are encouraged to read the terms of the Deposit Agreement. The Depositary makes no representation or warranty as to the validity or worth of the Deposited Securities.  The Depositary has made arrangements for the acceptance of the American Depositary Shares into DTC.  Each Beneficial Owner of American Depositary Shares held through DTC must rely on the procedures of DTC and the DTC Participants to exercise and be entitled to any rights attributable to such American Depositary Shares.  The Receipt evidencing the American Depositary Shares held through DTC will be registered in the name of a nominee of DTC.  So long as the American Depositary Shares are held through DTC or unless otherwise required by law, ownership of beneficial interests in the Receipt registered in the name of DTC (or its nominee) will be shown on, and transfers of such ownership will be effected only through, records maintained by (i) DTC (or its nominee), or (ii) DTC Participants (or their nominees).

 

(2)                                 Surrender of Receipts and Withdrawal of Deposited Securities.  Upon surrender, at the Corporate Trust Office of the Depositary, of ADSs evidenced by this Receipt for the purpose of withdrawal of the Deposited Securities represented thereby, and upon payment of (i) the fees and charges of the Depositary for the making of withdrawals of Deposited Securities and cancellation of Receipts (as set forth in Section 5.9 of the Deposit Agreement and Article (9) hereof) and (ii) all fees, taxes and/or governmental charges payable in connection with such surrender and withdrawal, and, subject to the terms and conditions of the Deposit Agreement, the Memorandum and Articles of Association, Section 7.11 of the Deposit Agreement, Article (22) hereof and the provisions of or governing the Deposited Securities and other applicable laws, the Holder of the American Depositary Shares evidenced hereby is entitled to Delivery, to him or upon his order, of the Deposited Securities represented by the ADS so surrendered.  ADS may be surrendered for the purpose of  withdrawing Deposited Securities by Delivery of a Receipt evidencing such ADS (if held in registered form) or by book-entry delivery of such ADS to the Depositary.

 

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A Receipt surrendered for such purposes shall, if so required by the Depositary, be properly endorsed in blank or accompanied by proper instruments of transfer in blank, and if the Depositary so requires, the Holder thereof shall execute and deliver to the Depositary a written order directing the Depositary to cause the Deposited Securities being withdrawn to be Delivered to or upon the written order of a person or persons designated in such order. Thereupon, the Depositary shall direct the Custodian to Deliver (without unreasonable delay) at the designated office of the Custodian or through a book-entry delivery of the Shares (in either case subject to the terms and conditions of the Deposit Agreement, to the Memorandum and Articles of Association, and to the provisions of or governing the Deposited Securities and applicable laws, now or hereafter in effect), to or upon the written order of the person or persons designated in the order delivered to the Depositary as provided above, the Deposited Securities represented by such ADSs, together with any certificate or other proper documents of or relating to title for the Deposited Securities or evidence of the electronic transfer thereof (if available) as the case may be to or for the account of such person.  Subject to Article (4) hereof, in the case of surrender of a Receipt evidencing a number of ADSs representing other than a whole number of Shares, the Depositary shall cause ownership of the appropriate whole number of Shares to be Delivered in accordance with the terms hereof, and shall, at the discretion of the Depositary, either (i) issue and Deliver to the person surrendering such Receipt a new Receipt evidencing American Depositary Shares representing any remaining fractional Share, or (ii) sell or cause to be sold the fractional Shares represented by the Receipt so surrendered and remit the proceeds thereof (net of (a) applicable fees and charges of, and expenses incurred by, the Depositary and/or a division or Affiliate(s) of the Depositary and (b) taxes and/or governmental charges) to the person surrendering the Receipt.  At the request, risk and expense of any Holder so surrendering a Receipt, and for the account of such Holder, the Depositary shall direct the Custodian to forward (to the extent permitted by law) any cash or other property (other than securities) held in respect of, and any certificate or certificates and other proper documents of or relating to title to, the Deposited Securities represented by such Receipt to the Depositary for Delivery at the Corporate Trust Office of the Depositary, and for further Delivery to such Holder.  Such direction shall be given by letter or, at the request, risk and expense of such Holder, by cable, telex or facsimile transmission. Upon receipt of such direction by the Depositary, the Depositary may make delivery to such person or persons entitled thereto at the Corporate Trust Office of the Depositary of any dividends or cash distributions with respect to the Deposited Securities represented by such Receipt, or of any proceeds of sale of any dividends, distributions or rights, which may at the time be held by the Depositary.

 

(3)                                 Transfers, Split-Ups and Combinations of Receipts.  Subject to the terms and conditions of the Deposit Agreement, the Registrar shall register transfers of Receipts on its books, upon surrender at the Corporate Trust Office of the Depositary of a Receipt by the Holder thereof in person or by duly authorized attorney, properly endorsed in the case of a certificated Receipt or accompanied by, or in the case of Receipts issued through any book-entry system, including, without limitation, DRS/Profile, receipt by the Depositary of proper instruments of transfer (including signature guarantees in accordance with standard industry practice) and duly stamped as may be required by the laws of the State of New York, of the United States, of the Cayman Islands and of any other applicable jurisdiction.  Subject to the terms and conditions of the Deposit Agreement, including payment of the applicable fees and expenses incurred by, and charges of, the Depositary, the Depositary shall execute and  Deliver a new Receipt(s) (and if necessary, cause the Registrar to countersign such Receipt(s)) and deliver same to or upon the order of the person entitled to such Receipts evidencing the same aggregate number of ADSs as those evidenced by the Receipts surrendered. Upon surrender of a Receipt or Receipts for the purpose of effecting a split-up or combination of such Receipt or Receipts upon payment of the applicable fees and charges of the Depositary, and subject to the terms and conditions of the Deposit Agreement, the Depositary shall execute and deliver a new Receipt or Receipts for any authorized number of ADSs requested, evidencing the same aggregate number of ADSs as the Receipt or Receipts surrendered.

 

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

 

The issuance of ADSs against deposits of Shares generally or against deposits of particular Shares may be suspended, or the issuance of ADSs against the deposit of particular Shares may be withheld, or the registration of transfer of Receipts in particular instances may be refused, or the registration of transfer of Receipts generally may be suspended, during any period when the transfer books of the Depositary are closed or if any such action is deemed necessary or advisable by the Depositary or the Company, in good faith, at any time or from time to time because of any requirement of law, any government or governmental body or commission or any securities exchange upon which the Receipts or Share are listed, or under any provision of the Deposit Agreement or provisions of, or governing, the Deposited Securities or any meeting of shareholders of the Company or for any other reason, subject in all cases to Article (22) hereof.

 

The Depositary shall not issue ADSs prior to the receipt of Shares or deliver Shares prior to the receipt and cancellation of ADSs.

 

(5)                                 Compliance With Information Requests.  Notwithstanding any other provision of the Deposit Agreement or this Receipt, each Holder and Beneficial Owner of the ADSs represented hereby agrees to comply with requests from the Company pursuant to the laws of the Cayman Islands, the rules and requirements of NASDAQ and any other stock exchange on which the Shares are, or will be registered, traded or listed, the Memorandum and Articles of Association, which are made to provide information as to the capacity in which such Holder or Beneficial Owner owns ADSs and regarding the identity of any other person interested in such ADSs and the nature of such interest and various other matters whether or not they are Holders and/or Beneficial Owner at the time of such request. The Depositary agrees to use reasonable efforts to forward any such requests to the Holders and to forward to the Company any such responses to such requests received by the Depositary.

 

(6)                                 Liability of Holder for Taxes, Duties and Other Charges.  If any tax or other governmental charge shall become payable by the Depositary or the Custodian with respect to any Receipt or any Deposited Securities or ADSs, such tax or other governmental charge shall be payable by the Holders and Beneficial Owners to the Depositary. The Company, the Custodian and/or the Depositary may withhold or deduct from any distributions made in respect of Deposited Securities and may sell for the account of the Holder and/or Beneficial Owner any or all of the Deposited Securities and apply such distributions and sale proceeds in payment of such taxes (including applicable interest and penalties) or charges, with the Holder and the Beneficial Owner hereof remaining fully liable for any deficiency.  The Custodian may refuse the deposit of Shares, and the Depositary may refuse to issue ADSs, to deliver Receipts, register the transfer, split-up or combination of ADRs and (subject to Article (22) hereof) the withdrawal of Deposited Securities, until payment in full of such tax, charge, penalty or interest is received.

 

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The liability of Holders and Beneficial Owners under the Deposit Agreement shall survive any transfer of Receipts, any surrender of Receipts and withdrawal of Deposited Securities or the termination of the Deposit Agreement.

 

Holders understand that in converting Foreign Currency, amounts received on conversion are calculated at a rate which may exceed the number of decimal places used by the Depositary to report distribution rates (which in any case will not be less than two decimal places).  Any excess amount may be retained by the Depositary as an additional cost of conversion, irrespective of any other fees and expenses payable or owing hereunder and shall not be subject to escheatment.

 

(7)                                 Representations and Warranties of Depositors.  Each person depositing Shares under the Deposit Agreement shall be deemed thereby to represent and warrant that (i) such Shares (and the certificates therefor) are duly authorized, validly issued, fully paid, non-assessable and were legally obtained by such person, (ii) all preemptive (and similar) rights, if any, with respect to such Shares, have been validly waived or exercised, (iii) the person making such deposit is duly authorized so to do, (iv) the Shares presented for deposit are free and clear of any lien, encumbrance, security interest, charge, mortgage or adverse claim, and are not, and the ADSs issuable upon such deposit will not be, Restricted Securities, (v) the Shares presented for deposit have not been stripped of any rights or entitlements and (vi) the Shares are not subject to any lock-up agreement with the Company or other party, or the Shares are subject to a lock-up agreement but such lock-up agreement has terminated or the lock-up restrictions imposed thereunder have expired or been validly waived.  Such representations and warranties shall survive the deposit and withdrawal of Shares and the issuance, cancellation and transfer of ADSs.  If any such representations or warranties are false in any way, the Company and Depositary shall be authorized, at the cost and expense of the person depositing Shares, to take any and all actions necessary to correct the consequences thereof.

 

(8)                                 Filing Proofs, Certificates and Other Information.  Any person presenting Shares for deposit shall provide, any Holder and any Beneficial Owner may be required to provide, and every Holder and Beneficial Owner agrees, from time to time to provide to the Depositary such proof of citizenship or residence, taxpayer status, payment of all applicable taxes and/or other governmental charges, exchange control approval, legal or beneficial ownership of ADSs and Deposited Securities, compliance with applicable laws and the terms of the Deposit Agreement and the provisions of, or governing, the Deposited Securities or other information as the Depositary deems necessary or proper or as the Company may reasonably require by written request to the Depositary consistent with its obligations under the Deposit  Agreement. Pursuant to the Deposit Agreement, the Depositary and the Registrar, as applicable, may withhold the execution or Delivery or registration of transfer of any Receipt or the distribution or sale of any dividend or other distribution of rights or of the proceeds thereof, or to the extent not limited by the terms of Article (22) hereof or the terms of the Deposit Agreement, the Delivery of any Deposited Securities until such proof or other information is filed or such certifications are executed, or such representations and warranties are made, or such other documentation or information provided, in each case to the Depositary’s and the Company’s satisfaction. The Depositary shall from time to time on the written request of the Company advise the Company of the availability of any such proofs, certificates or other information and shall, at the Company’s sole expense, provide or otherwise make available copies thereof to the Company upon written request therefor by the Company, unless such disclosure is prohibited by law. Each Holder and Beneficial Owner agrees to provide any information requested by the Company or the Depositary pursuant to this paragraph. Nothing herein shall obligate the Depositary to (i) obtain any information for the Company if not provided by the Holders or Beneficial Owners or (ii) verify or vouch for the accuracy of the information so provided by the Holders or Beneficial Owners.

 

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Every Holder and Beneficial Owner agrees to indemnify the Depositary, the Company, the Custodian, the Agents and each of their respective directors, officers, employees, agents and Affiliates against, and to hold each of them harmless from, any Losses which any of them may incur or which may be made against any of them as a result of or in connection with any inaccuracy in or omission from any such proof, certificate, representation, warranty, information or document furnished by or on behalf of such Holder and/or Beneficial Owner or as a result of any such failure to furnish any of the foregoing.

 

The obligations of Holders and Beneficial Owners under the Deposit Agreement shall survive any transfer of Receipts, any surrender of Receipts and withdrawal of Deposited Securities or the termination of this Deposit Agreement.

 

(9)                                 Charges of Depositary.  The Depositary reserves the right to charge the following fees for the services performed under the terms of the Deposit Agreement, provided, however, that no fees shall be payable upon distribution of cash dividends so long as the charging of such fee is prohibited by the exchange, if any, upon which the ADSs are listed:

 

(i)                                     to any person to whom ADSs are issued or to any person to whom a distribution is made in respect of ADS distributions pursuant to stock dividends or other free distributions of stock, bonus distributions, stock splits or other distributions (except where converted to cash), a fee not in excess of U.S. $ 5.00 per 100 ADSs (or fraction thereof) so issued under the terms of the Deposit Agreement to be determined by the Depositary;

 

(ii)                                  to any person surrendering ADSs for withdrawal of Deposited Securities or whose ADSs are cancelled or reduced for any other reason including, inter alia, cash distributions made pursuant to a cancellation or withdrawal, a fee not in excess of U.S. $ 5.00 per 100 ADSs reduced, cancelled or surrendered (as the case may be);

 

(iii)                               to any holder of ADSs (including, without limitation, Holders), a fee not in excess of U.S. $ 5.00 per 100 ADSs  held for the distribution of cash dividends;

 

(iv)                              to any holder of ADSs (including, without limitation, Holders), a fee not in excess of U.S. $ 5.00 per 100 ADSs  held for the distribution of cash entitlements  (other than cash dividends) and/or cash proceeds, including proceeds from the sale of rights, securities and other entitlements;

 

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(v)                                 to any holder of ADSs (including, without limitation, Holders), a fee not in excess of U.S. $ 5.00 per 100 ADSs (or portion thereof) issued upon the exercise of rights; and

 

(vi)                              for the operation and maintenance costs in administering the ADSs an annual fee of U.S. $ 5.00 per 100 ADSs, such fee to be assessed against Holders of record as of the date or dates set by the Depositary as it sees fit and collected at the sole discretion of the Depositary by billing such Holders for such fee or by deducting such fee from one or more cash dividends or other cash distributions.

 

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

 

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

 

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

 

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

 

(iv)                              the expenses and charges incurred by the Depositary and/or a division or Affiliate(s) of the Depositary in the conversion of Foreign Currency;

 

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

 

(vi)                              the fees and expenses incurred by the Depositary in connection with the delivery of Deposited Securities, including any fees of a central depository for securities in the local market, where applicable;

 

(vii)                           any additional fees, charges, costs or expenses that may be incurred by the Depositary or a division or Affiliate(s) of the Depositary from time to time.

 

Any other fees and charges of, and expenses incurred by, the Depositary or the Custodian under the Deposit Agreement shall be for the account of the Company unless otherwise agreed in writing between the Company and the Depositary from time to time.  All fees and charges may, at any time and from time to time, be changed by agreement between the Depositary and Company but, in the case of fees and charges payable by Holders or Beneficial Owners, only in the manner contemplated by Article (20) hereof.

 

The Depositary may make payments to the Company and/or may share revenue with the Company derived from fees collected from Holders and Beneficial Owners, upon such terms and conditions as the Company and the Depositary may agree from time to time.

 

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(10)                          Title to Receipts.  It is a condition of this Receipt, and every successive Holder of this Receipt by accepting or holding the same consents and agrees, that title to this Receipt (and to each ADS evidenced hereby) is transferable by delivery of the Receipt, provided it has been properly endorsed or accompanied by proper instruments of transfer, such Receipt being a certificated security under the laws of the State of New York.  Notwithstanding any notice to the contrary, the Depositary may deem and treat the Holder of this Receipt (that is, the person in whose name this Receipt is registered on the books of the Depositary) as the absolute owner hereof for all purposes.  The Depositary shall have no obligation or be subject to any liability under the Deposit Agreement or this Receipt to any holder of this Receipt or any Beneficial Owner unless such holder is the Holder of this Receipt registered on the books of the Depositary or, in the case of a Beneficial Owner, such Beneficial Owner or the Beneficial Owner’s representative is the Holder registered on the books of the Depositary.

 

(11)                          Validity of Receipt.  This Receipt shall not be entitled to any benefits under the Deposit Agreement or be valid or enforceable for any purpose, unless this Receipt has been (i) dated, (ii) signed by the manual or facsimile signature of a duly authorized signatory of the Depositary, (iii) if a Registrar for the Receipts shall have been appointed, countersigned by the manual or facsimile signature of a duly authorized signatory of the Registrar and (iv) registered in the books maintained by the Depositary or the Registrar, as applicable, for the issuance and transfer of Receipts.  Receipts bearing the facsimile signature of a duly-authorized signatory of the Depositary or the Registrar, who at the time of signature was a duly-authorized signatory of the Depositary or the Registrar, as the case may be, shall bind the Depositary, notwithstanding the fact that such signatory has ceased to be so authorized prior to the execution and delivery of such Receipt by the Depositary or did not hold such office on the date of issuance of such Receipts.

 

(12)                          Available Information; Reports; Inspection of Transfer Books.  The Company is subject to the periodic reporting requirements of the Exchange Act applicable to foreign private issuers (as defined in Rule 405 of the Securities Act) and accordingly files certain information with the Commission.  These reports and documents can be inspected and copied at the public reference facilities maintained by the Commission located at 100 F Street, N.E., Washington D.C. 20549, U.S.A.  The Depositary shall make available during normal business hours on any Business Day for inspection by Holders at its Corporate Trust Office any reports and communications, including any proxy soliciting materials, received from the Company which are both (a) received by the Depositary, the Custodian, or the nominee of either of them as the holder of the Deposited Securities and (b) made generally available to the holders of such Deposited Securities by the Company.

 

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

 

The Depositary or the Registrar, as applicable, may close the transfer books with respect to the Receipts, at any time or from time to time, when deemed necessary or advisable by it in  good faith in connection with the performance of its duties hereunder, or at the reasonable written request of the Company subject, in all cases, to Article (22) hereof.

 

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Dated:
    	
DEUTSCHE BANK TRUST
    
	
 
    	
COMPANY AMERICAS, as   Depositary
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    

 

The address of the Corporate Trust Office of the Depositary is 60 Wall Street, New York, New York 10005, U.S.A.

 

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EXHIBIT B

 

[FORM OF REVERSE OF RECEIPT]
  SUMMARY OF CERTAIN ADDITIONAL PROVISIONS
 OF THE DEPOSIT AGREEMENT

 

(13)                          Dividends and Distributions in Cash, Shares, etc.  Whenever the Depositary receives confirmation from the Custodian of receipt of any cash dividend or other cash distribution on any Deposited Securities, or receives proceeds from the sale of any Shares, rights securities or other entitlements under the Deposit Agreement, the Depositary will, if at the time of receipt thereof any amounts received in a Foreign Currency can, in the judgment of the Depositary (upon the terms of the Deposit Agreement), be converted on a practicable basis, into Dollars transferable to the United States, promptly convert or cause to be converted such dividend, distribution or proceeds into Dollars and will distribute promptly the amount thus received (net of applicable fees and charges of, and expenses incurred by, the Depositary and/or a division or Affiliate(s) of the Depositary and taxes and/or governmental charges) to the Holders of record as of the ADS Record Date in proportion to the number of ADSs representing such Deposited Securities held by such Holders respectively as of the ADS Record Date.  The Depositary shall distribute only such amount, however, as can be distributed without attributing to any Holder a fraction of one cent.  Any such fractional amounts shall be rounded down to the nearest whole cent and so distributed to Holders entitled thereto.  Holders and Beneficial Owners understand that in converting Foreign Currency, amounts received on conversion are calculated at a rate which exceeds the number of decimal places used by the Depositary to report distribution rates. The excess amount may be retained by the Depositary as an additional cost of conversion, irrespective of any other fees and expenses payable or owing hereunder and shall not be subject to escheatment. If the Company, the Custodian or the Depositary is required to withhold and does withhold from any cash dividend or other cash distribution in respect of any Deposited Securities an amount on account of taxes, duties or other governmental charges, the amount distributed to Holders on the ADSs representing such Deposited Securities shall be reduced accordingly. Such withheld amounts shall be forwarded by the Company, the Custodian or the Depositary to the relevant governmental authority.  Evidence of payment thereof by the Company shall be forwarded by the Company to the Depositary upon request. The Depositary shall forward to the Company or its agent such information from its records as the Company may reasonably request to enable the Company or its agent to file with governmental agencies such reports as are necessary to obtain benefits under the applicable tax treaties for the Holders and Beneficial Owners of Receipts.

 

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

 

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

 

Upon timely receipt of a notice indicating that the Company wishes an elective distribution to be made available to Holders upon the terms described in the Deposit Agreement, the Depositary shall, upon provision of all documentation required under the Deposit Agreement, (including, without limitation, any legal opinions the Depositary may request under the Deposit Agreement) determine whether such distribution is lawful and reasonably practicable.  If so, the Depositary shall, subject to the terms and conditions of the Deposit Agreement, establish an ADS Record Date according to Article (14) hereof and establish procedures to enable the Holder hereof to elect to receive the proposed distribution in cash or in additional ADSs.  If a Holder elects to receive the distribution in cash, the dividend shall be distributed as in the case of a distribution in cash.  If the Holder hereof elects to receive the distribution in additional ADSs, the distribution shall be distributed as in the case of a distribution in Shares upon the terms described in the Deposit Agreement.  If such elective distribution is not lawful or reasonably practicable or if the Depositary did not receive satisfactory documentation set forth in the Deposit Agreement, the Depositary shall, to the extent permitted by law, distribute to Holders, on the basis of the same determination as is made in the Cayman Islands, in respect of the Shares for which no election is made, either (x) cash or (y) additional ADSs representing such additional Shares, in each case, upon the terms described in the Deposit Agreement.  Nothing herein shall obligate the Depositary to make available to the Holder hereof a method to receive the elective dividend in Shares (rather than ADSs).  There can be no assurance that the Holder hereof will be given the opportunity to receive elective distributions on the same terms and conditions as the holders of Shares.

 

Whenever the Company intends to distribute to the holders of the Deposited Securities rights to subscribe for additional Shares, the Company shall give notice thereof to the Depositary at least 60 days prior to the proposed distribution stating whether or not it wishes such rights to be made available to Holders of ADSs. Upon timely receipt by the Depositary of a notice indicating that the Company wishes such rights to be made available to Holders of ADSs, the Company shall determine whether it is lawful and reasonably practicable to make such rights available to the Holders. The Depositary shall make such rights available to any Holders only if the Company shall have timely requested that such rights be made available to Holders, the Depositary shall have received the documentation required by the Deposit Agreement, and the Depositary shall have determined that such distribution of rights is lawful and reasonably practicable.  If such conditions are not satisfied, the Depositary shall sell the rights as described below.  In the event all conditions set forth above are satisfied, the Depositary shall establish an ADS Record Date and establish procedures (x) to distribute such rights (by means of warrants or otherwise) and (y) to enable the Holders to exercise the rights (upon payment of the applicable fees and charges of, and expenses incurred by, the Depositary and/or a division or Affiliate(s) of the Depositary and taxes and/or governmental charges).  Nothing herein or in the Deposit Agreement shall obligate the Depositary to make available to the Holders a method to exercise such rights to subscribe for Shares (rather than ADSs).  If (i) the Company does not timely request the Depositary to make the rights available to Holders or if the Company requests that the rights not be made available to Holders, (ii) the Depositary fails to receive the documentation required by the Deposit Agreement or determines it is not lawful or reasonably practicable to make the rights available to Holders, or (iii) any rights made available are not exercised and appear to be about to lapse, the Depositary shall determine whether it is lawful and reasonably practicable to sell such rights, and if it so determines that it is lawful and reasonably practicable, endeavour to sell such rights in a riskless principal capacity or otherwise, at such place and upon such terms (including public and/or private sale) as it may deem proper.  The Depositary shall, upon such sale, convert and distribute proceeds of such sale (net of applicable fees and charges of, and expenses incurred by, the Depositary and/or a division or Affiliate(s) of the Depositary and taxes and/or governmental charges) upon the terms hereof and in the Deposit Agreement.  If the Depositary is unable to make any rights available to Holders or to arrange for the sale of the rights upon the terms described above, the Depositary shall allow such rights to lapse.  The Depositary shall not be responsible for (i) any failure to determine that it may be lawful or practicable to make such rights available to Holders in general or any Holders in particular, (ii) any foreign exchange exposure or loss incurred in connection with such sale, or exercise, or (iii) the content of any materials forwarded to the Holders on behalf of the Company in connection with the rights distribution.

 

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

 

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There can be no assurance that Holders generally, or any Holder in particular, will be given the opportunity to exercise rights on the same terms and conditions as the holders of Shares or to exercise such rights.  Nothing herein shall obligate the Company to file any registration statement in respect of any rights or Shares or other securities to be acquired upon the exercise of such rights or otherwise to register or qualify the offer or sale of such rights or securities under the applicable law of any other jurisdiction for any purpose.

 

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

 

If the conditions above are not satisfied, the Depositary shall sell or cause such property to be sold in a public or private sale, at such place or places and upon such terms as it may deem proper and shall distribute the proceeds of such sale received by the Depositary (net of (a) applicable fees and charges of, and expenses incurred by, the Depositary and/or a division or Affiliate(s) of the Depositary and (b) taxes and/or governmental charges) to the Holders upon the terms hereof and of the Deposit Agreement.  If the Depositary is unable to sell such property, the Depositary may dispose of such property in any way it deems reasonably practicable under the circumstances.

 

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

 

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(15)                          Voting of Deposited Securities. Subject to the next sentence, as soon as practicable after receipt of notice of any meeting at which the holders of Deposited Securities are entitled to vote, or of solicitation of consents or proxies from holders of Deposited Securities, the Depositary shall fix the ADS Record Date in respect of such meeting or such solicitation of consents or proxies. The Depositary shall, if requested by the Company in writing in a timely manner (the Depositary having no obligation to take any further action if the request shall not have been received by the Depositary at least 30 Business Days prior to the date of such vote or meeting) and at the Company’s expense, and provided no U.S. legal prohibitions exist, mail by regular, ordinary mail delivery (or by electronic mail or as otherwise may be agreed between the Company and the Depositary in writing from time to time) or otherwise distribute as soon as practicable after receipt thereof to Holders as of the ADS Record Date: (a) such notice of meeting or solicitation of consent or proxy; (b) a statement that the Holders at the close of business on the ADS Record Date will be entitled, subject to any applicable law, the provisions of this Deposit Agreement, the Company’s Memorandum and Articles of Association and the provisions of or governing the Deposited Securities (which provisions, if any, shall be summarized in pertinent part by the Company), to instruct the Depositary as to the exercise of the voting rights, if any, pertaining to the Deposited Securities represented by such Holder’s American Depositary Shares; and (c) a brief statement as to the manner in which such voting instructions may be given to the Depositary, or in which instructions may be deemed to have been given in accordance with this Article (15), including an express indication that instructions may be given (or be deemed to have been given in accordance with the immediately following paragraph of this section if no instruction is received) to the Depositary to give a discretionary proxy to a person or persons designated by the Company.  Voting instructions may be given only in respect of a number of American Depositary Shares representing an integral number of Deposited Securities.  Upon the timely receipt of voting instructions of a Holder on the ADS Record Date in the manner specified by the Depositary, the Depositary shall endeavor, insofar as practicable and permitted under applicable law, the provisions of this Deposit Agreement, the Company’s Memorandum and Articles of Association and the provisions of or governing the Deposited Securities, to vote or cause the Custodian to vote the Deposited Securities (in person or by proxy) represented by American Depositary Shares evidenced by such Receipt in accordance with such voting instructions.

 

In the event that (i) the Depositary timely receives voting instructions from a Holder which fail to specify the manner in which the Depositary is to vote the Deposited Securities represented by such Holder’s ADSs or (ii) no timely instructions are received by the Depositary from a Holder with respect to any of the Deposited Securities represented by the ADSs held by such Holder on the ADS Record Date, the Depositary shall (unless otherwise specified in the notice distributed to Holders) deem such Holder to have instructed the Depositary to give a discretionary proxy to a person designated by the Company with respect to such Deposited Securities and the Depositary shall give a discretionary proxy to a person designated by the Company to vote such Deposited Securities, provided, however, that no such instruction shall be deemed to have been given and no such discretionary proxy shall be given with respect to any matter as to which the Company informs the Depositary (and the Company agrees to provide such information as promptly as practicable in writing, if applicable) that (x) the Company does not wish to give such proxy, (y) the Company is aware or should reasonably be aware that substantial opposition exists from Holders against the outcome for which the person designated by the Company would otherwise vote or (z) the outcome for which the person designated by the Company would otherwise vote would materially and adversely affect the rights of holders of Deposited Securities, provided, further, that the Company will have no liability to any Holder or Beneficial Owner resulting from such notification.

 

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In the event that voting on any resolution or matter is conducted on a show of hands basis in accordance with the Memorandum and Articles of Association, the Depositary will refrain from voting and the voting instructions (or the deemed voting instructions, as set out above) received by the Depositary from Holders shall lapse.  The Depositary will have no obligation to demand voting on a poll basis with respect to any resolution and shall have no liability to any Holder or Beneficial Owner for not having demanded voting on a poll basis.

 

Neither the Depositary nor the Custodian shall, under any circumstances exercise any discretion as to voting, and neither the Depositary nor the Custodian shall vote, attempt to exercise the right to vote, or in any way make use of for purposes of establishing a quorum or otherwise, Deposited Securities represented by ADSs except pursuant to and in accordance with such written instructions from Holders, including the deemed instruction to the Depositary to give a discretionary proxy to a person designated by the Company.  Deposited Securities represented by ADSs for which (i) no timely voting instructions are received by the Depositary from the Holder, or (ii) timely voting instructions are received by the Depositary from the Holder but such voting instructions fail to specify the manner in which the Depositary is to vote the Deposited Securities represented by such Holder’s ADSs, shall be voted in the manner provided in this Article (15).  Notwithstanding anything else contained herein, and subject to applicable law, regulation and the Memorandum and Articles of Association, the Depositary shall, if so requested in writing by the Company, represent all Deposited Securities (whether or not voting instructions have been received in respect of such Deposited Securities from Holders as of the ADS Record Date) for the purpose of establishing quorum at a meeting of shareholders.

 

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

 

Notwithstanding the above, save for applicable provisions of the law of the Cayman Islands, and in accordance with the terms of Section 5.3 of the Deposit Agreement, the Depositary shall not be liable for any failure to carry out any instructions to vote any of the Deposited Securities or the manner in which such vote is cast or the effect of such vote.

 

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

 

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(17)                          Exoneration.  None of the Depositary, the Custodian or the Company shall be obligated to do or perform any act which is inconsistent with the provisions of the Deposit Agreement or shall incur any liability to Holders, Beneficial Owners or any third parties (i) if the Depositary, the Custodian or the Company or their respective controlling persons or agents shall be prevented or forbidden from, or subjected to any civil or criminal penalty or restraint on account of, or delayed in, doing or performing any act or thing required by the terms of the Deposit Agreement and this Receipt, by reason of any provision of any present or future law or regulation of the United States, the Cayman Islands or any other country, or of any other governmental authority or regulatory authority or stock exchange, or by reason of any provision, present or future of the Memorandum and Articles of Association or any provision of or governing any Deposited Securities, or by reason of any act of God or war or other circumstances beyond its control, (including, without limitation, nationalization, expropriation, currency restrictions, work stoppage, strikes, civil unrest, revolutions, rebellions, explosions and computer failure), (ii) by reason of any exercise of, or failure to exercise, any discretion provided for in the Deposit Agreement or in the Memorandum and Articles of Association or provisions of or governing Deposited Securities, (iii) for any action or inaction of the Depositary, the Custodian or the Company or their respective controlling persons or agents in reliance upon the advice of or information from legal counsel, accountants, any person presenting Shares for deposit, any Holder, any Beneficial Owner or authorized representative thereof, or any other person believed by it in good faith to be competent to give such advice or information, (iv) for any inability by a Holder or Beneficial Owner to benefit from any distribution, offering, right or other benefit which is made available to holders of Deposited Securities but is not, under the terms of the Deposit Agreement, made available to Holders of ADS or (v) for any special, consequential, indirect or punitive damages for any breach of the terms of the Deposit Agreement or otherwise.  The Depositary, its controlling persons, its agents (including without limitation, the Agents), any Custodian and the Company, its controlling persons and its agents may rely and shall be protected in acting upon any written notice, request, opinion or other document believed by it to be genuine and to have been signed or presented by the proper party or parties.  No disclaimer of liability under the Securities Act or the Exchange Act is intended by any provision of the Deposit Agreement.

 

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(18)                          Standard of Care.  The Company and the Depositary and their respective directors, officers, Affiliates, employees and agents (including without limitation, the Agents) assume no obligation and shall not be subject to any liability under the Deposit Agreement or the Receipts to Holders or Beneficial Owners or other persons, except in accordance with Section 5.8 of the Deposit Agreement, provided, that the Company and the Depositary and their respective directors, officers, Affiliates, employees and agents (including without limitation, the Agents) agree to perform their respective obligations specifically set forth in the Deposit Agreement without gross negligence or wilful misconduct.  The Depositary and its directors, officers, Affiliates, employees and agents (including without limitation, the Agents) shall not be liable for any failure to carry out any instructions to vote any of the Deposited Securities, or for the manner in which any vote is cast or the effect of any vote.  The Depositary shall not incur any liability for any failure to determine that any distribution or action may be lawful or reasonably practicable, for the content of any information submitted to it by the Company for distribution to the Holders or for any inaccuracy of any translation thereof, for any investment risk associated with acquiring an interest in the Deposited Securities, for the validity or worth of the Deposited Securities or for any tax consequences that may result from the ownership of ADSs, Shares or Deposited Securities, for the credit-worthiness of any third party, for allowing any rights to lapse upon the terms of the Deposit Agreement or for the failure or timeliness of any notice from the Company or for any action or non action by it in reliance upon the opinion, advice of or information from legal counsel, accountants, any person presenting Shares for deposit, any Holder or any other person believed by it in good faith to be competent to give such advice or information. The Depositary and its agents (including without limitation, the Agents) shall not be liable for any acts or omissions made by a successor depositary whether in connection with a previous act or omission of the Depositary or in connection with any matter arising wholly after the removal or resignation of the Depositary, provided that in connection with the issue out of which such potential liability arises the Depositary performed its obligations without gross negligence or willful misconduct while it acted as Depositary.

 

(19)                          Resignation and Removal of the Depositary; Appointment of Successor Depositary.  The Depositary may at any time resign as Depositary under the Deposit Agreement by written notice of resignation delivered to the Company, such resignation to be effective on the earlier of (i) the 90th day after delivery thereof to the Company (whereupon the Depositary shall, in the event no successor depositary has been appointed by the Company, be entitled to take the actions contemplated in the Deposit Agreement), or (ii) the appointment of a successor depositary and its acceptance of such appointment as provided in the Deposit Agreement, save that, any amounts, fees, costs or expenses owed to the Depositary under the Deposit Agreement or in accordance with any other agreements otherwise agreed in writing between the Company and the Depositary from time to time shall be paid to the Depositary prior to such resignation. The Company shall use reasonable efforts to appoint such successor depositary, and give notice to the Depositary of such appointment, not more than 90 days after delivery by the Depositary of written notice of resignation as provided in the Deposit Agreement.  The Depositary may at any time be removed by the Company by written notice of such removal which notice shall be effective on the later of (i) the 90th day after delivery thereof to the Depositary (whereupon the Depositary shall be entitled to take the actions contemplated in the Deposit Agreement if a successor depositary has not been appointed), or (ii) the appointment of a successor depositary and its acceptance of such appointment as provided in the Deposit Agreement save that, any amounts, fees, costs or expenses owed to the Depositary under the Deposit Agreement or in accordance with any other agreements otherwise agreed in writing between the Company and the Depositary from time to time shall be paid to the Depositary prior to such removal. In case at any time the Depositary acting hereunder shall resign or be removed, the Company shall use its best efforts to appoint a successor depositary which shall be a bank or trust company having an office in the Borough of Manhattan, the City of New York and if it shall have not appointed a successor depositary the provisions referred to in Article (21) hereof and correspondingly in the Deposit Agreement shall apply. Every successor depositary shall be required by the Company to execute and deliver to its predecessor and to the Company an instrument in writing accepting its appointment hereunder, and thereupon such successor depositary, without any further act or deed, shall become fully vested with all the rights, powers, duties and obligations of its predecessor.  The predecessor depositary, upon payment of all sums due to it and on the written request of the Company, shall (i) execute and deliver an instrument transferring to such successor all rights and powers of such predecessor hereunder (other than as contemplated in the Deposit Agreement), (ii) duly assign, transfer and deliver all right, title and interest to the Deposited Securities to such successor, and (iii) deliver to such successor a list of the Holders of all outstanding Receipts and such other information relating to Receipts and Holders thereof as the successor may reasonably request. Any such successor depositary shall promptly mail notice of its appointment to such Holders.  Any corporation into or with which the Depositary may be merged or consolidated shall be the successor of the Depositary without the execution or filing of any document or any further act and, notwithstanding anything to the contrary in the Deposit Agreement, the Depositary may assign or otherwise transfer all or any of its rights and benefits under the Deposit Agreement (including any cause of action arising in connection with it) to Deutsche Bank AG or any branch thereof or any entity which is a direct or indirect subsidiary or other affiliate of Deutsche Bank AG.

 

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(20)                          Amendment/Supplement.  Subject to the terms and conditions of this Article (20), and applicable law, this Receipt and any provisions of the Deposit Agreement may at any time and from time to time be amended or supplemented by written agreement between the Company and the Depositary in any respect which they may deem necessary or desirable without the consent of the Holders or Beneficial Owners. Any amendment or supplement which shall impose or increase any fees or charges (other than the charges of the Depositary in connection with foreign exchange control regulations, and taxes and/or other governmental charges, delivery and other such expenses), or which shall otherwise materially prejudice any substantial existing right of Holders or Beneficial Owners, shall not, however, become effective as to outstanding Receipts until 30 days after notice of such amendment or supplement shall have been given to the Holders of outstanding Receipts. Notice of any amendment to the Deposit Agreement or form of Receipts shall not need to describe in detail the specific amendments effectuated thereby, and failure to describe the specific amendments in any such notice shall not render such notice invalid, provided, however, that, in each such case, the notice given to the Holders identifies a means for Holders and Beneficial Owners to retrieve or receive the text of such amendment (i.e., upon retrieval from the Commission’s, the Depositary’s or the Company’s website or upon request from the Depositary). The parties hereto agree that any amendments or supplements which (i) are reasonably necessary (as agreed by the Company and the Depositary) in order for (a) the ADSs to be registered on Form F-6 under the Securities Act or (b) the ADSs or Shares to be traded solely in electronic book-entry form and (ii) do not in either such case impose or increase any fees or charges to be borne by Holders, shall be deemed not to materially prejudice any substantial rights of Holders or Beneficial Owners. Every Holder and Beneficial Owner at the time any amendment or supplement so becomes effective shall be deemed, by continuing to hold such ADS, to consent and agree to such amendment or supplement and to be bound by the Deposit Agreement as amended or supplemented thereby. In no event shall any amendment or supplement impair the right of the Holder to surrender such Receipt and receive therefor the Deposited Securities represented thereby, except in order to comply with mandatory provisions of applicable law. Notwithstanding the foregoing, if any governmental body should adopt new laws, rules or regulations which would require amendment or supplement of the Deposit Agreement to ensure compliance therewith, the Company and the Depositary may amend or supplement the Deposit Agreement and the Receipt at any time in accordance with such changed laws, rules or regulations. Such amendment or supplement to the Deposit Agreement in such circumstances may become effective before a notice of such amendment or supplement is given to Holders or within any other period of time as required for compliance with such laws, or rules or regulations.

 

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(21)                          Termination.  The Depositary shall, at any time at the written direction of the Company, terminate the Deposit Agreement by mailing notice of such termination to the Holders of all Receipts then outstanding at least 90 days prior to the date fixed in such notice for such termination provided that, the Depositary shall be reimbursed for any amounts, fees, costs or expenses owed to it in accordance with the terms of the Deposit Agreement and in accordance with any other agreements as otherwise agreed in writing between the Company and the Depositary from time to time, prior to such termination shall take effect. If 90 days shall have expired after (i) the Depositary shall have delivered to the Company a written notice of its election to resign, or (ii) the Company shall have delivered to the Depositary a written notice of the removal of the Depositary, and in either case a successor depositary shall not have been appointed and accepted its appointment as provided herein and in the Deposit Agreement, the Depositary may terminate the Deposit Agreement by mailing notice of such termination to the Holders of all Receipts then outstanding at least 30 days prior to the date fixed for such termination. On and after the date of termination of the Deposit Agreement, each Holder will, upon surrender of such Holder’s Receipt at the Corporate Trust Office of the Depositary, upon the payment of the charges of the Depositary for the surrender of Receipts referred to in Article (2) hereof and in the Deposit Agreement and subject to the conditions and restrictions therein set forth, and upon payment of any applicable taxes and/or governmental charges, be entitled to delivery, to him or upon his order, of the amount of Deposited Securities represented by such Receipt. If any Receipts shall remain outstanding after the date of termination of the Deposit Agreement, the Registrar thereafter shall discontinue the registration of transfers of Receipts, and the Depositary shall suspend the distribution of dividends to the Holders thereof, and shall not give any further notices or perform any further acts under the Deposit Agreement, except that the Depositary shall continue to collect dividends and other distributions pertaining to Deposited Securities, shall sell rights or other property as provided in the Deposit Agreement, and shall continue to deliver Deposited Securities, subject to the conditions and restrictions set forth in the Deposit Agreement, together with any dividends or other distributions received with respect thereto and the net proceeds of the sale of any rights or other property, in exchange for Receipts surrendered to the Depositary (after deducting, or charging, as the case may be, in each case the charges of the Depositary for the surrender of a Receipt, any expenses for the account of the Holder in accordance with the terms and conditions of the Deposit Agreement and any applicable taxes and/or governmental charges or assessments). At any time after the expiration of six months from the date of termination of the Deposit Agreement, the Depositary may sell the Deposited Securities then held hereunder and may thereafter hold uninvested the net proceeds of any such sale, together with any other cash then held by it hereunder, in an unsegregated account, without liability for interest for the pro rata benefit of the Holders of Receipts whose Receipts have not theretofore been surrendered. After making such sale, the Depositary shall be discharged from all obligations under the Deposit Agreement with respect to the Receipts and the Shares, Deposited Securities and ADSs, except to account for such net proceeds and other cash (after deducting, or charging, as the case may be, in each case the charges of the Depositary for the surrender of a Receipt, any expenses for the account of the Holder in accordance with the terms and conditions of the Deposit Agreement and any applicable taxes and/or governmental charges or assessments) and except as set forth in the Deposit Agreement. Upon the termination of the Deposit Agreement, the Company shall be discharged from all obligations under the Deposit Agreement except as set forth in the Deposit Agreement. The obligations under the terms of the Deposit Agreement and Receipts of Holders and Beneficial Owners of ADSs outstanding as of the effective date of any termination shall survive such effective date of termination and shall be discharged only when the applicable ADSs are presented by their Holders to the Depositary for cancellation under the terms of the Deposit Agreement and the Holders have each satisfied any and all of their obligations hereunder (including, but not limited to, any payment and/or reimbursement obligations which relate to prior to the effective date of termination but which payment and/or reimbursement is claimed after such effective date of termination).

 

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Notwithstanding anything contained in the Deposit Agreement or any ADR, in connection with the termination of the Deposit Agreement, the Depositary may, independently and without the need for any action by the Company, make available to Holders of ADSs a means to withdraw the Deposited Securities represented by their ADSs and to direct the deposit of such Deposited Securities into an unsponsored American depositary shares program established by the Depositary, upon such terms and conditions as the Depositary may deem reasonably appropriate, subject however, in each case, to satisfaction of the applicable registration requirements by the unsponsored American depositary shares program under the Securities Act, and to receipt by the Depositary of payment of the applicable fees and charges of, and reimbursement of the applicable expenses incurred by, the Depositary.

 

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

 

(23)                       Certain Rights of the Depositary. The Depositary, its Affiliates and their agents, on their own behalf, may own and deal in any class of securities of the Company and its Affiliates and in ADSs. The Depositary may issue ADSs against evidence of rights to receive Shares from the Company, any agent of the Company or any custodian, registrar, transfer agent, clearing agency or other entity involved in ownership or transaction records in respect of the Shares.

 

(24)                       Ownership Restrictions.  Owners and Beneficial Owners shall comply with any limitations on ownership of Shares under the Memorandum and Articles of Association or applicable Cayman Islands law as if they held the number of Shares their American Depositary Shares represent.  The Company shall inform the Owners, Beneficial Owners and the Depositary of any such ownership restrictions in place from time to time.

 

59

 

(25)                          Waiver. EACH PARTY TO THE DEPOSIT AGREEMENT (INCLUDING, FOR AVOIDANCE OF DOUBT, EACH HOLDER AND BENEFICIAL OWNER AND/OR HOLDER OF INTERESTS IN ANY ADRs) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING AGAINST THE DEPOSITARY AND/OR THE COMPANY DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE ADSs OR THE ADRs, THE DEPOSIT AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF (WHETHER BASED ON CONTRACT, TORT, COMMON LAW OR ANY OTHER THEORY).

 

60

 

(ASSIGNMENT AND TRANSFER SIGNATURE LINES)

 

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

 

	
Dated:
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
NOTICE: The signature of the Holder to this   assignment must correspond with the name as written upon the face of the   within instrument in every particular, without alteration or enlargement or   any change whatsoever.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
If the endorsement be executed by an   attorney, executor, administrator, trustee or guardian, the person executing   the endorsement must give his/her full title in such capacity and proper   evidence of authority to act in such capacity, if not on file with the   Depositary, must be forwarded with this Receipt.
    
	
SIGNATURE GUARANTEED
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    

 

61

 

	
ARTICLE I.
    	
DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SECTION 1.1
    	
“Affiliate”
    	
1
    
	
 
    	
SECTION 1.2
    	
“Agent”
    	
2
    
	
 
    	
SECTION 1.3
    	
“American Depositary   Share(s)” and “ADS(s)”
    	
2
    
	
 
    	
SECTION 1.4
    	
“Article”
    	
2
    
	
 
    	
SECTION 1.5
    	
“Articles of   Association”
    	
2
    
	
 
    	
SECTION 1.6
    	
“ADS Record Date”
    	
2
    
	
 
    	
SECTION 1.7
    	
“Beneficial Owner”
    	
2
    
	
 
    	
SECTION 1.8
    	
“Business Day”
    	
2
    
	
 
    	
SECTION 1.9
    	
“Commission”
    	
2
    
	
 
    	
SECTION 1.10
    	
“Company”
    	
2
    
	
 
    	
SECTION 1.11
    	
“Corporate Trust   Office”
    	
2
    
	
 
    	
SECTION 1.12
    	
“Custodian”
    	
2
    
	
 
    	
SECTION 1.13
    	
“Deliver” and   “Delivery”
    	
3
    
	
 
    	
SECTION 1.14
    	
“Deposit Agreement”
    	
3
    
	
 
    	
SECTION 1.15
    	
“Depositary”
    	
3
    
	
 
    	
SECTION 1.16
    	
“Deposited Securities”
    	
3
    
	
 
    	
SECTION 1.17
    	
“Dollars” and “$”
    	
3
    
	
 
    	
SECTION 1.18
    	
“DRS/Profile”
    	
3
    
	
 
    	
SECTION 1.19
    	
“DTC”
    	
3
    
	
 
    	
SECTION 1.20
    	
“Exchange Act”
    	
3
    
	
 
    	
SECTION 1.21
    	
“Foreign Currency”
    	
3
    
	
 
    	
SECTION 1.22
    	
“Foreign Registrar”
    	
3
    
	
 
    	
SECTION 1.23
    	
“Holder”
    	
4
    
	
 
    	
SECTION 1.24
    	
“Indemnified Person”   and “Indemnifying Person”
    	
4
    
	
 
    	
SECTION 1.25
    	
“Losses”
    	
4
    
	
 
    	
SECTION 1.26
    	
“Memorandum”
    	
4
    
	
 
    	
SECTION 1.27
    	
“Opinion of Counsel”
    	
4
    
	
 
    	
SECTION 1.28
    	
“Receipt(s); “American   Depositary Receipt(s)”; and “ADR(s)”
    	
4
    
	
 
    	
SECTION 1.29
    	
“Registrar”
    	
4
    
	
 
    	
SECTION 1.30
    	
“Restricted Securities”
    	
4
    
	
 
    	
SECTION 1.31
    	
“Securities Act”
    	
4
    
	
 
    	
SECTION 1.32
    	
“Share(s)”
    	
5
    
	
 
    	
SECTION 1.33
    	
“United States” or   “U.S.”
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE II.
    	
APPOINTMENT OF   DEPOSITARY; FORM OF RECEIPT; DEPOSIT OF SHARES; EXECUTION AND DELIVERY,   TRANSFER AND SURRENDER OF RECEIPTS
    	
5
    
	
 
    	
 
    	
 
    
	
 
    	
SECTION 2.1
    	
Appointment of   Depositary
    	
5
    
	
 
    	
SECTION 2.2
    	
Form and   Transferability of Receipts
    	
5
    
	
 
    	
SECTION 2.3
    	
Deposits
    	
7
    
	
 
    	
SECTION 2.4
    	
Execution and Delivery   of Receipts
    	
8
    
	
 
    	
SECTION 2.5
    	
Transfer of Receipts;   Combination and Split-up of Receipts
    	
8
    
	
 
    	
SECTION 2.6
    	
Surrender of Receipts   and Withdrawal of Deposited Securities
    	
9
    
	
 
    	
SECTION 2.7
    	
Limitations on   Execution and Delivery, Transfer, etc. of Receipts; Suspension of   Delivery, Transfer, etc.
    	
10
    
	
 
    	
SECTION 2.8
    	
Lost   Receipts, etc.
    	
11
    

 

 

	
 
    	
SECTION 2.9
    	
Cancellation and   Destruction of Surrendered Receipts; Maintenance of Records
    	
11
    
	
 
    	
SECTION 2.10
    	
Maintenance of Records
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE III.
    	
CERTAIN OBLIGATIONS OF   HOLDERS AND BENEFICIAL OWNERS OF RECEIPTS
    	
12
    
	
 
    	
 
    	
 
    
	
 
    	
SECTION 3.1
    	
Proofs, Certificates   and Other Information
    	
12
    
	
 
    	
SECTION 3.2
    	
Liability for Taxes and   Other Charges
    	
12
    
	
 
    	
SECTION 3.3
    	
Representations and   Warranties on Deposit of Shares
    	
13
    
	
 
    	
SECTION 3.4
    	
Compliance with   Information Requests
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE IV
    	
THE DEPOSITED   SECURITIES
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SECTION 4.1
    	
Cash Distributions
    	
14
    
	
 
    	
SECTION 4.2
    	
Distribution in Shares
    	
14
    
	
 
    	
SECTION 4.3
    	
Elective Distributions   in Cash or Shares
    	
15
    
	
 
    	
SECTION 4.4
    	
Distribution of Rights   to Purchase Shares
    	
15
    
	
 
    	
SECTION 4.5
    	
Distributions Other   Than Cash, Shares or Rights to Purchase Shares
    	
17
    
	
 
    	
SECTION 4.6
    	
Conversion of Foreign   Currency
    	
18
    
	
 
    	
SECTION 4.7
    	
Fixing of Record Date
    	
19
    
	
 
    	
SECTION 4.8
    	
Voting of Deposited   Securities
    	
19
    
	
 
    	
SECTION 4.9
    	
Changes Affecting   Deposited Securities
    	
21
    
	
 
    	
SECTION 4.10
    	
Available Information
    	
21
    
	
 
    	
SECTION 4.11
    	
Reports
    	
21
    
	
 
    	
SECTION 4.12
    	
List of Holders
    	
22
    
	
 
    	
SECTION 4.13
    	
Taxation; Withholding
    	
22
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE V.
    	
THE DEPOSITARY, THE   CUSTODIAN AND THE COMPANY
    	
23
    
	
 
    	
 
    	
 
    
	
 
    	
SECTION 5.1
    	
Maintenance of Office   and Transfer Books by the Registrar
    	
23
    
	
 
    	
SECTION 5.2
    	
Exoneration
    	
24
    
	
 
    	
SECTION 5.3
    	
Standard of Care
    	
25
    
	
 
    	
SECTION 5.4
    	
Resignation and Removal   of the Depositary; Appointment of Successor Depositary
    	
25
    
	
 
    	
SECTION 5.5
    	
The Custodian
    	
26
    
	
 
    	
SECTION 5.6
    	
Notices and Reports
    	
27
    
	
 
    	
SECTION 5.7
    	
Issuance of Additional   Shares, ADSs etc.
    	
28
    
	
 
    	
SECTION 5.8
    	
Indemnification
    	
29
    
	
 
    	
SECTION 5.9
    	
Fees and Charges of   Depositary
    	
29
    
	
 
    	
SECTION 5.10
    	
Restricted Securities   Owners/Ownership Restrictions
    	
31
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VI.
    	
AMENDMENT AND   TERMINATION
    	
31
    
	
 
    	
 
    	
 
    
	
 
    	
SECTION 6.1
    	
Amendment/Supplement
    	
31
    
	
 
    	
SECTION 6.2
    	
Termination
    	
32
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VII.
    	
MISCELLANEOUS
    	
33
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SECTION 7.1
    	
Counterparts
    	
33
    
	
 
    	
SECTION 7.2
    	
No Third-Party   Beneficiaries
    	
34
    
	
 
    	
SECTION 7.3
    	
Severability
    	
34
    
	
 
    	
SECTION 7.4
    	
Holders and Beneficial   Owners as Parties; Binding Effect
    	
34
    
	
 
    	
SECTION 7.5
    	
Notices
    	
34
    
	
 
    	
SECTION 7.6
    	
Governing Law and Jurisdiction
    	
35
    

 

63

 

	
 
    	
SECTION 7.7
    	
Assignment
    	
37
    
	
 
    	
SECTION 7.8
    	
Agents
    	
37
    
	
 
    	
SECTION 7.9
    	
Affiliates etc.
    	
37
    
	
 
    	
SECTION 7.10
    	
Exclusivity
    	
37
    
	
 
    	
SECTION 7.11
    	
Compliance with U.S.   Securities Laws
    	
37
    
	
 
    	
SECTION 7.12
    	
Titles
    	
38
    
	
 
    	
 
    	
 
    	
 
    
	
EXHIBIT A
    	
 
    	
 
    	
40
    
	
EXHIBIT B
    	
 
    	
 
    	
49
    

 

64

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