Document:

viot-ex43_6.htm

 

Exhibit 4.3

DEPOSIT AGREEMENT

by and among

Viomi technology co., ltd

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 September 24, 2018

	
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DEPOSIT AGREEMENT

DEPOSIT AGREEMENT, dated as of September 24, 2018, by and among (i) Viomi Technology Co., Ltd, a company incorporated in the Cayman Islands, with its principal executive office at Wansheng Square, Rm 1302 Tower C, Xingang East Round, Haizhu District, Guangzhou, Guangdong, 510220, People’s Republic of China and its registered office at NovaSage Incorporations (Cayman) Limited, Floor 4, Willow House, Cricket Square, P.O. Box 2582, Grand Cayman KY 1-1103, 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. 

 

	
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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 three Shares, 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 Viomi Technology Co., Ltd, 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 

 

	
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hereof as a successor or an additional custodian or custodians hereunder, as the context shall require.  The term “Custodian” shall mean all custodians, collectively.

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.

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 

 

	
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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.

SECTION 1.37“Shares” shall mean Class A ordinary shares in registered form of the Company, par value $0.00001 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 

 

	
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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 2.1Appointment 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 2.2Form 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.

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 

 

	
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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.

SECTION 2.3Deposits.  

(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 

 

	
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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.

(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.

 

	
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(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 2.4Execution 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 2.5Transfer 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.

(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.

 

	
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(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 2.6Surrender 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 7.10 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 2.7Limitations 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.

(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 

 

	
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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 2.8Lost 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 2.9Cancellation 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 2.10Maintenance 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.

ARTICLE III.

CERTAIN OBLIGATIONS OF HOLDERS
AND BENEFICIAL OWNERS OF RECEIPTS

SECTION 3.1Proofs, 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 

 

	
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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 7.10 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 3.2Liability 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 7.10 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.

SECTION 3.3Representations 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 

 

	
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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 3.4Compliance 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.

ARTICLE IV.

THE DEPOSITED SECURITIES

SECTION 4.1Cash 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 

 

	
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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 4.2Distribution 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 

 

	
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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.

SECTION 4.3Elective 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 4.4Distribution 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 

 

	
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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).

(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 

 

	
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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.

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 4.5Distributions 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 

 

	
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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.

SECTION 4.6Conversion 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.

SECTION 4.7Fixing 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 

 

	
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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 4.8Voting 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.

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 

 

	
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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 4.9Changes 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 4.10Available 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 4.11Reports.  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.  

 

	
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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.

SECTION 4.12List 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 4.13Taxation; 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 

 

	
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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.

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 5.1Maintenance 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 5.2Exoneration.  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 5.3Standard 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 5.4Resignation 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 

 

	
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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 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 5.5The 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 

 

	
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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.

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 5.6Notices 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 

 

	
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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.

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 5.7Issuance 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.

 

	
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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).

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 5.8Indemnification.  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 

 

	
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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 5.9Fees 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.

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); and

(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.

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 Clause 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 5.10Restricted 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.

 

	
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ARTICLE VI.

AMENDMENT AND TERMINATION

SECTION 6.1Amendment/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.

SECTION 6.2Termination.  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 

 

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

SECTION 7.2No 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 7.3Severability.  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 7.4Holders 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 7.5Notices.  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, 

 

	
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addressed to Viomi Technology Co., Ltd, Wansheng Square Rm 1302 Tower C, Xingang East Road, Haizhu District, Guangzhou, Guangdong, 510220, People’s Republic of China, Attention: Chief Executive Officer 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.

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 7.6Governing 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 C T Corporation System, (the “Process Agent”), now at 111 Eighth Avenue, 13th Floor, New York NY 10011, 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 

 

	
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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. 

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 

 

	
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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.

SECTION 7.7Assignment.  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 7.8Agents.  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 7.9Affiliates 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 

 

	
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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 7.10Exclusivity.  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 7.11Compliance with U.S. Securities Laws.  Notwithstanding anything in this Deposit Agreement to the contrary, the withdrawal or Delivery of Deposited Securities will not be suspended by the Company or the Depositary except as would be permitted by Instruction I.A.(1) of the General Instructions to Form F‐6 Registration Statement, as amended from time to time, under the Securities Act.

SECTION 7.12Titles.  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, Viomi Technology Co., Ltd 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.

 

	
VIOMI TECHNOLOGY CO., LTD

	
 
	
 

	
By:
	
/s/ Xiaoping Chen

	
 
	
Name: Xiaoping Chen

	
 
	
Title: Chairman of the Board of Directors

	
 
	
 

	
DEUTSCHE BANK TRUST COMPANY AMERICAS

	
 

	
By:
	
/s/ Michael Fitzpatrick

	
 
	
Name: Michael Fitzpatrick

	
 
	
Title: Vice President

	
 
	
 

	
By:
	
/s/ Rohan Bridgett

	
 
	
Name: Rohan Bridgett

	
 
	
Title: Vice President

 

 

	
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EXHIBIT A

							
	
 
	
 
	
CUSIP:
	
92762J 103
	
	
 
	
 
	
ISIN:
	
US92762J1034
	
	
 
	
American Depositary Shares (Each
	
 
	
 

	
 
	
American Depositary Share
	
 
	
 

	
 
	
representing three
	
 
	
 

	
 
	
Fully Paid Class A Ordinary Shares)
	
 
	
 

	
 
	
 
	
 
	
 

 

 [FORM OF FACE OF RECEIPT]

AMERICAN DEPOSITARY RECEIPT

for

AMERICAN DEPOSITARY SHARES

representing

DEPOSITED CLASS A ORDINARY SHARES

of

VIOMI TECHNOLOGY CO., LTD

(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 Class A ordinary shares, each of Par Value of U.S. $0.00001 including evidence of rights to receive such Class A ordinary shares (the “Shares”) of Viomi Technology Co., Ltd, 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 three 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 September 24, 2018 (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 

 

	
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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.

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 7.10 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.

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 

 

	
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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 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 

 

	
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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.

(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 

 

	
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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. 

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, subject as provided below and every Holder and Beneficial Owner agrees, subject as provided below, 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 

 

	
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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.

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 

 

	
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than cash dividends) and/or cash proceeds, including proceeds from the sale of rights, securities and other entitlements;

(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.

 

	
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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.

(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 

 

	
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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.

 

					
	
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 

 

	
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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.

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 

 

	
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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.

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 

 

	
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(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.

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 

 

	
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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.

(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 

 

	
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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, 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 

 

	
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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.

(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.

(18)Standard of Care.  The Company and the Depositary and their respective directors, officers, Affiliates, employees and agents (including without limitation, the Agents) 

 

	
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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 

 

	
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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..

(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 

 

	
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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.

(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 

 

	
Confidential
	
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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).

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.

(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 

 

	
Confidential
	
59
	
 

 

102359504v1

 

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). 

 

	
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102359504v1

 

(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

________________________

 

 

	
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102359504v1

 

 

	
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”
	
3

	
 
	
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)”
	
 

	
 
	
SECTION
	
1.29 
	
“Registrar”
	
4

	
 
	
SECTION
	
1.30 
	
“Restricted Securities”
	
4

	
 
	
SECTION
	
1.31 
	
“Securities Act”
	
4

	
 
	
SECTION
	
1.32 
	
“Share(s)”
	
4

	
 
	
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
	
6

	
 
	
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

 

	
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102359504v1

 

	
 
	
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
	
11

	
 
	
 
	
 
	
 
	
 

	
 
	
SECTION
	
3.1 
	
Proofs, Certificates and Other Information
	
11

	
 
	
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
	
16

	
 
	
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
	
22

	
 
	
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
	
27

	
 
	
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
	
30

	
 
	
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
	
34

	
 
	
 
	
 
	
 
	
 

	
 
	
SECTION
	
7.1 
	
Counterparts
	
34

	
 
	
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

 

	
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63
	
 

 

102359504v1

 

	
 
	
SECTION
	
7.6 
	
Governing Law and Jurisdiction
	
35

	
 
	
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
	
38

	
 
	
SECTION
	
7.12 
	
Titles
	
38

	
 
	
 

	
EXHIBIT A
	
40

	
EXHIBIT B
	
49

 

 

	
Confidential
	
64
	
 

 

102359504v1SHEPHERD’S
FINANCE, LLC

 

FIXED
RATE SUBORDINATED NOTES

 

 

 

INDENTURE

 

DATED
AS OF MARCH 22, 2019

 

 

 

U.S.
BANK NATIONAL ASSOCIATION

 

AS

 

TRUSTEE

 

    	 	 	 

     

    

 

CROSS-REFERENCE
TABLE

 

	Trust
    Indenture	Indenture
	Act
    Section	Section
	 	 
	310	(a)(1)	7.10
	 	(a)(2).	7.10
	 	(a)(3)	N.A.
	 	(a)(4)	N.A.
	 	(b)	7.8;
    7.10; 11.2
	 	(c)	N.A.
	311	(a)	7.11
	 	(b)	7.11
	 	(c)	N.A.
	312	(a)	2.6
	 	(b)	11.3
	 	(c)	11.3
	313	(a)	7.6
	 	(b)(1)	N.A.
	 	(b)(2)	7.6
	 	(c)	11.2
	 	(d)	7.6
	314	(a)	4.2;
    11.2
	 	(b)	N.A.
	 	(c)(1)	11.4
	 	(c)(2)	11.4
	 	(c)(3)	N.A.
	 	(d)	N.A.
	 	(e)	11.5
	 	(f)	4.3
	315	(a)	7.1(b)
	 	(b)	7.5;
    11.2
	 	(c)	7.1(a)
	 	(d)	7.1(c)
	 	(e)	6.11
	316	(a)(last
    sentence)	2.10
	 	(a)(1)(A)	6.5
	 	(a)(1)(B)	6.4
	 	(a)(2)	N.A.
	 	(b)	6.7
	317	(a)(1)	6.8
	 	(a)(2)	6.9
	 	(b)	2.5
	318	(a)	11.1

 

N.A.
means not applicable.

*
This Cross-Reference Table is not part of the Indenture.

 

    	 	i	 

     

    

 

TABLE
OF CONTENTS

 

	ARTICLE
    1 DEFINITIONS AND INCORPORATION BY REFERENCE	1
	 	 
	Section
    1.1.	Definitions.	1
	 	 	 
	Section
    1.2.	Other
    Definitions.	3
	 	 	 
	Section
    1.3.	Incorporation
    by Reference of TIA.	3
	 	 	 
	Section
    1.4.	Rules
    of Construction.	3
	 	 	 
	ARTICLE
    2 THE NOTES	4
	 	 
	Section
    2.1.	Form
    and Dating.	4
	 	 	 
	Section
    2.2.	Terms.	4
	 	 	 
	Section
    2.3.	Execution.	4
	 	 	 
	Section
    2.4.	Registrar
    and Paying Agent.	5
	 	 	 
	Section
    2.5.	Paying
    Agent to Hold Money in Trust.	5
	 	 	 
	Section
    2.6.	Certificateholder
    Lists.	5
	 	 	 
	Section
    2.7.	Transfer
    and Exchange.	5
	 	 	 
	Section
    2.8.	Replacement
    Notes.	6
	 	 	 
	Section
    2.9.	Outstanding
    Notes.	6
	 	 	 
	Section
    2.10.	Treasury
    Notes.	6
	 	 	 
	Section
    2.11.	Cancellation.	7
	 	 	 
	ARTICLE
    3 REDEMPTION	7
	 	 
	Section
    3.1.	Applicability
    of Article.	7
	 	 	 
	Section
    3.2.	Notices
    to Trustee.	7
	 	 	 
	Section
    3.3.	Selection
    of Notes to be Redeemed.	7
	 	 	 
	Section
    3.4.	Notice
    of Redemption.	7
	 	 	 
	Section
    3.5.	Effect
    of Notice of Redemption.	8
	 	 	 
	Section
    3.6.	Deposit
    of Redemption Price.	8
	 	 	 
	Section
    3.7.	Notes
    Redeemed in Part.	8

 

    	 	ii	 

     

    

 

	Section
    3.8.	Redemption
    Option Upon Death of Holder.	8
	 	 	 
	Section
    3.9.	Redemption
    Option at Request of Holder.	9
	 	 	 
	ARTICLE
    4 COVENANTS	9
	 	 
	Section
    4.1.	Payment
    of Notes.	9
	 	 	 
	Section
    4.2.	SEC
    Reports.	10
	 	 	 
	Section
    4.3.	Compliance
    Certificate.	10
	 	 	 
	Section
    4.4.	Usury
    Laws.	10
	 	 	 
	Section
    4.5.	Money
    for Note Payments to be Held in Trust.	11
	 	 	 
	Section
    4.6.	Continued
    Existence.	11
	 	 	 
	ARTICLE
    5 SUCCESSORS	12
	 	 
	ARTICLE
    6 DEFAULTS AND REMEDIES	12
	 	 
	Section
    6.1.	Events
    of Default.	12
	 	 	 
	Section
    6.2.	Acceleration.	13
	 	 	 
	Section
    6.3.	Other
    Remedies.	13
	 	 	 
	Section
    6.4.	Waiver
    of Past Defaults.	14
	 	 	 
	Section
    6.5.	Control
    by Majority.	14
	 	 	 
	Section
    6.6.	Limitation
    on Suits.	14
	 	 	 
	Section
    6.7.	Rights
    of Holders to Receive Payment.	15
	 	 	 
	Section
    6.8.	Collection
    Suit by Trustee.	15
	 	 	 
	Section
    6.9.	Trustee
    May File Proofs of Claim.	15
	 	 	 
	Section
    6.10.	Priorities.	15
	 	 	 
	Section
    6.11.	Undertaking
    for Costs.	16
	 	 	 
	ARTICLE
    7 TRUSTEE	16
	 	 
	Section
    7.1.	Duties
    of Trustee.	16
	 	 	 
	Section
    7.2.	Rights
    of Trustee.	17

 

    	 	iii	 

     

    

 

	Section
    7.3.	Individual
    Rights of Trustee.	18
	 	 	 
	Section
    7.4.	Trustee’s
    Disclaimer.	18
	 	 	 
	Section
    7.5.	Notice
    of Defaults.	19
	 	 	 
	Section
    7.6.	Reports
    by Trustee to Holders.	19
	 	 	 
	Section
    7.7.	Compensation
    and Indemnity.	19
	 	 	 
	Section
    7.8.	Replacement
    of Trustee.	20
	 	 	 
	Section
    7.9.	Successor
    Trustee by Merger, Etc.	21
	 	 	 
	Section
    7.10.	Eligibility;
    Disqualification.	21
	 	 	 
	Section
    7.11.	Preferential
    Collection of Claims Against Company.	21
	 	 	 
	ARTICLE
    8 DISCHARGE OF INDENTURE; DEFEASANCE	21
	 	 
	Section
    8.1.	Termination
    of Company’s Obligations.	21
	 	 	 
	Section
    8.2.	Legal
    Defeasance and Covenant Defeasance.	22
	 	 	 
	Section
    8.3.	Conditions
    to Legal Defeasance or Covenant Defeasance.	23
	 	 	 
	Section
    8.4.	Application
    of Trust Money.	24
	 	 	 
	Section
    8.5.	Repayment
    to the Company.	24
	 	 	 
	ARTICLE
    9 AMENDMENTS	25
	 	 
	Section
    9.1.	Without
    Consent of Holders.	25
	 	 	 
	Section
    9.2.	With
    Consent of Holders.	25
	 	 	 
	Section
    9.3.	Compliance
    with Trust Indenture Act.	26
	 	 	 
	Section
    9.4.	Revocation
    and Effect of Consents.	26
	 	 	 
	Section
    9.5.	Notation
    on or Exchange of Notes.	26
	 	 	 
	Section
    9.6.	Trustee
    Protected.	26
	 	 	 
	ARTICLE
    10 SUBORDINATION	27
	 	 
	Section
    10.1.	Agreement
    to Subordinate.	27
	 	 	 
	Section
    10.2.	Certain
    Definitions.	27
	 	 	 
	Section
    10.3.	Liquidation;
    Dissolution; Bankruptcy.	27

 

    	 	iv	 

     

    

 

	Section
    10.4.	Default
    on Senior Debt.	28
	 	 	 
	Section
    10.5.	Acceleration
    of Notes.	28
	 	 	 
	Section
    10.6.	When
    Distribution Must Be Paid Over.	28
	 	 	 
	Section
    10.7.	Notice
    by Company.	29
	 	 	 
	Section
    10.8.	Subrogation.	29
	 	 	 
	Section
    10.9.	Relative
    Rights.	29
	 	 	 
	Section
    10.10.	Subordination
    may not be Impaired by Company.	30
	 	 	 
	Section
    10.11.	Distribution
    or Notice to Representative.	30
	 	 	 
	Section
    10.12.	Rights
    of Trustee and Paying Agent.	30
	 	 	 
	Section
    10.13.	Trust
    Moneys Not Subordinated.	30
	 	 	 
	Section
    10.14.	Trustee
    Not Fiduciary for Holders of Senior Debt.	30
	 	 	 
	ARTICLE
    11 MISCELLANEOUS	31
	 	 
	Section
    11.1.	TIA
    Controls.	31
	 	 	 
	Section
    11.2.	Notices.	31
	 	 	 
	Section
    11.3.	Communication
    by Holders With Other Holders.	31
	 	 	 
	Section
    11.4.	Certificate
    and Opinion as to Conditions Precedent.	31
	 	 	 
	Section
    11.5.	Statements
    Required in Certificate or Opinion.	32
	 	 	 
	Section
    11.6.	Rules
    by Trustee and Agents.	32
	 	 	 
	Section
    11.7.	Legal
    Holidays.	32
	 	 	 
	Section
    11.8.	No
    Recourse Against Others.	32
	 	 	 
	Section
    11.9.	Duplicate
    Originals.	32
	 	 	 
	Section
    11.10.	Variable
    Provisions.	33
	 	 	 
	Section
    11.11.	Governing
    Law.	33
	 	 	 
	Section
    11.12.	No
    Adverse Interpretation of Other Agreements.	33
	 	 	 
	Section
    11.13.	Successors.	33
	 	 	 
	Section
    11.14.	Severability.	33

 

    	 	v	 

     

    

 

INDENTURE
dated as of March 22, 2019, between Shepherd’s Finance, LLC, a Delaware limited liability company (“Company”),
and U.S. Bank National Association, a national banking association (“Trustee”).

 

Each
party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Company’s
Fixed Rate Subordinated Notes:

 

ARTICLE
1

 

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

Section
1.1. Definitions.

 

“Affiliate”
means any person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company.

 

“Agent”
means any Registrar, Paying Agent, or co-registrar.

 

“Board
of Managers” means the Board of Managers of the Company or any authorized committee of the Board of Managers.

 

“Company”
means the party named as such above until a successor replaces it and thereafter means the successor or any other obligor with
respect to the Notes.

 

“Company
Order” means an order signed in the name of the Company by its Chief Executive Officer, President, a Vice President,
its Treasurer, or Secretary, and delivered to the Trustee.

 

“Corporate
Trust Office” shall be at the address of the Trustee specified in Section 12.02 or such other address as to which the
Trustee may give notice to the Company.

 

“Date
of Issue” means the date that the Company receives proper documentation and the funds for the purchase of a Note if
such funds are received prior to 3:00 p.m. on a business day or the next business day if the Company receives such funds on a
non-business day or on or after 3:00 p.m. on a business day. For this purpose, the Company’s business days will be deemed
to be Monday through Friday, except on Florida legal holidays.

 

“Default”
means any event which is, or after notice or passage of time would be, an Event of Default.

 

“Holder”
or “Certificateholder” means a Person in whose name a Note is registered on the Registrar’s books.

 

“Indenture”
means this Indenture as amended or supplemented from time to time.

 

“Material
Subsidiary” means any majority-owned subsidiary of the Company that is material to the business of the Company, taken
as a whole.

 

    	 	1	 

     

    

 

“Notes”
means the Fixed Rate Subordinated Notes described herein issued under this Indenture.

 

“Officer”
means the principal executive officer, principal financial officer or principal accounting officer of the Company.

 

“Officer’s
Certificate” means a certificate signed by an Officer.

 

“Opinion
of Counsel” means a written opinion from legal counsel who is acceptable to the Trustee. The counsel may be an employee
of or counsel to the Company or the Trustee.

 

“Person”
means any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization,
or government or any agency or political subdivision thereof.

 

“Principal”
of a debt security means the principal of the security plus the premium, if any, on the security.

 

“Responsible
Officer” means, with respect to the Trustee, any officer of the Trustee assigned to the Corporate Trust Department (or
any successor division or unit) of the Trustee located at the Corporate Trust Office of the Trustee, who shall have direct responsibility
for the administration of this Indenture, and for the purposes of Section 7.1 and Section 7.5 shall also include any other officer
of the Trustee’s to whom any corporate trust matter is referred because of such officer’s knowledge of and familiarity
with the particular subject and who shall have direct responsibility for the administration of this Indenture.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“Stated
Maturity” means, when used with respect to a Note, the date specified in such Note as the fixed date on which the principal
of such Note and any accrued but unpaid interest is due and payable.

 

“Subsidiary”
means any person of which at least a majority of capital stock having ordinary voting power for the election of directors or other
governing body of such person is owned by the Company directly or through one or more subsidiaries.

 

“TIA”
means the Trust Indenture Act of 1939 (15 U.S. Code 77aaa-77bbbb), as the same may be amended from time to time.

 

“Trustee”
means the party named as such above until a successor replaces it and thereafter means the successor.

 

    	 	2	 

     

    

 

Section
1.2. Other Definitions.

 

	Term	 	Defined
                                         in

        Section

	 	 	 
	“Bankruptcy
    Law”	 	6.1
	“Covenant
    Defeasance”	 	8.2(c)
	“Custodian”	 	6.1
	“Debt”	 	10.2
	“Event
    of Default”	 	6.1
	“Interest
    Payment Date”	 	2.2(b)
	“Legal
    Defeasance”	 	8.2(b)
	“Legal
    Holiday”	 	11.7
	“Officer”	 	11.10
	“Paying
    Agent”	 	2.4
	“Registrar”	 	2.4
	“Representative”	 	10.2
	“Senior
    Debt”	 	10.2
	“U.S.
    Government Obligations”	 	8.1

 

Section
1.3. Incorporation by Reference of TIA.

 

Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture.

 

The
following TIA terms used in this Indenture have the following meanings:

 

“Indenture
Securities” means the Notes;

 

“Indenture
Security Holder” means a Certificateholder;

 

“Indenture
to be Qualified” means this Indenture;

 

“Indenture
Trustee” or “Institutional Trustee” means the Trustee; and

 

“Obligor”
on the Notes means the Company.

 

All
other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute, or defined by SEC
rule under the TIA have the meanings assigned to them.

 

Section
1.4. Rules of Construction.

 

Unless
the context otherwise requires:

 

	 	(a)
    	a
    term has the meaning assigned to it;
	 	 	 
	 	(b)
    	an
    accounting term not otherwise defined has the meaning assigned to it in accordance with United States generally accepted accounting
    principles in effect on the date of execution of this Indenture;
	 	 	 
	 	(c)
    	“or”
    is not exclusive;
	 	 	 
	 	(d)
    	words
    in the singular include the plural, and in the plural include the singular; and
	 	 	 
	 	(e)
    	provisions
    apply to successive events and transactions.

 

    	 	3	 

     

    

 

ARTICLE
2

 

THE
NOTES

 

Section
2.1. Form and Dating.

 

The
Notes shall be substantially in the form of EXHIBIT A, with such appropriate insertions, omissions, substitutions, and
other variations required or permitted by this Indenture. The Notes may have notations, legends, or endorsements required by law,
stock exchange rule, or usage, and may be issued in uncertificated or certificated form. If issued in uncertificated form, the
Company shall deliver a written or electronic confirmation of the terms of a Note to the Certificateholder thereof.

 

Section
2.2. Terms.

 

(a)
Amount Unlimited; Terms. The aggregate principal amount of Notes which may be delivered under this Indenture is unlimited.
Notes may be issued in one or more series. The initial aggregate principal amount of the Notes to be delivered under this Indenture
shall be $70,000,000. The aggregate principal amount may be increased, without the need for approval of any Holders or the Trustee
by means of Company Order, as set forth in Section 9.1.

 

(b)
Interest. Interest will be calculated based on the actual number of days the Note is outstanding based on a 365/366 day
year. Interest will be earned daily and payable monthly or at maturity at the Holder’s request. If the Holder elects to
receive interest at maturity rather than monthly, interest will be compounded monthly. If any payment of the Note is due on a
Legal Holiday, then the Holder will not be entitled to payment of the amount due until the following day that is not a Legal Holiday,
and no interest will be due as a result of such delay. If the Holder elects to receive interest monthly, interest will be paid
on the first business day (not a Legal Holiday) of every month (each an “Interest Payment Date”). The first
Interest Payment Date will be the month following the month of the Date of Issue, except that if a Note is issued within the last
10 days preceding an Interest Payment Date, the first interest payment will be made on the next succeeding Interest Payment Date.
No payments of interest under fifty dollars will be made, with any interest payment under fifty dollars accruing and earning interest
on a monthly compounding basis until the payment due is at least fifty dollars on an Interest Payment Date.

 

(c)
Subordination. The Notes shall be subordinated and junior in right of payment to all Senior Debt of the Company as provided
in Article 10.

 

Section
2.3. Execution.

 

If
the Company, pursuant to Section 9.1, provides for certificated Notes, one Officer shall sign the Notes for the Company by manual
or facsimile signature.

 

    	 	4	 

     

    

 

If
an Officer whose signature is on a Note no longer holds that office at the time the Note is delivered, the Note shall nevertheless
be valid.

 

Section
2.4. Registrar and Paying Agent.

 

The
Company shall maintain an office or agency where Certificateholders may request registration of transfer or exchange of Notes
(“Registrar”) and an office or agency where Certificateholders may demand payment of Notes (“Paying
Agent”). The Registrar shall keep a register of the Notes and of their transfer and exchange. The Company may appoint
one or more co-registrars and one or more additional paying agents. The Company may change any Paying Agent, Registrar, or co-registrar
without notice to any Certificateholder. The term “Paying Agent” includes any additional paying agent. The
Company shall notify the Trustee of the name and address of any agent not a party to this Indenture. The Company or any of its
Subsidiaries may act as Paying Agent or Registrar. The Company initially appoints itself as Paying Agent and Registrar.

 

Section
2.5. Paying Agent to Hold Money in Trust.

 

The
Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust for
the benefit of Certificateholders or the Trustee all money held by the Paying Agent for the payment of principal or interest on
the Notes, and will notify the Trustee of any failure by the Company in making any such payment. While any such failure continues,
the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent shall have no further liability
for the money. If the Company acts as Paying Agent, it shall segregate and hold in a separate bank account for the benefit of
the Certificateholders all money held by it as Paying Agent. The Paying Agent may charge for its expenses in issuing a replacement
interest check.

 

Section
2.6. Certificateholder Lists.

 

The
Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and
addresses of Certificateholders. If the Trustee is not the Registrar, then the Company shall timely furnish to the Trustee the
changes in this list and will furnish an updated list of the names and addresses of Certificateholders in such form and as of
such date and at such other times as the Trustee may request in writing.

 

Section
2.7. Transfer and Exchange.

 

Upon
a request to the Registrar or a co-registrar to register, transfer or to exchange Notes for an equal principal amount of Notes,
the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met. To permit registrations
of transfer and exchanges, the Company shall issue Notes at the Registrar’s request. The Company may charge for its expenses
in transferring or exchanging a Note.

 

The
Company shall not be required (i) to issue, transfer, or exchange any Note during a period beginning at the opening of business
15 days before the day of the mailing of a notice of redemption of Notes selected for redemption pursuant to Section 3.3 and ending
at the close of business on the date of such redemption, or (ii) to transfer or exchange any Note selected for redemption in whole
or in part.

 

    	 	5	 

     

    

 

Each
Holder of a Note agrees to indemnify the Company and the Trustee against any liability that may result from the transfer, exchange,
or assignment of such Holder’s Note in violation of any provision of this Indenture and/or applicable United States Federal
or state securities law.

 

To
the extent that the Trustee elects to or somehow is deemed to be acting as the Registrar or Paying Agent, the Trustee shall have
no obligation or duty to monitor, determine, or inquire as to compliance with any restrictions on transfer imposed under this
Indenture or under applicable law with respect to any transfer of any interest in any Note other than to require delivery of such
certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by
the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements
hereof.

 

Neither
the Trustee nor any agent of the Trustee shall have any responsibility for any actions taken or not taken by the Registrar.

 

Section
2.8. Replacement Notes.

 

If
the Company, pursuant to Section 9.1, provides for certificated Notes, and if the Holder of a Note claims that the Note has been
lost, destroyed, or wrongfully taken, then the Company shall issue a replacement Note if the Trustee’s requirements are
met. If required by the Trustee or the Company, an indemnity bond must be sufficient in the judgment of both the Company and the
Trustee to protect the Company, the Trustee, or any Agent from any loss which any of them may suffer if a Note is replaced. The
Company may charge for its expenses in replacing a Note.

 

Every
replacement Note is an additional obligation of the Company and shall be entitled to all of the benefits of this Indenture equally
and proportionately with all other Notes duly issued hereunder.

 

Section
2.9. Outstanding Notes.

 

The
Notes outstanding at any time are all of the Notes delivered by the Company pursuant to this Indenture except for those canceled
by it, those delivered to it for cancellation, and those described in this Section as not outstanding.

 

If
a Note is replaced pursuant to Section 2.8, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that
the replaced Note is held by a bona fide purchaser.

 

If
Notes are considered paid under Section 4.1, they cease to be outstanding and interest on them ceases to accrue.

 

Section
2.10. Treasury Notes.

 

In
determining whether the Holders of the required principal amount of the Notes have concurred in any direction, waiver, or consent,
Notes owned by the Company or an Affiliate shall be disregarded, except that for the purposes of determining whether the Trustee
shall be protected in relying on any such direction, waiver, or consent, only Notes which a Responsible Officer of the Trustee
actually knows are so owned shall be so disregarded.

 

    	 	6	 

     

    

 

Section
2.11. Cancellation.

 

The
Company at any time may request that the Registrar cancel any Note. The Registrar shall cancel all Notes surrendered for registration
of transfer, exchange, payment, replacement, or cancellation and shall destroy canceled Notes (subject to any applicable record
retention requirements). The Company may not issue new Notes to replace Notes that it has paid or that have been delivered to
the Registrar for cancellation.

 

ARTICLE
3

 

REDEMPTION

 

Section
3.1. Applicability of Article.

 

Redemption
of Notes at the election of the Company, as permitted or required by any provision of this Indenture, shall be made in accordance
with such provision and this Article.

 

Section
3.2. Notices to Trustee.

 

If
the Company wants to redeem the Notes pursuant to paragraph 2 of the Notes, it shall notify the Trustee by Officer’s Certificate
of the redemption date and the principal amount of Notes to be redeemed. The Company shall give each notice provided for in this
Section at least fifty (50) days before the redemption date (unless a shorter notice period shall be satisfactory to the Trustee).

 

Section
3.3. Selection of Notes to be Redeemed.

 

If
fewer than all the Notes are to be redeemed, the Company shall select the Notes to be redeemed, and so inform the Trustee by Officer’s
Certificate, subject to the remainder of this Section. If less than all of a grouping of Notes, as specified by Officer’s
Certificate, are to be redeemed, the portion thereof selected for redemption shall be determined ratably or by lot. If fewer than
all of such grouping of Notes as specified by Officer’s Certificate are to be redeemed, the Trustee shall then make the
selection not more than fifty (50) days before the redemption date from Notes outstanding not previously called for redemption.
Provisions of this Indenture that apply to Notes called for redemption also apply to portions of Notes called for redemption.

 

Section
3.4. Notice of Redemption.

 

At
least thirty (30) days but not more than sixty (60) days before a redemption date, the Company shall mail a notice of redemption
by first-class mail to each Holder of Notes whose Notes are to be redeemed.

 

    	 	7	 

     

    

 

The
notice shall identify the Notes to be redeemed and shall state:

 

	 	(a)
    	the
    redemption date;
	 	 	 
	 	(b)
    	the
    redemption price, which shall be equal to 100% of the principal amount of the Note, plus accrued interest on a daily basis
    to the redemption date;
	 	 	 
	 	(c)
    	the
    name and address of the Paying Agent;
	 	 	 
	 	(d)
    	that
    certificated Notes called for redemption must be surrendered to the Paying Agent to collect the redemption price; and
	 	 	 
	 	(e)
    	that
    interest on Notes called for redemption ceases to accrue on and after the redemption date.

 

At
the Company’s request, the Trustee, if it is then the Registrar, shall give the notice of redemption in the Company’s
name and at its expense; provided, however, that the Company shall have provided to the Trustee, at least 45 days prior to the
Redemption Date (unless a shorter notice period shall be satisfactory to the Trustee), the information required by clauses (a)
through (e) above.

 

Section
3.5. Effect of Notice of Redemption.

 

Once
notice of redemption is mailed, Notes called for redemption become due and payable on the redemption date at the redemption price.

 

Section
3.6. Deposit of Redemption Price.

 

On
or before the redemption date, the Company shall deposit with the Paying Agent, or if the Company is acting as Paying Agent it
shall deposit into a separate bank account pursuant to Section 2.5 hereof, money sufficient to pay the redemption price of and
accrued interest on all Notes to be redeemed on that date.

 

Section
3.7. Notes Redeemed in Part.

 

Upon
redemption of a certificated Note in part, the Company shall issue for the Holder a new Note equal in principal amount to the
unredeemed portion of the partially-redeemed Note.

 

Section
3.8. Redemption Option Upon Death of Holder.

 

(a)
Subject to the provisions of Article 10 and this Article 3, upon the death of any Holder of one or more Notes, the Company shall
be required to redeem Notes held by a Holder of such Notes at the date of such Holder’s death, as requested in the manner,
and subject to the limitations, set forth below. The redemption price shall be equal to 100% of the principal amount of the Note
plus accrued interest on a daily basis to the redemption date. Redemption of such Notes shall be made as soon as reasonably possible,
based on the Company’s then current cash position and needs, but generally within two weeks following the receipt by the
Company or the Trustee of all of the following:

 

	 	(1)
    	a
    written request for redemption of the Notes signed by a duly authorized representative of the Holder, which request shall
    set forth the name of the Holder, the date of death of the Holder and the principal amount of the Notes to be redeemed;

 

    	 	8	 

     

    

 

	 	(2)
    	the
    Notes to be redeemed (if certificated); and
	 	 	 
	 	(3)
    	evidence
    satisfactory to the Company of the death of such Holder and the authority of the representative to such extent as may be required
    by the Company.

 

(b)
The Notes held by the Holder shall not be entitled to redemption pursuant to this Section unless the Notes to be redeemed have
been registered in the Holder’s name since their Date of Issue.

 

(c)
Authorized representatives of a Holder shall include the following: executors, administrators, or other legal representatives
of an estate; trustees of a trust; joint owners of Notes owned in joint tenancy or tenancy by the entirety; attorneys-in-fact;
and other persons generally recognized as having legal authority to act on behalf of another.

 

Section
3.9. Redemption Option at Request of Holder.

 

Beginning
180 days after the issuance date, at the written request of the Holder delivered to the Company at any time, the Company may,
at its option and subject to the restrictions in Article 10 below, but shall not be required to, redeem the Note for a redemption
price equal to the principal amount plus an amount equal to the unpaid interest thereon for the Note, as adjusted, at the stated
rate to the redemption date minus an amount equal to the interest that would be payable thereon at the rate stated above over
the last 180 days immediately prior to the redemption date.

 

ARTICLE
4

 

COVENANTS

 

Section
4.1. Payment of Notes.

 

The
Company shall pay or cause to be paid the principal of and interest on the Notes on the dates and in the manner provided in the
Notes. Principal and interest shall be considered paid on the date due if the Paying Agent, if other than the Company or a Subsidiary,
holds as of 10:00 a.m. Eastern Time on the due date money deposited by the Company in immediately available funds and designated
for and sufficient to pay all principal and interest then due.

 

    	 	9	 

     

    

 

Section
4.2. SEC Reports.

 

The
Company shall file with the Trustee within fifteen (15) days after it files them with the SEC copies of the annual reports and
quarterly reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as
the SEC may by rules and regulations prescribe) for the Notes which the Company may be required to file with the SEC pursuant
to Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The
Company also shall comply with the other provisions of TIA Section 314(a).

 

Whether
or not the Company is subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange Act, to the extent
not prohibited by the Exchange Act, the Company will make available to the Holders of the Notes without cost to any Holder, the
information, documents, and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations
prescribe) that are specified in Sections 13 and 15(d) of the Exchange Act within the time periods specified therein.

 

The
Company shall be deemed to have furnished such reports to the Holders of the Notes if it has filed such reports with the SEC using
the EDGAR filing system or placed such reports on the Company’s website and made them publicly available.

 

Section
4.3. Compliance Certificate.

 

(a)
The Company shall deliver to the Trustee, within one hundred twenty (120) days after the end of each fiscal year of the Company,
an Officer’s Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding
fiscal year has been made under the supervision of the signing Officers with a view to determining whether the Company has kept,
observed, performed and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his or her knowledge the Company has kept, observed, performed and fulfilled each and every covenant
contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions
hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he
or she may have knowledge) and that to the best of his or her knowledge no event has occurred and remains in existence by reason
of which payments on account of the principal of or interest, if any, on the Notes are prohibited.

 

(b)
The foregoing notwithstanding, the Company shall, so long as any of the Notes are outstanding, promptly, and in any event within
30 days, deliver to the Trustee, forthwith upon any Officer becoming aware of any Default or Event of Default, an Officer’s
Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect
thereto.

 

Section
4.4. Usury Laws.

 

The
Company will not voluntarily claim and will actively resist any attempts to claim the benefit of any usury laws against the Holders
of the Notes.

 

    	 	10	 

     

    

 

Section
4.5. Money for Note Payments to be Held in Trust.

 

Whenever
the Company shall have one or more Paying Agents, it will, on or prior to each date for the payment of the principal of or interest
on the Notes, deposit with a Paying Agent a sum sufficient to pay the principal and interest so becoming due, such sum to be held
in trust for the benefit of the persons entitled to such payments; and, unless such Paying Agent is the Trustee, the Company will
promptly notify the Trustee of its action or failure so to act.

 

The
Company will cause each Paying Agent other than the Trustee to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will:

 

	 	(a)	hold
    all sums held by it for the payment of the principal of and interest on the Notes in trust for the benefit of the persons
    entitled thereto until such sums shall be paid to such persons or otherwise disposed of as herein provided;
	 	 	 
	 	(b)
    	give
    the Trustee notice of any default by the Company (or any other obligor upon the Notes) in the making of any payment of principal
    and interest; and
	 	 	 
	 	(c)
    	at
    any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee
    all sums so held in trust by such Paying Agent.

 

Subject
to Article 8, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, the Company
may at any time pay, or direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent,
such sums to be held by the Trustee upon the same terms as those upon which such sums were held by the Company or such Paying
Agent; and, upon such payment by the Company or any Paying Agent to the Trustee, the Company or such Paying Agent, as the case
may be, shall be released from all further liability with respect to such money.

 

Section
4.6. Continued Existence.

 

Subject
to Article 5, the Company shall do or cause to be done all things necessary to preserve and keep in full force and effect (i)
its existence as a limited liability company, and the corporate, partnership, or other existence of each of its Material Subsidiaries,
in accordance with the respective organizational documents (as the same may be amended from time to time) of the Company or any
such Material Subsidiary and (ii) the rights (charter and statutory), licenses, and franchises of the Company and its Material
Subsidiaries; provided, however, that the Company shall not be required to preserve any such right, license, or franchise, or
the corporate, partnership, or other existence of any of its Material Subsidiaries, if the Board of Managers of the Company shall
determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Material
Subsidiaries, taken as a whole, and that the loss thereof is not adverse in any material respect to the Holders.

 

    	 	11	 

     

    

 

ARTICLE
5

 

SUCCESSORS

 

The
Company shall not consolidate or merge with or into, or transfer or lease all or substantially all of its assets to, any Person
unless the corporation formed by or surviving any such consolidation or merger (if other than the Company), or to which such sale
or conveyance shall have been made, assumes by supplemental indenture all the obligations of the Company under the Notes then
outstanding and this Indenture.

 

The
Company shall deliver to the Trustee prior to the proposed transaction an Officer’s Certificate to the foregoing effect
and an Opinion of Counsel stating that the proposed transaction and such supplemental indenture comply with this Indenture.

 

The
surviving corporation shall be the successor Company, but the predecessor Company in the case of a transfer or lease shall not
be released from the obligation to pay the principal of and interest on the Notes.

 

ARTICLE
6

 

DEFAULTS
AND REMEDIES

 

Section
6.1. Events of Default.

 

An
“Event Of Default” occurs if:

 

	 	(a)
    	the
    Company defaults in the payment of interest of any Note when the same becomes due and payable and the Default continues for
    a period of thirty (30) days;
	 	 	 
	 	(b)
    	the
    Company defaults in the payment of the principal on any Note when the same becomes due and payable at maturity, upon redemption
    or otherwise, and the Default continues for a period of thirty (30) days;
	 	 	 
	 	(c)
    	the
    Company fails to comply with any of its other agreements or covenants in, or provisions of, the Notes or this Indenture and
    the Default continues for the period and after the notice specified below;
	 	 	 
	 	(d)
    	the
    Company or any material subsidiary pursuant to or within the meaning of any Bankruptcy Law now or hereafter in effect:

 

	 	(1)
    	commences
    a voluntary proceeding under any such Bankruptcy Law;
	 	 	 
	 	(2)
    	consents
    to the entry of an order for relief against it in an involuntary Bankruptcy proceeding;

 

    	 	12	 

     

    

 

	 	(3)
    	consents
    to the appointment of a Custodian of it or for all or substantially all of its property;
	 	 	 
	 	(4)
    	makes
    a general assignment for the benefit of its creditors; or
	 	 	 
	 	(5)
    	generally
    is unable to pay its debts as the same become due;

 

	 	(e)
    a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

	 	(1)
    	is
    for relief against the Company or any material subsidiary in an involuntary Bankruptcy proceeding;
	 	 	 
	 	(2)
    	appoints
    a Custodian of the Company or any material subsidiary or for all or substantially all of its property; or
	 	 	 
	 	(3)
    	orders
    the winding up or liquidation of the Company or any material subsidiary, and the order or decree remains unstayed and in effect
    for 60 days.

 

The
term “Bankruptcy Law” means Title 11 of the United States Code or any similar Federal or State Law for the
relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator, sequestrator, or
similar official under any Bankruptcy Law.

 

A
Default under clause (c) is not an Event of Default until the Trustee or the Holders of at least 25% in principal amount of the
then outstanding Notes notify the Company of the Default and the Company does not cure the Default within sixty (60) days after
receipt of the notice. The notice must specify the Default, demand that it be remedied and state that the notice is a “Notice
of Default.”

 

Section
6.2. Acceleration.

 

If
an Event of Default occurs and is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in principal
amount of the then outstanding Notes, by notice to the Company and the Trustee, may declare the principal of and accrued interest
on all the Notes to be due and payable. Upon such declaration the principal and interest owing on the then outstanding Notes shall
be due and payable immediately. The Holders of a majority in principal amount of the then outstanding Notes, by notice to the
Trustee, may rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and
if all existing Events of Default have been cured or waived, except nonpayment of principal or interest that has become due solely
because of the acceleration.

 

Section
6.3. Other Remedies.

 

If
an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal
and interest on the Notes or to enforce the performance of any provision of the Notes or this Indenture.

 

    	 	13	 

     

    

 

The
Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding.
A delay or omission by the Trustee or any Holder of Notes in exercising any right or remedy accruing upon an Event of Default
shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are cumulative
to the extent permitted by law.

 

Section
6.4. Waiver of Past Defaults.

 

The
Holders of a majority in principal amount of the then outstanding Notes, by notice to the Trustee, may waive an existing Default
or Event of Default and its consequences except a continuing Default or Event of Default in the payment of the principal of and
interest on the Notes.

 

Section
6.5. Control by Majority.

 

The
Holders of not less than a majority in principal amount of the then outstanding Notes may direct the time, method, and place of
conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee. However,
the Trustee may refuse to follow any direction that conflicts with law or this Indenture, is unduly prejudicial to the rights
of other Holders of the Notes, or would involve the Trustee in personal liability.

 

Section
6.6. Limitation on Suits.

 

The
Holder of Notes may pursue a remedy with respect to this Indenture or the Notes only if:

 

	 	(a)
    	the
    Holder gives to the Trustee notice of a continuing Event of Default;
	 	 	 
	 	(b)
    	the
    Holders of at least 25% in principal amount of the then outstanding Notes make a request to the Trustee to pursue the remedy;
	 	 	 
	 	(c)
    	such
    Holder or Holders offer to the Trustee indemnity satisfactory to the Trustee against any loss, liability, or expense;
	 	 	 
	 	(d)
    	the
    Trustee does not comply with the request within sixty (60) days after receipt of the request and the offer of indemnity; and
	 	 	 
	 	(e)
    	during
    such sixty (60)-day period the Holders of a majority of principal amount of the then outstanding Notes do not give the Trustee
    a direction inconsistent with the request.

 

No
Holder will have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect,
disturb, or prejudice the rights of any other of such Holders (it being understood that the Trustee does not have an affirmative
duty to ascertain whether or not such actions or forbearances are unduly prejudicial to such Holders).

 

    	 	14	 

     

    

 

Section
6.7. Rights of Holders to Receive Payment.

 

Notwithstanding
any other provision of this Indenture, the right of any Holder of a Note to receive payment of principal and interest on the Note,
on or after the date demand is made for payment therefor, or to bring suit for the enforcement of any such payment on or after
such demand date, shall not be impaired or affected without the consent of the Holder.

 

Section
6.8. Collection Suit by Trustee.

 

If
an Event of Default specified in Section 6.1(a) or Section 6.1(b) occurs and is continuing, the Trustee may recover judgment in
its own name and as trustee of an express trust against the Company for the whole amount of principal and interest and fees remaining
unpaid on the Notes with respect to which the Event of Default occurred in each case at the rate per annum borne by the Notes
and such amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses,
disbursements, and advances of the Trustee, its agents, and counsel.

 

Section
6.9. Trustee May File Proofs of Claim.

 

The
Trustee is authorized to file such proofs of claim and other papers or documents as may be necessary or advisable in order to
have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements, and advances of
the Trustee, its agents, and counsel) and the Holders allowed in any judicial proceedings relative to the Company (or any other
obligor upon the Notes), its creditors or its property and shall be entitled and empowered to collect, receive, and distribute
any money or other property payable or deliverable on any such claims and any custodian in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee, and in the event that the Trustee shall consent in writing to
the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation,
expenses, disbursements, and advances of the Trustee, its agents, and counsel, and any other amounts due the Trustee under Section
7.7 hereof. To the extent that the payment of any such compensation, expenses, disbursements, and advances of the Trustee, its
agents, and counsel, and any other amounts due the Trustee under Section 7.7 hereof out of the estate in any such proceeding,
shall be denied for any reason, payment of the same shall be secured by a lien on, and shall be paid out of, any and all distributions,
dividends, money, securities, and other properties that the Holders may be entitled to receive in such proceeding whether in liquidation
or under any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee
to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment, or
composition affecting the Notes or the rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

 

Section
6.10. Priorities.

 

If
the Trustee collects any money pursuant to this Article, it shall pay out the money in the following order:

 

	 	First:
    	to
    the Trustee, its agents, and attorneys for amounts due under Section 7.7;

 

    	 	15	 

     

    

 

	 	Second:
    	to
    holders of Senior Debt to the extent required by Article 10;
	 	 	 
	 	Third:
    	to
    Holders of Notes for amounts due and unpaid on the Notes for principal and interest, ratably, without preference or priority
    of any kind, according to the amounts due and payable on the Notes for principal and interest, respectively; and
	 	 	 
	 	Fourth:
    	to
    the Company or to such party as a court of competent jurisdiction shall direct.

 

The
Trustee may fix a record date and payment date for any payment to the Certificateholders pursuant to this Section 6.10, and such
record date shall be no later than the 15th day of the month preceding the payment date.

 

Section
6.11. Undertaking for Costs.

 

In
any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken
or omitted by it as a Trustee, a court in its discretion may assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.7, or a suit by Holders
of more than 10% in principal amount of the then outstanding Notes.

 

ARTICLE
7

 

TRUSTEE

 

Section
7.1. Duties of Trustee.

 

(a)
If an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and power vested in it by
this Indenture, and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

 

(b)
Except during the continuance of an Event of Default:

 

	 	(1)
    	The
    Trustee need perform only those duties that are specifically set forth in this Indenture and no duties, covenants, responsibilities,
    or obligations shall be implied in this Indenture against the Trustee; and
	 	 	 
	 	(2)
    	In
    the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness
    of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements
    of this Indenture. However, the Trustee shall examine the certificates and opinions to determine whether or not they conform
    on their face to the requirements of this Indenture.

 

    	 	16	 

     

    

 

(c)
The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

 

	 	(1)
    	This
    paragraph does not limit the effect of paragraph (b) of this Section;
	 	 	 
	 	(2)
    	The
    Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that
    the Trustee was negligent in ascertaining the pertinent facts;
	 	 	 
	 	(3)
    	The
    Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction
    received by it pursuant to Section 6.5; and
	 	 	 
	 	(4)
    	The
    Trustee shall not be required to expend or risk its own funds or otherwise incur financial liability in the performance of
    any of its duties under this Indenture or in the exercise of any of its rights or powers, if it has reasonable grounds to
    believe repayment of the funds or adequate indemnity against the risk or liability is not reasonably assured to it.

 

(d)
Every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section
and to the provisions of the TIA.

 

(e)
The Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity satisfactory to it against
any loss, liability, or expense.

 

(f)
The Trustee shall not be liable for interest on any money received by it except as the Trustee may expressly agree with the Company.
Money held in trust by the Trustee need not be segregated from the other funds except to the extent required by law.

 

(g)
The Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with
the direction of the Holders of not less than a majority in principal amount of the Notes at the time outstanding given pursuant
to Section 6.5 of this Indenture, relating to the time, method, and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred upon the Trustee under this Indenture.

 

Section
7.2. Rights of Trustee.

 

(a)
The Trustee may conclusively rely on any document believed by it to be genuine and to have been signed or presented by the proper
person. The Trustee need not investigate any fact or matter stated in the document.

 

(b)
Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel. The Trustee
shall not be liable for any action it takes or omits to take in good faith in reliance of the Officer’s Certificate or Opinion
of Counsel.

 

(c)
The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due
care.

 

    	 	17	 

     

    

 

(d)
The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within
its rights or powers.

 

(e)
In no event shall the Trustee be responsible or liable for special, indirect, punitive, or consequential loss or damage of any
kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood
of such loss or damage and regardless of the form of action.

 

(f)
The Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee
has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee
at the Corporate Trust Office of the Trustee, and such notice references the Notes and this Indenture.

 

(g)
The Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder.

 

(h)
The Trustee may request that the Company deliver a certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture.

 

(i)
The Trustee will not be required to investigate any facts or matters stated in any document, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters as it may see fit. If the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the books, records, and premises of the Company, personally
or by agent or attorney at the sole cost of the Company and shall incur no liability or additional liability of any kind by reason
of such inquiry or investigation.

 

Section
7.3. Individual Rights of Trustee.

 

Subject
to Section 7.1:

 

	 	(a)
    	The
    Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Company
    or an Affiliate with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights.
	 	 	 
	 	(b)
    	The
    Company shall notify the Trustee if the Notes become listed on any securities exchange or of any delisting thereof and the
    Trustee shall comply with Section 313(d) of the TIA.

 

Section
7.4. Trustee’s Disclaimer.

 

The
Trustee makes no representation at to the validity or adequacy of this Indenture or the Notes, it shall not be accountable for
the Company’s use of the proceeds from the Notes, and it shall not be responsible for any statement in the Notes.

 

    	 	18	 

     

    

 

Section
7.5. Notice of Defaults.

 

If
a Default or Event of Default occurs and is continuing and if it is known to the Trustee, the Trustee shall mail to Holders of
the Notes a notice of the Default or Event of Default within ninety (90) days after it occurs. Except in the case of a Default
or Event of Default in payment on a Note, the Trustee may withhold the notice if and so long as a committee of its Trust Officers
in good faith determines that withholding the notice is in the interests of Holders of the Notes.

 

Section
7.6. Reports by Trustee to Holders.

 

Within
60 days after the reporting date stated in Section 11.10, the Trustee shall mail to Certificateholders a brief report dated as
of such reporting date that complies with Section 313(a) of the TIA. The Trustee also shall comply with Section 313(b)(2) of the
TIA.

 

A
copy of each report at the time of its mailing to Certificateholders shall be filed with the SEC and each stock exchange on which
the Notes are listed. The Company shall notify the Trustee when the Notes are listed on any stock exchange.

 

Section
7.7. Compensation and Indemnity.

 

The
Company shall pay to the Trustee from time to time reasonable compensation for its services. The Trustee’s compensation
shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred by it. Such expenses shall include the reasonable compensation and
out-of-pocket expenses of the Trustee’s agents and counsel.

 

The
Company shall indemnify the Trustee or any predecessor Trustee and each of their respective officers, agents (including, for purposes
of illustration and not of limitation, any custodian and other Person employed to act hereunder by the Trustee), directors, and
employees for, and hold them harmless against any and all loss, damage, claims, liability, or expense incurred by it or them arising
out of or in connection with the acceptance or administration of the trust or trusts hereunder, including the costs and expenses
of defending itself or themselves against any claim (whether asserted by the Company, or any Holder or any other Person) or liability
in connection with the exercise or performance of any of its or their powers or duties hereunder, or in connection with enforcing
the provisions of this Section, except as set forth in the next two paragraphs. The Trustee shall notify the Company promptly
of any claim for which it may seek indemnity. The Company shall defend the claim and the Trustee shall cooperate in the defense.

 

The
Trustee may have separate counsel, and the Company shall pay the reasonable fees and expenses of such counsel. The Company shall
not be required to pay for any settlement made without its consent, which consent shall not be unreasonably withheld.

 

The
Company shall not be required to reimburse any expense or indemnify against any loss or liability incurred by the Trustee through
gross negligence, willful misconduct, or bad faith.

 

    	 	19	 

     

    

 

To
secure the Company’s payment of obligations in this Section, the Trustee shall have a lien prior to the Notes on all money
or property held or collected by the Trustee, including that held in trust to pay principal and interest on the Notes.

 

When
the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.1(d) or (e) occurs, the expenses
and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

 

Section
7.8. Replacement of Trustee.

 

A
resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s
acceptance of appointment as provided in this Section.

 

The
Trustee may resign by so notifying the Company. The Trustee may be removed with respect to the Notes by the Holders of a majority
in principal amount of the then outstanding Demand Notes by so notifying the Trustee and the Company. The Company may remove the
Trustee if:

 

	 	(a)
    	the
    Trustee fails to comply with Section 7.10;
	 	 	 
	 	(b)
    	the
    Trustee is adjudged a bankrupt or an insolvent or any order for relief is entered with respect to the Trustee under any Bankruptcy
    Law;
	 	 	 
	 	(c)
    	a
    Custodian or public officer takes charge of the Trustee or its property;
	 	 	 
	 	(d)
    	the
    Trustee becomes incapable of action; or
	 	 	 
	 	(e)
    	in
    the judgment of the Company, comparable services are available from another entity qualifying under Section 7.10 at a materially
    lower cost to the Company.

 

If
the Trustee resigns or is removed or if a vacancy exists in the office of the Trustee for any reason, the Company shall promptly
appoint a successor Trustee. Within one year after the successor Trustee takes office, a successor Trustee may be appointed by
act of the Holders of a majority in principal amount of the then outstanding Notes to replace the successor Trustee appointed
by the Company.

 

If
a successor Trustee does not take office within sixty (60) days after the retiring Trustee resigns or is removed, the retiring
Trustee, the Company, or the Holders of at least 10% in principal amount of the then outstanding Notes may petition any court
of competent jurisdiction for the appointment of a successor Trustee.

 

If
the Trustee fails to comply with Section 7.10, any Holder of the Notes may petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee.

 

    	 	20	 

     

    

 

A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Thereupon
the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights,
powers, and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to the Holders
of Notes. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to
the lien provided for in Section 7.7.

 

Section
7.9. Successor Trustee by Merger, Etc.

 

If
the Trustee consolidates, merges or converts into, or transfers all or substantially all of its corporate trust business to another
corporation, the successor corporation without any further act shall be the successor Trustee.

 

Section
7.10. Eligibility; Disqualification.

 

This
Indenture shall always have a Trustee who satisfies the requirements of Sections 310(a)(1), 310(a)(2), and 310(a)(5) of the TIA.
The Trustee shall always have a combined capital and surplus as stated in the TIA. The Trustee is subject to Section 310(b) of
the TIA. Section 11.10 lists any excluded indenture or trust agreement.

 

Section
7.11. Preferential Collection of Claims Against Company.

 

The
Trustee is subject to Section 311(a) of the TIA, excluding any creditor relationship described in Section 311(b) of the TIA. A
Trustee who has resigned or been removed shall be subject to Section 311(a) of the TIA to the extent indicated therein.

 

ARTICLE
8

 

DISCHARGE
OF INDENTURE; DEFEASANCE

 

Section
8.1. Termination of Company’s Obligations.

 

This
Indenture shall cease to be of further effect (except that the Company’s obligations under Sections 7.7 and 8.5 shall survive)
when all outstanding Notes theretofore issued have been identified to the Trustee for cancellation. In addition, the Company may
terminate its obligations under this Indenture if:

 

	 	(a)
    	the
    Notes then outstanding are to be called for redemption within one year under arrangements satisfactory to the Trustee for
    giving the notice of redemption; and
	 	 	 
	 	(b)
    	the
    Company irrevocably deposits with the Trustee, in trust, for the benefit of the Holders, money or U.S. Government Obligations,
    or a combination thereof, in such amounts as will be sufficient (without reinvestment) to pay the principal and interest on
    the Notes on the stated date for payment or on the redemption date. The Company may make the deposit only during the one-year
    period and only if Article 11 permits it.

 

    	 	21	 

     

    

 

However,
the Company’s obligations in Sections 2.4, 2.5, 2.6, 2.7, 2.8, 4.1, 6.7, and 6.8, and in Article 10, shall survive until
no Notes are outstanding. Thereafter, only the Company’s obligations in Sections 7.7 and 8.5 shall survive.

 

If
a deposit is made pursuant to this Section 8.1, the Trustee, upon request, shall acknowledge in writing the discharge of the Company’s
obligations under this Indenture, except for those surviving obligations specified above.

 

In
order to have money available on a payment date to pay principal and interest on the Notes, the U.S. Government Obligations shall
be payable as to principal and interest on or before such payment date in such amounts as will provide the necessary money. U.S.
Government Obligations shall not be callable at the issuer’s option.

 

“U.S.
Government Obligations” means direct obligations of the United States of America for the payment of which the full faith
and credit of the United States of America is pledged.

 

Section
8.2. Legal Defeasance and Covenant Defeasance.

 

(a)
The Company may, at its option and at any time, elect to have either paragraph (b) or (c) below be applied to all outstanding
Notes upon compliance with the conditions set forth in Section 8.3.

 

(b)
Upon the Company’s exercise under Section 8.2(a) hereof of the option applicable to this Section 8.2(b), the Company shall,
subject to the satisfaction of the conditions set forth in Section 8.3, be deemed to have been discharged from their obligations
with respect to all outstanding Notes on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).
For this purpose, Legal Defeasance means that the Company shall be deemed to have paid and discharged the entire Debt represented
by the outstanding Notes, which shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.4
hereof and the other Sections of this Indenture referred to in (1) and (2) below, and to have satisfied all its other obligations
under such Notes and this Indenture (and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder:

 

	 	(1)
    	the
    rights of Holders of outstanding Notes to receive, solely from the trust fund described in Section 8.4 hereof, and as more
    fully set forth in such Section 8.4, payments in respect of the principal of and interest on such Demand Notes when such payments
    are due;
	 	 	 
	 	(2)
    	the
    Company’s obligations with respect to such Notes under Article 2 and Section 4.1 hereof;
	 	 	 
	 	(3)
    	the
    rights, powers, trusts, duties, and immunities of the Trustee hereunder and the Company’s obligations in connection
    therewith; and
	 	 	 
	 	(4)
    	the
    provisions of this Article 8 applicable to Legal Defeasance.

 

    	 	22	 

     

    

 

Subject
to compliance with this Article 8, the Company may exercise its option under this Section 8.2(b) notwithstanding the prior exercise
of its option under Section 8.2(c) hereof.

 

(c)
Upon the Company’s exercise under paragraph (a) hereof of the option applicable to this paragraph (c), the Company shall,
subject to the satisfaction of the conditions set forth in Section 8.3 hereof, be released from their respective obligations under
the covenants contained in Sections 4.2 and 4.4 hereof with respect to the outstanding Notes on and after the date the conditions
set forth in Section 8.3 are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter
be deemed not “outstanding” for the purposes of any direction, waiver, consent, or declaration or act of Holders (and
the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding”
for all other purposes hereunder (it being understood that such Notes shall not be deemed outstanding for accounting purposes).
For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes, the Company may omit to comply with and
shall have no liability in respect of any term, condition, or limitation set forth in any such covenant, whether directly or indirectly,
by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other
provision herein or in any other document and such omission to comply shall not constitute an Event of Default under Section 6.1
hereof, but, except as specified above, the remainder of this Indenture and such Notes shall be unaffected thereby. In addition,
upon the Company’s exercise under paragraph (a) hereof of the option applicable to this paragraph (c), subject to the satisfaction
of the conditions set forth in Section 8.3 hereof, clause (c) of Section 6.1 hereof shall not constitute an Event of Default.

 

Section
8.3. Conditions to Legal Defeasance or Covenant Defeasance.

 

The
following shall be the conditions to the application of either Section 8.2(b) or 8.2(c) hereof to the outstanding Notes:

 

	 	(a)
    	the
    Company must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders, money or U.S. Government Obligations,
    or a combination thereof, in such amounts as will be sufficient (without reinvestment), in the opinion of a nationally recognized
    firm of independent public accountants selected by the Company, to pay the principal and interest on the Notes on the stated
    date for payment or on the redemption date;
	 	 	 
	 	(b)
    	in
    the case of Legal Defeasance, the Company shall have delivered to the Trustee an Opinion of Counsel in the United States confirming
    that:

 

	 	(a)
    	the
    Company has received from, or there has been published by the Internal Revenue Service, a ruling, or
	 	 	 
	 	(b)
    	since
    the date of this Indenture, there has been a change in the applicable U.S. federal income tax law,

 

in
either case to the effect that, and based thereon, the Holders will not recognize income, gain, or loss for U.S. federal income
tax purposes as a result of such Legal Defeasance and will be subject to U.S. federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such Legal Defeasance had not occurred;

 

    	 	23	 

     

    

 

	 	(c)
    	in
    the case of Covenant Defeasance, the Company shall have delivered to the Trustee an Opinion of Counsel in the United States
    reasonably acceptable to the Trustee confirming that the Holders will not recognize income, gain, or loss for U.S. federal
    income tax purposes as a result of such Covenant Defeasance and will be subject to U.S. federal income tax on the same amounts,
    in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred;
	 	 	 
	 	(d)
    	no
    Default shall have occurred and be continuing on the date of such deposit;
	 	 	 
	 	(e)
    	the
    Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a Default under, this
    Indenture or a default under any other material agreement or instrument to which the Company or any of its Subsidiaries is
    a party or by which the Company or any of its Subsidiaries is bound;
	 	 	 
	 	(f)
    	the
    Company shall have delivered to the Trustee an Officer’s Certificate stating that the deposit was not made by it with
    the intent of preferring the Holders over any other creditors of the Company or with the intent of defeating, hindering, delaying,
    or defrauding any other of its creditors; and
	 	 	 
	 	(g)
    	the
    Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that the
    conditions provided for in clauses (a) through (f) of this Section 8.3 (in the case of the Officer’s Certificate), as
    applicable, and clauses (b), if applicable, and/or (c) and (e) of this Section 8.3 (in the case of the Opinion of Counsel)
    have been complied with.

 

Section
8.4. Application of Trust Money.

 

The
Trustee shall hold in trust money or U.S. Government Obligations deposited with it pursuant to Section 8.1. It shall apply the
deposited money and the money from U.S. Government Obligations through the Paying Agent and in accordance with this Indenture
to the payment of principal and interest on the Notes. Money and Notes so held in trust are not subject to Article 10.

 

Section
8.5. Repayment to the Company.

 

The
Trustee and the Paying Agent shall promptly pay to the Company upon request any money or Notes held by them at any time in excess
of amounts required to be so held hereunder.

 

The
Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the payment of principal and interest
that remains unclaimed for two years. After payment to the Company, Certificateholders entitled to the money must look to the
Company for payment as general creditors unless an applicable abandoned property law designates another person.

 

    	 	24	 

     

    

 

ARTICLE
9

 

AMENDMENTS

 

Section
9.1. Without Consent of Holders.

 

The
Company and the Trustee may amend this Indenture or the Notes without the consent of the Holders of the Notes by Company Order:

 

	 	(a)
    	to
    cure any ambiguity, defect, or inconsistency;
	 	 	 
	 	(b)
    	to
    comply with Article 5;
	 	 	 
	 	(c)
    	to
    provide for certificated Notes in addition to uncertificated Notes;
	 	 	 
	 	(d)
    	to
    increase the aggregate principal amount of Notes which may be delivered under this Indenture;
	 	 	 
	 	(e)
    	to
    make any change that does not adversely affect the legal rights hereunder of the Holders of the Notes; or
	 	 	 
	 	(f)
    	to
    comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture with the TIA.

 

After
an amendment under this Section becomes effective, the Company shall mail to the Holders of the Notes affected by such amendment
a notice briefly describing the amendment.

 

Section
9.2. With Consent of Holders.

 

The
Company and the Trustee may amend this Indenture or the Notes with the written consent of the Holders of at least a majority in
principal amount of the then outstanding Notes. However, without the consent of each Certificateholder affected, an amendment
under this Section may not:

 

	 	(a)
    	reduce
    the amount of Notes whose Holders must consent to an amendment;
	 	 	 
	 	(b)
    	reduce
    the principal of or change the demand payment nature of any Note;
	 	 	 
	 	(c)
    	make
    any Note payable in money other than that stated in such Note;
	 	 	 
	 	(d)
    	make
    any change in Section 6.4, Section 6.7, or Section 9.2; or
	 	 	 
	 	(e)
    	make
    any change in Article 10 that adversely affects the rights of any Certificateholder.

 

    	 	25	 

     

    

 

An
amendment under this Section may not make any change that adversely affects the rights under Article 10 of any holder of an issue
of Senior Debt unless the holders of the issue pursuant to its terms consent to the change or the change is otherwise permissible.

 

The
Company may, but shall not be obligated to, fix a record date for the purpose of determining the Persons entitled to consent to
any indenture supplemental hereto. If a record date is fixed, the Holders on such record date, or their duly designated proxies,
and only such Persons, shall be entitled to consent to such supplemental indenture, whether or not such Holders remain Holders
after such record date; provided, that unless such consent shall have become effective by virtue of the requisite percentage having
been obtained prior to the date which is 90 days after such record date, any such consent previously given shall automatically
and without further action by any Holder be cancelled and of no further effect.

 

After
an amendment under this Section becomes effective, the Company shall mail to the Holders of the Notes affected by such amendment
a notice briefly describing the amendment.

 

Section
9.3. Compliance with Trust Indenture Act.

 

Every
amendment to this Indenture or the Notes shall be set forth in a supplemental indenture that complies with the TIA as then in
effect.

 

Section
9.4. Revocation and Effect of Consents.

 

Until
an amendment or waiver becomes effective, a consent to it by a Holder of a Note is a continuing consent by the Holder and every
subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notification
of the consent is not made on any Note. However, any such Holder or subsequent Holder may revoke the consent as to his or her
Note or portion of a Note if the Trustee receives the notice of revocation before the date the amendment or waiver becomes effective.
An amendment or waiver becomes effective in accordance with its terms and thereafter binds every Holder of the Notes.

 

Section
9.5. Notation on or Exchange of Notes.

 

The
Company may place an appropriate notation about an amendment or waiver on any Note (or confirmation thereof) thereafter authenticated.
The Company in exchange for all Notes may issue and the Trustee shall authenticate, if the Trustee is acting as Registrar, new
Notes that reflect the amendment or waiver.

 

Section
9.6. Trustee Protected.

 

The
Trustee shall sign all supplemental indentures and shall be fully protected in doing so, except that the Trustee need not sign
any supplemental indenture that adversely affects its rights. The Trustee shall be entitled to receive, and shall be fully protected
in relying on, an Opinion of Counsel and an Officer’s Certificate, which shall be provided at the expense of the Company.

 

    	 	26	 

     

    

 

ARTICLE
10

 

SUBORDINATION

 

Section
10.1. Agreement to Subordinate.

 

The
Company agrees, and each Certificateholder by accepting a Note agrees, that the indebtedness evidenced by the Note is subordinated
in right of payment, to the extent and in the manner provided in this Article, to the prior payment in full of all Senior Debt,
and that the subordination is for the benefit of the holders of Senior Debt.

 

Section
10.2. Certain Definitions.

 

“Debt”
means any indebtedness, contingent or otherwise, in respect of borrowed money (whether or not the recourse of the lender is to
the whole of the assets of the Company or only to a portion thereof), or evidenced by bonds, notes, debentures, or similar instruments
or letters of credit, or representing the balance deferred and unpaid on the purchase price of any property or interest therein,
except any such balance that constitutes a trade payable, and shall include any guarantee of any indebtedness described above.

 

“Representative”
means the indenture trustee or other trustee, agent, or representative for an issue of Senior Debt.

 

“Senior
Debt” means all Debt (present or future) created, incurred, assumed, or guaranteed by the Company (and all renewals,
extensions, or refundings thereof), except such Debt that by its terms expressly provides that such Debt is not senior or superior
in right of payment to the Notes. Senior Debt shall include without limitation (i) the guarantee by the Company of any Debt of
any other person (including, without limitation, subordinated Debt of another person), unless such Debt is expressly subordinated
to any other Debt of the Company, (ii) all Debt of the Company maintained with banks and finance companies and any line of credit
to be obtained by the Company in the future and (iii) all Debt of the Company obtained from Affiliates. Notwithstanding anything
herein to the contrary, Senior Debt shall not include Debt of the Company to any of its subsidiaries or under the Notes.

 

Section
10.3. Liquidation; Dissolution; Bankruptcy.

 

Upon
any distribution to creditors of the Company in a liquidation or dissolution of the Company or in a bankruptcy, reorganization,
insolvency, receivership, or similar proceeding relating to the Company or its property:

 

	 	(a)
    	holders
    of Senior Debt shall be entitled to receive payment in full in cash of the principal and interest (including interest accruing
    after the commencement of any such proceeding) to the date of payment, on the Senior Debt before Certificateholders shall
    be entitled to receive any payment of principal and interest on Notes; and
	 	 	 
	 	(b)
    	until
    the Senior Debt is paid in full in cash, any distribution to which Certificateholders would be entitled but for this Article
    shall be made to holders of Senior Debt as their interest may appear, except that Holders of Notes may receive Notes that
    are subordinated to Senior Debt to at least the same extent as such Notes.

 

    	 	27	 

     

    

 

Section
10.4. Default on Senior Debt.

 

Upon
the maturity of any Senior Debt by lapse of time, acceleration, or otherwise, all such Senior Debt shall first be paid in full,
or such payment duly provided for in cash or in a manner satisfactory to the holders of such Senior Debt, before any payment is
made by the Company or any person acting on behalf of the Company on account of the principal and interest on the Notes.

 

The
Company may not pay principal and interest on the Notes and may not acquire Notes for cash or property other than capital stock
of the Company if:

 

	 	(a)
    	a
    default on Senior Debt occurs and is continuing that permits holders of such Senior Debt to accelerate its maturity, and
	 	 	 
	 	(b)
    	the
    default is the subject of judicial proceedings or the Company receives a notice of the default from a person who may give
    it pursuant to Section 10.12. If the Company receives any such notice, a similar notice received within nine (9) months thereafter
    relating to the same default on the same issue of Senior Debt shall not be effective for purposes of this Section.

 

The
Company may resume payments on the Notes and may acquire them when:

 

	 	(a)
    	the
    default is cured or waived, or
	 	 	 
	 	(b)
    	one
    hundred twenty (120) days pass after the notice is given if the default is not the subject of judicial proceedings, if this
    Article otherwise permits the payment or acquisition at that time.

 

Section
10.5. Acceleration of Notes.

 

If
payment of the Notes is accelerated because of an Event of Default, the Company shall promptly notify holders of Senior Debt of
the acceleration. The Company may pay Holders of the Notes when one hundred twenty (120) days pass after the acceleration occurs
if this Article permits the payment at that time.

 

Section
10.6. When Distribution Must Be Paid Over.

 

In
the event that, notwithstanding the provisions of Section 10.4, the Company shall make any payment to the Trustee on account of
the principal and interest on the Notes, two (2) business days after the happening of a default in payment of the principal or
interest on Senior Debt, or two (2) business days after receipt by the Company and the Trustee of written notice as provided in
Sections 10.4 and 10.12 of an Event of Default or an event which, with the passage of time or the giving of notice or both, would
constitute an Event of Default with respect to any Senior Debt, then, unless and until such Default or Event of Default shall
have been cured or waived or shall have ceased to exist, such payment shall be held by the Trustee, in trust for the benefit of,
and shall be paid forthwith over and delivered to, the holders of Senior Debt (pro rata as to each of such holders on the basis
of the respective amounts of Senior Debt held by them) or their representative or the trustee under the indenture or other agreement
(if any) pursuant to which Senior Debt may have been issued, as their respective interests may appear, for application to the
payment of all Senior Debt remaining unpaid to the extent necessary to pay all Senior Debt in full in accordance with its terms,
after giving effect to any concurrent payment or distribution to or for the holders of Senior Debt.

 

    	 	28	 

     

    

 

If
a distribution is made to the Holders of Notes that because of this Article should not have been made to them, the Holders who
receive the distribution shall hold it in trust for holders of Senior Debt and pay it over to them as their interests may appear.

 

Section
10.7. Notice by Company.

 

The
Company shall promptly notify the Trustee and the Paying Agent of any facts known to the Company that would cause a payment of
principal and interest on the Notes to violate this Article, but failure to give such notice shall not affect the subordination
of the Notes to the Senior Debt provided in this Article. Nothing in this Article 10 shall apply to claims of, or payments to,
the Trustee under or pursuant to Section 6.7.

 

Section
10.8. Subrogation.

 

After
all Senior Debt is paid in full and until the Notes are paid in full, Holders of the then outstanding Notes shall be subrogated
to the rights of holders of Senior Debt to receive distributions applicable to Senior Debt to the extent distributions otherwise
payable to such Holders have been applied to the payment of Senior Debt. A distribution made under this Article to holders of
Senior Debt which otherwise would have been made to Certificateholders is not, as between the Company and Certificateholders,
a payment by the Company on Senior Debt.

 

Section
10.9. Relative Rights.

 

This
Article defines the relative rights of Certificateholders and holders of Senior Debt. Nothing said in this indenture shall:

 

	 	(a)
    	impair,
    as between the Company and Certificateholders, the obligation of the Company, which is absolute and unconditional, to pay
    principal of and interest on the Notes in accordance with their terms;
	 	 	 
	 	(b)
    	affect
    the relative rights of Certificateholders and creditors of the Company other than holders of Senior Debt; or
	 	 	 
	 	(c)
    	prevent
    the Trustee or any Certificateholder from exercising its available remedies upon a Default or Event of Default, subject to
    the rights of holders of Senior Debt to receive distributions otherwise payable to Certificateholders.

 

    	 	29	 

     

    

 

If
the Company fails because of this Article to pay principal and interest on a Note on the due date, the failure is still a Default
or Event of Default.

 

Section
10.10. Subordination may not be Impaired by Company.

 

No
right of any holder of Senior Debt to enforce the subordination of the indebtedness evidenced by the Notes shall be impaired by
any act or failure to act by the Company or by its failure to comply with this Indenture.

 

Section
10.11. Distribution or Notice to Representative.

 

Whenever
a distribution is to be made or a notice given to holders of Senior Debt, the distribution may be made and the notice given to
their Representative.

 

Section
10.12. Rights of Trustee and Paying Agent.

 

The
Trustee or Paying Agent may continue to make payments on the Notes until it receives notice of facts that would cause a payment
of principal and interest on the Notes to violate this Article. Only the Company, a Representative, or a holder of an issue of
Senior Debt that has no Representative may give the notice.

 

The
Trustee in its individual or any other capacity may hold Senior Debt with same rights it would have if it were not Trustee. Any
Agent may do the same with like rights.

 

Section
10.13. Trust Moneys Not Subordinated.

 

Notwithstanding
anything contained herein to the contrary, payments from money or the proceeds of U.S. Government Obligations held in trust under
Article 8 by the Trustee for the payment of principal of and interest on the Notes shall not be subordinated to the prior payment
of any Senior Debt or subject to the restrictions set forth in this Article 10, and none of the Holders of the Notes shall be
obligated to pay over any such amount to the Company or any holder of Senior Debt of the Company or any other creditor of the
Company.

 

Section
10.14. Trustee Not Fiduciary for Holders of Senior Debt.

 

The
Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Debt and shall not be liable to any such holders
if it shall mistakenly pay over or distribute to Holders of the Notes or the Company or any other person, money or assets to which
any holders of Senior Debt of the Company shall be entitled by virtue of this Article 10 or otherwise.

 

    	 	30	 

     

    

 

ARTICLE
11

 

MISCELLANEOUS

 

Section
11.1. TIA Controls.

 

If
any provision of this Indenture limits, qualifies, or conflicts with another provision which is required to be included in this
Indenture by the TIA, the required provision shall control.

 

Section
11.2. Notices.

 

Any
notice by the Company or the Trustee to the other is duly given if in writing and delivered in person or mailed by first-class
mail to the other’s address stated in Section 11.10. The Company or the Trustee by notice to the other may designate additional
or different addresses for subsequent notices or communications.

 

Any
notice to a Certificateholder shall be mailed by first-class mail to the address shown on the register kept by the Registrar or
such other name and addresses as provided to the Trustee pursuant to Sections 313(c)(2) and (3) of the TIA. Failure to mail a
notice or communication to a Certificateholder or any defect in it shall not affect its sufficiency with respect to other Certificateholders.

 

If
a notice is mailed in the manner provided above within the time prescribed, it is duly given, whether or not the addressee receives
it.

 

If
the Company mails a notice to Certificateholders, it shall mail a copy to the Trustee and each Agent at the same time.

 

All
other notices shall be in writing.

 

Section
11.3. Communication by Holders With Other Holders.

 

Certificateholders
may communicate pursuant to Section 312(b) of the TIA with other Certificateholders with respect to their rights under this Indenture
or the Notes. The Company, the Trustee, the Registrar, and anyone else shall have the protection of Section 312(c) of the TIA.

 

Section
11.4. Certificate and Opinion as to Conditions Precedent.

 

Upon
any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to
the Trustee:

 

	 	(a)
    	an
    Officer’s Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in
    this Indenture relating to the proposed action and the other items detailed in Section 11.5 have been complied with; and
	 	 	 
	 	(b)
    	an
    Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent and the other items detailed
    in Section 11.5 have been complied with.

 

    	 	31	 

     

    

 

Section
11.5. Statements Required in Certificate or Opinion.

 

Each
certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include:

 

	 	(a)
    	a
    statement that the person making such certificate or opinion has read such covenant or condition;
	 	 	 
	 	(b)
    	a
    brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained
    in such certificate or opinion are based;
	 	 	 
	 	(c)
    	a
    statement that, in the opinion of such person, he or she has made such examination or investigation as is necessary to enable
    him or her to express an informed opinion as to whether or not such covenant or condition has been complied with; and
	 	 	 
	 	(d)
    	a
    statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.

 

Section
11.6. Rules by Trustee and Agents.

 

The
Trustee may make reasonable rules for action by or a meeting of Certificateholders. The Registrar or Paying Agent may make reasonable
rules and set reasonable requirements for its functions.

 

Section
11.7. Legal Holidays.

 

A
“Legal Holiday” is a Saturday, a Sunday, or a day on which banking institutions are not required to be open.
If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that
is not a Legal Holiday, and no interest shall accrue for the intervening period.

 

Section
11.8. No Recourse Against Others.

 

All
liability described in the Notes of any member, manager, director, officer, employee, or stockholder, as such, of the Company
and the Trustee is waived and released. Each Holder by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes.

 

Section
11.9. Duplicate Originals.

 

The
parties may sign any number of copies of this Indenture. One signed copy is enough to prove this Indenture.

 

    	 	32	 

     

    

 

Section
11.10. Variable Provisions.

 

The
Company initially appoints itself as Paying Agent and Registrar.

 

The
first Officer’s Certificate pursuant to Section 4.3 shall be for the fiscal year ending on December 31, 2019.

 

The
reporting date for Section 7.6 is May 15 of each year. The first reporting date is May 15, 2020.

 

The
Company’s address is:

 

13241
Bartram Park Blvd.

Suite
2401

Jacksonville,
Florida 32258

Attention:
Dan Wallach

 

The
Trustee’s address is:

 

U.S.
Bank National Association

Global
Corporate Trust Services

1349
West Peachtree Street, Suite 1050

Atlanta,
Georgia 30309

Attention:
Account Manager - Shepherd’s Finance, LLC

 

Section
11.11. Governing Law.

 

The
internal laws of the State of Delaware shall govern this Indenture and the Notes.

 

Section
11.12. No Adverse Interpretation of Other Agreements.

 

This
Indenture may not be used to interpret another indenture, loan, or debt agreement of the Company or a Subsidiary. Any such indenture,
loan, or debt agreement may not be used to interpret this Indenture.

 

Section
11.13. Successors.

 

All
agreements of the Company in this Indenture and the Notes shall bind its successor. All agreements of the Trustee in this Indenture
shall bind its successor.

 

Section
11.14. Severability.

 

In
case any provision in this Indenture or the Notes shall be invalid, illegal, or unenforceable, then the validity, legality, and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

    	 	33	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto hereby execute this Indenture as of the date first written.

 

	 	COMPANY:
	 	 	 
	 	SHEPHERD’S
    FINANCE, LLC
	 	 	 
	 	By:
    	/s/
    Daniel M. Wallach 
	 	 	Daniel
    M. Wallach, Chief Executive Officer
	 	 	 
	 	TRUSTEE:
	 	 	 
	 	U.S.
    BANK NATIONAL ASSOCIATION
	 	 	 
	 	By:
    	/s/
    Felicia H. Powell 
	 	 	Felicia
    H. Powell, Assistant Vice President

 

 

    	 	34	 

     

    

 

Exhibit
A

 

FORM
OF FIXED RATE SUBORDINATED NOTE

 

OF

 

SHEPHERD’S
FINANCE, LLC

 

    	 	 	 

     

    

 

Fixed
Rate Subordinated Note

 

 

 

___________
__, 20__

 

	No.
    ____	Jacksonville,
    Florida

 

Subject
to the restrictions in Section 6 below, ___________________________________from the date hereof, Shepherd’s Finance, LLC
(the “Company”) promises to pay ___________________________ DOLLARS at the main office of the Company, 13241 Bartram
Park Blvd., Suite 2401, Jacksonville, Florida 32258 and to pay interest thereon at the rate of ____% (percent) per annum, in accordance
with Section 1 below.

 

This
is one of a duly authorized issue of Fixed Rate Subordinated Notes of the Company (the “Notes”) issued under and subject
in all respects to the terms of an Indenture dated as of March 22, 2019 (the “Indenture”), between the Company and
U.S. Bank National Association, as trustee (the “Trustee”). Reference is hereby made to the Indenture and all supplemental
indentures for a statement of the respective rights of the Company, the Trustee, the agents of the Company, and the Trustee and
the holders of the Notes. All capitalized terms used, but not defined, in this Note have the meanings assigned to them in the
Indenture. No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note in the manner herein prescribed.

 

1.
Interest. Interest will be calculated based on the actual number of days the Note is outstanding based on a 365/366 day
year. Interest will be earned daily and payable monthly or at maturity at the holder’s request. If the holder elects to
receive interest at maturity rather than monthly, interest will be compounded monthly. If any payment of the Note is due on a
Legal Holiday, then the holder will not be entitled to payment of the amount due until the following day that is not a Legal Holiday,
and no interest will be due as a result of such delay. If the holder elects to receive interest monthly, interest will be paid
on the first business day (not a Legal Holiday) of every month (each an “Interest Payment Date”). The first Interest
Payment Date will be the month following the month of the Date of Issue, except that if a Note is issued within the last 10 days
preceding an Interest Payment Date, the first interest payment will be made on the next succeeding Interest Payment Date. No payments
of interest under fifty dollars will be made, with any interest payment under fifty dollars accruing and earning interest on a
monthly compounding basis until the payment due is at least fifty dollars on an Interest Payment Date.

 

2.
Redemption by Company. Subject to the restrictions of Section 6 below and in accordance with the procedures set forth in
Article 3 of the Indenture, this Note may be redeemed by the Company prior to maturity for a redemption price equal to the principal
amount, plus any unpaid interest thereon to the date of redemption. Notice of redemption shall be given by mail to the holder
of this Note (the “Noteholder”) at his last address as it appears on the records of the Company not less than 30 nor
more than 60 days prior to the date fixed for redemption. Once notice of redemption is mailed, Notes called for redemption become
due and payable on the date of redemption set forth in the notice of redemption at the redemption price. On or before the redemption
date, the Company shall set aside money sufficient to pay the redemption price of all Notes to be redeemed on that date.

 

    	 	 	 

     

    

 

3.
Redemption at Request of Noteholder. BEGINNING 180 DAYS AFTER THE ISSUANCE DATE, AT THE WRITTEN REQUEST OF THE NOTEHOLDER
DELIVERED TO THE COMPANY, THE COMPANY MAY, AT ITS OPTION AND SUBJECT TO THE RESTRICTIONS OF SECTION 6 BELOW, BUT SHALL NOT BE
REQUIRED TO, REDEEM THIS NOTE for a redemption price equal to the principal amount plus an amount equal to the unpaid interest
thereon for this Note, as adjusted, at the stated rate to the redemption date minus an amount equal to the interest that would
be payable thereon at the rate stated above for a 180-day period.

 

4.
Redemption Upon Death of Noteholder. Upon the death of the Noteholder, the Company shall be required to redeem this Note
at the date of the Noteholder’s death, as requested in the manner, and subject to the limitations, set forth below. The
redemption price shall be equal to 100% of the principal amount of the Note plus accrued interest on a daily basis to the redemption
date. Redemption of this Note shall be made as soon as reasonably possible, based on the Company’s then current case position
and needs, but generally within two weeks following the receipt by the Company or the Trustee of all of the following:

 

	 	(a)
    	a
    written request for redemption signed by a duly authorized representative of the Noteholder, which request shall set forth
    the name of the Noteholder, the date of death of the Noteholder and the principal amount of this Note;
	 	 	 
	 	(b)
    	evidence
    satisfactory to the Trustee and the Company of the death of the Noteholder and the authority of the representative to such
    extent as may be required by the Trustee or Company.

 

This
Note shall not be entitled to redemption pursuant to this Section 4 unless the Note has been registered in the Noteholder’s
name since its Date of Issue.

 

Authorized
representatives of the Noteholder shall include the following: executors, administrators, or other legal representatives of an
estate; trustees of a trust; joint owner of the Note owned in joint tenancy or tenancy by the entirety; attorneys-in-fact; and
other persons generally recognized as having legal authority to act on behalf of another.

 

5.
Renewal Option at Maturity. Between 30 and 60 days prior to the maturity date of this Note, the Company will deliver a
notice of the maturity date to the Noteholder and, if the Company is offering any renewal options and has an effective offering
available, a renewal form containing the renewal options. The renewal form will contain the terms of Notes being offered at that
time and the Noteholder may select one of the renewal options offered. If the Noteholder properly completes, executes, and returns
the renewal form at least 5 business days prior to the maturity date, the Note will be deemed renewed under the renewal terms
selected and a new Note will be issued by the Company within 5 business days after the original maturity date. If the Noteholder
does not return a properly completed renewal form within the time period prescribed herein or there are no renewal options offered
by the Company, then the Company will pay the principal amount plus any unpaid interest to the Noteholder at maturity.

 

    	 	 	 

     

    

 

6.
Subordination. This Note is subordinated, in all rights to payment and in all other respects, to Senior Debt. Senior Debt
means all Debt (present or future) created, incurred, assumed, or guaranteed by the Company (and all renewals, extensions, or
refundings thereof), except such Debt that by its terms expressly provides that such Debt is not senior or superior in right of
payment to the Notes. Senior Debt shall include without limitation (i) the guarantee by the Company of any Debt of any other person
(including, without limitation, subordinated Debt of another person), unless such Debt is expressly subordinated to any other
Debt of the Company, (ii) all Debt of the Company maintained with banks and finance companies and any line of credit to be obtained
by the Company in the future and (iii) all Debt of the Company obtained from Affiliates. Notwithstanding anything herein to the
contrary, Senior Debt shall not include Debt of the Company to any of its subsidiaries or under the Notes. Any other Fixed Rate
Subordinated Notes issued by the Company pursuant to a public or private offering thereof shall be pari passu with this Note and
shall not constitute Senior Debt. Debt means any indebtedness, contingent or otherwise, in respect of borrowed money (whether
or not the recourse of the lender is to the whole of the assets of the Company or only to a portion thereof), or evidenced by
bonds, notes, debentures, or similar instruments or letters of credit, or representing the balance deferred and unpaid on the
purchase price of any property or interest therein, except any such balance that constitutes a trade payable, and shall include
any guarantee of any indebtedness described above. The Company agrees, and the Noteholder by accepting this Note agrees, to the
subordination provisions set forth in Article 10 of the Indenture.

 

7.
Amendments and Waivers. As permitted in the Indenture, the Indenture, other than the subordination provisions, may be amended
and the rights and obligations of the Company and the rights of the holders of the Notes under the Indenture modified at any time
by the Company with the consent of the Trustee and holders of a majority in principal amount of the then outstanding Notes. The
Company and the Trustee may not modify the Indenture without the consent of each holder affected if the modification (i) affects
the terms of payment of, the principal of, or any interest on, any Note; (ii) changes the percentage of Noteholders who consent
to a waiver or modification as required; (iii) affects the subordination provisions of the Indenture in a manner that adversely
affects the right of any holder; or (iv) waives any Event of Default in the payment of principal of, or interest on, any Note.
As permitted by the Indenture, the Trustee and holders of a majority in principal amount of the then outstanding Notes, on behalf
of the holders of all Notes, may waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences, except an Event of Default in the payment of principal or of interest on the Notes.

 

8.
Defaults and Remedies. If an Event of Default, as defined in the Indenture, occurs and is continuing, the principal of
and accrued interest on all Notes may be declared due and payable in the manner and with the effect provided in the Indenture.
The Indenture generally provides that an Event of Default occurs if: (i) the Company fails to pay any installment of interest
on a Note when the same becomes due and payable and the failure to pay continues for a period of thirty (30) days; (ii) the Company
fails to pay the principal of any Note when the same becomes due and payable at maturity, upon redemption or otherwise, and the
failure to pay continues for a period of thirty (30) days; (iii) the Company fails to comply with any of its other agreements
in, or the provisions of, the Note or the Indenture and such failure is not cured or waived within sixty (60) days after receipt
by the Company of a specific written notice from the Trustee or the holders of at least 25% in principal amount of the then outstanding
Notes; and (iv) the Company becomes subject to certain events of bankruptcy or insolvency.

 

    	 	 	 

     

    

 

9.
Transfer. As provided in the Indenture, this Note is transferable only on the Note register maintained by the Registrar,
upon surrender of this Note for transfer at the office of the Registrar, duly endorsed by, or accompanied by a written instrument
of transfer in a form satisfactory to the Company and the Registrar duly executed by, the registered holder hereof or his attorney
duly authorized in writing, a copy of which authorization must be delivered with any such instrument of transfer, and thereupon
one or more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees. A service fee may be charged to replace a lost or stolen Note, to transfer this Note, or to issue a
replacement payment check. The Company, the Trustee, and any agent of the Company or the Trustee may treat the person in whose
name this Note is registered as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes,
and neither the Company, the Trustee, nor any such agent shall be affected by notice to the contrary. The Company currently serves
as the Registrar and Paying Agent for the Notes.

 

10.
Owners. The registered Noteholder shall be treated as the owner of the Note for all purposes.

 

11.
No Recourse. A member, manager, director, officer, employee, or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under this Note or for any claim based on, or in respect of such obligations or their
creation. The Noteholder by accepting this Note waives and releases all such liability. The waiver and release are part of the
consideration for the issue of this Note.

 

THIS
NOTE IS NOT A BANK DEPOSIT NOR A BANK OBLIGATION AND IS NOT INSURED BY THE FDIC.

 

IN
WITNESS WHEREOF, the Company has caused this Note to be signed in its company name by an Officer at Jacksonville, Florida, on
the date first written above.

 

	 	SHEPHERD’S
    FINANCE, LLC
	 	 	 
	 	By:
    	             
	 	Name:	 
	 	Title:

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