Exhibit (a)
Draft: September 24, 2004
FOR DISCUSSION PURPOSES ONLY
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DEPOSIT AGREEMENT
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by and among
▇▇▇▇▇▇▇▇▇ TELECOMMUNICATIONS INTERNATIONAL LIMITED
AND
CITIBANK, N.A.,
as Depositary,
AND
THE HOLDERS AND BENEFICIAL OWNERS
OF AMERICAN DEPOSITARY SHARES EVIDENCED BY
AMERICAN DEPOSITARY RECEIPTS ISSUED HEREUNDER
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Dated as of [date], [year]
TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS......................................................1
Section 1.1 "Affiliate"......................................................1
Section 1.2 "ADS Record Date"................................................2
Section 1.3 "American Depositary Receipt(s)", "ADR(s)" and "Receipt(s)"......2
Section 1.4 "American Depositary Share(s)" and "ADS(s)"......................2
Section 1.5 "Applicant"......................................................2
Section 1.6 "Beneficial Owner"...............................................2
Section 1.7 "Certificated ADS(s)"............................................2
Section 1.8 "Commission".....................................................2
Section 1.9 "Company"........................................................2
Section 1.10 "Custodian"......................................................2
Section 1.11 "Deliver" and "Delivery".........................................3
Section 1.12 "Deposit Agreement"...............................................
Section 1.13 "Depositary".....................................................3
Section 1.14 "Deposited Securities"...........................................3
Section 1.15 "Dollars" and "$"................................................3
Section 1.16 "DTC"............................................................3
Section 1.17 "DTC Participant"................................................3
Section 1.18 "Exchange Act"...................................................3
Section 1.19 "Foreign Currency"...............................................3
Section 1.20 "Full Entitlement ADR(s)", "Full Entitlement ADS(s)" and "Full
Entitlement Share(s)".........................................3
Section 1.21 "Holder(s)"......................................................3
Section 1.22 "Partial Entitlement ADR(s)", "Partial Entitlement ADS(s)" and
"Partial Entitlement Share(s)".................................3
Section 1.23 "Pre-Release Transaction"........................................3
Section 1.24 "Principal Office"...............................................3
Section 1.25 "Registrar"......................................................4
Section 1.26 "Restricted Securities"..........................................4
Section 1.27 "Restricted ADR(s)", "Restricted ADS(s)" and "Restricted Shares".4
Section 1.28 "Securities Act".................................................4
Section 1.29 "Share Registrar"................................................4
Section 1.30 "Shares".........................................................4
Section 1.31 "Uncertificated ADS(s)"..........................................4
Section 1.32 "United States" and "U.S.".......................................5
ARTICLE II APPOINTMENT OF DEPOSITARY; FORM OF RECEIPTS; 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 ADRs.................................5
Section 2.3 Deposit with Custodian...........................................6
Section 2.4 Registration and Safekeeping of Deposited Securities.............8
Section 2.5 Issuance of ADSs; Execution and Delivery of ADRs.................8
Section 2.6 Transfer, Combination and Split-up of ADRs.......................8
Section 2.7 Surrender of ADSs and Withdrawal of Deposited Securities.........9
Section 2.8 Limitations on Execution and Delivery, Transfer, etc. of ADRs;
Suspension of Delivery, Transfer, etc. .........................10
Section 2.9 Lost ADRs, etc..................................................11
Section 2.10 Cancellation and Destruction of Surrendered ADRs; Maintenance of
Records.......................................................11
Section 2.11 Partial Entitlement ADSs........................................12
Section 2.12 Certificated/Uncertificated ADSs................................12
Section 2.13 Restricted ADSs.................................................14
ARTICLE III CERTAIN OBLIGATIONS OF HOLDERS AND BENEFICIAL OWNERS OF ADSs....15
Section 3.1 Proofs, Certificates and Other Information......................15
Section 3.2 Liability for Taxes and Other Charges...........................15
Section 3.3 Representations and Warranties on Deposit of Shares.............16
Section 3.4 Compliance with Information Requests............................16
Section 3.5 Ownership Restrictions..........................................17
ARTICLE IV THE DEPOSITED SECURITIES........................................17
Section 4.1 Cash Distributions..............................................17
Section 4.2 Distribution in Shares..........................................18
Section 4.3 Elective Distributions in Cash or Shares........................18
Section 4.4 Distribution of Rights to Purchase Additional ADSs..............19
Section 4.5 Distributions Other Than Cash, Shares or Rights to Purchase
Shares........................................................21
Section 4.6 Distributions with Respect to Deposited Securities in Bearer
Form..........................................................21
Section 4.7 Redemption......................................................22
Section 4.8 Conversion of Foreign Currency..................................22
Section 4.9 Fixing of ADS Record Date.......................................23
Section 4.10 Voting of Deposited Securities..................................23
Section 4.11 Changes Affecting Deposited Securities..........................25
Section 4.12 Available Information...........................................26
Section 4.13 Reports.........................................................26
Section 4.14 List of Holders.................................................26
Section 4.15 Taxation........................................................26
ARTICLE V THE DEPOSITARY, THE CUSTODIAN AND THE COMPANY...................27
Section 5.1 Maintenance of Office and Transfer Books by the Registrar.......27
Section 5.2 Exoneration.....................................................28
Section 5.3 Standard of Care................................................29
Section 5.4 Resignation and Removal of the Depositary; Appointment of
Successor Depositary..........................................29
Section 5.5 The Custodian...................................................30
Section 5.6 Notices and Reports.............................................31
Section 5.7 Issuance of Additional Shares, ADSs etc.........................31
Section 5.8 Indemnification.................................................32
Section 5.9 Fees and Charges of Depositary..................................33
Section 5.10 Pre-Release Transactions........................................34
Section 5.11 Restricted Securities Owners....................................34
ARTICLE VI AMENDMENT AND TERMINATION.......................................35
Section 6.1 Amendment/Supplement............................................35
Section 6.2 Termination.....................................................35
ARTICLE VII MISCELLANEOUS...................................................36
Section 7.1 Counterparts....................................................36
Section 7.2 No Agency.......................................................36
Section 7.3 No Third-Party Beneficiaries....................................36
Section 7.4 Severability....................................................37
Section 7.5 Holders and Beneficial Owners as Parties; Binding Effect........37
Section 7.6 Notices.........................................................37
Section 7.7 Governing Law and Jurisdiction..................................38
Section 7.8 Assignment......................................................39
Section 7.9 Compliance with U.S. Securities Laws............................39
Section 7.10 Titles and References...........................................39
Exhibit A Form of ADR
Exhibit B Fee Schedule
DEPOSIT AGREEMENT
DEPOSIT AGREEMENT, dated as of September _, 2004, by and among (i)
▇▇▇▇▇▇▇▇▇ Telecommunications International Limited, a company organized under
the laws of the Cayman Islands, and its successors (the "Company"), (ii)
CITIBANK, N.A., a national banking association organized under the laws of the
United States of America acting in its capacity as depositary, and any
successor depositary hereunder (the "Depositary"), and (iii) all Holders and
Beneficial Owners from time to time of American Depositary Shares evidenced by
American Depositary Receipts issued hereunder (all such capitalized terms as
hereinafter defined).
W I T N E S S E T H T H A T:
WHEREAS, the Company desires to establish with the Depositary an ADR
facility to provide, inter alia, for the deposit of the Shares (as hereinafter
defined) and the creation of American Depositary Shares representing the Shares
so deposited and for the execution and delivery of American Depositary Receipts
evidencing such American Depositary Shares; and
WHEREAS, the Depositary is willing to act as the Depositary for such
ADR facility upon the terms set forth in this Deposit Agreement; and
WHEREAS, the American Depositary Receipts evidencing the American
Depositary Shares issued pursuant to the terms of this Deposit Agreement are to
be substantially in the form of Exhibit A attached hereto, with appropriate
insertions, modifications and omissions, as hereinafter provided in this
Deposit Agreement; and
WHEREAS, the American Depositary Shares to be issued pursuant to the
terms of this Deposit Agreement are to be listed for trading on the New York
Stock Exchange ("NYSE") under the symbol "HTX"; and
WHEREAS, the Board of Directors of the Company (or an authorized
committee thereof) has duly approved the establishment of an ADR facility upon
the terms set forth in this Deposit Agreement (as hereinafter defined), the
execution and delivery of this Deposit Agreement on behalf of the Company, and
the actions of the Company and the transactions contemplated herein.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:
ARTICLE I
DEFINITIONS
All capitalized terms used, but not otherwise defined, herein shall
have the meanings set forth below, unless otherwise clearly indicated:
Section 1.1 "Affiliate" shall have the meaning assigned to such term
by the Commission (as hereinafter defined) under Regulation C promulgated under
the Securities Act (as hereinafter defined), or under any successor regulation
thereto.
Section 1.2 "ADS Record Date" shall have the meaning given to such
term in Section 4.9.
Section 1.3 "American Depositary Receipt(s)", "ADR(s)" and
"Receipt(s)" shall mean the certificate(s) issued by the Depositary to evidence
the American Depositary Shares issued under the terms of this Deposit
Agreement, as such ADRs may be amended from time to time in accordance with the
provisions of this Deposit Agreement. An ADR may evidence any number of ADSs
and may, in the case of ADSs held through a central depository such as DTC, be
in the form of a "Balance Certificate."
Section 1.4 "American Depositary Share(s)" and "ADS(s)" shall mean the
rights and interests in the Deposited Securities granted to the Holders and
Beneficial Owners pursuant to the terms and conditions of this Deposit
Agreement and the ADRs issued hereunder to evidence such ADSs. Each ADS shall
represent fifteen Share(s) until there shall occur a distribution upon
Deposited Securities referred to in Section 4.2 or a change in Deposited
Securities referred to in Section 4.11 with respect to which additional ADSs
are not issued, and thereafter each ADS shall represent the Deposited
Securities determined in accordance with the terms of such Sections. ADS(s) may
be issued under the terms of the Deposit Agreement in the form of (a)
Certificated ADS(s) (as hereinafter defined), in which case the ADS(s) are
evidenced by ADR(s), or (b) Uncertificated ADS(s) (as hereinafter defined), in
which case the ADS(s) are not evidenced by ADR(s) but are reflected on the
direct registration system maintained by the Depositary for such purposes under
the terms of Section 2.12 hereof. Unless otherwise specified in this Deposit
Agreement or in any ADR, or unless the context otherwise requires, any
reference in the Deposit Agreement or any ADR to ADS(s) shall include
Certificated ADS(s) and Uncertificated ADS(s), individually or collectively, as
the context may require.
Section 1.5 "Applicant" shall have the meaning given to such term in
Section 5.10.
Section 1.6 "Beneficial Owner" shall mean, as to any ADS, any person
or entity having a beneficial interest deriving from the ownership of such ADS.
A Beneficial Owner of ADSs may or may not be the Holder of the ADR(s)
evidencing such ADSs. A Beneficial Owner shall be able to exercise any right or
receive any benefit hereunder solely through the person who is the Holder of
the ADR(s) evidencing the ADSs owned by such Beneficial Owner.
Section 1.7 "Certificated ADS(s)" shall have the meaning given to such
term in Section 2.12.
Section 1.8 "Commission" shall mean the Securities and Exchange
Commission of the United States or any successor governmental agency thereto in
the United States.
Section 1.9 "Company" shall mean ▇▇▇▇▇▇▇▇▇ Telecommunications
International Limited, a company incorporated and existing under the laws of
the Cayman Islands, and its successors.
Section 1.10 "Custodian" shall mean, as of the date hereof, the Hong
Kong office of the Depositary, having its principal office at ▇▇/▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇, ▇▇▇▇▇▇▇▇ Plaza, 3 Garden Road, Central, Hong Kong, as the custodian for
the purposes of this Deposit Agreement, and any other entity that may be
appointed by the Depositary pursuant to the terms of Section 5.5 as successor,
substitute or additional custodian hereunder. The term "Custodian" shall mean
any Custodian individually or all Custodians collectively, as the context
requires.
Section 1.11 "Deliver" and "Delivery" shall mean, when used in respect
of ADSs, Deposited Securities and Shares, either (i) the physical delivery of
the certificate(s) representing such securities, or (ii) the electronic
delivery of such securities by means of book-entry transfer, if available.
Section 1.12 "Deposit Agreement" shall mean this Deposit Agreement and
all exhibits hereto, as the same may from time to time be amended and
supplemented from time to time in accordance with the terms hereof.
Section 1.13 "Depositary" shall mean Citibank, N.A., a national
banking association organized under the laws of the United States, in its
capacity as depositary under the terms of this Deposit Agreement, and any
successor depositary hereunder.
Section 1.14 "Deposited Securities" shall mean Shares at any time
deposited under this Deposit Agreement and any and all other securities,
property and cash held by the Depositary or the Custodian in respect thereof,
subject, in the case of cash, to the provisions of Section 4.8. The collateral
delivered in connection with Pre-Release Transactions described in Section 5.10
hereof shall not constitute Deposited Securities.
Section 1.15 "Dollars" and "$" shall refer to the lawful currency of
the United States.
Section 1.16 "DTC" shall mean The Depository Trust Company, a national
clearinghouse and the central book-entry settlement system for securities
traded in the United States and, as such, the custodian for the securities of
DTC Participants (as hereinafter defined) maintained in DTC, and any successor
thereto.
Section 1.17 "DTC Participant" shall mean any financial institution
(or any nominee of such institution) having one or more participant accounts
with DTC for receiving, holding and delivering the securities and cash held in
DTC.
Section 1.18 "Exchange Act" shall mean the United States Securities
Exchange Act of 1934, as amended from time to time.
Section 1.19 "Foreign Currency" shall mean any currency other than
Dollars.
Section 1.20 "Full Entitlement ADR(s)", "Full Entitlement ADS(s)" and
"Full Entitlement Share(s)" shall have the respective meanings set forth in
Section 2.11.
Section 1.21 "Holder(s)" shall mean the person(s), from time to time,
in whose name an ADR is registered on the books of the Depositary (or the
Registrar, if any) maintained for such purpose. A Holder may or may not be a
Beneficial Owner. If a Holder is not the Beneficial Owner of the ADSs evidenced
by the ADR registered in its name, such person shall be deemed to have all
requisite authority to act on behalf of the Beneficial Owners of the ADSs
evidenced by such ADR.
Section 1.22 "Partial Entitlement ADR(s)", "Partial Entitlement
ADS(s)" and "Partial Entitlement Share(s)" shall have the respective meanings
set forth in Section 2.11.
Section 1.23 "Pre-Release Transaction" shall have the meaning set
forth in Section 5.10.
Section 1.24 "Principal Office" shall mean, when used with respect to
the Depositary, the principal office of the Depositary at which at any
particular time its depositary receipts business shall be administered, which,
at the date of this Deposit Agreement, is located at ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇
▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, U.S.A.
Section 1.25 "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 issuances,
transfers and cancellations of ADRs as herein provided, and shall include any
co-registrar appointed by the Depositary for such purposes. Registrars (other
than the Depositary) may be removed and substitutes appointed by the
Depositary. Each Registrar (other than the Depositary) appointed pursuant to
this Deposit Agreement shall be required to give notice in writing to the
Depositary accepting such appointment and agreeing to be bound by the
applicable terms of this Deposit Agreement.
Section 1.26 "Restricted Securities" shall mean Shares, Deposited
Securities or ADSs which (i) have been acquired directly or indirectly from the
Company or any of its Affiliates in a transaction or chain of transactions not
involving any public offering and are subject to resale limitations under the
Securities Act (as hereinafter defined) 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, the Cayman Islands, or
under a shareholder agreement or the Memorandum and Articles of Association of
the Company or under the regulations of an applicable securities exchange
unless, in each case, such Shares, Deposited Securities or ADSs are being
transferred or sold to persons other than an Affiliate of the Company in a
transaction (a) covered by an effective resale registration statement, or (b)
exempt from the registration requirements of the Securities Act (as hereinafter
defined), and the Shares, Deposited Securities or ADSs are not, when held by
such person(s), Restricted Securities.
Section 1.27 "Restricted ADR(s)", "Restricted ADS(s)" and "Restricted
Shares" shall have the respective meanings set forth in Section 2.13.
Section 1.28 "Securities Act" shall mean the United States Securities
Act of 1933, as amended from time to time.
Section 1.29 "Share Registrar" shall mean Computershare Hong Kong
Investor Services Limited and Bank of ▇▇▇▇▇▇▇▇▇▇▇ or any other institution
organized under the laws of Hong Kong or the Cayman Islands appointed by the
Company to carry out the duties of registrar for the Shares, and any successor
thereto.
Section 1.30 "Shares" shall mean the Company's ordinary shares, par
value HK$0.25 per share, validly issued and outstanding and fully paid;
provided that in no event shall Shares include evidence of the right to receive
Shares; 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 4.11 in respect of the Shares of the Company,
the term "Shares" shall thereafter, to the maximum extent permitted by law,
represent the successor securities resulting from such event.
Section 1.31 "Uncertificated ADS(s)" shall have the meaning given to
such term in Section 2.12.
Section 1.32 "United States" and "U.S." shall have the meaning
assigned to it in Regulation S as promulgated by the Commission under the
Securities Act.
ARTICLE II
APPOINTMENT OF DEPOSITARY; FORM OF RECEIPTS;
DEPOSIT OF SHARES; EXECUTION
AND DELIVERY, TRANSFER AND SURRENDER OF RECEIPTS
Section 2.1 Appointment of Depositary. The Company hereby appoints the
Depositary as depositary for the Deposited Securities and hereby authorizes and
directs the Depositary to act in accordance with the terms and conditions set
forth in this Deposit Agreement and the applicable ADRs. Each Holder and each
Beneficial Owner, upon acceptance of any ADSs (or any interest therein) issued
in accordance with the terms and conditions of this Deposit Agreement shall be
deemed for all purposes to (a) be a party to and bound by the terms of this
Deposit Agreement and the applicable ADR(s), and (b) appoint the Depositary its
attorney-in-fact, with full power to delegate, to act on its behalf and to take
any and all actions contemplated in this Deposit Agreement and the applicable
ADR(s), to adopt any and all procedures necessary to comply with applicable law
and to take such action as the Depositary in its sole discretion may deem
necessary or appropriate to carry out the purposes of this Deposit Agreement
and the applicable ADR(s), the taking of such actions to be the conclusive
determinant of the necessity and appropriateness thereof.
Section 2.2 Form and Transferability of ADRs.
(a) Form. Subject to the requirements of the NYSE or any applicable
rule or regulations of any other securities exchange or market upon which the
ADSs may be listed or traded, ADSs shall be evidenced by definitive ADRs which
shall be engraved, printed, lithographed or produced in such other manner as
may be agreed upon by the Company and the Depositary. ADRs may be issued under
the Deposit Agreement in denominations of any whole number of ADSs. The ADRs
shall be substantially in the form set forth in Exhibit A to the Deposit
Agreement, with any appropriate insertions, modifications and omissions, in
each case as otherwise contemplated in the Deposit Agreement or required by
law. ADRs shall be (i) dated, (ii) signed by the manual or facsimile signature
of a duly authorized signatory of the Depositary, (iii) countersigned by the
manual or facsimile signature of a duly authorized signatory of the Registrar,
and (iv) registered in the books maintained by the Registrar for the
registration of issuances and transfers of ADRs. No ADR and no ADS evidenced
thereby shall be entitled to any benefits under the Deposit Agreement or be
valid or enforceable for any purpose against the Depositary or the Company,
unless such ADR shall have been so dated, signed, countersigned and registered.
ADRs bearing the manual or facsimile signature of a duly-authorized signatory
of the Depositary or the Registrar, who at the time of signature was a
duly-authorized signatory of the Depositary or the Registrar, as the case may
be, shall bind the Depositary, notwithstanding the fact that such signatory has
ceased to be so authorized prior to the delivery of such ADR by the Depositary.
The ADRs shall bear a CUSIP number that is different from any CUSIP number that
was, is or may be assigned to any depositary receipts previously or
subsequently issued pursuant to any other arrangement between the Depositary
(or any other depositary) and the Company and which are not ADRs issued
hereunder.
(b) Legends. The ADRs may be endorsed with, or have incorporated in
the text thereof, such legends or recitals not inconsistent with the provisions
of the Deposit Agreement as 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 ADR,
title to an ADR (and to each ADS evidenced thereby) shall be transferable by
delivery upon the same terms as a certificated security under the laws of the
State of New York, provided that such ADR has been properly endorsed or is
accompanied by proper instruments of transfer. Notwithstanding any notice to
the contrary, the Depositary and the Company may deem and treat the Holder of
an ADR (that is, the person in whose name an ADR is registered on the books of
the Depositary) as the absolute owner thereof for all purposes. Neither the
Depositary nor the Company shall have any obligation nor be subject to any
liability under this Deposit Agreement or any ADR to any holder of an ADR or
any Beneficial Owner unless such holder is the Holder of such ADR registered on
the books of the Depositary or, in the case of a Beneficial Owner, such
Beneficial Owner, or the Beneficial Owner's representative, is the Holder
registered on the books of the Depositary.
(d) Book-Entry Systems. The Depositary shall make arrangements for the
acceptance of the ADSs into DTC. A single ADR in the form of a "Balance
Certificate" will evidence all ADSs held through DTC and will be registered in
the name of the nominee for DTC (currently "Cede & Co.") and will provide that
it represents the aggregate number of ADSs from time to time indicated in the
records of the Depositary as being issued hereunder and that the aggregate
number of ADSs represented thereby may from time to time be increased or
decreased by making adjustments on such records of the Depositary and of DTC or
its nominee as hereinafter provided. As such, the nominee for DTC will be the
only "Holder" of the ADR evidencing all ADSs held through DTC. Citibank, N.A.
(or such other entity as is appointed by DTC or its nominee) may hold the
"Balance Certificate" as custodian for DTC. Each Beneficial Owner of ADSs held
through DTC must rely upon the procedures of DTC and the DTC Participants to
exercise or be entitled to any rights attributable to such ADSs. The DTC
Participants shall for all purposes be deemed to have all requisite power and
authority to act on behalf of the Beneficial Owners of the ADSs held in the DTC
Participants' respective accounts in DTC and the Depositary shall for all
purposes be authorized to rely upon any instructions and information given to
it by DTC Participants on behalf of Beneficial Owners of ADSs. So long as ADSs
are held through DTC or unless otherwise required by law, ownership of
beneficial interests in the ADR registered in the name of the nominee for DTC
will be shown on, and transfers of such ownership will be effected only
through, records maintained by (i) DTC or its nominee (with respect to the
interests of DTC Participants), or (ii) DTC Participants or their nominees
(with respect to the interests of clients of DTC Participants).
Section 2.3 Deposit with Custodian. Subject to the terms and
conditions of this Deposit Agreement and applicable law, Shares (other than
Restricted Securities) or 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, excluding evidence of the right to receive (i) Shares to
be distributed in a dividend or free distribution of Shares, (ii) Shares with
respect to which the full purchase price has not been paid, (iii) Shares as to
which preemptive rights have theretofore not been validly waived or exercised
or (iv) Restricted 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 may be deposited
by any person (including the Depositary in its individual capacity but subject,
however, in the case of the Company or any Affiliate of the Company, to Section
5.7 hereof) at any time, whether or not the transfer books of the Company or
the Share Registrars, if any, are closed, by Delivery of the Shares to the
Custodian. Every deposit of Shares shall be accompanied by the following: (A)
(i) in the case of Shares represented by certificates issued in registered
form, appropriate instruments of transfer or endorsement, in a form
satisfactory to the Custodian, (ii) in the case of Shares represented by
certificates in bearer form, the requisite coupons and talons pertaining
thereto, and (iii) in the case of Shares delivered by book-entry transfer,
confirmation of such book-entry transfer to the Custodian or that irrevocable
instructions have been given to cause such Shares to be so transferred, (B)
such certifications and payments (including, without limitation, the
Depositary's fees and related charges) and evidence of such payments
(including, without limitation, stamping or otherwise marking such Shares by
way of receipt) as may be required by the Depositary or the Custodian in
accordance with the provisions of this Deposit Agreement and applicable law,
(C) if the Depositary so requires, a written order directing the Depositary to
execute and deliver to, or upon the written order of, the person(s) stated in
such order the ADR(s) for the number of ADSs representing the Shares so
deposited, (D) evidence satisfactory to the Depositary (which may be an opinion
of counsel) that all necessary approvals have been granted by, or there has
been compliance with the rules and regulations of, any applicable governmental
agency in the Cayman Islands, and (E) if the Depositary so requires, (i) an
agreement, assignment or instrument satisfactory to the Depositary or the
Custodian which provides for the prompt transfer by any person in whose name
the Shares are or have been recorded to the Custodian of any distribution, or
right to subscribe for additional Shares or to receive other property in
respect of any such deposited Shares or, in lieu thereof, such indemnity or
other agreement as shall be satisfactory to the Depositary or the Custodian and
(ii) if the Shares are registered in the name of the person on whose behalf
they are presented for deposit, a proxy or proxies entitling the Custodian to
exercise voting rights in respect of the Shares for any and all purposes until
the Shares so deposited are registered in the name of the Depositary, the
Custodian or any nominee.
Without limiting any other provision of this Deposit Agreement, the
Depositary shall instruct the Custodian not to, and the Depositary shall not
knowingly, accept for deposit (a) any Restricted Securities except as
contemplated in Section 2.13 or (b) any fractional Shares or fractional
Deposited Securities or (c) a number of Shares or Deposited Securities which
upon application of the ADS to Shares ratio would give rise to fractional ADSs.
No Share shall be accepted for deposit unless accompanied by evidence, if any
is required by the Depositary, that is reasonably satisfactory to the
Depositary or the Custodian that all conditions to such deposit have been
satisfied by the person depositing such Shares under applicable laws and
regulations and any necessary approval has been granted by any applicable
governmental body. The Depositary may issue ADSs against evidence of rights to
receive Shares from the Company, any agent of the Company or any custodian,
registrar, transfer agent, clearing agency or other entity involved in
ownership or transaction records in respect of the Shares. Such evidence of
rights shall consist of written blanket or specific guarantees of ownership of
Shares furnished by the Company or any such custodian, registrar, transfer
agent, clearing agency or other entity involved in ownership or transaction
records in respect of the Shares.
Section 2.4 Registration and Safekeeping of Deposited Securities. The
Depositary shall instruct the Custodian upon each Delivery of certificates
representing registered Shares being deposited hereunder with the Custodian (or
other Deposited Securities pursuant to Article IV hereof), together with the
other documents above specified, to present such certificate(s), together with
the appropriate instrument(s) of transfer or endorsement, duly stamped, to a
Share Registrar for transfer and registration of the Shares (as soon as
transfer and registration can be accomplished and at the expense of the person
for whom the deposit is made) in the name of the Depositary, the Custodian or a
nominee of either. Deposited Securities shall be held by the Depositary or by a
Custodian for the account and to the order of the Depositary or a nominee in
each case on behalf of the Holders and Beneficial Owners, at such place or
places as the Depositary or the Custodian shall determine.
Without limitation of the foregoing, the Depositary shall not
knowingly accept for deposit under this Deposit Agreement any Shares or other
Deposited Securities required to be registered under the provisions of the
Securities Act, unless a registration statement is in effect as to such Shares
or other Deposited Securities, or any Shares or other Deposited Securities the
deposit of which would violate any provisions of the Memorandum and Articles of
Association of the Company. In addition, and without limitation of the
foregoing, the Depositary and the Custodian will comply with written
instructions of the Company not to accept for deposit any Shares identified in
such instructions at such times and under such circumstances as may reasonably
be specified in such instructions in order to facilitate the Company's
compliance with the securities laws of 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.
Section 2.5 Issuance of ADSs; Execution and Delivery of ADRs. The
Depositary has made arrangements with the Custodian to confirm to the
Depositary (i) that a deposit of Shares has been made pursuant to Section 2.3
hereof, (ii) that such Deposited Securities have been recorded in the name of
the Depositary, the Custodian or a nominee of either on the shareholders'
register maintained by or on behalf of the Company by the Share Registrar if
registered Shares have been deposited or, if deposit is made by book-entry
transfer, confirmation of such transfer in the books of the Share Registrar,
(iii) that all required documents have been received, and (iv) the person(s) to
whom or upon whose order ADSs are deliverable in respect thereof and the number
of ADSs to be so delivered. Such notification may be made by letter, cable,
telex, SWIFT message or, at the risk and expense of the person making the
deposit, by facsimile or other means of electronic transmission. Upon receiving
such notice from the Custodian, the Depositary, subject to the terms and
conditions of this Deposit Agreement and applicable law, shall issue the ADSs
representing the Shares so deposited to or upon the order of the person(s)
named in the notice delivered to the Depositary and shall execute and deliver
at its Principal Office Receipt(s) registered in the name(s) requested by such
person(s) and evidencing the aggregate number of ADSs to which such person(s)
are entitled, but only upon payment to the Depositary of the charges of the
Depositary for accepting a deposit, issuing ADSs and executing and delivering
such ADR(s) (in each case, as set forth in Section 5.9 and Exhibit B hereto)
and all taxes and governmental charges and fees payable in connection with such
deposit and the transfer of the Shares and the issuance of the ADR(s). The
Depositary shall only issue ADSs in whole numbers and deliver ADR(s) evidencing
whole numbers of ADSs. Nothing herein shall prohibit any Pre-Release
Transaction upon the terms set forth in this Deposit Agreement.
Section 2.6 Transfer, Combination and Split-up of ADRs.
(a) Transfer. The Registrar shall, reasonably promptly register the
transfer of ADRs (and of the ADSs represented thereby) on the books maintained
for such purpose and the Depositary shall, reasonably promptly, (x) cancel such
ADRs and execute new ADRs evidencing the same aggregate number of ADSs as those
evidenced by the ADRs canceled by the Depositary, (y) cause the Registrar to
countersign such new ADRs and (z) Deliver such new ADRs to or upon the order of
the person entitled thereto, if each of the following conditions has been
satisfied: (i) the ADRs have been duly Delivered by the Holder (or by a duly
authorized attorney of the Holder) to the Depositary at its Principal Office
for the purpose of effecting a transfer thereof, (ii) the surrendered ADRs have
been properly endorsed or are accompanied by proper instruments of transfer
(including signature guarantees in accordance with standard securities industry
practice), (iii) the surrendered ADRs have been duly stamped (if required by
the laws of the State of New York or of the United States), and (iv) all
applicable fees and charges of, and expenses incurred by, the Depositary and
all applicable taxes and governmental charges (in each case, as set forth in
Section 5.9 and Exhibit B hereto) have been paid, subject, however, in each
case, to the terms and conditions of the applicable ADRs, of the Deposit
Agreement and of applicable law, in each case as in effect at the time thereof.
(b) Combination & Split Up. The Registrar shall without unreasonable
delay register the split-up or combination of ADRs (and of the ADSs represented
thereby) on the books maintained for such purpose and the Depositary shall (x)
cancel such ADRs and execute new ADRs for the number of ADSs requested, but in
the aggregate not exceeding the number of ADSs evidenced by the ADRs cancelled
by the Depositary, (y) cause the Registrar to countersign such new ADRs and (z)
Deliver such new ADRs to or upon the order of the Holder thereof, if each of
the following conditions has been satisfied: (i) the ADRs have been duly
Delivered by the Holder (or by a duly authorized attorney of the Holder) to the
Depositary at its Principal Office for the purpose of effecting a split-up or
combination thereof, and (ii) all applicable fees and charges of, and expenses
incurred by, the Depositary (in each case, as set forth in Section 5.9 and
Exhibit B hereto) and all applicable taxes and governmental charges have been
paid, subject, however, in each case, to the terms and conditions of the
applicable ADRs, of the Deposit Agreement and of applicable law, in each case
as in effect at the time thereof.
(c) Co-Transfer Agents. The Depositary may appoint one or more
co-transfer agents for the purpose of effecting transfers, combinations and
split-ups of ADRs at designated transfer offices on behalf of the Depositary.
In carrying out its functions, a co-transfer agent may require evidence of
authority and compliance with applicable laws and other requirements by Holders
or persons entitled to such ADRs and will be entitled to protection and
indemnity to the same extent as the Depositary. Such co-transfer agents may be
removed and substitutes appointed by the Depositary. Each co-transfer agent
appointed under this Section 2.6 (other than the Depositary) shall give notice
in writing to the Depositary accepting such appointment and agreeing to be
bound by the applicable terms of this Deposit Agreement.
Section 2.7 Surrender of ADSs and Withdrawal of Deposited Securities.
The Holder of ADSs shall be entitled to Delivery (at the Custodian's designated
office) of the Deposited Securities at the time represented by the ADSs upon
satisfaction of each of the following conditions: (i) the Holder (or a
duly-authorized attorney of the Holder) has duly Delivered ADSs to the
Depositary at its Principal Office (and if applicable, the ADRs evidencing such
ADSs) for the purpose of withdrawal of the Deposited Securities represented
thereby, (ii) if so required by the Depositary, the ADRs Delivered to the
Depositary for such purpose have been properly endorsed in blank or are
accompanied by proper instruments of transfer in blank (including signature
guarantees in accordance with standard securities industry practice), (iii) if
so required by the Depositary, the Holder of the ADSs has executed and
delivered to the Depositary a written order directing the Depositary to cause
the Deposited Securities being withdrawn to be Delivered to or upon the written
order of the person(s) designated in such order, and (iv) all applicable fees
and charges of, and expenses incurred by, the Depositary (in each case, as set
forth in Section 5.9 and Exhibit B hereof) and all applicable taxes and
governmental charges have been paid, subject, however, in each case, to the
terms and conditions of the ADRs evidencing the surrendered ADSs, of the
Deposit Agreement, of the Company's Memorandum and Articles of Association and
of any applicable laws, and to any provisions of or governing the Deposited
Securities , in each case as in effect at the time thereof.
Upon satisfaction of each of the conditions specified above, the
Depositary shall (i) promptly cancel the ADSs Delivered to it (and, if
applicable, the ADRs evidencing the ADSs so Delivered), (ii) direct the
Registrar to record the cancellation of the ADSs so Delivered, and (iii) direct
the Custodian to Deliver (without unreasonable delay) at the Custodian's
designated office the Deposited Securities represented by the ADSs so canceled
together with any certificate or other document of title for the Deposited
Securities, or evidence of the electronic transfer thereof (if available), as
the case may be, to or upon the written order of the person(s) designated in
the order delivered to the Depositary for such purpose, subject however, in
each case, to the terms and conditions of the Deposit Agreement, of the ADRs
evidencing the ADSs so cancelled, of the Memorandum and Articles of Association
of the Company, of any applicable laws, and to the terms and conditions of or
governing the Deposited Securities, in each case as in effect at the time
thereof.
The Depositary shall not accept for surrender ADSs representing less
than one Share. In the case of the Delivery to it of ADSs representing a number
other than a whole number of Shares, the Depositary shall cause ownership of
the appropriate whole number of Shares to be Delivered in accordance with the
terms hereof, and shall, at the discretion of the Depositary, either (i) return
to the person surrendering such ADSs the number of ADSs representing any
remaining fractional Share, or (ii) sell or cause to be sold the fractional
Share represented by the ADSs so surrendered and remit the proceeds of such
sale (net of (a) applicable fees and charges of, and expenses incurred by, the
Depositary (in each case, as set forth in Section 5.9 and Exhibit B hereof),
(b) governmental charges and fees and (c) taxes withheld to the person
surrendering the ADSs.
Notwithstanding anything else contained in any ADR or the Deposit
Agreement, the Depositary may make delivery at the Principal Office of the
Depositary of (i) any cash dividends or cash distributions, or (ii) any
proceeds from the sale of any distributions of shares or rights, which are at
the time held by the Depositary in respect of the Deposited Securities
represented by the ADSs surrendered for cancellation and withdrawal. At the
request, risk and expense of any Holder so surrendering ADSs, and for the
account of such Holder, the Depositary shall direct the Custodian to forward
(to the extent permitted by law) any cash or other property (other than
securities) held by the Custodian in respect of the Deposited Securities
represented by such ADSs to the Depositary for delivery at the Principal Office
of the Depositary. Such direction shall be given by letter or, at the request,
risk and expense of such Holder, by cable, telex or facsimile transmission.
Section 2.8 Limitations on Execution and Delivery, Transfer, etc. of
ADRs; Suspension of Delivery, Transfer, etc.
(a) Additional Requirements. As a condition precedent to the execution
and delivery, registration of issuance, transfer, split-up, combination or
surrender, of any ADR, the delivery of any distribution thereon, or the
withdrawal of any Deposited Securities, the Depositary or the Custodian may
require (i) payment from the depositor of Shares or presenter of ADSs or of an
ADR of a sum sufficient to reimburse it for any tax or other governmental
charge and any stock transfer or registration fee with respect thereto
(including any such tax or charge and fee with respect to Shares being
deposited or withdrawn) and payment of any applicable fees and charges of the
Depositary as provided in Section 5.9 and Exhibit B hereof, (ii) the production
of proof satisfactory to it as to the identity and genuineness of any signature
or any other matter contemplated by Section 3.1 hereof, and (iii) compliance
with (A) any laws or governmental regulations relating to the execution and
delivery of ADRs or ADSs or to the withdrawal of Deposited Securities and (B)
such reasonable regulations as the Depositary and the Company may establish
consistent with the provisions of the applicable ADR, this Deposit Agreement
and applicable law.
(b) Additional Limitations. The issuance of ADSs against deposits of
Shares generally or against deposits of particular Shares may be suspended, or
the deposit of particular Shares may be refused, or the registration of
transfer of ADRs in particular instances may be refused, or the registration of
transfers of ADRs generally may be suspended, during any period when the
transfer books of the Depositary, a Registrar, a Share Registrar or the
Company, including the shareholders' registers of the Company, are closed or if
any such action is deemed necessary or advisable by the Depositary or the
Company, in good faith, at any time or from time to time because of any
requirement of law, any government or governmental body or commission or any
securities exchange on which the ADSs or Shares are listed, or under any
provision of this Deposit Agreement or the applicable ADR(s) or under any
provision of, or governing, the Deposited Securities, or because of a meeting
of shareholders of the Company or for any other reason, subject, in all cases,
to Section 7.9 hereof.
(c) Regulatory Restrictions. Notwithstanding any provision of this
Deposit Agreement or any ADR(s) to the contrary, Holders are entitled to
surrender outstanding ADSs to withdraw the Deposited Securities at any time
subject only to (i) temporary delays caused by closing the transfer books of
the Depositary or the Company in accordance with the terms of this Deposit
Agreement or the deposit of Shares in connection with voting at a shareholders'
meeting or the payment of dividends, (ii) the payment of fees, taxes and
similar charges, (iii) compliance with any U.S. or foreign laws or governmental
regulations relating to the ADRs or to the withdrawal of the Deposited
Securities, and (iv) other circumstances specifically contemplated by
Instruction I.A.(l) of the General Instructions to Form F-6 under the
Securities Act (as such General Instructions may be amended from time to time).
Section 2.9 Lost ADRs, etc. In case any ADR shall be mutilated,
destroyed, lost, or stolen, the Depositary shall execute, register and deliver
a new ADR of like tenor at the expense of the Holder (a) in the case of a
mutilated ADR, in exchange of and substitution for such mutilated ADR upon
cancellation thereof, or (b) in the case of a destroyed, lost or stolen ADR, in
lieu of and in substitution for such destroyed, lost, or stolen ADR, after the
Holder thereof (i) has submitted to the Depositary a written request for such
exchange and substitution before the Depositary has notice that the ADR has
been acquired by a bona fide purchaser, (ii) has provided such security or
indemnity (including an indemnity bond) as may be required by the Depositary to
save it and any of its agents harmless, and (iii) has satisfied any other
reasonable requirements imposed by the Depositary, including, without
limitation, evidence reasonably satisfactory to the Depositary of such
destruction, loss or theft of such ADR, the authenticity thereof and the
Holder's ownership thereof.
Section 2.10 Cancellation and Destruction of Surrendered ADRs;
Maintenance of Records. All ADRs surrendered to the Depositary shall be
canceled by the Depositary. Canceled ADRs shall not be entitled to any benefits
under this Deposit Agreement or be valid or enforceable against the Depositary
for any purpose. The Depositary is authorized to destroy ADRs so canceled,
provided the Depositary maintains a record of all destroyed ADRs. Any ADSs held
in book-entry form (i.e., through accounts at DTC) shall be deemed canceled
when the Depositary causes the number of ADSs evidenced by the Balance
Certificate to be reduced by the number of ADSs surrendered (without the need
to physically destroy the Balance Certificate). The Depositary agrees to
maintain records of all ADRs surrendered and the Shares withdrawn, substitute
ADRs delivered and canceled or destroyed ADRs as required by the laws or
regulations governing the Depositary. Upon the reasonable request of the
Company, the Depositary shall provide a copy of such records of the Company.
Section 2.11 Partial Entitlement ADSs. In the event any Shares are
deposited which entitle the holders thereof to receive a per-share distribution
or other entitlement in an amount different from the Shares then on deposit
(the Shares then on deposit collectively, "Full Entitlement Shares" and the
Shares with different entitlement, "Partial Entitlement Shares"), the
Depositary shall (i) cause the Custodian to hold Partial Entitlement Shares
separate and distinct from Full Entitlement Shares, and (ii) subject to the
terms of this Deposit Agreement, issue ADSs and deliver ADRs representing
Partial Entitlement Shares which are separate and distinct from the ADSs and
ADRs representing Full Entitlement Shares, by means of separate CUSIP numbering
and legending (if necessary) ("Partial Entitlement ADSs/ADRs" and "Full
Entitlement ADSs/ADRs", respectively). If and when Partial Entitlement Shares
become Full Entitlement Shares, the Depositary shall (a) give notice thereof to
Holders of Partial Entitlement ADSs and give Holders of Partial Entitlement
ADRs the opportunity to exchange such Partial Entitlement ADRs for Full
Entitlement ADRs, (b) cause the Custodian to transfer the Partial Entitlement
Shares into the account of the Full Entitlement Shares, and (c) take such
actions as are necessary to remove the distinctions between (i) the Partial
Entitlement ADRs and ADSs, on the one hand, and (ii) the Full Entitlement ADRs
and ADSs on the other. Holders and Beneficial Owners of Partial Entitlement
ADSs shall only be entitled to the entitlements of Partial Entitlement Shares.
Holders and Beneficial Owners of Full Entitlement ADSs shall be entitled only
to the entitlements of Full Entitlement Shares. All provisions and conditions
of this Deposit Agreement shall apply to Partial Entitlement ADRs and ADSs to
the same extent as Full Entitlement ADRs and ADSs, except as contemplated by
this Section 2.11. The Depositary is authorized to take any and all other
actions as may be necessary (including, without limitation, making the
necessary notations on ADRs) to give effect to the terms of this Section 2.11.
The Company agrees to give timely written notice to the Depositary if any
Shares issued or to be issued are Partial Entitlement Shares and shall assist
the Depositary with the establishment of procedures enabling the identification
of Partial Entitlement Shares upon Delivery to the Custodian.
Section 2.12 Certificated/Uncertificated ADSs. Notwithstanding any
other provision of the Deposit Agreement, the Depositary may, at any time and
from time to time, issue ADSs that are not evidenced by ADRs (such ADSs, the
"Uncertificated ADS(s)" and the ADS(s) evidenced by ADR(s), the "Certificated
ADS(s)). When issuing and maintaining Uncertificated ADS(s) under the Deposit
Agreement, the Depositary shall at all times be subject to (i) the standards
applicable to registrars and transfer agents maintaining direct registration
systems for equity securities in New York and issuing uncertificated securities
under New York law, and (ii) the terms of New York law applicable to
uncertificated equity securities. Uncertificated ADSs shall not be represented
by any instruments but shall be evidenced by registration as "uncertificated
securities" in the books and records of the Depositary maintained for such
purpose. Holders of Uncertificated ADSs, that are not subject to any registered
pledges, liens, restrictions or adverse claims of which the Depositary has
notice at such time, shall at all times have the right to exchange the
Uncertificated ADS(s) for Certificated ADS(s) of the same type and class,
subject in each case to applicable laws and any rules and regulations the
Depositary may have established in respect of the Uncertificated ADSs. Holders
of Certificated ADSs shall, if the Depositary maintains a direct registration
system for the ADSs, have the right to exchange the Certificated ADSs for
Uncertificated ADSs upon (i) the due surrender of the Certificated ADS(s) to
the Depositary for such purpose and (ii) the presentation of a written request
to that effect to the Depositary, subject in each case to (a) all liens and
restrictions noted on the ADR evidencing the Certificated ADS(s) and all
adverse claims of which the Depositary then has notice, (b) the terms of the
Deposit Agreement and the rules and regulations that the Depositary may
establish for such purposes hereunder, (c) applicable law, and (d) payment of
the Depositary fees and expenses applicable to such exchange of Certificated
ADS(s) for Uncertificated ADS(s). Uncertificated ADSs shall in all respects be
identical to Certificated ADS(s) of the same type and class, except that (i) no
ADR(s) shall be, or shall need to be, issued to evidence Uncertificated ADS(s),
(ii) Uncertificated ADS(s) shall, subject to the terms of the Deposit
Agreement, be transferable upon the same terms and conditions as uncertificated
securities under New York law, (iii) the ownership of Uncertificated ADS(s)
shall be recorded on the books of the Depositary maintained for such purpose
and evidence of such ownership shall be reflected in periodic statements
provided by the Depositary to the Holder(s) in accordance with applicable New
York law, (iv) the Depositary may from time to time, upon notice to the Holders
of Uncertificated ADSs affected thereby, establish rules and regulations, and
amend or supplement existing rules and regulations, as may be deemed reasonably
necessary to maintain Uncertificated ADS(s) on behalf of Holders, provided that
(a) such rules and regulations do not conflict with the terms of the Deposit
Agreement and applicable law, and (b) the terms of such rules and regulations
are readily available to Holders upon request, (v) the Uncertificated ADS(s)
shall not be entitled to any benefits under this Deposit Agreement or be valid
or enforceable for any purpose against the Depositary or the Company unless
such Uncertificated ADS(s) is/are registered on the books of the Depositary
maintained for such purpose, (vi) the Depositary may, in connection with any
deposit of Shares resulting in the issuance of Uncertificated ADSs and with any
transfer, pledge, release and cancellation of Uncertificated ADSs, require the
prior receipt of such documentation as the Depositary may deem reasonably
appropriate, and (vii) upon termination of the Deposit Agreement, the
Depositary shall not require Holders of Uncertificated ADSs to affirmatively
instruct the Depositary before remitting proceeds from the sale of the
Deposited Securities represented by such Holders' Uncertificated ADSs under the
terms of Section 6.2 of the Deposit Agreement. When issuing ADSs under the
terms of the Deposit Agreement, including, without limitation, issuances
pursuant to Sections 2.5, 4.2, 4.3, 4.4, 4.5 and 4.11, the Depositary may in
its discretion determine to issue Uncertificated ADSs rather than Certificated
ADSs, unless otherwise specifically instructed by the applicable Holder to
issue Certificated ADSs. All provisions and conditions of the Deposit Agreement
shall apply to Uncertificated ADSs to the same extent as to Certificated ADSs,
except as contemplated by this Section 2.12. The Depositary is authorized and
directed to take any and all actions and establish any and all procedures
deemed reasonably necessary to give effect to the terms of this Section 2.12.
Any references in the Deposit Agreement or any ADR(s) to the terms "American
Depositary Share(s)" or "ADS(s)" shall, unless the context otherwise requires,
include Certificated ADS(s) and Uncertificated ADS(s). Except as set forth in
this Section 2.12 and except as required by applicable law, the Uncertificated
ADSs shall be treated as ADSs issued and outstanding under the terms of the
Deposit Agreement. In the event that, in determining the rights and obligations
of parties hereto with respect to any Uncertificated ADSs, any conflict arises
between (a) the terms of the Deposit Agreement (other than this Section 2.12)
and (b) the terms of this Section 2.12, the terms and conditions set forth in
this Section 2.12 shall be controlling and shall govern the rights and
obligations of the parties to the Deposit Agreement pertaining to the
Uncertificated ADSs.
Section 2.13 Restricted ADSs. The Depositary shall, at the request and
expense of the Company, establish procedures enabling the deposit hereunder of
Shares that are Restricted Securities in order to enable the holder of such
Shares to hold its ownership interests in such Restricted Shares in the form of
ADSs issued under the terms hereof (such Shares, "Restricted Shares").
Restricted ADSs shall only be issued in physical form, registered in the name
of the Holder of Restricted ADSs. Upon receipt of a written request from the
Company to accept Restricted Shares for deposit hereunder, the Depositary
agrees to establish procedures permitting the deposit of such Restricted Shares
and the issuance of ADSs representing such deposited Restricted Shares (such
ADSs, the "Restricted ADSs," and the ADRs evidencing such Restricted ADSs, the
"Restricted ADRs"). The Company shall assist the Depositary in the
establishment of such procedures and agrees that it shall take all steps
necessary and reasonably satisfactory to the Depositary to insure that the
establishment of such procedures does not violate the provisions of the
Securities Act or any other applicable laws. The depositors of such Restricted
Shares and the holders of the Restricted ADSs may be required prior to the
deposit of such Restricted Shares, the transfer of the Restricted ADRs and the
Restricted ADSs evidenced thereby or the withdrawal of the Restricted Shares
represented by Restricted ADSs to provide such written certifications or
agreements as the Depositary or the Company may require. The Company shall
provide to the Depositary in writing the legend(s) to be affixed to the
Restricted ADRs, which legends shall (i) be in a form reasonably satisfactory
to the Depositary and (ii) contain the specific circumstances under which the
Restricted ADRs and the Restricted ADSs represented thereby may be transferred
or the Restricted Shares withdrawn. The Restricted ADSs issued upon the deposit
of Restricted Shares shall be separately identified on the books of the
Depositary and the Restricted Shares so deposited shall be held separate and
distinct from the other Deposited Securities held hereunder. The Restricted
Shares and the Restricted ADSs shall not be eligible for Pre-Release
Transactions. The Restricted ADSs shall not be eligible for inclusion in any
book-entry settlement system, including, without limitation, DTC, and shall not
in any way be fungible with the ADSs issued under the terms hereof that are not
Restricted ADSs. The Restricted ADRs and the Restricted ADSs evidenced thereby
shall be transferable only by the Holder thereof upon delivery to the
Depositary of (i) all documentation otherwise contemplated by this Deposit
Agreement and (ii) an opinion of counsel reasonably satisfactory to the
Depositary setting forth, inter alia, the conditions upon which the Restricted
ADR presented is, and the Restricted ADSs evidenced thereby are, transferable
by the Holder thereof under applicable securities laws and the transfer
restrictions contained in the legend set forth on the Restricted ADR presented
for transfer. Except as set forth in this Section 2.13 and except as required
by applicable law, the Restricted ADRs and the Restricted ADSs evidenced
thereby shall be treated as ADRs and ADSs issued and outstanding under the
terms of the Deposit Agreement. In the event that, in determining the rights
and obligations of parties hereto with respect to any Restricted ADSs, any
conflict arises between (a) the terms of this Deposit Agreement (other than
this Section 2.13) and (b) the terms of (i) this Section 2.13 or (ii) the
applicable Restricted ADR, the terms and conditions set forth in this Section
2.13 and of the Restricted ADR shall be controlling and shall govern the rights
and obligations of the parties to this Deposit Agreement pertaining to the
deposited Restricted Shares, the Restricted ADSs and Restricted ADRs.
If the Restricted ADRs, the Restricted ADSs and the Restricted Shares
are no longer Restricted Securities, the Depositary, upon receipt of (x) an
opinion of counsel reasonably satisfactory to the Depositary setting forth,
inter alia, that the Restricted ADRs, the Restricted ADSs and the Restricted
Shares are not as of such time Restricted Securities, and (y) instructions from
the Company to remove the restrictions applicable to the Restricted ADRs, the
Restricted ADSs and the Restricted Shares, shall (i) eliminate the distinctions
and separations between the applicable Restricted Shares held on deposit under
this Section 2.13 and the other Shares held on deposit under the terms of the
Deposit Agreement that are not Restricted Shares, (ii) treat the newly
unrestricted ADRs and ADSs on the same terms as, and fully fungible with, the
other ADRs and ADSs issued and outstanding under the terms of the Deposit
Agreement that are not Restricted ADRs or Restricted ADSs, (iii) take all
actions necessary to remove any distinctions, limitations and restrictions
previously existing under this Section 2.13 between the applicable Restricted
ADRs and Restricted ADSs, respectively, on the one hand, and the other ADRs and
ADSs that are not Restricted ADRs or Restricted ADSs, respectively, on the
other hand, including, without limitation, by making the newly-unrestricted
ADSs eligible for Pre-Release Transactions and for inclusion in the applicable
book-entry settlement systems.
ARTICLE III
CERTAIN OBLIGATIONS OF HOLDERS
AND BENEFICIAL OWNERS OF ADSs
Section 3.1 Proofs, Certificates and Other Information. Any person
presenting Shares for deposit, any Holder and any Beneficial Owner may be
required, and every Holder and Beneficial Owner agrees, from time to time to
provide to the Depositary and the Custodian such proof of citizenship or
residence, taxpayer status, payment of all applicable taxes or other
governmental charges, exchange control approval, legal or beneficial ownership
of ADSs and Deposited Securities, compliance with applicable laws, the terms of
this Deposit Agreement or the ADR(s) evidencing the ADSs and the provisions of,
or governing, the Deposited Securities, to execute such certifications and to
make such representations and warranties, and to provide such other information
and documentation (or, in the case of Shares in registered form presented for
deposit, such information relating to the registration on the books of the
Company or of a Share Registrar) as the Depositary or the Custodian may
reasonably deem necessary or proper or as the Company may reasonably require by
written request to the Depositary consistent with its obligations under this
Deposit Agreement and the applicable ADR(s). The Depositary and the Registrar,
as applicable, may withhold the execution or delivery or registration of
transfer of any ADR or the distribution or sale of any dividend or distribution
of rights or of the proceeds thereof or, to the extent not limited by the terms
of Section 7.9 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, the Registrar's and the
Company's reasonable satisfaction. The Depositary shall provide the Company, in
a timely manner, with copies or originals if necessary and appropriate of (i)
any such proofs of citizenship or residence, taxpayer status, or exchange
control approval or copies of written representations or warranties which it
receives from Holders and Beneficial Owners, and (ii) any other information or
documents which the Company may reasonably request and which the Depositary
shall request and receive from any Holder or Beneficial Owner or any person
presenting Shares for deposit or ADSs for cancellation, transfer or withdrawal.
Nothing herein shall obligate the Depositary to (i) obtain any information for
the Company if not provided by the Holders or Beneficial Owners, or, except to
the extent that the Depositary is in possession of such information and that
the Depositary is not subject to any confidentiality undertaking with respect
to such information and not prohibited by law to release such information (ii)
verify or vouch for the accuracy of the information so provided by the Holders
or Beneficial Owners.
Section 3.2 Liability for Taxes and Other Charges. Any tax or other
governmental charge payable by the Custodian or by the Depositary with respect
to any ADR or any Deposited Securities or ADSs shall be payable by the Holders
and Beneficial Owners to the Depositary. The Company, the Custodian and/or the
Depositary may withhold or deduct from any distributions made in respect of
Deposited Securities and may sell for the account of a Holder and/or Beneficial
Owner any or all of the Deposited Securities and apply such distributions and
sale proceeds in payment of such taxes (including applicable interest and
penalties) or other governmental charges, the Holder and the Beneficial Owner
remaining liable for any deficiency. The Custodian may refuse the deposit of
Shares and the Depositary may refuse to issue ADSs, to deliver ADRs, register
the transfer, split-up or combination of ADRs and (subject to Section 7.9) the
withdrawal of Deposited Securities until payment in full of such tax, charge,
penalty or interest is received. Every Holder and Beneficial Owner agrees to
indemnify the Depositary, the Company, the Custodian, and any of their agents,
officers, employees and Affiliates for, and to hold each of them harmless from,
any claims with respect to taxes (including applicable interest and penalties
thereon) arising from any tax benefit obtained for such Holder and/or
Beneficial Owner.
Section 3.3 Representations and Warranties on Deposit of Shares. Each
person depositing Shares under the Deposit Agreement shall be deemed thereby to
represent and warrant that (i) such Shares and the certificates therefor are
duly authorized, validly issued, outstanding, fully paid, non-assessable and
legally obtained by such person, (ii) all preemptive (and similar) rights, if
any, with respect to such Shares have been validly waived or exercised, (iii)
the person making such deposit is duly authorized so to do, (iv) the Shares
presented for deposit are free and clear of any lien, encumbrance, security
interest, charge, mortgage or adverse claim, and (v) the Shares presented for
deposit are not, and the ADSs issuable upon such deposit will not be,
Restricted Securities (except as contemplated in Section 2.13) and (vi) the
Shares presented for deposit have not been stripped of any rights or
entitlements. Such representations and warranties shall survive the deposit and
withdrawal of Shares, the issuance and cancellation of ADSs in respect thereof
and the transfer of such ADSs. If any such representations or warranties are
false in any way, the Company and the Depositary shall be authorized, at the
cost and expense of the person depositing Shares, to take any and all actions
necessary to correct the consequences thereof.
Section 3.4 Compliance with Information Requests. Notwithstanding any
other provision of this Deposit Agreement or any ADR(s), each Holder and
Beneficial Owner agrees to comply with requests from the Company pursuant to
applicable law, the rules and requirements of the Stock Exchange of Hong Kong
Limited and NYSE, and any other stock exchange on which the Shares or ADSs are,
or will be, registered, traded or listed or the Memorandum and Articles of
Association of the Company, which are made to provide information, inter alia,
as to the capacity in which such Holder or Beneficial Owner owns ADSs (and
Shares, as the case may be) and regarding the identity of any other person(s)
interested in such ADSs and the nature of such interest and various other
matters, whether or not they are Holders and/or Beneficial Owners at the time
of such request. The Depositary agrees to use its reasonable efforts to
forward, upon the request of the Company and at the Company's expense, any such
request from the Company to the Holders and to forward to the Company any such
responses to such requests received by the Depositary and to use its reasonable
efforts, at the Company's request and expense, to assist the Company in
obtaining such information with respect to the ADSs evidenced by an ADR,
provided that nothing herein shall be interpreted as obligating the Depositary
to provide or obtain any such information (a) not provided to the Depositary by
such Holder and/or Beneficial Owner; or (b) the disclosure of which is
prohibited by applicable laws. The Company may also request the Depositary to
furnish the Company, at the Company's expense, with such information or
documents as the Company may require (to the extent the Depositary is in
possession of such information and the disclosure of such information is
permitted by applicable laws) in order to promote compliance with the
provisions of or governing the Deposited Securities and under the Company's
Articles of Association.
Section 3.5 Ownership Restrictions. Notwithstanding any other
provision in this Deposit Agreement or any ADR, the Company may restrict
transfers of the Shares where such transfer might result in ownership of Shares
exceeding limits imposed by applicable law or the Memorandum and Articles of
Association of the Company. The Company may also restrict, in such manner as it
deems appropriate, transfers of the ADSs where such transfer may result in the
total number of Shares represented by the ADSs owned by a single Holder or
Beneficial Owner to exceed any such limits. The Company may, in its sole
discretion but subject to applicable law, instruct the Depositary to take
action with respect to the ownership interest of any Holder or Beneficial Owner
in excess of the limits set forth in the preceding sentence, including, but not
limited to, the imposition of restrictions on the transfer of ADSs, the removal
or limitation of voting rights or mandatory sale or disposition on behalf of a
Holder or Beneficial Owner of the Shares represented by the ADSs held by such
Holder or Beneficial Owner in excess of such limitations, if and to the extent
such disposition is permitted by applicable law and the Memorandum and Articles
of Association of the Company.
ARTICLE IV
THE DEPOSITED SECURITIES
Section 4.1 Cash Distributions. Whenever the Depositary receives
confirmation from the Custodian of the receipt of any cash dividend or other
cash distribution on any Deposited Securities, or receives proceeds from the
sale of any Deposited Securities or any other entitlements held in respect of
Deposited Securities under the terms hereof, the Depositary will (i) if at the
time of receipt thereof any amounts received in a Foreign Currency can in the
judgment of the Depositary (pursuant to Section 4.8) be converted on a
practicable basis into Dollars transferable to the United States, promptly
convert or cause to be converted such cash dividend, distribution or proceeds
into Dollars (on the terms described in Section 4.8), (ii) if applicable,
establish the ADS Record Date upon the terms described in Section 4.9, and
(iii) distribute promptly the amount thus received (net of (a) the applicable
fees and charges of, and expenses incurred by, the Depositary (in each case, as
set forth in Section 5.9 and Exhibit B hereof); (b) governmental charges and
(c) taxes withheld) to the Holders entitled thereto as of the ADS Record Date
in proportion to the number of ADSs held as of the ADS Record Date. The
Depositary shall distribute only such amount, however, as can be distributed
without attributing to any Holder a fraction of one cent, and any balance not
so distributed shall be held by the Depositary (without liability for interest
thereon) and shall be added to and become part of the next sum received by the
Depositary for distribution to Holders of ADSs outstanding at the time of the
next distribution. If the Company, the Custodian or the Depositary is required
to withhold and does withhold from any cash dividend or other cash distribution
in respect of any Deposited Securities an amount on account of taxes, duties or
other governmental charges, the amount distributed to Holders on the ADSs
representing such Deposited Securities shall be reduced accordingly. Such
withheld amounts shall be forwarded by the Company, the Custodian or the
Depositary to the relevant governmental authority. Evidence of payment thereof
by the Company shall be forwarded by the Company to the Depositary upon
request. The Depositary or the Custodian, as the case may be, will 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 necessary reports
with governmental agencies, and the Depositary or the Company or its agent may
file any such reports necessary to obtain benefits under the applicable tax
treaties for Holders of ADSs.
Section 4.2 Distribution in Shares. If any distribution upon any
Deposited Securities consists of a dividend in, or free distribution of,
Shares, the Company shall cause such Shares to be deposited with the Custodian
and registered, as the case may be, in the name of the Depositary, the
Custodian or their respective nominees. Upon receipt of confirmation of such
deposit from the Custodian, the Depositary shall establish the ADS Record Date
upon the terms described in Section 4.9 and either (i) the Depositary shall,
subject to Section 5.9 hereof, distribute to the Holders as of the ADS Record
Date in proportion to the number of ADSs held as of the ADS Record Date,
additional ADSs to which they are entitled, 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 in each case, as set forth in Section 5.9 and Exhibit B hereof, (b)
governmental fees and (c) taxes), or (ii) if additional ADSs are not so
distributed, each ADS issued and outstanding after the ADS Record Date shall,
to the extent permissible by law, thenceforth also represent rights and
interests in the additional integral number of Shares distributed upon the
Deposited Securities represented thereby (net of (a) the applicable fees and
charges of, and expenses incurred by, the Depositary, in each case, as set
forth in Section 5.9 and Exhibit B hereof, (b) governmental fees and (c)
taxes). In lieu of delivering fractional ADSs, the Depositary shall sell the
number of Shares or ADSs, as the case may be, represented by the aggregate of
such fractions and distribute the net proceeds upon the terms described in
Section 4.1. In the event that the Depositary determines that any distribution
in property (including Shares) is subject to any tax or other governmental
charges which the Depositary is obligated to withhold, or, if the Company in
the fulfillment of its obligation under Section 5.7 hereof, has furnished an
opinion of U.S. counsel determining that Shares must be registered under the
Securities Act or other laws in order to be distributed to Holders (and no such
registration statement has been declared effective), the Depositary may,
following consultation with the Company, dispose of all or a portion of such
property (including Shares and rights to subscribe therefor) in such amounts
and in such manner, including by public or private sale, as the Depositary
deems necessary and practicable, and the Depositary shall distribute the net
proceeds of any such sale (after deduction of (a) the applicable fees and
charges of, and expenses incurred by, the Depositary in each case, as set forth
in Section 5.9 and Exhibit B hereof), (b) governmental charges and (c) taxes to
Holders entitled thereto upon the terms described in Section 4.1. The
Depositary shall hold and/or distribute any unsold balance of such property in
accordance with the provisions of this Deposit Agreement. To the extent that
new ADSs representing such Shares are not created and such Shares are not sold
or otherwise distributed in accordance with this section, each ADSs shall
thenceforth also represent such additional shares distributed upon the
Deposited Securities represented thereby.
Section 4.3 Elective Distributions in Cash or Shares. Whenever the
Company intends to make a distribution payable at the election of the holders
of Shares in cash or in additional Shares other than as provided in Sections
4.1 or 4.2, the Company shall give such timely notice thereof to the Depositary
as is reasonably practicable having regard to all applicable regulatory and
other requirements to which the Company is subject from time to time, stating
whether or not it wishes such elective distribution to be made available to
Holders of ADSs. Upon timely receipt of notice indicating that the Company
wishes such elective distribution to be made available to Holders of ADSs, the
Depositary shall consult with the Company to determine, and the Company shall
assist the Depositary in its determination, whether it is lawful and reasonably
practicable to make such elective distribution available to the Holders of
ADSs. The Depositary shall make such elective distribution available to Holders
only if (i) the Company shall have timely requested that the elective
distribution be made available to Holders, (ii) the Depositary shall have
determined that such distribution is reasonably practicable and (iii) the
Depositary shall have received satisfactory documentation within the terms of
Section 5.7. If the above conditions are not satisfied, the Depositary shall,
to the extent permitted by law, distribute to the Holders, on the basis of the
same determination as is made in the Cayman Islands in respect of the Shares
for which no election is made, either (X) cash upon the terms described in
Section 4.1 or (Y) additional ADSs representing such additional Shares upon the
terms described in Section 4.2. If the above conditions are satisfied, the
Depositary shall establish an ADS Record Date (on the terms described in
Section 4.9) and establish procedures to enable Holders to elect the receipt of
the proposed distribution in cash or in additional ADSs. The Company shall
assist the Depositary in establishing such procedures to the extent necessary.
If a Holder elects to receive the proposed distribution (X) in cash, the
distribution shall be made upon the terms described in Section 4.1, or (Y) in
ADSs, the distribution shall be made upon the terms described in Section 4.2.
Nothing herein shall obligate the Depositary to make available to Holders a
method to receive the elective distribution in Shares (rather than ADSs) if the
conditions above are not satisfied. There can be no assurance that Holders
generally, or any Holder in particular, will be given the opportunity to
receive elective distributions on the same terms and conditions as the holders
of Shares.
Section 4.4 Distribution of Rights to Purchase Additional ADSs.
(a) Distribution to ADS Holders. Whenever the Company intends to
distribute to the holders of the Deposited Securities rights to subscribe for
additional Shares, the Company shall give such timely notice thereof to the
Depositary as is reasonably practicable having regard to all applicable
regulatory and other requirements to which the Company is subject from time to
time, stating whether or not it wishes such rights to be made available to
Holders of ADSs. Upon timely receipt of a notice indicating that the Company
wishes such rights to be made available to Holders of ADSs, the Depositary
shall consult with the Company to determine, and the Company shall assist the
Depositary in its determination, whether it is lawful and reasonably
practicable to make such rights available to the Holders. The Depositary shall
make such rights available to Holders only if (i) the Company shall have timely
requested that such rights be made available to Holders, (ii) the Depositary
shall have received satisfactory documentation within the terms of Section 5.7,
and (iii) the Depositary shall have determined that such distribution of rights
is reasonably practicable. In the event any of the conditions set forth above
are not satisfied or if the Company requests that the rights not be made
available to Holders of ADSs, the Depositary shall proceed with the sale of the
rights as contemplated in Section 4.4(b) below. In the event all conditions set
forth above are satisfied, the Depositary shall establish an ADS Record Date
(upon the terms described in Section 4.9) and establish procedures to (x)
distribute rights to purchase additional ADSs (by means of warrants or
otherwise) in proportion to the number of ADSs held, (y) to enable the Holders
or holders of warrants, as the case may be, to exercise such rights or warrants
(upon payment of the subscription price and of the applicable (a) fees and
charges of, and expenses incurred by, the Depositary (in each case, as set
forth in Section 5.9 and Exhibit B hereof), (b) governmental charges and (c)
taxes) and, if applicable, to enable Holders or holders of warrants, as the
case may be, to sell or transfer such rights or warrants, as the case may be,
and (z) to deliver ADSs upon the valid exercise of such rights. The Company
shall assist the Depositary to the extent necessary in establishing such
procedures. Nothing herein shall obligate the Depositary to make available to
the Holders a method to exercise rights to subscribe for Shares (rather than
ADSs).
(b) Sale of Rights. If (i) the Company does not timely request the
Depositary to make the rights available to Holders or requests that the rights
not be made available to Holders, (ii) the Depositary fails to receive
satisfactory documentation within the terms of Section 5.7 or determines it is
not reasonably practicable to make the rights available to Holders, or (iii)
any rights made available are not exercised and appear to be about to lapse,
the Depositary shall, after consultation with the Company, determine whether it
is lawful and reasonably practicable to sell such rights, in a riskless
principal capacity, at such place and upon such terms (including public or
private sale) as it may deem practicable. The Depositary shall consult with the
Company to the extent necessary to determine such legality and practicability.
The Depositary shall, upon such sale, convert and distribute proceeds of such
sale (net of applicable (a) fees and charges of, and expenses incurred by, the
Depositary (in each case, as set forth in Section 5.9 and Exhibit B hereof),
(b) governmental charges and (c) taxes) upon the terms set forth in Section
4.1.
(c) Lapse of Rights. If the Depositary is unable to make any rights
available to Holders upon the terms described in Section 4.4(a) or to arrange
for the sale of the rights upon the terms described in Section 4.4(b), the
Depositary shall allow such rights to lapse.
Neither the Depositary nor the Company shall 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, or (ii)
any foreign exchange exposure or loss incurred in connection with such sale or
exercise. The Depositary shall not be responsible for the content of any
materials forwarded to the Holders on behalf of the Company in connection with
the rights distribution.
Notwithstanding anything to the contrary in this Section 4.4, if
registration (under the Securities Act or any other applicable law) of the
rights or the securities to which any rights relate may be required in order
for the Company to offer such rights or such securities to Holders and to sell
the securities represented by such rights, the Depositary will not distribute
such rights to the Holders (i) unless and until a registration statement under
the Securities Act (or other applicable law) covering such offering is in
effect or (ii) unless the Company furnishes the Depositary 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
reasonably satisfactory to the Depositary, to the effect that the offering and
sale of such securities to Holders and Beneficial Owners are exempt from, or do
not require registration under, the provisions of the Securities Act or any
other applicable laws.
In the event that the Company, the Depositary or the Custodian shall
be required to withhold and does withhold from any distribution of property
(including rights) an amount on account of taxes or other governmental charges,
the amount distributed to the Holders of ADSs representing such Deposited
Securities shall be reduced accordingly. In the event that the Depositary
determines that any distribution in property (including Shares and rights to
subscribe therefor) is subject to any tax or other governmental charges which
the Depositary is obligated to withhold, the Depositary may dispose of all or a
portion of such property (including Shares and rights to subscribe therefor) in
such amounts and in such manner, including by public or private sale, as the
Depositary deems necessary and practicable to pay any such taxes or charges.
There can be no assurance that Holders generally, or any Holder in
particular, will be given the opportunity to receive or exercise rights on the
same terms and conditions as the holders of Shares or be able to exercise such
rights. Nothing herein shall obligate the Company to file any registration
statement in respect of any rights or Shares or other securities to be acquired
upon the exercise of such rights.
Section 4.5 Distributions Other Than Cash, Shares or Rights to
Purchase Shares.
(a) Whenever the Company intends to distribute to the holders of
Deposited Securities property other than cash, Shares or rights to purchase
additional Shares, the Company shall give timely notice thereof to the
Depositary and shall indicate whether or not it wishes such distribution to be
made to Holders of ADSs. Upon receipt of a notice indicating that the Company
wishes such distribution be made to Holders of ADSs, the Depositary shall
consult with the Company, and the Company shall assist the Depositary, to
determine whether such distribution to Holders is lawful and reasonably
practicable. The Depositary shall not make such distribution unless (i) the
Company shall have requested the Depositary to make such distribution to
Holders, (ii) the Depositary shall have received satisfactory documentation
within the terms of Section 5.7, and (iii) the Depositary, after consulting
with the Company, shall have determined that such distribution is reasonably
practicable.
(b) Upon receipt of satisfactory documentation and the request of the
Company to distribute property to Holders of ADSs and after making the
requisite determinations set forth in (a) above, the Depositary shall
distribute the property so received to the Holders of record, as of the ADS
Record Date, in proportion to the number of ADSs held by them respectively and
in such manner as the Depositary may deem practicable for accomplishing such
distribution (i) upon receipt of payment or net of the applicable fees and
charges of, and expenses incurred by, the Depositary (in each case, as set
forth in Section 5.9 and Exhibit B hereof), (ii) net of governmental charges
and (iii) net of any taxes withheld. The Depositary may dispose of all or a
portion of the property so distributed and deposited, in such amounts and in
such manner (including public or private sale) as the Depositary may deem
practicable or necessary to satisfy any taxes (including applicable interest
and penalties) or other governmental charges applicable to the distribution.
(c) If (i) the Company does not request the Depositary to make such
distribution to Holders or requests not to make such distribution to Holders,
(ii) the Depositary does not receive satisfactory documentation within the
terms of Section 5.7, or (iii) the Depositary determines that all or a portion
of such distribution is not reasonably practicable, the Depositary shall sell
or cause such property to be sold in a public or private sale, at such place or
places and upon such terms as it may deem practicable and shall (i) cause the
proceeds of such sale, if any, to be converted into Dollars and (ii) distribute
the proceeds of such conversion received by the Depositary (net of applicable
(a) fees and charges of, and expenses incurred by, the Depositary, in each
case, as set forth in Section 5.9 and Exhibit B hereof, (b) governmental
charges and (c) taxes) to the Holders as of the ADS Record Date upon the terms
of Section 4.1. If the Depositary is unable to sell such property, the
Depositary may dispose of such property for the account of the Holders in any
way it deems reasonably practicable under the circumstances.
(d) Neither the Depositary nor the Company shall be responsible for
(i) any failure to determine whether it is lawful or practicable to make the
property described in this Section 4.5 available to Holders in general or any
Holders in particular, and (ii) any foreign exchange exposure or loss incurred
in connection with the sale or disposal or such property.
Section 4.6 Distributions with Respect to Deposited Securities in
Bearer Form. Subject to the terms of this Article IV, distributions in respect
of Deposited Securities that are held by the Depositary in bearer form shall be
made to the Depositary for the account of the respective Holders of ADRs with
respect to which any such distribution is made upon due presentation by the
Depositary or the Custodian to the Company of any relevant coupons, talons, or
certificates. The Company shall promptly notify the Depositary of such
distributions. The Depositary or the Custodian shall promptly present such
coupons, talons or certificates, as the case may be, in connection with any
such distribution.
Section 4.7 Redemption. If the Company intends to exercise any right
of redemption in respect of any of the Deposited Securities, the Company shall
give such timely notice thereof to the Depositary as is reasonably practicable
having regard to all applicable regulatory and other requirements to which the
Company is subject from time to time, which notice shall set forth the
particulars of the proposed redemption. Upon timely receipt of (i) such notice
and (ii) satisfactory documentation given by the Company to the Depositary
within the terms of Section 5.7, and only if the Depositary shall have
determined that such proposed redemption is practicable, the Depositary shall
provide to each Holder a notice setting forth the intended exercise by the
Company of the redemption rights and any other particulars set forth in the
Company's notice to the Depositary. The Depositary shall instruct the Custodian
to present to the Company the Deposited Securities in respect of which
redemption rights are being exercised against payment of the applicable
redemption price. Upon receipt of confirmation from the Custodian that the
redemption has taken place and that funds representing the redemption price
have been received, the Depositary shall convert, transfer, and distribute the
proceeds (net of applicable (a) fees and charges of, and the expenses incurred
by, the Depositary (in each case, as set forth in Section 5.9 and Exhibit B
hereof), (b) governmental charges, and (c) taxes), retire ADSs and cancel ADRs
upon delivery of such ADSs by Holders thereof and the terms set forth in
Sections 4.1 and 6.2 hereof. If less than all outstanding Deposited Securities
are redeemed, the ADSs to be retired will be selected by lot or on a pro rata
basis, as may be determined by the Depositary. The redemption price per ADS
shall be the dollar equivalent of the per share amount received by the
Depositary (adjusted to reflect the ADS(s)-to-Share(s) ratio) upon the
redemption of the Deposited Securities represented by ADSs (subject to the
terms of Section 4.8 hereof and the applicable fees and charges of, and
expenses incurred by, the Depositary (in each case, as set forth in Section 5.9
and Exhibit B hereof), governmental charges and taxes) multiplied by the number
of Deposited Securities represented by each ADS redeemed.
Section 4.8 Conversion of Foreign Currency. Whenever the Depositary or
the Custodian shall receive Foreign Currency, by way of dividends or other
distributions or the net proceeds from the sale of securities, property or
rights, which in the reasonable judgment of the Depositary can at such time be
converted on a practicable basis, by sale or in any other manner that it may
determine in accordance with applicable law, into Dollars transferable to the
United States and distributable to the Holders entitled thereto, the Depositary
shall, reasonably promptly, convert or cause to be converted, by sale or in any
other manner that it may determine, such Foreign Currency into Dollars, and
shall distribute such Dollars (net of any applicable fees, any reasonable and
customary expenses incurred in such conversion and any expenses incurred on
behalf of the Holders in complying with currency exchange control or other
governmental requirements) to Holders entitled thereto 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 any application of
exchange restrictions or otherwise.
If such conversion or distribution generally or with regard to a
particular Holder can be effected only with the approval or license of any
government or agency thereof, the Depositary shall have authority to file such
application for approval or license, if any, as it may deem desirable acting in
good faith. In no event, however, shall the Depositary be obligated to make
such a filing.
If at any time the Depositary shall determine that in its judgment the
conversion of any Foreign Currency and the transfer and distribution of
proceeds of such conversion received by the Depositary is not reasonably
practicable or lawful, or if any approval or license of any governmental
authority or agency thereof that is required for such conversion, transfer and
distribution is denied or, in the good faith opinion of the Depositary, not
obtainable at a reasonable cost or within a reasonable period, the Depositary
may, in its discretion, (i) make such conversion and distribution in Dollars to
the Holders for whom such conversion, transfer and distribution is lawful and
practicable, (ii) distribute the Foreign Currency (or an appropriate document
evidencing the right to receive such Foreign Currency) to Holders for whom this
is lawful and practicable or (iii) hold (or cause the Custodian to hold) such
Foreign Currency (without liability for interest thereon) for the respective
accounts of the Holders entitled to receive the same.
Section 4.9 Fixing of ADS Record Date. Whenever the Depositary shall
receive notice of the fixing of a record date by the Company for the
determination of holders of Deposited Securities entitled to receive any
distribution (whether in cash, Shares, rights, or other distribution), or
whenever for any reason the Depositary causes a change in the number of Shares
that are represented by each ADS, or whenever the Depositary shall receive
notice of any meeting of, or solicitation of consents or proxies of, holders of
Shares or other Deposited Securities, or whenever the Depositary shall find it
necessary or convenient in connection with the giving of any notice,
solicitation of any consent or any other matter, the Depositary shall, after
consultation with the Company, fix a record date (the "ADS Record Date") for
the determination of the Holders of ADRs who shall be entitled to receive such
distribution, to give instructions for the exercise of voting rights at any
such meeting, to give or withhold such consent, to receive such notice or
solicitation or to otherwise take action, or to exercise the rights of Holders
with respect to such changed number of Shares represented by each ADS. The
Depositary shall make reasonable efforts to establish the ADS Record Date as
closely as possible to the applicable record date for the Deposited Securities
(if any) set by the Company in Hong Kong. Subject to applicable law and the
provisions of Section 4.1 through 4.8 and to the other terms and conditions of
this Deposit Agreement, only the Holders of ADRs at the close of business in
New York on such ADS Record Date shall be entitled to receive such
distribution, to give such voting instructions, to receive such notice or
solicitation, or otherwise take action.
Section 4.10 Voting of Deposited Securities. As soon as practicable
after receipt of notice of any meeting at which the holders of Deposited
Securities are entitled to vote, or of solicitation of consents or proxies from
holders of Deposited Securities, the Depositary shall fix the ADS Record Date
in respect of such meeting or solicitation of consent or proxy in accordance
with Section 4.9. The Depositary shall, as soon as practicable, if requested by
the Company in writing in a timely manner (the Depositary having no obligation
to take any further action if the request shall not have been received by the
Depositary at least thirty (30) days prior to the date of such vote or
meeting), at the Company's expense and provided no U.S. legal prohibitions
exist, distribute to Holders as of the ADS Record Date: (a) such notice of
meeting or solicitation of consent or 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 Memorandum
and Articles of Association of the Company and the provisions of or governing
the Deposited Securities (which provisions, if any, shall be summarized in
pertinent part by the Company), to instruct the Depositary as to the exercise
of the voting rights, if any, pertaining to the Deposited Securities
represented by such Holder's ADSs, and (c) a brief statement as to the manner
in which such voting instructions may be given, including an express indication
that such instructions may be given or deemed given in accordance with the last
sentence of the following paragraph if no instruction is received, to the
Depositary to give a discretionary proxy to a person designated to the Company.
Voting instructions may be given only in respect of a number of ADSs
representing an integral number of Deposited Securities. Upon the timely
receipt from a Holder of ADSs as of the ADS Record Date of voting instructions
in the manner specified by the Depositary, the Depositary shall endeavor,
insofar as practicable and permitted under applicable law, the provisions of
this Deposit Agreement, Memorandum and Articles of Association of the Company
and the provisions of the Deposited Securities, to vote, or cause the Custodian
to vote, the Deposited Securities (in person or by proxy) represented by such
Holder's ADSs in accordance with such voting instructions.
Neither the Depositary nor the Custodian shall under any circumstances
exercise any discretion as to voting and neither the Depositary nor the
Custodian shall vote, attempt to exercise the right to vote, or in any way make
use of for purposes of establishing a quorum or otherwise, the Deposited
Securities represented by ADSs, except pursuant to and in accordance with the
voting instructions (including those received in electronic form) timely
received from Holders or as otherwise contemplated herein. If the Depositary
timely receives voting instructions from a Holder which fail to specify the
manner in which the Depositary is to vote the Deposited Securities represented
by such Holder's ADSs, the Depositary will deem such Holder (unless otherwise
specified in the notice distributed to Holders) to have instructed the
Depositary to vote in favor of the items set forth in such voting instructions.
Notwithstanding the foregoing sentence, if (i) the Company timely provides
notice to the Depositary pursuant to the provision of the second sentence of
this Section 4.10 and (ii) no instructions are received by the Depositary from
a Holder with respect to any of the Deposited Securities represented by the
American Depositary Shares evidenced by such Holder's ADRs on or before the
date established by the Depositary for such purpose, the Depositary shall 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 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 such proxy given,
(y) the Company is aware that substantial opposition exists or (z) such matter
materially and adversely affects the rights of holders of Shares; provided,
further, that the Company will have no liability to any Holder or Beneficial
Owner resulting from such notification. Notwithstanding anything else contained
herein, the Depositary shall, if so requested in writing by the Company,
represent all Deposited Securities (whether or not voting instructions have
been received in respect of such Deposited Securities from Holders as of the
ADS Record Date) for the sole purpose of establishing quorum at a meeting of
shareholders.
Notwithstanding any other provision in this Deposit Agreement, the
Company's board of directors may, pursuant to the provisions of or governing
the Deposited Securities, suspend the voting rights of any Deposited
Securities. If the Company's board of directors suspends such rights, the
Company will promptly provide a notice to the Depositary, specifying (i) the
identity of the Holder or Beneficial Owner to be disenfranchised of its voting
rights with respect to ADSs evidenced by ADRs, (ii) the matters upon which such
Holder or Beneficial Owner may not vote or instruct the Depositary or Custodian
to vote the Deposited Securities and (iii) instructions to the Depositary with
respect to such other actions as it may deem necessary or desirable to enforce
the restrictions on the exercise of voting rights set forth in the preceding
sentence. The Depositary will use all reasonable efforts to comply with such
Company instructions (provided such instructions are in compliance with
applicable laws), and Holders and Beneficial Owners of ADRs agree to comply
with any Company instructions in respect of any such restrictions or
instructions.
Notwithstanding anything else contained in this Deposit Agreement or
any Receipt, the Depositary shall not have any obligation to take any action
with respect to any meeting, or solicitation of consents or proxies, of holders
of Deposited Securities if the taking of such action would violate U.S. laws.
The Company agrees to take any and all actions reasonably necessary to enable
Holders and Beneficial Owners to exercise the voting rights accruing to the
Deposited Securities and to deliver to the Depositary an opinion of U.S.
counsel addressing any actions requested to be taken if so reasonably requested
by the Depositary.
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.
Subject to the applicable laws or rules of any securities exchange on
which the Deposited Securities are listed or traded, at least three (3) days
prior to the date of such meeting, the Depositary shall, if requested and at
the expense of the Company, deliver to the Company copies of all voting
instructions received from Holders or Receipts, if any, in accordance with
which the Depositary will vote, or cause the Custodian to vote, the Deposited
Securities represented by the ADSs evidenced by such ADRs at such meeting.
Section 4.11 Changes Affecting Deposited Securities. Upon any change
in nominal or par value, split-up, cancellation, consolidation or any other
reclassification of Deposited Securities, or upon any recapitalization,
reorganization, merger or consolidation or sale of assets affecting the Company
or to which it is a party, any securities which shall be received by the
Depositary or the Custodian in exchange for, or in conversion of or replacement
of or otherwise in respect of, such Deposited Securities shall, to the extent
permitted by law, be treated as new Deposited Securities under this Deposit
Agreement, and the ADSs shall, subject to the terms of this Deposit Agreement,
and applicable laws, including any applicable provisions of the Securities Act
and the Securities Exchange Act of 1934, thenceforth represent the new
Deposited Securities so received, unless additional or new ADSs are created
pursuant to the following sentence. The Depositary may, with the Company's
approval, and shall, if the Company shall so request, subject to the terms of
the Deposit Agreement and receipt of an opinion of counsel to the Company
satisfactory to the Depositary that such distributions are not in violation of
any applicable laws or regulations, execute and deliver additional ADRs as in
the case of a stock dividend on the Shares, or call for the surrender of
outstanding ADRs to be exchanged for new ADRs, in either case, as well as in
the event of newly deposited Shares, with necessary modifications to the form
of ADR contained in Exhibit A hereto, specifically describing such new
Deposited Securities or corporate change. The Company agrees to, jointly with
the Depositary, amend the Registration Statement on Form F-6 as filed with the
Commission to permit the issuance of such new form of ADRs. Notwithstanding the
foregoing, in the event that any security so received may not be lawfully
distributed to some or all Holders in the reasonable judgment of the Depositary
after consultation with the Company, the Depositary may, with the Company's
approval, and shall, if the Company requests, subject to receipt of an opinion
of Company's counsel reasonably satisfactory to the Depositary that such action
is not in violation of any applicable laws or regulations, sell such securities
at public or private sale, at such place or places and upon such terms as it
may deem proper and may allocate the net proceeds of such sales (net of (a)
applicable fees and charges of, and expenses incurred by, the Depositary, in
each case, as set forth in Section 5.9 and Exhibit B hereof, (b) governmental
charges and (c) taxes) for the account of the Holders otherwise entitled to
such securities upon an averaged or other practicable basis without regard to
any distinctions among such Holders and distribute the net proceeds so
allocated to the extent practicable as in the case of a distribution received
in cash pursuant to Section 4.1. Neither the Depositary nor the Company shall
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. As soon as reasonably practicable following receipt of notice of
the occurrence of any such change, conversion or exchange covered by this
Section in respect of the Deposited Securities, the Depositary shall, subject
to applicable law, give notice thereof in writing, at the Company's expense, to
all Holders.
Section 4.12 Available Information. The Company is subject to the
periodic reporting requirements of the Exchange Act and accordingly files
certain information with the Commission. These reports and documents can be
inspected and copied at the public reference facilities maintained by the
Commission located at Judiciary Plaza, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇.▇., ▇▇▇▇▇▇▇▇▇▇ ▇.▇.
▇▇▇▇▇.
Section 4.13 Reports. The Depositary shall make available for
inspection by Holders at its Principal Office any reports and communications,
including any proxy soliciting materials, received from the Company which are
both (a) received by the Depositary, the Custodian, or the nominee of either of
them as the holder of the Deposited Securities and (b) made generally available
to the holders of such Deposited Securities by the Company. The Depositary
shall also provide to Holders copies of such reports when furnished by the
Company pursuant to Section 5.6.
Section 4.14 List of Holders. Promptly upon written request by the
Company, the Depositary shall furnish to it a list, as of a recent date, of the
names, addresses and holdings of ADSs of all Holders.
Section 4.15 Taxation. The Depositary will, and will instruct the
Custodian to, forward to the Company or its agents such information from its
records as the Company may reasonably request to enable the Company or its
agents to file the necessary tax reports with governmental authorities or
agencies. The Depositary, the Custodian or the Company and its agents may file
such reports as are necessary to reduce or eliminate applicable taxes on
dividends and on other distributions in respect of Deposited Securities under
applicable tax treaties or laws for the Holders and Beneficial Owners. In
accordance with instructions from the Company and to the extent practicable,
the Depositary or the Custodian will take reasonable administrative actions to
obtain tax refunds, reduced withholding of tax at source on dividends and other
benefits under applicable tax treaties or laws with respect to dividends and
other distributions on the Deposited Securities. As a condition to receiving
such benefits, Holders and Beneficial Owners of ADSs may be required from time
to time, and in a timely manner, to file such proof of taxpayer status,
residence and beneficial ownership (as applicable), to execute such
certificates and to make such representations and warranties, or to provide any
other information or documents, as the Depositary or the Custodian may deem
necessary or proper to fulfill the Depositary's or the Custodian's obligations
under applicable law. The Depositary and the Company shall have no obligation
or liability to any person if any Holder or Beneficial Owner fails to provide
such information or if such information does not reach relevant tax authorities
in time for any Holder or Beneficial Owner to obtain the benefit of any tax
treaty. The Holders and Beneficial Owners shall indemnify the Depositary, the
Company, the Custodian and any of their respective directors, employees, agents
and Affiliates against, and hold each of them harmless from, any claims by any
governmental authority with respect to taxes, additions to tax, penalties or
interest arising out of any refund of taxes, reduced rate of withholding at
source or other tax benefit obtained.
If the Company (or any of its agents) withholds from any distribution
any amount on account of taxes or governmental charges, or pays any other tax
in respect of such distribution (i.e., stamp duty tax, capital gains or other
similar tax), the Company shall (and shall cause such agent to) remit promptly
to the Depositary information about such taxes or governmental charges withheld
or paid, and, if so requested, the tax receipt (or other proof of payment to
the applicable governmental authority) therefor, in each case, in a form
reasonably satisfactory to the Depositary. The Depositary shall, to the extent
required by U.S. law, report to Holders any taxes withheld by it or the
Custodian, and, if such information is provided to it by the Company, any taxes
withheld by the Company. The Depositary and the Custodian shall not be required
to provide the Holders with any evidence of the remittance by the Company (or
its agents) of any taxes withheld, or of the payment of taxes by the Company,
except to the extent the evidence is provided by the Company to the Depositary
or the Custodian, as applicable. Neither the Depositary nor the Custodian shall
be liable for the failure by any Holder or Beneficial Owner to obtain the
benefits of credits on the basis of non-U.S. tax paid against such Holder's or
Beneficial Owner's income tax liability.
Notwithstanding any other provision of this Deposit Agreement, before
making any distribution or other payment on any Deposited Securities, the
Company or its agent shall make such deductions (if any) which, by the laws of
the Cayman Islands, the Company or its agent is required to make in respect of
any income, capital gains or other taxes and the Company or its agent may also
deduct the amount of any tax or governmental charges payable by the Company or
its agent or for which the Company or its agent might be made liable in respect
of such distribution or other payment or any document signed in connection
therewith. In making such deductions, the Company and its agent shall have no
obligation to any Holder or Beneficial Owner to apply a rate under any treaty
or other arrangement between the Cayman Islands and the country within which
such Holder or Beneficial Owner is resident unless such Holder or Beneficial
Owner has timely provided to the Company or its agent evidence of the residency
of such Holder or Beneficial Owner that is accepted by the relevant tax
authorities of the Cayman Islands. The Depositary is under no obligation to
provide the Holders and Beneficial Owners with any information about the tax
status of the Company (other than as specified below). The Depositary shall not
incur any liability for any tax consequences that may be incurred by Holders
and Beneficial Owners on account of their ownership of the ADSs, including
without limitation, tax consequences resulting from the Company (or any of its
subsidiaries) being treated as a "Foreign Personal Holding Company," or as a
"Passive Foreign Investment Company" (in each case as defined in the U.S.
Internal Revenue Code and the regulations issued thereunder) or otherwise.
ARTICLE V
THE DEPOSITARY, THE CUSTODIAN AND THE COMPANY
Section 5.1 Maintenance of Office and Transfer Books by the Registrar.
Until termination of this Deposit Agreement in accordance with its terms, the
Registrar shall maintain in the Borough of Manhattan, the City of New York, an
office and facilities for the execution and delivery, registration of
issuances, registration of transfers, combination and split-up of ADRs, and the
surrender of ADRs for the purpose of withdrawal of Deposited Securities in
accordance with the provisions of this Deposit Agreement.
The Registrar shall keep books for the registration of issuances and
transfers of ADRs which at all reasonable times shall be open for inspection by
the Company and by the Holders, provided that such inspection shall not be, to
the Registrar's knowledge, for the purpose of communicating with Holders in the
interest of a business or object other than the business of the Company or
other than a matter related to this Deposit Agreement or the ADRs.
Upon notice to the Company, the Registrar may close the transfer books
with respect to the ADRs, at any time or from time to time, but only for such
duration as the Registrar reasonably determines to be necessary or essential
for the due discharge of its obligations, or at the reasonable written request
of the Company subject, in all cases, to Section 7.9 hereof.
If any ADRs or the ADSs evidenced thereby are listed on one or more
stock exchanges or automated quotation systems in the United States, the
Depositary shall act as Registrar or, with the approval of the Company, appoint
a Registrar or one or more co-registrars for registration of ADRs and
transfers, combinations and split-ups, and to countersign such ADRs in
accordance with any requirements of such exchange or exchanges or system or
systems. Such Registrar or co-registrars may be removed and a substitute or
substitutes appointed by the Depositary after consultation with the Company or
upon the reasonable request of the Company.
Section 5.2 Exoneration. The Depositary and the Company undertake to
perform such duties and only such duties as are specifically set forth in this
Deposit Agreement, and no implied covenants or obligations shall be read into
this Deposit Agreement against the Depositary or the Company. Neither the
Depositary nor the Company shall be obligated to do or perform any act which is
inconsistent with the provisions of this Deposit Agreement or incur any
liability (i) if the Depositary or the Company shall be prevented or forbidden
from, or delayed in, doing or performing any act or thing required by the terms
of this Deposit Agreement, by reason of any provision of any present or future
law or regulation of the United States, 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 of the Company or any provision of or governing any
Deposited Securities, or by reason of any act of God or war or other
circumstances beyond its control (including, without limitation,
nationalization, expropriation, currency restrictions, work stoppage, strikes,
civil unrest, acts of terrorism, revolutions, rebellions, explosions and
computer failure), (ii) by reason of any exercise of, or failure to exercise,
any discretion provided for in this Deposit Agreement or in the Memorandum and
Articles of Association of the Company or provisions of or governing Deposited
Securities, (iii) for any action or inaction in reliance upon the advice of or
information from legal counsel, accountants, any person presenting Shares for
deposit, any Holder, any Beneficial Owner or authorized representative thereof,
or any other person believed by it in good faith to be competent to give such
advice or information, (iv) for the inability by a Holder or Beneficial Owner
to benefit from any distribution, offering, right or other benefit which is
made available to holders of Deposited Securities but is not, under the terms
of this Deposit Agreement, made available to Holders of ADSs, or (v) for any
consequential or punitive damages for any breach of the terms of this Deposit
Agreement. Except as otherwise provided herein, the Company and the Depositary
assume no liability for any act taken or for any failure to take any act
required to be taken hereunder.
The Depositary, its directors, officers, employees, agents and
Affiliates, as well as the Custodian and the Company, their respective
directors, officers, employees, agents and Affiliates, may rely and shall be
protected in acting upon any written notice, request or other document believed
by it to be genuine and to have been signed or presented by the proper party or
parties.
No disclaimer of liability under the Securities Act is intended by any
provision of this Deposit Agreement.
Section 5.3 Standard of Care. The Company, the Depositary and their
respective agents assume no obligation and shall not be subject to any
liability under this Deposit Agreement or any ADRs to any Holder(s) or
Beneficial Owner(s), except that the Company and the Depositary agree to
perform their respective obligations specifically set forth in this Deposit
Agreement or the applicable ADRs without negligence or bad faith.
Without limitation of the foregoing, neither the Depositary, nor the
Company, nor any of their respective directors, officers, employees, agents or
Affiliates, shall be under any obligation to appear in, prosecute or defend any
action, suit or other proceeding in respect of any Deposited Securities or in
respect of the ADRs, which in its opinion may involve it in expense or
liability, unless indemnity satisfactory to it against all expense (including
fees and disbursements of counsel) and liability be furnished as often as may
be required (and no Custodian shall be under any obligation whatsoever with
respect to such proceedings, the responsibility of the Custodian being solely
to the Depositary).
Neither the Depositary and its agents nor the Company shall be liable
for any failure to carry out any instructions to vote any of the Deposited
Securities, or for the manner in which any vote is cast or the effect of any
vote, provided that any such action or omission is in good faith and in
accordance with the terms of this Deposit Agreement. Neither the Depositary nor
the Company shall incur any liability for any failure to determine that any
distribution or action may be lawful or reasonably practicable, for any
investment risk associated with acquiring an interest in the Deposited
Securities, for the validity or worth of the Deposited Securities, for any tax
consequences that may result from the ownership of ADSs, Shares or Deposited
Securities or for the credit-worthiness of any third party. The Depositary
shall not incur any liability 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 allowing any rights to lapse upon the terms of this
Deposit Agreement or for the failure or timeliness of any notice from the
Company.
Section 5.4 Resignation and Removal of the Depositary; Appointment of
Successor Depositary. The Depositary may at any time resign as Depositary
hereunder by 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 be entitled to take the
actions contemplated in Section 6.2 hereof), or (ii) the appointment by the
Company of a successor depositary and its acceptance of such appointment as
hereinafter provided.
The Depositary may at any time be removed by the Company by written
notice of such removal, which removal shall be effective on the earlier of (i)
the 90th day after delivery thereof to the Depositary (whereupon the Depositary
shall be entitled to take the actions contemplated in Section 6.2 hereof), or
(ii) upon the appointment by the Company of a successor depositary and its
acceptance of such appointment as hereinafter provided.
In case at any time the Depositary acting hereunder shall resign or be
removed, the Company shall use its best efforts to appoint a successor
depositary, which shall be a bank or trust company having an office in the
Borough of Manhattan, the City of New York. Every successor depositary shall be
required by the Company to execute and deliver to its predecessor and to the
Company an instrument in writing accepting its appointment hereunder, and
thereupon such successor depositary, without any further act or deed (except as
required by applicable law), shall become fully vested with all the rights,
powers, duties and obligations of its predecessor (other than as contemplated
in Sections 5.8 and 5.9). The predecessor depositary, upon payment of all sums
due it and on the written request of the Company shall, (i) execute and deliver
an instrument transferring to such successor all rights and powers of such
predecessor hereunder (other than as contemplated in Sections 5.8 and 5.9),
(ii) duly assign, transfer and deliver all right, title and interest to the
Deposited Securities to such successor, and (iii) deliver to such successor a
list of the Holders of all outstanding ADRs and such books and records
maintained by such predecessor with respect to its function as Depositary
hereunder, and such other information relating to ADRs and Holders thereof as
the successor may reasonably request. Any such successor depositary shall
promptly, at its own cost, 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.
Section 5.5 The Custodian. The Depositary has initially appointed
Citibank, N.A., Hong Kong as Custodian and agent for the purpose of this
Deposit Agreement. The Custodian or its successors in acting hereunder shall be
subject at all times and in all respects to the direction of the Depositary for
the Shares for which the Custodian acts as custodian and shall be responsible
solely to it. If any Custodian resigns or is discharged from its duties
hereunder with respect to any Deposited Securities and no other Custodian has
previously been appointed hereunder, the Depositary shall promptly, and after
consultation with the Company, appoint a substitute custodian that is organized
under the laws of Hong Kong. Such resignation of the Custodian shall take
effect upon the appointment of a successor custodian and its acceptance of such
appointment. The Depositary shall require such resigning or discharged
Custodian to deliver the Deposited Securities held by it, together with all
such records maintained by it as Custodian with respect to such Deposited
Securities as the Depositary may request, to the Custodian designated by the
Depositary. Whenever the Depositary determines, after consultation with the
Company (if such consultation is practicable in the opinion of the Depositary),
that it is appropriate to do so, it may appoint an additional custodian with
respect to any Deposited Securities, or discharge the Custodian with respect to
any Deposited Securities and appoint a substitute custodian, which shall
thereafter be Custodian hereunder with respect to the Deposited Securities.
Immediately upon any such change, the Depositary shall give notice thereof in
writing to all Holders of ADRs, each other Custodian and the Company.
Upon the appointment of any successor depositary, any Custodian then
acting hereunder shall, unless otherwise instructed by the Depositary, continue
to be the Custodian of the Deposited Securities and agent of such successor
depositary 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 as agent hereunder of
such successor depositary.
Section 5.6 Notices and Reports. On or before the first date on which
the Company gives notice, by publication or otherwise, of any meeting of
holders of Shares or other Deposited Securities, or of any adjourned meeting of
such holders, or of the taking of any action by such holders other than at a
meeting, or of the taking of any action in respect of any cash or other
distributions or the offering of any rights in respect of Deposited Securities,
the Company shall transmit to the Depositary and the Custodian a copy of the
notice thereof in the English language but otherwise in the form given or to be
given to holders of Shares or other Deposited Securities. The Company shall
also furnish to the Custodian and the Depositary a summary, in English, of any
applicable provisions or proposed provisions of the Memorandum and Articles of
Association of the Company that may be relevant or pertain to such notice of
meeting or be the subject of a vote thereat.
The Company will also transmit to the Depositary (a) an English
language version of the other notices, reports and communications (to the
extent required pursuant to any regulations of the Commission) which are made
generally available by the Company to holders of its Shares or other Deposited
Securities and (b) the English-language versions of the Company's annual
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, to provide copies thereof to all Holders or make such
notices, reports and other communications available to all Holders on a basis
similar to that for holders of Shares or other Deposited Securities or on such
other basis as the Company may advise the Depositary or as may be required by
any applicable law, regulation or stock exchange requirement. The Company has
delivered to the Depositary and the Custodian a copy of the Company's
Memorandum and Articles of Association along with the provisions of or
governing the Shares and any other Deposited Securities issued by the Company
in connection with such Shares, and promptly upon any amendment thereto or
change therein, the Company shall deliver to the Depositary and the Custodian a
copy of such amendment thereto or change therein. The Depositary may rely upon
such copy for all purposes of this Deposit Agreement.
The Depositary will, at the expense of the Company, make available a
copy of any such notices, reports or communications issued by the Company and
delivered to the Depositary for inspection by the Holders of the ADRs at the
Depositary's Principal Office, at the office of the Custodian and at any other
designated transfer office.
Section 5.7 Issuance of Additional Shares, ADSs etc. The Company
agrees that in the event it or any of its Affiliates proposes (i) an issuance,
sale or distribution of additional Shares, (ii) an offering of rights to
subscribe for Shares or other Deposited Securities, (iii) an issuance of
securities convertible into or exchangeable for Shares, (iv) an issuance of
rights to subscribe for securities convertible into or exchangeable for Shares,
(v) an elective dividend of cash or Shares, (vi) a redemption of Deposited
Securities, (vii) a meeting of holders of Deposited Securities, or solicitation
of consents or proxies, relating to any reclassification of securities, merger
or consolidation or transfer of assets, or (viii) any reclassification,
recapitalization, reorganization, merger, consolidation or sale of assets which
affects the Deposited Securities, except, in the case of (i)-(viii) above, in
connection with any acquisition, merger or asset purchase by or with the
Company or its subsidiaries, and except in the case of (i)-(iv) above where
such issuance, sale, offering or distribution is to be made solely in
connection with compensation of the Company's directors, executives, officers
or employees, or with any Company employee benefit program or share option
plan, the Company will, at the written request of the Depositary, obtain U.S.
legal advice and take all steps necessary to ensure that the proposed
transaction does not violate the registration provisions of the Securities Act,
or any other applicable laws (including, without limitation, the Investment
Company Act of 1940, as amended, the Exchange Act and the securities laws of
the states of the U.S.). In support of the foregoing, the Company will, at the
written request of the Depositary, furnish to the Depositary (a) a written
opinion of U.S. counsel (reasonably satisfactory to the Depositary) stating
whether such transaction (1) requires a registration statement under the
Securities Act to be in effect or (2) is exempt from the registration
requirements of the Securities Act and (b) an opinion of Cayman Islands counsel
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; provided, however, that no such opinion shall be required in
the event of an issuance of Shares as a bonus or Share split. If the filing of
a registration statement is required, the Depositary shall not have any
obligation to proceed with the transaction unless it shall have received
evidence reasonably satisfactory to it that such registration statement has
been declared effective. If, being advised by counsel, the Company determines
that a transaction is required to be registered under the Securities Act, the
Company will either (i) register such transaction to the extent necessary, (ii)
alter the terms of the transaction to avoid the registration requirements of
the Securities Act or (iii) direct the Depositary to take specific measures, in
each case as contemplated in this Deposit Agreement, to prevent such
transaction from violating the registration requirements of the Securities Act.
The Company agrees with the Depositary that neither the Company nor any of its
Affiliates will at any time (x) 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 (y) issue additional Shares, rights to subscribe for such
Shares, securities convertible into or exchangeable for Shares or rights to
subscribe for such securities, unless such transaction and the securities
issuable in such transaction are exempt from registration under the Securities
Act and, if applicable, the Exchange Act or have been registered under the
Securities Act and, if applicable, the Exchange Act (and such registration
statement has been declared effective).
Notwithstanding anything else contained in this Deposit Agreement,
nothing in this Deposit Agreement shall be deemed to obligate the Company to
file any registration statement in respect of any proposed transaction.
Section 5.8 Indemnification. The Depositary agrees to indemnify the
Company and its directors, officers, employees, agents and Affiliates against,
and hold each of them harmless from, any direct loss, liability, tax, charge or
expense of any kind whatsoever (including, but not limited to, the reasonable
fees and expenses of counsel) which may (i) arise out of acts performed or
omitted by the Depositary or its Custodian, under the terms hereof due to the
negligence or bad faith of the Depositary, so long as such entities are
Citibank, N.A. or subsidiary hereof or (ii) be incurred as a result of a breach
by the Depositary of its undertakings in Section 5.10 of this Deposit
Agreement, except, in the case of (ii), to the extent it is due to the
Depositary's compliance with the Company's request that the Depositary cease
delivering ADSs in Pre-Release Transactions.
The Company agrees to indemnify the Depositary, the Custodian and any
of their respective directors, officers, employees, agents and Affiliates
against, and hold each of them harmless from, any direct loss, liability, tax,
charge or expense of any kind whatsoever (including, but not limited to, the
reasonable fees and expenses of counsel) that may arise (a) out of or in
connection with any offer, issuance, sale, resale, transfer, deposit or
withdrawal of ADRs, ADSs, the Shares, or other Deposited Securities, as the
case may be, (b) out of or as a result of any offering documents in respect
thereof or (c) out of acts performed or omitted, in connection with the
provisions of this Deposit Agreement or the ADRs, as the same may be amended,
modified or supplemented from time to time, in any such case (i) by the
Depositary, the Custodian or any of their respective directors, officers,
employees, agents and Affiliates, except to the extent such loss, liability,
tax, charge or expense is due to the negligence or bad faith of any of them, or
(ii) by the Company or any of its directors, officers, employees, agents and
Affiliates, except to the extent any such loss, liability, tax, charge or
expense arises out of information relating to the Depositary or any Custodian
(other than the Company), as applicable, furnished to the Company by the
Depositary in writing and not materially changed or altered by the Company
expressly for use in any of the foregoing documents.
Notwithstanding the prior paragraph, the Company shall not be
obligated to indemnify the Depositary for any loss, liability, tax, charge or
expense that may arise as a result of any Pre-Release Transaction, except for a
Pre-Release Transaction requested in writing by the Company or due to the bad
faith or willful misconduct of the Company.
The obligations set forth in this Section shall survive the
termination of this Deposit Agreement and the succession or substitution of any
party hereto.
Any person seeking indemnification hereunder (an "indemnified person")
shall notify the person from whom it is seeking indemnification (the
"indemnifying person") of the commencement of any indemnifiable action or claim
promptly after such indemnified person becomes aware of such commencement
(provided that the failure to make such notification shall not affect such
indemnified person's rights to seek indemnification except to the extent the
indemnifying person is materially prejudiced by such failure) and shall consult
in good faith with the indemnifying person as to the conduct of the defense of
such action or claim that may give rise to an indemnity hereunder, which
defense shall be reasonable in the circumstances. No indemnified person shall
compromise or settle any action or claim that may give rise to an indemnity
hereunder without the consent of the indemnifying person, which consent shall
not be unreasonably withheld.
Section 5.9 Fees and Charges of Depositary. The Company, the Holders,
the Beneficial Owners, and persons depositing Shares or surrendering ADSs for
cancellation and withdrawal of Deposited Securities shall be required to pay to
the Depositary the Depositary's fees and related charges identified as payable
by them respectively in the Fee Schedule attached hereto as Exhibit B. All fees
and charges so payable may, at any time and from time to time, be changed by
agreement between the Depositary and the Company, but, in the case of fees and
charges payable by Holders and Beneficial Owners, only in the manner
contemplated in Section 6.1. The Depositary shall provide, without charge, a
copy of its latest fee schedule to anyone upon request.
The Company agrees to pay, reasonably promptly, to the Depositary such
other fees and charges and to reimburse the Depositary for such out-of-pocket
expenses as the Depositary and the Company may agree to in writing from time to
time. Responsibility for payment of such charges may at any time and from time
to time be changed by agreement between the Company and the Depositary. Unless
otherwise agreed, the Depositary shall present its statement for such expenses
and fees or charges to the Company once every three months in an itemized
invoice. The charges and expenses of the Custodian are for the sole account of
the Depositary.
The right of the Depositary to receive payment of fees, charges and
expenses as provided above shall survive the termination of this Deposit
Agreement. As to any Depositary, upon the resignation or removal of such
Depositary as described in Section 5.4 hereof, such right shall extend for
those fees, charges and expenses incurred prior to the effectiveness of such
resignation or removal.
Section 5.10 Pre-Release Transactions. Subject to the further terms
and provisions of this Section 5.10, the Depositary, its Affiliates and their
agents, on their own behalf, may own and deal in any class of securities of the
Company and its Affiliates and in ADSs. In its capacity as Depositary, the
Depositary shall not lend Shares or ADSs; provided, however, that subject to
the terms and provisions of this Section 5.10 and to the extent permitted by
applicable law, the Depositary may, unless otherwise requested in writing by
the Company to cease doing so, (i) issue ADSs prior to the receipt of Shares
pursuant to Section 2.3 (each such transaction a "Pre-Release Transaction") and
(ii) deliver Shares only upon the prior receipt and cancellation of ADSs for
withdrawal of Deposited Securities pursuant to Section 2.7, including ADSs
which were issued under (i) above but for which Shares may not have been
received. The Depositary may receive ADSs in lieu of Shares under (i) above in
settlement of a Pre-Release Transaction. Each such Pre-Release Transaction will
be (a) subject to a written agreement whereby the person or entity (the
"Applicant") to whom ADSs are to be delivered (v) represents that at the time
of the Pre-Release Transaction the Applicant or its customer owns the Shares
that are to be delivered by the Applicant under such Pre-Release Transaction,
(w) agrees to indicate the Depositary as owner of such Shares in its records
and to hold such Shares in trust for the Depositary until such Shares are
delivered to the Depositary or the Custodian, (x) unconditionally guarantees to
deliver such Shares to the Depositary or the Custodian, as applicable, (y)
agrees (i) to indemnify the Depositary, its Custodian and the Company for all
damages, costs and expenses arising out of any Pre-Release Transaction
requested by the Applicant or its customer, (ii) to submit to the jurisdiction
of the federal or state courts located in the county and state of New York for
the resolution of any claims brought in respect of a Pre-Release Transaction,
and (iii) that, at the time of the Pre-Release Transaction, the Applicant or
its customer assigns, conveys and transfers to the Depositary, and that each
Pre-Release Transaction shall constitute an assignment, conveyance and transfer
to the Depositary of, the Shares and all beneficial right, title and interest
therein, including, without limitation (1) the right to vote or otherwise act
with respect to discretionary corporate actions, (2) any and all distributions
with respect to such Shares and (3) any and all tax credits or refunds arising
from such distributions, and (z) agrees to any additional restrictions or
requirements that the Depositary deems appropriate, (b) at all times fully
collateralized with cash, U.S. government securities or such other collateral
as the Depositary deems appropriate, (c) terminable by the Depositary on not
more than five (5) business days' notice and (d) subject to such further
indemnities and credit regulations as the Depositary deems appropriate. The
Depositary will normally limit the number of ADSs and Shares involved in such
Pre-Release Transactions at any one time to thirty percent (30%) of the ADSs
outstanding (without giving effect to ADSs outstanding under (i) above);
provided, however, that the Depositary reserves the right to change or
disregard such limit from time to time as it deems appropriate. The Depositary
undertakes, for the benefit of the Company, that it shall enter into a
Pre-Release Transaction only in a manner that will not, under applicable law
existing on the date of the Pre-Release Transaction, cause any U.S. federal
income tax consequences to Holders of ADSs to differ from those that would have
occurred had there been no such Pre-Release Transaction.
The Depositary may also set limits with respect to the number of ADSs
and Shares involved in Pre-Release Transactions with any one person on a
case-by-case basis as it deems appropriate. The Depositary may retain for its
own account any compensation received by it in conjunction with the foregoing.
Collateral provided pursuant to (b) above, but not the earnings thereon, shall
be held for the benefit of the Holders (other than the Applicant).
Section 5.11 Restricted Securities Owners. The Company agrees to
advise in writing each of the persons or entities who, to the knowledge of the
Company, holds Restricted Securities that such Restricted Securities are
ineligible for deposit hereunder (except under the circumstances contemplated
in Section 2.13) and, to the extent practicable, shall require each of such
persons to represent in writing that such person will not deposit Restricted
Securities hereunder (except under the circumstances contemplated in Section
2.13).
ARTICLE VI
AMENDMENT AND TERMINATION
Section 6.1 Amendment/Supplement. Subject to the terms and conditions
of this Section 6.1 and applicable law, the ADRs outstanding at any time, the
provisions of this Deposit Agreement and the form of ADR attached hereto and to
be issued under the terms hereof may at any time and from time to time be
amended or supplemented by written agreement between the Company and the
Depositary in any respect which they may deem necessary or desirable without
the prior written consent of the Holders or Beneficial Owners. Any amendment or
supplement which shall impose or increase any fees or charges (other than
charges in connection with foreign exchange control regulations, and taxes and
other governmental charges, delivery and other such expenses), or which shall
otherwise materially prejudice any substantial existing right of Holders or
Beneficial Owners, shall not, however, become effective as to outstanding ADRs
until the expiration of thirty (30) days after notice of such amendment or
supplement shall have been given to the Holders of outstanding ADRs. The
parties hereto agree that any amendments or supplements which (i) are
reasonably necessary (as agreed by the Company and the Depositary) in order for
(a) the ADSs to be registered on Form F-6 under the Securities Act or (b) the
ADSs to be traded solely in electronic book-entry form and (ii) do not in
either such case impose or increase any fees or charges to be borne by Holders,
shall be deemed not to materially prejudice any substantial rights of Holders
or Beneficial Owners. Every Holder and Beneficial Owner at the time any
amendment or supplement so becomes effective shall be deemed, by continuing to
hold such ADS(s) or to own any beneficial interest therein, to consent and
agree to such amendment or supplement and to be bound by the Deposit Agreement
and the ADR as amended or supplemented thereby. In no event shall any amendment
or supplement impair the right of the Holder to surrender such ADR and receive
therefor the Deposited Securities represented thereby, except in order to
comply with mandatory provisions of applicable law. Notwithstanding the
foregoing, if any governmental body should adopt new laws, rules or regulations
which would require an amendment of, or supplement to, the Deposit Agreement to
ensure compliance therewith, the Company and the Depositary may amend or
supplement the Deposit Agreement and the ADRs at any time in accordance with
such changed laws, rules or regulations. Such amendment or supplement to the
Deposit Agreement and the ADRs in such circumstances may become effective
before a notice of such amendment or supplement is given to Holders or within
any other period of time as required for compliance with such laws, rules or
regulations.
Section 6.2 Termination. The Depositary shall, at any time at the
written direction of the Company, terminate this Deposit Agreement by providing
notice of such termination to the Holders of all ADRs then outstanding at least
thirty (30) days prior to the date fixed in such notice for such termination.
If ninety (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,
the Depositary may terminate this Deposit Agreement by providing notice of such
termination to the Holders of all ADRs then outstanding at least thirty (30)
days prior to the date fixed for such termination. On and after the date of
termination of this Deposit Agreement, the Holder of an ADR will, upon
surrender of such ADR at the Principal Office of the Depositary, upon the
payment of the charges of the Depositary for the surrender of ADRs referred to
in Section 2.7 and subject to the conditions and restrictions therein set
forth, and upon payment of any applicable taxes or governmental charges, be
entitled to Delivery, to him or upon his order, of the amount of Deposited
Securities represented by such ADR. If any ADRs shall remain outstanding after
the date of termination of this Deposit Agreement, the Registrar thereafter
shall discontinue the registration of transfers of ADRs, and the Depositary
shall suspend the distribution of dividends to the Holders thereof, shall not
accept deposits of Shares (and shall instruct the Custodian to act
accordingly), 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 property and rights as provided in this Deposit Agreement, and shall
continue to deliver Deposited Securities, subject to the conditions and
restrictions set forth in Section 2.7, together with any dividends or other
distributions received with respect thereto and the net proceeds of the sale of
any rights or other property, in exchange for ADRs surrendered to the
Depositary (after deducting, or charging, as the case may be, in each case, the
charges of the Depositary for the surrender of an ADR, any expenses for the
account of the Holder in accordance with the terms and conditions of this
Deposit Agreement and any applicable taxes or governmental charges or
assessments). At any time after the expiration of six months from the date of
termination of this Deposit Agreement, the Depositary may sell the Deposited
Securities then held hereunder and may thereafter hold uninvested the net
proceeds of any such sale, together with any other cash then held by it
hereunder, in an unsegregated account, without liability for interest, for the
pro rata benefit of the Holders whose ADRs have not theretofore been
surrendered. After making such sale, the Depositary shall be discharged from
all obligations under this Deposit Agreement with respect to the ADRs, the
Deposited Securities and the ADSs, except to account for such net proceeds and
other cash (after deducting, or charging, as the case may be, in each case, the
charges of the Depositary for the surrender of an ADR, any expenses for the
account of the Holder in accordance with the terms and conditions of this
Deposit Agreement and any applicable taxes or governmental charges or
assessments). Upon the termination of this Deposit Agreement, the Company shall
be discharged from all obligations under this Deposit Agreement except for its
obligations to the Depositary under Sections 5.8, 5.9 and 7.6 hereof.
ARTICLE VII
MISCELLANEOUS
Section 7.1 Counterparts. This Deposit Agreement may be executed in
any number of counterparts, each of which shall be deemed an original and all
of such counterparts together shall constitute one and the same agreement.
Copies of this Deposit Agreement shall be maintained with the Depositary and
shall be open to inspection by any Holder during business hours.
Section 7.2 No Agency. None of the Depositary, Custodian or Registrar,
or their respective directors, employees, agents or Affiliates, shall be
considered an agent of the Company for the purposes of this Deposit Agreement.
Section 7.3 No Third-Party Beneficiaries. This Deposit Agreement is
for the exclusive benefit of the parties hereto (and their permitted
successors) and shall not be deemed to give any legal or equitable right,
remedy or claim whatsoever to any other person, except to the extent
specifically set forth in this Deposit Agreement. Nothing in this Deposit
Agreement shall be deemed to give rise to a partnership or joint venture among
the parties nor establish a fiduciary or similar relationship among the
parties. The parties hereto acknowledge and agree that (i) the Depositary and
its Affiliates may at any time have multiple banking relationships with the
Company and its Affiliates, (ii) the Depositary and its Affiliates may be
engaged at any time in transactions in which parties adverse to the Company or
the Holders or Beneficial Owners may have interests and (iii) nothing contained
in this Deposit Agreement shall (a) preclude the Depositary or any of its
Affiliates from engaging in such transactions or establishing or maintaining
such relationships, or (b) obligate the Depositary or any of its Affiliates to
disclose such transactions or relationships or to account for any profit made
or payment received in such transactions or relationships.
Section 7.4 Severability. In case any one or more of the provisions
contained in this Deposit Agreement or in the ADRs should be or become invalid,
illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein or therein shall in
no way be affected, prejudiced or disturbed thereby.
Section 7.5 Holders and Beneficial Owners as Parties; Binding Effect.
The Holders and Beneficial Owners from time to time of ADSs shall be parties to
this Deposit Agreement and shall be bound by all of the terms and conditions
hereof and of any ADR by acceptance thereof or any beneficial interest therein.
Section 7.6 Notices. Any and all notices to be given to the Company
shall be deemed to have been duly given if personally delivered or sent by
mail, air courier or cable, telex or facsimile transmission, confirmed by
letter personally delivered or sent by mail or air courier, addressed to the
principal executive office of the Company, situated at 18/F, Two Harbourfront,
22 ▇▇▇ ▇▇▇▇ Street, Hunghom, Kowloon, Hong Kong, Attention: Chief Executive
Officer, with a copy to ▇▇/▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇ ▇▇▇▇,
▇▇▇▇▇▇▇▇▇: Company Secretary, or to any other address which the Company may
specify in writing to the Depositary.
Any and all notices to be given to the Depositary shall be deemed to
have been duly given if personally delivered or sent by mail, air courier or
cable, telex or facsimile transmission, confirmed by letter personally
delivered or sent by mail or air courier, addressed to Citibank, N.A., ▇▇▇
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, U.S.A., Attention:
Depositary Receipts Department, or to any other address which the Depositary
may specify in writing to the Company.
Any and all notices to be given to any Holder shall be deemed to have
been duly given if (a) personally delivered or sent by mail or cable, telex or
facsimile transmission, confirmed by letter, addressed to such Holder at the
address of such Holder as it appears on the books of the Depositary or, if such
Holder shall have filed with the Depositary a request that notices intended for
such Holder be mailed to some other address, at the address specified in such
request, or (b) if a Holder shall have designated such means of notification as
an acceptable means of notification under the terms of this Deposit Agreement,
by means of electronic messaging addressed for delivery to the e-mail address
designated by the Holder for such purpose. Notice to Holders shall be deemed to
be notice to Beneficial Owners for all purposes of this Deposit Agreement.
Failure to notify a Holder or any defect in the notification to a Holder shall
not affect the sufficiency of notification to other Holders or to the
Beneficial Owners of ADSs held by such other Holders.
Delivery of a notice sent by mail, air courier or cable, telex or
facsimile transmission shall be deemed to be effective at the time when a duly
addressed letter containing the same (or a confirmation thereof in the case of
a cable, telex or facsimile transmission) is deposited, postage prepaid, in a
post-office letter box or delivered to an air courier service, without regard
for the actual receipt or time of actual receipt thereof by a Holder. The
Depositary or the Company may, however, act upon any cable, telex or facsimile
transmission received by it from any Holder, the Custodian, the Depositary, or
the Company, notwithstanding that such cable, telex or facsimile transmission
shall not be subsequently confirmed by letter.
Delivery of a notice by means of electronic messaging shall be deemed
to be effective at the time of the initiation of the transmission by the sender
(as shown on the sender's records), notwithstanding that the intended recipient
retrieves the message at a later date, fails to retrieve such message, or fails
to receive such notice on account of its failure to maintain the designated
e-mail address, its failure to designate a substitute e-mail address or for any
other reason.
Section 7.7 Governing Law and Jurisdiction. This Deposit Agreement and
the ADRs shall be interpreted in accordance with, and all rights hereunder and
thereunder and provisions hereof and thereof shall be governed by, the laws of
the State of New York without reference to the principles of choice of law
thereof. Notwithstanding anything contained in this Deposit Agreement, any ADR
or any present or future provisions of the laws of the State of New York, the
rights of holders of Shares and of any other Deposited Securities and the
obligations and duties of the Company in respect of the holders of Shares and
other Deposited Securities, as such, shall be governed by the laws of the
Cayman Islands (or, if applicable, such other laws as may govern the Deposited
Securities).
Except as set forth in the following paragraph of this Section 7.6,
the Company and the Depositary agree that the federal or state courts in the
City of New York shall have jurisdiction to hear and determine any suit, action
or proceeding and to settle any dispute between them that may arise out of or
in connection with this Deposit Agreement and, for such purposes, each
irrevocably submits to the non-exclusive jurisdiction of such courts. The
Company hereby irrevocably designates, appoints and empowers ▇▇▇▇▇▇▇▇▇ Whampoa
Agents (US) Inc. (the "Agent") now at ▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇,
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇, ▇▇▇ as its authorized agent to receive and accept for and
on its behalf, and on behalf of its properties, assets and revenues, service by
mail of any and all legal process, summons, notices and documents that may be
served in any suit, action or proceeding brought against the Company in any
federal or state court as described in the preceding sentence or in the next
paragraph of this Section 7.6. If for any reason the Agent shall cease to be
available to act as such, the Company agrees to designate a new agent in New
York on the terms and for the purposes of this Section 7.6 reasonably
satisfactory to the Depositary. The Company further hereby irrevocably consents
and agrees to the service of any and all legal process, summons, notices and
documents in any suit, action or proceeding against the Company, by service by
mail of a copy thereof upon the Agent (whether or not the appointment of such
Agent shall for any reason prove to be ineffective or such Agent shall fail to
accept or acknowledge such service), with a copy mailed to the Company by
registered or certified air mail, postage prepaid, to its address provided in
Section 7.5 hereof. The Company agrees that the failure of the Agent to give
any notice of such service to it shall not impair or affect in any way the
validity of such service or any judgment rendered in any action or proceeding
based thereon.
Notwithstanding the foregoing, the Depositary and the Company
unconditionally agree that in the event that a Holder or Beneficial Owner
brings a suit, action or proceeding against (a) the Company, (b) the Depositary
in its capacity as Depositary under this Deposit Agreement or (c) against both
the Company and the Depositary, in any such case, in any state or federal court
of the United States, and the Depositary or the Company have any claim, for
indemnification or otherwise, against each other arising out of the subject
matter of such suit, action or proceeding, then the Company and the Depositary
may pursue such claim against each other in the state or federal court in the
United States in which such suit, action, or proceeding is pending and, for
such purposes, the Company and the Depositary irrevocably submit to the
non-exclusive jurisdiction of such courts. The Company agrees that service of
process upon the Agent in the manner set forth in the preceding paragraph shall
be effective service upon it for any suit, action or proceeding brought against
it as described in this paragraph.
The Company irrevocably and unconditionally waives, to the fullest
extent permitted by law, any objection that it may now or hereafter have to the
laying of venue of any actions, suits or proceedings brought in any court as
provided in this Section 7.6, and hereby further irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that
any such action, suit or proceeding brought in any such court has been brought
in an inconvenient forum.
The Company irrevocably and unconditionally waives, to the fullest
extent permitted by law, and agrees not to plead or claim, any right of
immunity from legal action, suit or proceeding, from setoff or counterclaim,
from the jurisdiction of any court, from service of process, from attachment
upon or prior to judgment, from attachment in aid of execution or judgment,
from execution of judgment, or from any other legal process or proceeding for
the giving of any relief or for the enforcement of any judgment, and consents
to such relief and enforcement against it, its assets and its revenues in any
jurisdiction, in each case with respect to any matter arising out of, or in
connection with, the Deposit Agreement, any ADR or the Deposited Securities.
No disclaimer of liability under the Securities Act is intended by any
provision of the Deposit Agreement. The provisions of this Section 7.6 shall
survive any termination of this Deposit Agreement, in whole or in part.
Section 7.8 Assignment. Subject to the provisions of Section 5.4
hereof, this Deposit Agreement may not be assigned or otherwise transferred by
either the Company or the Depositary.
Section 7.9 Compliance with U.S. Securities Laws. Notwithstanding
anything in this Deposit Agreement to the contrary, the withdrawal or delivery
of Deposited Securities will not be suspended by the Company or the Depositary
except as would be permitted by Instruction I.A.(1) of the General Instructions
to Form F-6 Registration Statement, as amended from time to time, under the
Securities Act.
Section 7.10 Titles and References. All references in this Deposit
Agreement to exhibits, articles, sections, subsections, and other subdivisions
refer to the exhibits, articles, sections, subsections and other subdivisions
of this Deposit Agreement unless expressly provided otherwise. The words "this
Deposit Agreement", "herein", "hereof", "hereby", "hereunder", and words of
similar import refer to the Deposit Agreement as a whole as in effect between
the Company, the Depositary and the Holders and Beneficial Owners of ADSs and
not to any particular subdivision unless expressly so limited. Pronouns in
masculine, feminine and neuter gender shall be construed to include any other
gender, and words in the singular form shall be construed to include the plural
and vice versa unless the context otherwise requires. Titles to sections of
this Deposit Agreement are included for convenience only and shall be
disregarded in construing the language contained in this Deposit Agreement.
References to "applicable laws and regulations" shall refer to laws and
regulations applicable to ADRs, ADSs or Deposited Securities as in effect at
the relevant time of determination, unless otherwise required by law or
regulation.
IN WITNESS WHEREOF, ▇▇▇▇▇▇▇▇▇ Telecommunications International Limited
and CITIBANK, N.A. have duly executed this Deposit Agreement as of the day and
year first above set forth and all Holders and Beneficial Owners shall become
parties hereto upon acceptance by them of ADSs evidenced by ADRs issued in
accordance with the terms hereof, or upon acquisition of any beneficial
interest therein.
▇▇▇▇▇▇▇▇▇ TELECOMMUNICATIONS
INTERNATIONAL LIMITED
By:_______________________________
Name:
Title:
CITIBANK, N.A.
By:_______________________________
Name:
Title:
EXHIBIT A
[FORM OF ADR]
Number CUSIP NUMBER: _______
_____________
American Depositary Shares
(each American Depositary
Share representing fifteen
Fully Paid ordinary shares
each having par value of
HK$0.25)
AMERICAN DEPOSITARY RECEIPT
FOR
AMERICAN DEPOSITARY SHARES
representing
DEPOSITED ORDINARY SHARES
of
▇▇▇▇▇▇▇▇▇ TELECOMMUNICATIONS INTERNATIONAL LIMITED
(Incorporated under the laws of the Cayman Islands)
CITIBANK, N.A., a national banking association organized and existing
under the laws of the United States of America, as depositary (the
"Depositary"), hereby certifies that _____________is the owner of
______________ American Depositary Shares (hereinafter "ADS"), representing
deposited ordinary shares, each of par value HK$0.25, including evidence of
rights to receive such ordinary shares (the "Shares"), of ▇▇▇▇▇▇▇▇▇
Telecommunications International Limited, a corporation incorporated under the
laws of the Cayman Islands (the "Company"). As of the date of the Deposit
Agreement (as hereinafter defined), each ADS represents 15 Shares deposited
under the Deposit Agreement with the Custodian, which at the date of execution
of the Deposit Agreement is Citibank, N.A., Hong Kong (the "Custodian"). The
ADS(s)-to-Share(s) ratio is subject to amendment as provided in Articles IV and
VI of the Deposit Agreement. The Depositary's Principal Office is located at
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, ▇.▇.▇.
(1) THE DEPOSIT AGREEMENT. This American Depositary Receipt is one of
an issue of American Depositary Receipts ("ADRs"), all issued and to be issued
upon the terms and conditions set forth in the Deposit Agreement, dated as of
September __, 2004 (as amended and supplemented from time to time, the "Deposit
Agreement"), by and among the Company, the Depositary, and all Holders and
Beneficial Owners from time to time of ADSs evidenced by ADRs issued
thereunder. The Deposit Agreement sets forth the rights and obligations of
Holders and Beneficial Owners of ADRs and the rights and duties of the
Depositary in respect of the Shares deposited thereunder and any and all other
securities, property and cash from time to time received in respect of such
Shares and held thereunder (such Shares, securities, property and cash are
herein called "Deposited Securities"). Copies of the Deposit Agreement are on
file at the Principal Office of the Depositary and with the Custodian. Each
Holder and each Beneficial Owner, upon acceptance of any ADSs (or any interest
therein) issued in accordance with the terms and conditions of the Deposit
Agreement, shall be deemed for all purposes to (a) be a party to and bound by
the terms of the Deposit Agreement and applicable ADR(s), and (b) appoint the
Depositary its attorney-in-fact, with full power to delegate, to act on its
behalf and to take any and all actions contemplated in the Deposit Agreement
and the applicable ADR(s), to adopt any and all procedures necessary to comply
with applicable law and to take such action as the Depositary in its sole
discretion may deem necessary or appropriate to carry out the purposes of the
Deposit Agreement and the applicable ADR(s), the taking of such actions to be
the conclusive determinant of the necessity and appropriateness thereof.
The statements made on the face and reverse of this ADR are summaries
of certain provisions of the Deposit Agreement and the Memorandum and Articles
of Association of the Company (as in effect on the date of the signing of the
Deposit Agreement) and are qualified by and subject to the detailed provisions
of the Deposit Agreement and the Memorandum and Articles of Association, to
which reference is hereby made. All capitalized terms used herein which are not
otherwise defined herein shall have the meanings ascribed thereto in the
Deposit Agreement. The Depositary makes no representation or warranty as to the
validity or worth of the Deposited Securities. The Depositary has made
arrangements for the acceptance of the ADSs into DTC. Each Beneficial Owner of
ADSs held through DTC must rely on the procedures of DTC and the DTC
Participants to exercise and be entitled to any rights attributable to such
ADSs.
(2) WITHDRAWAL OF DEPOSITED SECURITIES. The Holder of this ADR (and of
the ADSs evidenced hereby) shall be entitled to Delivery (at the Custodian's
designated office) of the Deposited Securities at the time represented by the
ADSs evidenced hereby upon satisfaction of each of the following conditions:
(i) the Holder (or a duly authorized attorney of the Holder) has duly Delivered
to the Depositary at its Principal Office the ADSs evidenced hereby (and, if
applicable, this ADR) for the purpose of withdrawal of the Deposited Securities
represented thereby, (ii) if so required by the Depositary, this ADR has been
properly endorsed in blank or is accompanied by proper instruments of transfer
in blank (including signature guarantees in accordance with standard securities
industry practice), (iii) if so required by the Depositary, the Holder of the
ADSs has executed and delivered to the Depositary a written order directing the
Depositary to cause the Deposited Securities being withdrawn to be Delivered to
or upon the written order of the person(s) designated in such order, and (iv)
all applicable fees and charges of, and expenses incurred by, the Depositary
(in each case, as set forth in Section 5.9 of, and Exhibit B to, the Deposit
Agreement) and all applicable taxes and governmental charges have been paid,
subject, however, in each case, to the terms and conditions of this ADR, of the
Deposit Agreement, of the Company's Memorandum and Articles of Association, of
any applicable laws, and to any provisions of or governing the Deposited
Securities, in each case as in effect at the time thereof.
Upon satisfaction of each of the conditions specified above, the
Depositary (i) shall promptly cancel the ADSs Delivered to it (and, if
applicable, the ADR(s) evidencing the ADSs so Delivered), (ii) shall direct the
Registrar to record the cancellation of the ADSs so Delivered on the books
maintained for such purpose, and (iii) shall direct the Custodian to Deliver
(without unreasonable delay) at the Custodian's designated office the Deposited
Securities represented by the ADSs so canceled together with any certificate or
other document of title for the Deposited Securities, or evidence of the
electronic transfer thereof (if available), as the case may be, to or upon the
written order of the person(s) designated in the order delivered to the
Depositary for such purpose, subject however, in each case, to the terms and
conditions of the Deposit Agreement, of this ADR, of the Memorandum and
Articles of Association of the Company, of any applicable laws, and to the
terms and conditions of or governing the Deposited Securities, in each case as
in effect at the time thereof.
The Depositary shall not accept for surrender ADSs representing less
than one Share. In the case of Delivery to it of ADSs representing a number
other than a whole number of Shares, the Depositary shall cause ownership of
the appropriate whole number of Shares to be Delivered in accordance with the
terms hereof, and shall, at the discretion of the Depositary, either (i) return
to the person surrendering such ADSs the number of ADSs representing any
remaining fractional Share, or (ii) sell or cause to be sold the fractional
Share represented by the ADSs so surrendered and remit the proceeds of such
sale (net of (a) applicable fees and charges of, and expenses incurred by, the
Depositary, (in each case, as set forth in Section 5.9 of, and Exhibit B to,
the Deposit Agreement), (b) governmental charges withheld and (c) taxes) to the
person surrendering the ADSs.
Notwithstanding anything else contained in this ADR or the Deposit
Agreement, the Depositary may make delivery at the Principal Office of the
Depositary of (i) any cash dividends or cash distributions, or (ii) any
proceeds from the sale of any distributions of shares or rights, which are at
the time held by the Depositary in respect of the Deposited Securities
represented by the ADSs surrendered for cancellation and withdrawal. At the
request, risk and expense of any Holder so surrendering ADSs represented by
this ADR, and for the account of such Holder, the Depositary shall direct the
Custodian to forward (to the extent permitted by law) any cash or other
property (other than securities) held by the Custodian in respect of the
Deposited Securities represented by such ADSs to the Depositary for delivery at
the Principal Office of the Depositary. Such direction shall be given by letter
or, at the request, risk and expense of such Holder, by cable, telex or
facsimile transmission.
(3) TRANSFER, COMBINATION AND SPLIT-UP OF ADRs. The Registrar shall
promptly register the transfer of this ADR (and of the ADSs represented hereby)
on the books maintained for such purpose and the Depositary shall promptly (x)
cancel this ADR and execute new ADRs evidencing the same aggregate number of
ADSs as those evidenced by this ADR when canceled, (y) cause the Registrar to
countersign such new ADRs, and (z) Deliver such new ADRs to or upon the order
of the person entitled thereto, if each of the following conditions has been
satisfied: (i) this ADR has been duly Delivered by the Holder (or by a duly
authorized attorney of the Holder) to the Depositary at its Principal Office
for the purpose of effecting a transfer thereof, (ii) this ADR has been
properly endorsed or is accompanied by proper instruments of transfer
(including signature guarantees in accordance with standard securities industry
practice), (iii) this ADR has been duly stamped (if required by the laws of the
State of New York or of the United States), and (iv) all applicable fees and
charges of, and expenses incurred by, the Depositary (in each case, as set
forth in Section 5.9 of, and Exhibit B to, the Deposit Agreement) and all
applicable taxes and governmental charges have been paid, subject, however, in
each case, to the terms and conditions of this ADR, of the Deposit Agreement
and of applicable law, in each case as in effect at the time thereof.
The Registrar shall, without unreasonable delay, register the split-up
or combination of this ADR (and of the ADSs represented hereby) on the books
maintained for such purpose and the Depositary shall (x) cancel this ADR and
execute new ADRs for the number of ADSs requested, but in the aggregate not
exceeding the number of ADSs evidenced by this ADR (when canceled), (y) cause
the Registrar to countersign such new ADRs, and (z) Deliver such new ADRs to or
upon the order of the Holder thereof, if each of the following conditions has
been satisfied: (i) this ADR has been duly Delivered by the Holder (or by a
duly authorized attorney of the Holder) to the Depositary at its Principal
Office for the purpose of effecting a split-up or combination hereof, and (ii)
all applicable fees and charges of, and expenses incurred by, the Depositary
(in each case, as set forth in Section 5.9 of, and Exhibit B to, the Deposit
Agreement) and all applicable taxes and governmental charges have been paid,
subject, however, in each case, to the terms and conditions of this ADR, of the
Deposit Agreement and of applicable law, in each case as in effect at the time
thereof.
(4) PRE-CONDITIONS TO REGISTRATION, TRANSFER, ETC. As a condition
precedent to the execution and delivery, the registration of issuance,
transfer, split-up, combination or surrender, of any ADR, the delivery of any
distribution thereon, or the withdrawal of any Deposited Securities, the
Depositary or the Custodian may require (i) payment from the depositor of
Shares or presenter of ADSs or of an ADR of a sum sufficient to reimburse it
for any tax or other governmental charge and any stock transfer or registration
fee with respect thereto (including any such tax or charge and fee with respect
to Shares being deposited or withdrawn) and payment of any applicable fees and
charges of the Depositary as provided in the Deposit Agreement and in this ADR,
(ii) the production of proof satisfactory to it as to the identity and
genuineness of any signature or any other matter contemplated in the Deposit
Agreement, and (iii) compliance with (A) any laws or governmental regulations
relating to the execution and delivery of ADRs or ADSs or to the withdrawal of
Deposited Securities and (B) such reasonable regulations as the Depositary or
the Company may establish consistent with the provisions of this ADR and the
Deposit Agreement and applicable law.
The issuance of ADSs against deposits of Shares generally or against
deposits of particular Shares may be suspended, or the deposit of particular
Shares may be refused, or the registration of transfer of ADRs in particular
instances may be refused, or the registration of transfer of ADRs generally may
be suspended, during any period when the transfer books of, the Depositary, a
Registrar, a Share Registrar, or the Company, including the Shareholders'
registers of the Company, are closed or if any such action is deemed necessary
or advisable by the Depositary or the Company, in good faith, at any time or
from time to time because of any requirement of law, any government or
governmental body or commission or any securities exchange upon which the
Shares or ADSs are listed, or under any provision of the Deposit Agreement or
this ADR, or under any provision of, or governing, the Deposited Securities, or
because of a meeting of shareholders of the Company or for any other reason,
subject in all cases to paragraph (24) hereof.
Notwithstanding any provision of the Deposit Agreement or this ADR to
the contrary, Holders are entitled to surrender outstanding ADSs to withdraw
the Deposited Securities at any time subject only to (i) temporary delays
caused by closing the transfer books of the Depositary or the Company or the
deposit of Shares in connection with voting at a shareholders' meeting or the
payment of dividends, (ii) the payment of fees, taxes and similar charges,
(iii) compliance with any U.S. or foreign laws or governmental regulations
relating to the ADRs or to the withdrawal of the Deposited Securities, and (iv)
other circumstances specifically contemplated by Instruction I.A.(l) of the
General Instructions to Form F-6 under the Securities Act (as such General
Instructions may be amended from time to time).
(5) COMPLIANCE WITH INFORMATION REQUESTS. Notwithstanding any other
provision of the Deposit Agreement or this ADR, each Holder and Beneficial
Owner of the ADSs represented hereby agrees to comply with requests from the
Company pursuant to applicable law, as well as the rules and requirements of
the Stock Exchange of Hong Kong Limited, the New York Stock Exchange and any
other stock exchange on which Shares or ADSs are, or will be, registered,
traded or listed, or the Memorandum and Articles of Association of the Company,
which are made to provide information, inter alia, as to the capacity in which
such Holder or Beneficial Owner owns ADSs (and Shares, as the case may be) and
regarding the identity of any other person(s) interested in such ADSs and the
nature of such interest and various other matters, whether or not they are
Holders and/or Beneficial Owners at the time of such request.
(6) OWNERSHIP RESTRICTIONS. Notwithstanding any provision of this ADR
or of the Deposit Agreement, the Company may restrict transfers of the Shares
where such transfer might result in ownership of Shares exceeding limits
imposed by applicable law or the Memorandum and Articles of Association of the
Company. The Company may also restrict, in such manner as it deems appropriate,
transfers of ADSs where such transfer may result in the total number of Shares
represented by the ADSs owned by a single Holder or Beneficial Owner to exceed
any such limits. The Company may, in its sole discretion but subject to
applicable law, instruct the Depositary to take action with respect to the
ownership interest of any Holder or Beneficial Owner in excess of the limits
set forth in the preceding sentence, including but not limited to, the
imposition of restrictions on the transfer of ADSs, the removal or limitation
of voting rights or a mandatory sale or disposition on behalf of a Holder or
Beneficial Owner of the Shares represented by the ADSs held by such Holder or
Beneficial Owner in excess of such limitations, if and to the extent such
disposition is permitted by applicable law and the Memorandum and Articles of
Association of the Company.
(7) LIABILITY OF HOLDER FOR TAXES AND OTHER CHARGES. Any tax or other
governmental charge payable by the Custodian or by the Depositary with respect
to any ADR or any Deposited Securities or ADSs shall be payable by the Holders
and Beneficial Owners to the Depositary. The Company, the Custodian and/or
Depositary may withhold or deduct from any distributions made in respect of
Deposited Securities and may sell for the account of a Holder and/or Beneficial
Owner any or all of the Deposited Securities and apply such distributions and
sale proceeds in payment of such taxes (including applicable interest and
penalties) or other governmental charges, the Holder and the Beneficial Owner
hereof remaining liable for any deficiency. The Custodian may refuse the
deposit of Shares and the Depositary may refuse to issue ADSs, to deliver ADRs,
register the transfer, split-up or combination of ADRs and (subject to
paragraph (24) hereof) the withdrawal of Deposited Securities until payment in
full of such tax, charge, penalty or interest is received. Every Holder and
Beneficial Owner agrees to indemnify the Depositary, the Company, the
Custodian, and any of their agents, officers, employees and Affiliates for, and
hold each of them harmless from, any claims with respect to taxes (including
applicable interest and penalties thereon) arising from any tax benefit
obtained for such Holder and/or Beneficial Owner.
(8) REPRESENTATIONS AND WARRANTIES OF DEPOSITORS. Each person
depositing Shares under the Deposit Agreement shall be deemed thereby to
represent and warrant that (i) such Shares and the certificates therefor are
duly authorized, validly issued, outstanding, fully paid, non-assessable and
legally obtained by such person, (ii) all preemptive (and similar) rights, if
any, with respect to such Shares have been validly waived or exercised, (iii)
the person making such deposit is duly authorized so to do, (iv) the Shares
presented for deposit are free and clear of any lien, encumbrance, security
interest, charge, mortgage or adverse claim, (v) the Shares presented for
deposit are not, and the ADSs issuable upon such deposit will not be,
Restricted Securities (except as contemplated in Section 2.13 of the Deposit
Agreement), and (vi) the Shares presented for deposit have not been stripped of
any rights or entitlements. Such representations and warranties shall survive
the deposit and withdrawal of Shares, the issuance and cancellation of ADSs in
respect thereof and the transfer of such ADSs. If any such representations or
warranties are false in any way, the Company and the Depositary shall be
authorized, at the cost and expense of the person depositing Shares, to take
any and all actions necessary to correct the consequences thereof.
(9) FILING PROOFS, CERTIFICATES AND OTHER INFORMATION. Any person
presenting Shares for deposit, any Holder and any Beneficial Owner may be
required, and every Holder and Beneficial Owner agrees, from time to time to
provide to the Depositary and the Custodian such proof of citizenship or
residence, taxpayer status, payment of all applicable taxes or other
governmental charges, exchange control approval, legal or beneficial ownership
of ADSs and Deposited Securities, compliance with applicable laws and the terms
of the Deposit Agreement and the provisions of, or governing, the Deposited
Securities, to execute such certifications and to make such representations and
warranties, and to provide such other information and documentation (or, in the
case of Shares in registered form presented for deposit, such information
relating to the registration of Shares on the books of the Company or of a
Share Registrar) as the Depositary or the Custodian may reasonably deem
necessary or proper or as the Company may reasonably require by written request
to the Depositary consistent with its obligations under the Deposit Agreement.
The Depositary and the Registrar, as applicable, may withhold the execution or
delivery or registration of transfer of any ADR or the distribution or sale of
any dividend or other distribution of rights or of the proceeds thereof or, to
the extent not limited by paragraph (24) hereof, the delivery of any Deposited
Securities until such proof or other information is filed or such
certifications are executed, or such representations and warranties are made or
such information and documentation are provided, in each case to the
Depositary's, the Registrar's and the Company's satisfaction.
(10) CHARGES OF DEPOSITARY. The Depositary shall charge the following
fees:
(i) ISSUANCE FEE: to any person depositing Shares or to whom
ADSs are issued upon the deposit of Shares, a fee not in
excess of U.S. $5.00 per 100 ADSs (or portion thereof) so
issued under the terms of the Deposit Agreement (excluding
issuances pursuant to paragraph (iv) below);
(ii) CANCELLATION FEE: to any person surrendering ADSs for
cancellation and withdrawal of Deposited Securities, a fee
not in excess of U.S. $5.00 per 100 ADSs (or portion
thereof) so surrendered;
(iii) CASH DISTRIBUTION FEE: to any Holder of ADRs, a fee not in
excess of U.S. $2.00 per 100 ADSs (or portion thereof) held
for the distribution of cash proceeds (i.e., upon the sale
of rights and other entitlements) under the terms of the
Deposit Agreement, excluding issuances pursuant to
paragraph (vi) below; and
(iv) RIGHTS EXERCISE FEE: to any Holder of ADRs, a fee not in
excess of U.S. $5.00 per 100 ADSs (or portion thereof)
issued upon the exercise of rights to purchase additional
ADSs;
(v) OTHER DISTRIBUTION FEE: to any Holder of ADRs receiving a
distribution of securities other than ADSs or rights to
purchase additional ADSs, a fee not in excess of U.S. $5.00
per unit of 100 securities (or fraction thereof)
distributed;
(vi) STOCK DISTRIBUTION/CASH DIVIDEND DISTRIBUTION FEE: no fee
for distribution of ADSs pursuant to stock dividends or
other free stock distributions; no fee for distribution of
cash dividends so long as prohibited by the exchange upon
which the ADSs are listed.
In addition, Holders, Beneficial Owners, persons depositing Shares and
persons surrendering ADSs for cancellation and withdrawal of Deposited
Securities will be required to pay the following charges:
(i) taxes (including applicable interest and penalties) and
other governmental charges;
(ii) such registration fees as may from time to time be in
effect for the registration of Shares or other Deposited
Securities on the share register and applicable to
transfers of Shares or other Deposited Securities to or
from the name of the Custodian, the Depositary or any
nominees upon the making of deposits and withdrawals,
respectively;
(iii) such cable, telex and facsimile transmission and delivery
expenses as are expressly provided in the Deposit Agreement
to be at the expense of the person depositing or
withdrawing Shares or Holders and Beneficial Owners of
ADSs;
(iv) the reasonable expenses and charges incurred by the
Depositary in the conversion of foreign currency;
(v) such fees and expenses as are incurred by the Depositary in
connection with compliance with exchange control
regulations and other regulatory requirements applicable to
Shares, Deposited Securities, ADSs and ADRs; and
(vi) the fees and expenses incurred by the Depositary, the
Custodian, or any nominee in connection with the delivery
or servicing of Deposited Securities.
Any other charges and expenses of the Depositary under the Deposit
Agreement will be paid by the Company upon agreement between the Depositary and
the Company. All fees and charges may, at any time and from time to time, be
changed by agreement between the Depositary and Company but, in the case of
fees and charges payable by Holders or Beneficial Owners, only in the manner
contemplated by paragraph (22) of this ADR. The Depositary will provide,
without charge, a copy of its latest fee schedule to anyone upon request. The
charges and expenses of the Custodian are for the sole account of the
Depositary.
(11) TITLE TO ADRs. It is a condition of this ADR, and every
successive Holder of this ADR by accepting or holding the same consents and
agrees, that title to this ADR (and to each ADS evidenced hereby) shall be
transferable by delivery upon the same terms as a certificated security under
the laws of the State of New York, provided that the ADR has been properly
endorsed or is accompanied by proper instruments of transfer. Notwithstanding
any notice to the contrary, the Depositary and the Company may deem and treat
the Holder of this ADR (that is, the person in whose name this ADR is
registered on the books of the Depositary) as the absolute owner thereof for
all purposes. Neither the Depositary nor the Company shall have any obligation
nor be subject to any liability under the Deposit Agreement or this ADR to any
holder of this ADR or any Beneficial Owner unless such holder is the Holder of
this ADR registered on the books of the Depositary or, in the case of a
Beneficial Owner, such Beneficial Owner or the Beneficial Owner's
representative is the Holder registered on the books of the Depositary.
(12) VALIDITY OF ADR. The Holder(s) of this ADR (and the ADSs
represented hereby) shall not be entitled to any benefits under the Deposit
Agreement, and no ADR or ADS evidenced thereby shall be valid or enforceable
for any purpose against the Depositary or the Company unless this ADR has been
(i) dated, (ii) signed by the manual or facsimile signature of a
duly-authorized signatory of the Depositary, (iii) countersigned by the manual
or facsimile signature of a duly-authorized signatory of the Registrar, and
(iv) registered in the books maintained by the Registrar for the registration
of issuances and transfers of ADRs. ADRs bearing the manual or facsimile
signature of a duly-authorized signatory of the Depositary or the Registrar,
who at the time of signature was a duly authorized signatory of the Depositary
or the Registrar, as the case may be, shall bind the Depositary,
notwithstanding the fact that such signatory has ceased to be so authorized
prior to the delivery of such ADR by the Depositary.
(13) AVAILABLE INFORMATION; REPORTS; INSPECTION OF TRANSFER BOOKS. The
Company is subject to the periodic reporting requirements of the Exchange Act
and accordingly files certain information with the Commission. These reports
and documents can be inspected and copied at the public reference facilities
maintained by the Commission located at Judiciary Plaza, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇,
▇.▇., ▇▇▇▇▇▇▇▇▇▇ ▇.▇. ▇▇▇▇▇. The Depositary shall make available for inspection
by Holders at its Principal Office any reports and communications, including
any proxy soliciting materials, received from the Company which are both (a)
received by the Depositary, the Custodian, or the nominee of either of them as
the holder of the Deposited Securities and (b) made generally available to the
holders of such Deposited Securities by the Company.
The Registrar shall keep books for the registration of issuances and
transfers of ADRs which at all reasonable times shall be open for inspection by
the Company and by the Holders, provided that such inspection shall not be, to
the Registrar's knowledge, for the purpose of communicating with Holders in the
interest of a business or object other than the business of the Company or
other than a matter related to the Deposit Agreement or the ADRs.
Upon notice to the Company, the Registrar may close the transfer books
with respect to the ADRs, at any time or from time to time, but only for such
duration, as reasonably determined by the Registrar to be necessary or
essential for the due discharge of its obligations, or at the reasonable
written request of the Company subject, in all cases, to paragraph (24) hereof.
Dated:
CITIBANK, N.A. CITIBANK, N.A.
Transfer Agent and Registrar as Depositary
By: _____________________________ By: _____________________________
Authorized Signatory Authorized Signatory
The address of the Principal Office of the Depositary is 388 Greenwich
Street, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, ▇.▇.▇.
[FORM OF REVERSE OF ADR]
SUMMARY OF CERTAIN ADDITIONAL PROVISIONS
OF THE DEPOSIT AGREEMENT
(14) DIVIDENDS AND DISTRIBUTIONS IN CASH, SHARES, ETC. Whenever the
Depositary receives confirmation from the Custodian of receipt of any cash
dividend or other cash distribution on any Deposited Securities, or receives
proceeds from the sale of any Deposited Securities or of any entitlements held
in respect of Deposited Securities under the terms of the Deposit Agreement,
the Depositary will (i) if at the time of receipt thereof any amounts received
in a Foreign Currency can, in the judgment of the Depositary (upon the terms of
the Deposit Agreement), be converted on a practicable basis into Dollars
transferable to the United States, promptly convert or cause to be converted
such cash dividend, distribution or proceeds into Dollars (upon the terms of
the Deposit Agreement), (ii) if applicable, establish the ADS Record Date upon
the terms described in Section 4.9 of the Deposit Agreement, and (iii)
distribute promptly the amount thus received (net of (a) applicable fees and
charges of, and expenses incurred by, the Depositary, in each case, as set
forth in Section 5.9 of, and Exhibit B to, the Deposit Agreement, (b)
governmental charges and (c) taxes withheld) to the Holders entitled thereto as
of the ADS Record Date in proportion to the number of ADSs held as of the ADS
Record Date. The Depositary shall distribute only such amount, however, as can
be distributed without attributing to any Holder a fraction of one cent, and
any balance not so distributed shall be held by the Depositary (without
liability for interest thereon) and shall be added to and become part of the
next sum received by the Depositary for distribution to Holders of ADSs then
outstanding at the time of the next distribution. If the Company, the Custodian
or the Depositary is required to withhold and does withhold from any cash
dividend or other cash distribution in respect of any Deposited Securities an
amount on account of taxes, duties or other governmental charges, the amount
distributed to Holders on the ADSs representing such Deposited Securities shall
be reduced accordingly. Such withheld amounts shall be forwarded by the
Company, the Custodian or the Depositary to the relevant governmental
authority.
If any distribution upon any Deposited Securities consists of a
dividend in, or free distribution of, Shares, the Company shall cause such
Shares to be deposited with the Custodian and registered, as the case may be,
in the name of the Depositary, the Custodian or their respective nominees. Upon
receipt of confirmation of the deposit from the Custodian, the Depositary
shall, subject to and in accordance with the Deposit Agreement, establish the
ADS Record Date and either (i) the Depositary shall distribute to the Holders
as of the ADS Record Date in proportion to the number of ADSs held as of the
ADS Record Date, additional ADSs to which they are entitled, which represent in
aggregate the number of Shares received as such dividend, or free distribution,
subject to the terms of the Deposit Agreement (including, without limitation,
(a) the applicable fees and charges of, and expenses incurred by, the
Depositary, in each case, as set forth in Section 5.9 of, and Exhibit B to, the
Deposit Agreement, (b) governmental charges and (c) taxes), or (ii) if
additional ADSs are not so distributed, each ADS issued and outstanding after
the ADS Record Date shall, to the extent permissible by law, thenceforth also
represent rights and interest in the additional integral number of Shares
distributed upon the Deposited Securities represented thereby (net of (a) the
applicable fees and charges of, and expenses incurred by, the Depositary, in
each case, as set forth in Section 5.9 of, and Exhibit B to, the Deposit
Agreement, (b) governmental charges and (c) taxes). In lieu of delivering
fractional ADSs, the Depositary shall sell the number of Shares or ADSs, as the
case may be, represented by the aggregate of such fractions and distribute the
net proceeds upon the terms set forth in the Deposit Agreement.
In the event that the Company or the Depositary determines that any
distribution in property (including Shares) is subject to any tax or other
governmental charges which the Depositary is obligated to withhold, or, if the
Company in the fulfillment of its obligations under the Deposit Agreement, has
furnished an opinion of U.S. counsel determining that Shares must be registered
under the Securities Act or other laws in order to be distributed to Holders
(and no such registration statement has been declared effective), the
Depositary may, after consultation with the Company, adopt such method as it
may deem commercially feasible for the purpose of effecting such distribution,
including by disposal of all or a portion of such property (including Shares
and rights to subscribe therefor) in such amounts and in such manner, including
by public or private sale, as the Depositary deems necessary and practicable
and the Depositary shall distribute the net proceeds of any such sale (after
deduction of (a) applicable fees and charges of, and the expenses incurred by,
the Depositary (in each case, as set forth in Section 5.9 of, and Exhibit B to,
the Deposit Agreement), (b) governmental charges and (c) taxes) 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. To the extent that new ADSs
representing such Shares are not created and such Shares are not sold or
otherwise distributed in accordance with this section, each ADS shall
thenceforth also represent such additional shares distributed upon the
Deposited Securities represented thereby.
Upon timely receipt of a notice indicating that the Company wishes an
elective distribution to be made available to Holders of ADSs upon the terms
described in the Deposit Agreement, the Company and the Depositary shall
determine whether such distribution is lawful and reasonably practicable. If
so, the Depositary shall, subject to the terms and conditions of the Deposit
Agreement, establish an ADS Record Date according to paragraph (16) and
establish procedures to enable the Holder hereof to elect to receive the
proposed distribution in cash or in additional ADSs. If a Holder elects to
receive the distribution in cash, the distribution shall be made as in the case
of a distribution in cash. If the Holder hereof elects to receive the
distribution in additional ADSs, the distribution shall be made as in the case
of a distribution in Shares upon the terms described in the Deposit Agreement.
If such elective distribution is not reasonably practicable or if the
Depositary did not receive satisfactory documentation set forth in the Deposit
Agreement, the Depositary shall, to the extent permitted by law, distribute to
Holders, on the basis of the same determination as is made in 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 or in the Deposit
Agreement shall obligate the Depositary to make available to the Holder hereof
a method to receive the elective distribution in Shares (rather than ADSs) if
the conditions described in Section 4.3 of the Deposit Agreement are not
satisfied. There can be no assurance that the Holder hereof will be given the
opportunity to receive elective distributions on the same terms and conditions
as the holders of Shares.
Upon timely receipt by the Depositary of a notice indicating that the
Company wishes rights to subscribe for additional Shares to be made available
to Holders of ADSs, the Depositary upon consultation with the Company, shall
determine, whether it is lawful and reasonably practicable to make such rights
available to the Holders. The Depositary shall make such rights available to
any Holders only if (i) the Company shall have timely requested that such
rights be made available to Holders, (ii) the Depositary shall have received
the documentation contemplated in the Deposit Agreement, and (iii) the
Depositary shall have determined that such distribution of rights is reasonably
practicable. If such conditions are not satisfied, the Depositary shall sell
the rights as described below. In the event all conditions set forth above are
satisfied, the Depositary shall establish an ADS Record Date (upon the terms
described in the Deposit Agreement) and establish procedures (x) to distribute
rights to purchase additional ADSs (by means of warrants or otherwise)in
proportion to the number of ADSs held, (y) to enable the Holders or holders of
warrants, as the case may be, to exercise the rights or warrants (upon payment
of the subscription price and of the applicable (a) fees and charges of, and
expenses incurred by, the Depositary, in each case, as set forth in Section 5.9
of, and Exhibit B to, the Deposit Agreement, (b) governmental charges and (c)
taxes) and, if applicable, to enable Holders or holders of warrants, as the
case may be, to sell or transfer such rights or warrants, as the case may be,
and (z) to deliver ADSs upon the valid exercise of such rights. Nothing herein
or in the Deposit Agreement shall obligate the Depositary to make available to
the Holders a method to exercise rights to subscribe for Shares (rather than
ADSs).
If (i) the Company does not timely request the Depositary to make the
rights available to Holders or if the Company requests that the rights not be
made available to Holders, (ii) the Depositary fails to receive the
documentation required by the Deposit Agreement or determines it is not
reasonably practicable to make the rights available to Holders, or (iii) any
rights made available are not exercised and appear to be about to lapse, the
Depositary shall, after consultation with the Company, determine whether it is
lawful and reasonably practicable to sell such rights, in a riskless principal
capacity, at such place and upon such terms (including public and private sale)
as it may deem practicable. The Depositary shall, upon such sale, convert and
distribute proceeds of such sale (net of applicable (a) fees and charges of,
and expenses incurred by, the Depositary, in each case, as set forth in Section
5.9 of, and Exhibit B to, the Deposit Agreement, (b) governmental charges and
(c) taxes) upon the terms hereof and of the Deposit Agreement. If the
Depositary is unable to make any rights available to Holders or to arrange for
the sale of the rights upon the terms described above, the Depositary shall
allow such rights to lapse. Neither the Depositary nor the Company shall 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, or (ii) any foreign exchange exposure or loss incurred in
connection with such sale or exercise. The Depositary shall not be responsible
for the content of any materials forwarded to the ADR Holders on behalf of the
Company in connection with the rights distribution.
Notwithstanding anything herein or in the Deposit Agreement to the
contrary, if registration (under the Securities Act or any other applicable
law) of the rights or the securities to which any rights relate may be required
in order for the Company to offer such rights or such securities to Holders and
to sell the securities represented by such rights, the Depositary will not
distribute such rights to the Holders (i) unless and until a registration
statement under the Securities Act (or other applicable law) covering such
offering is in effect or (ii) unless the Company furnishes the Depositary 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 reasonably satisfactory to the Depositary, to the effect that the
offering and sale of such securities to Holders and Beneficial Owners are
exempt from, or do not require registration under, the provisions of the
Securities Act or any other applicable laws. In the event that the Company, the
Depositary or the Custodian shall be required to withhold and does withhold
from any distribution of property (including rights) an amount on account of
taxes or other governmental charges, the amount distributed to the Holders of
ADSs representing such Deposited Securities shall be reduced accordingly. In
the event that the Depositary determines that any distribution in property
(including Shares and rights to subscribe therefor) is subject to any tax or
other governmental charges which the Depositary is obligated to withhold, the
Depositary may dispose of all or a portion of such property (including Shares
and rights to subscribe therefor) in such amounts and in such manner, including
by public or private sale, as the Depositary deems necessary and practicable to
pay any such taxes or charges.
There can be no assurance that Holders generally, or any Holder in
particular, will be given the opportunity to exercise rights on the same terms
and conditions as the holders of Shares or to exercise such rights. Nothing
herein or in the Deposit Agreement shall obligate the Company to file any
registration statement in respect of any rights or Shares or other securities
to be acquired upon the exercise of such rights.
Upon receipt of a notice indicating that the Company wishes property
other than cash, Shares or rights to purchase additional Shares, to be made to
Holders of ADSs, the Depositary shall consult with the Company to determine
whether such distribution to Holders is lawful and reasonably practicable. The
Depositary shall not make such distribution unless (i) the Company shall have
requested the Depositary to make such distribution to Holders, (ii) the
Depositary shall have received the documentation contemplated in the Deposit
Agreement, and (iii) the Depositary, after consulting with the Company, shall
have determined that such distribution is reasonably practicable. Upon
satisfaction of such conditions, the Depositary shall distribute the property
so received to the Holders of record, as of the ADS Record Date, in proportion
to the number of ADSs held by them respectively and in such manner as the
Depositary may deem practicable for accomplishing such distribution (i) upon
receipt of payment or net of the applicable fees and charges of, and expenses
incurred by, the Depositary, in each case, as set forth in Section 5.9 of, and
Exhibit B to, the Deposit Agreement, and (ii) net of any governmental charges
and (iii) net of any taxes withheld. The Depositary may dispose of all or a
portion of the property so distributed and deposited, in such amounts and in
such manner (including public or private sale) as the Depositary may deem
practicable or necessary to satisfy any taxes (including applicable interest
and penalties) or other governmental charges applicable to the distribution.
If the conditions above are not satisfied, the Depositary shall sell
or cause such property to be sold in a public or private sale, at such place or
places and upon such terms as it may deem practicable and shall (i) cause the
proceeds of such sale, if any, to be converted into Dollars and (ii) distribute
the proceeds of such conversion received by the Depositary (net of applicable
(a) fees and charges of, and expenses incurred by, the Depositary, in each
case, as set forth in Section 5.9 of, and Exhibit B to, the Deposit Agreement,
(b) governmental charges and (c) taxes) to the Holders as of the ADS Record
Date upon the terms hereof and of the Deposit Agreement. If the Depositary is
unable to sell such property, the Depositary may dispose of such property for
the account of the Holders in any way it deems reasonably practicable under the
circumstances.
Neither the Depositary nor the Company shall be responsible for (i)
any failure to determine that it may be lawful or practicable to make the
property described in Section 4.5 of the Deposit Agreement or in this paragraph
(14) available to Holders in general or any Holders in particular, nor (ii) any
foreign exchange exposure or loss incurred in connection with the sale or
disposal or such property.
(15) REDEMPTION. Upon timely receipt of notice from the Company that
it intends to exercise its right of redemption in respect of any of the
Deposited Securities, and a satisfactory opinion of counsel, and unless the
Depositary shall have reasonably determined that such proposed redemption is
not practicable, the Depositary shall (to the extent practicable) provide to
each Holder a notice setting forth the Company's intention to exercise the
redemption rights and any other particulars set forth in the Company's notice
to the Depositary. Upon receipt of confirmation that the redemption has taken
place and that funds representing the redemption price have been received, the
Depositary shall convert, transfer, distribute the proceeds (net of applicable
(a) fees and charges of, and expenses incurred by, the Depositary, in each
case, as set forth in Section 5.9 of, and Exhibit B to, the Deposit Agreement,
(b) governmental charges and (c) taxes), retire ADSs and cancel ADRs upon
delivery of such ADSs by Holders thereof upon the terms of the Deposit
Agreement. If less than all outstanding Deposited Securities are redeemed, the
ADSs to be retired will be selected by lot or on a pro rata basis, as may be
determined by the Depositary. The redemption price per ADS shall be the dollar
equivalent of the per share amount received by the Depositary (adjusted to
reflect the ADS(s)-to-Share(s) ratio) upon the redemption of the Deposited
Securities represented by ADSs (subject to the terms of the Deposit Agreement
and the applicable fees and charges of, and expenses incurred by, the
Depositary, in each case, as set forth in Section 5.9 of, and Exhibit B to, the
Deposit Agreement, and taxes) multiplied by the number of Deposited Securities
represented by each ADS redeemed.
(16) FIXING OF ADS RECORD DATE. Whenever the Depositary shall receive
notice of the fixing of a record date by the Company for the determination of
holders of Deposited Securities entitled to receive any distribution (whether
in cash, Shares, rights or other distribution), or whenever for any reason the
Depositary causes a change in the number of Shares that are represented by each
ADS, or whenever the Depositary shall receive notice of any meeting of, or
solicitation of consents or proxies of, holders of Shares or other Deposited
Securities, or whenever the Depositary shall find it necessary or convenient in
connection with the giving of any notice, solicitation of any consent or any
other matter, the Depositary shall, after consultation with the Company, fix a
record date ("ADS Record Date") for the determination of the Holders of ADRs
who shall be entitled to receive such distribution, to give instructions for
the exercise of voting rights at any such meeting, to give or withhold such
consent, to receive such notice or solicitation or to otherwise take action, or
to exercise the rights of Holders with respect to such changed number of Shares
represented by each ADS. Subject to applicable law and the terms and conditions
of this ADR and the Deposit Agreement, only the Holders of ADRs at the close of
business in New York on such ADS Record Date shall be entitled to receive such
distributions, to give such instructions, to receive such notice or
solicitation, or otherwise take action.
(17) VOTING OF DEPOSITED SECURITIES. As soon as practicable after
receipt of notice of any meeting at which the holders of Deposited Securities
are entitled to vote, or of solicitation of consents or proxies from holders of
Deposited Securities, the Depositary shall fix the ADS Record Date in respect
of such meeting or solicitation of such consent or proxy. The Depositary shall,
as soon as practicable, if requested by the Company in writing in a timely
manner (the Depositary having no obligation to take any further action if the
request shall not have been received by the Depositary at least thirty (30)
days prior to the date of such vote or meeting), at the Company's expense and
provided no U.S. legal prohibitions exist, distribute to Holders as of the ADS
Record Date: (a) such notice of meeting or solicitation of consent or proxies,
(b) a statement that the Holders at the close of business on the ADS Record
Date will be entitled, subject to any applicable law, the provisions of the
Deposit Agreement, the Company's Memorandum and Articles of Association and the
provisions of or governing Deposited Securities (which provisions, if any,
shall be summarized in pertinent part by the Company), to instruct the
Depositary as to the exercise of the voting rights, if any, pertaining to the
Deposited Securities represented by such Holder's ADSs and (c) a brief
statement as to the manner in which such voting instructions may be given,
including an express indication that such instructions may be given or deemed
given in accordance with the last sentence of the following paragraph if no
instruction is received, to the Depositary to give a discretionary proxy to a
person designated to the Company. Voting instructions may be given only in
respect of a number of ADSs representing an integral number of Deposited
Securities. Upon the timely receipt of voting instructions from a Holder of
ADSs as of the ADS Record Date in the manner specified by the Depositary, the
Depositary shall endeavor, insofar as practicable and permitted under
applicable law and the provisions of the Deposit Agreement, the Memorandum and
Articles of Association of the Company and the provisions of the Deposited
Securities, to vote, or cause the Custodian to vote, the Deposited Securities
represented by such Holder's ADSs in accordance with such instructions.
Neither the Depositary nor the Custodian shall under any circumstances
exercise any discretion as to voting and neither the Depositary nor the
Custodian shall vote, attempt to exercise the right to vote, or in any way make
use of, for purposes of establishing a quorum or otherwise the Deposited
Securities represented by ADSs, except pursuant to and in accordance with the
voting instructions (including those received in electronic form) timely
received from Holders or as otherwise contemplated herein. If the Depositary
timely receives voting instructions from a Holder which fail to specify the
manner in which the Depositary is to vote the Deposited Securities represented
by such Holder's ADSs, the Depositary will deem such Holder (unless otherwise
specified in the notice distributed to Holders) to have instructed the
Depositary to vote in favor of the items set forth in such voting instructions.
Notwithstanding the foregoing sentence, if (i) the Company timely provides
notice to the Depositary pursuant to the provision of the second sentence of
Section 4.10 of the Deposit Agreement and (ii) no instructions are received by
the Depositary from a Holder with respect to any of the Deposited Securities
represented by the American Depositary Shares evidenced by such Holder's ADRs
on or before the date established by the Depositary for such purpose, the
Depositary shall 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 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 such proxy given, (y) the Company is aware that
substantial opposition exists or (z) such matter materially and adversely
affects the rights of holders of Shares; provided, further, that the Company
will have no liability to any Holder or Beneficial Owner resulting from such
notification. Notwithstanding anything else contained herein, the Depositary
shall, if so requested in writing by the Company, represent all Deposited
Securities (whether or not voting instructions have been received in respect of
such Deposited Securities from Holders as of the ADS Record Date) for the sole
purpose of establishing quorum at a meeting of shareholders.
Notwithstanding any other provision in this Deposit Agreement, the
Company's board of directors may, pursuant to the provisions of or governing
the Deposited Securities suspend the voting rights of any Deposited Securities.
If the Company's board of directors suspends such rights, the Company will
promptly provide a notice to the Depositary, specifying (i) the identity of the
Holder or Beneficial Owner to be disenfranchised of its voting rights with
respect to ADSs evidenced by ADRs, (ii) the matters upon which such Holder or
Beneficial Owner may not vote or instruct the Depositary or Custodian to vote
the Deposited Securities and (iii) instructions to the Depositary with respect
to such other actions as it may deem necessary or desirable to enforce the
restrictions on the exercise of voting rights set forth in the preceding
sentence. The Depositary will use all reasonable efforts to comply with such
Company instructions (provided such instructions are in compliance with
applicable laws), and Holders and Beneficial Owners of ADRs agree to comply
with any Company instructions in respect of any such restrictions or
instructions.
Notwithstanding anything else contained in the Deposit Agreement or
this ADR, the Depositary shall not have any obligation to take any action with
respect to any meeting, or solicitation of consents or proxies, of holders of
Deposited Securities if the taking of such action would violate U.S. laws. The
Company agrees to take any and all actions reasonably necessary to enable
Holders and Beneficial Owners to exercise the voting rights accruing to the
Deposited Securities and to deliver to the Depositary an opinion of U.S.
counsel addressing any actions requested to be taken if so reasonably requested
by the Depositary. 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.
Subject to the applicable laws or rules of any securities exchange on
which the Deposited Securities are listed or traded, at least three (3) days
prior to the date of such meeting, the Depositary shall, if requested and at
the expense of the Company, deliver to the Company copies of all voting
instructions received from Holders of Receipts, if any, in accordance with
which the Depositary will vote, or cause the Custodian to vote, the Deposited
Securities represented by the ADSs evidenced by such ADRs at such meeting.
(18) CHANGES AFFECTING DEPOSITED SECURITIES. Upon any change in
nominal or par value, split-up, cancellation, consolidation or any other
reclassification of Deposited Securities, or upon any recapitalization,
reorganization, merger or consolidation or sale of assets affecting the Company
or to which it is a party, any securities which shall be received by the
Depositary or the Custodian in exchange for, or in conversion of or replacement
of or otherwise in respect of, such Deposited Securities shall, to the extent
permitted by law, be treated as new Deposited Securities under the Deposit
Agreement, and the ADSs shall, subject to the terms of this Deposit Agreement
and applicable laws, including any applicable provisions of the Securities Act
and the Securities Exchange Act of 1934, thenceforth represent the new
Deposited Securities so received, unless additional or new ADSs are created
pursuant to the following sentence. The Depositary may, with the Company's
approval, and shall, if the Company shall so request, subject to the terms of
the Deposit Agreement and receipt of satisfactory documentation contemplated by
the Deposit Agreement, execute and deliver additional ADRs as in the case of a
stock dividend on the Shares, or call for the surrender of outstanding ADRs to
be exchanged for new ADRs, in either case, as well as in the event of newly
deposited Shares, with necessary modifications to the form of ADR contained in
this Exhibit A to the Deposit Agreement, specifically describing such new
Deposited Securities or corporate change. Notwithstanding the foregoing, in the
event that any security so received may not be lawfully distributed to some or
all Holders in the reasonable judgment of the Depositary, the Depositary may,
with the Company's approval, and shall if the Company requests, subject to
receipt of reasonably satisfactory legal documentation contemplated in the
Deposit Agreement, sell such securities at public or private sale, at such
place or places and upon such terms as it may deem proper and may allocate the
net proceeds of such sales (net of (a) applicable fees and charges of, and
expenses incurred by, the Depositary (in each case, as set forth in Section 5.9
of, and Exhibit B to, the Deposit Agreement), (b) governmental charges and (c)
taxes) for the account of the Holders otherwise entitled to such securities and
distribute the net proceeds so allocated to the extent practicable as in the
case of a distribution received in cash pursuant to the Deposit Agreement.
Neither the Depositary nor the Company shall 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.
As soon as reasonably practicable following receipt of notice of the
occurrence of any such change, conversion or exchange covered by this Section
in respect of the Deposited Securities, the Depositary shall, subject to
applicable law, given notice thereof in writing, at the Company's expense, to
all Holders.
(19) EXONERATION. The Depositary and the Company undertake to perform
such duties and only such duties as are specifically set forth in this Deposit
Agreement, and no implied covenants or obligations shall be read into this
Deposit Agreement against the Depositary or the Company. Neither the Depositary
nor the Company shall be obligated to do or perform any act which is
inconsistent with the provisions of the Deposit Agreement or incur any
liability (i) if the Depositary or the Company shall be prevented or forbidden
from, or subjected to any civil or criminal penalty or restraint on account of,
or delayed in, doing or performing any act or thing required by the terms of
the Deposit Agreement and this ADR, by reason of any provision of any present
or future law or regulation of the United States, the Cayman Islands or any
other country, or of any other governmental authority or regulatory authority
or stock exchange, or on account of possible criminal or civil penalties or
restraint, or by reason of any provision, present or future, of the Memorandum
and Articles of Association of the Company or any provision of or governing any
Deposited Securities, or by reason of any act of God or war or other
circumstances beyond its control (including, without limitation,
nationalization, expropriation, currency restrictions, work stoppage, strikes,
civil unrest, acts of terrorism, revolutions, rebellions, explosions and
computer failure), (ii) by reason of any exercise of, or failure to exercise,
any discretion provided for in the Deposit Agreement or in the Memorandum and
Articles of Association of the Company or provisions of or governing Deposited
Securities, (iii) for any action or inaction in reliance upon the advice of or
information from legal counsel, accountants, any person presenting Shares for
deposit, any Holder, any Beneficial Owner or authorized representative thereof,
or any other person believed by it in good faith to be competent to give such
advice or information, (iv) for the inability by a Holder or Beneficial Owner
to benefit from any distribution, offering, right or other benefit which is
made available to holders of Deposited Securities but is not, under the terms
of the Deposit Agreement, made available to Holders of ADSs or (v) for any
consequential or punitive damages for any breach of the terms of the Deposit
Agreement. Except as otherwise provided herein, the Company and the Depositary
assume no liability for any act taken or for any failure to take any act
required to be taken hereunder. The Depositary, its directors, officers,
employees, agents and Affiliates, and the Company, its directors, officers,
employees, agents, and Affiliates, may rely and shall be protected in acting
upon any written notice, request or other document believed by it to be genuine
and to have been signed or presented by the proper party or parties. No
disclaimer of liability under the Securities Act is intended by any provision
of the Deposit Agreement or this ADR.
(20) STANDARD OF CARE. The Company, the Depositary and their
respective agents assume no obligation and shall not be subject to any
liability under the Deposit Agreement or this ADR to any Holder(s) or
Beneficial Owner(s), except that the Company and Depositary agree to perform
their respective obligations specifically set forth in the Deposit Agreement
and this ADR without negligence or bad faith. Without limitation of the
foregoing, neither the Depositary, nor the Company, nor any of their respective
directors, officers, employees, agents or Affiliates, shall be under any
obligation to appear in, prosecute or defend any action, suit or other
proceeding in respect of any Deposited Securities or in respect of the ADRs,
which in its opinion may involve it in expense or liability, unless indemnity
satisfactory to it against all expense (including fees and disbursements of
counsel) and liability be furnished as often as may be required (and no
Custodian shall be under any obligation whatsoever with respect to such
proceedings, the responsibility of the Custodian being solely to the
Depositary). Neither the Depositary and its agents nor the Company shall be
liable for any failure to carry out any instructions to vote any of the
Deposited Securities, or for the manner in which any vote is cast or the effect
of any vote, provided that any such action or omission is in good faith and in
accordance with the terms of this Deposit Agreement. Neither the Depositary nor
the Company shall incur any liability for any failure to determine that any
distribution or action may be lawful or reasonably practicable, for any
investment risk associated with acquiring an interest in the Deposited
Securities, for the validity or worth of the Deposited Securities, for any tax
consequences that may result from the ownership of ADSs, Shares or Deposited
Securities, or for the credit-worthiness of any third party. The Depositary
shall not incur any liability 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 allowing any rights to lapse upon the terms of the
Deposit Agreement or for the failure or timeliness of any notice from the
Company.
(21) RESIGNATION AND REMOVAL OF THE DEPOSITARY; APPOINTMENT OF
SUCCESSOR DEPOSITARY. The Depositary may at any time resign as Depositary under
the Deposit Agreement 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, or (ii) upon the appointment of a
successor depositary and its acceptance of such appointment as provided in the
Deposit Agreement. The Depositary may at any time be removed by the Company by
written notice of such removal, which removal shall be effective on the earlier
of (i) the 90th day after delivery thereof to the Depositary, or (ii) upon the
appointment of a successor depositary and its acceptance of such appointment as
provided in the Deposit Agreement. In case at any time the Depositary acting
hereunder shall resign or be removed, the Company shall use its best efforts to
appoint a successor depositary, which shall be a bank or trust company having
an office in the Borough of Manhattan, the City of New York. Every successor
depositary shall execute and deliver to its predecessor and to the Company an
instrument in writing accepting its appointment hereunder, and thereupon such
successor depositary, without any further act or deed (except as required by
applicable law), shall become fully vested with all the rights, powers, duties
and obligations of its predecessor. The predecessor depositary, upon payment of
all sums due it and on the written request of the Company, shall (i) execute
and deliver an instrument transferring to such successor all rights and powers
of such predecessor hereunder (other than as contemplated in the Deposit
Agreement), (ii) duly assign, transfer and deliver all right, title and
interest to the Deposited Securities to such successor, and (iii) deliver to
such successor a list of the Holders of all outstanding ADRs and such books and
records maintained by such predecessor with respect to its function as
Depositary hereunder, and such other information relating to ADRs and Holders
thereof as the successor may reasonably request. Any such successor depositary
shall promptly provide notice of its appointment to such Holders. Any
corporation into or with which the Depositary may be merged or consolidated
shall be the successor of the Depositary without the execution or filing of any
document or any further act.
(22) AMENDMENT/SUPPLEMENT. Subject to the terms and conditions of this
paragraph 22, the Deposit Agreement and applicable law, this ADR and any
provisions of the Deposit Agreement may at any time and from time to time be
amended or supplemented by written agreement between the Company and the
Depositary in any respect which they may deem necessary or desirable without
the prior written consent of the Holders or Beneficial Owners. Any amendment or
supplement which shall impose or increase any fees or charges (other than the
charges in connection with foreign exchange control regulations, and taxes and
other governmental charges, delivery and other such expenses), or which shall
otherwise materially prejudice any substantial existing right of Holders or
Beneficial Owners, shall not, however, become effective as to outstanding ADRs
until the expiration of thirty (30) days after notice of such amendment or
supplement shall have been given to the Holders of outstanding ADRs. The
parties hereto agree that any amendments or supplements which (i) are
reasonably necessary (as agreed by the Company and the Depositary) in order for
(a) the ADSs to be registered on Form F-6 under the Securities Act or (b) the
ADSs to be traded solely in electronic book-entry form and (ii) do not in
either such case impose or increase any fees or charges to be borne by Holders,
shall be deemed not to materially prejudice any substantial rights of Holders
or Beneficial Owners. Every Holder and Beneficial Owner at the time any
amendment or supplement so becomes effective shall be deemed, by continuing to
hold such ADS(s) or to hold any beneficial interest therein, to consent and
agree to such amendment or supplement and to be bound by the Deposit Agreement
and this ADR as amended or supplemented thereby. In no event shall any
amendment or supplement impair the right of the Holder to surrender such ADR
and receive therefor the Deposited Securities represented thereby, except in
order to comply with mandatory provisions of applicable law. Notwithstanding
the foregoing, if any governmental body should adopt new laws, rules or
regulations which would require an amendment of, or supplement to, the Deposit
Agreement to ensure compliance therewith, the Company and the Depositary may
amend or supplement the Deposit Agreement and this ADR at any time in
accordance with such changed laws, rules or regulations. Such amendment or
supplement to the Deposit Agreement in such circumstances may become effective
before a notice of such amendment or supplement is given to Holders or within
any other period of time as required for compliance with such laws, or rules or
regulations.
(23) TERMINATION. The Depositary shall, at any time at the written
direction of the Company, terminate the Deposit Agreement by mailing notice of
such termination to the Holders of all ADRs then outstanding at least thirty
(30) days prior to the date fixed in such notice for such termination. If
ninety (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
providing notice of such termination to the Holders of all ADRs then
outstanding at least thirty (30) days prior to the date fixed for such
termination. On and after the date of termination of the Deposit Agreement, the
Holder will, upon surrender of such Holders' ADR(s) at the Principal Office of
the Depositary, upon the payment of the charges of the Depositary for the
surrender of ADSs referred to in paragraph (2) hereof and in the Deposit
Agreement and subject to the conditions and restrictions therein set forth, and
upon payment of any applicable taxes or governmental charges, be entitled to
Delivery, to him or upon his order, of the amount of Deposited Securities
represented by such ADR. If any ADRs shall remain outstanding after the date of
termination of the Deposit Agreement, the Registrar thereafter shall
discontinue the registration of transfers of ADRs, and the Depositary shall
suspend the distribution of dividends to the Holders thereof, shall not accept
deposits of Shares (and shall instruct each Custodian to act accordingly) 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 property and rights as provided in the Deposit Agreement, and shall
continue to deliver Deposited Securities, subject to the conditions and
restrictions set forth in the Deposit Agreement, together with any dividends or
other distributions received with respect thereto and the net proceeds of the
sale of any rights or other property, in exchange for ADRs surrendered to the
Depositary (after deducting, or charging, as the case may be, in each case the
charges of the Depositary for the surrender of an ADR, any expenses for the
account of the Holder in accordance with the terms and conditions of the
Deposit Agreement and any applicable taxes or governmental charges or
assessments). At any time after the expiration of six months from the date of
termination of the Deposit Agreement, the Depositary may sell the Deposited
Securities then held hereunder and may thereafter hold uninvested the net
proceeds of any such sale, together with any other cash then held by it
hereunder, in an unsegregated account, without liability for interest, for the
pro rata benefit of the Holders whose ADRs have not theretofore been
surrendered. After making such sale, the Depositary shall be discharged from
all obligations under the Deposit Agreement with respect to the ADRs, the
Deposited Securities and the ADSs, except to account for such net proceeds and
other cash (after deducting, or charging, as the case may be, in each case, the
charges of the Depositary for the surrender of an ADR, any expenses for the
account of the Holder in accordance with the terms and conditions of the
Deposit Agreement and any applicable taxes or governmental charges or
assessments). Upon the termination of the Deposit Agreement, the Company shall
be discharged from all obligations under the Deposit Agreement except as set
forth in the Deposit Agreement.
(24) COMPLIANCE WITH U.S. SECURITIES LAWS. Notwithstanding any
provisions in this ADR or the Deposit Agreement to the contrary, the withdrawal
or delivery of Deposited Securities will not be suspended by the Company or the
Depositary except as would be permitted by Instruction I.A.(1) of the General
Instructions to the Form F-6 Registration Statement, as amended from time to
time, under the Securities Act.
(25) CERTAIN RIGHTS OF THE DEPOSITARY; LIMITATIONS. Subject to the
further terms and provisions of this paragraph (25), the Depositary, its
Affiliates and their agents, on their own behalf, may own and deal in any class
of securities of the Company and its Affiliates and in ADSs. In its capacity as
Depositary, the Depositary shall not lend Shares or ADSs; provided, however,
that subject to the terms and provisions of the Deposit Agreement and to the
extent permitted by applicable law, the Depositary may, unless otherwise
requested in writing by the Company to cease doing so, (i) issue ADSs prior to
the receipt of Shares pursuant to Section 2.3 of the Deposit Agreement (each
such transaction a "Pre-Release Transaction") and (ii) deliver Shares only upon
the prior receipt and cancellation of ADSs for withdrawal of Deposited
Securities pursuant to Section 2.7 of the Deposit Agreement, including ADSs
which were issued under (i) above but for which Shares may not have been
received. The Depositary may receive ADSs in lieu of Shares under (i) above in
settlement of a Pre-Release Transaction. Each such Pre-Release Transaction will
be (a) subject to a written agreement whereby the person or entity (the
"Applicant") to whom ADSs or Shares are to be delivered (v) represents that at
the time of the Pre-Release Transaction the Applicant or its customer owns the
Shares that are to be delivered by the Applicant under such Pre-Release
Transaction, (w) agrees to indicate the Depositary as owner of such Shares or
ADSs in its records and to hold such Shares or ADSs in trust for the Depositary
until such Shares or ADSs are delivered to the Depositary or the Custodian, (x)
unconditionally guarantees to deliver such Shares to the Depositary or the
Custodian, as applicable, (y) agrees (i) to indemnify the Depositary, its
Custodian and the Company for all damages, costs and expenses arising out of
any Pre-Release Transaction requested by the Applicant or its customer, (ii) to
submit to the jurisdiction of the federal or state courts located in the county
and state of New York for the resolution of any claims brought in respect of a
Pre-Release Transaction, and (iii) that, at the time of the Pre-Release
Transaction, the Applicant or its customer assigns, conveys and transfers to
the Depositary, and that each Pre-Release Transaction shall constitute an
assignment, conveyance and transfer to the Depositary of, the Shares and all
beneficial right, title and interest therein, including, without limitation (1)
the right to vote or otherwise act with respect to discretionary corporate
actions, (2) any and all distributions with respect to such Shares and (3) any
and all tax credits or refunds arising from such distributions, and (z) agrees
to any additional restrictions or requirements that the Depositary deems
appropriate, (b) at all times fully collateralized with cash, U.S. government
securities or such other collateral as the Depositary deems appropriate, (c)
terminable by the Depositary on not more than five (5) business days' notice
and (d) subject to such further indemnities and credit regulations as the
Depositary deems appropriate. The Depositary will normally limit the number of
ADSs and Shares involved in such Pre-Release Transactions at any one time to
thirty percent (30%) of the ADSs outstanding (without giving effect to ADSs
outstanding under (i) above), provided, however, that the Depositary reserves
the right to change or disregard such limit from time to time as it deems
appropriate. The Depositary undertakes, for the benefit of the Company, that it
shall enter into a Pre-Release Transaction only in a manner that will not,
under applicable law existing on the date of the Pre-Release Transaction, cause
any U.S. federal income tax consequences to Holders of ADSs to differ from
those that would have occurred had there been no such Pre-Release Transaction.
The Depositary may also set limits with respect to the number of ADSs and
Shares involved in Pre-Release Transactions with any one person on a
case-by-case basis as it deems appropriate. The Depositary may retain for its
own account any compensation received by it in conjunction with the foregoing.
Collateral provided pursuant to (b) above, but not earnings thereon, shall be
held for the benefit of the Holders (other than the Applicant).
(ASSIGNMENT AND TRANSFER SIGNATURE LINES)
FOR VALUE RECEIVED, the undersigned Holder hereby sell(s), assign(s) and
transfer(s) unto ______________________________ whose taxpayer identification
number is _______________________ and whose address including postal zip code
is ________________, the within ADR and all rights thereunder, hereby
irrevocably constituting and appointing ________________________
attorney-in-fact to transfer said ADR on the books of the Depositary with full
power of substitution in the premises.
Dated: Name:________________________________
By:
Title:
NOTICE: The signature of the Holder to this
assignment must correspond with the name as
written upon the face of the within
instrument in every particular, without
alteration or enlargement or any change
whatsoever.
If the endorsement be executed by an
attorney, executor, administrator, trustee
or guardian, the person executing the
endorsement must give his/her full title in
such capacity and proper evidence of
authority to act in such capacity, if not on
file with the Depositary, must be forwarded
with this ADR.
__________________________
SIGNATURE GUARANTEED
All endorsements or assignments of ADRs must
be guaranteed by a member of a Medallion
Signature Program approved by the Securities
Transfer Association, Inc.
LEGENDS
The ADRs issued in respect of Partial Entitlement American Depositary Shares
shall bear the following legend on the face of the ADR: "This ADR evidences
ADSs representing 'partial entitlement' Ordinary Shares of ▇▇▇▇▇▇▇▇▇
Telecommunications International Limited and as such do not entitle the holders
thereof to the same per-share entitlement as other Ordinary Shares (which are
'full entitlement' Ordinary Shares) issued and outstanding at such time. The
ADSs represented by this ADR shall entitle holders to distributions and
entitlements identical to other ADSs when the Ordinary Shares represented by
such ADSs become 'full entitlement' Ordinary Shares."
EXHIBIT B
FEE SCHEDULE
DEPOSITARY FEES AND RELATED CHARGES
All capitalized terms used but not otherwise defined herein shall have the
meaning given to such terms in the Deposit Agreement.
I. DEPOSITARY FEES
The Holders, the Beneficial Owners and the persons depositing Shares
or surrendering ADSs for cancellation agree to pay the following fees of the
Depositary:
---------------------------------------- ------------------------------------- -------------------------------------
Service Rate By Whom Paid
---------------------------------------- ------------------------------------- -------------------------------------
(1) Issuance of ADSs upon deposit Up to U.S. $5.00 per 100 ADSs (or Person depositing Shares or person
of Shares (excluding fraction thereof) issued. receiving ADSs.
issuances contemplated by
paragraphs (3)(b) and (5)
below).
---------------------------------------- ------------------------------------- -------------------------------------
(2) Delivery of Deposited Up to U.S. $5.00 per 100 ADSs (or Person surrendering ADSs for
Securities against surrender fraction thereof) surrendered. purpose of withdrawal of Deposited
of ADSs. Securities or person to whom
Deposited Securities are delivered.
---------------------------------------- ------------------------------------- -------------------------------------
(3) Distribution of (a) cash No fee, to the extent prohibited by Person to whom distribution is made.
dividends or (b) ADSs the exchange upon which the ADSs
pursuant to stock dividends are listed. If the charging of
(or other free distribution such fee is not prohibited, the
of stock). fees specified in (1) above shall
be payable in respect of a
distribution of ADSs pursuant to stock
dividends (or other free distribution
of stock) and the fees specified in
(4) below shall be payable in respect
of distributions of cash.
---------------------------------------- ------------------------------------- -------------------------------------
(4) Distribution of cash proceeds Up to U.S. $2.00 per 100 ADSs (or Person to whom distribution is made.
(i.e., upon sale of rights fraction thereof) held.
and other entitlements).
---------------------------------------- ------------------------------------- -------------------------------------
(5) Distribution of securities Up to U.S. $5.00 per unit of 100 Person to whom distribution is made.
other than ADSs or rights to securities (or fraction thereof)
purchase additional ADSs distributed.
(i.e., spin-off shares).
---------------------------------------- ------------------------------------- -------------------------------------
(6) Distribution of ADSs pursuant Up to U.S. $5.00 per 100 ADSs (or Person to whom distribution is made.
to exercise of rights to fraction thereof) issued.
purchase additional ADSs.
---------------------------------------- ------------------------------------- -------------------------------------
II. CHARGES
Holders, Beneficial Owners, persons depositing Shares for deposit and
persons surrendering ADSs for cancellation and for the purpose of withdrawing
Deposited Securities shall be responsible for the following charges:
(i) taxes (including applicable interest and penalties) and other
governmental charges;
(ii) such registration fees as may from time to time be in effect for the
registration of Shares or other Deposited Securities on the share
register and applicable to transfers of Shares or other Deposited
Securities to or from the name of the Custodian, the Depositary or any
nominees upon the making of deposits and withdrawals, respectively;
(iii) such cable, telex and facsimile transmission and delivery expenses as
are expressly provided in the Deposit Agreement to be at the expense
of the person depositing or withdrawing Shares or Holders and
Beneficial Owners of ADSs;
(iv) the reasonable expenses and charges incurred by the Depositary in the
conversion of foreign currency;
(v) such fees and expenses as are incurred by the Depositary in connection
with compliance with exchange control regulations and other regulatory
requirements applicable to Shares, Deposited Securities, ADSs and
ADRs; and
(vi) the fees and expenses incurred by the Depositary, the Custodian or any
nominee in connection with the servicing or delivery of Deposited
Securities (unless prohibited by the exchange upon which the ADSs are
listed).
