SUPPLEMENT AND AMENDMENT NO. 2 TO DEPOSIT AGREEMENT
SUPPLEMENT
AND AMENDMENT NO. 2 TO DEPOSIT AGREEMENT
SUPPLEMENT
AND AMENDMENT NO. 2, dated
as
of March 6, 2008 (the "Amendment"), to the Deposit Agreement dated as of October
14, 1997, as amended by the Supplement and Amendment to the Deposit Agreement
dated as of June 7, 2003 (as supplemented and amended, the "Deposit Agreement"),
in each case among Continental AG (the "Company"), Deutsche Bank Trust Company
Americas as successor Depositary, and each Holder and Beneficial Owner from
time
to time of American Depositary Receipts ("ADRs") issued thereunder.
W I T N E S S E T H:
WHEREAS,
the Company and the Depositary are parties to the Deposit Agreement;
and
WHEREAS,
the Company and the Depositary desire to amend the voting provisions of the
Deposit Agreement and the ADRs;
NOW,
THEREFORE, for
good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Depositary hereby agree to amend the Deposit
Agreement as follows:
ARTICLE
I
DEFINITIONS
SECTION
1.01. Definitions.
Unless
otherwise defined in this Amendment, all capitalized terms used, but not
otherwise defined, herein shall have the meaning given to such terms in the
Deposit Agreement.
ARTICLE
II
AMENDMENTS
TO DEPOSIT AGREEMENT
All
references in the Deposit Agreement to the term “Deposit Agreement” shall, as of
the Effective Date (as herein defined), refer to the Deposit Agreement as
supplemented and amended hereby.
ARTICLE
III
AMENDMENTS
TO THE FORM OF ADR
SECTION
3.01. The
address of the Commission set forth in the form of ADR is amended by deleting
the address set forth therein and replacing it with "100 X. Xxxxxx, X.X.,
Xxxxxxxxxx, X.X. 00000".
SECTION
3.02. Paragraph
(13) of the form of ADR is amended to read as follows:
Upon
receipt of (a) notice from the Company of any meeting of holders of Shares
or
other Deposited Securities and (b) the statement of the Custodian or such other
major commercial German bank as may be reasonably chosen by the Depositary
to
act as a proxy bank (the "Proxy Bank"), setting forth its recommendations with
regard to voting of the Shares as to any matter which is set forth in the notice
from the Company on which a vote is to be taken by holders of Shares, together
with an English translation thereof (the "Recommendation"), unless otherwise
requested in writing by the Company, the Depositary shall, as soon as
practicable thereafter, mail to the Holders a notice, which shall contain (i)
such information as is contained in such notice of meeting and (ii) a statement
that the Holders as of the close of business on a specified record date will
be
entitled, subject to any applicable provision of German law, the Articles of
Association of the Company, the ADRs and the Deposited Securities, to exercise,
or to give instructions for the exercise of, the voting rights, if any,
pertaining to the whole number of Shares or other Deposited Securities
represented by their respective ADSs on such date (c) the Recommendation and
(d)
a statement as to the manner in which such instructions may be given, including
an express indication that if no voting instructions are received on or before
the date established by the Depositary for such purpose (the "Instruction Date")
then the Holders shall in each case be deemed to have instructed the Depositary
to vote or cause the shares to be voted in accordance with the
Recommendation.
2
Upon
the
written request of an Holder on such record date, received on or before the
Instruction Date, the Depositary shall endeavor, insofar as practicable and
permitted under German law, the Articles of Association of the Company and
the
ADRs, to vote or cause to be voted the amount of Shares or other Deposited
Securities represented by the ADSs evidenced by such ADR in accordance with
the
instructions set forth in such request. The Company agrees, without any
liability to the Holders arising hereunder, to provide notice, to the extent
practicable, of any meeting of holders of Shares or other Deposited Securities
containing the requisite information, together with English translations, to
the
Depositary within the five business days following the publication of the
invitation to the shareholders meeting in the German Federal Gazette.
Voting rights may be exercised only in respect of whole ADSs.
The Depositary shall not vote or attempt to exercise the right to vote
that attaches to the Shares or other Deposited Securities, other than in
accordance with such instructions or deemed instructions received from the
Holders as of such record date.
Subject
to the following paragraph, if no specific voting instructions are received
by
the Depositary from any Holder (to whom Notice was sent by the Depositary)
with
respect to the Deposited Securities represented by the ADSs evidenced by such
ADRs on or before the Instruction Date, such Holder shall be deemed, and the
Depositary shall deem such Holder, to have instructed the Depositary to vote
such Deposited Securities or to cause such Deposited Securities to be voted
in
accordance with the Recommendation provided, however, that no such instruction
shall be deemed given and no vote of Deposited Securities shall be made by
the
Depositary 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 the
Depositary to deem such Holder to have instructed the Depositary to vote in
accordance with the Recommendation, (y) substantial opposition exists or (z)
the
matter would materially affect 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. In no event may the Depositary itself
exercise any voting discretion over any Shares or other Deposited
Securities.
Anything
in the Deposit Agreement to the contrary notwithstanding, in the event that
the
Proxy Bank shall fail to supply the Recommendation to the Depositary at least
twenty-one (21) calendar days prior to any meeting of holders of Shares or
other
Deposited Securities with respect to which the Depositary has received notice
from the Company, the Depositary shall mail the Notice (which in this case
will
not contain the Recommendation or the indication concerning the proxy to be
given to the Proxy Bank) to the Holders as herein above provided, and,
thereafter, in any case in which no specific voting instructions are received
by
the Depositary from an Holder on or before the Instruction Date with respect
to
the Deposited Securities represented by the ADSs evidenced by such ADRs, no
votes shall be cast at such meeting with respect to such Deposited
Securities.
Nothing
in the Deposit Agreement shall be construed to grant to an Holder any voting
rights with respect to Deposited Securities to which, by their terms, voting
rights do not otherwise attach.
3
SECTION
3.03. The
form
of ADR, reflecting the amendments set forth in Article III hereof, is amended
and restated to read as set forth as Exhibit A hereto.
ARTICLE
IV
REPRESENTATIONS
AND WARRANTIES
SECTION
4.01. Representations
and Warranties.
The
Company represents and warrants to, and agrees with, the Depositary and the
Holders, that:
(a)
This
Amendment, when executed and delivered by the Company, will be duly and validly
authorized, executed and delivered by the Company, and it and the Deposit
Agreement as amended hereby constitute the legal, valid and binding obligations
of the Company, enforceable against the Company in accordance with their
respective terms, subject to bankruptcy, insolvency, fraudulent transfer,
moratorium and similar laws of general applicability relating to or affecting
creditors’ rights and to general equity principles; and
(b)
In
order to ensure the legality, validity, enforceability or admissibility into
evidence of this Amendment or the Deposit Agreement as amended hereby, neither
of such agreements need to be filed or recorded with any court or other
authority in the Federal Republic of Germany, nor does any stamp or similar
tax
or governmental charge need to be paid in the Federal Republic of Germany on
or
in respect of such agreements.
ARTICLE
V
MISCELLANEOUS
SECTION
5.01. Effective
Date.
This
Amendment is dated as of the date set forth above and shall be effective thirty
days after notice hereof as been first provided to Holders (the "Effective
Date").
SECTION
5.02. Outstanding
ADRs.
ADRs
issued prior or subsequent to the date hereof, which do not reflect the changes
to the form of ADR effected hereby, do not need to be called in for exchange
and
may remain outstanding until such time as the Holders thereof choose to
surrender them for any reason under the Deposit Agreement. The Depositary is
authorized and directed to take any and all actions deemed necessary to effect
the foregoing.
4
SECTION
5.03. Indemnification.
The
parties hereto shall be entitled to the benefits of the indemnification
provisions of the Deposit Agreement in connection with any and all liability
it
or they may incur as a result of the terms of this Amendment and the
transactions contemplated herein.
SECTION
5.04. Counterparts.
This
Amendment may be executed in any number of counterparts, each of which shall
be
deemed an original and all of which taken together shall constitute one
instrument.
5
IN
WITNESS WHEREOF,
the
Company and the Depositary have caused this Amendment to be executed by
representatives thereunto duly authorized as of the date set forth
above.
CONTINENTAL
AG
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By:
______________________________________
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Name:
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Title:
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By:
______________________________________
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Name:
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Title:
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DEUTSCHE
BANK TRUST COMPANY AMERICAS, as Depositary
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By:
______________________________________
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Name:
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Title:
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By:
______________________________________
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Name:
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Title:
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6
EXHIBIT
A
ANNEXED
TO AND INCORPORATED IN
THE
DEPOSIT AGREEMENT
(FORM
OF
ADR)
CERTAIN
RIGHTS OF THE HOLDER OF THIS AMERICAN DEPOSITARY RECEIPT MAY BE WITHHELD IN
ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH (8) HEREOF, INCLUDING, WITHOUT
LIMITATION, VOTING RIGHTS AND THE RIGHT TO RECEIVE DIVIDENDS AND OTHER
DISTRIBUTIONS
Number
DBTCA-
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AMERICAN
DEPOSITARY SHARES
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(Each
American Depositary Share represents one deposited
Share)
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CUSIP:
000000000
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DEUTSCHE
BANK TRUST COMPANY AMERICAS
AMERICAN
DEPOSITARY RECEIPT
FOR
COMMON SHARES
OF
EURO
2.56 PER SHARE OF
CONTINENTAL
AG
(INCORPORATED
UNDER THE
LAWS
OF
THE FEDERAL REPUBLIC OF GERMANY)
DEUTSCHE
BANK TRUST COMPANY AMERICAS, as depositary (the "Depositary")
hereby
certifies that __________,
or
registered assigns, is the registered owner (a "Holder")
of
_____________ American Depositary Shares ("ADSs"),
each
(subject to Paragraphs (11) and (14)) representing one common share, par value
EURO 2.56 per share or, subject to Paragraph (5) below, rights to receive such
shares ("Shares"), of Continental AG, a stock corporation organized under the
laws of the Federal Republic of Germany (the "Company"), deposited
or subject to deposit under the Agreement (as hereinafter defined) at Deutsche
Bank A.G., Eschborn, Domestic Custody Services, Xxxxxx-Herrhausen-Allee 16-24,
Eschborn 00000, Xxxxxxx, as custodian (subject to Section 7 of the Agreement,
the "Custodian"),
and
any and all other securities or cash from time to time received by the
Depositary or the Custodian in respect or in lieu of such deposited Shares
and
held under the Agreement (the deposited Shares, together with such securities
and cash, the "Deposited
Securities").
This
ADR is issued pursuant to the Amended and Restated Deposit Agreement dated
as of
October
14, 1997 (as amended and supplemented as of July 7, 2003 and as further amended
from time to time, the "Agreement") among
the
Company, the Depositary and all Holders and persons with a beneficial interest
("Beneficial
Owners".)
from
time to time of American Depositary Receipts issued thereunder ("ADRs"), each
of
whom by accepting an ADR or any interest therein agrees to become a party
thereto and to be bound by all of the terms and conditions thereof and hereof.
Copies of the Agreement are on file at the Depositary's Corporate Trust Office
referred to below and at the office of the Custodian. This ADR (which includes
the provisions set forth on the reverse hereof) shall be governed by and
construed in accordance with the laws of the State of New York. The terms and
conditions of the Agreement are hereby incorporated by reference into this
ADR.
1
(1)
Withdrawal
of Deposited Securities.
Subject
to Paragraphs (4), (7) and (9), upon surrender of this ADR in form satisfactory
to the Depositary accompanied by such instruments of transfer as the Depositary
may require at the Depositary's Corporate Trust Office referred to below, the
Holder hereof is entitled to delivery, as promptly as practicable, (i) to an
account designated by such Holder with Clearstream Banking A.G. Frankfurt and
any successor entity ("Clearstream"), of the Shares and the other Deposited
Securities that are eligible for deposit with Clearstream and (ii) at the office
of the Custodian, of any Deposited Securities that are not eligible for deposit
with Clearstream, in each case at the time underlying this ADR. At the request,
risk and expense of the Holder hereof, the Depositary may deliver Deposited
Securities (other than Shares) at the Depositary's Corporate Trust
Office.
(2)
Register.
The
Depositary shall keep, at the office of the Depositary in The City of New York
at which at any particular time its depositary receipt business is administered,
which at the date of the Agreement is 00 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000
(the "Depositary's
Corporate Trust Office"),
(a) a
register (the "Register")
for
the registration, registration of transfer, combination and split-up of ADRs,
which at all reasonable times shall be open for inspection by Holders solely
for
the purpose of communicating with Holders in the interest of the business of
the
Company or a matter related to the Agreement and (b) facilities for the delivery
and surrender of ADRs. The Depositary may close the Register at any time or
from
time to time when reasonably deemed expedient by it, after consultation with
the
Company to the extent practicable, or when requested by the Company. The
Depositary shall consult promptly with the Company concerning any closing of
the
Register.
3)
Title
to ADRs; Validity.
Title
to this ADR, when properly endorsed or accompanied by proper instruments of
transfer, is transferable by delivery with the same effect as in the case of
a
negotiable instrument under the laws of the State of New York; provided,
however,
that
the Depositary, notwithstanding any notice to the contrary, may treat the person
in whose name this ADR is registered on the Register as the absolute owner
hereof for all purposes. This ADR shall not be valid for any purpose unless
executed by the Depositary by the manual signature of a duly authorized
signatory of the.Depositary; provided,
however,
that,
if a co-registrar for ADRs has been appointed, such signature may be facsimile
if such ADR is countersigned by the manual signature of a duly authorized
signatory of such co-registrar and dated by such signatory.
Dated:
Countersigned:
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DEUTSCHE
BANK TRUST COMPANY AMERICAS,
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as
Depositary
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By
____________________
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By
____________________
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Authorized
Signatory
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THE
DEPOSITARY'S CORPORATE TRUST OFFICE ADDRESS IS 00
XXXX
XXXXXX, XXX XXXX, XXX XXXX 00000
2
[FORM
OF
REVERSE OF RECEIPT]
(4)
Certain
Limitations.
As a
condition precedent to the issue or registration of any ADR (including upon
a
transfer, split-up or combination), any distribution in respect thereof or
the
withdrawal of any Deposited Securities, the Company, the Depositary or the
Custodian may require: (a)
payment with respect thereto of (i) any stock transfer or other tax or other
governmental charge and (ii) any transfer or registration fees charged by third
parties for the transfer of any Deposited Securities, (b) the production of
(i)
proof satisfactory to it of the identity and genuineness of any signature and
(ii) such other information as it may deem necessary or proper consistent with
the Agreement; and (c) compliance with such regulations as the Depositary may
establish consistent with the Agreement. The Depositary shall notify the Company
of any procedures established pursuant to clauses (b) or (c) above. The issuance
of ADRs, the acceptance of deposits of Shares, the registration of transfers
of
ADRs or the withdrawal of Deposited Securities may be suspended, generally
or in
particular instances, when the Register or Clearstream is closed or when any
such action is reasonably deemed expedient by the Depositary, after consultation
with the Company to the extent practicable. The Depositary shall consult
promptly with the Company concerning any suspension of (i) deposits of Shares,
(ii) withdrawals of Deposited Securities or (iii) registrations of transfer
of
ADRs. Registrations of transfers of ADRs and withdrawals of Deposited Securities
shall also be suspended when requested by the Company, including for the purpose
of facilitating orderly voting of the Deposited Securities. Notwithstanding
any
other provision of the Agreement or this ADR, the withdrawal of Deposited
Securities may be restricted only for the reasons set forth in General
Instruction I.A.(1) of Form F-6 under the U.S. Securities Act of 1933, as
amended (the "Securities
Act")
and no
amendment shall impair such requirements.
(5)
Pre-release.
Unless
requested in writing by the Company to cease doing so, the Depositary may,
notwithstanding Section 4 of the Agreement, execute and deliver ADRs prior
to
the receipt of Shares pursuant to Section 3 of the Agreement in a Pre-release
transaction subject to the requirements set out below. The Depositary may
deliver Shares upon the receipt and cancellation of Pre-released ADRs, whether
or. not such cancellation is prior to the termination of such Pre-release or
the
Depositary knows that such ADR has been Pre-released.
The
Depositary may receive ADRs in lieu of Shares in satisfaction of a Prerelease.
Each Pre-release will be (a) preceded or accompanied by a written representation
and agreement from the person to whom ADRs are to be delivered (the
"Pre-releasee")
that
the Pre-releasee, or its customer, (i) owns the Shares or ADRs to be remitted,
as the case may be, (ii) transfers all beneficial right, title and interest
in
such Shares or ADRs, as the case may be, to the Depositary in its capacity
as
such and for the benefit of the Holders, and (iii) will not take any action
with
respect to such Shares or ADRs, as the case may be, that is inconsistent with
the transfer of ownership (including, without the consent of the Depositary,
disposing of Shares or ADRs, as the case may be, other than in satisfaction
of
such Pre-release), (b) at all times fully collateralized with cash, U.S.
government securities or such other collateral as the Depositary determines,
in
good faith, will provide substantially similar liquidity and security, (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 number of Shares not deposited but represented by ADSs
outstanding at any time as a result of Pre-releases will not normally exceed
thirty percent (30%) of the Shares deposited hereunder; provided,
however,
that
the Depositary reserves the right to disregard such limit from time to time
as
it deems reasonably appropriate, and may, with the prior written consent of
the
Company, change such limit for purposes of general application. The Depositary
will also set U.S. dollar limits with respect to Pre-release transactions to
be
entered into hereunder with any particular Pre-releasee on a case-by-case basis
as the Depositary deems appropriate. For purposes of enabling the Depositary
to
fulfill its obligations to the Holders under the Agreement, the collateral
referred to in clause (b) above shall be held by the Depositary as security
for
the performance of the Pre-releasee's obligations to the Depositary in
connection with a Pre-release transaction, including the Pre-releasee's
obligation to deliver Shares or ADRs upon termination of a Pre-release
transaction (and shall not, for the avoidance of doubt, constitute Deposited
Securities hereunder). The Depositary may retain for its own account any
compensation received by it in connection with the foregoing.
3
(6)
Representations
and Warranties.
Every
person depositing Shares under the Agreement is deemed to represent and warrant
that such Shares are validly issued and outstanding, fully paid, nonassessable
and were not acquired in violation of any pre-emptive rights, that the person
making such deposit is duly authorized to do so and that such Shares (A) are
not
"restricted securities" as such term is defined in Rule 144 under the Securities
Act and may be publicly offered or sold in the United States without
registration under the Securities Act or (B) have been registered under the
Securities Act. Such representations and warranties shall survive the deposit
of
Shares and the issuance and cancellation of this ADR.
(7)
Taxes.
If any
tax or other governmental charge shall become payable by or on behalf of the
Custodian or the Depositary with respect to this ADR, any ADSs
evidenced
by this ADR, any Deposited Securities underlying this ADR or any distribution
on
any of the foregoing, such tax or other governmental charge shall be paid by
the
Holder hereof to the Depositary. The Depositary may refuse to effect any
registration of this ADR or any withdrawal of the underlying Deposited
Securities until such payment is made. The Depositary may also deduct from
any
distributions on or in respect of Deposited Securities, or may sell by public
or
private sale for the account of the Holder hereof all or any part of such
Deposited Securities (after attempting by reasonable means to notify the Holder
hereof prior to such sale), and may apply such deduction or the proceeds of
any
such sale in payment of such tax or other governmental charge. The Holder hereof
shall remain liable for any deficiency. Upon any such sale, the Depositary
shall, if appropriate, reduce the number of ADSs evidenced hereby to reflect
any
such sale and shall distribute the net proceeds of any such sale or the balance
of any such property after deduction-of such tax or other governmental charge
to
the Holder hereof.
(8)
Disclosure
of Interests.
The
Depositary and each Beneficial Owner agree to comply with all applicable
provisions of German law and the Company's Articles of Association regarding
the
notification of such person's interest in Shares. The Depositary and each
Beneficial owner acknowledge that such provisions, at the date of the Agreement,
include Sections 21 and 22 of the Securities Trading Act (Wertpapierhandelsgesetz)
and
Section 20 of the Stock Corporation Act (Aktiengesetz).
The
Depositary and each Beneficial Owner acknowledge that, at the date of the
Agreement, (i) the statutory notification obligations of the Securities Trading
Act apply to anyone whose holding, either directly or by way of imputation
pursuant to the provisions of Section 22 of the Securities Trading Act, of
voting rights in the Company reaches or exceeds 5%, 10%, 25%, 50% or 75% or,
after having reached or exceeded any such threshold, falls below that threshold
and (ii) the statutory notification obligations of the Stock Corporation Act
apply to any enterprise that, either directly or by way of imputation pursuant
to the provisions of Section 20(2) or Section
16(4), as applicable, of the Stock Corporation Act, owns more than 25% of the
shares of, or 50% of the shares or voting rights in, the Company or, after
having exceeded either of these thresholds, no longer owns such percentage.
The
Depositary and each Beneficial Owner acknowledge that failure to provide on
a
timely basis any required notification of an interest in Shares may result
in
withholding of certain rights, including voting and dividend rights, in respect
of the Shares in which such Beneficial owner has an interest.
(9)
Charges
of Depositary.
The
Depositary may charge, to the extent permitted by applicable law and the rules
of any securities exchange on which the ADSs are listed or admitted for trading,
each person to whom ADRs are issued against deposits of Shares, including ADRs
issued in respect of Share Distributions, Rights and other Distributions (as
such terms are defined in Paragraph (11)) and changes affecting Deposited
Securities (pursuant to Paragraph (14)), and each person surrendering ADRs
for
withdrawal of Deposited Securities, U.S. $5.00 or less for each 100 ADSs (or
portion thereof) evidenced by the ADRs delivered or surrendered. The
Company will pay all other charges and expenses of the Depositary and any agent
of the Depositary (except the Custodian) only pursuant to agreements from time
to time between the Company and the Depositary, except (i) stock transfer or
other taxes and other governmental charges (which are payable by Holders or
persons depositing or withdrawing Shares), (ii) cable, telex and facsimile
transmission and delivery charges incurred at the request of persons depositing,
or Holders delivering Shares, ADRs or Deposited Securities (which are payable
by
such persons or Holders), (iii) any transfer or registration fees charged by
third parties for transfer of any Deposited Securities in connection with the
deposit or withdrawal of Deposited Securities (which are payable by persons
depositing Shares or Holders withdrawing Deposited Securities) and (iv) expenses
of the Depositary in connection with the conversion of foreign currency into
U.S. dollars (which are paid out of such foreign currency).
4
(10)
Available
Information.
The
Agreement, the Company's Articles of Association, and written communications
from the Company that are received by the Custodian or the Depositary in
accordance with Section 11 of the Agreement, are available for inspection by
Holders at the Depositary's Corporate Trust Office and the office of the
Custodian. The Depositary will mail copies of such communications (or English
translations or summaries thereof) to Holders when requested and furnished
by
the Company, at the Company's expense. The Company furnishes the
Securities and Exchange Commission with certain public reports and documents
pursuant to Rule 12g3-2(b) under the U.S. Securities Exchange Act of 1934.
Such
reports and documents may be inspected and copied at the public reference
facilities maintained by the Commission located at the date of the Agreement
at
000 X Xxxxxx, X.X., Xxxxxxxxxx, X.X. 00000.
(11)
Distributions
on Deposited Securities.
Upon
receipt by the Depositary or the Custodian of any distribution on Deposited
Securities, and subject to Section 6 of the Agreement and to the Paragraphs
(4),
(7) and (9), the Depositary shall, as promptly as practicable, distribute to
each Holder entitled thereto on the record date set by the Depositary therefor,
in proportion to the number of Deposited Securities (on which the following
distributions are received by the Custodian) underlying such Holder's
ADRs:
(a)
Cash.
Any
U.S. dollars available to the Depositary resulting from a cash dividend or
other
cash distribution or the net proceeds of sales of any other distribution or
portion thereof authorized in this Paragraph (11) ("Cash"),
on an
averaged or other practicable basis, subject to appropriate adjustments for
(i)
taxes or other governmental charges withheld, (ii) such distribution being
unlawful or impracticable with respect to certain Holders, (iii) deduction
of
the Depositary's expenses in (1) converting any foreign currency into U.S.
dollars and (2) making any sale by public or private means in any commercially
reasonable manner and (iv) the fees of the Depositary. Only whole U.S. dollars
and cents will be distributed (any fractional cents shall be rounded to the
nearest whole cent and so distributed to the Holders entitled
thereto.
(b)
Shares.
(i)
Additional ADRs evidencing whole ADSs representing any Shares available to
the
Depositary resulting from a dividend or free distribution on Deposited
Securities consisting of Shares (a "Share
Distribution")
and
(ii) U.S. dollars available to it resulting from the net proceeds of sales
of
Shares received in a Share Distribution, which Shares would give rise to
fractional ADSs if additional ADRs were issued therefor, as in the case of
Cash.
If additional receipts are not so distributed each ADS shall thenceforth also
represent the additional Shares distributed upon the Deposited Securities
represented thereby.
(c)
Rights.
(i) To
the extent the Company so instructs and timely furnishes to the Depositary
evidence (the Company having no obligation to so furnish such evidence)
satisfactory to the Depositary (which may include a written opinion from U.S.
counsel to the Company) that the Depositary may lawfully distribute the same,
warrants or other instruments representing rights to acquire additional ADRs
in
respect of any rights to subscribe for additional Shares or rights of any nature
available to the Depositary as a result of a distribution on Deposited
Securities ("Rights"),
or
(ii) to the extent the Company does not furnish such evidence and/or so instruct
the Depositary and sales of Rights are practicable as determined by the
Depositary after consultation with the Company (which sales shall be effected
as
promptly as practicable and, to the extent practicable, on the principal German
stock exchange on which the Shares are traded), any U.S. dollars available
to
the Depositary constituting the net proceeds of sales of Rights, as in the
case
of Cash, or (iii) failing both (i) and (ii), nothing (and any Rights may lapse).
In circumstances in which rights would otherwise not be distributed, if a Holder
requests the distribution of warrants or other instruments in order to exercise
the rights allocable to the ADSs of such Holder hereunder, the Depositary shall
make such rights available to such Holder upon written notice from the Company
to the Depositary that (a) the Company has elected in its sole discretion to
permit such rights to be exercised and (b) such Holder has executed such
documents as the Company has determined in its sole discretion are reasonably
required under applicable law. If the Depositary has distributed warrants or
other instruments for rights to all or certain Holders, then upon instruction
pursuant to such warrants or other instruments to the Depositary from such
Holder to exercise such rights, upon payment by such Holder to the Depositary
of
the exercise price or other amount stipulated for exercise of the rights, the
previously disclosed fees and expenses of the Depositary and any other charges
as set forth in such warrants or other instruments, the Depositary shall, on
behalf of such Holder, exercise the rights and purchase the Shares, and the
Company shall cause the Shares so purchased to be delivered to the Depositary
on
behalf of such Holder. As agent for such Holder, the Depositary shall cause
the
Shares so purchased to be deposited pursuant to the Agreement, and shall,
pursuant to the Agreement, execute and deliver ADRs to such Holder; provided,
however,
that in
the case of a distribution pursuant to the preceding sentence, such deposit
shall be made, and depositary shares shall be delivered, under other depositary
arrangements to be entered into between the Company and the Depositary which
provide for issuance of depositary receipts subject to the appropriate
restrictions on sale, deposit, cancellation, and transfer under applicable
United States laws.
5
(d)
Other
Distributions.
(i)
Securities available to the Depositary resulting from any distribution on
Deposited Securities other than Cash, Share Distributions and Rights
("Other
Distributions"),
by
any means that the Depositary may deem, after consultation with the Company,
lawful, equitable and practicable, or (ii) to the extent the Depositary deems
after consultation with the Company distribution of such securities not to
be
lawful, equitable or practicable, any U.S. dollars available to the Depositary
constituting,the net proceeds of the sale of Other Distributions, as in the
case
of Cash.
To
the
extent that the Depositary determines, after consultation with the Company,
that
any distribution is not lawful or practicable with respect to any Holder, the
Depositary may make such distribution as it deems lawful and practicable,
including the distribution of foreign currency or securities (or appropriate
documents evidencing the right to receive foreign currency or securities),
or
retain the same as Deposited Securities with respect to such Holder's ADRs
(without liability for interest thereon or the investment thereof).
Notwithstanding
anything herein to the contrary, the Company shall have no obligation to either
(i) register any ADSs, Shares, Rights or other securities described in this
Paragraph (11) under the Securities Act or (ii) take other actions to permit
the
distribution of such ADSs, Shares, Rights or other securities in accordance
with
applicable U.S. securities.laws.
(12)
Record
Dates.
The
Depositary shall fix a record date (which date shall (a) in the case of a
distribution be the same date to the extent practicable as the distribution
date
fixed by the Company, and (b) in all other circumstances, fixed after
consultation with the Company to the extent practicable) for the determination
of the Holders who shall be entitled to receive any distribution on or in
respect of Deposited Securities, to give instructions for the exercise of any
voting rights, to receive any notice or to act in respect of other matters,
and
only Holders of record on the close of business on such date shall be so
entitled.
(13)
Voting
of Deposited Securities.
Upon
receipt of (a) notice from the Company of any meeting of holders of Shares
or
other Deposited Securities and (b) the statement of the Custodian or such other
major commercial German bank as may be reasonably chosen by the Depositary
to
act as a proxy bank (the "Proxy Bank"), setting forth its recommendations with
regard to voting of the Shares as to any matter which is set forth in the notice
from the Company on which a vote is to be taken by holders of Shares, together
with an English translation thereof (the "Recommendation"), unless otherwise
requested in writing by the Company, the Depositary shall, as soon as
practicable thereafter, mail to the Holders a notice, which shall contain (i)
such information as is contained in such notice of meeting and (ii) a statement
that the Holders as of the close of business on a specified record date will
be
entitled, subject to any applicable provision of German law, the Articles of
Association of the Company, the ADRs and the Deposited Securities, to exercise,
or to give instructions for the exercise of, the voting rights, if any,
pertaining to the whole number of Shares or other Deposited Securities
represented by their respective ADSs on such date (c) the Recommendation and
(d)
a statement as to the manner in which such instructions may be given, including
an express indication that if no voting instructions are received on or before
the date established by the Depositary for such purpose (the "Instruction Date")
then the Holders shall in each case be deemed to have instructed the Depositary
to vote or cause the shares to be voted in accordance with the
Recommendation.
6
Upon
the
written request of an Holder on such record date, received on or before the
Instruction Date, the Depositary shall endeavor, insofar as practicable and
permitted under German law, the Articles of Association of the Company and
the
ADRs, to vote or cause to be voted the amount of Shares or other Deposited
Securities represented by the ADSs evidenced by such ADR in accordance with
the
instructions set forth in such request. The Company agrees, without any
liability to the Holders arising hereunder, to provide notice, to the extent
practicable, of any meeting of holders of Shares or other Deposited Securities
containing the requisite information, together with English translations, to
the
Depositary within the five business days following the publication of the
invitation to the shareholders meeting in the German Federal Gazette.
Voting rights may be exercised only in respect of whole ADSs.
The Depositary shall not vote or attempt to exercise the right to vote
that attaches to the Shares or other Deposited Securities, other than in
accordance with such instructions or deemed instructions received from the
Holders as of such record date.
Subject
to the following paragraph, if no specific voting instructions are received
by
the Depositary from any Holder (to whom Notice was sent by the Depositary)
with
respect to the Deposited Securities represented by the ADSs evidenced by such
ADRs on or before the Instruction Date, such Holder shall be deemed, and the
Depositary shall deem such Holder, to have instructed the Depositary to vote
such Deposited Securities or to cause such Deposited Securities to be voted
in
accordance with the Recommendation provided, however, that no such instruction
shall be deemed given and no vote of Deposited Securities shall be made by
the
Depositary 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 the
Depositary to deem such Holder to have instructed the Depositary to vote in
accordance with the Recommendation, (y) substantial opposition exists or (z)
the
matter would materially affect 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. In no event may the Depositary itself
exercise any voting discretion over any Shares or other Deposited
Securities.
Anything
in the Deposit Agreement to the contrary notwithstanding, in the event that
the
Proxy Bank shall fail to supply the Recommendation to the Depositary at least
twenty-one (21) calendar days prior to any meeting of holders of Shares or
other
Deposited Securities with respect to which the Depositary has received notice
from the Company, the Depositary shall mail the Notice (which in this case
will
not contain the Recommendation or the indication concerning the proxy to be
given to the Proxy Bank) to the Holders as herein above provided, and,
thereafter, in any case in which no specific voting instructions are received
by
the Depositary from an Holder on or before the Instruction Date with respect
to
the Deposited Securities represented by the ADSs evidenced by such ADRs, no
votes shall be cast at such meeting with respect to such Deposited
Securities.
7
Nothing
in the Deposit Agreement shall be construed to grant to an Holder any voting
rights with respect to Deposited Securities to which, by their terms, voting
rights do not otherwise attach.
(14)
Changes
Affecting Deposited Securities.
Subject
to Paragraphs (4), (7) and (9), upon any change in nominal or par value,
split-up or consolidation or other reclassification of Deposited Securities,
any
Share Distribution or other Distribution not distributed to Holders in
accordance with Paragraph (11), or any recapitalization, reorganization, merger,
liquidation or similar corporate event or sale of all or substantially all
the
assets of the Company, any cash or securities received by the Depositary in
respect of any Deposited Securities shall constitute Deposited Securities
hereunder, and each ADS evidenced by this ADR shall automatically represent
its
pro
rata
interest
in the Deposited Securities as then constituted. In any such case, the
Depositary may, and shall if the Company so requests, distribute any part of
the
cash or securities so received or execute and deliver additional ADRs or call
for the surrender of outstanding ADRs to be exchanged for new ADRs describing
the new Deposited Securities.
(15)
Exoneration.
The
Depositary, the Company, their respective officers, directors, affiliates and
agents and each of them shall: (a) incur no liability (i) if law, regulation,
rule of any regulatory authority or stock exchange, the provisions of or
governing any Deposited Security, act of God, war or other circumstance beyond
its control shall prevent, delay or subject to any civil or criminal penalty
any
act that the Agreement or this ADR provides shall be done or performed by it,
or
(ii) by reason of any exercise or failure to exercise any discretion given
it in
the Agreement or this ADR; (b) assume no liability except to perform its
obligations to the extent they are specifically set forth in this ADR and the
Agreement without negligence or bad faith; (c) be under no obligation to appear
in, prosecute or defend any action, suit or other proceeding in respect of
any
Deposited Securities or this ADR; or (d) not be liable for any action or
inaction by it in reliance upon the advice of or information from legal counsel,
accountants, any person presenting Shares for deposit, any Holder, or any other
person in each case believed by it in good faith to be competent to
give-such
advice or information. The Depositary, the Company and their respective agents
may rely and shall be protected in acting upon any written notice, request,
direction or other document believed by them in good faith to be genuine and
to
have been signed or presented by the proper party or parties. The Depositary
and
its agents shall not be responsible for any failure to carry out any
instructions to vote any of the Deposited Securities, for the manner in which
any such vote is cast or for the effect of any such vote. The Depositary shall
not be liable for any acts or omissions made by a successor depositary whether
in connection with a previous act or omission of the Depositary or in connection
with any matter arising wholly after the removal or resignation of the
Depositary, provided that in connection with the issue out of which such
potential liability arises the Depositary performed its obligations without
negligence or bad faith while it acted as Depositary. The Depositary and its
agents may own and deal in any class of securities of the Company and its
affiliates and in ADRs. In the Agreement, the Company has agreed to indemnify
the Depositary under certain circumstances and the Depositary
has
agreed to indemnify the Company under certain circumstances. No disclaimer
of
liability under the Securities Act is intended by any provision hereof or of
the
Agreement.
(16)
Amendment.
Subject
to the last sentence of Paragraph (4), the ADRs and .the
Agreement may be amended by the Company and the Depositary without consent
of
the Holders; provided,
however,
that
any amendment that imposes or increases any fees or charges (other than those
listed in clauses (i) through (iv) of Paragraph (9)), or that shall otherwise
prejudice any substantial existing right of Holders, shall become effective
30
days after notice of such amendment shall have been given to the Holders. Every
Holder and Beneficial Owner, at the time any amendment so becomes effective,
shall be deemed, by continuing to hold an ADR or any interest therein, to
consent and agree to such amendment and to be bound by the ADRs and the
Agreement as amended thereby.
8
(17)
Termination.
The
Depositary shall, at the written direction of the Company, terminate the
Agreement and this ADR by mailing notice of such termination to the Holders
at
least 30 days prior to the date fixed in such notice for such termination.
The
Depositary may terminate the Agreement, after giving notice to the Holders
as
set forth in the preceding sentence of this Paragraph (17), at any time 90
days
or more after the Depositary shall have delivered to the Company its written
resignation, provided that no successor depositary shall have been appointed
and
accepted its appointment as provided in Section 10 of the Agreement before
the
end of such 90 days. After the date so fixed for termination, the Depositary
and
its agents shall perform no further acts under the Agreement and this ADR,
except to advise Holders of such termination, receive and hold (or sell)
distributions on Deposited Securities and deliver Deposited Securities being
withdrawn together with any such distributions on Deposited Securities (after
deducting, in each case, the fees and expenses of the Depositary). At any time
after the expiration of one year from the date so fixed for termination, the
Depositary may sell the Deposited Securities and shall thereafter (as long
as it
may lawfully do so) hold the net proceeds of such sales, together with any
other
cash then held by it under the Agreement, uninvested and without liability
for
interest, for the pro
rata
benefit
of the Holders of ADRs not theretofore surrendered, such Holders thereupon
becoming general creditors of the Depositary with respect to such proceeds.
After making such sale, the Depositary shall be discharged from all obligations
in respect of the Agreement and this ADR, except to account for such net
proceeds and
other
cash (after deducting, in each case, the fees and expenses of the Depositary)
and its indemnification obligations to the Company. After the date so
fixed
for
termination, the Company shall be discharged from all obligations under the
Agreement except for its indemnification and payment obligations to the
Depositary.
9