Common use of Custody Over Securities And Securities Collateral Clause in Contracts

Custody Over Securities And Securities Collateral. 4.1 The Client agrees to pay Galaxy International Securities and/or deposit at all times sufficient Collateral in such form and of such amounts as required by Galaxy International Securities from time to time for the procurement of the Margin Facility. 4.2 The Client warrants and represents that the Collateral shall be free from all encumbrances other than that constituted under the Securities Margin Account and that the Client is lawfully entitled to create security over them in favour of Galaxy International Securities. 4.3 Securities in respect of the Account which are Securities listed or traded on the Stock Exchange or interests in a collective investment scheme authorised by the SFC and not deposited with Galaxy International Securities as Collateral shall be deposited in safe custody in a segregated account which is designated as a trust account or client account maintained in Hong Kong by Galaxy International Securities or an Associated Entity of Galaxy International Securities with an authorised financial institution, a custodian approved by the SFC for providing custodian facilities or another intermediary licensed for dealing in securities or registered in the name of the Client or in the name of the Associated Entity of Galaxy International Securities. 4.4 Securities in respect of the Account which are deposited as Collateral and are Securities listed or traded on the Stock Exchange or are interests in a collective investment scheme shall be deposited in safe custody in a segregated account which is designated as a trust account or client account maintained in Hong Kong by Galaxy International Securities or an Associated Entity of Galaxy International Securities with an authorised financial institution, a custodian approved by the SFC for providing custodian facilities or another intermediary licensed for dealing in securities or registered in the name of the Client, the name of Galaxy International Securities or the name of an Associated Entity of Galaxy International Securities. 4.5 Securities in respect of the Account, including Securities deposited as Collateral with Galaxy International Securities which are not listed nor traded on the Stock Exchange nor are interests in a collective investment scheme shall be dealt with according to the applicable Governing Rules. 4.6 Galaxy International Securities will credit any dividends or other amounts received by or for the Client or arising from the Collateral and other Securities received on behalf of the Client to the Securities Margin Account after deduction of any fees and/or handling charges determined by Galaxy International Securities from time to time. Dividends or other amounts derived from Collateral may, at Galaxy International Securities’ discretion, be considered as Collateral. 4.7 Galaxy International Securities or its nominee may, but is not obliged to, exercise the voting rights attached to the Securities (including Collateral) in accordance with Client’s Instructions. 4.8 If Galaxy International Securities is required at any time to make delivery of or return any Securities, including any Collateral to the Client, it shall be sufficient if Galaxy International Securities delivers or returns Securities or property of the same class and relevant nominal amount. 4.9 Subject to Clause 4.10 in this Part D below, (i) Galaxy International Securities has the right to hold all Collateral and any Securities, assets or other property in the Securities Margin Account as a continuing security for the payment and/or discharge of the Obligations of the Client arising from any Transaction or any matter relating to the Account or any amounts owing to Galaxy International Securities or any member of the China Galaxy International, and (ii) Galaxy International Securities further has the right to appropriate or dispose of all or part of the Collateral, Securities, assets or other property held under the Securities Margin Account for the settlement of any Obligations. 4.10 Where any Securities or Collateral is applied to a securities borrowing and lending agreement pursuant to Clause 3.2(c) of this Part D above, Galaxy International Securities’ right to (i) continuing security over all Collateral and Securities in the Securities Margin Account, and (ii) appropriate or dispose of all or part of Collateral or Securities held under the Securities Margin Account set out in Clause 4.9 to this Part D above shall cease immediately prior to such Securities or Collateral being applied to the securities borrowing and lending agreement.

Custody Over Securities And Securities Collateral. 4.1 The Client agrees to pay Galaxy International Securities and/or deposit at all times sufficient Collateral in such form and of such amounts as required by Galaxy International Securities from time to time for the procurement of the Margin Facility. 4.2 The Client warrants and represents that the Collateral shall be free from all encumbrances other than that constituted under the Securities Margin Account and that the Client is lawfully entitled to create security over them in favour of Galaxy International Securities. 4.3 Securities in respect of the Account which are Securities listed or traded on the Stock Exchange or interests in a collective investment scheme authorised by the SFC and not deposited with Galaxy International Securities as Collateral shall be deposited in safe custody in a segregated account which is designated as a trust account or client account maintained in Hong Kong by Galaxy International Securities or an Associated Entity of Galaxy International Securities with an authorised financial institution, a custodian approved by the SFC for providing custodian facilities or another intermediary licensed for dealing in securities or registered in the name of the Client or in the name of the Associated Entity of Galaxy International Securities. 4.4 Securities in respect of the Account which are deposited as Collateral and are Securities listed or traded on the Stock Exchange or are interests in a collective investment scheme shall be deposited in safe custody in a segregated account which is designated as a trust account or client account maintained in Hong Kong by Galaxy International Securities or an Associated Entity of Galaxy International Securities with an authorised financial institution, a custodian approved by the SFC for providing custodian facilities or another intermediary licensed for dealing in securities or registered in the name of the Client, the name of Galaxy International Securities or the name of an Associated Entity of Galaxy International Securities. 4.5 Securities in respect of the Account, including Securities deposited as Collateral with Galaxy International Securities which are not listed nor traded on the Stock Exchange nor are interests in a collective investment scheme shall be dealt with according to the applicable Governing Rules. 4.6 Galaxy International Securities will credit any dividends or other amounts received by or for the Client or arising from the Collateral and other Securities received on behalf of the Client to the Securities Margin Account after deduction of any fees and/or handling charges determined by Galaxy International Securities from time to time. Dividends or other amounts derived from Collateral may, at Galaxy International Securities’ discretion, be considered as Collateral. 4.7 Galaxy International Securities or its nominee may, but is not obliged to, exercise the voting rights attached to the Securities (including Collateral) in accordance with Client’s Instructions. 4.8 If Galaxy International Securities is required at any time to make delivery of or return any Securities, including any Collateral to the Client, it shall be sufficient if Galaxy International Securities delivers or returns Securities or property of the same class and relevant nominal amount. 4.9 Subject to Clause 4.10 in this Part D below, (i) Galaxy International Securities has the right to hold all Collateral and any Securities, assets or other property in the Securities Margin Account as a continuing security for the payment and/or discharge of the Obligations of the Client arising from any Transaction or any matter relating to the Account or any amounts owing to Galaxy International Securities or any member of the China Galaxy InternationalInternational Group, and (ii) Galaxy International Securities further has the right to appropriate or dispose of all or part of the Collateral, Securities, assets or other property held under the Securities Margin Account for the settlement of any Obligations. 4.10 Where any Securities or Collateral is applied to a securities borrowing and lending agreement pursuant to Clause 3.2(c) of this Part D above, Galaxy International Securities’ right to (i) continuing security over all Collateral and Securities in the Securities Margin Account, and (ii) appropriate or dispose of all or part of Collateral or Securities held under the Securities Margin Account set out in Clause 4.9 to this Part D above shall cease immediately prior to such Securities or Collateral being applied to the securities borrowing and lending agreement.

Custody Over Securities And Securities Collateral. 4.1 5.1 The Client agrees to pay Galaxy International West Bull Securities and/or deposit at all times sufficient Collateral in such form and of such amounts as required by Galaxy International West Bull Securities from time to time for the procurement of the Margin Facility. 4.2 5.2 The Client warrants and represents that the Collateral shall be free from all encumbrances other than that constituted under the Securities Margin Account and that the Client is lawfully entitled to create security over them in favour of Galaxy International West Bull Securities. 4.3 5.3 Securities in respect of the Account which are Securities listed or traded on the Stock Exchange or interests in a collective investment scheme authorised by the SFC and not deposited with Galaxy International West Bull Securities as Collateral shall be deposited in safe custody in a segregated account which is designated as a trust account or client account maintained in Hong Kong by Galaxy International West Bull Securities or an Associated Entity of Galaxy International West Bull Securities with an authorised financial institution, a custodian approved by the SFC for providing custodian facilities or another intermediary licensed for dealing in securities or registered in the name of the Client or in the name of the Associated Entity of Galaxy International West Bull Securities. 4.4 5.4 Securities in respect of the Account which are deposited as Collateral and are Securities listed or traded on the Stock Exchange or are interests in a collective investment scheme shall be deposited in safe custody in a segregated account which is designated as a trust account or client account maintained in Hong Kong by Galaxy International West Bull Securities or an Associated Entity of Galaxy International West Bull Securities with an authorised financial institution, a custodian approved by the SFC for providing custodian facilities or another intermediary licensed for dealing in securities or registered in the name of the Client, the name of Galaxy International West Bull Securities or the name of an Associated Entity of Galaxy International West Bull Securities. 4.5 5.5 Securities in respect of the Account, including Securities deposited as Collateral with Galaxy International West Bull Securities which are not listed nor traded on the Stock Exchange nor are interests in a collective investment scheme shall be dealt with according to the applicable Governing Rules. 4.6 Galaxy International 5.6 West Bull Securities will credit any dividends or other amounts received by or for the Client or arising from the Collateral and other Securities received on behalf of the Client to the Securities Margin Account after deduction of any fees and/or handling charges determined by Galaxy International West Bull Securities from time to time. Dividends or other amounts derived from Collateral may, at Galaxy International West Bull Securities’ discretion, be considered as Collateral. 4.7 Galaxy International 5.7 West Bull Securities or its nominee may, but is not obliged to, exercise the voting rights attached to the Securities (including Collateral) in accordance with Client’s Instructions. 4.8 5.8 If Galaxy International West Bull Securities is required at any time to make delivery of or return any Securities, including any Collateral to the Client, it shall be sufficient if Galaxy International West Bull Securities delivers or returns Securities or property of the same class and relevant nominal amount. 4.9 5.9 Subject to Clause 4.10 5.10 in this Part D below, (i) Galaxy International West Bull Securities has the right to hold all Collateral and any Securities, assets or other property in the Securities Margin Account as a continuing security for the payment and/or discharge of the Obligations of the Client arising from any Transaction or any matter relating to the Account or any amounts owing to Galaxy International West Bull Securities or any member of the China Galaxy International, and (ii) Galaxy International West Bull Securities further has the right to appropriate or dispose of all or part of the Collateral, Securities, assets or other property held under the Securities Margin Account for the settlement of any Obligations. 4.10 5.10 Where any Securities or Collateral is applied to a any securities borrowing and lending agreement pursuant to Clause 3.2(c) of this Part D aboveentered between West Bull Securities and the Client, Galaxy International West Bull Securities’ right to (i) continuing security over all Collateral and Securities in the Securities Margin Account, and (ii) appropriate or dispose of all or part of Collateral or Securities held under the Securities Margin Account set out in Clause 4.9 5.9 to this Part D above shall cease immediately prior to such Securities or Collateral being applied to the securities borrowing and lending agreement.