Common use of Enforcement of Collateral Clause in Contracts

Enforcement of Collateral. 5.1 Galaxy International Securities has the right without prior notice or consent from the Client, to dispose of or otherwise deal with any part of the Collateral in its absolute discretion when any amount in the Securities Margin Account has become due and payable. In the event of any deficiency after disposal of the Collateral, the Client shall make good and pay on demand to Galaxy International Securities such deficiency. 5.2 Cash in the Securities Margin Account and any proceeds from the disposal of Collateral shall be applied in the following order: (a) in payment of all costs, charges, legal and other fees and expenses including stamp duty, commission and brokerage properly incurred in transferring or perfecting title of any part of the Collateral; (b) in payment of the interest for the time being accrued and due; (c) towards the payment of the amount due (other than the interest) under the Securities Margin Account; (d) towards the payment of all or part of the amount due by the Client to any member of the China Galaxy International; and (e) the residue, if any, shall be paid to the Client or his order. 5.3 Galaxy International Securities may resort to other means of obtaining payment or securing performance as it thinks fit without affecting the security created herein. 5.4 The Client shall pay or reimburse Galaxy International Securities immediately upon demand all costs, charges and expenses incurred by Galaxy International Securities in connection with the enforcement of or the preservation of any of the rights of Galaxy International Securities under the Securities Margin Account including but not limited to the legal fees and collection expenses incurred by Galaxy International Securities on a full indemnity basis.

Enforcement of Collateral. 5.1 Galaxy International Securities has the right without prior notice or consent from the Client, to dispose of or otherwise deal with any part of the Collateral in its absolute discretion when any amount in the Securities Margin Account has become due and payable. In the event of any deficiency after disposal of the Collateral, the Client shall make good and pay on demand to Galaxy International Securities such deficiency. 5.2 Cash in the Securities Margin Account and any proceeds from the disposal of Collateral shall be applied in the following order: (a) in payment of all costs, charges, legal and other fees and expenses including stamp duty, commission and brokerage properly incurred in transferring or perfecting title of any part of the Collateral; (b) in payment of the interest for the time being accrued and due; (c) towards the payment of the amount due (other than the interest) under the Securities Margin Account; (d) towards the payment of all or part of the amount due by the Client to any member of the China Galaxy InternationalInternational Group; and (e) the residue, if any, shall be paid to the Client or his order. 5.3 Galaxy International Securities may resort to other means of obtaining payment or securing performance as it thinks fit without affecting the security created herein. 5.4 The Client shall pay or reimburse Galaxy International Securities immediately upon demand all costs, charges and expenses incurred by Galaxy International Securities in connection with the enforcement of or the preservation of any of the rights of Galaxy International Securities under the Securities Margin Account including but not limited to the legal fees and collection expenses incurred by Galaxy International Securities on a full indemnity basis.