Common use of HOLDING POSITIONS Clause in Contracts

HOLDING POSITIONS. 4.1 A Finance Charge Adjustment or a Finance Credit Adjustment (as the case may be) will be applied in accordance with clause 14. 4.2 If you are the Long Party to an Equity Derivative, and the issuer of the Underlying Reference Instrument makes a cash distribution in respect of the Underlying Reference Instrument (for example, a dividend in respect of a Underlying Reference Instrument which is a share), Admiral will credit to your Account in respect of the Equity Derivative an equivalent amount (less any Taxes and costs) within a reasonable period following the date the cash distribution is paid in respect of the Underlying Reference Instrument corresponding with your Equity Derivative being the amount that will be equal to the cash dividend payable to the holder of the Underlying Reference Instrument multiplied by the quantity (being the Lot and Contract Size applicable to the Transaction) on the first Business Day following the ex dividend date for the Underlying Reference Instrument. Admiral is not obliged to pay to you any amount under this clause unless and until it receives that amount as the owner of the Underlying Reference Instrument or an equivalent amount under the Hedge Contract acquired in respect of the Equity Derivative. Further, Admiral is not liable to pay to you any amount in excess of the amount (less any Taxes and costs) which Admiral itself receives either as the owner of the Underlying Reference Instrument or pursuant to a Hedge Contract acquired in respect of the Equity Derivative. 4.3 If you are the Short Party to an Equity Derivative, Admiral will debit your Account with an amount that will be equal to the gross (unfranked) cash dividend payable to the holder of the Underlying Reference Instrument multiplied by the quantity (being the Lot and Contract Size applicable to the Transaction) on the first Business Day following the ex dividend date for the Underlying Reference Instrument. 4.4 If the Underlying Reference Instrument on which an Equity Derivative or Indices is issued is subject to an Adjustment Event or possible Adjustment Event, Admiral will determine the adjustment, if any, that will be made to the Contract Value of that Underlying Reference Instrument, the related quantity (being the Lot and Contract Size applicable to the Transaction ) (or both) that would have placed the parties in substantially the same economic position they would have been in had the event not occurred. Admiral will notify you as soon as practicable of the adjustment. In the absence of any manifest error any adjustment determined will be deemed to be conclusive and binding on you. 4.5 Admiral may give you an opportunity to elect to participate in an adjustment to the Equity Derivative which corresponds with the Adjustment Event, but Admiral is not obliged to give you that opportunity, or give reasonable notice of it or make its terms correspond exactly with the Adjustment Event, nor is Admiral obliged to accept in part or at all any election you make to participate. Any adjustment will take effect at the time determined by Admiral. 4.6 If the Underlying Reference Instrument is subject to a take-over offer or similar event, Admiral may at any time prior to the closing date of the offer provide you notice of Admiral’s intention to Close Out the Equity Derivative with the Current Market Price being the price notified to you by Admiral. 4.7 If at any time an Adjustment Event occurs and it is not reasonably practicable as determined by Admiral in its absolute discretion to make an adjustment, then without limiting other rights, Admiral may at any time after the Adjustment Event Close Out the Equity Derivative. 4.8 References to “offer”, “take-over” and “closing date” in the Account Terms have the same meaning given to them in the Corporations Xxx 0000 from time to time.

HOLDING POSITIONS. 4.1 A Finance Charge Adjustment or a Finance Credit Adjustment (as the case may be) will be applied in accordance with clause 14. 4.2 If you are the Long Party to an Equity Derivative, and the issuer of the Underlying Reference Instrument makes a cash distribution in respect of the Underlying Reference Instrument (for example, a dividend in respect of a Underlying Reference Instrument which is a share), Admiral will credit to your Account in respect of the Equity Derivative an equivalent amount (less any Taxes and costs) within a reasonable period following the date the cash distribution is paid in respect of the Underlying Reference Instrument corresponding with your Equity Derivative being the amount that will be equal to the cash dividend payable to the holder of the Underlying Reference Instrument multiplied by the quantity (being the Lot and Contract Size applicable to the Transaction) on the first Business Day following the ex dividend date for the Underlying Reference Instrument. Admiral is not obliged to pay to you any amount under this clause unless and until it receives that amount as the owner of the Underlying Reference Instrument or an equivalent amount under the Hedge Contract acquired in respect of the Equity Derivative. Further, Admiral is not liable to pay to you any amount in excess of the amount (less any Taxes and costs) which Admiral itself receives either as the owner of the Underlying Reference Instrument or pursuant to a Hedge Contract acquired in respect of the Equity Derivative. 4.3 If you are the Short Party to an Equity Derivative, Admiral will debit your Account with an amount that will be equal to the gross (unfranked) cash dividend payable to the holder of the Underlying Reference Instrument multiplied by the quantity (being the Lot and Contract Size applicable to the Transaction) on the first Business Day following the ex dividend date for the Underlying Reference Instrument. 4.4 If the Underlying Reference Instrument on which an Equity Derivative or Indices is issued is subject to an Adjustment Event or possible Adjustment Event, Admiral will determine the adjustment, if any, that will be made to the Contract Value of that Underlying Reference Instrument, the related quantity (being the Lot and Contract Size applicable to the Transaction ) (or both) that would have placed the parties in substantially the same economic position they would have been in had the event not occurred. Admiral will notify you as soon as practicable of the adjustment. In the absence of any manifest error any adjustment determined will be deemed to be conclusive and binding on you. 4.5 Admiral may give you an opportunity to elect to participate in an adjustment to the Equity Derivative which corresponds with the Adjustment Event, but Admiral is not obliged to give you that opportunity, or give reasonable notice of it or make its terms correspond exactly with the Adjustment Event, nor is Admiral obliged to accept in part or at all any election you make to participate. Any adjustment will take effect at the time determined by Admiral. 4.6 If the Underlying Reference Instrument is subject to a take-over offer or similar event, Admiral may at any time prior to the closing date of the offer provide you notice of Admiral’s intention to Close Out the Equity Derivative with the Current Market Price being the price notified to you by Admiral. 4.7 If at any time an Adjustment Event occurs and it is not reasonably practicable as determined by Admiral in its absolute discretion to make an adjustment, then without limiting other rights, Admiral may at any time after the Adjustment Event Close Out the Equity Derivative. 4.8 References to “offer”, “take-over” and “closing date” in the Account Terms have the same meaning given to them in the Corporations Xxx 0000 Act 2001 from time to time.