Common use of Margin Call Clause in Contracts

Margin Call. Margin client has to ensure that the outstanding amount of the Credit Facilities in the margin account at all times will not be greater than the Acceptable Margin Value of all the securities in the margin account. The Acceptable Margin Value is the discounted value of the securities in the margin account which will be decided upon and fixed by Xxx Eng Securities (Hong Kong) Limited from time to time and at Xxx Eng Securities (Hong Kong) Limited’s sole discretion. If the outstanding amount of the Credit Facilities is greater than the Acceptable Margin Value, the margin client shall immediately after such condition exists, whether or not the margin client has received a notice from Xxx Eng Securities (Hong Kong) Limited, deposit such amount of cash or securities acceptable to Xxx Eng Securities (Hong Kong) Limited so that after the deposit, the aggregate Acceptable Margin Value of all the securities in the margin account shall not be less than the outstanding amount of the Credit Facilities. If the margin client fails to deposit sufficient amount of cash or securities acceptable to Xxx Eng Securities (Hong Kong) Limited, Xxx Eng Securities (Hong Kong) Limited may without demand sell the securities in the margin account to reduce the outstanding amount of the Credit facilities until the aggregate Acceptable Margin Value of all the securities in the margin account shall not be less than the outstanding amount of the Credit Facilities. In general, the Acceptable Margin Value is set out as follows: Type of Securities Acceptable margin value % Selected blue chips 70% Other Blue chips and selected H shares 60% Hang Seng China Enterprise 50% Selected stocks with market 50% Capitalization > HK$2.5 billion Other Selected stocks 30% The above stock grading criteria is applicable to diversified portfolio and stock grading for single stock account will be considered on a case by case basis. Clients should check with the Account Executives of the Acceptable Margin Value of a particular stock.

Margin Call. Margin client has to ensure that the outstanding amount of the Credit Facilities in the margin account at all times will not be greater than the Acceptable Margin Value of all the securities in the margin account. The Acceptable Margin Value is the discounted value of the securities in the margin account which will be decided upon and fixed by Xxx Eng MIB Securities (Hong Kong) Limited from time to time and at Xxx Eng MIB Securities (Hong Kong) Limited’s sole discretion. If the outstanding amount of the Credit Facilities is greater than the Acceptable Margin Value, the margin client shall immediately after such condition exists, whether or not the margin client has received a notice from Xxx Eng MIB Securities (Hong Kong) Limited, deposit such amount of cash or securities acceptable to Xxx Eng MIB Securities (Hong Kong) Limited so that after the deposit, the aggregate Acceptable Margin Value of all the securities in the margin account shall not be less than the outstanding amount of the Credit Facilities. If the margin client fails to deposit sufficient amount of cash or securities acceptable to Xxx Eng MIB Securities (Hong Kong) Limited, Xxx Eng MIB Securities (Hong Kong) Limited may without demand sell the securities in the margin account to reduce the outstanding amount of the Credit facilities until the aggregate Acceptable Margin Value of all the securities in the margin account shall not be less than the outstanding amount of the Credit Facilities. In general, the Acceptable Margin Value is set out as follows: Type of Securities Acceptable margin value % value% Selected blue chips 70% Other Blue chips and selected H shares 60% Hang Seng China Enterprise 50% Selected stocks with market 50% Capitalization > HK$2.5 billion Other Selected stocks 30% The above stock grading criteria is applicable to diversified portfolio and stock grading for single stock account will be considered on a case by case basis. Clients should check with the Account Executives of the Acceptable Margin Value of a particular stock.