Common use of Margin Call Clause in Contracts

Margin Call. 4.1 The Client hereby covenants with KGI Asia that the Client shall at all times maintain (i) the Margin and (ii) the Margin Percentage to such level as determined by KGI Asia to be satisfactory. 4.2 The Client shall on demand from KGI Asia make payments or deposits of additional Margin in such amount and in such form into a designated account and within such time limit as specified by KGI Asia, as KGI Asia in its absolute discretion determines necessary to provide adequate security in respect of the Margin Percentage and the Margin Financing Facilities (“Margin Call(s)”). Payment of Margin Calls must be effected in cleared funds or by deposit of Securities and/or other assets which the Client has good and free unencumbered titles as specified by KGI Asia and unless the Margin Call is fully satisfied within the time specified, KGI Asia shall be entitled, at its absolute discretion, to refuse to accept any Instruction and shall not be liable to the Client for any Loss whatsoever arising out of or in connection with its not accepting or acting on any Instruction. 4.3 Notwithstanding paragraph 4.2 of this Schedule, KGI Asia has no obligation to notify the Client of the Client’s failure to maintain the required Margin or meet the Margin requirements. 4.4 In the event that it is, in the sole opinion of KGI Asia, impracticable for KGI Asia to make Margin Calls pursuant to paragraph 4.2 of this Schedule, including but not limited to, if the impracticality is due to a change or development: (a) involving a prospective change in the local, national or international monetary, financial, economic or political conditions or foreign exchange controls which has resulted or is in the opinion of KGI Asia likely to result in a material or adverse fluctuation in the stock market and/or currency market in Hong Kong or elsewhere; or (b) which will or may materially and adversely affect the financial condition or operations of the Client, KGI Asia shall be deemed to have made Margin Calls for such form and/or amounts as KGI Asia may determine and such additional Margin shall become immediately due and payable by the Client. 4.5 Where the Client fails to maintain the required Margin or meet Margin Calls made by KGI Asia or the Margin Financing Facilities is terminated or cancelled by KGI Asia, KGI Asia may, without demand, notice, legal process or other action terminate the Margin Financing Facilities and/or cancel or modify any outstanding Instructions and/or sell, realise, redeem, liquidate or otherwise dispose of, as appropriate, such of the Securities in the Account or any part thereof at the relevant market or by private contract, and on such terms as KGI Asia in its absolute discretion thinks fit, free from all trusts, claims, rights of redemption and equity of the Client. 4.6 Any proceeds resulting from such sale, realisation, redemption, liquidation or disposal shall be applied in such order as KGI Asia may select until the outstanding balances owing to KGI Asia is satisfied in full or the required Margin is maintained. In normal circumstances, KGI Asia will only sell, realise, redeem, liquidate or dispose of such quantity of the Securities required to achieve the aforesaid requirement. Nevertheless, KGI Asia shall have no responsibility, liability or obligation to the Client if it has sold, realised, redeemed, liquidated or disposed of more quantity of Securities than is necessary to satisfy such requirement. The Client shall not have any right or claim against KGI Asia in respect of any Loss arising out of any such sale, realisation, redemption, liquidation or disposal or proposed sale, realisation, redemption, liquidation or disposal, howsoever such Loss may have been caused, and whether or not a better price could or might have been obtained by either deferring or advancing the date or time of such sale, realisation, redemption, liquidation or disposal or otherwise. 4.7 The Client undertakes to indemnify and keep indemnified KGI Asia and its officers, employees and agents for any Loss, costs, claim, liability or expense arising out of or connected with any breach by the Client of its obligations under this Client Agreement including but not limited to any fees and costs reasonably and necessary incurred by KGI Asia.

Margin Call. 4.1 3.1 The Client hereby covenants with KGI Asia that the Client shall at all times maintain (i) the Margin and (ii) the Margin Percentage to such level as determined by KGI Asia to be satisfactory. 4.2 The Client shall on demand from KGI Asia BOCOM make payments or deposits of additional Margin in such amount and in such form into a designated account and within such time limit as specified by KGI AsiaBOCOM, as KGI Asia BOCOM in its absolute discretion determines necessary to provide adequate security in respect of the Margin Percentage and the Securities Margin Financing Facilities (“Margin Call(s)Call”). Payment of Margin Calls must be effected in cleared funds or by deposit of Securities securities and/or other assets which the Client has good and free unencumbered titles as specified by KGI Asia BOCOM and unless the Margin Call is fully satisfied within with the time specified, KGI Asia BOCOM shall be entitled, at its absolute discretion, to refuse to accept any Instruction and shall not be liable to the Client for any Loss whatsoever loss whatever arising out of or in connection with its not accepting or acting on any Instruction. 4.3 3.2 Notwithstanding paragraph 4.2 of this ScheduleClause 3.1, KGI Asia BOCOM has no obligation to notify the Client of the Client’s his failure to maintain the required Margin or meet the Margin requirements. 4.4 Margin. In the event that it is, in the sole opinion of KGI AsiaBOCOM, impracticable for KGI Asia BOCOM to make demands for additional Margin Calls pursuant to paragraph 4.2 of this ScheduleClause 3.1, including but not limited to, if the impracticality is due to a change or development: (a) involving a prospective change in the local, national or international monetary, financial, economic or political conditions or foreign exchange controls which has resulted or is in the opinion of KGI Asia BOCOM likely to result in a material or adverse fluctuation in the stock market and/or market, currency market, commodities or futures market in Hong Kong or elsewhere; or (b) which will is or may be materially and adversely affect the financial condition or operations of the Client, KGI Asia BOCOM shall be deemed to have made Margin Calls for such form and/or amounts as KGI Asia BOCOM may determine and such additional Margin shall become immediately due and payable by the Client. 4.5 (a) Where the Client fails to maintain the required Margin or meet Margin Calls made by KGI Asia BOCOM or the Securities Margin Financing Facilities is terminated or cancelled by KGI AsiaBOCOM, KGI Asia BOCOM may, without demand, notice, legal process or other action terminate the Margin Financing Facilities and/or cancel or modify any outstanding Instructions and/or sell, realise, redeem, liquidate or otherwise dispose of, as appropriate, such of the Securities securities in the Securities Account or any part thereof at the relevant market or by private contract, and on such terms as KGI Asia BOCOM in its absolute discretion thinks fit, free from all trusts, claims, rights of redemption and equity equities of the Client. 4.6 (b) Any proceeds resulting from such sale, realisation, redemption, liquidation or disposal shall be applied in such order as KGI Asia BOCOM may select until the outstanding balances owing to KGI Asia BOCOM is satisfied in full or the required Margin is maintained. In normal circumstances, KGI Asia BOCOM will only sell, realise, redeem, liquidate or dispose of such quantity of the Securities securities required to achieve the aforesaid requirement. Nevertheless, KGI Asia BOCOM shall have no responsibility, liability or obligation to the Client if it has sold, realised, redeemed, liquidated or disposed of more quantity of Securities securities than is necessary to satisfy such requirement. The Client shall not have any right or claim against KGI Asia BOCOM in respect of any Loss arising out of any such sale, realisation, redemption, liquidation or disposal or proposed sale, realisation, redemption, liquidation or disposal, howsoever however such Loss may have been caused, and whether or not a better price could or might have been obtained by either deferring or advancing the date or time of such sale, realisation, redemption, liquidation or liquidation, disposal or otherwise. 4.7 3.4 The Client undertakes to indemnify and keep indemnified KGI Asia BOCOM and its officers, employees and agents for any Lossloss, costs, claim, liability or expense arising out of or connected with any breach by the Client of its obligations under this Client the Agreement including but not limited to any fees and costs reasonably and necessary incurred by KGI AsiaBOCOM. 3.5 This Clause 3 shall not prejudice BOCOM’s rights and powers under the Securities Trading Client Agreement, including (without limitation) Clauses 12 of such Agreement.