Common use of Short Selling Clause in Contracts

Short Selling. 6.1 The Client acknowledges that applicable laws and regulations may prohibit WLSL from placing a sale order on the Client’s behalf when the order relates to Securities which the Client does not own (“Short Sell Order”). The Client undertakes that: (a) prior to placing a Short Sell Order, it will have entered into an effective securities borrowing arrangement or other form of cover acceptable to WLSL which will ensure that the Securities in question will be delivered on the designated settlement date; and (b) prior to execution of such an order, it will provide WLSL such documentary assurance that any such order is covered as WLSL shall specify. 6.2 The Client acknowledges that WLSL has the right to request delivery of a copy of documentary evidence relating to the relevant securities borrowing transaction e.g. the lender’s confirmation. 6.3 The Client acknowledges that WLSL will not accept an Instruction to sell the Securities which is a Short Sell Order unless the Client has provided the documentary assurance as required by WLSL. WLSL shall not be responsible to the Client for identifying whether or not an Instruction is a Short Sell Order, and the Client undertakes to inform WLSL expressly that a sale is a short sale at the time of giving the Instructions to effect that sale.