Common use of Stock Borrowing and Lending Clause in Contracts

Stock Borrowing and Lending. Stock borrowing and lending are permitted for the eligible China Connect Securities as specified by the China Connect Market Operators for the purposes of (a) covered short selling, (b) satisfying the Pre-Trade Checking requirement and (c) in any other circumstances as SEHK or the China Connect Market Operators may specify from time to time. The China Connect Market Operators will determine a list of eligible China Connect Securities for stock borrowing and lending. Stock borrowing and lending of eligible China Connect Securities will be subject to restrictions set by SEHK and the China Connect Market Operators, including but not limited to the following: (a) stock borrowing and lending agreements for the purpose of covered short selling shall have a duration of not more than one month; (b) stock borrowing and lending agreements for the purpose of satisfying the Pre-Trade Checking requirement shall have a duration of not more than one day (and roll-over is not permitted); (c) stock lending will be restricted to certain types of persons to be determined by the China Connect Market Operators; and (d) stock borrowing and lending activities will be required to be reported to SEHK. Only certain persons are eligible to lend China Connect Securities in stock borrowing and lending arrangements concerning China Connect Securities. Galaxy International Securities will be required to file a monthly report to SEHK providing details of its stock borrowing and lending activities with respect to China Connect Securities. This may include (amongst others) details of the borrower, lender, amount of shares borrowed/lent, amount of shares outstanding and date of borrowing/returning. The Client should refer to the relevant provisions from time to time governing stock borrowing and lending of China Connect Securities under the Applicable Requirements. Neither Galaxy International Securities nor China Galaxy International shall have any obligation to update the Client in respect of any change to the relevant Applicable Requirements.

Stock Borrowing and Lending. Stock The SEHK has announced that stock borrowing and lending are will be permitted for the eligible China Connect Securities as specified by the relevant China Connect Market Operators for the purposes purpose of (a) covered short selling, selling and (b) satisfying the Pre-Trade Checking requirement and (c) in any other circumstances as SEHK or the China Connect Market Operators may specify from time to time. The China Connect Market Operators will determine a list of eligible China Connect Securities for stock borrowing and lendingrequirement. Stock borrowing and lending of eligible China Connect Securities will be subject to restrictions set by SEHK and the relevant China Connect Market OperatorsMarket, including but not limited to the following: (a) stock borrowing and lending agreements for the purpose of covered short selling shall have a duration of not more than one month; (b) stock borrowing and lending agreements for the purpose of satisfying the Pre-Trade Checking requirement - 83 - ESD-001-E/07 shall have a duration of not more than one day (and roll-over is not permitted); (c) stock lending will be restricted to certain types of persons to be determined by the relevant China Connect Market OperatorsMarket; and (d) stock borrowing and lending activities will be required to be reported to SEHK. Only certain persons are eligible to lend The relevant China Connect Market will determine a list of China Connect Securities in eligible for stock borrowing and lending. Special China Connect Securities are not eligible for stock borrowing and lending arrangements concerning China Connect Securitiesfor the purpose of covered short selling (but are eligible for the purpose of satisfying the Pre-Trade Checking requirement). Galaxy International Securities We will be required to file a monthly report to the SEHK providing details of its our stock borrowing and lending activities with respect to China Connect Securities. This may include (amongst others) details of the borrower, lender, amount of shares borrowed/lent, amount of shares outstanding and date of borrowing/returning. The Client should Investors are advised to refer to the relevant provisions from time to time governing stock borrowing and lending of applicable in the SEHK China Connect Securities under Rules (as and when these are published) and in the Applicable Requirements. Neither Galaxy International Securities nor China Galaxy International shall have any obligation to update the Client in respect of any change to the relevant Applicable RequirementsConnect Laws and China Connect Rules.

Stock Borrowing and Lending. Stock The SEHK has announced that stock borrowing and lending are will be permitted for the eligible China Connect Securities as specified by the relevant China Connect Market Operators for the purposes purpose of (a) covered short selling, selling and (b) satisfying the Pre-Trade Checking requirement and (c) in any other circumstances as SEHK or the China Connect Market Operators may specify from time to time. The China Connect Market Operators will determine a list of eligible China Connect Securities for stock borrowing and lendingrequirement. Stock borrowing and lending of eligible China Connect Securities will be subject to restrictions set by SEHK and the relevant China Connect Market OperatorsMarket, including but not limited to the following:: - 83 - ESD-001-E/06 (a) stock borrowing and lending agreements for the purpose of covered short selling shall have a duration of not more than one month; (b) stock borrowing and lending agreements for the purpose of satisfying the Pre-Trade Checking requirement shall have a duration of not more than one day (and roll-over is not permitted); (c) stock lending will be restricted to certain types of persons to be determined by the relevant China Connect Market OperatorsMarket; and (d) stock borrowing and lending activities will be required to be reported to SEHK. Only certain persons are eligible to lend The relevant China Connect Market will determine a list of China Connect Securities in eligible for stock borrowing and lending. Special China Connect Securities are not eligible for stock borrowing and lending arrangements concerning China Connect Securitiesfor the purpose of covered short selling (but are eligible for the purpose of satisfying the Pre-Trade Checking requirement). Galaxy International Securities We will be required to file a monthly report to the SEHK providing details of its our stock borrowing and lending activities with respect to China Connect Securities. This may include (amongst others) details of the borrower, lender, amount of shares borrowed/lent, amount of shares outstanding and date of borrowing/returning. The Client should Investors are advised to refer to the relevant provisions from time to time governing stock borrowing and lending of applicable in the SEHK China Connect Securities under Rules (as and when these are published) and in the Applicable Requirements. Neither Galaxy International Securities nor China Galaxy International shall have any obligation to update the Client in respect of any change to the relevant Applicable RequirementsConnect Laws and China Connect Rules.

Stock Borrowing and Lending. Stock The SEHK has announced that stock borrowing and lending are will be permitted for the eligible China Connect Securities as specified by the relevant China Connect Market Operators for the purposes purpose of (a) covered short selling, selling and (b) satisfying the Pre-Trade Checking requirement and (c) in any other circumstances as SEHK or the China Connect Market Operators may specify from time to time. The China Connect Market Operators will determine a list of eligible China Connect Securities for stock borrowing and lendingrequirement. Stock borrowing and lending of eligible China Connect Securities will be subject to restrictions set by SEHK and the relevant China Connect Market OperatorsMarket, including but not limited to the following: (a) stock borrowing and lending agreements for the purpose of covered short selling shall have a duration of not more than one month; (b) stock borrowing and lending agreements for the purpose of satisfying the Pre-Trade Checking requirement shall have a duration of not more than one day (and roll-over is not permitted); (c) stock lending will be restricted to certain types of persons to be determined by the relevant China Connect Market OperatorsMarket; and (d) stock borrowing and lending activities will be required to be reported to SEHK. Only certain persons are eligible to lend The relevant China Connect Market will determine a list of China Connect Securities in eligible for stock borrowing and lending. Special China Connect Securities are not eligible for stock borrowing and lending arrangements concerning China Connect Securities. Galaxy International Securities for the purpose of covered short selling (but are eligible for the purpose of satisfying the Pre-Trade Checking requirement).We will be required to file a monthly report to the SEHK providing details of its our stock borrowing and lending activities with respect to China Connect Securities. This may include (amongst others) details of the borrower, lender, amount of shares borrowed/lent, amount of shares outstanding and date of borrowing/returning. The Client should Investors are advised to refer to the relevant provisions from time to time governing stock borrowing and lending of applicable in the SEHK China Connect Securities under Rules (as and when these are published) and in the Applicable Requirements. Neither Galaxy International Securities nor China Galaxy International shall have any obligation to update the Client in respect of any change to the relevant Applicable RequirementsConnect Laws and China Connect Rules.