Common use of Requirements for Rights to and Benefits in Securities and Compensation Clause in Contracts

Requirements for Rights to and Benefits in Securities and Compensation. 8.1 During any Securities Borrowing and Lending Transaction, the Company and the Client accept that the Company is fully entitled to reclaim the Loaned Securities or Collateral securities if the issuer of those securities has issued an announcement granting any rights to the securities holders, such as, the rights to receive dividends, subscribe for newly issued shares or capital increase shares, receive securities warrants, attend meetings of shareholders, etc. Thereupon, the Client, Borrower or Lender, as the case may be, agrees to return those securities to the Company immediately and agrees that he/she/it will in no way raise a dispute or objection. 8.2 During any Securities Borrowing and Lending Transaction and while the securities have not yet been returned, if the securities issuer distributes rights or benefits to the securities holders, such as, dividend, interest, returned principal, etc., Borrower shall repay to Lender an amount equal to those rights and benefits, including any other related benefits, whether or not Borrower has been granted such rights and benefits. 8.3 During the placement of the Collateral (being securities or instruments) for a Securities Borrowing and Lending Transaction and while the Collateral has not yet been returned, if the securities or instrument issuer distributes rights or benefits to the securities or instrument holders, such as, dividend, interest, returned principal, etc., Lender shall repay to Borrower an amount equal to those rights and benefits, including any other related benefits, whether or not Lender has been granted such rights and benefits. 8.4 In the event either party neglects to return the securities or Collateral mentioned above or defaults, failing to refund the payment for those rights and benefits, or on the occurrence of the following events during the time not yet due for the return of the securities or Collateral, which events may affect the rights and benefits of Borrower or Lender when the securities or Collateral are/is transferred back: 8.4.1 Grant of the right to subscribe for capital increase shares to shareholders in proportion to their already existing shares; 8.4.2 Change in the par value of the shares, which results in an increase or decrease in the number of the shares;