Common use of Margin Payment Clause in Contracts

Margin Payment. 6.1 At any time and from time to time, during the period of this Agreement, if the aggregate Market Value of the Fine Metal Delivered exceeds ninety five percent (95%) of the Guaranteed Sum, K&S shall, at its option, within five (5) Business Days after notice has been served by AGR MATTHEY: (a) Make a deposit in cash in USD, to AGR MATTHEY’s account at: ▇ ▇ ▇▇▇▇▇▇ ▇▇▇▇▇ Bank, New York Account Name: AGR MATTHEY – USD Account ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ AND/OR (b) Provide AGR MATTHEY with a further Bank Standby Letter of Credit for an amount in excess of the Guaranteed Sum AND/OR (c) Sell back a quantity of Gold to AGR MATTHEY (or to AGR MATTHEY’s agent as directed by AGR MATTHEY in writing) in accordance with Clause 7 so that after the deposit of cash, provision of the further Bank Standby Letter of Credit and/or sell back of Gold in accordance with Clause 7, the aggregate Market Value of the Fine Metal Delivered does not exceed ninety five percent (95%) of the Guaranteed Sum. 6.2 Where K&S elects to place cash deposits with AGR MATTHEY as opposed to increasing the value of the Bank Standby Letter of Credit (and K&S advises AGR MATTHEY in writing in advance) and such sums are not used on an ongoing basis for the payment of sums due to AGR MATTHEY which as a result allows AGR MATTHEY to place the cash deposits on a term deposit facility with their bank then any USD cash deposit made pursuant to Clause 6.1 to AGR MATTHEY in satisfaction of such Margin Payment shall earn interest based on daily balances of such deposits at a rate equal to the prevailing USD one month LIBOR rate (London Interbank Offer Rate) minus 0.5% per annum (half of one percent per annum). Interest earned on any such deposit shall be paid to K&S in accordance with Clause 8. 6.3 Interest earned pursuant to Clause 6.2 together with any USD cash deposit made pursuant to Clause 6.1 shall be paid to K&S in full by the bank holding the USD cash deposit upon the direction of AGR MATTHEY when the USD cash deposit is returned to K&S. 6.4 At the request of K&S, AGR MATTHEY shall return to K&S the USD cash deposit and/or Further Bank Standby Letter of Credit held as a Margin Payment to K&S, as the case may be, when the aggregate Market Value of the outstanding Gold Delivered has dropped back to or below 95% (ninety five percent) of the Guaranteed Sum and has remained so for five (5) consecutive Business Days.

Margin Payment. 6.1 At any time and from time to time, during the period of this Agreement, if the aggregate Market Value of the Fine Metal Delivered exceeds ninety five percent (9590%) of the Guaranteed Sum, K&S shall, at its option, within five (5) Business Days after notice has been served by AGR MATTHEY: (a) Make a deposit in cash in USD, to AGR MATTHEY’s account at: ▇ ▇ ▇▇▇▇▇▇ ▇▇▇▇▇ Bank, New York Account Name: AGR MATTHEY – USD Account ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ Account Number: xxxxx SWIFT: xxxxx AND/OR (b) Provide AGR MATTHEY with a further Bank Standby Letter of Credit for an amount in excess of the Guaranteed Sum AND/OR (c) Sell back a quantity of Gold to AGR MATTHEY (or to AGR MATTHEY’s agent as directed by AGR MATTHEY in writing) in accordance with Clause 7 so that after the deposit of cash, provision of the further Bank Standby Letter of Credit and/or sell back of Gold in accordance with Clause 7, the aggregate Market Value of the Fine Metal Delivered does not exceed ninety five percent (9590%) of the Guaranteed Sum. 6.2 Where K&S elects to place cash deposits with AGR MATTHEY as opposed to increasing the value of the Bank Standby Letter of Credit (and K&S advises AGR MATTHEY in writing in advance) and such sums are not used on an ongoing basis for the payment of sums due to AGR MATTHEY which as a result allows AGR MATTHEY to place the cash deposits on a term deposit facility with their bank then any Any USD cash deposit made pursuant to Clause 6.1 to AGR MATTHEY in satisfaction of such Margin Payment shall earn interest based on daily balances of such deposits at a rate equal to the prevailing USD one month LIBOR overnight rate (London Interbank Offer Rate) minus 0.5% per annum (half of one percent per annum)interest of Westpac Banking Corporation, Perth, Australia. Interest earned on any such deposit shall be paid to K&S in accordance with Clause 8. 6.3 Interest earned pursuant to Clause 6.2 together with any USD cash deposit made pursuant to Clause 6.1 shall be paid to K&S in full by the bank holding the USD cash deposit upon the direction of AGR MATTHEY when the USD cash deposit is returned to K&S. 6.4 At the request of K&S, AGR MATTHEY shall return to K&S the USD cash deposit and/or Further Bank Standby Letter of Credit held as a Margin Payment to K&S, as the case may be, when the aggregate Market Value of the outstanding Gold Delivered has dropped back to or below 9590% (ninety five percent) of the Guaranteed Sum and has remained so for five (5) consecutive Business Days.