Common use of Option Contracts Clause in Contracts

Option Contracts. 7.1 Option Contracts must not be entered into by a Customer with GRC for the purpose of Speculation or investment. By entering into an Option Contract with GRC, the Customer is deemed to represent and warrant to GRC at that time and at all times thereafter that the purpose of the Option Contract is solely for Hedging. 7.2 GRC may offer Option Contracts comprised of any of the Options described in the Product Disclosure Statement, a copy of which the Customer has received and confirms it understands. 7.3 The Customer must indicate to GRC the Currency, the contract amount, the type of Option desired, the option exercise (strike) price, the expiry date and the Currency in which the Customer will pay any premium, if required. 7.4 For certain Option Contracts GRC may, require the Customer to pay a premium at the time that the Option Contract is entered into or at a future date agreed to in writing between GRC and the Customer. 7.5 The Customer may only exercise the Option stipulated in the Option Contract in accordance with the terms and conditions of the Option Contract by giving notice to GRC of its intention to exercise said Option Contract. Exercise occurs when the Customer gives notice to GRC to convert the Option Contract into the underlying foreign exchange Currency, provided that any premium due has also been received by GRC. The Customer acknowledges and agrees that if the Option Contract trades at or beyond a barrier level or is “in-the-money”, GRC shall have the right to convert the Option Contract into the underlying Currency on such Option Contract’s Expiry Date. 7.6 If the Option provided for in the Option Contract has been exercised in accordance with Section 7.5, then each party to such Option Contract shall pay the Currency and amount due thereunder to the other party on the Settlement Date. 7.7 The Customer may notify GRC that it desires to offset or close-out an Option Contract (a “Notice of Option Cancellation”), specifying the reason for such offset or close-out. GRC may, in its sole discretion, agree to the request in the Notice of Option Cancellation provided that the Customer has paid any required premium as determined by GRC and any Notice of Option Cancellation has been received by GRC before the Expiry Time on the Expiry Date of such Option Contract. GRC will evaluate the relevant closing strike rate and premium and the net difference will be charged to the Customer for immediate payment. Any cancellation or modification must support the commercial needs of the Customer and must not be for speculative or investment purposes. 7.8 An Option Contract will lapse at its Expiry Date if such Option Contract has not been exercised in accordance with Section 7.5 or offset in accordance with Section 7.7. 7.9 Option contracts may require a Margin Deposit (unless waived in writing by GRC in its sole discretion) in an amount and on terms specified by GRC, which shall be stated in the Margin Facility Letter. The amount of the Margin Deposit shall be specified at the time that the Option Contract is entered into. The Margin Deposit shall be either in guaranteed funds or by a financial institution letter of guarantee or letter of credit (on terms and conditions satisfactory to GRC) including without limitation, the issuing financial institution and the maturity date and must be paid within one (1) Business Day. In the event that the Margin Deposit is not received within one (1) Business Day, GRC shall at its sole discretion and without further notice, have the right to: (i) terminate the contract which relates to the specific Service or Transaction; (ii) terminate and close out any other pending Transaction/contract for Services with Customer; and (iii) set off amounts owed to the Customer including any gains on contracts closed out (terminated) against any Losses incurred and amounts then owing to GRC on Transactions with Customer. In the event of default GRC reserves the right to apply a fee of up to 6% of the notional value to close out or terminate contracts Where a ▇▇▇▇▇▇ Deposit is placed on a floating basis for the Option Contract, the Customer agrees to submit to GRC an Additional Margin Deposit when GRC determines that the mark-to-market potential loss on the Option Contract exceeds the prescribed amount established with GRC in the Margin Facility Letter. GRC shall determine the mark-to-market value of an Option Contract at a given point on a daily basis based upon the Mid-Market Rate. The Customer agrees to accept and be bound by such mark-to-market value determination as made by GRC. 7.10 GRC shall have the right, in its sole discretion, to notify a Customer at any time that an Additional Margin Deposit is required pursuant to Section 7.9. The Customer acknowledges and agrees that upon such notification from GRC, it will have one (1) Business Day from notification to provide to GRC the Additional Margin Deposit. The amount of the Additional Margin Deposit shall be that amount determined by GRC which is sufficient to ensure that the Margin Deposit together with the Additional Margin Deposit held by GRC for the particular Option Contract on a mark-to- market value is at least the minimum prescribed amount established by GRC for the Option Contract as established in the Margin Facility Letter. 7.11 Should the Customer not: (i) complete the Option Contract as set out in the terms by the Expiry Date; or (ii) pay any Margin Deposit, including any required Additional Margin Deposit, then GRC shall no longer be obligated to complete the Option Contract and at its discretion, any other pending Transaction including any other Option Contract(s) with the Customer. GRC shall have the right to: (iii) sell the Option Contract into the market; (iv) charge the Customer with any Losses, including if a Customer’s account is closed out, or if a Customer’s contract(s) require termination, GRC reserves the right to apply a fee of up to six percent (6%) of the notional value to close-out accounts or terminate contact(s); and (v) apply the Margin Deposit or any Additional Margin Deposit and any other deposit or funds held by GRC to pay the Losses. Should such amounts be insufficient to reimburse GRC for the Losses, the Customer agrees to forthwith pay to GRC any additional amount required to reimburse GRC for the Losses. In the event of default GRC reserves the right to apply a fee of up to 6% of the notional value to close out or terminate contracts 7.12 If the Margin Deposit and any Additional Margin Deposit are not needed based upon the Customer performing its obligations under the Option Contract to completion, GRC agrees to return to the Customer the Margin Deposit or the amount remaining that was not required.

Option Contracts. 7.1 Option Contracts must not be entered into by a Customer with GRC for the purpose of Speculation or investment. By entering into an Option Contract with GRC, the Customer is deemed to represent and warrant to GRC at that time and at all times thereafter that the purpose of the Option Contract is solely for Hedging. 7.2 GRC may offer Option Contracts comprised of any of the Options described in the Product Disclosure Statement, a copy of which the Customer has received and confirms it understands. 7.3 The Customer must indicate to GRC the Currency, the contract amount, the type of Option desired, the option exercise (strike) price, the expiry date and the Currency in which the Customer will pay any premium, if required. 7.4 For certain Option Contracts GRC may, require the Customer to pay a premium at the time that the Option Contract is entered into or at a future date agreed to in writing between GRC and the Customer. 7.5 The Customer may only exercise the Option stipulated in the Option Contract in accordance with the terms and conditions of the Option Contract by giving notice to GRC of its intention to exercise said Option Contract. Exercise occurs when the Customer gives notice to GRC to convert the Option Contract into the underlying foreign exchange Currency, provided that any premium due has also been received by GRC. The Customer acknowledges and agrees that if the Option Contract trades at or beyond a barrier level or is “in-the-money”, GRC shall have the right to convert the Option Contract into the underlying Currency on such Option Contract’s Expiry Date. 7.6 If the Option provided for in the Option Contract has been exercised in accordance with Section 7.5, then each party to such Option Contract shall pay the Currency and amount due thereunder to the other party on the Settlement Date. 7.7 The Customer may notify GRC that it desires to offset or close-out an Option Contract (a “Notice of Option Cancellation”), specifying the reason for such offset or close-out. GRC may, in its sole discretion, agree to the request in the Notice of Option Cancellation provided that the Customer has paid any required premium as determined by GRC and any Notice of Option Cancellation has been received by GRC before the Expiry Time on the Expiry Date of such Option Contract. GRC will evaluate the relevant closing strike rate and premium and the net difference will be charged to the Customer for immediate payment. Any cancellation or modification must support the commercial needs of the Customer and must not be for speculative or investment purposes. 7.8 An Option Contract will lapse at its Expiry Date if such Option Contract has not been exercised in accordance with Section 7.5 or offset in accordance with Section 7.7. 7.9 Option contracts may require a Margin Deposit (unless waived in writing by GRC in its sole discretion) in an amount and on terms specified by GRC, which shall be stated in the Margin Credit Facility Letter. The amount of the Margin Deposit shall be specified at the time that the Option Contract is entered into. The Margin Deposit shall be either in guaranteed funds or by a financial institution letter of guarantee or letter of credit (on terms and conditions satisfactory to GRC) GRC including without limitation, the issuing financial institution and the maturity date and must be paid within one (1) Business Day. In the event that the Margin Deposit is not received within one (1) Business Day, GRC shall at its sole discretion and without further notice, have the right to: (i) terminate the contract which relates to the specific Service or Transaction; (ii) terminate and close out any other pending Transaction/contract for Services with Customer; and (iii) set off amounts owed to the Customer including any gains on contracts closed out (terminated) against any Losses incurred and amounts then owing to GRC on Transactions with Customer. In the event of default default, GRC reserves the right to apply a fee of up to 6% of the notional value to close out or terminate contracts Where a ▇▇▇▇▇▇ Margin Deposit is placed on a floating basis for the Option Contract, the Customer agrees to submit to GRC an Additional Margin Deposit when GRC determines that the mark-to-market potential loss on the Option Contract exceeds the prescribed amount established with GRC in the Margin Credit Facility Letter. GRC shall determine the mark-to-market value of an Option Contract at a given point on a daily basis based upon the Mid-Market Rate. The Customer agrees to accept and be bound by such mark-to-market value determination as made by GRC. 7.10 GRC shall have the right, in its sole discretion, to notify a Customer at any time that an Additional Margin Deposit is required pursuant to Section 7.9. The Customer acknowledges and agrees that upon such notification from GRC, it will have one (1) Business Day from notification to provide to GRC the Additional Margin Deposit. The amount of the Additional Margin Deposit shall be that amount determined by GRC which is sufficient to ensure that the Margin Deposit together with the Additional Margin Deposit held by GRC for the particular Option Contract on a mark-to- market value is at least the minimum prescribed amount established by GRC for the Option Contract as established in the Margin Credit Facility Letter. 7.11 Should the Customer not: (i) complete the Option Contract as set out in the terms by the Expiry DateDate or extended Expiry Date as permitted by the terms of the Customer’s Settlement Terms; or (ii) pay any Margin Deposit, including any required Additional Margin Deposit, then GRC shall no longer be obligated to complete the Option Contract and at its discretion, any other pending Transaction including any other Option Contract(s) with the Customer. GRC shall have the right to: (iii) sell the Option Contract into the market; (iv) charge the Customer with any Losses, including if a Customer’s account is closed out, or if a Customer’s contract(s) require termination, GRC reserves the right to apply a fee of up to six percent (6%) of the notional value to close-out accounts or terminate contact(s); and (v) apply the Margin Deposit or any Additional Margin Deposit and any other deposit or funds held by GRC to pay the Losses. Should such amounts be insufficient to reimburse GRC for the Losses, the Customer agrees to forthwith pay to GRC any additional amount required to reimburse GRC for the Losses. In the event of default default, GRC reserves the right to apply a fee of up to 6% of the notional value to close out or terminate contracts 7.12 If the Margin Deposit and any Additional Margin Deposit are not needed based upon the Customer performing its obligations under the Option Contract to completion, GRC agrees to return to the Customer the Margin Deposit or the amount remaining that was not required.