Dtc Participant Agreement

„DTC has developed a method for allocating losses in the event that a certificate constituting non-transferable security is deposited with DTC and, more likely, after the reintroduction of transfer services and the presentation of the transfer certificate, it is found to be stolen, falsified or otherwise defective. If the contributing/compensating participant is still active or if DTC maintains the deposit of the participating fund at a level sufficient to cover the loss, DTC will first endeavor to charge the participant for a reservation or his deposit. However, in the event that DTC is aware of the loss at the time DTC is aware of the loss: 1. The deposit participant has transferred the underlying securities by an accounting entry; (2) the participant does not bear the damage himself because he is not in business or for any other reason; and (3) if the participant`s deposit in the participating fund is not sufficient to cover the loss, the loss is allocated as follows: 2. It goes without saying that DTC is unable to provide its normal certificate withdrawal services in securities, including CODs and W/T. The Participant will fully comply with the industry practices and rules in force, which respect the need to inform other Participants to whom it will address, if any, for introductory deliveries of securities. „The undersigned („Participant“), a participant in depository Trust Company („DTC“), intends to deposit from time to time with DTC specific certificates (the „Certificates“), which constitute securities for which there are no transfer services (the „Securities“). The loss is prorated among all participants who have a position in such an edition on the day DTC finds that the certificate is defective, but with the exception of the participants` positions, but to the extent that there were positions on the day DTC first communicated to the participants: that the issue is „non-transferable“. For example, if a participant held a position of 1,000 shares in an issue at the time the issue was identified as non-transferable and later acquires 500 additional shares, a proportional calculation of the losses would only be made for the additional 500 shares and not for the total position of 1,500 shares. DTC will first endeavor to weigh on the deposit of the participant`s holding fund at a level sufficient to cover the loss. If the deposit does not cover the total amount of the loss, DTC calculates the participant`s balance directly.

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