Points to Note for US Stock Online Trading Service

I/We acknowledge and consent the following Points to Notes below:

1.

Account Documentation and W-8BEN Form (Department of the Treasury Internal Revenue Service)
To apply for the US stock online trading service, applicants (non-US citizens/residents and non-Canadian residents)
should fill in the W-8BEN Form during services application. The W-8BEN form is subject to renew for every 3 years.
If W-8BEN Form has not been renewed as aforesaid, the US stock trading services will not be provided, and only sell
orders can be placed on the US Stocks, and the capital gain tax will be withheld until W-8BEN Form is renewed.
Please also note that you come under a different tax regime when invest overseas, and may NOT be exempted from US
capital gain taxes. You should seek professional tax advice, where appropriate.

2.

US Tax ( e.g. withholding tax on dividends gained )

The US tax regime covers everyone holding US-based investments (be it marketable securities, mutual funds, or bonds,
etc.) in his/her own name, regardless of whether the person is a US citizen or permanent resident. In other words, all
investors holding US securities of any form are required to pay a withholding tax on dividends gained.
Any U.S. source income received by a customer through the Company, including interests or dividends, is subject to
the U.S. withholding tax. Therefore, the Companys executing broker for U.S. stocks is required to withhold a tax of
up to 30% of any payment of the said income to a foreign person. Moreover, the Company will not represent or assist a
customer for any application filed with the IRS for reduction or exemption of the withholding tax.
You should seek professional tax advice, where appropriate. For details, please click the following SFCs link :
(http://www.hkiec.hk/web/en/investment/stock-trading/online-trading/trading-process.html)

3.

Clearing and Custodian Services

The execution broker would be ViewTrade Securities, Inc. and the clearing agent would be BNP Paribas Securities
Corp.
Please understand that Haitong International Securities Company Ltd. will act as introducing broker and assist you to
ascertain and recover the accountabilities and liabilities of ViewTrade Securities, Inc and BNP Paribas Securities Corp.
in case of any counter-party risk arising from such arrangement.

4.

5.

Provision of Services
(a)

If your Securities Account is in Margin Type, margin financing is provided for online US Stocks trading also.
For more information like interest rate, please refer to http://www.htisec.com/en/securities/us_stk.jsp?type=1.

(b)

The service is not available for U.S. persons and Canadian residents. Only non-US citizens/ residents, as well
as non-Canadian residents, can apply for this service. For any change of personal information, please contact
our customer services (852) 3583-3388.

(c)

Only stocks in NASDAQ, NYSE, NYSEMKT and BATS are available for US stock online trading. And no
pre/post market trading sessions are available.

(d)

For stocks traded at (i) OTC Bulletin Board/OTC BB and (ii) OTC Pink (i.e. outside NASDAQ, NYSE,
NYSEMKT and BATS), both BUY and SELL orders cannot be placed via US Stock Online Trading Service
but you can contact us for placing orders. In addition, we do not accept purchase and transfer-in of US OTC
market securities with a market capitalization of less than US$300 million AND a share price of less than US$5
apiece. If you would like to sell the OTC stocks in your account, you may still contact your account executive
or our 24-Hour Investment Centre (Tel: (852) 2213 8333) to sell the affected securities. Please be reminded that
orders for US OTC market securities priced below US$5 apiece will require the manual approval from our
Broker before they are routed to the market; therefore, processing time for orders placed via account executives
or our 24-Hour Investment Centre would be longer. In addition, our Broker shall have absolute discretion to
refuse or act upon/accept any of your instructions.

(e)

Online US Stocks trading provides delayed US stocks quote free of charge. If you want to subscribe real-time
quote, please kindly visit eServices https://eservices.htisec.com/. You are required to fill in the online user
agreements during your first login to Online US Stocks trading for real-time US Stocks quote services. The
agreements are only available in English and here is the agreement template
http://www.htisec.com/en/cs/faq_table.jsp?table=faq_usaccopen for your reference.

Commissions and Fees

Upon execution of orders, commissions and fees should be paid which may vary from time to time upon notice
through Haitong Internationals website http://www.htisec.com or any other means. In particular, there is special
commission/ handling fee for trading the penny stock (i.e. stock value less than US$0.10) and American Depository
Receipts (ADR) etc.

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6.

Trading Hour
The trading hour of US stock online trading is 09:30am 04:00pm Monday to Friday (US Eastern Standard Time
(EST).
All outstanding same day orders will be expired after market close at 04:00pm (EST).
Orders will be accepted from 08:00am Monday to Friday (US Eastern Standard Time (EST) (Except Holiday). Please
make sure the trading account has enough buying power/stock positions for all trading instructions, and check the
latest order status and account balances/portfolio after market open.

7.

Settlement Date
The purchase and sale of stocks are settled on settlement date, i.e. on the third business day after the transaction. The
sales proceed of the sale transactions can be used for further stock purchase until settled.

8.

Fund Deposit/ Withdrawal

US Dollar should be deposited or exchanged from other currencies to the US stock online trading account for online
trading purpose. The cut off time of fund deposit instruction for online US Stocks trading services is 4:00 pm Monday
to Friday Hong Kong Time (except public holiday), and the cutoff time of fund withdrawal and foreign currency
exchange instructions is 2:00 pm Monday to Friday Hong Kong Time (except public holiday), the buying power of
online trading account will be updated before US Stocks Market opens.

9.

Position Transfer
Please pay special attention that the online US Stocks trading instructions, account balance and stocks positions are
totally separated from offline account. If client would like to transfer the balance/position between the online and
offline accounts, please submit the request by 2:00pm Monday to Friday Hong Kong Time (Except Holiday). Should
you have any enquiry, please contact your Account Executive or Customer Services for details.

10.

Miscellaneous
Details could be referred to the account opening document(s) and other accompanying documents and other
information (including any relevant updates from time to time) on Haitong Internationals website
http://www.htisec.com.
For US Stocks Trading enquiry, please call our Dealing Department at (852) 2213-8333 from 6:00pm Monday to
6:00am Saturday (Hong Kong Time) during US Stocks trading days. Please note that online services may be
suspended due to special situations like holiday arrangement or unsettled corporate actions without prior notice.
In the event of any difference in interpretation or meaning between the Chinese and English version of this authority,
the English version shall prevail.

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