In the event that the Authority rejects a plan proposed by a Licensed Person in the event of a Primary Default Event, the following actions shall be taken: 1. All Clients’ funds held in a Client bank account and all Clients’ transaction accounts of the Licensed Person shall be treated as pooled and placed in an independent account, except for Clients’ funds held in a Clients’ transaction account at a Clearing Agency as a part of clearing and settlement process. 2. The Licensed Person, the liquidator, receiver, administrator, or the person who manages the Licensed Person shall distribute Clients’ funds after settlement of required expenses, so that each Client who is a beneficiary receives a sum which is in proportion to his entitlement to the Clients’ funds. 3. If, in connection with a clearing arrangement, Clients’ funds are remitted directly to the Licensed Person, any such remittance shall be included in the notional pool referred to in paragraph (1) of this Article, and they shall be distributed in accordance with paragraph (2) of this Article; except for the cash monies of a specific Client which shall be transferred directly to him after deducting any transfer charges in the following two cases: a. no client funds in excess of the amount recorded in the relevant Client transaction account are held by the licensed person as margin in relation to the positions recorded in that Client transaction account. b. If the accounts or reports of Clearing Agency clearly indicate that these funds are for specific Client of the Licensed Person.The Authority may require implementation of precautionary actions or procedures other than the ones above in respect of any Primary Default Events.