AGREEMENT
THIS CLIENT AGREEMENT is entered into on [insert date]
BETWEEN
(1) XXX Investments LLC whose principal place of business is at [insert
address], XXX (the Broker)
(2) [Insert name of client] whose principal place of business is at [insert address],
XXX (the Client)
WHEREAS
(A) When a stockbroker provides a customer with credit facilities in respect of
transactions in securities effected by the stockbroker on behalf of the customer, the
account which the stockbroker establishes with the customer to record such transactions
is said to be a margin securities trading account ("Margin Account").
(B) The Client is desirous of opening one or more Margin Accounts with the Broker for
the purpose of trading in securities; and
(C) The Broker agrees that he will open and maintain such Margin Account(s) and act
as an agent for the Client in the purchase and sale of securities subject to the terms and
conditions of this Agreement.
IT IS AGREED as follows:
1. This Agreement sets out the terms and conditions to which the Client shall be subject
to upon the Client opening a Margin Account with the Broker in relation to transactions
carried out in connection therewith.
2. All transactions in securities made for or on behalf of the Client in XXX shall be
subject to the relevant provisions of the constitution, Rules, regulations, by-
laws, customs and usages of the Exchange in Maryland ("the "Exchange") and of the
Laws of Maryland as amended from time to time.
3. All transactions executed on instructions of the Client on the floor of the Exchange
shall be subject to a transaction levy and any other levies that the Exchange from time to
time may impose. The Broker is authorized to collect any such levies in accordance
with the Rules prescribed by the Exchange from time to time.
4. The Rules of the Exchange, in particular those rules which relate to trading and
settlement, shall be binding on both the Broker and the Client in respect of transactions
concluded on the instructions of the Client.
5. In the event that the Broker commits a default as defined in the Securities Ordinance
and the Client thereby suffers a pecuniary loss, the Client understands that the right
to claim under any compensation fund or insurance will be restricted to the extent
provided for therein.
6. The Client shall on demand from the Broker make payments of deposits or margins
in cash, securities or otherwise in amounts agreed with the Broker or which may be
required by the rules of any exchange or market of which the Broker is a member. The
minimum deposit to be made shall be $5000.
The broker shall ensure transparency of the operations by emailing monthly results of
the investments to the respective clients, which shall be done on the 1 st day of every
month. The results shall include both profits and losses made.
As according to the results accruing to the broker in the years of 2020-2022, the broker
estimates a profit margin of up to 11% and no less than 4% from the investments made.
7. There shall be a 1 year commitment to the investment in order to capitalize on
compound interest.
8. The broker shall charge a fee of 20% of the profit accrued from every close trade or
alternatively, a fee of 5% and $499 each month of the period of investment.
9. If the Client commits a default in payment on demand of the deposits or margins or
any other sums payable to the Broker hereunder, on the due date therefore, or otherwise
fails to comply with any of the terms herein contained, without prejudice to any other
rights the Broker may have, the Broker shall have the right to close the Margin
Account(s) without notice to the Client and to dispose of any or all securities held for or
on behalf of the Client and to apply the proceeds thereof and any cash deposit(s) to pay
the Broker all outstanding balances owing to the Broker, Any monies remaining after
such application shall be refunded to the Client.
10. Should the client undertake to cancel the transaction before the lapse of the
commitment period (one year from the date of commencement), the broker shall charge
a fee of 15% of the amount deposited by the client at the time of the cancellation.
However, should the client cancel the account after 1 year from the date of
commencement, no penalties shall be charged.
11. The Client undertakes to indemnify the Broker and its officers, employees and
agents for any loss, cost, claim, liability or expense arising out of or connected with
any breach by the Client of its obligations hereunder including, any costs reasonably
and necessarily incurred by the Broker in collecting any debts due to the Broker or in
connection with the closure of the Margin Account(s).
12. If in relation to any securities deposited with the Broker which are not registered in
the Client’s name any dividends or other distributions or benefits accrue in respect of
such securities, the Client’s account with the Broker shall be credited with the
proportion of such benefit equal to the proportion of the total number or amount of
relative securities which shall comprise securities held on behalf of the Client.
13. If, in relation to any securities deposited with the Broker but which are not
registered in the name of the Client, any loss is suffered by the Broker therefrom, the
Margin Account may be debited (or payment made by the Client as may be agreed) with
the proportion of: such loss equal to the proportion of the total number or amount
of relative securities which shall comprise securities held on behalf of the Client.
14. The Broker shall not, without the Client’s prior written consent, deposit any of the
Client’s securities as security for any loans or advances made to the Broker, or lend
or otherwise part with the possession of any of the Client’s securities for any purpose.
[Such written consent shall be in the form appearing at Appendix 1 to this Agreement.]
15. Whilst the Client expects the Broker to keep confidential all matters relating to the
Client’s account, the Client hereby expressly agrees that the Broker may, if requested by
the Exchange, provide to the Exchange details of the Client’s account, in order to assist
the Exchange with any investigation or enquiry it is undertaking.
16. In the event that the Broker has to obtain securities, which the Broker has purchased
on behalf of the Client, in the open market, following the failure of the selling
broker to deliver on the settlement date, the Broker will be responsible for any
difference in price and all incidental expenses in connection with such open market
purchase.
17. The information contained in the "Account Opening Information Form" or
otherwise supplied by or on behalf of the Client to the Broker in connection with the
opening of an account is complete, true and correct. The Broker is entitled to rely on
such information until written notice from the Client of any changes therein has been
received.
18. The Client authorizes the Broker to conduct a credit enquiry or check on the Client
for the purpose of ascertaining the financial situation and investment objectives of the
Client.
19. Risk Disclosure Statement.
The Client acknowledges that the price of securities can and does fluctuate, and that any
individual security may experience downward movements, and may under
some circumstances even become valueless. The Client appreciates therefore that there
is an inherent risk that losses may be incurred rather than profit made, as a result of
buying and selling securities. This is a risk that the Client is prepared to accept.
20. The Client also acknowledges that there are risks in leaving securities in the custody
of the Broker or in authorizing the Broker to deposit securities as collateral for loans
or advances made to the Broker or authorizing the Broker to borrow or loan securities.
21. In the event of a dispute between the Parties to the contract, the parties shall
convene a meeting to resolve the dispute via negotiation. In case they do not arrive at an
amicable solution, the parties shall undertake to resolve the issue through mediation in
accordance to the laws of the state governing the agreement.
21. The Client confirms that he has read this Agreement and that the contents of
this Agreement have been fully explained to him in a language which he understands.
The Client hereby agrees and consents to the terms and conditions herein contained.
22. A person who is not a party to this Agreement shall have no right under any law to
enforce any of its terms.
21. This document is governed by and is to be construed in accordance with the laws of
Maryland applicable therein.
Each party irrevocably and unconditionally submits to the exclusive jurisdiction of the
courts of Maryland (and any court of appeal) and waives any right to object to an action
being brought in those courts, including on the basis of an inconvenient forum or those
courts not having jurisdiction.
.
IN WITNESS WHEREOF this Agreement has been entered into on the day and year
above written.
SIGNED by )
for and on behalf of Illevyn Investments LLC )
__________________
In the presence of ) [Signature]
[Witness name, address and occupation]
[Witness Signature]
SIGNED by )
for and on behalf of [insert name of client] )
__________________
in the presence of ) [Signature]
[Witness name, address and occupation]
[Witness Signature]
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