A CLIENT-BROKER AGREEMENT ON COMMODITY FUTURES TRADING (Individual by mcu14908

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									                                                         A CLIENT-BROKER AGREEMENT
                                                     ON COMMODITY FUTURES TRADING
                                                                                (Individual)


                                                                                                                                  JSP. Futures Co., Ltd.
                                                                                                                                  Date …………………………


             This agreement is between JSP. Futures Co., Ltd. (the “Company”) by ………………………… and
………………………………, authorized directors of the Company, whose head quarter is located at 323 17th
Floor United Center Bldg, Silom Road, Silom, Bangrak, Bangkok 10500 Thailand, and Mr./Mrs./Miss
…………………………………………………………………………………… (the “Client”) who resides at
.......................................................................................................................................................
…………………………………………………………………………………………………………...…………..
 In this agreement, the Client appoints the Company as its broker for commodity futures trading with terms and
conditions as specified below.


1. Definitions
      “Exchange” refers to the Agricultural Futures Exchange of Thailand.
      “Office” refers to the Office of Agricultural Futures Trading Commission.
      “Secretary” refers to the secretary of the Agricultural Futures Trading Commission.
      “Agent” refers to a person who has been approved by the Secretary and appointed by authorized brokers of
the Exchange as an agent for commodity futures trading.
      “Client” refers to buyers, sellers, or persons authorized by the buyers or sellers who buy and/or sell
commodities futures contracts through authorized brokers of the Exchange.
      “Futures Trading” refers to the act of buying or selling commodity futures contracts in accordance to the
rules and procedures stated in The Agricultural Futures Trading Act of 2542.
      “Buy or Sell Order” refers to the order to buy or sell commodity futures contracts as specified by the
Exchange.
      “Futures Trading Agreement” refers to the Buy or Sell Order whose price and delivery month has been
confirmed by the Exchange
      “Trading System” refers to the trading system that is used at the Exchange.
      “Margin” refers to the cash or cash equivalent that the Client places at its broker as collateral for commodity
futures trading.

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    “Collateral for Delivery” refers to the collateral that the Client places at its broker to ensure delivery.
    “Client Account” refers to the cash or cash equivalent of Client that the broker places at a commercial bank
or other institutions under the broker’s account for benefits of the Client.
    “Relevant Announcements” refers to announcements by the Office, the board of directors of the Office, the
Exchange, or the board of directors of the Exchange.
    “Company Announcements” refers to the announcements of the Company to the Client either orally or
through written communications. Company Announcements are effective immediately without prior notice.


2. The Company’s Services

    2.1   Account opening
          The Client must open an account with the Company before placing any Buy or Sell Order through the
Company or Agents appointed by the Company.
          Upon opening the Client Account, the Company will allow the Client to conduct its Futures Trading
within the credit line specified by the Company. The Company reserves the right to change the credit line or
modify the calculation methodology of the credit line without prior notice.
          The Company reserves the right to refuse the Client’s Buy and Sell Order that is beyond the Client’s
credit limit. In the case where the Company allows the Client to conduct its Futures Trading beyond the Client’s
credit line, the Client agrees to be responsible for all consequences of the Futures Trading.
          The account opening documentations and all documents that the Client includes in its account opening
applications are part of this agreement.
          The Client agrees to grant the Company all interests from the Client Account and allow the Company
to withdraw the interests from the Client Account without notice.

    2.2   Tape recording of trade conversation
          The Client agrees to allow the Company to record all conversations with the Client that are relevant to
Futures Trading and that the recorded conversations can be used as evidence of the Buy or Sell Order or the
Futures Trading Agreement.

    2.3   Ordering procedure
          The Buy and Sell Order may be done through written or phone conversation, or other means deemed
appropriated by the Exchange.




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          To conduct Futures Trading by phone, the Client must call only the Company or Agents appointed by
the Company to place the Buy or Sell Order. The Company or Agents appointed by the Company will then
inform the Client whether the status of the Buy or Sell Order. In the case of Futures Trading by phone, the
Client may dispute the correctness of the Buy or Sell Order execution by informing the Company’s compliance
unit orally or in writing within five (5) business days after the Buy or Sell Order was made; otherwise, the Client
agrees that the Buy or Sell Order has been executed correctly.
          The conduct Futures Trading through written communication, the Client must complete the
Company’s Buy or Sell Order form, sign the form, and give the form to marketing personnel at the Company
trading room or to Agents appointed by the Company. If the Company cannot complete a part or all of the
Client’s Buy or Sell Order, the Client agrees to accept all the consequences and the Company is not responsible
for the Client’s losses. In the case of Futures Trading through written communication, the Client may dispute
the correctness of the Buy or Sell Order execution by informing the Company’s compliance unit orally or in
writing within three (3) business days after the Buy or Sell Order was made; otherwise, the Client agrees that the
Buy or Sell Order has been executed correctly.

    2.4   Order cancellation Procedure
          Cancellation of the Buy or Sell Order can be done only on the portion that has not been executed. The
Client must inform the Company or Agents appointed by the Company of the cancellation by phone or through
written communication in the Company’s trading room.
          If the Company cannot complete a part or all of the Client’s order cancellation, the Client agrees to
accept all the consequences and the Company is not responsible for the Client’s losses.

    2.5   Trade confirmation
          Once the Client’s Buy or Sell Order has been matched by the Exchange, the Company will send the
Client confirmation either by phone, fax, or electronic mail. The Client may collect the confirmation document
at the Company’s offices the next business day. If requested, the Company can send the confirmation document
by mail and the Company’s confirmation responsibility ends at the post.

    2.6   Reports
          2.6.1     Report on the Client’s Futures Trading Agreements and the financial status of the
                    Client Account
          2.6.2     End-of-month report on the financial status of the Client Account
          2.6.3     Company Announcements related to Margin, broker fees, and delivery fees.




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          The Company will send the Client the above reports by mail. The Company’s reporting responsibility
ends at the post. The Client can collect the reports at the Company’s office.


3. Margin System

    3.1   Initial margin refers to the cash that the Client must place at the Company before sending the Buy or
Sell Order.

    3.2   Maintenance margin refers to the cash that the Client must place at the Company to maintain the status
of the Client’s Futures Trading.

    3.3   Intraday margin refers to the cash that the Client must place at the Company to maintain the status of
the Client’s Futures Trading in the case of unusually high volatility in the market.

    3.4   Other margin as specified by the Exchange
          The margin rates will be set according to the Company Announcements on the account opening date.
The Company, however, reserves the right to change the margin rates as it sees fit.
          The Client must fulfill the initial margin requirements before placing the Buy or Sell Order. Once the
order is matched, the initial margin requirements must be met the next business day before the opening hour of
the Exchange.
          By the end of each trading day (6 p.m.) or at the latest the next business day before the opening hour
of the Exchange, the Client must replenish the margin account with cash if its balance is less than the
maintenance margin requirements.
          In the case of unusually high volatility in the market, the Client may be required to replenish the
margin account as required by the Company.
          The Client is required to place the Collateral for Delivery with the Company one month before the
delivery month or according to the current Company Announcements.
          The Client agrees to allow the Company to place the Client’s margin at the Exchange in accordance to
the Relevant Announcements.
          If the margin account is greater than the maintenance margin requirement, the Client may withdraw
the excess amount as long as the Client does not owe the Company money and the futures delivery processes has
been completed.




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4. Failure to Satisfy Margin Requirements 4
    If the Client fails to satisfy the margin requirements specified in this agreement, the Company has
the rights to:

    4.1    Refuse the Client’s Buy or Sell Order unless the order is to offset the Client’s existing futures position

    4.2    Execute some or all of the offsetting trades for the Client

    4.3    Net out the Client’s obligation to the Company from the Client’s margin account

    4.4    Charge the Client interests or fees on the margin amount that the Client fails to satisfy according to the
procedures and rates in the current Company Announcements. 4.4
           If the Client fails to satisfy the margin requirements and the Company has taken any or all of the
above actions, the Client yields the right to take the company to court.


5. Delivery
    The Client agrees to fulfill the delivery requirements as specified by the Exchange and/or the Company
Announcements. Regardless of intention, if the Client does not fulfill its delivery requirements, the Client
agrees to compensate the Company for all financial and other losses that has occurred because the Client failed
to fulfill its delivery requirements.


6. Offsetting the Client’s Futures Position

    6.1    If any of the following applies, the Client agrees to allow the Company to offset the Client’s
futures position.

           6.1.1    The Client passes away, becomes disable, or bankrupt.

           6.1.2    The Company deems the Client unable or unwilling to fulfill the terms in this agreement
particularly the margin requirements.

           6.1.3    The Client has sold part of the Client’s assets without informing the Company and has caused
the Company to be in the disadvantageous position or not receiving money promised in this agreement.

           6.1.4    The justice court or government offices have ordered a freeze on part or all of the
Client’s assets.




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           6.1.5   The agricultural futures clearing house offsets the Client’s position.
6.2 If the Company offsets the Client’s position as specified in 4.2 or 6.1 and incurs losses, the Client agrees to
be responsible for all the losses including all interests and fees from the date of the loss up until the Client has
fully paid the Company all compensation to cover the loss. The Company will charge the Client fifteen (15)
percent interest per year on the amount that the Client owes. The Company may inform the Client of adjustment
on interest rate through the Company Announcements.


7. Rights and Duties
    The Company has the duty to inform the Client of the following:

    7.1    All of the Client’s Futures Trading Agreements

    7.2    The status of the Client’s margin account

    7.3    The Client’s cancellation of Buy or Sell Order

    7.4    Relevant Announcements


8. Fees, Expenses, and Taxes
    When the Buy or Sell Order has been matched, the Client agrees to pay all fees, expenses, and taxes related
to the transaction as specified by the Relevant Announcements or the Company Announcements by granting the
Company the right to collect the fees, expenses, and taxes from the Client’s margin account.


9. Risks
    The Client certifies that the Client has studied and has full knowledge of commodity futures, trading and
delivery processes, margin system, and Relevant Announcements.
    The Client certifies that the Client understands and agrees that “Futures trading is risky. Due to its high
gearing (or leverage) ratio, a small change in underlying commodity price may exert large positive or
negative change in the Client’s margin account. As such, in adverse market situations, the Client may lose
all the initial and additional margins. Further, if the Client does not fulfill the margin call obligations as
specified by the Exchange or the Company Announcements, the Company may offset the Client’s futures
position and the Client will be responsible for all losses that have occurred.”




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10.     Dispute Resolutions
        In disagreement, the Client and the Company agrees to follow the dispute resolution below.

        10.1 The Client and the Company will solve the disagreement in good terms and with good attitudes.
If the dispute resolution has been reached, both parties will sign the written resolution, and the only the clauses
in the signed resolution will be legally effective.

        10.2 If the dispute resolution cannot be reached, the Client and the Company agree to seek advice from
the Secretary and accept the Secretary’s resolution as final.


11.     Termination of the Agreement
        Any of the parties may terminate this agreement in writing at least seven (7) business days prior to the
intended termination date.
        If any of the parties breaches any of the terms in this agreement, the other party has the right to the
agreement termination that takes effect immediately, and the party that breaches the agreement agrees to be
responsible for losses that has occurred because of the breaches.
        After the agreement termination, the Client is responsible for losses and the balance including interest in
the Client’s account.
        In addition to the terms specified in this agreement, the Client and the Company agrees to oblige by Thai
laws.
        If any of the terms specified in this agreement is in conflict with the laws or cannot be legally enforced, the
Client and the Company agree to follow the intentions of the agreements with full legal effects.


12.     Transfer of Payments
        It is the Company’s policy not to accept cash for the Client’s margin requirement. Instead, the Client may
send check payable to “JSP. Futures Co., Ltd.” with “Account Payee Only” crossed or transfer money to the
Company’s bank account.
        It is the Company’s policy not to send cash to Clients. Instead, the Company will either send check
payable to the Client or transfer money to the Client’s bank account.
        This agreement is made in two (2) copies. The Client has read and fully understood all the terms in the
agreement. The Client agrees to all the terms and signs the agreement with company seal if application in
presence of witnesses.




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JSP. Futures Co., Ltd.


…………………………                         …………………………
(                        )         (             )
      Director                         Client


…………………………                         …………………………
(                        )         (             )
      Director                         Witness


…………………………
(                        )
      Witness




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