Fourth: Terms and Conditions for dealing in Options Contracts
All definitions and other general terms and conditions stated above are accurate and valid and shall apply with these provisions and shall be read together as one unit save what may be in conflict with the nature of Option Contracts.
1. Upon signing these Terms, the Customer shall comply with the following:
a) Deposit the premium levied on the Option Contracts which the Customer buys in addition to the commissions prior to commencing with dealing.
b) Close his existing Options positions at the latest by the maturity date of the contract, ie at the latest before one hour at which the contract expires with each position as per its specified time.
2. The Customer shall authorize the Bank with the following:
a) The Bank shall open the accounts for dealing in the Option Contract.
b) The Bank shall withhold/collect the required cash deposits so determined by the Bank to deal in Options from the Customer’s accounts at the Bank.
c) The Bank shall buy or sell Options Contracts at the Customer’s request for his account, provided that the Customer shall solely bear all the risks so entailed.
d) The Bank shall deduct the trading commissions and record the required premiums without any objection and/or opposition by the Customer save for errors and/or omissions.
e) The Bank shall debit the [Customer’s] account at the Bank by the due amounts pursuant to these terms and/or contracts and the appendices thereof and the contents of this paragraph shall be deemed to be an absolute authorization without the Customer being entitled to objecting and/or opposing at any time by any means of opposition save for errors and/or omissions.
f) To carry out the required netting in the event that the Contract falls due and the Customer does not close it before the maturity date and the contract was In The Money or At the Money.
3. The Bank shall, without objection by the Customer, carry out the following:
a) Debit and Credit the Customer’s account in respect of the amount of commissions and any selling or buying transactions of Options Contracts which comprise the basic premium and /or profit or loss amount.
b) Where the Customer does not comply with the duties set forth under these terms and conditions, the Bank shall, upon its sole will/power, liquidate same/all the Options Contracts of the Customer’s without the need for being so notified in writing.
4. It is agreed between the Bank and the Customer as follows:
a) Dealing in Options Contracts by the Customer shall be for the purposes of speculation and/or hedging which do not entail any actual receipt or delivery of assets at the maturity date, as such, the dealing in such type of contracts, shall be restricted to financial settlements only.
b) The Central Bank of Jordan shall not have any liability whatsoever towards the Bank or the Customer in connection with dealing in Contracts.
c) The Customer may sustain a loss as a result of exploiting Options Contract(s) extended thereto and undertakes to indemnify the Bank for every loss or damage sustained by the Bank due to or as a result of acting in accordance with the Customer’s instructions.
d) The Bank’s role is only an intermediary to execute the Customer’s instructions in connection with selling and buying Options Contracts and debit the account together with the information related to these terms, conditions, contracts and appendices thereof and that the Customer has solely made his decision to enter into such contracts based on his personal discretion without interference from the Bank or any of its employees. The Bank shall have no liability or consequences of any kind whatsoever in connection with any advice or consultation given to the Customer whether upon his request or not as well as in respect of all matters related thereto and arising therefrom.
e) The Bank shall have no liability or consequences whatsoever as a result of any losses, damages or extra cost sustained by the Customer whether resulting from implementing the Customer’s instructions in connection with the Options Contract(s) or as a result of force majeure; breakdowns resulting from malfunction of communications devices or the inadequacy thereof or cancellation of the instructions on dealing with Options Contracts by the Central Bank of Jordan, Jordan Securities Commission and/or any other official entity or by the correspondent banks, brokerage companies or for any other reason that the Bank has nothing to do with.
f) Over and above the provisions relating to the termination of dealing in investment tools/portfolios stated above the Bank shall, in accordance with its sole and absolute will, shall be entitled to liquidate all the rights of Options Contracts of the Customer’s without the need for being so notified in writing.
g) This Agreement consists of Four Clauses and the Preamble. Accordingly, this Agreement was signed by the Customer in compliance with the contents thereof. He acknowledges that he has full capacity and full mental soundness and that he has read and fully understood the entire Clauses of this Agreement and agrees to it and that he received a copy of such Agreement on the date shown hereunder.