Document:

Exhibit 10.19

 

TERMINATION
AGREEMENT

 

This Termination Agreement (this “Termination
Agreement”) is entered into as of February 14, 2005 by and among FTD, Inc.,
a Delaware corporation (the “Company”), FTD.COM Inc., a Delaware
corporation (“FTDC”), Florists’ Transworld Delivery, Inc., a
Michigan corporation (“FTDI”), FTD International Corporation, a Delaware
corporation (“FTDT”), Value Network Service, Inc., a Delaware
corporation (“VNS”), FTD Holdings Incorporated, a Delaware corporation (“FTDH”),
Renaissance Greeting Cards, Inc., a Maine corporation (“RGC”),
Flowers USA, Inc., a Connecticut corporation (“USA” and, together
with the Company, FTDC, FTDI, FTDT, VNS, FTDH and RGC, the “FTD Entities”),
and Leonard Green & Partners, L.P. (the “Advisor”).  Capitalized terms used but not otherwise
defined herein shall have the meaning ascribed to such terms in the Agreement
(as defined below)

 

WHEREAS, the FTD Entities and the Advisor are parties
to that certain Management Services Agreement, dated as of February 24,
2004 (the “Agreement”), pursuant to which the Advisor provides certain
investment banking, management, consulting and financial services to the FTD
Entities as provided for therein;

 

WHEREAS, FTD Group, Inc., a Delaware corporation
and the parent corporation of the Company, will consummate a Public Offering
Event on the date hereof; and

 

WHEREAS, in connection with the Public Offering Event,
the Advisor and the FTD Entities desire to terminate the Agreement, as provided
herein, as of the date hereof.

 

NOW, THEREFORE, in consideration of the mutual
promises and agreements stated below the parties hereto agree as follows:

 

1.                                       Termination.  The parties hereto agree and acknowledge
that, effective as of the date hereof and subject to the provisions of Section 3
hereof and the receipt by the Advisor of the payment referred to in Section 2
below, the Agreement is terminated and shall thereafter have no further force
and effect.

 

2.                                       Payment
of Fees.  Pursuant to Section 3.1
of the Agreement, immediately upon consummation of the Public Offering Event,
the Company, on behalf of the FTD Entities, shall pay to the Advisor an amount
equal to Twelve Million Five Hundred Thousand Dollars ($12,500,000.00) by wire
transfer of immediately available funds, representing all amounts payable under
the Agreement.

 

3.                                       Indemnification.  Notwithstanding anything to the contrary
contained herein, the terms and provisions of Section 5 of the Agreement
shall survive the termination of the Agreement pursuant to this Termination
Agreement, and shall remain in full force and effect.  The provisions of Sections 6.1 and 6.6 of the
Agreement shall similarly survive the termination of the Agreement insofar as
applicable to the surviving provisions thereof.

 

4.                                       Binding
Effect.  This Termination Agreement
shall be binding on the parties hereto and their respective successors and
assigns.

 

 

5.                                       Further
Assurances.  Each of the parties
hereto shall, without the necessity of any further consideration, take all such
further actions and execute all such further documents and instruments as shall
be necessary or convenient to carry out more effectively the purposes of this
Termination Agreement.

 

6.                                       Governing
Law.  This Termination Agreement
shall be governed by and construed in accordance with the Laws of the State of
Delaware, without regard to any conflicts of law principles thereof.

 

7.                                       Headings.  The headings used in this Termination
Agreement are used for convenience only and shall not limit or otherwise affect
the meaning of this Termination Agreement.

 

8.                                       Counterparts.  This Termination Agreement may be executed in
two or more counterparts, each of which shall be deemed an original and all of
which together shall constitute one and the same instrument.

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, the parties have executed this
Termination Agreement as of the date first written above.

 

 

	
   

  	
  FTD, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carrie A. Wolfe

  	
   

  
	
   

  	
   

  	
  Name:
  Carrie A. Wolfe

  
	
   

  	
   

  	
  Title:   Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  FLORISTS’ TRANSWORLD
  DELIVERY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carrie A. Wolfe

  	
   

  
	
   

  	
   

  	
  Name:
  Carrie A. Wolfe

  
	
   

  	
   

  	
  Title:   Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  FTD.COM INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carrie A. Wolfe

  	
   

  
	
   

  	
   

  	
  Name:
  Carrie A. Wolfe

  
	
   

  	
   

  	
  Title:   Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  FLOWERS USA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jon R. Burney

  	
   

  
	
   

  	
   

  	
  Name:
  Jon R. Burney

  
	
   

  	
   

  	
  Title:   Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FTD HOLDINGS INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jon R. Burney

  	
   

  
	
   

  	
   

  	
  Name:
  Jon R. Burney

  
	
   

  	
   

  	
  Title:   Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RENAISSANCE GREETING
  CARDS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jon R. Burney

  	
   

  
	
   

  	
   

  	
  Name:
  Jon R. Burney

  
	
   

  	
   

  	
  Title:   Secretary

  

 

S-1

 

	
   

  	
  VALUE NETWORK SERVICES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jon R. Burney

  	
   

  
	
   

  	
   

  	
  Name:
  Jon R. Burney

  
	
   

  	
   

  	
  Title:   Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FTD INTERNATIONAL
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jon R. Burney

  	
   

  
	
   

  	
   

  	
  Name:
  Jon R. Burney

  
	
   

  	
   

  	
  Title:   Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LEONARD GREEN &
  PARTNERS, L.P.

  
	
   

  	
  By: LGP Management, Inc.

  
	
   

  	
  Its:  General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter J. Nolan

  	
   

  
	
   

  	
   

  	
  Name: Peter J. Nolan

  
	
   

  	
   

  	
  Title:  Vice President

  

 

S-2Exhibit 10.2

 

Refco, LLC

 

550 West
Jackson Boulevard, Suite 1300

Chicago,
Illinois 60661

(312)
788-2000 • Fax (312) 788-2100

www.refco.com

 

	
   

  	
  BOOK 2

  
	
   

  	
   

  
	
  Name of Broker:

  	
  Corporate/LLC

  
	
                                     

  	
  Account
  Application

  
	
  Account #:

  	
  & Agreements

  

 

 

Opening your account with us...

 

Thank you for selecting Refco, LLC. To make it easy
and convenient to open your account, we’ve included all the necessary forms and
information in two separate books:

 

Book 1 – Information and Disclosure
Statements

Contains information for you to read and keep for your records.

 

Book 2 – Account Application and
Agreements

Contains all necessary forms for you to read, sign and send back to us. (Since you
will be returning this book to us, you may wish to make copies of the forms you
sign and keep them with your other records.)

 

To establish your account, please
follow these three steps:

 

1. Read Book 1, Information and
Disclosure Statements.

No signatures are required, so please retain the
entire book for your records.

 

2. Read and sign Book 2, Account
Application and Agreements.

Your secretary or other authorized officer must
complete all designated areas as appropriate and provide signatures where
needed. It is required at least 2 officers or
members sign within the account opening documents.

 

Book 2 contains the following:

 

	
   

  	
   

  	
  Page

  
	
  Account Application – Corporate/LLC

  	
   

  	
  1-2

  
	
  Customer Agreement

  	
   

  	
  3-9

  
	
  Corporate Resolutions

  	
   

  	
  10

  
	
  LLC Resolutions

  	
   

  	
  11

  
	
  Account Application and Guaranty

  	
   

  	
  13-14

  
	
  Acknowledgement of Receipt

  	
   

  	
  15

  
	
  Additional Risk Disclosure

  	
   

  	
  16

  
	
  NFA Registration Exemption Letter

  	
   

  	
  17

  
	
  W9 Section (Tax Status)

  	
   

  	
  19-20

  
	
  Hedge Account Representation

  	
   

  	
  21-22

  
	
  Consent-Electronic Statements

  	
   

  	
  23

  
	
  Online Services & Electronic Trading Agreement

  	
   

  	
  24-27

  
	
  External Transfer Form

  	
   

  	
  28

  

 

Send the
completed Book 2 back, in its entirety accompanied by the company’s most recent
financial statement and Articles of Organization.

 

 

3. Fund your account, in any of the
following three ways:

 

Bank Wire. Bank wires are considered cleared
funds and allow you to begin trading your account immediately. When wiring
funds, please contact your account representative for instructions.

 

Checks. You may fund your account with a
personal check, savings and loan check, and checks drawn on a money market or
credit union account. These funds require clearance before you may begin
trading. You may also fund your account with a cashiers check or certified
check, however please discuss this with your account representative prior to
funding, for further instruction.

 

MAKE ALL CHECKS PAYABLE TO REFCO,
LLC.

 

Transferred funds. You may fund your account by
transferring funds to Refco from an investment or brokerage account of another
firm. Funds transferred from another brokerage account are considered cleared
funds.

 

To transfer funds, simply fill out the one-page
External Transfer Form on page 28 and return it to us. We’ll take care of the
rest.

 

Please note:
Regardless of the funding method you choose, the originator of the funds must always
match the name listed as the account holder.

 

If you intend to trade Security
Futures Products, you must also receive the Security Futures Disclosure
Statements (Book 4), to read and keep for your records.

 

If someone other than the account
owner(s) will have authorization to trade the account, you must also receive,
complete & return the Managed Account Authorization (Book 3).

 

We
look forward to serving you!

 

REFCO,
LLC

 

 

	
  FOR OFFICE USE ONLY

  
	
  Salesman Name and/or #:

  	
   

  	
   

  
	
  Acct. #:

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
	
  $:

  	
   

  	
   

  
						

 

ACCOUNT APPLICATION - CORPORATE/LIMITED
LIABILITY COMPANY

 

	
  Corporation/LLC Name

  	
   

  
	
   

  
	
  Taxpayer ID no.

  	
   

  
	
   

  
	
  Corporation/LLC address

  	
   

  
	
   

  
	
  City

  	
   

  	
   State

  	
   

  	
   Zip

  	
   

  	
   Country

  	
   

  
	
   

  
	
  Telephone no. 

  	
  (____)

  	
   

  
	
   

  
	
  Address that account statements and notices are to be sent:

  
	
   

  
	
   

  
	
  Nature of business

  	
   

  	
   

  
	
   

  
	
  Is corporation/LLC registered with the NFA or NASD? o
  YES o NO
  Registration status

  	
   

  
	
   

  
	
  Person to contact

  	
   

  	
  Business telephone no. (      )

  	
   

  
	
   

  
	
  E-mail address

  	
   

  	
  Home telephone no. (      )

  	
   

  
	
   

  
	
  Fax no. (      )

  	
   

  	
   

  
	
   

  
	
  Date of incorporation

  	
   

  	
  State of incorporation

  	
   

  
	
   

  	
   

  
	
  Principal Officers/Members:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  President/Member

  	
   

  	
  Vice President/Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Secretary/Member

  	
   

  	
  Treasurer/Member

  
	
   

  	
   

  	
   

  
	
  Company’s annual income:

  	
   

  	
  Net worth:

  
	
  o
  $25,000-$49,999

  	
   

  	
  o
  $50,000-$99,999

  
	
  o
  $50,000-$100,000

  	
   

  	
  o
  $100,001-$249,999

  
	
  o
  more than $100,000

  	
   

  	
  o
  $250,000-$499,999

  
	
  o
  if less than $25,000

  	
   

  	
  o
  $500,000-$1,000,000

  
	
   please specify exact amount:

  	
   

  	
  o
  more than $1,000,000

  
	
   

  	
   

  	
   

  	
  o
  if less than $50,000

  
	
   

  	
   

  	
   

  	
   please specify exact amount:

  
	
  Estimated liquid net worth:

  	
   

  	
   

  	
   

  
	
  o $25,000-$49,999

  	
   

  	
   

  
	
  o
  $50,000-$100,000

  	
   

  	
  What Online Trading system(s) do you
  intend to use?

  
	
  o
  $100,001-$500,000

  	
   

  	
   

  
	
  o
  more than $500,000

  	
   

  	
   

  	
   

  
	
  o
  if less than $25,000

  	
   

  	
   

  	
   

  
	
   please specify exact amount:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
																												

 

1

 

	
  Guarantors:

  
	
   

  
	
  Please list all guarantors and execute the GUARANTY form on
  pages 13 and 14 (if applicable).

  
	
   

  
	
   

  
	
   

  
	
  Authorized traders:

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  Do federal or state laws or regulations or
  corporate policy restrict the type of trading or futures contracts that may
  be traded by the corporation?                                                                                                                                                           o YES   o NO

  
	
   

  
	
  If YES, state limitations:

  
	
   

  
	
   

  
	
  Has the company previously traded futures
  or options?

  
	
                                                                                                                                                                                               o YES   o NO

  
	
  If YES, complete the following: 

  
	
  Name of Firm(s)

  
	
   

  
	
   

  
	
  Number of years traded:

  	
   

  
	
   

  
	
  Account Status:

  
	
  o Open    o
  Closed

  
	
   

  
	
  Ownership of corporation  

  	
  o Publicly
  Held

  o Privately
  Held

  
	
   

  	
   

  
	
  Is the company a member of any exchange?                                                                                                                  o YES   o NO

  
	
   

  
	
  Does the company or any of its officers,
  directors or principal stockholders have a financial interest of ten (10%)
  percent or more in any other trading account at Refco?

  
	
                                                                                                                                                                                               o YES   o NO

  
	
  If YES, indicate name(s) and account number(s):

  
	
   

  
	
   

  
	
  Affiliations:

  
	
   

  	
  Are you affiliated with or employed by a futures or
  securities exchange, NFA, NASD, a member firm of either of those entities, or
  by Refco, LLC.

  
	
   

  	
   

  
	
   

  	
  o
  YES, with

  	
   

  	
   

  	
  o NO

  
	
   

  	
   

  
	
   

  	
  Are you a “control person” or “affiliate” of a public
  company as defined in SEC Rule 144? This would include, but is not
  necessarily limited to, 10% shareholders, policy-making executives, and members
  of the Board of Directors.

  
	
   

  	
   

  
	
   

  	
  o
  YES, Trading symbol:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Company

  	
   

  
	
   

  	
   

  
	
   

  	
  o NO

  	
   

  
	
   

  	
   

  
	
  Primary trading objective:    o
  Speculation o Hedging

  
	
   

  
	
  Do you intend to trade security futures or
  narrow-based index products?  o
  YES  o
  NO

  
	
   

  
	
  Date you received the Risk Disclosure
  Statement for Security Futures Contracts

  	
   

  
	
   

  	
   

  
	
  Security futures and narrow-based index
  products trading objective: o
  Speculation  o
  Hedging

  	
   

  
	
   

  	
   

  
	
  Current Bank/Money Market accounts:

  	
   

  
	
   

  	
   

  
	
  Firm

  	
   

  	
   

  	
  o Checking

  
	
  City

  	
   

  	
   

  	
  o Money
  market

  
	
  Acct. #

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Firm

  	
   

  	
   

  	
  o Checking

  
	
  City

  	
   

  	
   

  	
  o Money
  market

  
	
  Acct. #

  	
   

  	
   

  	
   

  
																

 

2

 

CUSTOMER AGREEMENT

 

In consideration of Refco, LLC, (hereinafter
referred to as “Refco”) acting as broker and accepting one
or more accounts in commodities, commodity futures contracts,
options on commodities, options on commodity futures contracts, single stock
futures contracts, options on single stock futures, narrow-based index products,
options on narrow-based index products, or any other product approved for
trading by Refco’s regulatory authorities (collectively, “futures
contracts”) for the undersigned (“Customer”), it is agreed with
respect to all accounts, whether upon margin or otherwise,
which Customer now has or may at any future time have with
Refco, including accounts from time to time closed and then
reopened, as follows:

 

1. AUTHORIZATION. Customer authorizes Refco to purchase
and sell futures contracts for Customer’s account in accordance with Customer’s oral or
written instructions. Customer hereby waives any defense that any
such instructions were not in writing as may be required by any law,
rule, or regulation. The authority hereby conferred shall remain in
force until written notice of its revocation signed by Customer.

 

2. GOVERNMENTAL AND EXCHANGE RULES.
All transactions
shall be subject to the constitution, by-laws, rules, regulations, customs, usages,
rulings and interpretations of the exchange, board of trade, contract
market or other market (and its clearing house, if any) where executed
and to all applicable federal and state laws and regulations. If
any statute, rule, or regulation shall hereafter be adopted by any
governmental authority, exchange, board of trade, clearing house, or self regulatory
organization which shall be binding upon Refco and shall affect in any manner or
be inconsistent with any of the provisions hereof, the affected
provisions of this agreement shall be deemed modified or
superseded, as the case may be, by the applicable provisions of
such statute, rule, or regulation, and all other provisions of
this agreement and provisions so modified shall in all respects
continue in full force and effect. This paragraph is solely
for Refco’s protection and Refco’s failure to comply with any such statute, rule or
regulation shall not be a breach of this agreement or other wise impose liability upon
Refco to Customer nor relieve Customer of any obligations under
this agreement.

 

3. MARGINS. Customer shall provide to and
maintain with Refco margin in such amounts and in such form as Refco, in its sole
discretion, from time to time may determine. Such margin requirements established by
Refco may exceed the margin required of Refco by an exchange.
Refco may change margin requirements in its sole discretion at
any time. If Refco determines that additional margin is required, Customer
agrees to deposit with Refco such additional margin when and as required
and demanded by Refco, and will promptly meet all margin calls in such manner as
Refco shall designate in its sole discretion. Notwithstanding any demand
for additional margin, Refco at any time may proceed in
accordance with paragraph 5 below, and any failure to proceed
shall not be deemed a waiver of any rights by Refco. No previous margin shall
establish any precedent. Refco shall not be liable to Customer for the loss of any
margin deposits which is the direct or indirect result of the bankruptcy,
insolvency, liquidation, receivership, custodianship, or assignment for the benefit
of creditors of any bank, another clearing broker, exchange, clearing organization,
or similar entity.

 

4. SECURITY AGREEMENT AND TRANSFER AUTHORIZATION.

(a) All funds, securities, commodities, futures
contracts, and other property of the Customer which Refco at
any time may be carrying for Customer (either individually, jointly with others,
or as a guarantor of the account of another person) or which at any time may be in Refco’s
possession or control or carried on its books for any purpose,
including safekeeping, are to be held by Refco as security and
subject to a general lien and right of set-off for all liabilities
of Customer to Refco or any affiliate of Refco. From time to time, Refco in its sole discretion, without prior notice to Customer may, apply or transfer any funds (including segregated funds) or other property interchangeably between any of Customer’s accounts at Refco or an affiliate of Refco as may be necessary for margin or to satisfy or reduce any deficit or debit balance in any such account. Within a reasonable time after any such transfer, Refco will confirm the transfer
in writing to Customer.

 

(b) All property carried for Customer by Refco shall
be segregated as required by the Commodity Exchange Act and the rules of
the Commodity Futures Trading Commission (CFTC). Customer will not be permitted to
make or change an election concerning account type. Subject to such
segregation requirements, Customer hereby grants to Refco the right to pledge,
repledge, hypothecate, rehypothecate, or invest, either separately or with
the property of other customers, any securities or other property held
by Refco for the accounts of Customer or as collateral therefore,
including without limitation to any exchange or clearing house through
which trades of Customer are executed. Refco shall be under
no obligation to pay to Customer or account for any interest,
income or benefit derived from such property and funds or to
deliver the same securities or other property deposited with
or received by Refco for the account of Customer. Refco may deliver securities
or other property of like or equivalent kind or amount.

 

3

 

(c) Any rights Refco has under this agreement for
purposes of cross-collateralization and Customer default
may be exercised by any affiliate of Refco in connection with
property and positions of Customer with such Refco affiliate. As security for the
payment of all Customer’s obligation and liabilities to a Refco
affiliate, each Refco affiliate shall have a continuing priority security
interest in all property in which Customer has an interest held by or through a
Refco affiliate. In order to satisfy and outstanding liability or obligation
of Customer at a Refco affiliate, such affiliates, at any time
and without prior notice, may use, apply or transfer any such
property and collateral interchangeably between and among themselves. In the event
of a breach or default under this agreement or any other agreement Customer may have
with a Refco affiliate, each Refco affiliate shall have all rights
and remedies available to a secured creditor under any applicable law in addition
to the rights and remedies provided herein.

 

5. LIQUIDATION OF ACCOUNTS. In the event of (a) the death or
judicial declaration of incompetency of Customer, (b) the filing of a petition in
bankruptcy, or a petition for the appointment of a receiver, by or
against Customer, or any one of the Customers if this is a joint account,
(c) the filing of an attachment against any of Customer’s accounts
carried by Refco, (d) insufficient margin as determined by Refco in its sole
discretion, or Refco’s determination that any collateral deposited
to protect one or more accounts of Customer is inadequate, regardless of current
market quotations, to secure the account, or (e) any other circumstances
or developments that Refco deems to require action necessary
for its protection, Refco is hereby authorized, according to its
judgment and in its sole discretion, to take one or more or
any portion of the following actions: (1) satisfy any obligation
Customer may have to Refco, either directly or by way of guaranty or suretyship,
out of any of Customer’s funds or property in the custody or control of Refco; (2)
sell any or all futures contracts, commodities, or securities held or
carried for Customer or purchase any or all futures contracts, commodities
or securities held or carried as a short position for Customer; and (3) cancel any
or all outstanding orders, contracts, or any other commitments made on
behalf of Customer. Any of the above actions may be taken without demand
for margin or additional margin, without prior notice of sale or purchase or other
notice or advertisement to Customer, his personal representatives,
heirs, executors, administrators, legatees, or assigns, and
regardless of whether the ownership interest shall be solely
Customer’s or held jointly with others. In liquidating Customer’s
long or short position, Refco, in its sole discretion may sell or purchase in the same
contract month or initiate new long or short positions in order to establish a spread or
straddle which in Refco’s judgment may be necessary or advisable to
protect existing positions in Customer’s account. Any sales or
purchases hereunder may be made according to Refco’s judgment and at its
discretion on any exchange or other market where such business is then usually
transacted or at public auction or at private sale, and Refco may
purchase the whole or any part thereof free from any right of redemption. It
is understood that, in all cases, a prior demand, call, or notice of the time and place
of a sale or purchase shall not be considered a waiver of Refco’s
right to sell or buy without demand or notice as herein provided. Customer at
all times shall be liable for the payment of any debit balance upon demand
by Refco, and shall be liable for any deficiency remaining in
Customer’s account(s) in the event of the liquidation thereof in
whole or in part by Refco or by Customer. In the event the
proceeds realized pursuant to this authorization are
insufficient for the payment of all liabilities of Customer due to Refco,
Customer promptly shall pay, upon demand, the deficit and all
unpaid liabilities, together with interest thereon and all costs
of collection including reasonable attorneys’ fees. Customer agrees to pay all
expenses, including attorneys’ fees, incurred by Refco to collect
any debit balances in Customer’s account or to defend any unsuccessful claim Customer
may bring against Refco.

 

6. DELIVERY MONTH LIQUIDATION
INSTRUCTIONS.

(a) Liquidating instructions on open positions
maturing in a current delivery month must be given to Refco
at least five (5) business days prior to the first notice day
in the case of long positions and, in the case of short
positions, at least five (5) business days prior to the last trading day.
Alternatively, sufficient funds to take delivery or the necessary
delivery documents must be delivered to Refco within the same periods
described above. If neither instructions, funds, nor documents
are received, Refco without notice, may either liquidate Customer’s
position or make or receive delivery on behalf of Customer
upon such terms and by such methods which Refco deems feasible.

 

(b) If at any time Customer fails to deliver to
Refco any property previously sold by Refco on Customer’s
behalf or fails to deliver property, securities or financial instruments in compliance
with futures contracts, or Refco shall deem it necessary (whether by reason of
the requirements of any exchange, clearing house or otherwise) to
replace any securities, futures contracts, financial instruments, or other property
previously delivered by Refco for the account of Customer with other property of
like or equivalent kind or amount, Customer authorizes Refco in its
judgment to borrow or to buy any property necessary to make
delivery thereof or to replace any such property previously
delivered and to deliver the same to such other party to whom
delivery is to be made. Refco may repay subsequently any
borrowing thereof

 

4

 

with property purchased or otherwise acquired for
the account of Customer. Customer shall pay Refco for any
cost, loss and damage from the foregoing (including
consequential damages, penalties and fines) which Refco may be
required to incur or which Refco may sustain from its inability to
borrow or buy any such property.

 

7. CHARGES. Customer agrees to pay such
brokerage, commission and account charges and fees as Refco may establish
and change from time to time. Customer agrees to be liable to Refco for interest on
amounts due from Customer to Refco at the rates customarily charged by
Refco. In the event Customer’s account is transferred to another
broker, a transfer charge shall apply.

 

8. STATEMENTS AND CONFIRMATIONS.

Customer acknowledges that Customer is bound to the
actual executions of transactions on the exchanges, and understands that all
reports of execution, price quotations and other market information are
subject to change and errors as well as delays in reporting. Customer agrees that
reliance upon such information is at his own risk.

Confirmations of trades and any other similar
notices, including but not limited to purchase and sale
statements, sent to Customer shall be conclusive and binding
unless Customer notifies Refco to the contrary, (i) where a
report is made orally, at the time delivered to Customer, or
(ii) where a report or notice is in writing, prior to the opening of trading on
the next day following delivery of the report on which the relevant Exchange
is open for business. Customer’s account shall be conclusive and binding unless
Customer notifies Refco to the contrary immediately upon delivery to the
Customer. ANY OBJECTION OF CUSTOMER TO A TRADE CONFIRMATION OR
SIMILAR NOTICE OR A MONTHLY STATEMENT MUST BE
MADE IN WRITING AND DIRECTED TO
REFCO’S COMPLIANCE DEPARTMENT
ADDRESSED TO 550 WEST JACKSON BOULEVARD,
CHICAGO, IL 60661 OR VIA FACSIMILE TRANSMITTED
TO (312) 788- 2055, WITHIN THE TIME PERIOD
SET FORTH ABOVE. THE FAILURE OF
CUSTOMER TO PROVIDE SUCH TIMELY WRITTEN
OBJECTION IN THE MANNER SPECIFIED SHALL
CONSTITUTE RATIFICATION OF ALL ACTIONS
TAKEN BY REFCO OR ITS AGENTS.

 

9. COMMUNICATIONS. Reports, statements, notices and any other
communications may be transmitted to Customer at the address given in the Account
Application, or to such other address as Customer may from time to time
designate in writing. All communications so sent, whether by mail, fax, air courier,
messenger email, internet access, or otherwise, shall be deemed transmitted when
deposited in the United States mail, or when received by a transmitting
agent, and deemed delivered to Customer, whether actually
received by Customer or not.

 

10. COMMUNICATION DELAYS. Refco shall not be held responsible
for delays in the transmission or execution of orders due to a breakdown or
failure of transmission or communication facilities, or for any other
cause beyond Refco’s control.

 

11. CURRENCY FLUCTUATION RISK. If Customer directs Refco to
enter into any transaction to be effected in a foreign currency: (a) any profit or loss
arising as a result of a fluctuation in the exchange rate affecting
such currency will be entirely for Customer’s account and risk;
(b) all initial and subsequent deposits for margin purposes shall
be made in U.S. dollars in such amounts as Refco in its sole
discretion may require; and (c) Refco is authorized to
convert funds in Customer’s account into and from such foreign
currency at an exchange rate determined by Refco in its sole
discretion on the basis of then prevailing exchange rates. Transactions
on markets in other jurisdictions, including markets formally linked to a
domestic market, may expose you to additional risk. Such markets may be
subject to regulation that may offer different or diminished investor protection.
Domestic regulatory authorities will be unable to compel the enforcement of the
rules of regulatory authorities or markets in other jurisdictions.

 

12. TRADING RECOMMENDATIONS.

Customer acknowledges that (a) any market
recommendations and information communicated to Customer by
Refco do not constitute an offer to sell or the solicitation of an offer to buy any
commodity or futures contract; (b) such recommendations and information,
although based upon information obtained from sources believed by Refco to
be reliable, may be incomplete and may not be verified; and (c)
Refco makes no representation, warranty or guaranty as to
and shall not be responsible for, the accuracy or completeness
of any information or trading recommendation furnished to Customer.
Customer understands that Refco’s officers, directors, affiliates,
stockholders, employees, or representatives may have a position in and
may intend to buy or sell commodities or futures contracts
which are the subject of market recommendations furnished to
Customer, and that the market position of any such officer,
director, affiliate, stockholder, employee, or representative may
or may not be consistent with the recommendations furnished to Customer by Refco.
Refco makes no representation, warranty, or

 

5

 

guaranty with respect to tax consequences of
Customer’s transactions.

 

13. CUSTOMER REPRESENTATIONS.

Customer represents that the information contained
in the Account Application is true, correct, and not misleading in any respect,
and agrees that he will promptly notify Refco in writing if any of the information
or representations contained therein materially changes or ceases to be
true and correct in any material respect. Customer further
represents that he is of legal age and sound mind and that, except as
disclosed in writing to Refco, no one except Customer has an interest in any
account or accounts carried for Customer by Refco. Customer further represents that
he is not an employee of any exchange, any corporation in which any
exchange owns a majority of the capital stock, any member of
any exchange, any firm registered on any exchange, any futures commission merchant,
any introducing broker, or any bank, trust, or insurance company. In the event
that Customer becomes so employed, he will promptly notify Refco in
writing of such employment. Customer further represents that
he has full power and authority to enter into this agreement and to engage in
transactions in futures contracts of the kind contemplated herein
and that execution of this agreement, performance of duties hereunder, and the trading
of futures contracts by customer are not prohibited by any law, rule,
regulation, agreement or otherwise.

 

14. TRADING LIMITATIONS. Refco at anytime in its sole discretion
may limit the number of positions which Customer may maintain or acquire through
Refco. Customer agrees not to exceed the position limits established by
the CFTC or any contract market, whether acting alone or with
others, and to promptly advise Refco if Customer is required
to file any reports on positions.

 

15. OPTIONS TRADING.

(a) Customer understands that some exchanges and
clearing houses have established cut-off times for the
tender of exercise instructions and that an option will become
worthless if instructions are not delivered before such expiration time. Customer
also understands that certain exchanges and clearing houses automatically will exercise
some “in-the-money” options unless instructed otherwise. Customer
acknowledges full responsibility for taking action either to exercise or to prevent
the exercise of an option contract, as the case may be; Refco is not required
to take any action with respect to an option contract, including without
limitation any action to exercise a valuable option prior to its
expiration date or to prevent the automatic exercise of an option,
except upon Customer’s express instructions. Customer further understands that Refco
has established exercise cut-off times which may be different from the times
established by exchanges and clearing houses.

 

(b) Customer understands that (i) all short option
positions are subject to assignment at any time, including
positions established on the same day that exercises are assigned, and (ii)
exercise assignment notices are allocated randomly from among all Refco
customers’ short options positions which are subject to exercise. A more
detailed description of Refco’s allocation procedure is available
upon request.

 

16. CONSENT TO CROSS TRANSACTIONS.

This consent is being provided in order to comply
with exchange rules regarding cross trade procedures and the execution
of trades in which a floor broker or brokerage firm may be directly or indirectly
involved as a principal to a transaction on any exchange that, from time
to time, adopts rules requiring customer consent for these
transactions.

Customer hereby consents that Refco, LLC (“Refco”),
its agents, or floor brokers handling Refco orders, may, without prior
notice, execute Customer’s orders in which Refco, its directors, officers, employees,
agents, or the floor broker, may directly or indirectly, become the
buyer to Customer’s sell order or the seller to Customer’s buy order,
provided that such executions are made in accordance with
exchange rules and any applicable provisions of the Commodity
Exchange Act or regulations of the Commodity Futures Trading
Commission. This consent shall be continuous and remain in effect until revoked
in writing by Customer.

 

17. NO WAIVER OR AMENDMENT. No provision of this agreement
may be waived or amended unless the waiver or amendment is in writing and signed
by an authorized officer of Refco. No waiver or amendment of this
agreement shall be implied from any course of dealing between
the parties or from any failure by Refco or its agents to
assert its rights under this agreement on any occasion or
series of occasions. No oral agreements or instructions to the
contrary shall be recognized or enforceable.

 

18. GOVERNING LAW / PARTIAL
INVALIDITY.

This agreement and its enforcement shall be governed
by the internal laws of the State of Illinois without reference to conflict-of-laws
principles. Wherever possible, each provision of this agreement shall be interpreted
in such a manner as to be valid and effective under applicable law, but
if any provision of this agreement shall be prohibited by or
invalid under such law, such provision shall be ineffective to the
extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this agreement.

 

6

 

19. BINDING EFFECT. This agreement shall be
continuous and shall cover, individually and collectively, all accounts of Customer
at any time opened or reopened with Refco, irrespective of any change or
changes at any time in the personnel of Refco or its successors,
assigns, or affiliates, for any cause whatsoever; shall inure to the
benefit of Refco and its successors and assigns, whether by
merger, consolidation or otherwise; and shall be binding upon
Customer and the estate, executors, administrators, legal
representatives, successors and assigns of Customer. Customer
hereby ratifies all transactions with Refco effected prior to
the date of this agreement, and agrees that the rights and
obligations of Customer in respect thereto shall be governed
by the terms of this agreement, which supersedes all other
customer agreements between Refco and Customer.

 

20. TERMINATION. This agreement shall continue in
effect until terminated and may be terminated by Customer at any time when
Customer has no positions and no liabilities held by or owed to Refco or at any time
whatsoever by Refco; provided, however, that any such termination
shall not affect any transactions theretofore entered into and
shall not relieve either party of any obligations in connection
with any debit or credit balance or other liability or
obligation incurred prior to such termination.

 

21. INDEMNIFICATION. Customer agrees to indemnify Refco and
hold Refco harmless from and against any and all liabilities, losses, damages,
costs and expenses, including attorneys’ fees, incurred by Refco because
any of the Customer’s representations and warranties shall not be true and
correct or the agreements made herein by Customer shall not be fully and
timely performed. Customer also agrees to pay promptly to Refco all damages,
costs and expenses, including attorneys’ fees, incurred by Refco
in the enforcement of any of the provisions of this agreement.

 

22. RECORDING.

(a) Customer understands that Refco in its sole
discretion may record, on tape or otherwise, any telephone
conversation between Refco and Customer. Customer hereby agrees and consents
to such recording and waives any right Customer may have to object to the
admissibility into evidence of such recording in any legal proceeding
between Customer and Refco or in any other proceeding to which
Refco is a party or in which Refco’s records are subpoenaed.

 

(b) Absent a separate written agreement with
Customer or an advisor duly authorized to act on Customer’s
behalf, Refco in its sole descretion may, but shall not be
obligated to, accept futures contracts from other brokers executed
by such brokers for clearance and maintenance in Customer’s
account. If Refco and Customer enter into a separate give-up agreement, this
agreement will control in the event of any conflict between such agreements.

 

23. TERMS AND HEADINGS. The term “Refco” shall be deemed to
include Refco, LLC, and its agents, successors and assigns; the term “Customer” shall
be deemed to refer to the party or parties executing this agreement.
All pronouns shall be deemed to refer to the feminine or the
masculine, as the gender of Customer requires. If this is a
joint account, the singular shall mean, where appropriate, all
owners of an account and the statements, agreements, representations and warranties
set forth herein shall be deemed to have been made by each owner of the account. The
paragraph headings in this agreement are inserted for convenience of
reference only and are not intended to limit the applicability
or affect the meaning of any of its provisions.

 

24. JOINT ACCOUNT PROVISIONS.

(a) If this account is held by more than one (1)
person, all of the joint holders are jointly and severally
liable to Broker for any and all obligations arising out of
transactions in the account and agree to be bound by all terms
and conditions of the Customer Agreement signed by each party.
Broker is authorized to accept instructions and to send confirmations to any one
of the joint owners, and the Customer hereby further appoints any and all of said joint
owners as Customer’s agent for receipt of confirmations and hereby
waives any right to receive confirmations otherwise. Any one or
more of the joint owners shall have full authority for the
account and risk in the name of the joint account.

 

(b) If this account is a joint account, in the event
of the death of any of the Customers, the survivor(s)
shall immediately give Refco written notice thereof, and Refco,
before or after receiving such notice, may take such action,
institute such proceedings, require such papers, retain such
portion of the account, and restrict transactions in the
account as Refco may deem advisable to protect Refco against any
tax, liability, penalty, or loss under any present or future
laws or otherwise. The estate(s) of any of the Customers who
shall have died shall be liable, and the survivor(s) shall
continue to be liable, to Refco for any debit balance or loss in the
account in any way resulting from the completion of
transactions initiated prior to the receipt by Refco of the written
notice of the death of the decedent, or incurred in the
liquidation of the account, or the adjustment of the interests of the
respective parties.

 

(c) If this account is held by tenants in common,
then, in the event that the account is closed or upon
receipt of a certified

 

7

 

document evidencing death or legal incapacity of any
tenant, the account shall be divided in equal shares
unless Broker is otherwise notified, in writing, signed by all
joint owners of the amounts to be distributed to the individual
joint owners.

 

(d) If this account is held by the parties as joint
tenants with rights of survivorship, then, upon receipt of
a certified document evidencing death or legal incapacity of one of the parties,
the remaining party or parties shall continue this account in their name as sole or
joint owners with all the terms and conditions of said account
continuing in full force and effect.

 

25. PARTNERSHIP PROVISION. Where Customer is a partnership,
the event of the dissolution or the termination of the Customer or the dissolution,
termination or withdrawal of a general partner of the Customer by death,
retirement, or for any other reason, the remaining partners
immediately shall give Refco written notice thereof and Refco
may, before or after receiving such notice, close the
account(s) of Customer and proceed in accordance with paragraph 5
above and take such action, institute such proceeding,
require such papers, retain such portion of the account(s) or
restrict transaction in the account(s) as Refco may deem advisable to protect
Refco against any liability, tax, or penalty under any present or future laws or
otherwise. The estate of any of the general partners who shall have died shall be
liable, and each survivor shall continue to be liable to Refco for
any debit balance or loss in said account(s) resulting from the completion
of transactions initiated prior to receipt by Refco of such
written notice or incurred in the liquidation of the account(s)
or the adjustment of the interests of the respective parties.

 

26. ERISA PENSION PLAN PROVISION.

Where Customer is a plan covered by ERISA (as
defined below), Customer acknowledges and understands
that Refco is only providing services hereunder and is not a plan fiduciary as
defined in section 3(21) of the Employee Retirement Security Act of 1974 (“ERISA”),
and any rules or regulations promulgated thereunder. Refco has no
discretionary authority or control with respect to Customer’s
purchase or sale of futures contracts and that the furnishing of
market recommendations and information by Refco is solely for Customer’s
convenience and does not constitute the exercise of such authority or control; and
there is no agreement, arrangement, or understanding between
Customer and Refco that Refco’s recommendations will serve as
the primary basis for investment decisions with respect to the
assets of Customer or that Refco will render individualized
investment advice to Customer based on the particular needs of
Customer. Customer further represents that it has full power and authority
pursuant to governing agreements and otherwise to enter into this agreement and to
engage in transactions in futures contracts of the kind contemplated
herein. Customer further represents that it is not a “commodity
pool operator”, within the meaning of the Commodity Exchange
Act, by virtue of the exclusion provided in CFTC rule 4.5(a), and that it has
filed any required notice of eligibility in accordance with the requirements of Rule
4.5(c).

 

27. JURISDICTION, VENUE, WAIVER OF
JURY TRIAL AND SHORTENING OF LIMITATIONS PERIOD.

Customer agrees that any civil action, arbitration
or other legal proceeding between Refco or its employees or
associated persons, on one hand, and Customer, on the other hand,
arising out of or relating to this agreement on Customer’s
account shall be brought, heard and resolved only by a
tribunal located in Chicago, Illinois and Customer hereby waives the right
to have such proceeding transferred to any other location. In addition, Customer
hereby waives trial by jury in any such action or proceeding. No action, regardless of form, arising out of or relating to this agreement or transactions hereunder may be brought by Customer more than one year after the cause of action arose, provided, however, that any action brought under the provisions of Section 14 of the Commodity Exchange Act may be brought at any time within two years after the cause of action accrues. Customer hereby submits and consents
to personal jurisdiction in any state or federal court in Chicago,
Illinois and appoints and designates Refco (or any other party
whom Refco may from time to time hereinafter designate) as Customer’s true
and lawful attorney-in-fact and duly authorized agent for service of
legal process, and agrees that service of such process upon Refco or such
other party shall constitute personal service of such process
upon Customer; provided, that Refco or such other party
shall, within five days after receipt of any such process, forward the same by
air courier or by certified or registered mail, together with all papers affixed thereto,
to Customer at Customer’s last known mailing address.

 

28. RISK ACKNOWLEDGEMENT.

Customer acknowledges that investment in futures
contracts is speculative, involved a high degree of risk
and is suitable only for persons who can assume risk of loss in
excess of their margin deposits. Customer understands that
because of the low margin normally required in futures
trading, price changes in futures contracts may result in
significant losses, which losses may substantially exceed Customer’s
margin deposits. Customer represents that Customer is willing
and able, financially and otherwise, to assume the risks of futures trading,
and in consideration of Refco’s carrying Customer’s account(s), Customer agrees not to
hold Refco responsible for losses incurred through following its trading
recommendations

 

8

 

or suggestions or those of its employees, agents or representatives.
Customer recognizes that guarantees of profit or freedom from loss are
impossible of performance in futures trading, acknowledges that
Customer has received no such guarantees from Refco or from any of its
representatives, and has not entered into this agreement in
consideration of or in reliance upon any such guarantees or similar
representations.

 

29. ANTI-MONEY LAUNDERING. Important Information About
Procedures for Opening a New Account: To help the government fight the funding of
terrorism and money laundering activities, Federal law requires
all financial institutions to obtain, verify, and record information that identifies
each person who opens an account. What this means for you: When you open an account,
we will ask for your name, address, date of birth and other
information that will allow us to identify you. We may also ask to
see your driver’s license or other identifying documents.

 

30. ACCEPTANCE. This agreement shall not be deemed
to be accepted by Refco or become a binding contract between Customer and Refco
until approved by Refco’s new accounts department.

 

THIS IS A CONTRACTUAL AGREEMENT.
PLEASE READ IT CAREFULLY BEFORE SIGNING.

 

BY SIGNING THIS AGREEMENT, CUSTOMER
REPRESENTS AND WARRANTS TO BROKER THAT ALL INFORMATION SUPPLIED TO BROKER IN
THIS OR ANY OTHER ACCOUNT FORM IS TRUE AND ACCURATE, AND THAT CUSTOMER SHALL
INFORM BROKER IN WRITING OF ANY CHANGES TO SUCH INFORMATION WHEN SUCH CHANGES
OCCUR. REFCO IS HEREBY AUTHORIZED TO VERIFY ALL INFORMATION PROVIDED BY
CUSTOMER(S) HEREIN. I (WE) HEREBY REQUEST REFCO, LLC TO OPEN A TRADING ACCOUNT
IN THE NAME(S) SET FORTH IN THIS APPLICATION. I (WE) HAVE READ AND UNDERSTOOD
THE TERMS AND CONDITIONS OF THE CUSTOMER AGREEMENT GOVERNING THE ACCOUNT AND
AGREE TO BE BOUND BY THEM AS CURRENTLY IN EFFECT.

 

 

	
   

  	
   

  	
   

  
	
  Print Full Legal Name of
  Corporation/LLC

  
	
   

  
	
   

  	
   

  	
   

  
	
  Authorized
  Signature

  	
  Authorized
  Signature

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name/Title
  of Authorized Signatory

  	
  Name/Title
  of Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date

  	
  Date

  
					

 

9

 

CORPORATE RESOLUTIONS AND
CERTIFICATE

 

I,                      Secretary
of                                                         ,
a corporation organized under the laws of the State of
                          
(the “Corporation”), DO HEREBY CERTIFY that a meeting of the Board of Directors
of the Corporation, held in accordance with its charter and by-laws on the                  
day of                         of
the year            , at
which a quorum was at all times present and acting, the following resolutions were
duly adopted and that said resolutions have not been amended, rescinded or
revoked and do not conflict with any of the provisions of the charter or
by-laws of the Corporation:

 

	
  (1) RESOLVED:
  That

  	
   

  
	
   

  
	
   

  	
   and

  
	
   

  	
  (Officer Name & Title)

  
	
   

  
	
   

  	
  (Officer Name & Title)

  
				

 

and each of them, or such other person as the
Corporation may designate from time to time either in writing or by his
apparent authority, be and hereby are authorized to trade in futures contracts
for the account and risk of this Corporation through and with the firm of Refco,
LLC (“Refco”) and its successors and assigns, the authority hereby granted
including the power to do any and all of the following:

 

(a)          To buy, sell and agree to buy and sell futures contracts, on margin or
otherwise, the power to sell including the power to sell “short”;

 

(b)         To deposit with and withdraw from the account or accounts maintained at
Refco money, securities, and other property;

 

(c)          To receive requests and demands for additional margin, notices of
intention to sell or purchase and other notices and demands of whatever
character;

 

(d)         To receive and acquiesce in the correctness of such notices, statements
of account and other records and documents; and it was further;

 

(2)                                  RESOLVED: That notices, statements,
and demands upon the Corporation by or from Refco in connection with the
Corporation’s account or accounts may be delivered verbally or in writing to
any of the above designated persons as though dealing with the Corporation; and
it was further

 

(3)                                  RESOLVED: That the execution and
delivery of a Customer Account Application and Customer Agreement are hereby authorized
and that the officers of the Corporation are hereby directed to execute such
Agreements, and all other agreements by and on behalf of the Corporation and to
deliver the same to Refco; and it was further

 

(4)                                  RESOLVED: That Refco is authorized
to act upon the authority of these resolutions until receipt by it of a
certificate showing rescission or modification thereof signed by the Secretary
of this Corporation and under its seal, and that Refco is also authorized to recognize
and deal with the officers of this Corporation whose names are set forth in
this certificate, until receipt by Refco at its main Chicago office of a
further certificate, setting forth the name(s) of another person or other
persons as such officers; and it was further 

 

(5)                                  RESOLVED: That it is the intention
of the Corporation to give the persons empowered to trade in futures contracts
the broadest possible power with respect to the account or accounts of the Corporation,
and the Corporation agrees to hold Refco harmless against any and all claims
that may arise by reason of following any instruction, order, or direction
given by any of the empowered persons.

 

I further certify that each of the following has been
duly elected and is now legally holding the office designated below his or her
respective name:

 

 

	
   

  	
   

  	
   

  
	
  President

  
	
   

  
	
   

  	
   

  	
   

  
	
  Vice President

  
	
   

  
	
   

  	
   

  	
   

  
	
  Treasurer

  
	
   

  
	
   

  	
   

  	
   

  
	
  Secretary

  

 

I further certify that the
Corporation is duly organized and existing and, pursuant to its corporate
charter, has the power to effect the transactions and to take all actions as
recited in these resolutions. Furthermore, Refco may rely upon this
certification in establishing and maintaining accounts for the Corporation.

 

In witness whereof, I have
hereunto subscribed my name and affixed the seal of the Corporation this               
day of                         ,
2       .

 

 

	
   

  	
   

  	
  (Corporate Seal)

  
	
  Secretary

  

 

10

 

LIMITED LIABILITY COMPANY RESOLUTIONS

 

The undersigned being the manager (or managing
members) of                              ,
a limited liability company formed under the laws of the State of                                 
(“Company”), do hereby certify that the following resolutions were, or hereby
are, duly adopted in accordance with the procedures set forth in the limited
liability agreement of the Company and that said resolutions have not been amended,
rescinded or revoked, and are in no way in conflict with any of the provisions
of the Company’s limited liability agreement.

 

	
  RESOLVED: That 

  	
   

  	
   and/or

  	
   

  	
  , and/or

  	
   

  	
   of

  
	
   

  	
  name and title

  	
   

  	
  name and title

  	
   

  	
  name and title

  

 

This Company be and is hereby authorized to trade
and effect transactions in Futures Contracts for the account and risk of this Company,
including without limitation the power to do any and all of the following:

 

a)              To buy, sell, sell short, and trade in Futures Contracts on margin or
otherwise (this includes transactions on the Foreign Interbank Market);

b)             To deposit with and withdraw from REFCO, LLC, money, commodities,
contracts for the purchase or sale of Futures Contracts, checks and other
negotiable instruments, securities and other property of this Company;

c)              To receive and acquiesce in the correctness of notices, confirmations,
requests, demands and communications of every kind;

d)             To enter into a Corporate Customer Agreement (and all related account
documents) with the aforesaid firms;

e)              To settle, compromise, adjust, and give releases with respect to any
and all claims, demands, disputes and controversies; and

f)                To make agreements and take any other action relating to any of the
foregoing matters.

 

This enumeration of specific authority shall not in
any way limit or affect any other authority, which the named officials might
otherwise have.

 

RESOLVED: That any and all
past transactions of any kind herein authorized, which may have been heretofore
had on behalf of this Company through or with REFCO, LLC be, and hereby are,
ratified; 

 

RESOLVED: That REFCO, LLC is
authorized to act upon the authority of these resolutions until receipt by REFCO,
LLC of a writing showing revision or modification thereof signed by the manager
(or managing members) that REFCO, LLC is also authorized to recognize and deal
with the representatives of this Company whose names are set forth in a writing
signed by the manager (or managing members) of this
Company, until receipt by REFCO, LLC of a further certificate setting forth the
names of another person or persons as such officers;

 

RESOLVED: That the above
named representatives shall specifically have the authority to enter into a
third-party Power of Attorney, if desired; and

 

RESOLVED: That confirmations
of transactions entered into pursuant to this authorization shall be sent to
the following persons at the business address of this Company.

 

	
   

  	
   

  

Insert name of person other than person(s)
authorized above, (unless there is no other such person)

 

I further certify that the Company is duly organized
and existing and, pursuant to its certificate of formation and limited
liability company agreement, has the power to effect
the transactions and to take all actions as recited in these resolutions.
Furthermore, REFCO, LLC may rely upon this certification in establishing and
maintaining accounts for the Company.

 

IN WITNESS WHEREOF, I have hereunto subscribed my
name on behalf of the Company.

 

 

	
  X

  	
   

  	
   

  	
  X

  	
   

  
	
  Signature of Manager (or
  managing members) 

  	
  Date

  
	
   

  	
   

  
	
  X

  	
   

  	
   

  	
   

  
	
  Signature of Manager (or
  managing members) 

  	
   

  
	
   

  	
   

  	
   

  
	
  X

  	
   

  	
   

  	
   

  
	
  Signature of Manager (or
  managing members) 

  	
   

  

 

11

 

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12

 

As Guarantor of an account with Refco, LLC, please review and complete
this Guaranty form, signing where
indicated. If there is more than one Guarantor, you must supply the information
for each Guarantor on an additional sheet.

 

ACCOUNT APPLICATION AND GUARANTY

 

	
  Guarantor’s full name

  	
   

  
	
   

  
	
  Co-Guarantor’s full name

  	
   

  	
   

  	
  Social Security no.

  	
   

  
	
   

  
	
  Date of birth

  	
   

  	
   

  
	
   

  
	
  Home street address

  	
   

  
	
   

  
	
  City

  	
   

  	
   

  	
  State

  	
   

  	
   

  	
  Zip

  	
   

  	
   

  	
  Country

  	
   

  
	
   

  
	
  Home telephone no.

  	
  (

  	
            

  	
  )

  	
   

  	
   

  	
  Business telephone no. (

  	
            

  	
  )

  	
   

  
	
   

  
	
  Fax no.

  	
  (

  	
            

  	
  )

  	
   

  	
   

  
	
   

  
	
  Employer

  	
   

  	
   

  	
  Occupation

  	
   

  
	
   

  
	
  Business street address

  	
   

  
	
   

  
	
  City

  	
   

  	
   

  	
  State

  	
   

  	
   

  	
  Zip

  	
   

  	
   

  	
  Country

  	
   

  
																																						

 

	
  Current Bank/Money Market accounts:

  
	
  Firm

  	
   

  	
   

  	
  o Checking

  
	
  City

  	
   

  	
   

  	
  o Saving

  
	
  Acct. #

  	
   

  	
   

  	
  o Money market

  
	
   

  
	
  Net worth (excluding equity in home):

  
	
   

  
	
   

  	
  o $50,000-$99,999

  	
   

  	
  o $100,000-$249,999

  
	
   

  	
  o $250,000-$499,999

  	
   

  	
  o $500,000-$1,000,000

  
	
   

  	
  o more than $1,000,000

  	
   

  	
  o if less than $50,000, please specify exact
  amount:

  
	
   

  
	
  Annual income:

  	
   

  
	
   

  
	
  Do you now, or did you ever, have an interest in a
  futures or options
  account?                                                          o YES o NO

  
	
   

  	
   

  
	
  If YES, please list:

  	
   

  
	
  Firm

  	
   

  	
   

  	
  account o open o closed

  
	
  Firm

  	
   

  	
   

  	
  account o open o closed

  
	
   

  
	
  Investment experience:

  	
  YES

  	
  (# of years)

  	
  NO

  	
   

  
	
  Stocks/Bonds

  	
  o

  	
   

  	
  o

  	
   

  
	
  Funds

  	
  o

  	
   

  	
  o

  	
   

  
	
  Futures/Options

  	
  o

  	
   

  	
  o

  	
   

  
																

 

GUARANTY

 

In order to induce Refco, LLC (“Refco”) to enter into the Customer
Agreement, to which this guarantee is attached, 

	
  with

  	
   

  	
  (“Customer”) and for other 

  

good and valuable consideration the receipt and sufficiency of which
are hereby acknowledged, the undersigned hereby, jointly and severally in the
case of multiple guarantors, personally and unconditionally guarantee the
prompt, full and complete performance of any and all covenants and agreements
of Customer to Refco and the payment of any and all indebtedness, damages,
costs and expenses (including attorneys’ fees and costs of collection) owed to
or which may become due to Refco by Customer.

 

This guarantee shall remain in full force and effect until termination
of the Customer Agreement; provided, however, that the undersigned shall not be
released from his obligations hereunder so long as any claim of Refco against
Customer which arises out of, or relates to, directly or indirectly, the
Customer Agreement, is not settled to the satisfaction of Refco or discharged
in full.

 

The undersigned hereby expressly waives (a) notice of acceptance of
this guarantee by Refco, (b) notice of any default or

non-performance of Customer under the Customer Agreement, (c) notice of any
modification to the Customer Agreement or any extension of time granted to the
Customer, and (d) all defenses, counterclaims which the undersigned may at any
time have to any

 

13

 

claim of Refco against the Customer. The undersigned expressly
acknowledges that amendment or modification of the Customer  Agreement or the renewal or extension of any
indebtedness of Customer shall not in any manner release, affect or impair his liability
under this guarantee. The undersigned further agrees that no invalidity of the
Customer Agreement or any obligation thereunder shall affect or impair his
liability under this guarantee.

 

Refco may, in its discretion, proceed against the undersigned, jointly
and severally in the case of multiple guarantors, to collect any obligation
covered by the guarantee without first proceeding against Customer. Upon five
days’ written notice by Refco, the undersigned shall pay any and all
indebtedness, damages, costs and expenses due Refco by Customer and shall
perform any and all  duties
and obligations of Customer to Refco.

 

This guarantee shall be construed pursuant to the internal laws of the
State of Illinois without reference to conflict-of-law  principles, shall inure to the benefit of
Refco, its successors and assigns, and shall be binding on the undersigned, his
heirs and assigns. 

 

Any notice to be given to the undersigned may be sent to the address
provided below, and all communications so sent, whether by mail, telegraph,
telex, messenger or otherwise, shall be deemed duly given to the undersigned
personally, whether or not actually received. Notices sent by mail shall be
deemed duly given on the business day immediately following the date of
mailing.

 

Guarantor agrees that any civil action, arbitration or other legal
proceeding between Refco or its employees or associated persons, on one hand,
and Customer, on the other hand, arising out of or relating to this guarantee
shall be brought, heard and resolved only by a tribunal located in Chicago,
Illinois and Customer hereby waives the right to have such proceeding
transferred to any other location. In addition, Guarantor hereby waives trial
by jury in any such action or proceeding. Guarantor hereby submits and consents
to personal jurisdiction in any state or federal court in Chicago, Illinois and
appoints and designates Refco (or any other party whom Refco may from time to
time hereinafter designate) as Guarantor’s true and lawful attorney-in-fact and
duly authorized agent for service of legal process, and agrees that service of
such process upon Refco or such other party shall constitute personal service
of such process upon Guarantor; provided, that Refco or such other party shall,
within five days after receipt of any such process, forward the same by air
courier or by certified or registered mail, together with all papers affixed thereto,
to Guarantor at Guarantor’s last known mailing address.

 

All pronouns shall be deemed to refer to the masculine or feminine, as
the identity of the person may require, and the singular shall

import the plural in the context of this guarantee.

 

 

	
   

  	
   

  	
   

  
	
  Individually,
  as Guarantor

  	
  Individually,
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print
  Name 

  	
  Print
  Name 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address
  

  	
  Address
  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date 

  	
  Date 

  

 

14

 

ACKNOWLEDGEMENT OF RECEIPT

 

ACKNOWLEDGEMENT OF RECEIPT OF RISK DISCLOSURE
STATEMENT FOR FUTURES AND OPTIONS

 

CUSTOMER
ACKNOWLEDGEMENT:

 

I
hereby acknowledge that I have received, read and understood the Risk
Disclosure Statement for Futures and Options set forth in Book 1, “Information
and Disclosure Statements” on pages 1 and 2.

 

 

	
   

  	
   

  	
   

  
	
  Authorized
  Signature

  	
  Authorized
  Signature

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name/Title
  of Authorized Signatory

  	
  Name/Title
  of Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date

  	
  Date

  

 

15

 

ADDITIONAL RISK DISCLOSURE

 

In view of information on your account application with Refco, LLC you
should be aware of additional risk disclosures before you open a futures and
options trading account, if you fall into any of the following categories
(please check all that apply):

 

o You are retired.

 

o You have no prior futures, options or
securities trading experience.

 

o Your annual net income is less than $25,000
or net worth is less than $50,000.

 

o You are investing retirement funds (e.g.
IRA, 401K, Keogh, etc.)

 

o You are 65 years of age or over

 

o other (list)                                                                

 

In addition to the standard industry disclosures included in the Refco,
LLC Customer Account Agreement, you should be aware that  trading in futures contracts is considered a
risky form of investment. If you have pursued only conservative forms of
investment in the past, you may
wish to study futures and options trading further before continuing an
investment of this nature. You must realize that you could sustain a total loss
of all funds you deposit with your broker as initial margin as well as
substantial amounts of capital, including incurring liability for deficit
balances, when trading futures or granting options, should the market go
against your investment. You
must also realize that the limited risk in buying options means you could lose
the entire option investment should the position expire worthless.

 

If you wish to continue with your investment, you acknowledge that the
funds you have committed are purely risk capital and loss of  your investment will not jeopardize your
style of living nor will it detract from your future retirement program.
Additionally, you fully
understand the nature and risks of futures and options investments, and your
obligations to others will not be neglected should you suffer investment
losses.

 

 

	
   

  	
   

  	
   

  
	
  Print
  Name

  	
  Date 

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Authorized Signature

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print
  Name

  	
  Date 

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Authorized Signature

  	
   

  

 

16

 

NFA REGISTRATION EXEMPTION LETTER

 

	
  Refco,
  LLC 

  	
  Date:

  	
   

  
	
  550
  W. Jackson Blvd. 

  	
   

  
	
  Suite
  1300 

  	
  Account
  Name:

  	
   

  
	
  Chicago,
  IL 60661 

  	
   

  
	
   

  	
  Account
  Number:

  	
   

  
					

 

The undersigned represents, under penalty of perjury, that the above
designated account is exempt from registration with the National Futures
Association based upon the applicable explanation below. (Please check that
which applies)

 

                               The
account is solely a proprietary account of the above named entity and no funds
from customers or other third parties are deposited nor placed in said account.
Neither the above named entity nor any person on its behalf has solicited, nor
will solicit in the future, any person for the purpose of depositing funds in
said account. The undersigned agrees to notify, in writing, Refco, LLC (“Refco”)
in the event of any change in the representations contained herein. Further,
the undersigned acknowledges that Refco is relying on the representations
contained herein in regard to the manner in which Refco carries and treats the
above account.

 

                              The
Company has no presence in the United States (“U.S.”), the undersigned is not a
citizen or resident of the U.S., and the company does not have any branch
offices in the U.S.;

Shareholders or owners of the Company are solely foreign citizens (i.e.
individuals or entities who are both non-U.S. citizens and non-U.S. residents);

The source of the funds of the Company derive solely from non-U.S.
sources;

No solicitation will occur that is directed to U.S. citizens or
residents. No advertising of a form that can reasonably be expected to reach
persons residing within the U.S. will be used; AND

When the term U.S. is used above, it includes the fifty states and
territories or possessions of the U.S.

 

 

	
   

  	
   

  	
   

  
	
  Authorized Signature

  	
  Date 

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print
  Name

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Refco
  Approval

  	
  Date 

  

 

17

 

This Page left intentionally
blank.

 

18

 

	
  Form W-9 

  (Rev. January 2003) 

  Department of the Treasury 

  Internal Revenue Service

  	
  Request for
  Taxpayer 

  Identification Number and Certification

  	
  Give form to the 

  requester. Do not 

  send to the IRS.

  

 

Print or type

See Specific Instructions on back.

 

	
  Name

  
	
   

  
	
  Business name, if different from above.

  
	
   

  
	
  Check appropiate box:

  	
  o

  	
  Individual/Sole proprietor

  	
  o

  	
  Corporation

  	
  o

  	
  Partnership

  	
  o

  	
  Other

  	
  o

  	
  Exempt from backup withholding

  

 

	
  Address (number, street, and apt. or suite no.)

  	
   

  	
  Requester’s name and address (optional)

  
	
   

  	
   

  	
   

  
	
  City, state and ZIP code

  	
   

  
	
   

  	
   

  
	
  List account number(s) here (optional)

  
	
   

  

 

Part I      Taxpayer Identification Number (TIN)

 

	
  Enter your TIN in the
  appropriate box. For individuals, this is your social security number (SSN). However, for a resident alien, sole proprietor, or
  disregarded entity, see the Part I instructions on page 3. For
  other entities, it is your employer identification number (EIN). If you do
  not have a number, see How to get a TIN on
  back.

  	
   

  	
  Social
  security number

  
	
   

  	
   

  	
  or

  
	
  Note: If the account is in more than
  one name, see the chart on back for guidelines on whose number to enter.

  	
   

  	
  Employer
  identification number

  

 

Part II    Certification

 

Under penalties of perjury,
I certify that:

 

1.                    The number shown on this form is my correct
taxpayer identification number (or I am waiting for a number to be issued to
me), and

 

2.                    I am not subject to backup withholding
because: (a) I am exempt from
backup withholding, or (b) I have
not been notified by the Internal Revenue Service (IRS) that I am subject to
backup withholding as a result of a failure to report all interest or
dividends, or (c) the IRS has
notified me that I am no longer subject to backup withholding, and

 

3.                    I am a U.S. person (including a U.S. resident
alien).

 

Certification
instructions. You
must cross out item 2 above if you
have been notified by the IRS that you are currently subject to backup
withholding because you have failed to report all interest and dividends on
your tax return. For real estate transactions, item 2 does not apply. For mortgage
interest paid, acquisition or abandonment of secured property, cancellation of
debt, contributions to an individual retirement arrangement (IRA), and
generally, payments other than interest and dividends, you are not required to
sign the Certification, but you must provide your correct TIN. (See the
instructions back.)

 

	
  Sign

  	
  Signature of

  	
   

  
	
  Here

  	
  U.S. person  

  	
  Date 
  

  

 

Purpose of
Form

 

A
person who is required to file an information return with the IRS, must obtain
your correct taxpayer identification number (TIN) to report, for example,
income paid to you, real estate transactions, mortgage interest you paid,
acquisition or abandonment of secured property, cancellation of debt, or contributions
you made to an IRA.

 

U.S. person. Use Form W-9 only if you are a U.S. person (including a resident
alien), to provide your correct TIN to the person requesting it (the requester)
and, when applicable, to:

 

1. Certify that the TIN you are giving is correct (or you are waiting for
a number to be issued),

 

2. Certify that you are not subject to backup withholding, or

 

3. Claim exemption from backup withholding if you are a U.S. exempt payee.

 

Note: If a requester gives you a form
other than Form W-9 to request your TIN, you must use the requester’s form if
it is substantially similar to this Form W-9.

 

Foreign person. If you are a foreign person, use the appropriate Form W-8 (see Pub. 515, Withholding of Tax on Nonresident
Aliens and Foreign Entities).

 

Nonresident alien who becomes a resident alien. Generally, only a nonresident alien
individual may use the terms of a tax treaty to reduce or eliminate U.S. tax on
certain types of income. However, most tax treaties contain a provision known
as a “saving clause.” Exceptions specified in the saving clause may permit an exemption
from tax to continue for certain types of income even after the recipient has
otherwise become a U.S. resident alien for tax purposes.

 

If
you are a U.S. resident alien who is relying on an exception contained in the
saving clause of a tax treaty to claim an exemption from U.S. tax on certain
types of income, you must attach a statement that specifies the following five items:

 

1. The treaty country. Generally, this must be the same treaty under which
you claimed exemption from tax as a nonresident alien.

 

2. The treaty article addressing the income.

 

3. The article number (or location) in the tax treaty that contains the
saving clause and its exceptions.

 

4. The type and amount of income that qualifies for the exemption from
tax.

 

5. Sufficient facts to justify the exemption from tax under the terms of
the treaty article.

 

Example. Article
20 of the U.S.-China income tax treaty allows an exemption from tax for
scholarship income received by a Chinese student temporarily present in the
United States. Under U.S. law, this student will become a resident alien for tax
purposes if his or her stay in the United States exceeds 5 calendar years.
However, paragraph 2 of the first Protocol to the U.S.-China treaty (dated
April 30, 1984) allows the provisions of Article 20 to continue to apply even
after the Chinese student becomes a resident alien of the United States. A
Chinese student who qualifies for this exception (under paragraph 2 of the
first protocol) and is relying on this exception to claim an exemption from tax
on his or her scholarship or fellowship income would attach to Form W-9 a statement
that includes the information described above to support that exemption.

 

If
you are a nonresident alien or a foreign entity not subject to backup
withholding, give the requester the appropriate completed Form W-8.

 

What is backup withholding? Persons making certain payments to you must
under certain conditions withhold and pay to the IRS 30% of such payments (29% after December 31, 2003; 28% after December 31, 2005). This is called “backup
withholding.” Payments that may be subject to backup withholding include
interest, dividends, broker and barter exchange transactions, rents, royalties,
nonemployee pay, and certain payments from fishing boat operators. Real estate transactions
are not subject to backup withholding.

 

You
will not be subject to backup withholding on payments you
receive if you give the requester your correct TIN, make the proper
certifications, and report all your taxable interest and dividends on your tax
return.

 

Payments you receive will be subject to backup withholding
if:

 

1. You do not furnish your TIN to the requester, or

 

2. You do not certify your TIN when required (see the Part II instructions
on back for details), or

 

3. The IRS tells the requester that you furnished an incorrect TIN, or

 

4. The IRS tells you that you are subject to backup withholding because
you did not report all your interest and dividends on your tax return (for
reportable interest and dividends only), or

 

5. You do not certify to the requester that you are not subject to backup
withholding under 4 above (for
reportable interest and dividend accounts opened after 1983 only).

 

Certain
payees and payments are exempt from backup withholding. See the instructions
below and the separate Instructions for the
Requester of Form W-9.

 

Penalties

 

Failure to furnish TIN. If you fail to furnish your correct TIN to a
requester, you are subject to a penalty of $50 for each such failure unless
your failure is due to reasonable cause and not to willful neglect.

 

Civil penalty for false information with respect to withholding.
If you make a false statement with no reasonable basis that results
in no backup withholding, you are subject to a $500 penalty.

 

Criminal penalty for falsifying information. Willfully falsifying certifications or
affirmations may subject you to criminal penalties including fines and/or
imprisonment.

 

Misuse of TINs. If the requester discloses or uses TINs in violation of Federal law,
the requester may be subject to civil and criminal penalties. 

 

19

 

Specific Instructions 

Name 

 

If
you are an individual, you must generally enter the name shown on your social
security card. However, if you have changed your last name, for instance, due
to marriage without informing the Social Security Administration of the name
change, enter your first name, the last name shown on your social security
card, and your new last name.

 

If the account is in joint names, list first, and then
circle, the name of the person or entity whose number you entered in Part I of
the form.

 

Sole proprietor. Enter
your individual name as shown on
your social security card on the “Name” line. You may enter your business,
trade, or “doing business as (DBA)” name on the “Business name” line.

 

Limited liability company (LLC). If
you are a single-member LLC (including a foreign LLC with a domestic owner)
that is disregarded as an entity separate from its owner under Treasury
regulations section 301.7701-3, enter the
owner’s  name on the “Name” line. Enter
the LLC’s name on the “Business name” line.

 

Other entities. Enter
your business name as shown on required Federal tax documents on the “Name”
line. This name should match the name shown on the charter or other legal
document creating the entity. You may enter any business, trade, or DBA name on
the “Business name” line. 

 

Note: You
are requested to check the appropriate box for your status (individual/sole
proprietor corporation, etc.).

 

Exempt From Backup Withholding

 

If
you are exempt, enter your name as described above and check the appropriate
box for your status, then check the “Exempt from backup withholding” box in the
line following the business name, sign and date the form.

 

Generally, individuals (including sole proprietors) are not
exempt from backup withholding. Corporations are exempt from backup withholding
for certain payments, such as interest and dividends.

 

Note: If you are exempt from backup withholding, you should still complete
this form to avoid possible erroneous backup withholding.

 

Exempt payees. Backup
withholding is not required on any
payments made to the following payees:

 

1. An
organization exempt from tax under section 501(a), any IRA, or a custodial
account under section 403(b)(7) if the account satisfies the requirements of
section 401(f)(2);

 

2. The
United States or any of its agencies or instrumentalities;

 

3. A
state, the District of Columbia, a possession of the United States, or any of
their political subdivisions or instrumentalities;

 

4. A
foreign government or any of its political subdivisions, agencies, or
instrumentalities; or

 

5. An
international organization or any of its agencies or instrumentalities.

 

Other payees that may be
exempt from backup withholding include:

 

6. A
corporation;

 

7. A
foreign central bank of issue;

 

8. A
dealer in securities or commodities required to register in the United States,
the District of Columbia, or a possession of the United States;

 

9. A
futures commission merchant registered with the Commodity Futures Trading
Commission;

 

10. A
real estate investment trust;

 

11. An
entity registered at all times during the tax year under the Investment Company
Act of 1940;

 

12. A
common trust fund operated by a bank under section 584(a);

 

13. A
financial institution;

 

14. A
middleman known in the investment community as a nominee or custodian; or

 

15. A
trust exempt from tax under section 664 or described in section 4947.

 

The chart below shows types of payments that may be exempt
from backup withholding. The chart applies to the exempt recipients listed
above, 1 through 15. 

 

	
  If the payment is for . . .

  	
   

  	
  THEN the payment is exempt for . . .

  
	
   

  	
   

  	
   

  
	
  Interest and dividend payments

  	
   

  	
  All exempt recipients except for 9

  
	
   

  	
   

  	
   

  
	
  Broker transactions

  	
   

  	
  Exempt recipients 1 through
  13. Also, a person registered
  under the Investment Advisers Act of 1940 who regularly acts as a broker

  
	
   

  	
   

  	
   

  
	
  Barter exchange transactions and patronage dividends

  	
   

  	
  Exempt recipients 1 through
  5

  
	
   

  	
   

  	
   

  
	
  Payments over $600 required to be reported and direct sales
  over $5,000 (1)

  	
   

  	
  Generally, exempt recipients 1 through 7 (2)

  

 

(1)
See Form 1099-MISC, Miscellaneous
Income, and its instructions.

 

(2)
However, the following payments made to a corporation (including gross proceeds
paid to an attorney under section 6045(f), even if the attorney is a
corporation) and reportable on Form 1099-MISC are not exempt from backup withholding: medical and health care
payments, attorneys’ fees; and payments for services paid by a Federal
executive agency.

 

Part I. Taxpayer Identification Number (TIN)

 

Enter your TIN in the appropriate box. If
you are a resident  alien and you do not have and are not
eligible to get an SSN, your TIN is your IRS individual taxpayer identification
number (ITIN). Enter it in the social security number box. If you do not have
an ITIN, see How to get a TIN below.

 

If you are a sole
proprietor and you have an EIN, you may enter either your SSN or
EIN. However, the IRS prefers that you use your SSN.

 

If
you are a single-owner LLC that is
disregarded as an entity separate from its owner (see Limited liability company (LLC)), enter
your SSN (or EIN, if you have one). If the LLC is a corporation, partnership,
etc., enter the entity’s EIN.

 

Note: See the chart for further clarification of name and TIN combinations.

 

How to get a TIN. If
you do not have a TIN, apply for one immediately. To apply for an SSN, get Form SS-5, Application for a Social
Security Card, from your local Social Security Administration office or get
this form on-line at www.ssa.gov/online/sss.html.
You may also get this form by calling 1-800-772-1213. Use Form W-7, Application for IRS Individual
Taxpayer Identification Number, to apply for an ITIN, or Form SS-4, Application for Employer
Identification Number, to apply for an EIN. You can get Forms W-7 and SS-4 from
the IRS by calling 1-800-TAX-FORM (1-800-829-3676) or from the IRS Web Site at www.irs.gov.

 

If you are asked to complete Form W-9 but do not have a TIN,
write “Applied For” in the space for the TIN, sign and date the form, and give
it to the requester. For interest and dividend payments, and certain payments
made with respect to readily tradable instruments, generally you will have 60
days to get a TIN and give it to the requester before you are subject to backup
withholding on payments. The 60-day rule does not apply to other types of
payments. You will be subject to backup withholding on all such payments until
you provide your TIN to the requester.

 

Note: Writing
“Applied For” means that you have already applied for a TIN or that you intend to apply for one soon.

Caution: A disregarded domestic entity that has a foreign owner must use the
appropriate Form W-8.

 

Part II. Certification

 

To
establish to the withholding agent that you are a U.S. person, or resident alien,
sign Form W-9. You may be requested to sign by the withholding agent even if
items 1, 3, and 5 below indicate otherwise.

 

For
a joint account, only the person whose TIN is shown in Part I should sign (when
required). Exempt recipients, see Exempt from
backup withholding.

 

Signature requirements. Complete
the certification as indicated in 1 through
5 below.

 

1. Interest, dividend, and barter exchange
accounts opened before 1984 and broker accounts considered
active during 1983. You must give
your correct TIN, but you do not have to sign the certification.

 

2. Interest, dividend, broker, and barter
exchange accounts opened after 1983 and broker accounts
considered inactive during 1983. You
must sign the certification or backup withholding will apply. If you are
subject to backup withholding and you are merely providing your correct TIN to
the requester, you must cross out item 2 in
the certification before signing the form.

 

3. Real estate transactions. You
must sign the certification. You may cross out item 2 of the certification.

 

4. Other payments. You
must give your correct TIN, but you do not have to sign the certification
unless you have been notified that you have previously given an incorrect TIN.
“Other payments” include payments made in the course of the requester’s trade
or business for rents, royalties, goods (other than bills for merchandise),
medical and health care services (including payments to corporations), payments
to a nonemployee for services, payments to certain fishing boat crew members
and fishermen, and gross proceeds paid to attorneys (including payments to
corporations).

 

5. Mortgage interest paid by you,
acquisition or abandonment of secured property, cancellation of debt,
qualified tuition program payments (under
section 529),  IRA or Archer MSA
contributions or distributions, and  pension distributions. You must give your correct TIN, but you
do not have to sign the certification.

 

What Name and Number To Give the Requester 

 

	
  For this type of account:

  	
   

  	
  Give name and SSN of:

  
	
   

  	
   

  	
   

  
	
  1. Individual

  	
   

  	
  The individual

  
	
   

  	
   

  	
   

  
	
  2. Two or more individuals (joint account)

  	
   

  	
  The actual owner of the account or, if combined funds, the
  first individual on the account

  
	
   

  	
   

  	
   

  
	
  3. Custodian account of a minor (Uniform Gift to Minors Act)

  	
   

  	
  The minor (2)

  
	
   

  	
   

  	
   

  
	
  4.

  	
  a. The usual revocable
  savings trust (grantor is also trustee)

   

  b. So-called trust
  account that is not a legal or valid trust under state law

  	
   

  	
  The grantor-trustee (1)

   

   

  The actual owner (1)

  
	
   

  	
   

  	
   

  	
   

  
	
  5. Sole proprietorship or single-owner LLC

  	
   

  	
  The owner (3)

  
	
   

  	
   

  	
   

  
	
  For this type of account:

  	
   

  	
  Give name and EIN of:

  
	
   

  	
   

  	
   

  
	
  6. Sole proprietorship or single-owner LLC

  	
   

  	
  The owner (3)

  
	
   

  	
   

  	
   

  
	
  7. A valid trust, estate, or pension trust

  	
   

  	
  Legal entity (4)

  
	
   

  	
   

  	
   

  
	
  8. Corporate or LLC electing corporate status on Form 8832

  	
   

  	
  The corporation

  
	
   

  	
   

  	
   

  
	
  9. Association, club, religious, charitable, educational, or
  other tax-exempt organization

  	
   

  	
  The organization

  
	
   

  	
   

  	
   

  
	
  10. Partnership or multi-member LLC

  	
   

  	
  The partnership

  
	
   

  	
   

  	
   

  
	
  11. A broker or registered nominee

  	
   

  	
  The broker or nominee

  
	
   

  	
   

  	
   

  
	
  12. Account with the Department of Agriculture in the name of a
  public entity (such as a state or local government, school district, or
  prison) that receives agricultural program payments

  	
   

  	
  The public entity

  

 

(1) List first and circle
the name of the person whose number you furnish. If only one person on a joint
account has an SSN, that person’s number must be furnished.

 

(2) Circle the minor’s name
and furnish the minor’s SSN.

 

(3) You must show your individual name, but you
may also enter your business or “DBA” name. You may use either your SSN or EIN
(if you have one).

 

(4) List first and circle
the name of the legal trust, estate, or pension trust. (Do not furnish the TIN
of the personal representative or trustee unless the legal entity itself is not
designated in the account title.)

 

Note: If no name is circled when more
than one name is listed, the number will be considered to be that of the first
name listed.

 

Privacy Act
Notice

 

Section 6109 of the Internal
Revenue Code requires you to provide your correct TIN to persons who must file
information returns with the IRS to report interest, dividends, and certain
other income paid to you, mortgage interest you paid, the acquisition or
abandonment of secured property, cancellation of debt, or contributions you made
to an IRA or Archer MSA. The IRS uses the numbers for identification purposes
and to help verify the accuracy of your tax return. The IRS may also provide
this information to the Department of Justice for civil and criminal
litigation, and to cities, states, and the District of Columbia to carry out
their tax laws. We may also disclose this information to other countries under
a tax treaty, or to Federal and state agencies to enforce Federal nontax
criminal laws and to combat terrorism.

 

You must provide your TIN
whether or not you are required to file a tax return. Payers must generally
withhold 30% of taxable interest, dividend, and certain other payments to a
payee who does not give a TIN to a payer. Certain penalties may also apply.

 

20

 

HEDGE ACCOUNT REPRESENTATION 

 

(To Be Completed by Bona Fide Hedgers Only)

 

Unless
specified in writing to the contrary, all orders for the purchase or sale of
the following futures contracts for Customer’s account will represent “hedging”
transactions and positions as defined in Commodity Futures Trading Commission
Regulation 1.3(z) (reprinted on page 16) as such regulation currently exists or
may hereafter be amended:

 

 

 

If
orders are given for the purchase or sale of futures contracts that do not meet
the definition of “hedging,” Customer shall advise Refco in writing to that
effect and will keep these and other contracts margined as required by Refco
and the applicable contract market rules. In the unlikely event of Refco’s
insolvency, open contracts held in Customer’s hedge account should be handled
as follows:

 

	
   

  	
   

  	
   

  	
  liquidated by the bankruptcy trustee without seeking
  further instructions from Customer or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  seek
  further instructions from Customer regarding liquidation or transfer.

  

 

These
directions shall remain in effect until revoked in writing. Without limiting
the provisions of the Customer Agreement, Customer acknowledges that all hedge
transactions shall be subject to applicable rules, regulations, and interpretations
of the contract market where such transactions are executed, including without
limitation prior contract market approval to exceed speculative limits and the
submission of supporting documentation.

 

 

	
   

  	
   

  	
   

  
	
  Authorized Signature

  	
   

  	
  Authorized Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Print Name

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
  Date

  

 

21

 

CFTC
REGULATION 1.3 (z) BONA FIDE HEDGING TRANSACTIONS AND POSITIONS.

 

(1) General
Definition. Bona Fide
hedging transactions and positions shall mean transactions or positions in a
contract for future delivery on any contract market, where such transactions or
positions normally represent a substitute for transactions to be made or
positions to be taken at a later time in a physical marketing channel, and
where they are economically appropriate to the reduction of risks in the
conduct and management of a commercial enterprise, and where they arise from:

 

(i)            The potential change in the value of assets
which a person owns, produces, manufactures, processes, or merchandises or
anticipates owning, producing, manufacturing, processing, or merchandising,

 

(ii)           The potential change in the value of
liabilities which a person owes or anticipates incurring, or

 

(iii)          The potential change in the value of services
which a person provides, purchases or anticipates providing or purchasing.
Notwithstanding the foregoing, no transactions or positions shall be classified
as bona fide hedging for purposes of section 4a of the Act unless their purpose
is to offset price risks incidental to commercial cash or spot operations and
such positions are established and liquidated in an orderly manner in
accordance with sound commercial practices and unless the provisions of
paragraphs (z) (2) and (3) of this section and sections 1.47 and 1.48 of the
regulations have been satisfied.

 

(2)
Enumerated Hedging Transactions. The definition of bone fide hedging transactions and positions in
paragraph (1) of this section includes, but is not limited to, the following
specific transactions and positions:

 

(I)           Sales of
any commodity for future delivery on a contract market which do not exceed in
quantity:

 

	
   

  	
  (A)

  	
  Ownership or fixed-price
  purchase of the same cash commodity by the same person; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (B)

  	
  Twelve months’ unsold
  anticipated production of the same commodity by the same person provided that
  no such position is maintained in any future during the five last trading
  days of that future.

  

 

(ii)          Purchases of any commodity for future delivery on a
contract market which do not exceed in quantity:

 

	
   

  	
  (A)

  	
  The fixed-price sale of
  the same cash commodity by the same person;

  
	
   

  	
   

  	
   

  
	
   

  	
  (B)

  	
  The quantity equivalent of
  fixed-price sales of the cash products and by-products of such commodity by
  the same person; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (C)

  	
  Twelve months’ unfilled
  anticipated requirements of the same cash commodity for processing,
  manufacturing, or feeding by the same person, provided that such transactions
  and positions in the five last trading days of any one future do not exceed
  the person’s unfilled anticipated requirements of the same cash commodity for
  that month and for the next succeeding month.

  

 

(iii)          Offsetting sales and purchases for future
delivery on a contract market which do not exceed in quantity that amount of
the same cash commodity which has been bought and sold by the same person at
unfixed prices basis different delivery months of the contract market, provided
that no such position is maintained in any future during the five last trading
days of that future.

 

(iv)          Sales and purchases for future delivery
described in paragraphs z (2) (i), z (2) (ii), and z (2) (iii) of this section
may also be offset other than by the same quantity of the same cash commodity,
provided that the fluctuations in value of the position for future delivery are
substantially related to the fluctuations in value of the actual or anticipated
cash position, and provided that the positions in any one future shall not be
maintained during the five last trading days of that future.

 

(3)
Non-Enumerated Cases. Upon
specific request made in accordance with section 1.47 of the regulations, the
Commission may recognize transactions and positions other than those enumerated
in paragraph (2) of this section as bone fide hedging in such amounts and under
such terms and conditions as it may specify in accordance with the provisions
of Regulation 1.47. Such transactions and positions may include, but are not
limited to, purchases or sales for future delivery on any contract market by an
agent who does not own or who has not contracted to sell or purchase the
offsetting cash commodity at a fixed price, provided
that the person is responsible for the merchandising of the cash
position which is being offset.

 

22

 

CONSENT –
DELIVERY OF STATEMENTS BY ELECTRONIC MEDIA

 

You may choose to receive
your customer account statements (monthly and daily statements) by e-mail or
internet access. If you request a hard copy of any of the customer statements
there may be an additional charge.

 

You acknowledge your statement
is deemed received when made available to you by Refco, regardless of whether
you actually accessed the statement. You also
acknowledge that you are responsible for alerting Refco to any change in your
e-mail address and completing a new consent form with the new  information.

 

This consent shall be
effective until revoked by you in writing and received by Refco at 550 West
Jackson Boulevard, Chicago, IL 60661. By your signature below, you represent
that the delivery and execution of this consent has been duly authorized and
are within your powers. 

 

Please
check one:

 

	
   

  	
  o

  	
   

  	
   

  
	
   

  	
   

  	
  E-Mail Address

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
   

  	
   

  
	
   

  	
   

  	
  Internet Access – Contact
  Client Services at (312) 788-2300

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
   

  	
   

  
	
   

  	
   

  	
  This is an e-mail address
  change notice- Previous E-mail address

  Please fax this change to: 312-756-3461

  

 

 

	
   

  	
   

  	
   

  
	
  Authorized Signature

  	
   

  	
  Authorized Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Print Name

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Account Number, if assigned

  	
   

  	
  Phone Number

  

 

23

 

REFCO
ONLINE SERVICES AND ELECTRONIC TRADING AGREEMENT

 

IMPORTANT! ANY PERSON OR
ORGANIZATION ACCESSING OR ATTEMPTING TO ACCESS THE ONLINE OR ELECTRONIC TRADING
SERVICES OF REFCO GROUP LTD., LLC OR ITS AFFILIATES (COLLECTIVELY REFERRED TO
HEREIN AS “REFCO”) MUST FIRST AGREE TO THE TERMS OF THIS AGREEMENT. SUCH
SERVICES SHALL INCLUDE ALL STATEMENT REVIEWS, NEW ACCOUNT ORIGINATION, INTERNET
TRADING AND ELECTRONIC ORDER ENTRY AND REPORTS, MARKET, TRADING AND GENERAL
INFORMATION, INCLUDING QUOTES, CHARTS, NEWS, AND SYSTEM INFORMATION, ALL CLEARING
AND BACK OFFICE FUNCTIONS AND SERVICES, ALL SOFTWARE PROVIDED BY REFCO TO USER
(“SOFTWARE”), THE REFCO WEB SITE, AS WELL AS ANY OTHER SERVICES THAT MAY BE
ADDED FROM TIME TO TIME (“COLLECTIVELY REFERRED TO HEREIN AS “THE SYSTEM”).
THIS AGREEMENT SHALL APPLY TO ANY PERSON OR ORGANIZATION WHO ACCESSES OR
ATTEMPTS TO ACCESS THE SYSTEM, AS WELL AS ANY PERSON OR ORGANIZATION WHO
BENEFITS FROM SUCH USE, INCLUDING BUT NOT LIMITED TO, USERS WHO BENEFIT FROM
THE USE OF THE SYSTEM BY BROKERS ACTING ON THEIR BEHALF (“USER”). ALL LIMITATIONS
OF LIABILITY AND DISCLAIMERS CONTAINED HEREIN SHALL APPLY TO THE SYSTEM REGARDLESS
OF WHETHER OR NOT THE SYSTEM, OR ANY PART THEREOF, WAS DEVELOPED OR IS SERVICED
OR SUPPORTED BY REFCO. USE OF THE SYSTEM, OR USER’S SIGNED ACKNOWLEDGEMENT, INDICATES
USER’S UNQUALIFIED ACCEPTANCE OF ALL OF THE TERMS OF THIS AGREEMENT. IF USER FINDS
THIS AGREEMENT UNACCEPTABLE, IT SHALL NOT USE THE SYSTEM. REFCO IS WILLING TO PROVIDE
THE SYSTEM TO USER ONLY IF USER AGREES TO BE BOUND BY THE FOLLOWING TERMS.

 

1. Some of the information available on the
System will be provided by Refco, and some will be provided by various independent
sources (“Information Providers”). User acknowledges that the accuracy,
completeness, timeliness, and correct sequencing of the information concerning
User’s trading and account activity, the quotes, market and trading news,
charts, trading analysis and strategies, and other information that may be
added from time to time (collectively referred to as the “Information”), is not
guaranteed by either Refco or the Information Providers. User agrees that in no
event shall Refco, any of its affiliates, or the Information Providers, have
any liability for the accuracy, completeness, timeliness or correct sequencing
of the Information, or for any decision made or taken by User in reliance upon
the Information or the System, or for any interruption of any Information
provided by the System, or for any aspect of the System. In addition, some of
the Information may be supplied by exchanges through Information Providers, and
this material is for informational purposes only. The exchanges do not represent
that the Information selected for display is comprehensive, complete, certified
or accurate; do not intend to, and do not, in any country, directly or
indirectly, solicit business or offer any contract to any person through the medium
of this Information; or accept any responsibility or liability for enabling the
user to link to another site on the World Wide Web, for the contents of any
other site, or for any consequence which results from acting upon the contents
of another site.

 

2. User understands that technical problems or
other conditions may delay or prevent User from entering or canceling an order
on the System, or likewise may delay or prevent Refco from executing or
clearing an order on the System. Neither Refco, nor any of its affiliates,
shall be liable for, and User agrees not to hold or seek to hold Refco, or any of
its affiliates, liable for, any technical problems, system failures and
malfunctions, communication line failures, equipment or software failures and
malfunctions, system access issues, system capacity issues, high Internet
traffic demand or other Internet related problems, security breaches, theft and
other unauthorized access, and any other similar computer problems and defects,
as well as severe weather, earthquakes, floods and strikes or other labor
problems in connection with the use or attempted use of the System. Refco does
not represent, warrant or guarantee that User will be able to access or use the
System at times or locations of User’s choosing, or that Refco will have
adequate capacity for the System as a whole or in any particular geographic
location. Refco does not represent, warrant or guarantee that the System will
provide uninterrupted and error free service. Refco does not make any
warranties or guarantees, express or implied, with respect to the System or its
content, including without limitation, warranties of quiet enjoyment, noninfringement,
title, merchantability or fitness for a particular purpose, and merchantability
for computer problems and for informational content. Refco does not guarantee
or warrant that the System will be free from infection, viruses, worms, trojan
horses or other code that manifest contaminating or destructive properties.
Neither Refco, nor any of its affiliates, shall be liable to User for any loss,
cost, damage or other injury, whether in contract or tort, arising out of or
caused in whole or in part by Refco’s or User’s use of, or reliance on, the
System or its content, or in otherwise performing its obligations under or in
connection with this Agreement. In no event will Refco, or any of its
affiliates, be liable to User or any third party for any punitive,
consequential, incidental, special, indirect (including lost profits and
trading losses and damages) or similar damages, even if advised of the
possibility of such

 

24

 

damage. If some
jurisdictions do not allow the exclusion or limitation of liability for certain
damages, in such jurisdictions the liability of Refco shall be limited in
accordance with this Agreement to the extent permitted by law. Refco reserves
the right to suspend service and deny access to the System without prior notice
during scheduled or unscheduled system maintenance or upgrading.

 

3. User acknowledges that all orders placed
through the System are at User’s sole risk. User further acknowledges that User’s
orders may be sent directly to the trading floors of the various exchanges (or
to an electronic trading system, if applicable), that there may be minimum
equity requirements and limits set by each contract as to the maximum number of
allowable contracts for orders processed through the System, that current
limits are subject to change, that contingency orders may not be accepted, and
that the online direct order placement service may be suspended on a contract’s
last trading day. User understands that orders that it sends directly to the
trading floors or an electronic trading system may be reviewed by an order
desk, and if User fails to meet the requirements, User’s order may be refused.
User further understands that it may be restricted from use of or refused access
to the System at any time, and that Refco reserves the right to require a
margin deposit prior to the execution of any order placed through the System,
or as otherwise required by Refco’s margin policy. In the event that there is a
restriction on User’s account, or that User fails to make a margin deposit as
required, neither Refco, nor any of its affiliates, shall be responsible for
any delay or failure to provide the System, including the ability to execute an
order.

 

4. Although the System may provide access to
numerous recommendations about how to invest and what to buy, none of these
recommendations shall be deemed to be endorsed by Refco. Refco does not
recommend any investment advisory service or product, nor does Refco offer any
advice regarding the nature, potential value, or suitability of any particular transaction
or investment strategy. NOTHING IN THIS AGREEMENT SHOULD BE CONSTRUED AS A SOLICITATION
OR RECOMMENDATION TO BUY OR SELL ANY INSTRUMENT OR ENGAGE IN ANY TRANSACTION.

 

5. (a) Upon approval of User’s account, Refco will
provide User with an individual password and user identification code (“Access
Codes”). The Access Codes are intended to enable User to access User’s account
and to enter buy and sell orders for User’s account through the System, and therefore,
User must maintain the confidentiality, and prevent the unauthorized use, of
the Access Codes at all times. User accepts full responsibility for the use and
protection of the Access Codes, which includes, but is not limited to, all
orders entered into the System using the Access Codes and changes in User
account information that are entered through use of the Access Codes. User
hereby authorizes Refco and any party claiming through Refco to rely upon any
information or instructions set forth in any data transmission using the assigned
Access Codes, without making further investigation or inquiry, and regardless
of the actual identity of the individual transmitting the same, in connection
with the operation of the System.

 

(b) User accepts full responsibility for
monitoring User’s account(s) with Refco. In the event that User becomes aware of
any loss, theft or unauthorized use of User’s Access Codes, User shall notify
Refco IMMEDIATELY. In addition, User shall notify Refco IMMEDIATELY upon
discovering that User has failed to receive any statement, confirmation or
other communication from Refco. Such notifications shall be made to Refco’s
Compliance Officer at Refco’s office in Chicago, Illinois, via e-mail, or phone
at

312-788-2050.

 

(c) Refco grants to User, and User accepts from
Refco, a non-exclusive and non-transferable license to use the System solely
for the purposes provided herein and subject to any other agreements in effect
between User and Refco. User agrees that it shall take reasonable steps to
protect, and shall not use, publish or disseminate, the information made available
or accessible through the use of the System, including without limitation the
Information, Access Codes, and Software, using methods at least substantially
equivalent to the steps it takes to protect its own proprietary information, but
not less than a reasonable standard, during the term of this Agreement and for
a period of five (5) years following the expiration, termination,
discontinuance or cancellation of this Agreement and shall prevent the
duplication or disclosure of such information, other than by or to its
employees who must have access to the information to perform User’s obligations
hereunder, provided that User shall make such employees aware of the restrictions
of this Section 5 and provided that User shall be solely responsible for such
information. Any and all materials that Refco provides to User in connection with
the System, including without limitation all Information, Access Codes, and
Software, together with all modifications and revisions thereto, and all
copyrights, trademarks, patents, trade secret rights and other intellectual and
proprietary rights, title and interest relating thereto are the property of
Refco, Refco’s licensors, its successors and assigns, the Information Providers,
or other third parties, and are intended for User’s sole and individual use.
User shall not reproduce, modify, prepare derivative works of, retransmit,
disseminate, sell or distribute such materials in any manner without the
express written consent of both Refco and the relevant owner. In addition, User
shall not permit any other person access to the System. User further agrees not
to delete any copyright

 

25

 

notices or other indications
of protected intellectual property rights from materials that User prints or
downloads from the System. All such materials are provided “AS IS”, without any
warranty of any kind, whether express or implied, including warranties of
merchantability, fitness for a particular purpose, noninfringement and title.

 

(d) User agrees that its use of the System is at
User’s own risk. User shall be responsible for providing and maintaining the means
by which it accesses the System, which may include, without limitation,
personal computer, modem and telephone, or other access line. User shall be
responsible for all access and services fees necessary to connect to the System
and assumes all charges incurred in accessing the System. User further assumes all
risks associated with the use and storage of information on User’s personal
computer.

 

(e) User hereby assumes sole responsibility and
liability for the accuracy and adequacy of information entered in connection
with the use of the System. User shall indemnify and hold harmless Refco and
its affiliates from any and all consequential, incidental, special, punitive,
or indirect damages (including lost profits, trading losses and damages) resulting
from, arising out of or relating to such information, whether authorized or
unauthorized. In the event any inaccurate, incomplete or incorrect information
relating to User is communicated to Refco, whether or not through the System,
or in the event the User determines that the System includes inaccurate,
incomplete or incorrect information relating to User, User covenants that it
shall notify Refco IMMEDIATELY, at Refco’s office in Chicago, Illinois, via e-mail,
or phone at 312-788-2050. User also covenants that it shall notify Refco
IMMEDIATELY, as provided herein, if (a) an order has been placed through the
System and User has not received an order number; (b) an order has been placed through
the System and User has not received an accurate acknowledgement (whether
through hard copy, electronic, or oral means) of the order or of its execution;
or (c) User has received acknowledgement (whether through hard copy, electronic
or oral means) of an execution for any order which User did not place; or any
other conflict similar to those stated herein. User agrees and acknowledges
that Refco shall be entitled to rely upon any oral, written or electronic communications,
whether in tangible or intangible form, received from User, including from any
of User’s officers, partners, principals or employees.

 

(f) User hereby covenants and agrees that User:

 

(i)            shall
use the System only for the purpose of placing orders for futures contracts and
options thereon, receiving fills and for receiving on-line User statement reviews
and new User account origination. In addition, User shall not directly or
indirectly transact any business using the System with any of its affiliates;
including, without limitation, accepting or countering any offer made by any of
its affiliates; and in connection therewith, User agrees that Refco may take
actions, determined in its sole discretion, to prevent such transactions from
occurring (but no such actions by Refco shall relieve User of its obligations
as described in this sentence);

 

(ii)        shall
perform the obligations arising in connection with any transaction completed
using the System, in accordance with the terms and conditions of such completed
transaction.

 

6. User agrees to indemnify and hold Refco, its
affiliates, and the Information Providers harmless from and against any and all
claims, demands, proceedings, suits and actions, as well as all losses,
liabilities, damages, costs and expenses (including but not limited to
attorneys’ fees) suffered by Refco, resulting from or relating any claims,
proceedings, suits and actions against Refco arising from User’s violation of
this Agreement or any third party’s rights, including but not limited to copyright,
proprietary and privacy rights. Refco shall have the exclusive right to defend,
settle or compromise any claim or demand instituted by any third party against
Refco, or against Refco and User, arising out of User’s breach of this Agreement.
User hereby waives any and all rights User may have independently to defend,
settle or compromise any such claims or demands and agrees to cooperate to the
best of User’s ability with Refco with respect thereto, but Refco may, in its
sole discretion, authorize and require User to defend, settle or compromise any
such claim or demand as it deems to be appropriate at User’s cost, expense and
liability.

This indemnification and
hold-harmless obligation shall survive the termination of this Agreement.

 

7. Refco reserves the right to terminate User’s
access to the System in its sole discretion, without notice and without limitation,
for any reason whatsoever, including but not limited to, the unauthorized use
of User’s Access Codes and/or account number(s), breach of this Agreement, or
breach or termination of any agreements User has entered into with Refco. Upon
termination, cancellation or discontinuance of this Agreement, all rights
granted in this Agreement will terminate immediately and revert back to Refco,
and User shall discontinue use of the System, and if applicalbe, shall return
or destroy, as requested by Refco, all software (including all copies thereof).

 

8. User agrees to pay all subscription, service,
and user fees, if any, and commissions, for any orders executed through the System,
and agrees that such fees may be changed without

 

26

 

notice. User agrees to pay
all costs (including attorneys’ fees), if any, incurred by Refco in collecting
overdue fees from User.

 

9. This Agreement is made in User’s personal
capacity and not on behalf of any firm, corporation, or other entity, unless User’s
account is designated as such. User agrees to use the Information solely in
connection with User’s investment activities and not in connection with any
trade or business activities.

 

10. All express or implied conditions, warranties
or undertakings, whether oral or in writing, in law or in fact, including
warranties as to satisfactory quality and fitness for a particular purpose,
regarding the Information or any aspect of the System (including but not
limited to Information access and order execution), are excluded to the extent
permitted by law.

 

11. User agrees that Refco may hold and process,
by computer or otherwise, any information it obtains pertaining to User as a result
of User’s use of the System (“Personal Data”), and Refco may access and use
such information for operational purposes, credit assessment, statistical,
including behavioral analysis, and to identify and provide User with
information concerning products and services (including those supplied by third
parties) which may be of interest to User or Refco. User agrees that Refco may
disclose Personal Data to licensed credit reference agencies and to any of
Refco’s subcontractors, agents or Information Providers where necessary to
provide User with the Service, or in the event that Refco has the right or duty
to disclose or is otherwise permitted or compelled to do so by law. Personal
Data will be deleted from the System as soon as is reasonably possible after
User ceases to use the System, subject to applicable record keeping
requirements. User’s Personal Data may be electronically transmitted or transferred
throughout the world. User may inspect its Personal Data, and have incomplete
or inaccurate information rectified. These companies acting on our behalf are
required to keep your personal information confidential.

 

12. By either signing this Agreement, or using
the System, User represents that it has read and understands the foregoing terms
and conditions, and that User agrees to be bound by them. This Agreement
supplements any other agreements User has entered into with Refco. If any
provision of this Agreement is invalid or unenforceable under applicable law, such
provision shall be, to that extent, deemed omitted, and the remaining
provisions shall continue in full force and effect. This Agreement and
performance hereunder will be governed by and construed in accordance with the
internal laws of the State of Illinois, including conflict of laws principles.
The terms and conditions of this Agreement shall remain in full force and
effect and shall survive termination, discontinuance or cancellation of this
Agreement. Refco may modify the System or change the terms of this Agreement,
in whole or in part, upon notice through the System, electronically and/or in writing.

 

 

Refco account number (if
assigned)

 

 

	
   

  	
   

  	
   

  
	
  Authorized Signature

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Phone Number

  	
   

  	
  Date

  

 

27

 

Transferring an existing
trading account is easy. Just complete this External Transfer form. We’ll take
care of the rest.

 

EXTERNAL
TRANSFER

 

	
  Date Sent:

  	
   

  	
   

  

 

	
  TO:

  	
  TRANSFERRING FIRM

  	
   

  	
  RECEIVING FIRM

  
	
   

  	
  (Name & address of firm from which you are
  transferring)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Refco, LLC

  
	
   

  	
   

  	
   

  	
   

  	
  550 West Jackson Blvd., Suite 1300

  
	
   

  	
   

  	
   

  	
   

  	
  Chicago, IL 60661

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

Please be advised that I hereby
direct you to transfer my account balances, margin and open futures contracts
to Refco, LLC. Accordingly, this letter will serve as a direction to you to
close my account(s) with your company and to wire funds (including U.S.
Treasury Bills), representing the net available amount in each of my accounts
(regulated and non-regulated) as of the market close on this date.

 

Of:           (All information requested below refers to
account at firm from which you are transferring.)

 

	
  Account Name

  	
   

  
	
   

  
	
  Account Number

  	
   

  
	
   

  
	
  Account Address

  	
   

  
	
   

  
	
  City

  	
   

  	
   

  	
  State

  	
   

  	
   

  	
  Zip

  	
   

  	
   

  	
  Country

  	
   

  
														

 

In addition, I direct you to
transfer all open futures contracts to Refco, LLC, including the margin held
for my open positions with your firm as of the market close on this date.

 

 

	
   

  	
   

  	
   

  
	
  Authorized Signature

  	
   

  	
  Authorized Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name/Title of Authorized
  Signatory

  	
   

  	
  Name/Title of Authorized
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
  Date

  

 

28

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