TERMS AND CONDITIONS - TRADING

The following terms and conditions ("Terms and Conditions") shall govern the general relationship between HGC and its clients (hereafter the "Client"), in relation to the trading of all trading of all Commodities by the Client through the Trading Account opened by the Client with HGC (the "Account").

1. Interpretation

Unless the context otherwise requires or unless otherwise defined in these terms governing the Account, words and expressions shall have the same respective meanings that are ascribed to them in HGC’s General Terms and Conditions.

2. Brokerage, fees and expenses

2.1 The Client hereby agrees and undertakes to pay to HGC all sums due on any transactions together with brokerage, contract stamp, clearing fees, goods and services tax and any other fees and duties which may be payable in relation to the transactions which HGC may effect from time to time at the Client’s request at such rate as may be determined by HGC from time to time and notified to the Client, including legal fees (on a full indemnity basis) incurred by HGC in the enforcement of any of the Client’s obligations and liabilities hereunder.

2.2 The Client agrees and undertakes to pay to HGC applicable premiums, commission charges, delivery charges, storage charges, service fees, fees and duties, including legal fee (on a full indemnity basis) relating to this Agreement or any Commodity and other charges as HGC shall establish from time to time and the amount of any deficit balances in the Client’s account. The Client shall pay the full amount of any such charges, fees, duties, deficit balances and interest due and shall bear any withholding tax on such amount.

3. Investment decisions and market information

3.1 The Client confirms that all instructions to HGC are orders placed upon the Client’s independent judgement and without any reliance on any investment advice from HGC.

3.2 Commodity information, all price quotations, settlement prices or trade reports given to the Client are subject to changes and errors as well as delays in reporting and the Client acknowledges that reliance upon such information is at the Client’s own risk. The Client further agrees that the Client will in no way hold HGC responsible for any losses incurred through following HGC’s trading recommendations or suggestions since the Client must make all final decisions. The Client understands and agrees that the Client is bound by the actual executions of transactions on the Markets and that HGC is not bound by erroneous reports of executions transmitted.

3.3 The Client agrees that:

(a) any market or Commodity recommendations or information communicated to the Client by HGC although based upon information obtained from sources believed by HGC to be reliable, are opinions only, and may be inaccurate, incomplete and unverified; and

(b) HGC makes no representation, warranty or guarantee as to, and shall not be responsible for, the accuracy or completeness of, or the Client’s reliance upon any such recommendations or information. The Client acknowledges and agrees that HGC’s affiliates or representatives may have a position in and may intent to buy or sell commodities and that the market position of HGC or any such affiliate or representative may or may not be consistent with the recommendations furnished to the Client by HGC.

4. Limits and Margins

4.1 The Client shall not exceed the limits (including position and trading limits) set by HGC from time to time and notified in writing or orally. The Client shall also not exceed the limits (including position and trading limits) set by any relevant governmental bodies or agencies or Markets.

4.2 The Client agrees that the Client shall be solely responsible for complying with any position or trading limit set by any relevant governmental bodies or agencies or Markets and for being familiar with and keeping informed of all such positions or trading limits.

4.3 The Client undertakes and represents that he will keep himself informed of his outstanding positions (if any) at all times and that the onus of monitoring any position rests upon the Client.

4.4 The Client shall at all times maintain with HGC such margin as HGC may at its sole and absolute discretion from time to time notify in writing or orally. Such margin may exceed the requirements set by any relevant Market. HGC may in its sole and absolute discretion change margin requirements at any time, and margin requirements once established may apply to existing positions as well as to new positions.

4.5 Without prejudice to Clause 4.4, the Client shall pay and/or deliver to HGC on demand orally or in writing without protest or conditions any such margin and/or properties as may be required by HGC or by the relevant Market or other authorities. HGC shall be entitled to deposit, pledge, invest, or otherwise place any of the same with any relevant Market other bodies or persons and shall not be liable to the Client for the loss of any such margin and/or properties resulting directly or indirectly from the closure, bankruptcy, insolvency, liquidation, receivership, judicial management or other events of a like nature of any relevant Market, other bodies or persons with which such margin and/or properties are deposited, or pledged, or invested, or otherwise placed.

If HGC requires immediate delivery of the margins and the margins are not provided or delivered in time, or if, in HGC’s opinion, (a) there are or may be rapid or unusual changes in the prices of Commodities, and/or (b) conditions are such that it is necessary to protect HGC because of margin requirements or otherwise, then HGC may at its sole and absolute discreption liquidate the Client’s positions, without reference to the Client and any loss arising shall be borne by the Client.

5. Interest

5.1 HGC may or may not pay interest on moneys held in the Client’s account. If the bank does pay interest, all such interest if and when paid by HGC shall be paid into the Client’s account and form part of the margin. Interest rates may be charged at any time and no interest which may be paid pursuant to any other agreement shall establish any precedent for interest which may be paid herein.

5.2 The Client agrees to pay interest on all sums or moneys due to HGC after as well as before judgement at such interest rate as may be notified to the Client by HGC from time to time. The interest shall be accrued according to accepted market convention or in the absence of such convention on a daily basis on a 365-day year or 366-day leap year for all outstanding sums due from the due date to the date of full payment.

6. Suspension of account

The Client agrees that HGC shall be entitled at its absolute discretion to suspend the Account if the Client:

(a) fails to observe the terms and conditions herein or in any other document which may from time to time be incorporated as part of these terms and conditions;

(b) becomes insolvent; or

(c) being a corporation, has a receiver or manager (including judicial manager) appointed over any of its assets.

The Client further agrees that HGC may in its sole and absolute discretion suspend the Account if it is of the opinion that its interest would be adversely affected if it does not suspend the Account.

7. Right to liquidate or close out

7.1 If the Client fails to deliver any document, information or funds or give instructions within the time specified, HGC may, without notice, either liquidate or close out the Client’s position, or make or receive delivery on behalf of the Client upon such terms and by such methods as HGC deems appropriate. The Client will be responsible for fines, penalties, late charges and all consequential losses and damages which may be assessed against the Client or HGC pursuant to the rules and regulations of the relevant Market.

7.2 Without limiting any other right which HGC may have, if at any time, the Client shall be unable to deliver or to take delivery of any Commodity or other property previously sold or purchased, the Client authorizes HGC at HGC sole and absolute discretion and on such terms and conditions as HGC shall consider fit, to borrow or buy or lend or sell and deliver or take delivery of the same, and the Client shall immediately pay and indemnify HGC:

(a) for any cost , losses and damages (including consequential cost, losses, damages and legal fees on a full indemnity basis), together with any premiums or other charges which HGC may be require to pay, or which HGC may sustain, in making or taking such delivery or borrowing or lending; and

(b) for any costs, losses, and damages (including consequential costs, losses, damages and legal fees on a full indemnity basis) which HGC may sustain from HGC’s or the Client’s inability to borrow or lend or buy or sell any such Commodity or other property.

If HGC takes or makes delivery of any Commodity or property for the Client’s account, the Client agrees to indemnity and hold HGC harmless against and from any loss HGC may suffer resulting, directly or indirectly, from a decline or rise in value of the said Commodity or property and to reimburse HGC for all other cost and expenses (if any) related to the storage or delivery of the Commodity.

7.3 Notwithstanding any other provisions herein to the contrary, the Client agrees that if:

(a) by buying or selling any Commodity, the Client’s margin will become insufficient to margin all of the Client’s positions, or

(b) the Client buy or sells a Commodity without having any margin with HGC,

HGC shall be entitled to immediately and without notice to the Client liquidate or close out such transaction.

The Client acknowledges that the Client would be liable for all commission and transaction costs relating to the aforesaid transaction and that it would be liable for any losses resulting from the liquidation or closing out of such transaction. The Client acknowledges that it shall be solely responsible for monitoring its outstanding margins and positions as it is not practicable for HGC to check such information in view of the trading environment and, therefore, the Client agrees that HGC shall not be liable for any losses resulting from the liquidation or closing out of such transactions if HGC shall exercise its rights under this Clause.

Exchange traded transactions

8. General understanding

The Client understands and agrees that actual deliveries or cash settlements are contemplated on all transactions.

9. Execution

Where HGC acts as the Client’s agent in respect of any transaction, the Client agrees and acknowledges that in the event of the HGC appointing a broker pursuant to HGC’s right under Clause 16 of the Terms and Conditions - General (HGC Agents), the Client accept all risks arising or consequent from or in relation to the acts or omissions such broker so appointed and agrees to be responsible for the same. Without prejudice to the generality of the foregoing, the Client further agrees and acknowledges that HGC shall be held harmless and blameless for any loss, damage, liability, costs or expenses incurred or suffered by the Client whether directly or indirectly in relation to, arising out of or in connection with any negligence, misconduct, fraud or willful default or any other default, wrongdoing or breach of duty howsoever caused and however serious of such broker or such brokers’ servants, agents or employees provided that HGC shall have exercised reasonable care and skill in appointing such broker.

10. Automated trading system

When HGC transacts on any automated trading system (such as GLOBEX) on behalf of the Client, the Client agrees that such trading involve inherent risks, including, for example, but not limited to, interruption of service, system failure or communications failure and the Client accepts such risks and agrees not to hold HGC liable for any losses suffered by the Client howsoever arising as a result of such trading. The Client also represents that he is aware of the differences between the open out-cry trading systems and automated trading systems.

OTC Transactions

11. The Client understands and agrees that:

(a) Other than cross-trade permitted under the relevant Market rules and transactions where the Client consents to HGC acting as principal, HGC acts only as the Client’s agent for transactions on Markets notwithstanding that HGC may be deemed as having transacted as a principal under the rules and regulations of the relevant Market;

(b) Unless otherwise notified by HGC, HGC acts as principal to the Client in cash spot, forward and other non-Market Commodity or Options transaction; and

(c) As between the Client and HGC, the Client shall at all time be deemed to be acting in the Client’s own capacity and shall not be recognised as an agent for others.

12. Where HGC acts as principal to the Client in respect of any transaction:

(a) An order to purchase or sell Commodities may be accepted or declined by HGC at its sole discretion; and

(b) If accepted, shall be at such price and for such quantity and such other terms and conditions as may be agree between HGC and the Client and notwithstanding that HGC may execute a similar transaction vis-a-vis a third party for a different quantity or at a different price for HGC’s own account as principal.

13. Incorporation of general terms and conditions

The provisions as contained in HGC’s Tems and Condition’s - General (as amended from time to time) shall be incorporated into and form part of the terms governing this Account. In the event of any inconsistencies between HGC’s Terms and Conditions- General and the terms governing this Account, the provisions as contained in these terms shall prevail.

ACKNOWLEDGEMENT OF RECEIPT OF THIS TERMS AND CONDITIONS - TRADING

This acknowledges that I/we have received a copy of the Terms and Conditions - Trading and understand its contents.