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Corp.,
Inc.'s use of such recordings in any proceeding or as National
Commodities Corp., Inc. otherwise deems appropriate.
8.
FOREIGN CURRENCY. If any transaction for Customer's accounts
is effected on any exchange or in any market on which transactions
are settled in a foreign currency (a) any profit or loss arising
as a result of a fluctuation in the rate of exchange between
such currency and the United States dollar shall be entirely
for Customer's account and at Customer's risk, (b) all initial
and subsequent margin deposits required or requested by Customer
shall be in United States dollars, and (c) National Commodities
Corp., Inc. is authorized to convert funds in Customer's accounts
into and from such foreign currency at rates of exchange prevailing
at the banks and other institutions with which National Commodities
Corp., Inc. normally does business.
9.
MARGIN REQUIREMENTS. Customer will at all times maintain
such margins or collateral for Customer's accounts as requested
from time to time by National Commodities Corp., Inc. (which
requests may be greater than exchange and clearing house requirements).
Customer shall make deposits of margin or collateral as National
Commodities Corp., Inc. requests within a reasonable time
after such request. In the absence of unusual circumstances,
one (1) hour shall be deemed to be a reasonable time; however,
National Commodities Corp., Inc. reserves the right to request
deposits on shorter notice at its sole discretion. Margin
deposits shall be made by wire transfer with immediately available
funds and shall be deemed made when received by National Commodities
Corp., Inc. National Commodities Corp., Inc.'s failure at
any time to call for a deposit of margin shall not constitute
a waiver of National Commodities Corp., Inc.'s rights to do
so at any time thereafter, nor shall it create any liability
of National Commodities Corp., Inc. to Customer. Customer
understands and acknowledges that, unless otherwise agreed
to in writing by National Commodities Corp., Inc., Customer
shall not be entitled to receive interest on any funds or
collateral held in Customer's accounts.
10.
LIQUIDATION and/or CANCELLATION. National Commodities
Corp., Inc. is authorized without notice to Customer, to sell
any or all Commodity Contracts or other property in Customer's
accounts or otherwise in its possession, or to buy in any
or all Commodity Contracts or other property which Customer's
accounts may be short, or to cancel any or all unexecuted
orders National Commodities Corp., Inc. holding for Customer's
accounts when (a) margin deposits are exhausted or inadequate
in National Commodities Corp., Inc.'s judgement, (b) margin
deposits are below the level requested by National Commodities
Corp., Inc., (c) Customer's accounts shall incur a deficit
balance, (d) Customer is indebted to National Commodities
Corp., Inc. or (a) National Commodities Corp., Inc. otherwise
deems itself to be insecure or in need of protection.
11.
EXTRAORDINARY EVENTS. In the event of (a) Customer's
death, finding of incompetency, termination or dissolution,
(b) the filing of a petition in bankruptcy by or against Customer,
(c) the institution of any similar state, federal or other
insolvency proceeding by or against Customer, (d) the appointment
of a receiver for Customer or any of Customer's assets, (e)
an attachment being levied against Customer's accounts (or
any of them) or (f) a notice of levy with respect to Customer's
accounts being served on National Commodities Corp., Inc.
by any competent taxing authority, then National Commodities
Corp., Inc. in its sole discretion, may sell any or all Commodity
Contracts or other property in Customer's accounts or otherwise
in National Commodities Corp., Inc.'s possession, or buy in
any or all Commodity Contracts or other property which Customer's
accounts may be short, or cancel any or all unexecuted orders
National Commodities Corp., Inc. is holding for Customer's
accounts, all without liability on National Commodities Corp.,
Inc.'s part to Customer or any third party.
12.
SALES, BUY-INS and CANCELLATIONS. Any sales, buy-ins,
or cancellations made pursuant to paragraphs 10 and 11 hereof
may be made according to National Commodities Corp., Inc.'s
judgement and at its discretion, on the exchange or other
market where such business usually is transacted, or at public
or private sale, without advertising the same and without
notice to, or prior tender, demand or call of any kind upon,
Customer or Customer's legal representative. At any sale National
Commodities Corp., Inc. may purchase the whole or any part
thereof free from any right of redemption, and Customer shall
remain
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liable
for and shall promptly pay National Commodities Corp., Inc.
the amount of any deficiency. Customer understands that a
prior tender, demand or call of any kind from National Commodities
Corp., Inc., or prior notice from National Commodities Corp.,
Inc. of the time and place of such sale or buy-on, shall not
be considered a waiver of National Commodities Corp., Inc.'s
right to sell or buy-in any Commodity Contract or other property
held in Customer's accounts or otherwise in National Commodities
Corp., Inc.'s possession or owed to National Commodities Corp.,
Inc. by Customer. Failure to act in such circumstances shall
not constitute a waiver of National Commodities Corp., Inc.'s
rights to do so at any time thereafter, nor shall it impose
any liability on National Commodities Corp., Inc., nor shall
it create a defense for Customer to any liability to National
Commodities Corp., Inc.
13.
TRADING
LIMITATIONS. National Commodities Corp., Inc. may at any
time, in its discretion, limit the number of positions which
Customer may maintain or acquire through National Commodities
Corp., Inc. and National Commodities Corp., Inc. is under
no obligation to effect any transaction for Customer's accounts
which would create positions in those accounts in excess of
the limit National Commodities Corp., Inc. has set.
14.
LIQUIDATION INSTRUCTIONS. Customer shall provide National
Commodities Corp., Inc. with liquidating instructions on open
futures positions maturing in a current month eight business
days prior to the last trading day or, alternatively. Customer
shall provide to National Commodities Corp., Inc. sufficient
funds to take delivery of necessary delivery documents within
such time period. Unless Customer provides such instructions,
funds or documents to National Commodities Corp., Inc. within
such time period, National Commodities Corp., Inc. at any
time during such eight day period, without notice, may liquidate
Customer's position or make or receive delivery on Customer's
behalf upon such terms and conditions as National Commodities
Corp., Inc. deems advisable and neither National Commodities
Corp., Inc.'s actions nor its timing shall impose any liability
on National Commodities Corp., Inc. or create a defense for
Customer to any liability to National Commodities Corp., Inc..
15.
SECURITY
AGREEMENT. All Commodity Contracts and other property
in Customer's accounts or otherwise, held by National Commodities
Corp., Inc. for any purpose, including safekeeping, are subject
to Customer's payment of, and are subject to a security interest
in National Commodities Corp., Inc.'s favor to secure, any
indebtedness at any time owing from Customer to National Commodities
Corp., Inc., including any indebtedness resulting from any
guarantee of a transaction or account by Customer or Customer's
assumption of joint responsibility for any transaction or
account. At any time, in National Commodities Corp., Inc.'s
sole discretion and without prior demand or notice, National
Commodities Corp., Inc. may apply any or all monies (or sell
or buy in any such Commodity Contracts and apply the proceeds
therefrom) to any such indebtedness, notwithstanding that
such indebtedness arises in an account other than the account
in which the monies were held or generated. In the event Commodity
Contracts and other property in Customer's accounts or otherwise
held by National Commodities Corp., Inc. are at any time insufficient
to satisfy Customer's indebtedness to National Commodities
Corp., Inc., Customer shall pay the deficit within 24 hours
following delivery of National Commodities Corp., Inc.'s written
request for payment. In case payment shall not be made within
24 hours, Customer shall pay interest on the unpaid indebtedness
at an interest rate equal to 5% above the prime rate as announced
from time to time by the banking and other institutions with
which National Commodities Corp., Inc. normally does business,
plus service charges and all costs of collection (including
reasonable attorney's fees).
16.
NOTICES
AND COMMUNICATIONS. Customer shall make all payments,
except with regard to wire transfers discussed above, and
deliver all notices and any other communications to the offices
of National Commodities Corp., Inc., at 100 West Cypress Creek
Road, Suite 945, Fort Lauderdale, Florida 33309. All communications
from National Commodities Corp., Inc. to Customer may be sent
to Customer at the address indicated on the Customer Application
or to such other address as Customer hereafter directs in
writing. Customer understands that oral information provided
by National Commodities
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