Common use of Charges and Costs Clause in Contracts

Charges and Costs. 4.1 In respect of the making of each Contract by KGI as agent on behalf of the Client, and in respect of the closing out, give-up or (in the case of an Option Contract) exercise thereof, KGI shall charge the Client a commission calculated at such rate and on such basis as KGI may from time to time determine and notify the Client. In addition, the Client shall pay or reimburse KGI and its associated entities forthwith on demand all commission, brokerage, levies, fees, duties and taxes and all other charges and expenses suffered or incurred by KGI and its associated entities arising out of or in connection with any purchase or sale, closing out or give-up of Contracts entered into by KGI on behalf of the Client or otherwise arising out of or in connection with the performance of any of KGI’s and its associated entities’ duties under the Client Agreement. All such amounts may be deducted from the Account and any other accounts maintained by the Client with KGI. The Client agrees that KGI may notify the Client the rates and the basis on which KGI may charge such amounts from time to time in the manners provided in Clause 16. 4.2 The Client agrees to pay interest on all overdue balances owing to KGI (after as well as before any judgement), at such rate(s) to be notified by KGI from time to time, which shall accrue daily and be calculated and payable on the last day of each calendar month or upon any demand being made by KGI. In the absence of such notification from KGI, the Client’s Hong Kong dollars overdue balances will be charged interest at an annual rate of the higher of (i) eight per cent above the prime lending rate on Hong Kong dollars quoted by the Standard Chartered Bank; or (ii) ten per cent above the prevailing one-month HIBOR. In the case of foreign currency overdue balances, the annual interest rate will be ten per cent over the cost of funds of KGI to be quoted by KGI whether or not it has actually borrowed the funds. 4.3 Without prejudice to any other rights and remedies available to KGI, KGI may charge a monthly maintenance fee of such amount in such currency as KGI may determine from time to time on the dormant Account if the Client has no trading activity for six months or more. Payment of such fees will be automatically deducted from the Account.