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but this provision is without prejudice to the powers of the Business Conduct Committee in respect of the Dealer’s default.

53.5 The Company is not bound to refund or waive the whole or any part of any contribution or levy which has been paid, or is due to be paid, by a Dealer which has ceased for any reason to be a Dealer, or whose trading rights have been suspended, and all contributions and levies which are due by such a Dealer but have not been paid shall remain due and payable notwithstanding such cessation or suspension of the Dealer unless waived by the Company by notice in writing to the Dealer.

SECTION 12—ALTERATION OF RULES

54. ALTERATION OF RULES

54.1 The Board may from time to time add to, vary or rescind all or any of these Rules but no addition, variation or rescission shall take effect until it has first been approved by an ordinary resolution of the members of the Company.

54.2 An addition to, or variation or rescission of, these Rules pursuant to Rule 54.1 shall:

(a) be effective from such date as is determined by the Company; and

(b) unless otherwise specified by the Company, apply to all Contracts, whether entered into before or after that date, except as provided in Rules 10.2(b) and 10.2(c)(i).

54.3 The Company will give notice of all additions to, and variations and rescissions of, these Rules to Dealers but the accidental omission to give notice, or the non-receipt of notice, of any alteration, variation or rescission, by any Dealer, shall not invalidate that addition, variation or rescission, or delay its operation.

SCHEDULE 1

Client Acknowledgment

(For use by a Client of a Public Broker)

TO:

(Full legal name of Public Broker)

BY:

(Full legal name of Client)

Provisions Concerning Public Brokers and all Clients

The Client acknowledges that:

1. The Client has appointed the Public Broker as the Client’s agent for the purpose of dealing in futures and options contracts (“Contracts”) in accordance with the terms of this Client Acknowledgment.

2. The Public Broker is regulated in the conduct of its futures and options dealing business by New Zealand Futures & Options Exchange Limited (the “Company”).

3. All business transacted on behalf of the Client is subject to the Rules of the futures and options exchange operated by the Company (“Exchange”) (as altered from time to time) and the business rules, customs, usages and practices of any other exchange or market on which any such business may be transacted, and all instructions given by the Client to the Public Broker will be on the basis that the Rules of the Exchange and the rules, customs, usages and practices of any other such exchange or market, are binding upon and accepted by both the Client and the Public Broker.

4. The Client has given careful consideration to the Client’s objectives, financial situation and needs and has formed the opinion that dealing in Contracts is suitable for the Client’s purposes.

5. The Client will take all reasonable steps to obtain and communicate to the Public Broker all information, and deliver or cause to be delivered to the Public Broker all documents, with respect to dealings in Contracts on the Exchange or any other exchange or market, which are requested by a person having a right to request such information or documents, and the Client hereby authorises the Public Broker to produce the information or documents to the requesting party.

6. Dealing in Contracts incurs the risk of loss, as well as the prospect of profit, and may create an obligation to give or take delivery, or make a cash adjustment, in accordance with the terms of a Contract.

7. The Public Broker will at all times be trading on the Exchange and on any other exchange or market as a principal notwithstanding that in certain trading the Public Broker will be acting on the instructions of clients and the Public Broker will incur a personal obligation when dealing in Contracts as a result of instructions received from the Client.

8. The Public Broker may deal in Contracts as principal on its own account and the Public Broker’s directors, partners or employees (unless they are trading system operators) may deal in Contracts on their own account.

9. The Public Broker has the right to take the opposite position to the Client in Contracts, either on its own account or on behalf of other clients.

10. Any benefit or right obtained by the Public Broker upon registration of a Contract with the clearing house for any exchange or market as a result of the assumption of liability or a guarantee by that clearing house, or any other legal result, is personal to the Public Broker and does not pass to the Client.

11. The Client’s telephone conversations with the Public Broker can be recorded by the Public Broker, or by the Company or the operator of any other exchange or market. The Client has the right to listen to any recording made by the Public Broker in the event of a dispute or anticipated dispute.

12. The Client will pay commission and/or management and any other fees at the rates notified by the Public Broker to the Client in writing from time to time.

13. Unless otherwise agreed in writing, the Public Broker is entitled to any interest on money and property of the Client which is segregated or invested by the Public Broker.

14. The Public Broker may call for payment of initial margins or deposits, or of variation margins (by whatever terms those obligations are described) by payment of such money, or lodgement of such Approved Securities in lieu thereof, as the Public Broker, in its absolute discretion, feels is necessary to protect itself from the personal obligation incurred by dealing in Contracts as a result of instructions received from the Client.

15. The Client’s liability in respect of margin calls is not limited to the amount, if any, deposited with the Public Broker.

16. Should the Client fail to meet a call, or lodge Approved Securities, then the Public Broker may (without prejudice