Common use of Client Default Clause in Contracts

Client Default. 4.1 If the Client fails to comply with any of the Client’s obligations and/or to meet the Client’s liabilities under this Stock Options Trading Agreement, including failure to provide Collateral, this will be treated as an Event of Default under Clause 12.1 of Section B of the Client’s Agreement, in addition to its rights and powers ESL shall have under Section B of General Terms and Conditions, may at its discretion, without notice to the Client, to: (a) decline to accept further instruction from the Client in respect of Exchange Traded Options Business; (b) close out some or all the Client’s Client Contracts with ESL; (c) enter into contracts, or into transactions in securities, futures or commodities, in order to settle obligations arising or to hedge the risks to which ESL is exposed in relation to the Client’s default; or (d) dispose of Collateral, and apply the proceeds thereof to discharge the Client’s liabilities to ESL. Any proceeds remaining after discharge of all the Client’s liabilities to ESL shall be paid to the Client. 4.2 The Client agrees to pay interest on all overdue balances in its Stock Options Account (including interest arising after a judgment debt is obtained against the Client) at such rates and on such other terms as ESL may be notified the Client from time to time.