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SMS INSTRUCTION AUTHORIZATION

Client Name: / ID. No :
Joint Client Name: / Joint Client ID. No:
SBIS A/c No: / Authorized Cell phone:
EasyHisa Phone numbers / Safaricom : 0716 966 669
Zain : 0732 966 669

By signing this form, I confirm that the terms and conditions herein attached have been explained to me and I understand them. I agree to abide by the undertaking contained herein.

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ClientSignature Joint Signature

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Date

Note:

Kindly attach a passport photo and a copy of the client ID.
SMS Instruction (SMS Trading) Agreement:

THIS AGREEMENT by and between the above signed client (“Client”), and STANDARD INVESTMENT BANK (“SIB”) is made effective as of the date indicated below the client signature on this Agreement (the “Effective Date”).

1.0 Cellular phone number registration

The client affirms that you have registered the cell phone number as the only authorized number from which to accept SMS instructions.

2.0 Instructions

The client affirms that you have instructed SIB to follow any and all SMS instructions originating from client’sauthorized cellular phone number and sent to any of the SIB SMS instruction phone numbers.

The Client understands that Section 83 1; of the Kenya Communications (amendment) Act, 2008 enables persons to enter into contract using electronic transactions providing thus;

“ In the context of contract formation, unless otherwise agreed by the parties, an offer and acceptance of an offer maybe expressed by means of electronic messages thus where an electronic message is used in the formation of a contract, the contract shall not be denied validity or enforceability solely on the ground that an electronic message was used for that purpose.”

3.0 Order Instruction response

The client understands that an order for trade is accepted after a response is sent to the client indicating an order number. The client understands that in some cases there may be delay of beyond 15 minutes in receiving a response from the SIB system due to unavoidable circumstances. If a response is not received, the client shall contact SIB at any of the published numbers and request the status of their instruction and only resend the instruction after confirmation that the instruction was not previously received.

4.0 Instruction format

SIB shall provide a format for all SMS instructions in the SMS Order Management Charges Policy section on schedule A. The client shall send all SMS instructions in the format provided. SIB shall not follow any instruction that is incorrectly formatted and will respond with an error message. The will indicate the security in question by sending the appropriate security code as indicated in the SMS Order Management codes for securities on Schedule B. These formats may change at any time without notification to the client.

5.0 Charges

The client understands that after sending an SMS instruction to SIB, they shall receive one (1) or more SMS messages confirming the transaction and/or providing other details regarding the transactions. The client further understands that a charge as prescribed in the SMS Order Management Charges Policy section on schedule A shall be levied for every SMS sent by SIB to the client. SIB affirms that any charge levied against a client for an SMS message sent shall be clearly indicated on the client’s statement with a unique SMS communication number. The details of this communication can be presented to the client within 1 business day of request. The SMS message send as a response for any instruction that is incorrectly formatted will be charged at the service rate of the assumed instruction. An error in which the instruction cannot be assumed will be charged at the rate indicated by “Error handling”. SIB reserves the right to change the schedule at any time without notification.

SIB does not levy or receive any funds from your air time credit as a result of using this service. All SIB charges for this service are made as deductions from your trading account statement. Client initial ______

6.0 Indemnity

The client undertakes to hold SIB harmless and to fully indemnify SIB against any claims, losses, damages or expenses which the client may suffer or incur by reason of SIB affecting the SMS instructions given.

7.0 Force Majeure

Neither party shall be liable for any failure or delay in its performance under this Agreement due to any cause beyond its reasonable control and without the gross negligence or willful misconduct on the part of either party, including acts of war, acts of God, earthquake, flood, embargo, riot, sabotage, power shortages or failures, utility or communication failure or delays, labor shortage or dispute, governmental act or failure of the Internet, provided that the delayed party: (i) gives the other party prompt notice of such cause upon its occurrence; and (ii) uses reasonable commercial efforts to promptly remedy such failure or delay in its performance.

8.0 Entire Agreement

This Agreement, including all Schedules, commissions and Attachments may be amended from time to time, constitutes the entire agreement between the parties with respect to the subject matter, and supersedes and replaces all prior or contemporaneous discussions, understandings and agreements, whether written and oral, between them in respect thereto.

9.0 Termination

This agreement is in effect for a period of 12 months from the effective date and automatically renews every year for a period of 12 months. SIB reserves the right to terminate this agreement at any time for any reason without notice to the client. The client may terminate this agreement at any time for any reason with a notice in writing.

10.0 Headings

The headings in this Agreement and the Schedules and Attachments hereto are intended for convenience of reference only and shall not constitute a part hereof or affect in any way the meaning or interpretation of this Agreement.

11.0 Severability.

If any provision of this Agreement is found to be invalid or otherwise unenforceable, the enforceability of the remaining provisions shall survive. If any invalid or otherwise unenforceable provision would be valid or enforceable if some part of it were deleted or modified, the provision shall apply with whatever deletion or modification is necessary to make it valid or enforceable.

12.0 Time to Bring Claims. In no event shall any claim, dispute, controversy or other matter in question be made later than one (1) year after the claim, dispute, controversy or other matter in question has arisen (unless the claim, dispute, controversy or other matter in question is related to the collection of past due payments).

13.0 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the Republic of Kenya, without regard to its conflicts of law principles.

14.0 Arbitration. Any dispute or question which may arise at any time between the Parties regarding the construction of this Contract or the rights or liabilities of the Parties shall be referred to the decision of a single arbitrator in Nairobi to be agreed upon between the parties. In default of agreement within Fourteen (14) days after service by one of the Parties hereto on the other of notice of the existence of such dispute, difference or question, an arbitrator shall be appointed at the request of either party by the Chairman for the time being of Kenya Branch of the Chartered Institute of Arbitrators and such arbitration shall be conducted in accordance with and subject to the provisions of the Arbitration Act (Act No. 4 of 1995) as may be amended from time to time and the rules of the Chartered Institute of Arbitrators (Kenya Branch) shall apply to such arbitration proceedings

SCHEDULE A

SMS Order Management
Charges Policy
All Charges are entered in your statement as : SMS Communication - <number>
Service / SMS message to Send to SIB / Expected response(s) / Charge (Kshs) / Total Charge (Kshs)
Place an order / BUY#SECURITY#QUANTITY@PRICE
SELL#SECURITY#QUANTITY@PRICE
@MKT for market price / Get order number. / 10 / 10
Check status of my order / STATUS#ORDER-NUM
(alias STAT#ORDER-NUM) / Get the status of a specific unfilled order. / 10 / 10
Check status of all orders / STATUS
(alias STAT) / Get a list of all unfilled/active orders for this account.
May have multiple SMS responses based on the number of active orders / 10 / 10
Hold my order / HOLD#ORDER_NUMBER / Instruction confirmation of holding the UNEXECUTED part of an order from trading until RELEASE or validity period elapses.
May only happen outside trading hours. / 10 / 10
Release my order / RELEASE#ORDER_NUMBER / Confirmation of releasing a previously held order / 10 / 10
Cancel my order / CANCEL#ORDER_NUMBER / Confirmation of cancelling the UNEXECUTED part of an order.
May only happened outside trading hours. / 10 / 10
Get my mini-Statement / STATEMENT
(alias ST, STMT or STATE) / Return last 5 entries in the Statement / 10 / 10
Portfolio valuation / PORTFOLIO
(alias PB, or PB#SECURITY) / Return a valuation report for your entire portfolio or one security in your portfolio.
May have multiple SMS responses based on the number of held securities / 10 / 10
Get the current price of a security / PRICE#TICKER / Get the latest price for this security. / 10 / 10
Get the SMS securities codes / SECURITIES
(alias SEC) / Get the SMS code list for all trading securities ( 2 SMSs ) / 10 / 20
10
Deregister my phone / DEREGISTER
(alias DEREG) / Confirmation of instruction to revoke mobile access to your account / 10 / 10
System help / HELP or HELP#COMMAND / Get general or command specific help / 10 / 10
Error handling / An improperly formatted SMS command / Error message / 10 / 10

SCHEDULE B

SMS Order Management
Codes for traded securities
ABC / A.BAUMANN & CO.LTD ORD 5.00 / KP4 / KENYA POWER & LIGHTING LTD 4% PREF 20.00
ACC / ACCESSKENYA GROUP LTD ORD. 1.00 / KP7 / KENYA POWER & LIGHTING LTD 7% PREF 20.00
ARM / ATHI RIVER MINING ORD 5.00 / KPL / KENYA POWER & LIGHTING LTD ORD 20.00
BOC / B.O.C KENYA LTD ORD 5.00 / KRE / KENYA RE-INSURANCE CORPORATION LTD ORD 2.50
BPC / BAMBURI CEMENT LTD ORD 5.00 / LTC / LIMURU TEA CO. LTD ORD 20.00
BBK / BARCLAYS BANK LTD ORD 2.00 / MSH / MARSHALLS (E.A.) LTD ORD 5.00
BAT / BRITISH AMERICAN TOBACCO KENYA LTD ORD 10.00 / MSC / MUMIAS SUGAR CO. LTD ORD 2.00
CFC / C.F.C BANK LTD ORD.5.00 / NPP / NATION MEDIA GROUP ORD. 5.00
CGL / CAR & GENERAL (K) LTD ORD 5.00 / NBK / NATIONAL BANK OF KENYA LTD ORD 5.00
CIL / CARBACID INVESTMENTS LTD ORD 5.00 / NIR / NATIONAL INDUSTRIAL CREDIT RIGHTS
ICD / CENTUM INVESTMENT COMPANY LTD ORD 0.50 / NIC / NIC BANK LTD 0RD 5.00
CTL / CITY TRUST LTD ORD 5.00 / OCR / OLYMPIA CAPITAL HOLDINGS LIMITED RIGHTS
CMC / CMC HOLDINGS LTD ORD 0.50 / OCH / OLYMPIA CAPITAL HOLDINGS LTD ORD 5.00
CBL / CROWN BERGER LTD 0RD 5.00 / DKL / OLYMPIA CAPITAL HOLDINGS LTD ORD 5.00
DTK / DIAMOND TRUST BANK KENYA LTD ORD 4.00 / PAI / PAN AFRICA INSURANCE HOLDINGS LTD 0RD 5.00
DTR / DIAMOND TRUST RIGHTS / REA / REA VIPINGO PLANTATIONS LTD ORD 5.00
EAC / E.A.CABLES LTD ORD 0.50 / SAF / SAFARICOM LIMITED ORD 0.05
EPC / E.A.PORTLAND CEM ENT LTD ORD 5.00 / FSL / SAMEER AFRICA LTD ORD 5.00
EGD / EAAGADS LTD ORD 1.25 / STC / SASINI LTD ORD 1.00
KBL / EAST AFRICAN BREWERIES LTD ORD 2.00 / SGL / SCANGROUP LTD ORD 1.00
EQT / EQUITY BANK LTD ORD 5.00 / SCB / STANDARD CHARTERED BANK LTD ORD 5.00
EVE / EVEREADY EAST AFRICA LTD ORD.1.00 / SNG / STANDARD GROUP LTD ORD 5.00
EKL / EXPRESS LTD ORD 5.00 / TKL / TOTAL KENYA LTD ORD 5.00
HFC / HOUSING FINANCE CO LTD ORD 5.00 / TPS / TPS EASTERN AFRICA SERENA) LTD ORD 1.00
HFR / HOUSING FINANCE COMPANY OF KENYA RIGHTS / USR / UCHUMI RIGHTS PREMIUM
JIC / JUBILEE HOLDINGS LTD ORD 5.00 / USM / UCHUMI SUPERMARKET LTD ORD 5.00
KCB / KERCIAL BANK LTD ORD 1.00 / UGL / UNGA GROUP LTD ORD 5.00
KCR / KENYA COMMERCIAL BANK RIGHTS ISSUE / BRB / UNILEVER TEA KENYA LTD ORD 10.00
KEL / KENYA OIL CO LTD ORD 0.50 / GWS / WILLIAMSON TEA KENYA LTD ORD 5.00
KOL / KENYA ORCHARDS LTD ORD 5.00

SCHEDULE C

SMS Order Management
Statement codes
BUY / Buy order / SAL / Sale order
PYT / Payment i.e. SIB has paid out of this account / RCT / Receipt i.e. SIB has received money into this account
JVC / Journal / ISS / Issue e.g. IPO or rights
PET / Payment via Petty Cash / STL / Settlement after custodian trade

SCHEDULE D

SMS Order Management
Securities holdings codes
BF / Balance Free, These are securities that are free to trade i.e. the shares have settled have no loans against them / SB / Shadow Balance, This means the order has been submitted to the market. Once shares are bought or sold, they move to the pending buy or pending sale acct type.
PB
or
PS / Pending buy/Sale – This means the shares have been bought/sold and are awaiting settlement i.e. T+1 (transaction date plus 1 day) or T+4 (transaction date plus 4 days) / F / Frozen – Means the certificates are held as collateral for a loan taken by the client
RCP / Registered CT Pend – Means a certificate has been deposited into CDS for the process of immobilization

Page 1of 5Client initial______