Investment Advisory AgreementMay 2019
You (Client”) and Beanstox Inc., a Securities and Exchange Commission (“SEC”) registered investment adviser (“Beanstox” or the “Portfolio Advisor”), agree to enter into this investment advisory agreement (the “Advisory Agreement”), which becomes effective when you electronically sign the Advisory Agreement.
If Client is unwilling to be bound by the terms and conditions of this Advisory Agreement, Client will not submit an application to become a Client and open an account. In addition, Beanstox reserves the right to decline any application to open, or to terminate, an account at any time and for any reason, in its sole discretion.
Beanstox provides automated internet-based investment advisory services (the “Program”) available online through mobile applications (the “App”) and accessible via its websites (the “Websites” and, collectively with the App, the “Platform”). The Program provides individual investors with an easy and cost-effective way to invest in American and international equity and bond markets through Exchange Traded Funds (an “ETF” or “ETFs”).
Client hereby appoints Beanstox as portfolio adviser of Client’s assets held in each of the accounts (each an “Account”) that the Client opens with Beanstox through the Program.
Beanstox provides investment advice via the Platform (the “Advice”) specifically based on Client’s investment goals and risk tolerance (the “Client Profile”). The Advice derived from the Client Profile is based on Beanstox’ investment methodology and asset allocation strategies. More information about Beanstox’ Advice and methodologies is available on the Platform.
The Program is only available to individual investors who are residents of the United States (the “U.S.”).
Although there is currently no minimum account size required to open and maintain a Beanstox account, Beanstox reserves the right to set a minimum initial deposit or minimum account size in the future. Clients who decide to use the Program should be aware that Beanstox’s relationship with Clients is likely to differ from the traditional financial advisor relationship in several respects:
- Beanstox is a software-based, internet-based automated investment advisory service which means each Client must acknowledge, and agree to, having the ability and willingness to conduct a relationship with Beanstox on an electronic basis. Under the terms of this Advisory Agreement, each Client agrees to receive all Account information and documentation, and any updates or changes to same, through the Platform and, in rare instances, via electronic communications from Beanstox. Unless specifically noted otherwise by Beanstox, including on the Platform, all Beanstox financial advisory services and all documentation related to advisory services provided by Beanstox pursuant to this Advisory Agreement entered into electronically between the Client and Beanstox, are managed electronically. Beanstox does make individual customer service representatives available to assist Clients with administrative matters.
Investment Strategy and Portfolios
Beanstox develops model portfolios (the “Model Portfolios”) which are designed to address the investment goals and risk tolerance set out in the Client Profile. In developing and updating the Model Portfolios, Beanstox identifies what it believes to be (i) appropriate asset classes, (ii) efficient securities to represent these asset classes, and (iii) appropriate allocations within each asset class for each identified risk level to provide Clients with access to a Client targeted a simple and cost-effective Program. The Beanstox selects ETFs for each asset class comprising the Model Portfolios, using selection criteria for each Model Portfolio, including the ETF portfolio definition, diversification, trading liquidity, and cost. The asset classes considered for a Model Portfolio include U.S. equities (e.g. large cap, technology, value and growth), international equities, emerging markets equities and fixed income (e.g. treasury and municipal bonds and corporate bonds).
Based on the Client Profile, using its proprietary method, Beanstox will recommend to Client for review and approval a proposed portfolio (the “Proposed Portfolio”) derived from the various Model Portfolios. You acknowledge that Beanstox identifies the Proposed Portfolio in reliance on the Client Profile you provide. You agree that you are responsible for ensuring your Client Information, including your Client Profile, is true, accurate, complete, and current in accordance with applicable law. Beanstox shall not be liable for any recommendation of a Proposed Portfolio based on untrue, inaccurate, incomplete, or out-of-date Client Information. You acknowledge that, based on the Client Information you provide and the investment advisory methodology used in developing the Model Portfolios and recommending the Proposed Portfolio, the Proposed Portfolio is the choice among the Model Portfolios that Beanstox recommends as best for you. However, you agree that there is no guarantee, representation, warranty, or covenant that the Proposed Portfolio will perform better over any time period than any other Model Portfolio or any other investment.
The Proposed Portfolio establishes the target investment allocations. In order to begin the investment process, Client must approve a Proposed Portfolio (the “Approved Portfolio” and collectively with the Model Portfolios and the Proposed Portfolios, the “Portfolios”). Client can only approve or refuse a Proposed Portfolio and cannot make modifications to a Proposed Portfolio. To make adjustments to the Proposed Portfolio, Client can revise the Client Information, including responses regarding investment goals and risk tolerance.
You are not obligated to choose the Proposed Portfolio to be your Approved Portfolio. You may change your Proposed Portfolio at any time using the Platform and modifying your Client Information relating to goals and risk tolerance. You acknowledge and agree that you are solely responsible for the approval of the Proposed Portfolio. Beanstox shall not have authority or discretion to select any Proposed Portfolio for you. You further acknowledge and agree that it is your responsibility to review and carefully consider the information available on the Platform about each of the Portfolios and their constituent ETFs before approving your Proposed Portfolio.
While the Program is designed so that trading in your Account over time causes the holdings to replicate your Approved Portfolio, you agree that there is no guarantee, representation, warranty, or covenant that the holdings in your Account will match the allocations of your Approved Portfolio. You acknowledge that various factors (including the timing and frequency of deposits and withdrawals from your Account, market volatility and disruptions, the timing and frequency of changes to your Approved Portfolio, access interruptions, and hardware or software failures) can impact the extent to which holdings in your Account will replicate your Approved Portfolio at any particular point in time.
You acknowledge and agree that:
- the Program is designed for investments in ETFs allocated so that the resulting holdings tend to replicate the Approved Portfolio over time; and
- Beanstox designed the selection and relative weighting of the ETFs in each of the Model Portfolios to pursue specific investment objectives, including diversification.
Notwithstanding the foregoing, you may exclude from your Proposed Portfolio any one of the ETFs that otherwise comprise your Proposed Portfolio if, after carefully reviewing and analyzing all pertinent information available on the Platform about your Proposed Portfolio, you conclude that you do not want to own any one of the ETFs in the Proposed Portfolio. You may request to exclude from or re-include in your Proposed Portfolio an ETF at any time by emailing [email protected] You shall have the ability to exclude only one ETF from your Proposed Portfolio at any time. If you exclude an ETF from your Proposed Portfolio, the remaining ETFs in your Proposed Portfolio will be allocated relative to each other in the same proportions that they are allocated relative to each other in the Proposed Portfolio. You acknowledge that excluding an ETF from your Proposed Portfolio may adversely impact its performance. By excluding an ETF, you acknowledge and agree, without limiting any other provision of this Advisory Agreement, that:
- you assume the risk that your Proposed Portfolio may perform worse for you over any time period than the original Proposed Portfolio, or any of the other Model Portfolios on which your Proposed Portfolio is based, or any other investment;
- your Proposed Portfolio may not be suitable with respect to your investment objectives, risk tolerance, age, financial condition, or other facts or circumstances that apply to you; and
- Beanstox shall not be liable for any losses or other damages resulting from your exclusion of any ETF from your Proposed Portfolio.
Once you approve a Proposed Portfolio, your Account will be invested in the underlying securities (i.e. ETFs) which match the allocations of your Approved Portfolio.
The Approved Portfolio will be implemented almost entirely using ETFs, with a small amount which may remain in cash. The Approved Portfolio’s allocations will be adjusted periodically using cash inflows from dividends and additional Client funding, and may also be adjusted if the Approved Portfolio’s underlying asset allocations deviate by more than 20% from target allocations.
Proposed Portfolios and Approved Portfolios are derived from the Model Portfolios. Beanstox may enhance or update the Model Portfolios from time to time, therefore impacting Proposed Portfolios and Approved Portfolios. Accordingly,
- you agree that Beanstox may, in its sole discretion, modify from time to time the number of Model Portfolios that it deems appropriate, in its sole discretion, to address the investment objectives, time horizons, and risk tolerances associated with categories of clients; and
- you agree that Beanstox may, in its sole discretion, modify from time to time the selection of the ETFs that comprise each of the Model Portfolios and the relative weightings of the ETFs within each of the Model Portfolios.
All information and communications with Client regarding the Portfolios are available on the Platform.
Trade Execution, Account Maintenance, and Asset Custody
Once an Approved Portfolio is in place, and the Client’s Account is funded, appropriate orders are placed with the broker-dealer selected by Beanstox, to execute the related transactions.
Client agrees to delegate to Beanstox the selection of service providers for brokerage and custody services. Beanstox has entered into an agreement with DriveWealth, LLC (the “Carrying Broker”) to provide broker-dealer and custodial services for Beanstox Accounts. As part of the Account opening process, Client will enter into a separate brokerage agreement with the Carrying Broker (the “Brokerage Agreement”). A detailed description of fees of, and services provided by, the Carrying Broker are set out in the Brokerage Agreement and on the Platform.
Client agrees to authorize brokerage orders in the Account (“Orders”) to be directed by Beanstox to the Carrying Broker. Beanstox does not receive payment for order flow related to these Orders. The Carrying Broker is ultimately responsible for trade confirmations and Client statements. Beanstox will independently confirm that the information found in the Carrying Broker Client statements matches information in Beanstox’s internal database.
Investments will be denominated primarily in U.S. dollars for simplicity and ease of understanding by Clients.
Beanstox will generally aim to initiate all Orders in a timely manner, however Clients should be aware that at times Orders execution may be delayed either due to market conditions or to permit bundling of trades in order to achieve scale and cost efficiencies. Under these instances, Beanstox reserves the right to delay trade executions at its discretion.
By entering into the Agreements and participating in the Program, you authorize and instruct Beanstox to use the Carrying Broker to maintain your Account and to handle Orders. You acknowledge and agree that Beanstox may combine Orders for purchases or sales in your Account with Orders for purchases or sales of holdings in other accounts in the Program for aggregate transactions for each applicable holding in the Approved Portfolio.
Although Beanstox may transmit your Orders to the Carrying Broker, Beanstox shall have no authority to initiate any other withdrawals or otherwise to transfer any holdings or cash out of your Account other than for fee or expense deductions pursuant to this Advisory Agreement.
Timing of Orders
Client understands that Beanstox generally does not place Orders for the execution of transactions in the Account outside of regular trading hours and any Orders initiated in response to allocation changes or Client deposits or withdrawals received outside of trading hours will not be placed before 10:00 AM on the next business day. Client further understands that Beanstox generally stops placing orders arising from allocation changes approximately thirty minutes before the close of any market session. Beanstox generally continues placing orders associated with deposit and withdrawal requests until market close. Client understands and agrees that neither Beanstox nor the Carrying Broker shall be held responsible for any losses or other consequences that result from Beanstox’ or the Carrying Broker’s timing of or other determinations for placing or executing Orders.
Beanstox enables cost-effective money transfers by Client using via Automatic Clearing house (“ACH”) deposits and withdrawals from the bank accounts selected by Client.
Deposits, Withdrawals, and Allocation Changes
At any time, Client may enter instructions with Beanstox to make cash deposits or withdrawals to or from the Account from or to the Linked Account by taking appropriate action within the App.
Client understands and agrees that the deposits and withdrawal to or from the Account will be conducted in cash via ACH transactions. Client understands and agrees that ACH transactions are subject to processing delays which may last up to five Business Days or longer and cash transferred may not be credited to the Account or the Linked Account, as applicable, or otherwise available to Client during processing. Beanstox and the Carrying Broker, in their sole discretion, may impose a longer waiting period during which cash may not be available for trading or withdrawal. Beanstox and the Carrying Broker may, in their sole discretion, permit the transfer of cash into or out of the Account in other forms or via alternative means. Beanstox and the Carrying Broker reserve the right, in their sole discretion and without advance notice, to refuse certain types of additions of cash to the Account. Beanstox and the Carrying Broker reserve the right to require that Client make requests for withdrawals from the Account in writing. Client may alternatively request transfer of holdings to a different account with Beanstox or to a broker-dealer other than the Carrying Broker by submitting a request to Beanstox and the Carrying Broker in a form determined by the Carrying Broker. Certain holdings held in the Account may not be accepted by another broker-dealer. Beanstox and the Carrying Broker may determine to cancel this Advisory Agreement or the Brokerage Agreement as a result of a request to transfer holdings to another broker-dealer.
Client may enter instructions with Beanstox to withdraw cash up to the current market value of the Account at any time, not including fees or expenses that are due or will be due as a result of such withdrawal. It is Client’s responsibility to ensure that instructions are accurate before requesting that Beanstox or the Carrying Broker initiate an ACH disbursement. Beanstox or the Carrying Broker may in their discretion attempt to abide by a subsequent request to modify instructions, but it is not obligated to do so. Client agrees to indemnify and hold Beanstox, the Carrying Broker, and their affiliates, harmless from any losses arising out of or relating to an attempt to amend or cancel an ACH transfer request. Client understands that any erroneous, mismatched, or incomplete identifying information on an incoming ACH transfer may result in such ACH transfer being rejected, lost, posted to an incorrect account, or returned to the originating bank without notice to Client, and Client agrees to indemnify and hold Beanstox, the Carrying Broker, and their affiliates harmless from any losses arising out of or relating to any erroneous, mismatched, or incomplete identifying information on an incoming ACH transfer.
The ETFs comprising Model Portfolios may change from time to time due to market conditions and other reasons, in which case Beanstox may divest Client of some ETFs in the Approve Portfolio and reinvest in the new ETFs which were selected as replacements. Client must understand that investing in securities involves risk and the possibility of financial loss that can be caused by various factors, including changes in economic and market conditions. Beanstox does not guarantee that Client will avoid loss in the value of the investments nor guarantee any level of investment income or performance.
You understand and agree that:
- the Portfolios are subject to the investment risks described in this Advisory Agreement;
- any projected returns associated with any Portfolio may not materialize; and
- any hypothetical back tested returns associated with any Portfolio are based on assumptions and do not reflect actual results of any Account.
You understand and agree that:
- investing in securities involves risks and the possibility of financial loss that can be caused by various factors, including changes in economic and market conditions. Beanstox does not guarantee that Client will avoid loss in the value of your investments nor guarantee any level of investment income or performance;
- the Proposed Portfolio is subject to the investment risks described in this Advisory Agreement and elsewhere in the Program; and
- any hypothetical back tested returns associated with your Suggested Portfolio are based on assumptions and do not reflect actual results of any Portfolio Account.
Rebalancing and Dividend Reinvestments
You authorize Beanstox to conduct from time to time rebalancings of holdings in your Account (each a “Rebalancing”). Client understands and agrees that such transactions may affect the market value of the Account and may also have tax consequences. Rebalancings can be initiated for many reasons, including, without limitations, as a result of cash inflows and withdrawals from Client’s Account, or in the event holdings in Client’s Account are identified as having drifted by 20% or more from the Approved Portfolio allocations and cash flows are not sufficient to enable Beanstox to reduce the portfolio drift. Beanstox will use an automated method to calculate the purchases and sales for each Rebalancing based on automated analysis of your Account holdings relative to your Approved Portfolio. The algorithm will cause the holdings in your Account to replicate your Approved Portfolio more closely after settlement of the purchases and sales that comprise the Rebalancing than before settlement of such purchases and sales. You agree that Beanstox may modify at any time the manner in which, or the frequency with which, Beanstox calculates, generates, and places with the Carrying Broker the Orders for Rebalancing. You acknowledge that changes, particularly volatile changes, in the market price of the ETFs in your Approved Portfolio relative to each other may prevent Rebalancings from successfully making your Account holdings more closely approximate your Approved Portfolio.
You authorize Beanstox to conduct reinvestments of dividends (“Reinvestments”) on your behalf after receipt in your Account of dividends on ETF shares you own in your Account. Beanstox will generally design the Orders for Reinvestments to approximate your Approved Portfolio. Notwithstanding anything to the contrary in any of the Agreements or elsewhere, you agree that Beanstox shall be under no duty to conduct, and makes no guarantee that it will conduct, any Rebalancing or Reinvestment at any particular time or a purchase or sale for Rebalancing of any ETF shares in any particular amount.
Standard of Care
Subject to the terms and conditions of the Program and this Advisory Agreement and without limiting any rights you may have under the Investment Advisers Act of 1940 and other applicable United States federal or state securities laws, Beanstox shall exercise the level of care in executing the Program that is customary and reasonable in the industry for investment advisers providing investment advice solely through internet-accessed computer applications.
Investment Advice – Electronic Delivery
You acknowledge and agree that Beanstox will not provide investment advice other than the investment advice described in this Advisory Agreement and will not provide you investment advice separate from the Program. You agree that Beanstox will provide you investment advice and deliver the Program solely electronically in accordance with the terms of this Advisory Agreement. You acknowledge that Beanstox will not provide you investment advice in person, over the phone, or in any other form other than information available through the Program. You acknowledge that you will not be entitled to or able to transact securities in your Account, or hold securities in your Account other than the Orders placed by Beanstox with respect to the Approved Portfolio allocations of ETFs selected by Beanstox to comprise the Portfolios for the Program.
Service Not Available Outside the United States or to Non-Resident Aliens
The Program is not being offered to, and is generally not available to, anyone residing outside the 50 U.S. states, including U.S. citizens residing or working abroad. Beanstox makes no representation or warranty regarding its compliance with local laws in foreign jurisdictions, or regarding the appropriateness of the Platform's content and the Program, or its compliance with such local laws. Client agrees to terminate this Advisory Agreement upon a change in residency that would make client ineligible to receive the advisory services provided under the Program. The Program is not offered to non-resident aliens who require a Form W-8 for tax-withholding. Client’s inability to access the Platform in certain foreign countries could result in Client’s inability to access the services provided through the Program, the Account, or to provide information and preferences regarding the Account. Client agrees to indemnify and hold Beanstox, the Carrying Broker, and their affiliates harmless from and against any and all losses arising out of, relating to, or incurred as a result of the unavailability of the Platform from foreign countries.
Method of Communication
Client understands and agrees that the primary method of Beanstox’ communication with Client in connection with the Program will be by posting or updating information on the Platform and, to the extent required by law, sending Client a notice that directs Client to the Platform from which the information can be read and printed. Client understands that Beanstox reserves the right, however, to post Account related communications on the Platform without providing notice to Client, send Account related communications to Client’s postal or e-mail address of record, or to other method of communication provided by Client. Client agrees to check the Platform regularly for information. Client agrees that all Account related communications provided to Client in any of the ways described above will be deemed to have been good and effective delivery to Client when sent or posted by Beanstox or its affiliates, regardless of whether Client actually or timely receives or accesses the Account related communication.
Power of Attorney
Client appoints Beanstox to manage Account(s) on a discretionary basis and act as Client’s attorney-in-fact with limited power and authority for Client and on Client’s behalf to buy, sell, and otherwise effect investment transactions in the name of the Account in accordance with the terms of the Advisory Agreement. Beanstox shall manage the Account by issuing trading instructions to the DriveWealth to cause the Account to purchase and sell securities pursuant to the terms of the Advisory Agreement.
Client understands that neither Beanstox nor the Carrying Broker guarantee that access to the Platform and Account management via the App will be available all the time. Beanstox and the Carrying Broker reserve the right to suspend access to the Program without prior notice for scheduled or unscheduled system repairs or upgrades. Further, access to the Platform, and the Account, may be limited or unavailable due to, among other things: market volatility, peak demand, systems upgrades, maintenance, any kind of interruption of the services provided by Beanstox’ and the Carrying Broker’s ability to communicate with the Carrying Broker, hardware or software malfunction or failure, internet service failure or unavailability, the actions of any governmental, judicial, or regulatory body, and force majeure. Client agrees that neither Beanstox and the Carrying Broker will be liable to Client for any losses incurred by Client (including, but not limited to, lost profits, trading losses, and similar damages) resulting from such access limitations or unavailability.
Client understands and agrees that Client is responsible for all losses arising from or related to the Account. Except for negligence or malfeasance or violation of applicable law, Client agrees that Beanstox and the Carrying Broker, and their respective officers and employees, shall not be liable hereunder for any action performed or omitted to be performed or for any errors of judgment in managing the Account. Federal and state securities laws impose liabilities under certain circumstances on persons who act in good faith and therefore nothing herein shall in any way constitute a waiver or limitation of any rights which Client may have under federal or state securities laws. In addition, it is possible that Client or Beanstox itself may experience computer equipment failure, loss of internet access, viruses, or other events that may impair access to Beanstox’ software based financial advisory service. Beanstox and its representatives are not responsible to any Client for losses unless caused by Beanstox breaching its fiduciary duty.
Beanstox provides access to the Program for (i) a monthly subscription wrap fee of $5.00/month (the “Wrap Fee”) and (ii) in the future may charge an annual fee of 0.25% on the net market value of Client account balances over $25,000 (the “Variable Fee”, and together with the Wrap Fee, the “Aggregate Fees”). Beanstox may apply reduced Aggregate Fees in connection with promotional programs and other times in its sole discretion.
You agree to pay the Aggregate Fees in accordance with the Advisory Agreement. You acknowledge that the Aggregate Fees may change from time to time and will be available on the Platform.
The Wrap Fee will be charged monthly. The Variable Fee is are calculated as a prorated market value of a Client’s Account average daily balance and charged in arrears at the end of each month. Beanstox will automatically debit applicable fees from the Client’s Linked Account for both the Wrap Fee and the Variable Fee, if applicable.
Clients will not be charged additional fees by Beanstox for costs associated with portfolio advisory services, custody, account maintenance and trade execution (except for those fees related to foreign exchange or third-party asset fees). Clients who request special or additional services may be charged for such services. Although the fees are not negotiable, Beanstox may, at its sole discretion, waive a portion of its fees or offer fees to some accounts that differ from the standard fee schedules referenced above. Client may be charged additional fees for reimbursement of non advisory expenses such as insufficient funds charges.
A detailed description of fees can be found on our website at Beanstox.com.
ETF Fees and Expenses
All fees paid to Beanstox for investment advisory services are separate and distinct from, and in addition to, the fees and expenses charged by ETFs to their shareholders. These fees and expenses are described in the prospectus of each ETF. These fees are generally composed of a management fee and other fund expenses. Beanstox does not earn or receive a portion of such fees.
Authorization of Fee Deduction
PREAUTHORIZATION OF MONTHLY ELECTRONIC FUNDS TRANSFER FROM YOUR LINKED ACCOUNT: By clicking “I agree” to enter into this Advisory Agreement, you authorize Beanstox, DriveWealth and any of their agents, for the entire period in which your Account(s) are subject to Aggregate Fees under this Advisory Agreement, to process a recurring ACH debit from your Linked Account. Any ACH debit you preauthorize in the preceding sentence will result in an electronic funds transfer from your Linked Account to Beanstox or the Carrying Broker to pay, if applicable, the Aggregate Fees. Beanstox, DriveWealth, or any of their agents, may charge a fee if your ACH debit fails due to insufficient funds in your Linked Account. You further authorize Beanstox to instruct the Carrying Broker to sell, as necessary, Securities in your Account and to transfer money out of your Account to pay Beanstox or the Carrying Broker amounts, if any, of the Aggregate Fees and, if any, other fees and expenses due under the Advisory Agreement. The Securities sales you authorize in the preceding sentence include without limitation sales to pay: (i) any Aggregate Fees if your Linked Account is closed or disconnected from your Account or its transactions restricted; (ii) any Aggregate Fees if the preauthorized recurring monthly ACH debit you authorized above is rejected in any month due to insufficient funds; (iii) any fees other than the Aggregate Fees that may apply to any of your Accounts under the Advisory Agreement.
Various features of the Program are offered or processed through service providers, which may be unaffiliated companies, or affiliates of Beanstox. Unless otherwise noted, all authority granted to or limitations of liability of Beanstox shall include its agents and representatives and any service provider, Client authorizes Beanstox and its agents or its affiliates acting on behalf of Beanstox under this Advisory Agreement to perform the services contemplated by this Advisory Agreement.
Beanstox shall not assign its rights or obligations under this Advisory Agreement or the Program without your consent, provided however that you will be deemed to have consented to an assignment if you do not object to such assignment within 60 calendar days of being notified through the Platform or by email of any intent of Beanstox to assign such rights or obligations.
This Agreement and any action related thereto will be governed by the laws of the State of Delaware without regard to its conflict of laws provisions.
YOU ACKNOWLEDGE AND AGREE THAT ALL THE AGREEMENTS, INCLUDING THIS ADVISORY AGREEMENT, ARE GOVERNED BY THE BINDING ARBITRATION CLAUSE IN BELOW.
In the event of dispute relating to these terms and conditions, arbitration shall be conducted by and submitted to a single arbitrator (“Arbitrator”) pursuant to current JAMS Comprehensive Arbitration Rules and Procedures where appropriate. The Arbitrator’s award may be entered in any court having jurisdiction. The Arbitrator shall be authorized to award compensatory damages but shall NOT be authorized to award non-economic damages such as for emotional distress or suffering or punitive or indirect, incidental or consequential damages. Each party is responsible for their attorneys’ costs arising out of the arbitration and shall pay an equal share of the fees and costs of the Arbitrator and JAMS. The Arbitrator shall issue a written statement of the decision describing the factual findings and conclusions on which the award is based, including the calculation of any damages awarded.
Class Action Waiver
You agree that any arbitration or proceeding shall be limited to the dispute between Beanstox and you individually. To the full extent permitted by law, 1) no arbitration or proceeding shall be joined with any other 2) there is no right or authority for any dispute to be arbitrated or resolved on a class action-basis or to use class action procedures and (3) there is no right or authority for any dispute to be brought in a purported representative capacity on behalf of the general public or any other persons. You agree that you may bring claims against Beanstox only in your individual capacity and not as a plaintiff or class member in any purported class or representative proceeding.
Participation in Client Transactions and Personal Trading
Beanstox or individuals associated with Beanstox (“Related Persons”) may buy or sell for their personal accounts securities identical to or different than those recommended to Clients. In addition, Related Persons may have an interest or position in certain Securities which may also be part of Porfolios. It is the express policy of Beanstox that no person employed by Beanstox may use material, non-public information obtained during the course of their work to purchase or sell any security prior to any pending transaction(s) being executed for a Client’s account. This policy is intended to prevent employees from benefiting from transactions placed on behalf of Client Accounts.
Review of Accounts
Beanstox’s investment tools are intended for Clients’ use in order for Clients to review their Account and better understand their holdings and investment performance. Beanstox personnel conduct only limited, non-periodic individual reviews of Client Accounts, when triggered by certain investment activity and account settings.
Client Referrals and Other Compensation
Beanstox may establish referral programs that provide compensation to Clients, marketers and other partners in return for recommending or referring clients to Beanstox. Clients will not be charged any costs or fees for being referred by another Client, marketer or strategic partner of Beanstox.
Termination of Client Advisory Relationship
The Advisory Agreement may be canceled at any time, by either party, for any reason, upon notice in accordance with the terms of the Advisory Agreement. Upon termination of the Advisory Agreement, any unpaid fees earned by Beanstox will be due and payable. The Client has the right to terminate the Advisory Agreement without penalty within five business days after entering into the Advisory Agreement.
Proxies - Voting Client Securities
Beanstox does not accept authority to vote Client securities.
Client delegates to Beanstox DriveWealth the authority to receive and vote all proxies and related materials for any Security held in the Account. Beanstox/DriveWealth accordingly will vote on matters requiring a proxy vote for the Securities held in the Account and will do so in a way that is reasonably expected to ensure that proxy matters are conducted in the best interest of Clients. Client also delegates to Beanstox/DriveWealth the authority to vote on other corporate actions, like tender offers, which do not require a proxy or are not solicited via proxy. Clients may request information regarding how Beanstox/DriveWealth voted a Client’s proxies, and Clients may request a copy of Beanstox/DriveWealth proxy policies and procedures by emailing [email protected]
Services and Terms Subject to Change
CLIENT WILL CAREFULLY READ, UNDERSTAND, AND ACCEPT THE TERMS AND CONDITIONS OF THIS ADVISORY AGREEMENT BEFORE ENTERING AN ELECTRONIC SIGNATURE. IF CLIENT HAS ANY QUESTIONS ABOUT ANY OF THE PROVISIONS IN THIS ADVISORY AGREEMENT CLIENT WILL ADDRESS THEM WITH BEANSTOX BEFORE AGREEING TO IT. CLIENT UNDERSTANDS THAT CLICKING OR TYPING CLIENT’S NAME IN THE ELECTRONIC SIGNATURE FIELD IS THE LEGAL EQUIVALENT OF MANUALLY SIGNING THIS ADVISORY AGREEMENT AND CLIENT WILL BE LEGALLY BOUND BY ITS TERMS AND CONDITIONS. CLIENT UNDERSTANDS THAT THIS ADVISORY AGREEMENT MAY BE AMENDED FROM TIME TO TIME BY BEANSTOX, WITH REVISED TERMS POSTED ON THE PLATFORM. CLIENT AGREES TO CHECK THE APP AND WEBSITES FOR UPDATES TO THIS ADVISORY AGREEMENT. CLIENT UNDERSTANDS THAT BY CONTINUING TO PARTICIPATE IN THE PROGRAM AND MAINTAIN AN ACCOUNT WITHOUT OBJECTING TO REVISED TERMS OF THIS ADVISORY AGREEMENT, CLIENT IS ACCEPTING THE TERMS OF THE REVISED ADVISORY AGREEMENT AND WILL BE LEGALLY BOUND BY ITS TERMS AND CONDITIONS.