The Paymaster Agreement explained
Every client signs the firm's Paymaster Agreement, which is written in English. This page explains what each section means, so you know what you are signing.
This explanation is not a translation and is not part of the agreement. It is a short summary to help you understand the Paymaster Agreement. The English agreement is the only binding version; if this explanation and the English text differ, the English text controls. Please ask the attorney about anything that is unclear before you sign, or have the agreement reviewed by your own lawyer.
Who the parties are
The agreement is between the Law Office of Madaen (the "Paymaster") and you, the "Beneficiary". You hire the firm to receive the money from your transaction into its attorney trust account and to pay it out according to your written instructions.
1. What the firm does
The firm receives the transaction proceeds into its IOLTA client trust account, holds them, and pays them out by wire as you instruct in writing. That is the firm's only job under this agreement. You agree to give the banking and personal information the firm asks for and to keep the firm informed of important developments.
2. Your transaction
Section 2 describes your specific transaction. The attorney writes it in English for your transaction.
3. Fees
Bank charges and other costs of receiving and sending the money are paid first from the money received. You also agree to pay the firm the fee stated in section 3. Payments to other people are made according to the pay order you will sign.
4. The money and the law
The transaction is private, between experienced parties, and is not offered to the public. You state that you are not relying on securities laws for protection and that you believe the transaction is exempt from them. You also confirm that the money is not connected to bank fraud, terrorism, money laundering or any other fraud.
5. Order of payment
From the money received, the firm's fee and the bank fees are paid first. The rest is paid to you or to the people you name, after the banks and government authorities release it.
6. Receiving the money and wire safety
The money is received into the firm's trust account and sent on according to your instructions, and the firm sends you a copy of each transfer record. The firm's wire instructions are not in the online document: the attorney gives them to you directly, and they must be confirmed by telephone before anyone sends money. The firm never changes its wire instructions by email. Each wire must include the reference given by the attorney, and a copy of the wire slip must be emailed to the firm.
7. Your promise to protect the firm
You confirm that you have authority to sign. If someone else claims a payment that is not provided for in this agreement, you will defend the firm and cover its resulting losses.
8. Disputes
California law applies. Any dispute between you and the firm about this agreement must be brought in Orange County, California.
9. The whole agreement
The written agreement is the complete agreement. It can be changed only in a writing signed by everyone.
10. Heirs and successors
The agreement also binds, and benefits, the parties' heirs, successors and assignees. Notices are sent to the addresses listed in the agreement.
11. Signing online
Signing online has the same legal effect as signing on paper, and you can download and keep a copy.
12. Additional terms
If your agreement has a section 12, it contains extra terms written for your transaction. Read them carefully and ask the attorney to explain them.
Documents you will need
A copy of your passport or driver's license, IRS Form W-9 or W-8BEN / W-8BEN-E, the online Client Information Sheet, the signed agreement, and your bank details.
Keep in mind: the firm acts only for you, its client. It does not guarantee that the transaction will close, does not check goods or assets, and does not give investment advice.