Terms and Conditions

The EVR Bullion Terms and Conditions are standard for all of the below classification of clients:

Private clients
Commercial clients

The EVR Bullion Terms and Conditions should be understood and agreed in conjunction with the below EVR Bullion Documents as a client:

Client Risk Disclaimer. This can be read at www.evrbullion.com/otc-physical-precious-metal-risk-disclaimer/
EVR Bullion Privacy Policy. This can be read at www.evrbullion.co.uk/privacy-policy/
EVR Bullion’s Anti Money Laundering requirements and procedures. This can be read at www.evrbullion.co.uk/legal/

If you have any questions as regards the EVR Bullion Terms and Conditions or any document of EVR Bullion Limited, in the first instance please email enquiries@evrbullion.co.uk

1. SERVICES PROVIDED BY EVR BULLION

The EVR Bullion Terms and Conditions is a binding contractual legal agreement between EVR Bullion Limited (herein after referred to as “EVR”) and the customer or client that’s residence is provided on the EVR Bullion Client Application Form (short or long) (herein after referred to as “Client”).

EVR Bullion Limited (EVRB) is a Limited company registered in the United Kingdom and Wales, company reg. No. 07447854. Registered Office Southgate Chambers, 37-39 Southgate Street, Winchester, Hampshire, SO23 9EH.

1.1 EVR provides the client the opportunity to buy and sell physical commodity products through a range of OTC brokerage services. EVR provides the brokerage service of offering the delivery of physical commodities to clients on a global scale. EVR may also provide leverage facilities to the client for leveraged physical commodity products through a deferred spot settlement. The client, in accordance with the following EVR Bullion Terms and Conditions wishes to enter into contracts with EVR Bullion to either purchase or sell physical commodities.

1.2 The client is responsible for monitoring his or her own physical commodity positions and is responsible for maintaining contact with EVR Bullion as regards to open positions or transactions that may have been executed. EVR Bullion will strive to contact the Client in a timely manner.

1.3 All transactions between EVR and the client will be entirely on a non-discretionary basis. EVR will never act on behalf of a client unless there has been a specific instruction provided by the client as set out in these Terms and Conditions.

1.4 EVR will provide market and industry intelligence and data to assist the client in making his or her own investment decisions. EVR will also provide product support where necessary. EVR cannot guarantee the accuracy or completeness of such data, market information and intelligence though EVR believe such sources to be reliable. If a client makes an investment decision based on market information or data provided by EVR he or she does so at his or her own risk.

2. INVESTMENT RISKS AND DISCLOSURES

EVR, in accordance with these terms and conditions produces a two way market in physical commodities.

EVR wishes you to read and make sure you understand the risks that are tied with buying and selling physical commodities. Buying and selling physical commodities is classed as speculative and is not suitable for everyone as is set out also in the EVR Bullion Customer Disclaimer you would have been already provided. You should consider before buying or selling physical commodities your experience you have within these investment markets, the objectives and reasons for buying physical commodities and your present financial resources you have. EVR recognises and accepts that the company has a duty of care to all of its clients when it comes to the operation of the client account and the client property and will instil and endeavour to always incorporate best practice and the highest standards of care to reduce such investments risks.

The following though, in accordance with these Terms and Conditions are accepted as outside of the control of EVR:

2.1 PHYSICAL COMMODITY MARKET FLUCTUATIONS RISK The physical commodity market is unpredictable and volatile. Past price fluctuations whether up or down are not indicative of what the future price of physical commodities may be.

2.2 PHYSICAL COMMODITY SPREADS RISK In periods of increased volatility quoted spreads of physical commodities can increase and become wider than normally will be the case. It may also be the case whilst fixings are being conducted within the markets that EVR may find it difficult to provide price quotes to the Client. EVR will though on occasions like this, though not required to do so will endeavour to provide a price quote on the desired commodity.

2.3 OFF EXCHANGE TRANSACTIONS RISK physical commodity trading is not carried out on any recognised future exchanges. EVR will be acting as your counter party in all of your physical commodity transactions.

2.4 FOREIGN EXCHANGE MARKET FLUCTUATIONS RISK transactions that are executed in a currency that is not the base currency of the EVR account will be affected by the fluctuations in the currency exchange rate that the transaction is being placed in.

2.5 CLIENT CASH DEPOSITS RISK client cash deposits are held in a separate client account administered by a reputable UK based bank. However all banks are subject to possible failure. In the event of a bank failure compensation may be available from the appropriate authorities.

2.6 LEVERAGE OF POSITION RISK Should you as the client decide that you would like to leverage your holdings with EVR using spot deferred settlement products and services, the amount of your deposit will only be a percentage of the physical value of the physical commodity you have agreed to purchase. A relatively minor market movement will have a proportionately larger impact on the funds you have deposited. In the light of this, leverage can work against you as well as financially beneficial for you. You may sustain a significant loss of your initial deposit and any additional funds you may have also deposited to support your physical commodity position.

2.7 ADDITIONAL FUNDS REQUEST If the market moves against your holding and required equity
levels into relation to your holding are increased, you may as the client be called upon to pay substantial additional funds at short notice to maintain the current physical commodity holding your presently have.

2.8 POLITICAL RISK AND TAX RISK Governments or Government agencies could impose taxes that may affect the Client buying and selling physical commodities. You should seek independent tax advice as laws are subject to change. EVR are not tax advisers and will not provide tax advice. Governments or Government agencies may also implement laws and political changes that may restrict the ownership of physical commodities.

2.9 INSURANCE EXCLUSIONS as is the established common practice with the insuring and physical protection of physical commodities there may be some exclusions. Underwriters for example may exclude nuclear war.

2.10 FORCE MAJEURE Refer to 4.2.9

2.11 GATED FUNDS AND FREEZING OF REDEMPTIONS If the EVR was affected by outside
forces and prevented client fund withdrawals and redemptions, EVR are neither liable nor responsible for the delay, nor any costs incurred while the funds are delayed and redemptions or withdrawals cannot happen.

3. DEFINITIONS

“Agreement” – These terms and conditions laid out within this document and also contact that may occur in the future with the Client which shall constitute a single agreement.

“Account” – Client account with EVR Bullion Limited.

“Parties to this Agreement” – EVR and the Client, at the address given in the EVR Bullion Client Application Form.

“Client Purchase Agreement” – The Agreement with EVR for the purchase and sale of physical commodities on behalf of the Client.

“Application Form” – The form and document completed by the client providing his or her information and the acceptance of this Terms and Conditions.

“Commodities” Commodity products bought and sold to or from the Client by EVR Bullion.

“Allocated Commodities” – These are stored individually, specifically on behalf of the client. Unallocated commodities are stored as an undivided lot of physical commodities.

“Transaction” – A written or oral contract entered into by the company, EVR and the client for the purchase or sale of physical commodities.

“Depository” – Customer Bonded Warehouse; Secure warehouse; Financial Institutions or another entity that is acceptable to EVR and recognised for the storage of physical commodities.

“Equity” – The percentage of funds the client holds in the physical commodity underlying each transaction. The amount of funds in the physical commodity.

“Equity Call” – Following an adverse market movement the request for additional funds to be transferred from the Client to support a transaction.

“Forced Liquidation” – Partial closure of complete closure of a transaction in physical commodities if the equity falls below a predetermined level.

“Order” – A transaction placed by the Client that is executed by EVR.

“Withdrawal” – When a client withdraws funds from his physical bullion trading account.

4. CLIENT PHYSICAL COMMODITY PURCHASE AND SALE AGREEMENT

4.1 The purpose of this agreement is to provide an account for the purchase and sale of physical commodities and physical commodity transactions.

4.2 Terms for the client for the purchase, sale and delivery of physical commodities.

4.2.1 CLIENT PURCHASE OF PHYSICAL COMMODITIES EVR will advise the client of the full amount due at the time he or she wishes to purchase a physical commodity. If the client would like to use leverage to purchase, EVR will notify the client the initial deposit for the purchase must be on account with EVR Bullion.

4.2.2 PHYSICAL DELIVERY OF THE COMMODITY TO THE CLIENT OR ON THE CLIENTS BEHALF EVR will deliver the physical commodity upon receipt of clear funds on Client behalf as full payment for the purchase of the commodity or commodities. The client may also take physical possession of all commodities they have purchased on leverage at any time they choose upon making full payment of the outstanding balance. The client must also have paid for any applicable storage, delivery, taxes or any other fees due to EVR.

4.2.3 OWNERSHIP OF THE PHYSICAL COMMODITIES The commodities purchased on behalf of the client, subject to any securities therein, will pass to the Client upon the event of the success delivery to the client, the clients designee that he or she has stipulated; or the depository the client has designated which will hold the physical commodity on behalf of he or she, the Client. Physical Commodities transferred to the direct depository for the client will be delivered as an unallocated share of a fungible lot and held safekeeping on a fungible basis with the physical commodities of other depository clients by EVR Bullion on behalf of the customer or client.

4.2.4 STORED INDIVIDUALLY ALLOCATED COMMODITIES Clients may, subject to potential additional premiums that may then be due, have their physical commodity products stored on an allocated basis with a depository and have their physical commodity allocation stored individually.

4.2.5 DELIVERY TO EVR Commodities that are sold to EVR, which are held with a depository may also be delivered by the depository to EVR.

4.2.6 PHYSICAL COMMODITY PRICING POLICIES EVR acts as a principal for transactions with a Client and as such sells to and buys from the Client on its own behalf. EVR also buys and sells physical commodities to other physical commodity providers. EVR IS NOT an exchange. EVR has the sole discretion to set the prices it may sell and buy physical commodities for from the Client. The London Fixing prices for physical commodities may be used to place buy or sell transactions on certain physical commodities – this is subject to the acceptance by EVR. EVR’s Ask and Bid prices are not necessarily tied to prices by any other organisation.

4.2.7 COMMODITY PRICE ADJUSTMENTS There may occasions where the Client may have to accept certain physical commodities in quantities that are not exactly the size and quantity purchased. Upon delivery of the physical commodity that has been delivered in a different quantity, the purchase price will be adjusted to the actual weight of the delivered physical commodity. At the time of delivery of the physical commodity, the overage of underage in quantity of the commodity will be priced of EVR’s Ask or Bid price. Clients will be informed of this.

4.2.8 EVR’s suppliers and sources are confidential. EVR may use its suppliers or its own inventory to acquire commodities necessary to fulfil its obligations to the client. EVR may obtain physical precious metals from London based suppliers who are active members of the London Bullion Market Association (LBMA).

4.2.9 In such cases as highlighted above the code of practice issues by the LBMA and the London Platinum and Palladium Market (LPPM) will be followed except where superseded by this agreement.

4.2.10 Clients have the option to specify precious metals to be purchased and delivered from or stored with a London based member of the LMBA and LPPM when allocated.

4.2.11 TRANSFER OF TITLE EVR will provide the client a confirmation detailing client ownership or right to ownership of commodities purchased through EVR on behalf of the client, except delivered products.

4.2.12 CURRENCY OF CLIENT PURCHASE United States Dollars are generally the currency global commodity prices are generally quoted in. EVR though may offer transactions and complete transactions in different currencies other than dollars such as British Sterling, Japanese Yen and the Euro. EVR pay provide, for the reason of expediency a foreign exchange rate for the client which may be different from the foreign exchange rate the broker EVR may ultimately get when the currency is exchanged through a foreign exchange broker at the discretion of EVR. The client through EVR will be provided an immediate spot foreign exchange rate have made available to him the amount of foreign exchange currency that is being recorded onto the trading account.

4.2.13 FORCE MAJEURE In the event of adverse conditions in the market place that are beyond the control of EVR, or other factors also beyond the control of EVR, including, but not limited to, acts of God; local, national and/ international emergencies; local, national and/ or international governmental actions; or suspension of trading futures contracts by commodity exchanges; or the delivery of the commodity underlying such physical commodity contracts; or the failure or delay of suppliers, the maximum time for delivery of such physical commodities by EVR may be extended indefinitely during the period of such adverse conditions. EVR will not be responsible for delays or failures in the transmission of transactions orders, receipt of transaction orders or the executive of such orders, payments, deliveries or information due to the incapacity, however long or failure of computer, transmission or communication facilities, which are beyond the control of EVR.

4.2.14 EVR RESPONSIBILITIES EVR will at all times to the best of EVRs abilities endeavour in such times provide clients services as laid out in section one of the EVR Bullion Terms and Conditions page 2.

4.2.15 CLIENT INSTRUCTIONS EVR will rely upon instructions and orders given by the Client. In the physical commodities industry it is standard practice that all purchases and sales are binding contracts and must be honoured. Once an order is placed by the Client to EVR, and it is accepted by an EVR representative, who must be authorised by EVR, a contract is created.

4.2.16 NON DISCRETIONARY TRANSACTIONS AND SERVICES EVR will not exercise discretion in trading for a Client on his or her client account, except where otherwise allowed as per these EVR Bullion Terms and Conditions, in events such as, not limited to Equity calls and forced liquidations on the Clients account.

4.2.17 CLIENT TAXATION CONSEQUENCES Tax responsibilities and consequences of physical commodity transactions with EVR are and will always be the sole responsibility of the Client. Tax laws are subject to change, and the Client has the responsibility of consulting with his own tax advisors and legal advisers as regards the implication of taking physical delivery of physical commodities.

4.2.18 EVR BULLION GENERATION OF MARKET LIQUIDITY when you the client decide to execute a buy or sell order for physical metal, EVR will provide you an immediate buy or sell price at the time of your trade execution therefore providing you expedience of service, liquidity and transparency; this will be provided by means of a pdf. format trade confirmation.

4.2.19 EVR may not go to market and execute the corresponding buy or sell order immediately that corresponds to you the clients buy or sell order of physical metal. Any loss generated through the difference in price given to you, the client, and the price EVR the broker received when actually executing the trade in the market will be borne by EVR; as will any profit created if the metal is bought at a different time and the price has moved in the favour of EVR the broker.

4.2.20 When you the client decide to sell your physical metal your equity within the position will be deposited back onto your trading account as normal and the metal is no longer yours.

4.2.21 EVR reserves the right to sell metal and purchase the metal back at a cheaper price; if the metal appreciates in price and EVR has to purchase metal back to honour unallocated physical metal holdings, EVR will be responsible for writing off and accounting for that principal loss.

5. LEVERAGE

This section relates to the terms and conditions that are attached to using the leveraged based products and deferred spot settlements provided by EVR.

5.1 The purpose of this Agreement within this section of the EVR Terms and Conditions is to set forth such terms which EVR will provide to the Client upon request, from time to time spot deferred settlement lines and Non Recourse finance to provide clients leverage to sell and purchase physical commodities which include, but are not limited to a depository, collateral, security interest, storage and certain risks and costs associated with each leveraged position/ transaction.

5.2 Deferred settlement and leveraged transactions.EVR will provide a facility that is open to Clients where EVR will buy the physical commodity for the client, but whereby the Client will have to deposit a minimum of 25% of the transaction cost, plus applicable fees and charges that may be associated with the physical commodity transaction. The remainder will be provided by EVRs spot deferred settlement agreements that it has in place or non recourse finance. Interest will be charged on a daily basis for debit balances if a Client decides to use the deferred settlement service; interest will be charged on the day of the transaction and the day the transaction is closed. The client has responsibility to make sure that the account has sufficient equity. If adverse market movements occur and causes there not to be sufficient equity in relation to the transaction the Equity Call or Forced Liquidation policies may be triggered and enforced.

5.3 FORCE LIQUIDATION POLICY EVR has the responsibility to liquidate low equity accounts. Should EVR fail to act in a timely manner and prevent a deficiency on a client account by not forcing liquidation, the Client shall not be liable for any deficiency in excess of the deposit the Client deposited on account.

5.4 FORCE LIQUIDATION LEVELS EVR Force liquidation levels are set at 12% equity and are subject to change. These levels or below may force EVR to liquidate the position.

5.4.1 CLIENT WARNING LEVELS EVR will endeavour to notify a client when their position drops below 20% equity and the position will go on “call”. On “call” means their has been a margin call on the position and the client has 3 days to either increase the equity position of the margin called trade above 25% or sell the position. If the value of the metal appreciates within these 3 days and the equity increases above 20%, the position will then no longer be on call. A client may sell another position to meet the equity demands of his margin call. If the client has not met the requirements within 3 days of their equity margin “call”, EVR reserves the right to sell the low equity position into the market to remove the call. The remaining equity will then be placed back onto the clients trading account which can then be used again.

5.5 TERMS AND CONDITIONS OF LEVERAGE AND INTEREST The Client promises and is responsible to pay EVR on demand, or if there is no demand, four years from the date of the latest and most recent leverage advancement, such sums as EVR may loan, or for the benefit of, Client, together with interest and fee’s thereon from the dates of the respective advances at EVR’s current announced rates, as such rates may change from time to time. The client also promises to return to EVR, or if no demand, four years from the dates of the latest leverage, such commodities as EVR may loan to, or for the benefit of, client pursuant to this agreement, and pay interest and fees thereon from the dates of the respective leverage at QIAs prevailing announced rates, as such rates may change from time to time. Interest on the commodities loaned to the client shall be based on the value of the commodities at the time they are borrowed as determined by the prevailing bid price of EVR. If clients fail to make such payments or return such commodities as required, shall constitute a default by the client and EVR reserve the right to dispose of all collateral and security on deposit by the client or on the clients behalf and apply such proceeds against the obliagations due to EVR hereunder. Such right shall be without limitation to the value of the collateral and security o any other remedies granted to it by this agreement or otherwise by law. The interest is calculated, on EVRs leverage based facility on the number of days the balance for the leverage service is outstanding divided by 360. On the last day of every month, any interest that the client has not paid will be added to the unpaid balance in the account. Interest begins on the day the transaction is placed, and the final day of interest on the leverage is the day the transaction is closed.

5.6 PREPAY BALANCE The client may prepay any balance due, without any penalty.

5.7 RATES EVR rates may change from time to time.

5.8 CLIENT ACCOUNT EQUITY REQUIREMENTS AND FORCED CLIENT HOLDING LIQUIDATIONS The Client has the responsibility and agrees to keep their obligations fully secured at all times, always to the satisfaction of EVR, and to make additional payments on his or her account, or to deposit additional property as security, should the value of the security for such obligations at any time suffer a decline and reduction in value, or at any time should be then insufficient to secure such obligations to the satisfaction of EVR Bullion. The Client should also expect and anticipate to be called upon from time to time by EVR to reduce his outstanding leverage balance to deposit therefore additional funds on account as security for the commodity leverage they have agreed to. In the case of a cash advance, if such a request is not responded to with the expected, and agreed designated payment within the specified time (which may be as short as 24 hours in some cases), the property that has been pledged as security may be sold by EVR and the proceeds applied to the repayment of amounts owed to it. EVR also reserves the right to affect such a sale or purchase without making, or before the deadline for response to, a requirement for the reduction of the outstanding balance due to EVR or an increase in Client security deposit with EVR if at any time deems the collateral securing the obligations of Client to EVR to be inadequate. This action will be taken, and will most frequently occur due to severe changes in the market that have adverse effects on the market value of the subject commodities.

5.9 DELIVERY OF THE PHYSICAL COMMODITIES TO A DEPOSITORY In addition to the depositories own vaults, or the vaults that the depository may now be using or may use in the future, the Depository may use any facility to store commodities on behalf of the Client. Physical Commodities that are transferred to the depository on behalf of the client will be delivered as an unallocated basis with the commodities of other depository customers unless the additional premium to hold the physical commodities on an allocated basis is paid, as well as that option being available at the time. The Client also may take physical delivery of the commodities and hold in his or her own possession as security upon full payment of the leverage balance and any applicable delivery, insurance, storage, taxes and other changes.

5.10 AUTHORISATION OF ACTION BY EVR TO PROTECT SECURITY INTEREST IN COLLATERAL The Client authorises EVR to take any actions it believes necessary to protect or preserve its security interest in the collateral. EVR may file these Terms and Conditions and such any other documents it sees fit as EVR may request with the appropriate authorities an order to protect EVR’s security interest under these terms and conditions. Until the Client pays of the indebtedness in full, the Client is not and will not be authorised to sell, encumber or otherwise transfer any interest in the collateral or permit to exist any encumbrance of any kind on the collateral other than the security interest of EVR under these Terms and Conditions.

5.11 CLIENT DEFAULT EVR has the option available, and at which does not have to provide any demand or notice, all or any part of the indebtedness (including any leverage of Commodities provided to the Client) shall immediately become due and payable upon the occurrence of the following events (“events of default”): (a) failure to perform any of the responsibilities, terms, provisions or conditions as stipulated in these Terms and Conditions or (b) default in the payment of principal or interest of any indebtedness of Client when due. In the occurrence that the Client Equity in the collateral or security deposit for commodity balances falls below 36% of EVRs minimum permissible level at any time, EVR reserves the right and shall have the right, but not the obligation to foreclose upon all or any part of such collateral at its sole discretion. Foreclosure may be affected without prior notice given to the client, even though (1) a demand for additional security or repayment has not been made; (2) such a demand is outstanding which has not yet been met; or (3) Client Equity in the collateral has subsequently risen above EVR’s minimum equity level for a physical commodity position due to the increase in the market value of the subject commodity because of positive movements in the commodity markets. It is the responsibility of the Client, and additionally also agree to closely monitor the equity in the collateral to reduce the likelihood of foreclosure and acknowledges the increased risk of foreclosure if the Client fails to adhere to his or her responsibilities of monitoring the position.

5.12 EVR MINIMUM PERMISSABLE COLLATERAL LEVEL EVR reserves the right to change its minimum collateral level permissible at its sole discretion at any time due to physical commodity market volatility.

5.13 FORECLOSURE In the event of Client failure to satisfy any indebtedness that may fall due, or at the occurrence of an event of default as previous defined and explained, or upon demand of Depository, EVR may, at any time, at its election and discretion apply, set off, collect or dispose in one or more sales, with or without previous demands, notice of advertisement, the whole collateral or part of the collateral in such order as EVR may elect or decide.

5.14 ASSIGNING OF RIGHTS AND PRIVLEGES Upon indebtedness in full or in part being transferred to the depository, EVR may transfer its security interest in all or any part of the collateral and shall be fully discharged from all liability with respect to the transferred collateral. The Client does not have the privilege of asserting against depository any or defence that the Client has against EVR. EVR, may, at its own discretion, at any time, without providing any notice to the Client, assign a part or all of its rights and privileges under these terms and conditions. The Client also, but agreeing to these terms and conditions agrees that EVR may utilise any commercially reasonable basis by which it, in its absolute sole discretion, may provide leverage to the Client including in lines of spot deferred settlement.

5.15 CONTINUATION OF TERMS AND CONDITIONS These Terms and Conditions, this agreement is a continuing agreement. All rights, powers and remedies hereunder shall apply to future, present and past indebtedness of the Client to EVR.

5.16 AGREEMENT REVOCATION This agreement and terms and conditions may be revoked upon written notice being provided by the Client to EVR who has signed into this agreement and is bound by these terms and conditions, and then only if at that time there is no Client indebtedness outstanding to EVR.

5.17 RIGHTS POWERS AND REMEDIES OF EVR The powers, remedies and right provided to EVR are cumulative and not exclusive of any other rights, powers of remedies that may EVR may also have.

5.18 ENTIRE AGREEMENT This agreement and acceptance of these terms and conditions constitutes the entire and whole agreement among is parties and is intended as a complete and exclusive statement of the terms and conditions of their agreement. This agreement and terms and conditions may be amended, but only if a replacement agreement and terms and conditions are executed, or in the event of the Client failing to object, within 5 working days, to modifications contained in the written material sent by EVR to the Client.

5.19 SUPERCEDING OF ORAL REPRESENTATIONS This agreement and agreed terms and conditions shall supersede any oral representations between the parties involved.

5.20 SEVERABILITY OF THIS AGREEMENT In the event that a provision within this agreement and terms and conditions is determined in a court of law to be unenforceable in a particular jurisdiction, the enforceability of that provision/s shall be unaffected and remain enforceable in all other jurisdictions. If a provision in a jurisdiction is seen as to be unenforceable by a court of law the remainder of this agreement and terms and conditions shall be bringing upon the parties as if such provisions were not contained within.

5.21 THE CLIENT ACKNOWLEDGES THE FOLLOWING:

5.21.1 The Client has read and understood these terms and conditions/ agreement and is aware of the nature and extent of their rights, but also the risks involved under these terms and conditions.

5.21.2 Client transactions will be cleared as soon as possible after the payment by the client for the equity requirement for a specific transaction ordered by the Client. For the purpose of interest calculation on the Client account and monitoring of Equity calls and forced liquidation levels, the transaction will be considered completed at the time of clearing. There may be some instances where the transaction may be considered completed in advance of funds or receipt of the collateral by a depository.

5.21.3 EVR will be entitled to rely upon all orders and directions given to it by the Client, and EVR shall have no liability to the Client and the Client will never hold EVR liable following the orders or directions given by the Client.

6. COMMUNICATIONS TO CLIENT FROM EVR

6.1 EVR will communicate with the client regarding confirmations, equity calls, transactions, client account statements and administrative matters by telephone and/ or email. Items concerning the above will generally normally not be sent by regular mail.

6.2 When involved with Time sensitive matters, equity calls will be advised by telephone to Client as possible and confirmed by email of the equity call that took place.

7. EVR BULLION DEPARTMENTS

7.1 Within EVR Bullion separate departments exist for back office functions and compliance, and a separate department for Trading and front office functions.

8. STORAGE AND SECURITY AGREEMENT

8.1 Property and Rights subject to Security Interest. As security for every Client transaction and the performance of all Client obligations hereunder, whether now existing or hereafter incurred. The Client hereby grants EVR a security interest in each and every commodity the Client purchases from EVR for any stored transaction, unless delivery takes place.

8.2 CLIENTS INDIVIDUAL AUTHORITY. The Client who signs this agreement and is bound by these terms and conditions is authorised to deal full with the account opened hereunder, for the purposes of placing orders, receiving funds or commodities or otherwise. Any action taken by any such party shall be binding on all other parties with an interest in that account. Each such party shall hold EVR harmless for relying hereon. All obligations of Client under these terms and conditions are joint and several.

8.2.1 Waiver. Failure to exercise or delay in exercising any right, power or remedy hereunder by EVR shall not operate as waiver thereof, nor shall any single or partial exercise of any right, power or remedy of EVR hereunder preclude any other or future exercise of any other, right or remedy.

8.2.2 Authority of Depository to Act. The Client or Customer agreements that the Depository may act upon any instruction received from EVR concerning delivery, transfer, and sale or depositing or Commodities held by Depository on Clients behalf.

9. OPERATION OF ACCOUNT

9.1 Client account equity calls. If using the spot deferred settlement leverage facility, the Client is required to maintain a sufficient amount of equity in the account to meeting EVR’s minimum equity requirements. In the event the value of your, the Clients value of the commodity holding causes your equity within your position to fall below the amount
required, and breaches EVRs minimum equity requirements, a request will be made for additional funds to be transferred on account to increase your equity if this threshold is breached. This is an equity call. In this event, if you, the Client maintain your transaction you will be required to remit funds to meet the call at short notice depending on physical commodity market conditions. If at any time the equity in your account falls below the forced liquidation equity level set by EVR, regardless of whether an equity call has been issued to you, the Client, the collateral in your account may be force liquidated.

9.2 The impact of cumulative commissions and other charges. The Client, should before executing a transaction obtain, from EVR a clear explanation of commissions, fees and spread’s on the different physical commodities. This, you, the Client will be responsible for. For any subsequent transaction these charges will cumulatively have an adverse impact on your net profit, or increase your loss on the position. You, the client, should always consider, as it is the Clients responsibility to withdraw any profitable transaction.

9.3 CLIENT CONFIRMATIONS AND MONTHLY STATEMENTS

9.3.1 EVR will send to the client a confirmation email for each transaction

9.3.2 The Client, if he or she notices any literature that has any inaccuracies, must report it immediately to EVR. Following the third working day following receipt all such literature will be deemed as correct.

9.3.3 If a client requests paper documentation a $25 administration fee will be charged to their trading account

9.3.4 If the client does not have an email address and cannot receive EVR Bullions digital transmission of documents then a $25 administration fee will not be charged to the clients OTC precious metals trading account

9.3.5 If a client does not adhere to client account funding procedures there is a $10 charge to his trading account due to the infraction i.e. sending to wrong banking details

9.4 STOP LOSS AND LIMIT ORDERS GIVEN TO EVR BY THE CLIENT. Stop loss and limit orders will be accepted at EVRs discretion and will only accept such instructions on the understanding that EVR will exercise its best endeavours to execute such stop loss and limit orders and that there is no guarantee that the order will be executed at the price at which the stop loss or limit order is placed. EVR, may, for the client be able to provide automatic stop loss or limit orders with suppliers. The Client must agree and understand that All stop loss and limit orders are subject to prevailing market conditions and slippage.

9.5 EVR PRODUCTS FEES FOR PHYSICAL COMMODITY TRADING

Please see below a list of fees and charges. EVR, will before the execution of any transaction on behalf the client explain the fees and charges to the Client.

SPREAD OF PHYSICAL COMMODITY – The spread varies per size, product, market conditions and location.

COMMISSIONCHARGED – 0% of the physical commodity transaction size payable on only client purchases.

STORAGE COSTS – 0-2.5% per annum. This is charged on a daily basis and may be subject to VAT.

LEVERAGE INTEREST – This is on the leveraged spot deferred settlement facility. This is charged on a daily basis on the outstanding balance which has been deferred by the client.

DELIVERY – This may be subject to VAT. Delivery charges depend on the product, the size and amount of the product and the delivery destination.

9.6 COMPLAINTS

EVR has a complaints policy which is available to clients upon request as per these terms and conditions. This ensures that any complaints arising out of this Agreement of these terms and conditions and operation of the Client account are and will be reviewed in a timely manner.

9.7 WITHDRAWAL OF FUNDS

If the client withdraws funds from their physical bullion trading account, and, but not limited to withdrawal funds from his or her open positions by reducing the equity in their physical bullion position, EVR will charge a $50 administration fee per withdrawal; this will debited from the client account.

9.7.1 FAILURE TO KEEP AML DOCUMENTATION UP TO DATE

When you open a physical metal trading account with EVR Bullion you will be required to send in proof of identity and location to adhere with anti money laundering standards. You will also be required to continue to keep this documentation up to date with EVR and up to date immediately upon request. If you the client do not keep your AML documentation up to date EVR will not allow you to trade, fund your account further or request a withdrawal from your account until the paperwork request is up to date. EVR reserves the right to liquidate your unallocated metal holding if you do not meet anti money laundering reporting standards and do not action any requests EVR may make.

9.8 DELAYED PAYMENT OF FUNDS

If a client agrees a metal trade on his account and does not settle his metal trade t+1 (transaction + 24 hours) he will be charged a daily settlement fee of $20 per 24 hour period the metal trade has not been paid for; the period is calculated from the time and date trade stamp. If the client provides proof of payment i.e. copy of bank statement demonstrating settlement of the metal purchase within 24 hours a daily settlement charge will not be incurred. Written confirmation from the client will not be accepted.

9.9 FAILURE OF SETTLEMENT OF FUNDS AFTER DELAYED PAYMENT OF FUNDS

If the client fails to pay for their metal trade, the client will only incur up to a maximum of 5 business days of settlement fee’s (7 calendar days / 1 calendar week) up to a total of $140. After this time the metal position may then be sold at the discretion of EVR Bullion and the profit or loss will be placed onto the client’s metal trading account if the settlement for the trade is not forthcoming. The loss may be deducted with any funds the client may have on their client trading account and may place the account in negative balance, owing then to EVR Bullion. EVR Bullion reserves to right to take legal action to recover the debt on the account if the client does not settle the negative status on their metal trading account. Proceeds of future or existing positions may be used at the discretion of the company to settle the debt. Equity from existing positions may be used at the discretion of the company to settle the debt. The client will not be able to engage in further physical metal trading activity until the position, during the settlement period if paid for, or, if there is a debt on the clients trading account the debt is settled.

10. LIMITATIONS OF EVR LIABILITY AND INDEMINITY

10.1 EVR shall not be liable to the Client in any way for the non-performance of its obligations hereunder or the failure to execute any contract in accordance with the instructions given by the Client as per these terms and conditions by reason of any cause beyond its reasonable control. The physical commodity markets can be volatile, and while EVR will act in good faith, EVR shall not be liable for any loss sustained as a result of any representation given by EVR on any physical commodity transaction or course of action executed or followed by the Client whether following market information and intelligence or market research that was provided by EVR or otherwise insofar as and then only to the extent that such a loss is caused by the negligence or default of EVR that was proved to be wilful.

10.2 On demand of EVR, the client shall indemnify and continue to indemnify from and against all liabilities, losses, costs, taxes, commissions, charges and duties incurred or suffered by EVR in the proper performance of its services or the enforcement of its rights hereunder, or as a result of:

10.2.1 Client defaulting on a payment of any amount under these terms and conditions when due

10.2.2 EVR exercising its rights under this agreement to close out all or any part of a Client transaction before its applied settlement date.

10.2.3 Either the Client of EVR exercising their right to terminate the agreement which is bound by these terms and conditions.

10.2.4 Freezing of funds assigned to pay for metal, that may be held in the business bank account or bank accounts of EVR, that has not been paid for yet due to the bank carrying out checks, money laundering checks, or any other type of due diligence or checks financial institutions or enforcement agencies may undertake. In the event of this occurring EVR is not liable for any damages or responsible for this occurring.

11. CLIENT REPRESENTATIONS

The Client represents to EVR that, both on the date of the signing of the agreement and therefore agreement to these terms and conditions and at the time of the execution of each transaction instructed by the Client, that:

11.1 The Client has the full power and authority to enter into this agreement and be bound by these terms and conditions.

11.2 The Client had taken all the necessary steps to enable it to lawfully enter into this agreement and be bound by these terms and conditions.

11.3 The equity and or any other assets by way of security that is deposited by the Client for the Client obligations hereunder are beneficially owned by the Client and the Client will not create any charge or other encumbrances over or in respect of such funds or assets.

11.4 The Client will not attempt to utilise their account for any money laundering purposes.

11.5 The Client will, on request by EVR provide such information as financial affairs and his position, information on business affairs and information on the Clients identity. It is the responsibility of the Client to provide as much information as EVR requires and that all the information provided by the Client to EVR is true.

11.6 The Client has read the risk disclaimer for physical commodity trading within these terms and conditions.

11.7 The Client understands that the purchase and sale of physical commodities involve risk as well as the creation of opportunities. The Client represents to EVR that he or she understands that the market prices of physical commodities may at times be volatile and may be affected by a variety of factors including, but not restricted to political risks, both international and domestic, fluctuations in production and demand of physical commodities, speculative activity within the market, stockpiles and general economic conditions as well as, but also not limited to the concern people have about these matters.

11.8 EVR may not be able to contact the Client at all times necessary.

11.9 The Client has the responsibility to monitor their account and the market conditions that may affect their transaction/s.

11.10 It is the responsibility of the Client to contact EVR.

11.11 The Client understands that his or her account with EVR Bullion is self directed. This means that the Client makes his or her own trading decisions; this also means the Client is responsible also for all of his or her own trading decisions, profits, and losses

11.12 If the Client believes that he or she has entered into an agreement that has not been authorised by the Client, or that a transaction should have been executed by EVR on behalf of the client by has not be executed, the Client has the responsibility to notify EVR immediately by telephone or by email. Such emails should be sent to trade@evrbullion.co.uk.

12. REGULATION OF PHYSICAL COMMODITY TRADING

12.1 Physical commodities are not deemed a specific investment as per the Regulated Activities Order. EVR Bullion Limited is not regulated by the Financial Conduct Authority.

12.2 EVR Bullion Limited will provide Clients with assistance and support with their account and transactions.

13. GENERAL CONDITIONS

13.1 The Agreement to these terms and conditions and these terms and conditions themselves constitute the entire agreement and understanding of the parties involved to its subject matter and the basis on which EVR will enter into any contract with the Client and supersedes all previous written or oral correspondence and communication or understandings, whether it was informal or formal.

13.2 The Client cannot transfer this Agreement or any interest or obligation in or under this agreement without the prior written consent from EVR. Any purported transfer as described above shall be null and void.

13.3 The Client has the responsibility to complete the EVR Bullion Client Application form referring to these Terms and Conditions.

13.4 The Client certifies that the passport, identity card or documents provided or drivers license provided to EVR for money laundering checks as per procedure are correct and the contents up to date.

13.5 EVR reserves the right to amend these terms and conditions at any time, by providing notice to the client in writing. Any amendments made by EVR as regards to these terms and conditions shall take effect from the date specified by EVR but may not be retrospective or affect any rights or obligations that have already arisen before the amendments of these terms and conditions and have already been brought up in writing by the client. If EVR makes an amendment to these Terms and Conditions the client will provided 5 working days notice prior to the amendment being made.

13.6 The rights and remedies provided in these terms and conditions and the indemnities contained, are cumulative and not exclusive of any rights or remedied provided by law.

13.7 The absence or failure on the part of any party bound by these terms and conditions to exercise, and no delay on its part in exercising, any right or remedy under these terms and conditions shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy preclude any other or further exercise thereof or the service of any other right or remedy.

13.8 EVR and the Client agree to and consent to the following:

1. The electronic recording by either party of the telephone conversations between both parties;

2. The ability to use electronic recordings or transcripts from the electronic recordings as evidence by either party in any dispute or anticipated dispute between the parties or in the event of a situation relating to dealings between the parties; and

3. Electronic recordings or transcripts made by EVR being destroyed as per internal policies.

13.9 Nothing contained within these terms and conditions should be seen or construed as an offer or invitation for EVR to buy and sell commodities or an obligation to buy and sell commodities.

13.10 If there is a notice to be sent, it is to be sent to EVR, Winchester, Hampshire or if it is to be sent to the Client it is to be sent to the address the Client has set forth on their Client Application Form, or, if the Client has provided another destination for the notice in writing.

13.11 Notices sent to the Client by EVR whether it be by email, writing and sent in the post or by telephone will be, as per these terms and conditions, effective immediately.

13.12 ARBITRATION. The Client agrees and consents that any claim, grievance or controversy arising out of or relating to Client account, to transactions pursuant to this Agreement or the breach there of, shall be resolved by arbitration in accordance with the rules of any publicly recognised arbitration facility in Winchester, United Kingdom or facility of EVRs choice. Judgement upon any reward rendered by the arbitrators may be entered in any court having jurisdiction thereof. In agreeing to this agreement and by signing the Application Form, you:

1. You, as the Client are waiving your right to sue in a court of law; and

2. You, as the Client are agreeing to be bound by arbitration of any claims or counterclaim which EVR may submit to arbitration under these Terms and Conditions.

13.13 Binding Terms and Conditions and Agreement. The provisions of these terms and conditions shall be continuous and shall be to the benefit of EVR, its successors and assigns, and shall be binding upon the Client and/ or the estate, administrators, successors of Client and representatives. EVR may assign its rights and delegate its duties as to any or all transactions under this Agreement. The Client shall not delegate any obligations hereunder without the prior written consent of a duly authorised employee of staff member of EVR.

13.14 Any such delegation as per article 13.13 shall be null and void if not given consent by an authorised staff member of EVR.

13.15 BANK ACCOUNT. The Clients funds are at all times maintained, until used for a Commodity transaction, at the account of the LBMA member. To fund their account the client may need to fund to either a designated EVR Bullion Limited or EVRB Limited bank account, which in turn will then be transferred on to EVR Bullions suppliers and financiers for payment of the metal. The Clients funds are also maintained as equity deposits with the suppliers and financiers utilised by EVR and its affiliates to acquire, financial commodities and provide spot deferred settlement of commodities for EVR’s Clients.

13.16 FOREIGN EXCHANGE CONVERSIONS. EVR reserves the right and is entitled to, with prior notice provided to the Client; make any foreign exchange conversions between currencies that EVR deems to be desirable and necessary. Any fluctuations in the value of Accounts as a result of foreign exchange rate movements shall be at the risk of the Client. The Client should be aware that trading commodities denominated in currencies other than that which the account is held, will be subject to fluctuations in value because of currency exchange rate movements on foreign exchange markets. EVR will inform clients of such charges or conversions before any conversions take place.

13.17 LAW OF APPLICABLE COUNTRY. The law that shall apply to these terms and conditions are the laws of England and Wales; provided that, if any England and Wales law shall dictate that the laws of another jurisdiction apply in any proceeding, such laws shall be superseded by this 13.17 paragraph. Nonetheless the remaining Laws of England and Wales that apply to these terms and conditions shall be, in a proceeding applied.

14. PHYSICAL COMMODITY RISK DISCLAIMER

Trading on over-the-counter markets requires experience, knowledge and skill.

Buying and selling physical commodities is speculative and high risk. EVR Bullion Limited is not regulated by the Financial Conduct Authority and means that you will not have access to any United Kingdom Statutory compensation schemes, and will not be covered by and receive any recourse from the FOS or the FSCS.

The buying and selling of physical OTC commodities, such as Gold, Silver, Platinum, Palladium or Rhodium are not a regulated product this means that you are not eligible to any recourse under the Financial Services Compensation Scheme (FSCS).

Past performance of physical commodities provide no indication of future performance.

You should consider before you make any decision to purchase and trade within the physical over the counter precious metal markets your individual position financially.

The currency exchange rate fluctuations may also have an adverse effect on the value of transactions you may enter into with EVR Bullion that may be traded in foreign currencies.