Information on the procedure for exercising Xetra-Gold

Transcription

1 Information on the procedure for exercising Xetra-Gold Effective 1, April 2014

2 Page 2 of 5 Information on the procedure and costs for exercising Xetra- Gold from: Deutsche Börse Commodities GmbH April 2014 Each unit of Xetra-Gold grants the investor the right to demand delivery of one gram of gold. This right can be exercised in three different ways. 1. Exercise against delivery of Retail gold bars of fineness 999,9/000 and weights between 1 g and 1 kg; 2. Exercise against delivery of London Good Delivery gold bars of fineness 995/000 and weights from 350 and 430 ounces (approximately 10,9 kg 13,4 kg); 3. Exercise of delivery against payment of the equivalent amount of gold deposited. This document provides details on the execution of the exercising process, on the information required by the intermediate custodian of the investor s principal bank to ensure a smooth exercising processing, and on the expected fees for the investor. Description of the exercise process Certain information is required in order to execute the exercise request. Investors must provide this information to their principal bank. Name of applicant Name of consultant and address of applicant's principal bank (custodian) Number of exercised Xetra-Gold units Confirmation that the applicant is not prohibited by law, ordinance, articles of association or investment guidelines from owning physical gold (relevant to institutional investors). If the latter is answered in the negative (i.e. gold may be delivered), the following details relating to the type of gold delivery should be provided to the bank: Required moulding (London Good Delivery gold bars or retail gold bars with a weight from 1g to 1000g) London Good Delivery gold bars at 12.5 kg each can only be selected if 13,400 Xetra-Gold units or more are exercised.

3 Page 3 of 5 If the applicant selects retail gold bars, the required amount of bars with the following weight 1g, 5g, 10g, 20g, 50g, 100g, 250g, 500g and 1000g should be stipulated. If London Good Delivery gold bars were selected, the form the difference between the number of exercised Xetra-Gold units and the weight in grams of the delivered London Good Delivery gold bars is to be made up should be stipulated. Applicants may choose either to receive the differential amount in retail gold bars or to have it transferred back in Xetra-Gold units. In the latter case, they should stipulate the securities account to which the Xetra-Gold units should be retransferred. The investor's principal bank should supply the following details as well: Name of the branch willing to take delivery of the gold during normal business hours (point of delivery) Contact at branch with phone, fax and address Declaration by the bank that it will assume all fees resulting from the settlement of the exercising request. Step-by-step description of exercise The exercising request is prepared and signed by the representative of the principal bank together with the investor. Clearstream Banking AG will put an exercising form on its website for Clearstream clients to use to instruct the main underwriter (Deutsche Bank AG) to have the desired quantity and denomination of gold delivered to the point of delivery. In this respect, the process is identical to the one for the delivery of physical certificates. The exercising request completed by the custodian who maintains an account with Clearstream Banking AG is to be sent to Deutsche Bank AG at the following address. Deutsche Bank AG Ausübung Xetra-Gold CIB-Global Banking Trust & Securities Services Grosse Gallusstrasse Frankfurt am Main

4 Page 4 of 5 At the same time, the custodian transfers the number of units of Xetra-Gold held by the investor and to be released to a blocked account of Deutsche Börse Commodities on a free-of-payment (FOP) basis. Name Ausübungskonto DBCo Account BLZ Bank Deutsche Bank AG, Frankfurt BIC DEUTDEFFXXX Settl. Code REAG/DEAG BIC: DEUTDEFFCUS CBF account no Delivery will be initiated if Deutsche Bank receives the securities and the application form by 10 a.m. CET. As a rule it takes one to two weeks to deliver retail gold bars and four days for London Good Delivery gold bars from date of ordering. As soon as the delivered gold arrives at the point of delivery, the Xetra- Gold units are removed and recovered from the "Ausübungskonto DBCo" (DBCo exercise account). Due to the provisions of the Money Laundering Act (Geldwäschegesetz) only the branch of a bank may be used as point of delivery. Investors expecting a large delivery of gold should contact their principal bank to discuss the transfer of the gold to the point of delivery. Delivery costs The total price for exercising contains the costs charged by Umicore AG & Co. AG for refining, moulding, packing, and sending the gold to the point of delivery, as well as transport insurance and VAT. The investor should bear these costs which will be collected through the custody administration fees levied by Clearstream Banking. The following table is a guide for the cost of delivering gold within Germany: Germany Amount delivered Gold bars Estimated delivery costs (EUR) 1 kg 1 x 1 kg kg 10 x 100 g kg 10 x 1 kg kg 100 x 1 kg 7, kg 8 x 12.5 kg 1, kg 40 x 12.5 kg 5, kg 80 x 12.5 kg 10,500.00

5 Page 5 of 5 Delivery costs within Switzerland, Luxembourg, Austria, the Netherlands and Great Britain are location-dependent. The following table is a guide for the cost of delivering gold within Switzerland, Austria, Luxembourg, the Netherlands and Great Britain: Switzerland, Austria, Luxembourg and the Netherlands Amount delivered Gold bars Estimated delivery costs (EUR) 1 kg 1 x 1 kg 2, kg 10 x 100 g 3, kg 10 x 1 kg 3, kg 100 x 1 kg 8, kg 8 x 12.5 kg 3, kg 40 x 12.5 kg 7, kg 80 x 12.5 kg 13, Great Britain Amount delivered Gold bars Estimated delivery costs (EUR) 1 kg 1 x 1 kg 5, kg 10 x 100 g 6, kg 10 x 1 kg 6, kg 100 x 1 kg 11, kg 8 x 12.5 kg 5, kg 40 x 12.5 kg 7, kg 80 x 12.5 kg 17, The prices listed above are approximate values based on a gold price of EUR per gram. The actual cost (including outside expenses) charged to the investor depends on the distance to the point of delivery and the current price of gold and the general cost of energy and transport, and increases with the amount of gold requested. Please note that the investor's principal bank may also levy further processing fees. Additional foreign prices upon request. Alternative payment claim Investors who are prohibited by law, ordinance, articles of association or investment guidelines from owning physical gold may return Xetra-Gold to the designated sponsor (Deutsche Bank AG) which will dispose of the gold deposited for the securities on the market. The sales proceeds will be paid to the investor after deduction of a small exercise fee of a current EUR 0.02 per Xetra-Gold unit. If the exercise instruction is placed by 10 a.m. CET on any Frankfurt and London trading day, the gold will be sold same-day at the afternoon gold fixing price of the LBMA.

6 Exercise Form Xetra-Gold Deutsche Bank AG "Ausübung Xetra-Gold" CIB Global Banking Trust & Securities Services Große Gallusstraße From (CBF customer) Institution Address Frankfurt am Main Address Germany CBF account number Name of contact Phone Fax 1. Pursuant to the conditions of the security prospectus for Xetra-Gold we hereby instruct Deutsche Bank AG Frankfurt in its capacity as main underwriter and paying agent of Deutsche Börse Commodities GmbH to exercise (number) Xetra-Gold units (ISIN DE000A0S9GB0) which we have transferred to the following blocked securities account Name Securities Account Bank Ausübungskonto DBCo Bank Code BIC Settlement Party CBF Account 7015 Deutsche Bank AG, Frankfurt DEUTDEFFXXX "REAG/DEAG" BIC: DEUTDEFFCUS Xetra-Gold Exercise Form (1)

7 2. The units specified under (1) are to be exercised against (please check and fill in) A) Delivery of the following number 1 of retail gold bars with a fineness of 999.9/000 1 gram bars 100 gram bars 5 gram bars 250 gram bars 10 gram bars 500 gram bars 20 gram bars 1000 gram bars 50 gram bars to the point of delivery. B) Delivery of London Good Delivery gold bars with a fineness of 995/000 (this option is only available when 13,400 units or more are exercised) to the point of delivery. The difference between the number of exercised units and the weight of the gold bars delivered is to be settled by Delivery of the lowest possible number of retail bars described under 2.A to the point of delivery. or Retransfer of the relevant amount of Xetra-Gold (ISIN DE000A0S9GB0) to the following securities account: Account Holder Account Bank Code/BIC C) Realisation of the equivalent amount of gold represented by Xetra-Gold by Deutsche Bank and payment of the equivalent value in accordance with Section 4 of the Xetra-Gold terms and conditions. Payment of the sales proceeds minus the exercising fee should be made to Account holder Account Bank Code/BIC 1 If nothing is specified in the boxes below, the gold will be delivered in as few bars as possible to keep the cost as low as possible, whereby the total weight in grams of the bars will be equivalent to the Xetra Gold units being exercised. Xetra-Gold Exercise Form (2)

8 3. This section should only be filled in if 2.A or 2.B applies: A) The following point of delivery has agreed its willingness to accept delivery of gold: Contact Phone Bank Address 1 Address 2 Post code City Country Umicore will call the point of delivery to ensure that it is willing to accept the gold before making the delivery. If the point of delivery is not willing to accept the gold, Umicore will inform Deutsche Bank AG of this and Deutsche Bank AG will retransfer the units to be exercised to the investor. B) We declare that we will carry the total cost of the delivery including the handling fees of Clearstream Banking AG, Frankfurt, and VAT and authorise Clearstream Banking AG to debit these total costs from our securities account with the next monthly invoice. C) The beneficial owner declares that he is allowed to possess physical gold. He is not prohibited by articles of association, laws, ordinances or investment guidelines to possess such gold and that he is acting on his own responsibility. Neither Deutsche Bank AG, Clearstream Banking AG, Deutsche Börse Commodities GmbH nor any other third party has the obligation to check whether the beneficial owner is allowed to possess physical gold or not. The beneficial owner shall have no right of reversal if he exercises Xetra-Gold against gold without the necessary authority to do so. Authorised signatories: (Place) (Date) (1 st signature) (2 nd signature) (Name in capitals) (Name in capitals) Xetra-Gold Exercise Form (3)