Memorandum of Understanding
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Parties
| Buyer | |
| Registered in | |
| Represented by | |
| Introduced by (affiliate code) | |
| Counterparty | |
| Mandated agent, buy side |
1 Who we are
Alliance Global Partners Ltd is a brokerage and mandate administration firm. We contract under the Kingdom Sovereign Reserve name, which originates physical gold from verified sellers and places it with funded buyers, and we administer the mandate on both sides of every transaction. Every document in the chain is issued and executed by us in that capacity. We are not a broker passing paper between strangers: we hold the document chain for both sides, in a fixed order, so that neither party can be asked for something out of sequence.
2 What we ask of you
2.1 A Letter of Intent stating the monthly quantity you require, the country of delivery, and the bank that will issue your payment instrument.
2.2 A completed Client Information Sheet, with beneficial ownership, certificate of incorporation or trade licence, and passport copy of the signatory. We do not ask to obstruct you. We ask because the escrow agent and the seller's bank will, and it is better that we find a gap than that they do.
2.3 Proof of funds, exchanged against the seller's Proof of Gold at the Full Corporate Offer step. Not before, and not after.
2.4 A payment instrument that will authenticate by SWIFT. Whichever suits you — SBLC, DLC, MT103, MT760 or cash in vault — but it must survive authentication, because everything after that step depends on it.
2.5 That you do not approach the seller, the vault or the refiner directly once introduced. The non-circumvention clause is the only thing that makes a seller willing to be named at all.
2.6 A minimum of fifty kilogrammes per month. Below that the document chain and escrow costs outweigh the margin for everyone involved.
3 What we undertake
3.1 To offer you only verified product. We do not publish a position as available stock until assay, refiner, licence and title have been checked, and on larger positions a Verification Sheet is completed by the seller before any offer reaches you.
3.2 Not to disclose your identity, your funding or your destination to any seller before an NCNDA is executed.
3.3 That you or your appointed agent are invited to inspect at the vault before settlement, and may re-assay at your own cost.
3.4 That settlement runs through a structure agreed in writing before the SPA is lodged — an independent escrow agent, or a confirmed documentary credit issued by your bank. On either route your funds are not transmitted directly to the seller, and are released only against execution of the change of title. Fees due under the IMFPA are fixed beforehand and fall due on that same event, actioned by the escrow agent or paid by irrevocable assignment of the credit proceeds. You are not relying on the seller's goodwill, and neither are we.
3.5 To follow the same fourteen steps on the sell side that we follow on yours, in the same order, so that nothing has to be renegotiated when the two sides meet.
4 How a transaction runs
You issue an LOI and CIS. We match your requirement against verified sell-side stock and issue a Soft Corporate Offer, indicative and subject to contract. On acceptance a Full Corporate Offer follows, with proof of gold and proof of funds exchanged at that point. SPA, NCNDA and IMFPA are issued together and executed by both sides. The agreed settlement structure is executed — escrow arrangement or documentary credit — the buyer's instrument is authenticated by SWIFT, and the buyer or their agent inspects at the vault. Title transfers and funds release together, on each settlement.
Any additional requirement either side raises becomes an addendum, signed by both and attached. The fourteen steps themselves do not reorder.
5 Volume
As monthly volume through the desk rises, pricing improves in agreed tiers. The tonnage bands and rates are recorded separately and form part of no binding commitment until set out in an executed SPA.
| Indicative monthly volume | |
| Discount sought | |
| Payment instrument | |
| Product | |
| Country of delivery |
6 Confidentiality
Everything exchanged under this memorandum is confidential. Neither party will approach or transact with a counterparty introduced by the other otherwise than through Alliance Global Partners Ltd, for years. This clause survives the memorandum and is repeated, in binding form, in the NCNDA.
7 Standing and status
7.1 This memorandum is not a contract. It binds neither party to transact and creates no exclusivity unless separately agreed in writing.
7.2 This memorandum is governed by the law of England and Wales.
7.3 Either party may withdraw at any time by written notice, without liability, save for fee entitlements already accrued under an executed IMFPA on settlements completed.