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The Egg Guaranteed Equity Bond (21 April 2008) is subject to the terms and conditions set out in the Egg Customer Relationship Agreement and the following Special Conditions:
1. In these Special Conditions:
"Bond" means the Egg Guaranteed Equity Bond (21 April 2008);
"Bond Term" means 21 April 2008 to the Maturity Date;
"Closing Date" means 7 April 2008, which is the end of the offering period;
"Exchange" means the London Stock Exchange plc;
"Index" means the FTSE 100;
"Index Day" means any day that is a trading day for the Index other than a day on which trading does not take place or the Exchange closes prior to its regular weekday closing time;
"Index End Level" means the average of the closing levels of the FTSE 100 over the last two months of the Bond; starting from 21 February 2013 to and including 22 April 2013;
"Index Start Level" means the average of the closing levels of the FTSE 100 over the first month of the Bond, starting from 21 April 2008 to and including 21 May 2008;
"Market Disruption" means any material suspension of or limitation imposed on trading on the Exchange in securities that comprise 20% or more of the level of the Index;
"Maturity Date" means 24 April 2013;
"Start Date" means 21 April 2008;
"We", "Us" and "Our" refer to Egg Banking plc;
"You" and "Your" means the individual or individuals subscribing to the Egg Guaranteed Equity Bond.
2. You confirm that you have read and understood the terms for the Bond as set out in this document, the indicative embedded charges contained in the Egg Bond brochure and that the final terms for the Bond will not be fixed until the Start Date. You confirm that you understand how any payment which you will receive if you hold the Bond until the Maturity Date will be calculated as set out in these Special Conditions. You agree to be bound by the Egg Customer Relationship Agreement and these Special Conditions.
3. "Guaranteed" when used in the context of the name of the Bond whether in these Special Conditions or in any literature or advertisement describing or promoting the Bond means that the deposit paid by you for the Bond will be repaid to you at the Maturity Date in accordance with our contractual obligation to do so.
4. The Bond is only available to completed applications by the Closing Date and cleared funds received by the Start Date.
5. The Bond is available for a limited period, subject to availability and may be withdrawn at any time prior to 21 April 2008, at our sole discretion. We reserve the right to refuse any application for the Bond.
6. It is a condition of any Bond that all sums allocated for the Bond are first paid into your Egg Savings Account (excluding Egg Cash ISA accounts). We will then transfer the amount you wish to deposit in the Bond from your Egg Savings Account on 21 April 2008. Any amount which is not cleared by 21 April 2008 cannot be transferred. If your application for the Bond is unsuccessful or we withdraw the Bond for any reason, any intended deposit for the Bond will remain in your Egg Savings Account. We will tell you in writing within 10 business days from 7 April 2008 if your application is unsuccessful or the Bond has been withdrawn. If the amount which you ask us to deposit in the Bond is greater than the cleared balance available on your Egg Savings Account on 21 April 2008 we may transfer the cleared funds from your Egg Savings Account up to an amount which leaves only a £1 balance.
7. You must deposit a minimum of £1,000 in the Bond. The maximum amount that you may deposit in the Bond is £1,000,000. You may not deposit additional amounts into the Bond during the Bond Term.
8. You must be at least 16 to apply for the Bond. You may apply for the Bond in your sole name or jointly with one other person. If you are applying jointly the funds deposited in the Bond must come from an Egg Savings Account held in the same joint names as the Bond.
9. Any joint application with the exception of online applications for participation in the Bond must be signed by both applicants. For any joint application for the Bond that is made online we will act upon the instructions of either joint applicant provided that the Bond is held in the same joint names as the Egg Savings Account.
10. You have the right to cancel your instructions within 14 days from the offer Closing Date. Your cancellation notice must be made in writing and sent to:
Account Opening Team
Egg Banking plc
Riverside Road
Pride Park
Derby
DE99 3GG
11. After the 14 day cancellation period you are not permitted to cancel, make withdrawals from the Bond during the Bond Term or close the Bond before the Maturity Date.
12. At the end of a Bond Term any return will be based upon the performance of the FTSE 100 Index and calculated on the amount deposited in the Bond as follows: The Index End Level must be greater than the Index Start Level. If this is the case a fixed return of 45.00% will be paid. If not then only the capital will be returned.
We will take the average of the daily closing level of the FTSE 100 during the first month of the bond to give you the starting level. The end level will then be taken from an average of the daily closing level during the final two months of the bond.
13. The amount originally deposited in the Bond and any return will be paid on the Maturity Date into the Egg Savings Account from which the initial Bond deposit was made.
14. If for any reason the Index is discontinued, or the method of calculation of the Index changes, or if due to Market Disruption its calculation or publication is materially disrupted, changed or delayed, we will, as reasonable and appropriate:
(a) use the successor Index or an alternative or replacement Index, if the Index is discontinued, or;
(b) use a different method of calculating the value of shares quoted on the Index, if the method of calculation changes, or;
(c) omit an Index Day on which Market Disruption occurs, or use a different day/time for the valuation of the Index if there is Market Disruption.
15. You confirm that you understand that your initial deposit amount is only 100% guaranteed if you hold the Bond until the Maturity Date. If you wish to redeem your Bond prior to the Maturity Date you may not get back all of your initial deposit amount but will receive a redemption amount which we, at our sole discretion acting reasonably, deem to represent the market value of the Bond at that time.
16. The FTSE ™ 100 Index used to determine the return generated by the Bond is based solely on 'capital return'. This means that it does not take into account any dividends from the companies whose performance the Index tracks. FTSE also compiles a separate 'FTSE ® 100 Index' based on 'total return' which does take dividends into account, but this is not the Index used for the purpose of the Bond. Index provider disclosure: The Bond is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited ('FTSE') or by the London Stock Exchange Plc ('LSE') or by The Financial Times Limited ('FT') and neither FTSE nor the LSE nor FT makes any warranty or representation whatsoever, expressly or impliedly either as to the results to be obtained from the use of the FTSE ™ 100 Index (the 'Index') and/or the figure at which the Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated solely by FTSE. However, neither FTSE nor the LSE nor FT shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor the LSE nor FT shall be under any obligation to advise any person of any error therein. FTSE ™, FT-SE ® and Footsie ® are trade marks of the London Stock Exchange Plc and The Financial Times Limited and are used by FTSE under licence. We do not make any promise about the future performance of the Bond relative to other products we offer or which are available generally.
17. If we cannot meet our financial obligations to you, you may be entitled to compensation under the Financial Services Compensation Scheme ("FSCS") established under the Financial Services and Markets Act 2000. Egg Banking plc is a member of the FSCS. Details of your rights under the FSCS are available from us on request and further information can also be obtained from the FSA or the FSCS website. Subject to the terms of the FSCS and the circumstances of the claim, at the date of this document, you could receive compensation of 100% up to a maximum of £35,000 deposited.
18. Any return made in relation to the Bond (including the return of your initial deposit amount where you hold the Bond until Maturity Date) will be subject to taxation as indicated in the Frequently Asked Questions section. We do not give tax advice. You agree that you are solely responsible for acquiring appropriate independent tax advice in relation to deposits in this Bond and we recommend that you seek the advice of a tax adviser in order to fully understand the way that the Bond will be treated for tax purposes. All returns on the Bond will be paid in accordance with the terms set out in this document.
19. You must keep the Egg Savings Account from which you made the initial Bond deposit open with a minimum balance of at least £1 until after the Maturity Date to enable us to make the payments described in Condition 13. If the Egg Savings Account from which you made the initial Bond deposit is closed for any reason, we will transfer any funds due on maturity to another Egg Savings Account held by you. If we discover after the Maturity Date that you do not have an open Egg Savings Account, we will contact you and request you to either open an Egg Savings Account so that the Bond proceeds can be paid into that account, or ask you to give us your bank details so that we can pay the Bond proceeds into a current account in your name (or joint names for a Bond held by joint holders). After the Maturity Date, Egg will not pay any more interest on the Bond proceeds until the Bond proceeds are paid into an Egg Savings Account.
20. You agree that we will act as custodian of the Bond and carry out the safekeeping functions for you. We may, however delegate such functions to a third party custodian or clearance system as we at our sole discretion deem appropriate and in accordance with the rules of the Financial Services Authority Handbook. We exclude liability for the acts and omissions of such custodian or clearance system to whom we might delegate our custodian functions to the extent permitted by applicable law and regulation.
21. No fees, expenses or charges will be deducted directly from your deposit monies or from any return which you may receive should you hold the Bond until maturity. However the terms upon which we acquired the Bond on your behalf reflect certain fees, expenses and charges. The embedded charges are not expected to exceed 2% p.a. We reserve the right to introduce additional fees, expenses or increase the embedded charges where this is necessary in order to meet additional expenses incurred by us as a direct consequence of a change in applicable law or regulation. In such circumstances we would give you 30 days' written notice of the introduction of the additional fee, expense or charge. You should be aware that there may be additional costs or taxes that you might be liable to pay that are not paid via us or imposed by us.
22. Your attention is drawn to the Egg Customer Relationship Agreement and the supporting information and the risk warnings therein. No warranty is given by us as to the performance or profitability of the Bond or the Index to whose performance it is linked. You must be aware that the price/value of the Bond can go down as well as up and that there is a degree of risk attached to stock market related products such as the Bond. You may not get back the initial amount you deposited if you do not hold the Bond until the Maturity Date. You are reminded that past performance is no guarantee of future returns. In the event of any failure, interruption or delay in the performance of our obligations resulting from any circumstances or event not reasonably within our control, we shall not be liable or have any responsibility of any kind for any loss or damage you incur or suffer as a result. We will not be liable for any loss you experience through a fall in the value of the Bond.
23. You hereby agree to indemnify us against any liabilities that might arise in connection with your participation in the Bond other than those caused directly by our negligence or a material breach of any applicable law or regulation or a material breach of this agreement.
24. You acknowledge and agree to these Special Conditions and that the Application Form shall be irrevocable by you after the bond start date.
25. We may from time to time change the terms of these conditions by giving not less than 30 days' written notice to you of any change.
26. These Special Conditions are governed by the English law and are subject to the exclusive jurisdiction of the Courts of England and Wales.
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