Emerald Trade maintains a cash reserve of every TENA sold to ensure it has ample reserves to buy-back emeralds at market price from TENA owners up to that amount. The history of buyers of rare-earth minerals that increase in value seldom liquidate or cash-in more than 20% per year of their holdings in such minerals. Based on that, Emerald Trade maintains cash reserves of 1.75 times that amount to provide TENA owners a market to sell into at market price. If needed, to access additional funds to cover appreciation that occurs after TENA sales, Emerald Trade maintains an inventory of unsold emeralds that is sufficient to cover future appreciation.

Emerald Trade‘s cash reserves and unsold emerald inventory and credit line (backed by that inventory) is audited annually and available to TENA owners for inspection on request.

In the event Emerald Trade involuntarily ceases doing business, all emeralds held in safekeeping for TENA beneficial owners, as well as all cash reserves pledged by Emerald Trade, and its unsold inventory of emeralds held by Wells Fargo, shall vest pro-rata to TENA owners and be divided accordingly at no cost to Wells Fargo. The Custody Agreement authorizes Wells Fargo to use Emerald Trade cash reserves to pay the costs to audit and distribute all the TENA linked emeralds, the Emerald Trade unsold inventory of emeralds, and the remaining cash reserves of Emerald Trade pledged to back TENA purchases. Once Wells Fargo distributes these emeralds and cash reserves to each TENA owner of record pursuant to the independent liquidation audit, Wells Fargo’s obligation as custodian will terminate and Wells Fargo will be held harmless in relation to all TENA beneficial owners at all times thereafter.