View source for Template:UKA Annex (e)

{{ukaprov|(e)}}	'''{{ukaprov|Defined Terms and Interpretation}}'''<br>
'''{{ukaprov|Administrator Event}}''': Means the suspension of some or all of the processes of the {{ukaprov|Registry}}, the {{ukaprov|UKTL}} or, if applicable, the {{ukaprov|LSTL}} in accordance with {{ukaprov|Applicable Rules}} by the {{ukaprov|Relevant Authority}}:
:(i) where the {{ukaprov|Registry}} is not operated and maintained in accordance with the provisions of {{ukaprov|Applicable Rules}}, or any other applicable law, or 
:(ii) for technical reasons, including (without limitation) for the purpose of carrying out scheduled or emergency maintenance, or 
:(iii) where the {{ukaprov|Relevant Authority}} considers that a security breach has occurred or there is a significant risk that a security breach will occur. <br>
'''{{ukaprov|Affected Allowance}}''': Means an {{ukaprov|Allowance}} which is or is alleged to have been the subject of an {{ukaprov|Unauthorised Transfer}} as confirmed by any {{ukaprov|Relevant Authority}} or any other authority having power pursuant to {{ukaprov|Applicable Rules}} to block, suspend, refuse, reject, cancel or otherwise affect the transfer (whether in whole or in part) of {{ukaprov|Allowances}}. <br>
'''{{ukaprov|Aircraft Operator}}''': Has the meaning given to such term in the {{ukaprov|ETS Order}}.<br>
'''{{ukaprov|Allowance}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}}, an allowance to emit one tonne of carbon dioxide equivalent created under Article 18 the {{ukaprov|ETS Order}} which is valid for meeting emissions related commitment obligations under the {{ukaprov|UK ETS}} and relates to the {{ukaprov|Specified Trading Period}}. For the avoidance of doubt, {{ukaprov|Allowance}} shall not include “Kyoto units” as such term is defined in the Greenhouse Gas Emissions (Kyoto Protocol Registry) Regulations 2021 as amended from time to time. <br>
'''{{ukaprov|Allowance Forward Transaction}}''' means a {{ukaprov|UK Emissions Allowance Transaction}} identified as an {{ukaprov|Allowance Forward Transaction}} in the related {{ukaprov|Confirmation}}. <br>
'''{{ukaprov|Allowance Option Transaction}}''': Means a {{ukaprov|UK Emissions Allowance Transaction}} identified as an {{ukaprov|Allowance Option Transaction}} in the related {{isdaprov|Confirmation}}. An {{ukaprov|Allowance Option Transaction}} shall be an {{isdadefsprov|Option Transaction}} for purposes of the {{ukaprov|2006 ISDA Definitions}}. <br>
'''{{ukaprov|Allowance Purchase Price}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}} which is an {{ukaprov|Allowance Forward Transaction}}, the amount specified or otherwise determined as provided in the related {{ukaprov|Confirmation}}. <br>
'''{{ukaprov|Allowance Shortfall}}''': Has the meaning given to such term in Part {{ukaprov|(d)(iii)}} (''{{ukaprov|Partial Settlement}}''). <br>
'''{{ukaprov|Allowance Strike Price}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}} which is an {{ukaprov|Allowance Option Transaction}}, the price per Allowance specified or otherwise determined as provided in the related Confirmation. <br>
'''{{ukaprov|Allowances to be Delivered}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}} that is: 
:(1) an {{ukaprov|Allowance Forward Transaction}}, a number of {{ukaprov|Allowances}} equal to the {{ukaprov|Number of Allowances}}; or 
:(2) an {{ukaprov|Allowance Option Transaction}} and in respect of an {{ukaprov|Exercise Date}}, a number of {{ukaprov|Allowances}} equal to the number of {{isdadefsprov|Option}}s exercised or deemed exercised on that Exercise Date multiplied by the {{ukaprov|Option Entitlement}}. <br>
'''{{ukaprov|Applicable Rules}}''': Means any applicable law or regulation, or binding judgment or decision of any competent court, tribunal or {{ukaprov|Relevant Authority}}, in respect of the {{ukaprov|UK ETS}}, including (without limitation):
:(1) the {{ukaprov|ETS Order}};
:(2) the Climate Change Act 2008;
:({{strike|2|3}}) the Finance Act 2020 (and any relevant regulations made thereunder);
:({{strike|3|4}}) Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council, as it forms part of UK domestic law;
:({{Strike|4|5}}) Commission Implementing Regulation (EU) 2018/2067 of 19 December 2018 on the verification of data and on the accreditation of verifiers pursuant to Directive 2003/87/EC of the European Parliament and of the Council, as it forms part of UK domestic law;
:({{strike|5|6}}) Commission Delegated Regulation (EU) 2019/331 of 19 December 2018, as it forms part of UK domestic law; and
:({{strike|6|7}}) Commission Implementing Regulation (EU) 2019/1842 of 31 October 2019, as it forms part of domestic law,<br>
each as amended from time to time.<br>
'''{{ukaprov|Authorised Person}}''': Has the meaning given to such term in the {{ukaprov|ETS Order}}. <br>
'''{{ukaprov|Authorised Representative}}''': Has the meaning given to such term in the {{ukaprov|ETS Order}}. <br>
'''{{ukaprov|Buyer}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}}, the party specified as such in the related {{isdaprov|Confirmation}}. <br>
'''{{ukaprov|Buy-In}}''': Means the purchase of {{ukaprov|Allowances}} by {{ukaprov|Receiving Party}} in accordance with the procedures described in paragraph (2) of the definition of {{ukaprov|Receiving Party’s Replacement Cost}} in this Part {{ukaprov|(e)}} (''{{ukaprov|Defined Terms and Interpretation}}''). <br>
'''{{ukaprov|Buy-In Period}}''': Has the meaning given to such term in the definition of {{ukaprov|Receiving Party’s Replacement Cost}} in this Part {{ukaprov|(e)}} (''{{ukaprov|Defined Terms and Interpretation}}'').<br>
'''{{ukaprov|Calculation Agent}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}}, the party specified as such in the related {{isdaprov|Confirmation}}. <br>
'''{{ukaprov|Call}}''': Means a type of an {{ukaprov|Allowance Option Transaction}} entitling, but not obligating, {{ukaprov|Buyer}} to purchase {{ukaprov|Allowances}} from {{ukaprov|Seller}} at the {{ukaprov|Allowance Strike Price}} per {{ukaprov|Allowance}}. <br>
'''{{ukaprov|Close-out Cost of Carry Amount}}''': Means an amount in GBP equal to: (a) the {{ukaprov|Close-out Cost of Carry Rate}}; multiplied by: (b)(i) in respect of an {{ukaprov|Allowance Forward Transaction}}, the {{ukaprov|Allowance Purchase Price}}; or (ii) in respect of an {{ukaprov|Allowance Option Transaction}}, the {{ukaprov|Allowance Strike Price}}; multiplied by: (c) the {{ukaprov|Close-out Cost of Carry Delay}}, divided by (d) 360.
'''{{ukaprov|Close-out Cost of Carry Delay}}''': Means the number of days in the period from (and including) the scheduled {{ukaprov|Payment Date}} to (but excluding) the date that would be the {{ukaprov|Payment Date}} if delivery had been made on the {{ukaprov|Final Delivery Date}} or {{ukaprov|Final Compliance Date}} (as the case may be). <br>
'''{{ukaprov|Close-out Cost of Carry Rate}}''': Means a rate equal to the {{isdadefsprov|Floating Rate}} that would be determined for the period from the scheduled {{ukaprov|Payment Date}} to the {{isdaprov|Early Termination Date}}, if the {{ukaprov|Reset Date}} were the date that would be the {{ukaprov|Payment Date}} if delivery had been made on the {{ukaprov|Final Delivery Date}} or {{ukaprov|Final Compliance Date}} ([[as the case may be]]) and the applicable {{isdadefsprov|Floating Rate Option}} were “GPB-SONIA-COMPOUND”. <br>
'''{{ukaprov|Cost of Carry Amount}}''': Means an amount in GBP equal to: 
:(a) the {{ukaprov|Cost of Carry Rate}} multiplied by:
:(b)
::(i)	in respect of an {{ukaprov|Allowance Forward Transaction}}, the {{ukaprov|Allowance Purchase Price}} multiplied by the {{ukaprov|Number of Allowances}} delivered on or before the {{ukaprov|Delayed Delivery Date}} following the occurrence of a {{ukaprov|Suspension Event}}; or
::(ii) in respect of an {{ukaprov|Allowance Option Transaction}}, the {{ukaprov|Allowance Strike Price}} multiplied by the {{ukaprov|Number of Allowances}} delivered on or before the {{ukaprov|Delayed Delivery Date}} following the occurrence of a {{ukaprov|Suspension Event}};
:multiplied by: 
:(c) the {{ukaprov|Cost of Carry Delay}}, divided by 360.<ref>Since {{icds}} elected to express a mathematical proposition on its own tortured prose, it is not entirely clear ''what'' is meant to be divided by 360: the stray comma suggests maybe it is meant to be a denominator for the whole sum, but we think it makes more sense to divide only the {{ukaprov|Cost of Carry Delay}} by 360, as that gets you an annualised day count fraction that the rest of the sum can be multiplied by. If you ignored the ambiguous comma, that is the most consistent with the paragraph layout. </ref>
'''{{ukaprov|Cost of Carry Delay}}''': Means the number of days in the period from (and including) the scheduled {{ukaprov|Payment Date}} to (but excluding) the {{ukaprov|Delayed Payment Date}}. <br>
'''{{ukaprov|Cost of Carry Rate}}''': Means a rate equal to the {{isdadefsprov|Floating Rate}} that would be determined for a {{ukaprov|Calculation Period}} commencing on (and including) the scheduled {{ukaprov|Payment Date}} and ending on (but excluding) the {{ukaprov|Delayed Payment Date}}, if the {{ukaprov|Reset Date}} were the last day of that {{ukaprov|Calculation Period}} and the applicable {{isdadefsprov|Floating Rate Option}} were “GBP-EONIA-OIS-COMPOUND”. <br>
'''{{ukaprov|Deadline Shortfall}}''': Has the meaning given to such term in Part {{ukaprov|(d)(xi)}} (''{{ukaprov|Failure to Deliver (Alternative Method) – EEP Applicable}}'').<br>
'''{{ukaprov|Delayed Delivery Date}}''': Has the meaning given to that term in Part {{ukaprov|(d)(i)(5)}}(B) (''{{ukaprov|Effect of a Suspension Event''}}).<br>
'''{{ukaprov|Delayed Payment Date}}''': Has the meaning given to that term in the definition of {{ukaprov|Payment Date}} in this {{ukaprov|(e)}} ({{ukaprov|Defined Terms and Interpretation}}). <BR>
'''{{ukaprov|Delivering Party}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}} that is: 
:(1) an {{ukaprov|Allowance Forward Transaction}}, the {{ukaprov|Seller}}; 
:(2) an {{ukaprov|Allowance Option Transaction}} which is a {{ukaprov|Call}}, the {{ukaprov|Seller}}; or 
:(3) an {{ukaprov|Allowance Option Transaction}} which is a {{ukaprov|Put}}, the {{ukaprov|Buyer}}. <br>
'''{{ukaprov|Delivering Party’s Delivery Business Day Location}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}}, the place specified as such in the {{ukaprov|Confirmation}} for the relevant {{ukaprov|UK Emissions Allowance Transaction}} or, if a place is not so specified: 
:(i) the place specified in the Annex to this Part [7] as the {{ukaprov|Delivery Business Day Location}} for {{ukaprov|Delivering Party}}; or 
:(ii) if no such place is specified, the place in which Seller’s address for purposes of receiving notices connected with the relevant {{ukaprov|UK Emissions Allowance Transaction}} is located; or 
:(iii) if no such address has been given, the place in which {{ukaprov|Delivering Party}} has its registered office. <br>
'''{{ukaprov|Delivering Party’s Replacement Cost}}''': Means in respect of a failure of {{ukaprov|Receiving Party}} to accept delivery of a number of {{ukaprov|Allowances}} (the “'''{{ukaprov|DPRC Shortfall}}'''”), an amount equal to:
:(i)
::(1) the {{ukaprov|Allowance Purchase Price}} or {{ukaprov|Allowance Strike Price}}, as applicable, as set out in the {{ukaprov|Confirmation}} for the relevant {{ukaprov|UK Emissions Allowance Transaction}} plus, in those circumstances in which the relevant termination of the parties’ obligations under “{{ukaprov|Physical Settlement}}” occurs following a {{ukaprov|Suspension Event}}, the {{ukaprov|Close-out Cost of Carry Amount}}; less
::(2) the price (per Allowance) {{ukaprov|Delivering Party}}, acting in a commercially reasonable manner, does or would, in the determination of the {{ukaprov|Calculation Agent}}, receive in an arm’s length transaction concluded on the {{ukaprov|Final Compliance Date}} for an equivalent number of {{ukaprov|Allowances}} of the relevant {{ukaprov|Allowance Type}} to be delivered on the {{ukaprov|Final Compliance Date}} or, if later, the {{ukaprov|Delivery Business Day}} on which {{ukaprov|Allowances}} would be delivered in accordance with prevailing market practice under a spot transaction concluded on the {{ukaprov|Final Compliance Date}}; multiplied by:
:(ii)	the {{ukaprov|DPRC Shortfall}}; plus
:(iii)	interest at the {{ukaprov|Default Rate}} for the period from (and including) the {{ukaprov|Delivery Date}} to (but excluding) the date of termination in accordance with Part {{ukaprov|(d)(ii)}}(2)(B)({{ukaprov|Failure to Comply Not Remedied}}) on an amount equal to the product of the {{ukaprov|DPRC Shortfall}} and an amount equal to the excess, if any, of the {{ukaprov|Allowance Purchase Price}} or {{ukaprov|Allowance Strike Price}}, as applicable, over the price determined pursuant to paragraph (i)(2) above. <br>
'''{{ukaprov|Delivery Business Day}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}}, any day, which is not a Saturday or Sunday, on which commercial banks are open for general business in both {{ukaprov|Delivering Party’s Delivery Business Day Location}} and the {{ukaprov|Receiving Party’s Delivery Business Day Location}}. <br>
'''{{ukaprov|Delivery Date}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}}, the date or dates specified as such in the related {{isdaprov|Confirmation}} (subject to any adjustment in accordance with Part {{ukaprov|(d)(i)(5)}} (''{{ukaprov|Suspension Event}}'')). <br>
'''{{ukaprov|DPRC Shortfall}}''': Has the meaning given to such term in the definition of {{ukaprov|Delivering Party’s Replacement Cost}} in this Part {{ukaprov|(e)}} (''{{ukaprov|Defined Terms and Interpretation}}''). <br>
'''{{ukaprov|EEP Amount}}''': Means an amount (expressed as an amount per {{ukaprov|Allowance}}) that {{ukaprov|Receiving Party}} determines, acting [[In good faith and a commercially reasonable manner|in good faith and using commercially reasonable procedures]], to be its total losses and costs which result from {{ukaprov|Delivering Party}}’s failure to deliver the {{ukaprov|Shortfall}} to the extent that those losses and costs are not reflected elsewhere in the definition of {{ukaprov|Receiving Party’s Replacement Cost}} and to the extent that those losses and costs relate to:
:(1)	any {{ukaprov|Excess Emissions Penalty}} which {{ukaprov|Receiving Party}} must pay to the {{ukaprov|Relevant Authority}} in accordance with the terms of the {{ukaprov|UK ETS}}; [[and/or]]
:(2)	if “{{ukaprov|EEP Equivalent}}” is specified to be applicable in the Annex to this Part [7] or the Confirmation for the relevant {{ukaprov|UK Emissions Allowance Transaction}}, any amount which {{ukaprov|Receiving Party}} must pay to a third party in respect of any such penalty payable to any other party (including a {{ukaprov|Relevant Authority}}) by that third party as a result of {{ukaprov|Delivering Party}}’s failure to deliver the {{ukaprov|Shortfall}}. <br>
'''{{ukaprov|EEP Non-delivery}}''': Has the meaning given to such term in Part {{ukaprov|(d)(xi)}} (''{{ukaprov|Failure to Deliver (Alternative Method) – EEP Applicable}}''). <br>
'''{{ukaprov|EEP Payment}}''': Has the meaning given to such term in Part {{ukaprov|(d)(xi)}} (''{{ukaprov|Failure to Deliver (Alternative Method) – EEP Applicable}}''). <br>
'''{{ukaprov|EEP Risk Period}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}} and any {{ukaprov|Delivery Date}}, a period of time prior to the first succeeding {{ukaprov|Compliance Deadline}}, as specified in the related Confirmation. <br>
'''{{ukaprov|Encumbrance Loss Amount}}''': An amount reasonably determined by {{ukaprov|Receiving Party}} [[in good faith]] to be its total losses and costs in connection with a {{ukaprov|UK Emissions Allowance Transaction}} including, but not limited to, any loss of bargain, cost of funding or, at the election of {{ukaprov|Receiving Party}} but without duplication, loss or costs incurred as a result of its terminating, liquidating, obtaining or re-establishing any hedge or related trading position. Such amount includes losses and costs in respect of any payment already made under a {{ukaprov|UK Emissions Allowance Transaction}} prior to the delivery of the written notice by {{ukaprov|Receiving Party}} and {{ukaprov|Receiving Party}}’s legal fees and out-of-pocket expenses but does not include {{ukaprov|Excess Emissions Penalty}} or any amount which {{ukaprov|Receiving Party}} must pay to a third party in respect of any such penalty payable to any other party (or {{ukaprov|Relevant Authority}}) by that third party. The parties agree that in circumstances where there was a breach of the {{ukaprov|No Encumbrances Obligation}} by {{ukaprov|Delivering Party}} caused by the transfer of an {{ukaprov|Affected Allowance}}, {{ukaprov|Receiving Party}} shall be entitled to include in such amount any losses arising out of or in connection with any claim, demand, action or proceeding brought against {{ukaprov|Receiving Party}} by a third party consequent upon the transfer by {{ukaprov|Receiving Party}} of an {{ukaprov|Affected Allowance}} transferred to it by {{ukaprov|Delivering Party}} under a {{ukaprov|UK Emissions Allowance Transaction}}. <br>
'''{{ukaprov|End of Trading Period Compliance Deadline}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}}, the {{ukaprov|Compliance Deadline}} scheduled to fall in April 2031. <br>
'''{{ukaprov|ETS Order}}''': Means the Greenhouse Gas Emissions Trading Scheme Order 2020, as amended from time to time. <br>
'''{{ukaprov|Excess Emissions Penalty}}''': Has the meaning given to it in the {{ukaprov|ETS Order}}. <br>
'''{{ukaprov|Expiration Date}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}} which is an {{ukaprov|Allowance Option Transaction}}, the date specified as such in the related {{isdaprov|Confirmation}} (or determined pursuant to a method specified for such purpose) or, if that date is not a {{ukaprov|Business Day}}, the next following day that is a {{ukaprov|Business Day}}. <br>
'''{{ukaprov|Final Compliance Date}}''': Means, the date that is the second {{ukaprov|Delivery Business Day}} after notice is given under Part {{ukaprov|(d)(ii)(2)}} (''{{ukaprov|Failure to Comply byReceiving Party}}'') requiring {{ukaprov|Receiving Party}} to comply with Part {{ukaprov|(d)(vi)}} (''{{ukaprov|Requirements under the Scheme}}'') or, if earlier, the {{ukaprov|Compliance Deadline}} on or immediately following the relevant {{ukaprov|Delivery Date}}. <br>
'''{{ukaprov|Final Delivery Date}}''': Means, the date that is the second {{ukaprov|Delivery Business Day}} after notice is given under Part {{ukaprov|(d)(ii)(1)}} (''{{ukaprov|Failure to Deliver by Delivering Party}}'') requiring {{ukaprov|Delivering Party}} to remedy a failure to deliver or, if earlier, the {{ukaprov|Compliance Deadline}} on or immediately following the relevant {{ukaprov|Delivery Date}}. <br>
'''{{ukaprov|First Trading Period}}''': Means, in respect of {{ukaprov|Allowances}}, the period beginning on 1 January 2021 and ending on 31 December 2030. <br>
'''{{ukaprov|Indemnifiable EEP}}''': Has the meaning given to such term in Part {{ukaprov|(d)(xi)}} (''{{ukaprov|Failure to Deliver (Alternative Method) – EEP Applicable}}''). <br>
'''{{ukaprov|Long-Stop Date}}''': Means, in respect of a {{ukaprov|Suspension Event}} that occurs with respect to a delivery or acceptance obligation that would otherwise be required to be performed within a calendar year, 31 March in the following year.<br>
'''{{ukaprov|Multiple Exercise}}''': Means: 
:(1)	If “{{ukaprov|Multiple Exercise}}” is specified to be applicable to a {{ukaprov|UK Emissions Allowance Transaction}} which is an American {{ukaprov|Allowance Option Transaction}} or a Bermuda {{ukaprov|Allowance Option Transaction}}, {{ukaprov|Buyer}} may exercise all or less than all the unexercised Options on one or more Business Days during the Exercise Period but (except as set forth below) on any such Business Day may not exercise less than the {{ukaprov|Minimum Number of Options}} or more than the {{ukaprov|Maximum Number of Options}} and, if a number is specified as “Integral Multiple” in the related {{isdaprov|Confirmation}}, the number of exercised Options must be equal to, or be an integral multiple of, the number so specified. Except as set forth below, any attempt to exercise on any such {{ukaprov|Business Day}}: 
::(A) more than the {{ukaprov| Maximum Number of Options}} will be deemed to be an exercise of the {{ukaprov|Maximum Number of Options}} (the number of Options exceeding the {{ukaprov|Maximum Number of Options}} being deemed to remain unexercised); 
::(B) less than the {{ukaprov|Minimum Number of Options}} will be ineffective; and 
::(C) an amount of Options not equal to or an integral multiple of the Integral Multiple will be deemed to be an exercise of a number of Options equal to the next lowest integral multiple of the Integral Multiple (the number of Options exceeding that number being deemed to remain unexercised). 
:(2)	Notwithstanding the foregoing, on any such Business Day, Buyer may exercise any number of Options that does not exceed the {{ukaprov|Maximum Number of Options}} if it exercises all the Options remaining unexercised. On the Expiration Date, Buyer may exercise any number of Options remaining unexercised. 
:(3)	“'''{{ukaprov|Minimum Number of Options}}'''” means, in respect of an {{ukaprov|Allowance Option Transaction}} to which {{ukaprov|Multiple Exercise}} is applicable, the number specified as such in the related Confirmation. 
:(4)	“'''{{ukaprov|Maximum Number of Options}}'''” means, in respect of an {{ukaprov|Allowance Option Transaction}} to which {{ukaprov|Multiple Exercise}} is applicable, the number specified as such in the related Confirmation. <br>
'''{{ukaprov|No Encumbrance Obligation}}''': Has the meaning given to such term in Part {{ukaprov|(d)(vii)}} (''{{ukaprov|No Encumbrances}}''). <br>
'''{{ukaprov|Notice of Exercise}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}} which is an {{ukaprov|Allowance Option Transaction}}, an Option notice given by {{ukaprov|Buyer}} to {{ukaprov|Seller}} (which may be given orally (including by telephone) unless the parties specify otherwise in the related {{isdaprov|Confirmation}}) of its exercise of the right or rights granted pursuant to the {{ukaprov|Allowance Option Transaction}} during the hours specified in the relevant {{isdaprov|Confirmation}} on a {{ukaprov|Seller Business Day}} during the {{ukaprov|Exercise Period}}, which shall be irrevocable once effective. If the {{ukaprov|Notice of Exercise}} is received on any {{ukaprov|Seller Business Day}} after the latest time so specified, the {{ukaprov|Notice of Exercise}} will be deemed to have been received on the next following {{ukaprov|Seller Business Day}}, if any, in the {{ukaprov|Exercise Period}}. {{ukaprov|Buyer}} may exercise the right or rights granted pursuant to the {{ukaprov|Allowance Option Transaction}} only by giving a {{ukaprov|Notice of Exercise}}. <br>
'''{{ukaprov|Number of Allowances}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}}, the number specified as such in the related {{ukaprov|Confirmation}}. <br>
'''{{ukaprov|Number of Options}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}} which is an {{ukaprov|Allowance Option Transaction}}, the number specified as such in the related {{isdaprov|Confirmation}}, being the number of Options comprised in the relevant {{ukaprov|Allowance Option Transaction}}. <br>
'''{{ukaprov|Operator Holding Account}}''': Has the meaning given to such term in the {{ukaprov|ETS Order}}. <br>
'''{{ukaprov|Option}}''': Means, in respect of an {{ukaprov|Allowance Option Transaction}}, each unit into which the Option Transaction is divided for purposes of exercise or settlement. <br>
'''{{ukaprov|Option Entitlement}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}} which is an {{ukaprov|Allowance Option Transaction}}, the number of {{ukaprov|Allowances}} per Option specified as such in the related {{isdaprov|Confirmation}}. In the event that no {{ukaprov|Option Entitlement}} is specified in the related {{isdaprov|Confirmation}}, the {{ukaprov|Option Entitlement}} in respect of any {{ukaprov|Allowance Option Transaction}} shall be one {{ukaprov|Allowance}} per Option. <br>
'''{{ukaprov|Original Affected Party}}''': Means the person from whose account the {{ukaprov|Unauthorised Transfer}} of the {{ukaprov|Affected Allowance}} occurred. <br>
'''{{ukaprov|Payment Date}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}}, the date specified as such or otherwise determined pursuant to a method specified in the related {{isdaprov|Confirmation}}, provided that, in the case of delayed delivery pursuant to Part(d)(i)(5)({{ukaprov|Suspension Event}}), the {{ukaprov|Payment Date}} shall be determined accordingly from the {{ukaprov|Delayed Delivery Date}} (such Payment Date being the “'''{{ukaprov|Delayed Payment Date}}'''”).<br>
'''{{ukaprov|Potential Exercise Date}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}} which is a Bermuda {{ukaprov|Allowance Option Transaction}}, each date specified as such in the related Confirmation or, if that date is not a Business Day, the next following day that is a {{ukaprov|Business Day}}.<br>
'''{{ukaprov|Premium}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}} which is an {{ukaprov|Allowance Option Transaction}}, the amount specified or otherwise determined as provided in the related Confirmation. If a {{ukaprov|Premium}} per {{ukaprov|Allowance}} is specified in the related {{isdaprov|Confirmation}}, the {{ukaprov|Premium}} shall be the product of the {{ukaprov|Premium}} per {{ukaprov|Allowance}}, the {{ukaprov|Number of Options}} and the {{ukaprov|Option Entitlement}}. <br>
'''{{ukaprov|Put}}''': Means a type of {{ukaprov|Allowance Option Transaction}} entitling, but not obligating, the {{ukaprov|Buyer}} to sell {{ukaprov|Allowances}} to {{ukaprov|Seller}} at the {{ukaprov|Allowance Strike Price}} per {{ukaprov|Allowance}}. <br>
'''{{ukaprov|Receiving Party}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}} that is: 
:(1) an {{ukaprov|Allowance Forward Transaction}}, the {{ukaprov|Buyer}}; 
:(2) an {{ukaprov|Allowance Option Transaction}} which is a {{ukaprov|Call}}, the {{ukaprov|Buyer}}; or 
:(3) an {{ukaprov|Allowance Option Transaction}} which is a {{ukaprov|Put}}, the {{ukaprov|Seller}}. <br>
'''{{ukaprov|Receiving Party’s Delivery Business Day Location}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}}, the place specified as such in the Confirmation for the relevant {{ukaprov|UK Emissions Allowance Transaction}} or, if a place is not so specified: 
:(i) the place specified in the Annex to this Part as the {{ukaprov|Delivery Business Day}} Location for {{ukaprov|Receiving Party}}; or 
:(ii) if no such place is specified, the place in which {{ukaprov|Receiving Party}}’s address for purposes of receiving notices connected with the relevant {{ukaprov|UK Emissions Allowance Transaction}} is located; or 
:(iii) if no such address has been given, the place in which {{ukaprov|Receiving Party}} has its registered office. <br>
'''{{ukaprov|Receiving Party’s Replacement Cost}}''' means: 
:(1)	if “{{ukaprov|Excess Emissions Penalty}}” is specified not to be applicable in the Annex to this Part or the {{isdaprov|Confirmation}} for the relevant {{ukaprov|UK Emissions Allowance Transaction}}, or if “{{ukaprov|Excess Emissions Penalty}}” is specified to be applicable and if an {{ukaprov|EEP Risk Period}} is specified in the Annex to this Part or in the {{isdaprov|Confirmation}} for the relevant {{ukaprov|UK Emissions Allowance Transaction}} but the {{ukaprov|Delivery Date}} falls outside the {{ukaprov|EEP Risk Period}} then, in respect of a failure to deliver a number of Allowances (the “'''{{ukaprov|RPRC Shortfall}}'''”), an amount equal to:
::(A)
:::(I)	the price (per Allowance) that {{ukaprov|Receiving Party}}, acting in a commercially reasonable manner, does or would, in the determination of the Calculation Agent, pay in an arm’s length transaction concluded on the {{ukaprov|Final Delivery Date}} for an equivalent number of Allowances to be delivered on the {{ukaprov|Final Delivery Date}} or, if later, the {{ukaprov|Delivery Business Day}} on which Allowances would be delivered in accordance with prevailing market practice under a spot transaction concluded on the {{ukaprov|Final Delivery Date}}; less
:::(II)	the {{ukaprov|Allowance Purchase Price}} or {{ukaprov|Allowance Strike Price}}, as applicable, as set out in the Confirmation for the relevant {{ukaprov|UK Emissions Allowance Transaction}} plus, in those circumstances in which the relevant termination of the parties’ obligations under “{{ukaprov|Physical Settlement}}” occurs following a {{ukaprov|Suspension Event}}, the {{ukaprov|Close-out Cost of Carry Amount}}; multiplied by:
::(B)	the {{ukaprov|RPRC Shortfall}}; plus
::(C)	interest at the Default Rate for the period from (and including) the {{ukaprov|Delivery Date}} to (but excluding) the date of termination in accordance with Part [7](d)(ii)(1)(B)(Failure to Deliver Not Remedied) on an amount equal to the product of the {{ukaprov|RPRC Shortfall}} and an amount equal to the excess, if any, of the price determined pursuant to paragraph (1)(A)(I) above over the {{ukaprov|Allowance Purchase Price}} or the {{ukaprov|Allowance Strike Price}}, as applicable; or
:(2)	if “{{ukaprov|Excess Emissions Penalty}}” is specified to be applicable in the Annex to this Part or the {{ukaprov|Confirmation}} for a {{ukaprov|UK Emissions Allowance Transaction}} and, if an {{ukaprov|EEP Risk Period}} is specified in the Annex to this Part or in the {{isdaprov|Confirmation}} for the relevant {{ukaprov|UK Emissions Allowance Transaction}}, the {{ukaprov|Delivery Date}} falls within the {{ukaprov|EEP Risk Period}} for the relevant {{ukaprov|UK Emissions Allowance Transaction}}, then, in respect of a failure to deliver a number of Allowances (the “'''{{ukaprov|Undelivered Allowances}}'''”), an amount equal to the sum of:
::(A)	either:
:::(I)	if in one or more arm’s length transactions {{ukaprov|Receiving Party}} is able, using its reasonable endeavours, to purchase a number of Allowances to be delivered during the period from (but excluding) the {{ukaprov|Final Delivery Date}} to (and including) the {{ukaprov|Compliance Deadline}} on or immediately following the {{ukaprov|Delivery Date}} (the “'''{{ukaprov|Buy-In Period}}'''”), which in respect of each such individual purchase of Allowances, when aggregated with other such purchases, amounts to a purchase of a number of Allowances equal to the number of {{ukaprov|Undelivered Allowances}}:
::::(X) 
:::::(1) the price (per Allowance) at which {{ukaprov|Receiving Party}} is able so to purchase the relevant number of Allowances; less 
:::::(2) (A) the {{ukaprov|Allowance Purchase Price}} or {{ukaprov|Allowance Strike Price}}, as applicable, for the {{ukaprov|Undelivered Allowances}} set out in the relevant Confirmation plus, (B) in those circumstances in which the relevant termination of the parties’ obligations under “{{ukaprov|Physical Settlement}}” occurs following a {{ukaprov|Suspension Event}}, the {{ukaprov|Close-out Cost of Carry Amount}}; multiplied by:
::::(Y) the number of Allowances to which such purchase relates; plus
::::(Z)	interest at the Default Rate for the period from (and including) the {{ukaprov|Delivery Date}} to (but excluding) the date of termination in accordance with Part [7](d)(ii)(1)(B)(Failure to Deliver Not Remedied) on an amount equal to the product of the number of {{ukaprov|Undelivered Allowances}} and an amount equal to the excess, if any, of the price determined pursuant to paragraph (2)(A)(I)(X)(1) above over the {{ukaprov|Allowance Purchase Price}} or {{ukaprov|Allowance Strike Price}}, as applicable; or
:::(II)	if in one or more arm’s length transactions {{ukaprov|Receiving Party}}, using its reasonable efforts, is unable to purchase a number of Allowances equivalent to the {{ukaprov|Undelivered Allowances}} to be delivered during the Buy-In Period:
::::(X)	in respect of the number of Allowances for which {{ukaprov|Receiving Party}} is able to effect a Buy-In during the Buy-In Period, an amount for such Allowances calculated in accordance with paragraph (I) above; and
::::(Y) 	in respect of a number of Allowances equal to the number of {{ukaprov|Undelivered Allowances}} minus the number of Allowances referred to in (II)(X) above (the “'''{{ukaprov|Shortfall}}'''”), the sum of:
:::::(a)
::::::(I) the price (per {{ukaprov|Allowance}}) at which {{ukaprov|Receiving Party}}, using its reasonable efforts and in an arm’s length transaction, is able to purchase as soon as reasonably possible for delivery after the {{ukaprov|Compliance Deadline}} a number of {{ukaprov|Allowances}} equal to the {{ukaprov|Shortfall}}; less
::::::(II) the {{ukaprov|Allowance Purchase Price}} or {{ukaprov|Allowance Strike Price}}, as applicable, for the {{ukaprov|Undelivered Allowances}} set out in the relevant {{ukaprov|Confirmation}} plus, in those circumstances in which the relevant termination of the parties’ obligations under “{{ukaprov|Physical Settlement}}” occurs following a {{ukaprov|Suspension Event}}, the {{ukaprov|Close-out Cost of Carry Amount}}; plus
::::::(III) the {{ukaprov|EEP Amount}}; multiplied by:
:::::(b) the {{ukaprov|Shortfall}}; plus
:::::(c) onterest at the {{ukaprov|Default Rate}} for the period from (and including) the {{ukaprov|Delivery Date}} to (but excluding) the date {{ukaprov|Receiving Party}} is or would be able to purchase Allowances in accordance with paragraph (II)(Y)(a)(1) above on an amount equal to the product of the number of {{ukaprov|Undelivered Allowances}} and an amount equal to the excess, if any, of the price determined pursuant to paragraph (II)(Y)(a)(1) above over the {{ukaprov|Allowance Purchase Price}} or the {{ukaprov|Allowance Strike Price}}, as applicable; and
::(B)	such reasonable costs and expenses which {{ukaprov|Receiving Party}} incurs as a direct result of {{ukaprov|Delivering Party}}’s failure to deliver the {{ukaprov|Shortfall}} to the extent that those costs and expenses are not reflected in paragraphs (A)(I) or (A)(II) above; or
:(3)	if “{{ukaprov|Failure to Deliver (Alternative Method)}}” is specified to be applicable in the Annex to this Part or the {{ukaprov|Confirmation}} for a {{ukaprov|UK Emissions Allowance Transaction}}, then, in respect of a failure to deliver a number of {{ukaprov|Allowances}} (the number of {{ukaprov|Allowances}} not so delivered being the “{{ukaprov|RPRC Shortfall}}”), an amount equal to:
::(A)
:::(I)	the price (per {{ukaprov|Allowance}}) {{ukaprov|Receiving Party}}, acting in a [[commercially reasonable manner]], does or would, in the determination of the {{ukaprov|Calculation Agent}}, pay in an arm’s length transaction concluded in accordance with prevailing market practice on the {{ukaprov|Final Delivery Date}} to purchase a number of {{ukaprov|Allowances}} equivalent to the {{ukaprov|RPRC Shortfall}} for delivery on the first {{ukaprov|Delivery Business Day}} on which transactions concluded on the {{ukaprov|Delivery Date}} would be settled in accordance with prevailing market practice; less
:::(II)	the {{ukaprov|Allowance Purchase Price}} or {{ukaprov|Allowance Strike Price}}, as applicable, as set out in the {{isdaprov|Confirmation}} for such {{ukaprov|UK Emissions Allowance Transaction}} plus, in those circumstances in which the relevant termination of the parties’ obligations under “{{ukaprov|Physical Settlement}}” occurs following a {{ukaprov|Suspension Event}}, the {{ukaprov|Close-out Cost of Carry Amount}}; multiplied by:
::(B)	the {{ukaprov|RPRC Shortfall}}; plus
::(C)	interest at the {{ukaprov|Default Rate}} for the period from (and including) the {{ukaprov|Delivery Date}} to (but excluding) the {{ukaprov|Final Delivery Date}} on an amount equal to the product of the {{ukaprov|Allowance Purchase Price}} or the {{ukaprov|Allowance Strike Price}}, as applicable, and the {{ukaprov|RPRC Shortfall}}. <br>
{{UKA Annex Registry}}
'''{{ukaprov|Registry Operation}}''': Means the establishment of and continuing functioning of the {{ukaprov|Registry}}.
'''{{ukaprov|Regulator}}''': Has the meaning given to such term when construed in accordance with Articles 9 to 13 of the {{ukaprov|ETS Order}}. <Br>
'''{{ukaprov|Registry Administrator}}''': Has the meaning given to such term in the ETS Order. <br>
'''{{ukaprov|Relevant Authority}}''': Means any authority having power pursuant to {{ukaprov|Applicable Rules}} to administer the {{ukaprov|UK ETS}}, including ([[without limitation]]): (1) any {{ukaprov|Regulator}}, including any {{ukaprov|Authorised Person}}; (2) the {{ukaprov|UK ETS Authority}}; and(3) the {{ukaprov|Registry Administrator}}. <br>
'''{{ukaprov|RPRC Shortfall}}''': Has the meaning given to such term in the definition of {{ukaprov|Receiving Party’s Replacement Cost}} in this Part {{ukaprov|(e)}} (''{{ukaprov|Defined Terms and Interpretation}}''). <br>
'''{{ukaprov|Seller}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}}, the party specified as such in the related {{isdaprov|Confirmation}}. <br>
'''{{ukaprov|Seller Business Day}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}} which is an {{ukaprov|Allowance Option Transaction}}, any day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in the city in which Seller is located for purposes of receiving notices. <br>
'''{{ukaprov|Settlement Disruption Event}}''': Means [[an event or circumstance]] beyond the control of the party affected that cannot, after the use of [[all reasonable efforts]], be overcome and which makes it impossible for that party to perform its obligations either to deliver or to accept {{ukaprov|Allowances}} in accordance with the terms of a {{ukaprov|UK Emissions Allowance Transaction}}. <br>
[[For the avoidance of doubt]], the inability of a party to deliver {{ukaprov|Allowances}} as a result of insufficient {{ukaprov|Allowances}} in the relevant {{ukaprov|Specified UK ETS Account}}, whether caused by the low or non-allocation of {{ukaprov|Allowances}} by a {{ukaprov|Registry Administrator}}, or the failure of a party to procure sufficient {{ukaprov|Allowances}} to meet its delivery obligations, shall not constitute a {{ukaprov|Settlement Disruption Event}}. This is not an exhaustive list of events which will not constitute a {{ukaprov|Settlement Disruption Event}} and is provided [[for the avoidance of doubt]] only. <br> 
If an [[an event or circumstance|event or circumstance]] which would otherwise [[constitute]] or give rise to a {{ukaprov|Settlement Disruption Event}} also [[constitute]]s a {{ukaprov|Suspension Event}}, it will be treated as a {{ukaprov|Suspension Event}} and will not constitute a {{ukaprov|Settlement Disruption Event}}.<br>
'''{{ukaprov|Shortfall}}''': Has the meaning given to such term in the definition of {{ukaprov|Receiving Party’s Replacement Cost}} in this Part {{ukaprov|(e)}} (''{{ukaprov|Defined Terms and Interpretation}}''). <br>
'''{{ukaprov|Specified Trading Period}}''': Means, in respect of an {{ukaprov|Allowance}} and a {{ukaprov|UK Emissions Allowance Transaction}}, the period as specified in the {{isdaprov|Confirmation}} for the relevant {{ukaprov|UK Emissions Allowance Transaction}}. <br>
'''{{ukaprov|Specified UK ETS Account}}''': Means, in respect of a party and a {{ukaprov|UK Emissions Allowance Transaction}}, the {{ukaprov|Account}} (if any) specified as such in respect of such party (i) in the Confirmation for the relevant {{ukaprov|UK Emissions Allowance Transaction}}; or (ii) where no such accounts are specified in accordance with (i), in the Annex to this Part. <br>
'''{{ukaprov|Suspension Event}}''': Means any date a party to the Agreement is unable to perform its delivery or acceptance obligations under and in accordance with a {{ukaprov|UK Emissions Allowance Transaction}} and the {{ukaprov|UK ETS}} through the {{ukaprov|Registry}} as a result of the occurrence of any of the following events:
:(i) absence of {{ukaprov|Registry Operation}} (other than by reason of the occurrence of an {{ukaprov|Administrator Event}}); or
:(ii) the occurrence of an {{ukaprov|Administrator Event}}.
'''{{ukaprov|Trade Date}}''': Means, in respect of a {{ukaprov|UK Emissions Allowance Transaction}}, the date specified in the related {{isdaprov|Confirmation}}. <br>
'''{{ukaprov|Trading Account}}''': Means a trading account opened under paragraph 14(4)(a) of Schedule 5A to the {{ukaprov|ETS Order}}. <br>
'''{{ukaprov|UK ETS}}''': Has the meaning given to such term in Article 16(1) of the {{ukaprov|ETS Order}}. <br>
'''{{ukaprov|UK ETS Account}}''': Means an Operator Holding Account, an Aircraft Operator Holding Account or a Trading Account, each in the Registry. <br>
'''{{ukaprov|UK ETS Authority}}''': Has the meaning given to such term in the ETS Order. <br>
'''{{ukaprov|Unauthorised Transfer}}''': Means the transfer by debiting of any {{ukaprov|Allowance}} from an account holder’s {{ukaprov|UK ETS Account}} and the crediting of a {{ukaprov|UK ETS Account}} of another person, where such transfer is not initiated by or on behalf of the first {{ukaprov|UK ETS Account}} or such account holder’s {{ukaprov|Authorised Representative}}. <br>
'''{{ukaprov|Undelivered Allowances}}''': Has the meaning given to such term in the definition of {{ukaprov|Receiving Party’s Replacement Cost}} in this Part {{ukaprov|(e)}} (''{{ukaprov|Defined Terms and Interpretation}}''). <br>
'''{{ukaprov|VAT}}''': Has the meaning given to such term in Part {{ukaprov|(d)(viii)}} (''{{ukaprov|Value Added Taxes}}''). <br>
'''{{ukaprov|VAT Amount}}''': Has the meaning given to such term in Part {{ukaprov|(d)(viii)}} (''{{ukaprov|Value Added Taxes}}''). <br>
'''{{ukaprov|VAT Invoice}}''': Has the meaning given to such term in Part {{ukaprov|(d)(viii)}} (''{{ukaprov|Value Added Taxes}}''). <br>
'''{{ukaprov|VAT Jurisdiction}}''': Means, in respect of a party and a {{ukaprov|UK Emissions Allowance Transaction}}, the place specified as such in the related {{isdaprov|Confirmation}} or, if a place is not so specified, the place specified in the Annex to this Part as the {{ukaprov|VAT Jurisdiction}} for such party. <br>
'''{{ukaprov|Written Confirmation}}''': Means, in respect of a party and a {{ukaprov|UK Emissions Allowance Transaction}} which is an {{ukaprov|Allowance Option Transaction}}, if “{{ukaprov|Written Confirmation}}” is specified to be applicable or if demanded by {{ukaprov|Seller}} (which demand, notwithstanding any provisions regarding notice applicable to the {{ukaprov|Allowance Option Transaction}}, may be given orally (including by telephone)), {{ukaprov|Buyer}} shall execute a written confirmation (including by facsimile transmission) confirming the substance of the {{ukaprov|Notice of Exercise}} and deliver the same to {{ukaprov|Seller}}. {{ukaprov|Buyer}} shall cause such executed written confirmation to be received by {{ukaprov|Seller}} within one {{ukaprov|Seller Business Day}} following the date that the {{ukaprov|Notice of Exercise}} or {{ukaprov|Seller}}’s demand, as the case may be, becomes effective. <br>