Template:Nutshell Equity Derivatives 12.6(c): Difference between revisions

{{eqderivprov|12.6(c)}} For the purpose of determining the consequence of any {{eqderivprov|Nationalization}}, {{eqderivprov|Insolvency}} or {{eqderivprov|Delisting}}: <br>

:(i) “'''[[Negotiated Close-out (Extraordinary Events) - Equity Derivatives Provision|Negotiated Close-out]]'''” means that the parties may, but are not obliged, to terminate the {{eqderivprov|Transaction}} on mutually acceptable terms and if the parties do not agree to terminate the {{eqderivprov|Transaction}}, then it continues on the terms and subject to the conditions then in effect, provided, that any {{eqderivprov|Physically-settled}} {{eqderivprov|Transaction}} will, at the election of either party, become a {{eqderivprov|Transaction}} to which {{eqderivprov|Cash Settlement}} is applicable, except that if a {{eqderivprov|Scheduled Valuation Date}} is a {{eqderivprov|Disrupted Day}}, the {{eqderivprov|Calculation Agent}} will ignore the provisions of Section {{eqderivprov|6.6}} relating to {{eqderivprov|Disrupted Day}}s and will instead determine its good faith estimate of the {{eqderivprov|Settlement Price}} or {{eqderivprov|Final Price}} as of the {{eqderivprov|Valuation Time}} on that {{eqderivprov|Valuation Date}}; <br>

:(ii) “'''[[Cancellation and Payment (Extraordinary Events) - Equity Derivatives Provision|Cancellation and Payment]]'''” means that the {{eqderivprov|Transaction}} will be cancelled as of the {{eqderivprov|Announcement Date}} and (A) in the case of an {{eqderivprov|Option Transaction}}, {{eqderivprov|Seller}} will pay to {{eqderivprov|Buyer}} the amount calculated in accordance with Section {{eqderivprov|12.7(b)}}, and (B) in the case of a {{eqderivprov|Forward Transaction}} or an {{eqderivprov|Equity Swap Transaction}}, an amount calculated in accordance with Section {{eqderivprov|12.7(c)}} will be paid by one party to the other; and <br>

:(iii) “'''[[Partial Cancellation and Payment (Extraordinary Events) - Equity Derivatives Provision|Partial Cancellation and Payment]]'''” means that in respect of a {{eqderivprov|Share Basket Transaction}}, that portion of the {{eqderivprov|Share Basket Transaction}} represented by {{eqderivprov|Affected Shares}} will be cancelled as of the {{eqderivprov|Announcement Date}}, the amount calculated in accordance with Section {{eqderivprov|12.7}} in respect of such {{eqderivprov|Affected Shares}}, will be paid by one party to the other, the remainder of the {{eqderivprov|Share Basket Transaction}} will continue with the {{eqderivprov|Basket}} comprising {{eqderivprov|Shares}} that are not {{eqderivprov|Affected Shares}}, and the {{eqderivprov|Calculation Agent}} will adjust any relevant terms if necessary to preserve as nearly as practicable the economic terms of the {{eqderivprov|Transaction}} for the remaining {{eqderivprov|Shares}}. <br>