Template:UKA Annex (e)

(e) Defined Terms and Interpretation
Administrator Event: Means the suspension of some or all of the processes of the Registry, the UKTL or, if applicable, the LSTL in accordance with Applicable Rules by the Relevant Authority:

(i) where the Registry is not operated and maintained in accordance with the provisions of 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 Relevant Authority considers that a security breach has occurred or there is a significant risk that a security breach will occur.

Affected Allowance: Means an Allowance which is or is alleged to have been the subject of an Unauthorised Transfer as confirmed by any Relevant Authority or any other authority having power pursuant to Applicable Rules to block, suspend, refuse, reject, cancel or otherwise affect the transfer (whether in whole or in part) of Allowances.
Aircraft Operator: Has the meaning given to such term in the ETS Order.
Allowance: Means, in respect of a UK Emissions Allowance Transaction, an allowance to emit one tonne of carbon dioxide equivalent created under Article 18 the ETS Order which is valid for meeting emissions related commitment obligations under the UK ETS and relates to the Specified Trading Period. For the avoidance of doubt, 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.
Allowance Forward Transaction means a UK Emissions Allowance Transaction identified as an Allowance Forward Transaction in the related Confirmation.
Allowance Option Transaction: Means a UK Emissions Allowance Transaction identified as an Allowance Option Transaction in the related Confirmation. An Allowance Option Transaction shall be an Option Transaction for purposes of the 2006 ISDA Definitions.
Allowance Purchase Price: Means, in respect of a UK Emissions Allowance Transaction which is an Allowance Forward Transaction, the amount specified or otherwise determined as provided in the related Confirmation.
Allowance Shortfall: Has the meaning given to such term in Part (d)(iii) (Partial Settlement).
Allowance Strike Price: Means, in respect of a UK Emissions Allowance Transaction which is an Allowance Option Transaction, the price per Allowance specified or otherwise determined as provided in the related Confirmation.
Allowances to be Delivered: Means, in respect of a UK Emissions Allowance Transaction that is:

(1) an Allowance Forward Transaction, a number of Allowances equal to the Number of Allowances; or

(2) an Allowance Option Transaction and in respect of an Exercise Date, a number of Allowances equal to the number of Options exercised or deemed exercised on that Exercise Date multiplied by the Option Entitlement.

Applicable Rules: Means any applicable law or regulation, or binding judgment or decision of any competent court, tribunal or Relevant Authority, in respect of the UK ETS, including (without limitation):

(1) the ETS Order;

(2) the Climate Change Act 2008;

(2 3) the Finance Act 2020 (and any relevant regulations made thereunder);

(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;

(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;

(5 6) Commission Delegated Regulation (EU) 2019/331 of 19 December 2018, as it forms part of UK domestic law; and

(6 7) Commission Implementing Regulation (EU) 2019/1842 of 31 October 2019, as it forms part of domestic law,

each as amended from time to time.
Authorised Person: Has the meaning given to such term in the ETS Order.
Authorised Representative: Has the meaning given to such term in the ETS Order.
Buyer: Means, in respect of a UK Emissions Allowance Transaction, the party specified as such in the related Confirmation.
Buy-In: Means the purchase of Allowances by Receiving Party in accordance with the procedures described in paragraph (2) of the definition of Receiving Party’s Replacement Cost in this Part (e) (Defined Terms and Interpretation).
Buy-In Period: Has the meaning given to such term in the definition of Receiving Party’s Replacement Cost in this Part (e) (Defined Terms and Interpretation).
Calculation Agent: Means, in respect of a UK Emissions Allowance Transaction, the party specified as such in the related Confirmation.
Call: Means a type of an Allowance Option Transaction entitling, but not obligating, Buyer to purchase Allowances from Seller at the Allowance Strike Price per Allowance.
Close-out Cost of Carry Amount: Means an amount in GBP equal to: (a) the Close-out Cost of Carry Rate; multiplied by: (b)(i) in respect of an Allowance Forward Transaction, the Allowance Purchase Price; or (ii) in respect of an Allowance Option Transaction, the Allowance Strike Price; multiplied by: (c) the Close-out Cost of Carry Delay, divided by (d) 360. Close-out Cost of Carry Delay: Means the number of days in the period from (and including) the scheduled Payment Date to (but excluding) the date that would be the Payment Date if delivery had been made on the Final Delivery Date or Final Compliance Date (as the case may be).
Close-out Cost of Carry Rate: Means a rate equal to the Floating Rate that would be determined for the period from the scheduled Payment Date to the Early Termination Date, if the Reset Date were the date that would be the Payment Date if delivery had been made on the Final Delivery Date or Final Compliance Date (as the case may be) and the applicable Floating Rate Option were “GPB-SONIA-COMPOUND”.
Cost of Carry Amount: Means an amount in GBP equal to:

(a) the Cost of Carry Rate multiplied by:

(b)

(i) in respect of an Allowance Forward Transaction, the Allowance Purchase Price multiplied by the Number of Allowances delivered on or before the Delayed Delivery Date following the occurrence of a Suspension Event; or

(ii) in respect of an Allowance Option Transaction, the Allowance Strike Price multiplied by the Number of Allowances delivered on or before the Delayed Delivery Date following the occurrence of a Suspension Event;

multiplied by:

(c) the Cost of Carry Delay, divided by 360.

Cost of Carry Delay: Means the number of days in the period from (and including) the scheduled Payment Date to (but excluding) the Delayed Payment Date.
Cost of Carry Rate: Means a rate equal to the Floating Rate that would be determined for a Calculation Period commencing on (and including) the scheduled Payment Date and ending on (but excluding) the Delayed Payment Date, if the Reset Date were the last day of that Calculation Period and the applicable Floating Rate Option were “GBP-EONIA-OIS-COMPOUND”.
Deadline Shortfall: Has the meaning given to such term in Part (d)(xi) (Failure to Deliver (Alternative Method) – EEP Applicable).
Delayed Delivery Date: Has the meaning given to that term in Part (d)(i)(5)(B) (Effect of a Suspension Event).
Delayed Payment Date: Has the meaning given to that term in the definition of Payment Date in this (e) (Defined Terms and Interpretation).
Delivering Party: Means, in respect of a UK Emissions Allowance Transaction that is:

(1) an Allowance Forward Transaction, the Seller;

(2) an Allowance Option Transaction which is a Call, the Seller; or

(3) an Allowance Option Transaction which is a Put, the Buyer.

Delivering Party’s Delivery Business Day Location: Means, in respect of a UK Emissions Allowance Transaction, the place specified as such in the Confirmation for the relevant 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 Delivery Business Day Location for 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 UK Emissions Allowance Transaction is located; or

(iii) if no such address has been given, the place in which Delivering Party has its registered office.

Delivering Party’s Replacement Cost: Means in respect of a failure of Receiving Party to accept delivery of a number of Allowances (the “DPRC Shortfall”), an amount equal to:

(i)

(1) the Allowance Purchase Price or Allowance Strike Price, as applicable, as set out in the Confirmation for the relevant UK Emissions Allowance Transaction plus, in those circumstances in which the relevant termination of the parties’ obligations under “Physical Settlement” occurs following a Suspension Event, the Close-out Cost of Carry Amount; less

(2) the price (per Allowance) Delivering Party, acting in a commercially reasonable manner, does or would, in the determination of the Calculation Agent, receive in an arm’s length transaction concluded on the Final Compliance Date for an equivalent number of Allowances of the relevant Allowance Type to be delivered on the Final Compliance Date or, if later, the Delivery Business Day on which Allowances would be delivered in accordance with prevailing market practice under a spot transaction concluded on the Final Compliance Date; multiplied by:

(ii) the DPRC Shortfall; plus

(iii) interest at the Default Rate for the period from (and including) the Delivery Date to (but excluding) the date of termination in accordance with Part (d)(ii)(2)(B)(Failure to Comply Not Remedied) on an amount equal to the product of the DPRC Shortfall and an amount equal to the excess, if any, of the Allowance Purchase Price or Allowance Strike Price, as applicable, over the price determined pursuant to paragraph (i)(2) above.

Delivery Business Day: Means, in respect of a UK Emissions Allowance Transaction, any day, which is not a Saturday or Sunday, on which commercial banks are open for general business in both Delivering Party’s Delivery Business Day Location and the Receiving Party’s Delivery Business Day Location.
Delivery Date: Means, in respect of a UK Emissions Allowance Transaction, the date or dates specified as such in the related Confirmation (subject to any adjustment in accordance with Part (d)(i)(5) (Suspension Event)).
DPRC Shortfall: Has the meaning given to such term in the definition of Delivering Party’s Replacement Cost in this Part (e) (Defined Terms and Interpretation).
EEP Amount: Means an amount (expressed as an amount per Allowance) that Receiving Party determines, acting in good faith and using commercially reasonable procedures, to be its total losses and costs which result from Delivering Party’s failure to deliver the Shortfall to the extent that those losses and costs are not reflected elsewhere in the definition of Receiving Party’s Replacement Cost and to the extent that those losses and costs relate to:

(1) any Excess Emissions Penalty which Receiving Party must pay to the Relevant Authority in accordance with the terms of the UK ETS; and/or

(2) if “EEP Equivalent” is specified to be applicable in the Annex to this Part [7] or the Confirmation for the relevant UK Emissions Allowance Transaction, any amount which Receiving Party must pay to a third party in respect of any such penalty payable to any other party (including a Relevant Authority) by that third party as a result of Delivering Party’s failure to deliver the Shortfall.

EEP Non-delivery: Has the meaning given to such term in Part (d)(xi) (Failure to Deliver (Alternative Method) – EEP Applicable).
EEP Payment: Has the meaning given to such term in Part (d)(xi) (Failure to Deliver (Alternative Method) – EEP Applicable).
EEP Risk Period: Means, in respect of a UK Emissions Allowance Transaction and any Delivery Date, a period of time prior to the first succeeding Compliance Deadline, as specified in the related Confirmation.
Encumbrance Loss Amount: An amount reasonably determined by Receiving Party in good faith to be its total losses and costs in connection with a UK Emissions Allowance Transaction including, but not limited to, any loss of bargain, cost of funding or, at the election of 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 UK Emissions Allowance Transaction prior to the delivery of the written notice by Receiving Party and Receiving Party’s legal fees and out-of-pocket expenses but does not include Excess Emissions Penalty or any amount which Receiving Party must pay to a third party in respect of any such penalty payable to any other party (or Relevant Authority) by that third party. The parties agree that in circumstances where there was a breach of the No Encumbrances Obligation by Delivering Party caused by the transfer of an Affected Allowance, 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 Receiving Party by a third party consequent upon the transfer by Receiving Party of an Affected Allowance transferred to it by Delivering Party under a UK Emissions Allowance Transaction.
End of Trading Period Compliance Deadline: Means, in respect of a UK Emissions Allowance Transaction, the Compliance Deadline scheduled to fall in April 2031.
ETS Order: Means the Greenhouse Gas Emissions Trading Scheme Order 2020, as amended from time to time.
Excess Emissions Penalty: Has the meaning given to it in the ETS Order.
Expiration Date: Means, in respect of a UK Emissions Allowance Transaction which is an Allowance Option Transaction, the date specified as such in the related Confirmation (or determined pursuant to a method specified for such purpose) or, if that date is not a Business Day, the next following day that is a Business Day.
Final Compliance Date: Means, the date that is the second Delivery Business Day after notice is given under Part (d)(ii)(2) (Failure to Comply byReceiving Party) requiring Receiving Party to comply with Part (d)(vi) (Requirements under the Scheme) or, if earlier, the Compliance Deadline on or immediately following the relevant Delivery Date.
Final Delivery Date: Means, the date that is the second Delivery Business Day after notice is given under Part (d)(ii)(1) (Failure to Deliver by Delivering Party) requiring Delivering Party to remedy a failure to deliver or, if earlier, the Compliance Deadline on or immediately following the relevant Delivery Date.
First Trading Period: Means, in respect of Allowances, the period beginning on 1 January 2021 and ending on 31 December 2030.
Indemnifiable EEP: Has the meaning given to such term in Part (d)(xi) (Failure to Deliver (Alternative Method) – EEP Applicable).
Long-Stop Date: Means, in respect of a 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.
Multiple Exercise: Means:

(1) If “Multiple Exercise” is specified to be applicable to a UK Emissions Allowance Transaction which is an American Allowance Option Transaction or a Bermuda Allowance Option Transaction, 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 Minimum Number of Options or more than the Maximum Number of Options and, if a number is specified as “Integral Multiple” in the related 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 Business Day:

(A) more than the Maximum Number of Options will be deemed to be an exercise of the Maximum Number of Options (the number of Options exceeding the Maximum Number of Options being deemed to remain unexercised);

(B) less than the 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 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) “Minimum Number of Options” means, in respect of an Allowance Option Transaction to which Multiple Exercise is applicable, the number specified as such in the related Confirmation.

(4) “Maximum Number of Options” means, in respect of an Allowance Option Transaction to which Multiple Exercise is applicable, the number specified as such in the related Confirmation.

No Encumbrance Obligation: Has the meaning given to such term in Part (d)(vii) (No Encumbrances).
Notice of Exercise: Means, in respect of a UK Emissions Allowance Transaction which is an Allowance Option Transaction, an Option notice given by Buyer to Seller (which may be given orally (including by telephone) unless the parties specify otherwise in the related Confirmation) of its exercise of the right or rights granted pursuant to the Allowance Option Transaction during the hours specified in the relevant Confirmation on a Seller Business Day during the Exercise Period, which shall be irrevocable once effective. If the Notice of Exercise is received on any Seller Business Day after the latest time so specified, the Notice of Exercise will be deemed to have been received on the next following Seller Business Day, if any, in the Exercise Period. Buyer may exercise the right or rights granted pursuant to the Allowance Option Transaction only by giving a Notice of Exercise.
Number of Allowances: Means, in respect of a UK Emissions Allowance Transaction, the number specified as such in the related Confirmation.
Number of Options: Means, in respect of a UK Emissions Allowance Transaction which is an Allowance Option Transaction, the number specified as such in the related Confirmation, being the number of Options comprised in the relevant Allowance Option Transaction.
Operator Holding Account: Has the meaning given to such term in the ETS Order.
Option: Means, in respect of an Allowance Option Transaction, each unit into which the Option Transaction is divided for purposes of exercise or settlement.
Option Entitlement: Means, in respect of a UK Emissions Allowance Transaction which is an Allowance Option Transaction, the number of Allowances per Option specified as such in the related Confirmation. In the event that no Option Entitlement is specified in the related Confirmation, the Option Entitlement in respect of any Allowance Option Transaction shall be one Allowance per Option.
Original Affected Party: Means the person from whose account the Unauthorised Transfer of the Affected Allowance occurred.
Payment Date: Means, in respect of a UK Emissions Allowance Transaction, the date specified as such or otherwise determined pursuant to a method specified in the related Confirmation, provided that, in the case of delayed delivery pursuant to Part(d)(i)(5)(Suspension Event), the Payment Date shall be determined accordingly from the Delayed Delivery Date (such Payment Date being the “Delayed Payment Date”).
Potential Exercise Date: Means, in respect of a UK Emissions Allowance Transaction which is a Bermuda 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 Business Day.
Premium: Means, in respect of a UK Emissions Allowance Transaction which is an Allowance Option Transaction, the amount specified or otherwise determined as provided in the related Confirmation. If a Premium per Allowance is specified in the related Confirmation, the Premium shall be the product of the Premium per Allowance, the Number of Options and the Option Entitlement.
Put: Means a type of Allowance Option Transaction entitling, but not obligating, the Buyer to sell Allowances to Seller at the Allowance Strike Price per Allowance.
Receiving Party: Means, in respect of a UK Emissions Allowance Transaction that is:

(1) an Allowance Forward Transaction, the Buyer;

(2) an Allowance Option Transaction which is a Call, the Buyer; or

(3) an Allowance Option Transaction which is a Put, the Seller.

Receiving Party’s Delivery Business Day Location: Means, in respect of a UK Emissions Allowance Transaction, the place specified as such in the Confirmation for the relevant UK Emissions Allowance Transaction or, if a place is not so specified:

(i) the place specified in the Annex to this Part as the Delivery Business Day Location for Receiving Party; or

(ii) if no such place is specified, the place in which Receiving Party’s address for purposes of receiving notices connected with the relevant UK Emissions Allowance Transaction is located; or

(iii) if no such address has been given, the place in which Receiving Party has its registered office.

Receiving Party’s Replacement Cost means:

(1) if “Excess Emissions Penalty” is specified not to be applicable in the Annex to this Part or the Confirmation for the relevant UK Emissions Allowance Transaction, or if “Excess Emissions Penalty” is specified to be applicable and if an EEP Risk Period is specified in the Annex to this Part or in the Confirmation for the relevant UK Emissions Allowance Transaction but the Delivery Date falls outside the EEP Risk Period then, in respect of a failure to deliver a number of Allowances (the “RPRC Shortfall”), an amount equal to:

(A)

(I) the price (per Allowance) that 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 Final Delivery Date for an equivalent number of Allowances to be delivered on the Final Delivery Date or, if later, the Delivery Business Day on which Allowances would be delivered in accordance with prevailing market practice under a spot transaction concluded on the Final Delivery Date; less

(II) the Allowance Purchase Price or Allowance Strike Price, as applicable, as set out in the Confirmation for the relevant UK Emissions Allowance Transaction plus, in those circumstances in which the relevant termination of the parties’ obligations under “Physical Settlement” occurs following a Suspension Event, the Close-out Cost of Carry Amount; multiplied by:

(B) the RPRC Shortfall; plus

(C) interest at the Default Rate for the period from (and including) the 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 RPRC Shortfall and an amount equal to the excess, if any, of the price determined pursuant to paragraph (1)(A)(I) above over the Allowance Purchase Price or the Allowance Strike Price, as applicable; or

(2) if “Excess Emissions Penalty” is specified to be applicable in the Annex to this Part or the Confirmation for a UK Emissions Allowance Transaction and, if an EEP Risk Period is specified in the Annex to this Part or in the Confirmation for the relevant UK Emissions Allowance Transaction, the Delivery Date falls within the EEP Risk Period for the relevant UK Emissions Allowance Transaction, then, in respect of a failure to deliver a number of Allowances (the “Undelivered Allowances”), an amount equal to the sum of:

(A) either:

(I) if in one or more arm’s length transactions Receiving Party is able, using its reasonable endeavours, to purchase a number of Allowances to be delivered during the period from (but excluding) the Final Delivery Date to (and including) the Compliance Deadline on or immediately following the Delivery Date (the “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 Undelivered Allowances:

(X)

(1) the price (per Allowance) at which Receiving Party is able so to purchase the relevant number of Allowances; less

(2) (A) the Allowance Purchase Price or Allowance Strike Price, as applicable, for the Undelivered Allowances set out in the relevant Confirmation plus, (B) in those circumstances in which the relevant termination of the parties’ obligations under “Physical Settlement” occurs following a Suspension Event, the 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 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 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 Allowance Purchase Price or Allowance Strike Price, as applicable; or

(II) if in one or more arm’s length transactions Receiving Party, using its reasonable efforts, is unable to purchase a number of Allowances equivalent to the Undelivered Allowances to be delivered during the Buy-In Period:

(X) in respect of the number of Allowances for which 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 Undelivered Allowances minus the number of Allowances referred to in (II)(X) above (the “Shortfall”), the sum of:

(a)

(I) the price (per Allowance) at which 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 Compliance Deadline a number of Allowances equal to the Shortfall; less

(II) the Allowance Purchase Price or Allowance Strike Price, as applicable, for the Undelivered Allowances set out in the relevant Confirmation plus, in those circumstances in which the relevant termination of the parties’ obligations under “Physical Settlement” occurs following a Suspension Event, the Close-out Cost of Carry Amount; plus

(III) the EEP Amount; multiplied by:

(b) the Shortfall; plus

(c) onterest at the Default Rate for the period from (and including) the Delivery Date to (but excluding) the date 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 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 Allowance Purchase Price or the Allowance Strike Price, as applicable; and

(B) such reasonable costs and expenses which Receiving Party incurs as a direct result of Delivering Party’s failure to deliver the Shortfall to the extent that those costs and expenses are not reflected in paragraphs (A)(I) or (A)(II) above; or

(3) if “Failure to Deliver (Alternative Method)” is specified to be applicable in the Annex to this Part or the Confirmation for a UK Emissions Allowance Transaction, then, in respect of a failure to deliver a number of Allowances (the number of Allowances not so delivered being the “RPRC Shortfall”), an amount equal to:

(A)

(I) the price (per Allowance) 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 in accordance with prevailing market practice on the Final Delivery Date to purchase a number of Allowances equivalent to the RPRC Shortfall for delivery on the first Delivery Business Day on which transactions concluded on the Delivery Date would be settled in accordance with prevailing market practice; less

(II) the Allowance Purchase Price or Allowance Strike Price, as applicable, as set out in the Confirmation for such UK Emissions Allowance Transaction plus, in those circumstances in which the relevant termination of the parties’ obligations under “Physical Settlement” occurs following a Suspension Event, the Close-out Cost of Carry Amount; multiplied by:

(B) the RPRC Shortfall; plus

(C) interest at the Default Rate for the period from (and including) the Delivery Date to (but excluding) the Final Delivery Date on an amount equal to the product of the Allowance Purchase Price or the Allowance Strike Price, as applicable, and the RPRC Shortfall.

Registry: Has the meaning given to such term in the ETS Order.
Registry Operation: Means the establishment of and continuing functioning of the Registry. Regulator: Has the meaning given to such term when construed in accordance with Articles 9 to 13 of the ETS Order.
Registry Administrator: Has the meaning given to such term in the ETS Order.
Relevant Authority: Means any authority having power pursuant to Applicable Rules to administer the UK ETS, including (without limitation): (1) any Regulator, including any Authorised Person; (2) the UK ETS Authority; and(3) the Registry Administrator.
RPRC Shortfall: Has the meaning given to such term in the definition of Receiving Party’s Replacement Cost in this Part (e) (Defined Terms and Interpretation).
Seller: Means, in respect of a UK Emissions Allowance Transaction, the party specified as such in the related Confirmation.
Seller Business Day: Means, in respect of a UK Emissions Allowance Transaction which is an 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.
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 Allowances in accordance with the terms of a UK Emissions Allowance Transaction.
For the avoidance of doubt, the inability of a party to deliver Allowances as a result of insufficient Allowances in the relevant Specified UK ETS Account, whether caused by the low or non-allocation of Allowances by a Registry Administrator, or the failure of a party to procure sufficient Allowances to meet its delivery obligations, shall not constitute a Settlement Disruption Event. This is not an exhaustive list of events which will not constitute a Settlement Disruption Event and is provided for the avoidance of doubt only.
If an event or circumstance which would otherwise constitute or give rise to a Settlement Disruption Event also constitutes a Suspension Event, it will be treated as a Suspension Event and will not constitute a Settlement Disruption Event.
Shortfall: Has the meaning given to such term in the definition of Receiving Party’s Replacement Cost in this Part (e) (Defined Terms and Interpretation).
Specified Trading Period: Means, in respect of an Allowance and a UK Emissions Allowance Transaction, the period as specified in the Confirmation for the relevant UK Emissions Allowance Transaction.
Specified UK ETS Account: Means, in respect of a party and a UK Emissions Allowance Transaction, the Account (if any) specified as such in respect of such party (i) in the Confirmation for the relevant UK Emissions Allowance Transaction; or (ii) where no such accounts are specified in accordance with (i), in the Annex to this Part.
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 UK Emissions Allowance Transaction and the UK ETS through the Registry as a result of the occurrence of any of the following events:

(i) absence of Registry Operation (other than by reason of the occurrence of an Administrator Event); or

(ii) the occurrence of an Administrator Event.

Trade Date: Means, in respect of a UK Emissions Allowance Transaction, the date specified in the related Confirmation.
Trading Account: Means a trading account opened under paragraph 14(4)(a) of Schedule 5A to the ETS Order.
UK ETS: Has the meaning given to such term in Article 16(1) of the ETS Order.
UK ETS Account: Means an Operator Holding Account, an Aircraft Operator Holding Account or a Trading Account, each in the Registry.
UK ETS Authority: Has the meaning given to such term in the ETS Order.
Unauthorised Transfer: Means the transfer by debiting of any Allowance from an account holder’s UK ETS Account and the crediting of a UK ETS Account of another person, where such transfer is not initiated by or on behalf of the first UK ETS Account or such account holder’s Authorised Representative.
Undelivered Allowances: Has the meaning given to such term in the definition of Receiving Party’s Replacement Cost in this Part (e) (Defined Terms and Interpretation).
VAT: Has the meaning given to such term in Part (d)(viii) (Value Added Taxes).
VAT Amount: Has the meaning given to such term in Part (d)(viii) (Value Added Taxes).
VAT Invoice: Has the meaning given to such term in Part (d)(viii) (Value Added Taxes).
VAT Jurisdiction: Means, in respect of a party and a UK Emissions Allowance Transaction, the place specified as such in the related Confirmation or, if a place is not so specified, the place specified in the Annex to this Part as the VAT Jurisdiction for such party.
Written Confirmation: Means, in respect of a party and a UK Emissions Allowance Transaction which is an Allowance Option Transaction, if “Written Confirmation” is specified to be applicable or if demanded by Seller (which demand, notwithstanding any provisions regarding notice applicable to the Allowance Option Transaction, may be given orally (including by telephone)), Buyer shall execute a written confirmation (including by facsimile transmission) confirming the substance of the Notice of Exercise and deliver the same to Seller. Buyer shall cause such executed written confirmation to be received by Seller within one Seller Business Day following the date that the Notice of Exercise or Seller’s demand, as the case may be, becomes effective.