Template:Nutshell Equity Derivatives 1.44

1.44. Knock-in Event.

(a) If “Knock-in Event” applies, a party’s right to exercise an Option under an Transaction such Option will be conditional upon the Knock-in Event occurring on any Knock-in Determination Day as of the time of such exercise and the parties’ respective rights and obligations will be altered from the occurrence of the Knock-in Event as specified in the Confirmation.

(b) “Knock-in Event” must be specified in the Confirmation. If it is not, but the Confirmation specifies a Knock-in Price for a Knock-in Reference Security that is also the specified Index, Share or Basket for that Transaction, the Knock-in Event will occur:

(i) If the Knock-in Price on the Trade Date was higher than the initial level set for the Transaction: when the level of the Knock-in Reference Security at the Knock-in Valuation Time on any Knock-in Determination Day is at least equal to the Knock-in Price; and

(ii) If the Knock-in Price on the Trade Date was lower than the initial level set for the Transaction: when the level of the Knock-in Reference Security at the Knock-in Valuation Time on any Knock-in Determination Day is equal to or lower than the Knock-in Price.

If the parties cannot agree whether a Knock-in Event has occurred, the Calculation Agent will decide.