Template:Nutshell EUA Annex (d)(i)(4)

(d)(i)(4) Settlement Disruption Event

(A) Notification: Either party may notify the other party in writing of a Settlement Disruption Event and the impacted Transactions. If the affected party is the one giving notice, it must also give details of the Settlement Disruption Event and a non-binding estimate of the extent and expected duration of its resultant inability to perform.

(B) Effect: Upon a Settlement Disruption Event both parties’ olibgations will be suspended, subject to Continuing Settlement Disruption Event below, until the Settlement Disruption Event is no longer preventing settlement. During the Settlement Disruption Event, the affected party must continue to use all reasonable endeavours to overcome it.

(C) Delayed Performance: Subject to Continuing Settlement Disruption Event below, once the Settlement Disruption Event no longer prevents settlement, both parties must, promptly and within two Delivery Business Days, resume their obligations under the relevant Transactions.

(D) Continuing Settlement Disruption Event: Where a Settlement Disruption Event continues:

(I) for 9 Delivery Business Days after the originally scheduled Delivery Date; or, if shorter:

(II) for the period ending on a Reconciliation Deadline falling on after the originally scheduled Delivery Date; or, if shorter:

(III) for the period ending on the day 3 Delivery Business Days before the End of Phase Reconciliation Deadline falling on or after the originally scheduled Delivery Date,

then at the end of the relevant period, an Illegality will occur where the relevant EU Emissions Allowance Transaction is the sole Affected Transaction, both parties are Affected Parties, no Waiting Period will apply and, if an Early Termination Date results, then, when determining any Early Termination Amount payable in respect of that Early Termination Date:

(i) if “Payment on Termination for Settlement Disruption” applies the requirement to perform the suspended obligations will resume on the Early Termination Date; or

(ii) if “Payment on Termination for Settlement Disruption” does not apply, the parties will have no further delivery or payment obligations under the Transaction after the Settlement Disruption Event (other than in respect of any Unpaid Amounts); provided that:

(i) Delivering Party must promptly refund to Receiving Party any amount Receiving Party paid under any Allowance Forward Transaction or Call; and

(ii) Receiving Party must promptly refund to Delivering Party any amount Delivering Party paid under a Put

other than in respect of delivered Allowances, together with interest on that amount in the same currency as that amount for the period from (and including) the date that amount was paid to (but excluding) the date of termination of the Transaction, at the rate certified by the party required to refund the amount to be a rate offered to such party by a major bank in a relevant interbank market for overnight deposits in the applicable currency, such bank to be selected in good faith by that party for purposes of obtaining a representative rate that will reasonably reflect conditions prevailing at the time in the relevant market.