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Template:IETA Master Agreement 7: Difference between revisions
Template:IETA Master Agreement 7 (view source)
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{{ietaprov|7}} '''{{ietaprov|Option Transaction}}s'''<br> | {{ietaprov|7}} '''{{ietaprov|Option Transaction}}s'''<br> | ||
{{ietaprov|7.1}} The {{ietaprov|Premium}} in respect of the purchase of an {{ietaprov|Option}} shall be paid by the {{ietaprov|Buyer}} to the {{ietaprov|Seller}} on the {{ietaprov|Payment Due Date}} in relation to the relevant {{ietaprov|Option Transaction}}. For the avoidance of doubt, all payments in relation to any {{ietaprov|Transaction}} deemed to be entered into pursuant to clause {{ | {{ietaprov|7.1}} The {{ietaprov|Premium}} in respect of the purchase of an {{ietaprov|Option}} shall be paid by the {{ietaprov|Buyer}} to the {{ietaprov|Seller}} on the {{ietaprov|Payment Due Date}} in relation to the relevant {{ietaprov|Option Transaction}}. For the avoidance of doubt, all payments in relation to any {{ietaprov|Transaction}} deemed to be entered into pursuant to clause {{ietaprov|8}} (''{{ietaprov|Effect of Exercise}}'') will be made in accordance with the provisions of clause {{ietaprov|9}} (''{{ietaprov|Billing and Payment}}'') (to the extent that they do not relate to an {{ietaprov|Option Transaction}}). The Parties agree that any {{ietaprov|Option Transaction}} entered into between them shall be substantially in the form of {{ietaprov|Confirmation}} for {{ietaprov|Option Transaction}}s set out in {{ietaprov|Schedule 3B}} (''{{ietaprov|Form of Confirmation for Option Transactions}}'')).<br> | ||
{{ietaprov|7.2}} Where the {{ietaprov|Buyer}} exercises an {{ietaprov|Option}}, it may do so by giving notice within the {{ietaprov|Exercise Period}} for the relevant {{ietaprov|Option Transaction}}:<br> | {{ietaprov|7.2}} Where the {{ietaprov|Buyer}} exercises an {{ietaprov|Option}}, it may do so by giving notice within the {{ietaprov|Exercise Period}} for the relevant {{ietaprov|Option Transaction}}:<br> | ||
:{{ietaprov|7.2(a)}} in writing to the {{ietaprov|Seller}} in accordance with Clause {{ietaprov|18.5}} (Notices); or<br> | :{{ietaprov|7.2(a)}} in writing to the {{ietaprov|Seller}} in accordance with Clause {{ietaprov|18.5}} (Notices); or<br> | ||
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:(b) if received by the {{ietaprov|Seller}} at or prior to the {{ietaprov|Expiration Time}} on the {{ietaprov|Expiration Date}}, or | :(b) if received by the {{ietaprov|Seller}} at or prior to the {{ietaprov|Expiration Time}} on the {{ietaprov|Expiration Date}}, or | ||
:(c) if received by the {{ietaprov|Seller}} after 16:00 hours on any {{ietaprov|Banking Day}} other than the {{ietaprov|Expiration Date}}, as of 09:00 hours on the next following {{ietaprov|Banking Day}} (if any) in the {{ietaprov|Exercise Period}} or, in the alternative, on the {{ietaprov|Expiration Date}}.<br> | :(c) if received by the {{ietaprov|Seller}} after 16:00 hours on any {{ietaprov|Banking Day}} other than the {{ietaprov|Expiration Date}}, as of 09:00 hours on the next following {{ietaprov|Banking Day}} (if any) in the {{ietaprov|Exercise Period}} or, in the alternative, on the {{ietaprov|Expiration Date}}.<br> | ||
{{ietaprov|7.4}} The {{ietaprov|Buyer}} will, within three (3) {{ietaprov|Banking Day}}s after exercising such {{ietaprov|Option}} by giving notice orally, confirm such exercise by written notice to the {{ietaprov|Seller}} in accordance with Clause {{ietaprov|18.5}} (Notices). Any failure by the {{ietaprov|Buyer}} to send such written notice and/or any failure by the {{ietaprov|Seller}} to inform the {{ietaprov|Buyer}} of any inaccuracies in such written notice will not: (a) affect the validity or enforceability of the exercise of such {{ietaprov|Option}} or of the {{ietaprov|Option Transaction}} deemed to be entered into pursuant to Clause {{ | {{ietaprov|7.4}} The {{ietaprov|Buyer}} will, within three (3) {{ietaprov|Banking Day}}s after exercising such {{ietaprov|Option}} by giving notice orally, confirm such exercise by written notice to the {{ietaprov|Seller}} in accordance with Clause {{ietaprov|18.5}} (Notices). Any failure by the {{ietaprov|Buyer}} to send such written notice and/or any failure by the {{ietaprov|Seller}} to inform the {{ietaprov|Buyer}} of any inaccuracies in such written notice will not: (a) affect the validity or enforceability of the exercise of such {{ietaprov|Option}} or of the {{ietaprov|Option Transaction}} deemed to be entered into pursuant to Clause {{ietaprov|8}} (''{{ietaprov|Effect of Option Exercise}}''); or (b) be a material breach of obligations under this {{ietaprov|Agreement}} under Clause {{ietaprov|14.2(c)}} (''{{ietaprov|Material Obligations}}'').<br> | ||
{{ietaprov|7.5}} If the Parties agree in the relevant {{ietaprov|Confirmation}} that “'''{{ietaprov|Automatic Exercise}}'''” will apply in respect of an {{ietaprov|Option Transaction}}, then, unless the {{ietaprov|Seller}} is otherwise instructed by the {{ietaprov|Buyer}} at or prior to the {{ietaprov|Expiration Time}} in respect of an {{ietaprov|Option}}, that {{ietaprov|Option}} will have been deemed to have been exercised at the {{ietaprov|Expiration Time}} where the {{ietaprov|Positive Mark to Market Amount}} payable to the {{ietaprov|Buyer}} equals or exceeds the product of (a) ten per cent (10%) (or such other percentage as may have been agreed by the Parties) of the {{ietaprov|Strike Price}} and (b) the {{ietaprov|PTA Quantity}}.<br> | {{ietaprov|7.5}} If the Parties agree in the relevant {{ietaprov|Confirmation}} that “'''{{ietaprov|Automatic Exercise}}'''” will apply in respect of an {{ietaprov|Option Transaction}}, then, unless the {{ietaprov|Seller}} is otherwise instructed by the {{ietaprov|Buyer}} at or prior to the {{ietaprov|Expiration Time}} in respect of an {{ietaprov|Option}}, that {{ietaprov|Option}} will have been deemed to have been exercised at the {{ietaprov|Expiration Time}} where the {{ietaprov|Positive Mark to Market Amount}} payable to the {{ietaprov|Buyer}} equals or exceeds the product of (a) ten per cent (10%) (or such other percentage as may have been agreed by the Parties) of the {{ietaprov|Strike Price}} and (b) the {{ietaprov|PTA Quantity}}.<br> | ||
{{ietaprov|7.6}} For the purposes of this Clause {{ietaprov|7}}, “'''{{ietaprov|Positive Mark to Market Amount}}'''” means:<br> | {{ietaprov|7.6}} For the purposes of this Clause {{ietaprov|7}}, “'''{{ietaprov|Positive Mark to Market Amount}}'''” means:<br> | ||
:{{ietaprov|7.6(a)}} in the case of a {{ietaprov|Call Option}}, the amount, if any, by which (x) the product of the {{ietaprov|PTA Quantity}} times the {{ietaprov|Reference Price}} exceeds (y) the product of the {{ietaprov|PTA Quantity}} times the {{ietaprov|Strike Price}}; and<br> | :{{ietaprov|7.6(a)}} in the case of a {{ietaprov|Call Option}}, the amount, if any, by which (x) the product of the {{ietaprov|PTA Quantity}} times the {{ietaprov|Reference Price}} exceeds (y) the product of the {{ietaprov|PTA Quantity}} times the {{ietaprov|Strike Price}}; and<br> | ||
:{{ietaprov|7.6(b)}} in the case of a {{ietaprov|Put Option}}, the amount, if any, by which (x) the product of the {{ietaprov|PTA Quantity}} and the {{ietaprov|Strike Price}} exceeds (y) the product of the {{ietaprov|PTA Quantity}} times the {{ietaprov|Reference Price}}.<br> | :{{ietaprov|7.6(b)}} in the case of a {{ietaprov|Put Option}}, the amount, if any, by which (x) the product of the {{ietaprov|PTA Quantity}} and the {{ietaprov|Strike Price}} exceeds (y) the product of the {{ietaprov|PTA Quantity}} times the {{ietaprov|Reference Price}}.<br> | ||
{{ietaprov|7.7}} Where the {{ietaprov|Option}} is not exercised or deemed to be exercised in accordance with this Clause 7 by the {{ietaprov|Buyer}} at or prior to the {{ietaprov|Expiration Time}} on the {{ietaprov|Expiration Date}}, it will expire unexercised (except that any outstanding {{ietaprov|Premium}} will remain payable by the {{ietaprov|Buyer}} in accordance with Clause {{ietaprov|9}} (''{{ietaprov|Billing and Payment}}'')).<br> | {{ietaprov|7.7}} Where the {{ietaprov|Option}} is not exercised or deemed to be exercised in accordance with this Clause {{ietaprov|7}} by the {{ietaprov|Buyer}} at or prior to the {{ietaprov|Expiration Time}} on the {{ietaprov|Expiration Date}}, it will expire unexercised (except that any outstanding {{ietaprov|Premium}} will remain payable by the {{ietaprov|Buyer}} in accordance with Clause {{ietaprov|9}} (''{{ietaprov|Billing and Payment}}'')).<br> | ||