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{{euaprov|(a)}} '''{{euaprov|Scope}}'''<br>  
{{euaprov|(a)}} '''{{euaprov|Scope}}'''<br>  
This Annex applies to {{isdaprov|Transaction}}s that specify the {{euaprov|Fourth Compliance Period}} as the applicable “{{euaprov|Specified Compliance Period}}” (“'''{{euaprov|EU Emissions Allowance Transaction}}'''”s). <br>
This Annex applies to {{isdaprov|Transaction}}s that specify the {{euaprov|Fourth Compliance Period}} as the applicable “{{euaprov|Specified Compliance Period}}” (“'''{{euaprov|EU Emissions Allowance Transaction}}s'''”). <br>
{{euaprov|(b)}} '''{{euaprov|ISDA Definitions}}''' <br>
{{euaprov|(b)}} '''{{euaprov|ISDA Definitions}}''' <br>
The [[2006 ISDA Definitions]], are incorporated into this Annex. If there is any inconsistency between them and this Annex, this Annex will govern. <br>
The [[2006 ISDA Definitions]], are incorporated into this Annex. If there is any inconsistency between them and this Annex, this Annex will govern. <br>
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:(iii) the {{euaprov|Allowance Type}} (and {{euaprov|Specified Compliance Period}}); and <br>
:(iii) the {{euaprov|Allowance Type}} (and {{euaprov|Specified Compliance Period}}); and <br>
:(iv) the {{euaprov|Number of Allowances}}, <br>
:(iv) the {{euaprov|Number of Allowances}}, <br>
the relevant {{euaprov|EU Emissions Allowance Transaction}} will consist of a number of {{euaprov|EU Emissions Allowance Transaction}}s: each corresponding with one of the specified {{euaprov|Delivery Date}}s, and having the {{euaprov|Payment Date}}, {{euaprov|Allowance Purchase Price}}, {{euaprov|Allowance Type}} (and {{euaprov|Specified Compliance Period}}) and {{euaprov|Number of Allowances}} specified in that {{euaprov|Confirmation}} for that {{euaprov|Delivery Date}}. <br>  
the relevant {{euaprov|EU Emissions Allowance Transaction}} will consist of a number of {{euaprov|EU Emissions Allowance Transaction}}s: each corresponding with one of the specified {{euaprov|Delivery Date}}s, and having the specified {{euaprov|Payment Date}}, {{euaprov|Allowance Purchase Price}}, {{euaprov|Allowance Type}} (and {{euaprov|Specified Compliance Period}}) and {{euaprov|Number of Allowances}} for that {{euaprov|Delivery Date}}. <br>  
{{euaprov|(d)}}''' {{euaprov|Terms}}''' <br>
{{euaprov|(d)}}''' {{euaprov|Terms}}''' <br>
For each {{euaprov|EU Emissions Allowance Transaction}}: <br>
For each {{euaprov|EU Emissions Allowance Transaction}}: <br>
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:(B) '''{{euaprov|Allowance Option Transaction}}s''': for each {{euaprov|Exercise Date}}, on the relevant {{euaprov|Payment Date}} {{euaprov|Receiving Party}} must pay to {{euaprov|Delivering Party}} the {{euaprov|Allowance Strike Price}} multiplied by the {{euaprov|Number of Allowances}} to be {{euaprov|Delivered}} and on the relevant {{euaprov|Delivery Date}} {{euaprov|Delivering Party}} must deliver to {{euaprov|Receiving Party}} the {{euaprov|Allowances to be Delivered}}, and {{euaprov|Receiving Party}} must accept the {{euaprov|Allowances to be Delivered}}. <br>
:(B) '''{{euaprov|Allowance Option Transaction}}s''': for each {{euaprov|Exercise Date}}, on the relevant {{euaprov|Payment Date}} {{euaprov|Receiving Party}} must pay to {{euaprov|Delivering Party}} the {{euaprov|Allowance Strike Price}} multiplied by the {{euaprov|Number of Allowances}} to be {{euaprov|Delivered}} and on the relevant {{euaprov|Delivery Date}} {{euaprov|Delivering Party}} must deliver to {{euaprov|Receiving Party}} the {{euaprov|Allowances to be Delivered}}, and {{euaprov|Receiving Party}} must accept the {{euaprov|Allowances to be Delivered}}. <br>
{{euaprov|(d)(i)(2)}} '''{{euaprov|Delivery}}''' <br>
{{euaprov|(d)(i)(2)}} '''{{euaprov|Delivery}}''' <br>
:(A) Any obligation of {{euaprov|Delivering Party}} to deliver {{euaprov|Allowances}} under an {{euaprov|EU Emissions Allowance Transaction}} may be discharged by the completed transfer of those {{euaprov|Allowances}} from a {{euaprov|Holding Account}} of {{euaprov|Delivering Party}} under the {{euaprov|Scheme}}. A transfer will be completed when the relevant {{euaprov|Allowances}} are received at the relevant {{euaprov|Specified Holding Account}} of {{euaprov|Receiving Party}}, whereupon risk of loss of {{euaprov|Allowances}} transfers from {{euaprov|Delivering Party}} to {{euaprov|Receiving Party}}.
:(A) {{euaprov|Delivering Party}}’s obligation to deliver {{euaprov|Allowances}} under an {{euaprov|EU Emissions Allowance Transaction}} may be discharged by the completed transfer of those {{euaprov|Allowances}} from a {{euaprov|Holding Account}} of {{euaprov|Delivering Party}} under the {{euaprov|Scheme}}. A transfer will be completed when the relevant {{euaprov|Allowances}} are received at the relevant {{euaprov|Specified Holding Account}} of {{euaprov|Receiving Party}}, whereupon risk of loss of {{euaprov|Allowances}} transfers from {{euaprov|Delivering Party}} to {{euaprov|Receiving Party}}.
:(B) Notwithstanding Part {{euaprov|(d)(i)(2)}}(A) above, if {{euaprov|Delivering Party}} has any {{euaprov|Specified Holding Account}}s for the relevant {{euaprov|EU Emissions Allowance Transaction}}, {{euaprov|Delivering Party}}’s obligation to deliver {{euaprov|Allowances}} under an {{euaprov|EU Emissions Allowance Transaction}} shall be limited to an obligation to deliver from any such {{euaprov|Specified Holding Account}} of {{euaprov|Delivering Party}} to the relevant {{euaprov|Specified Holding Account}} of {{euaprov|Receiving Party}}.  
:(B) Notwithstanding Part {{euaprov|(d)(i)(2)}}(A) above, if {{euaprov|Delivering Party}} has any {{euaprov|Specified Holding Account}}s for the relevant {{euaprov|EU Emissions Allowance Transaction}}, {{euaprov|Delivering Party}}’s obligation to deliver {{euaprov|Allowances}} under an {{euaprov|EU Emissions Allowance Transaction}} shall be limited to an obligation to deliver from any such {{euaprov|Specified Holding Account}} of {{euaprov|Delivering Party}} to the relevant {{euaprov|Specified Holding Account}} of {{euaprov|Receiving Party}}.  
:(C) Where {{euaprov|Receiving Party}} has more than one {{euaprov|Specified Holding Account}} for an {{euaprov|EU Emissions Allowance Transaction}}, such {{euaprov|Specified Holding Account}}s are set out in order of preference. {{euaprov|Delivering Party}} must deliver the {{euaprov|Allowances to be Delivered}} to the first listed {{euaprov|Specified Holding Account}} of {{euaprov|Receiving Party}} on the {{euaprov|Delivery Date}} unless, for such {{euaprov|Receiving Party}}’s {{euaprov|Specified Holding Account}}, it is prevented from so doing by an event or circumstance that would be a {{euaprov|Settlement Disruption Event}} or a {{euaprov|Suspension Event}} if the first listed {{euaprov|Specified Holding Account}} of {{euaprov|Receiving Party}} were the only {{euaprov|Specified Holding Account}} so listed. In such circumstances,  this paragraph will apply iteratively to the next listed {{euaprov|Receiving Party}}’s {{euaprov|Specified Holding Account}} ([[if any]]).
:(C) Where {{euaprov|Receiving Party}} has more than one {{euaprov|Specified Holding Account}} for an {{euaprov|EU Emissions Allowance Transaction}}, such {{euaprov|Specified Holding Account}}s are set out in order of preference. {{euaprov|Delivering Party}} must deliver the {{euaprov|Allowances to be Delivered}} to the first listed {{euaprov|Specified Holding Account}} of {{euaprov|Receiving Party}} on the {{euaprov|Delivery Date}} unless, for such {{euaprov|Receiving Party}}’s {{euaprov|Specified Holding Account}}, it is prevented from so doing by an event or circumstance that would be a {{euaprov|Settlement Disruption Event}} or a {{euaprov|Suspension Event}} if the first listed {{euaprov|Specified Holding Account}} of {{euaprov|Receiving Party}} were the only {{euaprov|Specified Holding Account}} so listed. In such circumstances,  this paragraph will apply iteratively to the next listed {{euaprov|Receiving Party}}’s {{euaprov|Specified Holding Account}} ([[if any]]).
:(D) If a transfer of {{euaprov|Allowances}} is completed after 4:00 p.m., Central European Time, on a {{euaprov|Delivery Business Day}} or at any time on any day other than a {{euaprov|Delivery Business Day}}, then those {{euaprov|Allowances}} will be deemed to have been delivered at 10:00 a.m., Central European Time, on the next following {{euaprov|Delivery Business Day}}. If a transfer of {{euaprov|Allowances}} is completed before 10:00 a.m., Central European Time, on a {{euaprov|Delivery Business Day}}, then those {{euaprov|Allowances}} will be deemed to have been delivered at 10:00 a.m., Central European Time, on that day. <br>
:(D) If a transfer of {{euaprov|Allowances}} is completed after 4:00 p.m., Central European Time, on a {{euaprov|Delivery Business Day}} or at any time on any day other than a {{euaprov|Delivery Business Day}}, then those {{euaprov|Allowances}} will be deemed to have been delivered at 10:00 a.m., Central European Time, on the next following {{euaprov|Delivery Business Day}}. If a transfer of {{euaprov|Allowances}} is completed before 10:00 a.m., Central European Time, on a {{euaprov|Delivery Business Day}}, then those {{euaprov|Allowances}} will be deemed to have been delivered at 10:00 a.m., Central European Time, on that day. <br>
{{euaprov|(d)(i)(3)}} '''{{euaprov|Netting}}''': If on any date {{euaprov|Allowances}} of the same {{euaprov|Allowance Type}} and {{euaprov|Specified Compliance Period}} would otherwise be deliverable for two or more {{euaprov|EU Emissions Allowance Transaction}}s by each party to the other and, if applicable, between the same pair of {{euaprov|Holding Account}}s of the parties, then, on such date, each party’s obligation to make delivery of any such {{euaprov|Allowances}} will be automatically satisfied and discharged and, if the aggregate amount of {{euaprov|Allowances}} that would otherwise have been deliverable by one party exceeds the aggregate amount of {{euaprov|Allowances}} that would otherwise have been deliverable by the other party, replaced by an obligation upon the party by which the larger aggregate amount would have been deliverable to deliver to the other party the excess of the larger aggregate amount over the smaller aggregate amount. <br>
{{euaprov|(d)(i)(3)}} '''{{euaprov|Netting}}''': If on any date {{euaprov|Allowances}} of the same {{euaprov|Allowance Type}} and {{euaprov|Specified Compliance Period}} would otherwise be deliverable for several {{euaprov|EU Emissions Allowance Transaction}}s by each party to the other and, if applicable, between the same pair of {{euaprov|Holding Account}}s of the parties, then, on such date, each party’s obligation to make delivery of any such {{euaprov|Allowances}} will be automatically satisfied and discharged and, if the aggregate amount of {{euaprov|Allowances}} that would otherwise have been deliverable by one party exceeds the aggregate amount of {{euaprov|Allowances}} that would otherwise have been deliverable by the other party, replaced by an obligation upon the party by which the larger aggregate amount would have been deliverable to deliver to the other party the excess of the larger aggregate amount over the smaller aggregate amount. <br>
{{euaprov|(d)(i)(4)}} '''{{euaprov|Settlement Disruption Event}}'''
 
:(A) '''{{euaprov|Notification ofSettlement Disruption Event}}''': If there is a {{euaprov|Settlement Disruption Event}}, either party may notify the other party in writing of the commencement of the {{euaprov|Settlement Disruption Event}} and the {{euaprov|EU Emissions Allowance Transaction}}(s) affected by that {{euaprov|Settlement Disruption Event}}. Where the notification is from the party affected by the {{euaprov|Settlement Disruption Event}}, to the extent available to such party, it shall also provide details of the {{euaprov|Settlement Disruption Event}} and a non-binding estimate of the extent and the expected duration of its inability to perform its obligations due to the {{euaprov|Settlement Disruption Event}}.
 
:(B) '''Effect of {{euaprov|Settlement Disruption Event}}''': If a {{euaprov|Settlement Disruption Event}} occurs, the obligations of both parties which would otherwise be required to be performed with respect to the {{euaprov|EU Emissions Allowance Transaction}}(s) affected by the {{euaprov|Settlement Disruption Event}} will be suspended for the duration of the {{euaprov|Settlement Disruption Event}} and, subject to (d)(i)(4)(D) (Continuing Settlement Disruption Event) below, will not be required to be performed until the {{euaprov|Settlement Disruption Event}} is overcome or ceases to exist. During the continuation of the {{euaprov|Settlement Disruption Event}}, the party affected by the {{euaprov|Settlement Disruption Event}} shall continue to use all reasonable endeavours to overcome the {{euaprov|Settlement Disruption Event}}.
:(C) '''{{euaprov|Settlement Disruption Event}} Delayed Performance''': Subject to Part (d)(i)(4)(D)(''{{euaprov|Continuing Settlement Disruption Event}}'') below, upon the {{euaprov|Settlement Disruption Event}} being overcome or ceasing to subsist, both parties will be required, promptly but by the second {{euaprov|Delivery Business Day}} following the date upon which the {{euaprov|Settlement Disruption Event}} has been overcome or ceases to exist, to resume full performance of their obligations under this Agreement for the relevant {{euaprov|EU Emissions Allowance Transaction}}(s) (including, for the avoidance of doubt, any suspended obligations).
:(D) '''Continuing {{euaprov|Settlement Disruption Event}}''': for an {{euaprov|EU Emissions Allowance Transaction}} affected by a {{euaprov|Settlement Disruption Event}}, where the {{euaprov|Settlement Disruption Event}} continues:
::(I) during the period ending 9 {{euaprov|Delivery Business Day}}s after the original date that, but for the {{euaprov|Settlement Disruption Event}}, would have been the {{euaprov|Delivery Date}} for an {{euaprov|EU Emissions Allowance Transaction}}; or
::(II) if such 9 {{euaprov|Delivery Business Day}} period would end after the {{euaprov|Reconciliation Deadline}} on or immediately following the original date that, but for the {{euaprov|Settlement Disruption Event}}, would have been the {{euaprov|Delivery Date}} for an {{euaprov|EU Emissions Allowance Transaction}}, during the period ending on that {{euaprov|Reconciliation Deadline}}; or
::(III) if such 9 {{euaprov|Delivery Business Day}} period would end after the day that is 3 {{euaprov|Delivery Business Day}}s preceding the {{euaprov|End of Phase Reconciliation Deadline}} on or immediately following the original date that, but for the {{euaprov|Settlement Disruption Event}}, would have been the {{euaprov|Delivery Date}} for an {{euaprov|EU Emissions Allowance Transaction}}, during the period ending on the day that is 3 {{euaprov|Delivery Business Day}}s preceding that {{euaprov|End of Phase Reconciliation Deadline}},
:then on that 9th {{euaprov|Delivery Business Day}}, {{euaprov|Reconciliation Deadline}} or day that is 3 {{euaprov|Delivery Business Day}}s preceding the {{euaprov|End of Phase Reconciliation Deadline}} (as the case may be), an [Additional Termination Event][Illegality]<ref>If the form of Master Agreement in which this Annex is included is a {{1992ma}} the parties should specify “{{isdaprov|Additional Termination Event}}” or, if the form of Master Agreement which the Confirmation supplements is an {{2002ma}} the parties should specify “{{isdaprov|Illegality}}”.</ref> will have occurred for which the relevant {{euaprov|EU Emissions Allowance Transaction}} is the sole Affected Transaction, both parties are Affected Parties[, no Waiting Period will apply] and, if an {{isdaprov|Early Termination Date}} results from that {{isdaprov|Termination Event}}, then, for purposes of determining any amount payable under Section {{isdaprov|6(e)}} for that {{isdaprov|Early Termination Date}}:
::(i) if “'''{{euaprov|Payment on Termination for Settlement Disruption}}'''” applies, it will be deemed that the requirement to perform the suspended obligations resumed on the {{isdaprov|Early Termination Date}}; or
::(ii) if “'''{{euaprov|Payment on Termination for Settlement Disruption}}'''” does not applyit will be deemed that the parties had no further delivery or payment obligations for the {{euaprov|EU Emissions Allowance Transaction}} after the occurrence of the {{euaprov|Settlement Disruption Event}} (other than for any payment due by one party in connection with delivery obligations already performed by the other party); provided, however, that
:::(i) {{euaprov|Delivering Party}} must promptly refund to {{euaprov|Receiving Party}} any amount that may have been paid by {{euaprov|Receiving Party}} for the {{euaprov|EU Emissions Allowance Transaction}} that is an {{euaprov|Allowance Forward Transaction}} or a Call and
:::(ii) {{euaprov|Receiving Party}} must promptly refund to {{euaprov|Delivering Party}} any amount that may have been paid by {{euaprov|Delivering Party}} for an {{euaprov|EU Emissions Allowance Transaction}} that is a {{euaprov|Put}} (in each case, other than for delivered {{euaprov|Allowance}}s) together with interest on that amount in the same currency as that amount from the date that amount was paid until the date of termination of such {{euaprov|EU Emissions Allowance 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.
{{euaprov|(d)(i)(5)}} '''{{euaprov|Suspension Event}}''' <Br>
:(A) '''Notification of {{euaprov|Suspension Event}}''': If there is a {{euaprov|Suspension Event}}, the affected party must, as soon as reasonably practicable, notify the other party in writing. To the extent available to the party affected by the {{euaprov|Suspension Event}}, it shall also provide details of the {{euaprov|Suspension Event}} including a non-binding estimate of the duration of its inability to perform its obligations due to the {{euaprov|Suspension Event}}.
:(B) '''Effect of {{euaprov|Suspension Event}}''': Where a {{euaprov|Suspension Event}} occurs, the obligations of both parties which would otherwise be required to be performed with respect to the {{euaprov|EU Emissions Allowance Transaction}}(s) affected by the {{euaprov|Suspension Event}} will be suspended for the duration of the {{euaprov|Suspension Event}} and, subject to Part (d)(i)(5)(D)(Continuing {{euaprov|Suspension Event}}) below, will not be required to be performed until the {{euaprov|Suspension Event}} ceases to exist.
:(C) '''{{euaprov|Suspension Event}} Delayed Performance''': Subject to Part (d)(i)(5)(D)(Continuing {{euaprov|Suspension Event}}) below, upon the {{euaprov|Suspension Event}} ceasing to exist, both parties will be required to resume full performance of their obligations under this Agreement for the relevant {{euaprov|EU Emissions Allowance Transaction}} (including, for the avoidance of doubt, any suspended obligations) as soon as possible but no later than the day that is the earlier of: (i) the tenth {{euaprov|Delivery Business Day}} following the date on which the {{euaprov|Suspension Event}} ceases to exist; and (ii) 3 {{euaprov|Delivery Business Day}}s prior to the {{euaprov|End of Phase Reconciliation Deadline}} (the “{{euaprov|Delayed Delivery Date}}”).
:If the {{euaprov|Allowances to be Delivered}} are delivered to {{euaprov|Receiving Party}} by the {{euaprov|Delayed Delivery Date}} following the occurrence of a {{euaprov|Suspension Event}} as contemplated by Part (d)(i)(5)(B)(Effect of a {{euaprov|Suspension Event}}) above, {{euaprov|Receiving Party}} agrees to pay {{euaprov|Delivering Party}} on the {{euaprov|Delayed Payment Date}}:
::(I) for the purposes of an {{euaprov|Allowance Forward Transaction}}, the sum of: (X) {{euaprov|Allowance Purchase Price}} multiplied by the {{euaprov|Number of Allowances}} delivered by the relevant {{euaprov|Delayed Delivery Date}}; and (Y) the {{euaprov|Cost of Carry Amount}}; or
::(II) for the purposes of an {{euaprov|Allowance Option Transaction}}, the sum of: (X) the {{euaprov|Allowance Strike Price}} multiplied by the {{euaprov|Number of Allowances}} delivered by the relevant {{euaprov|Delayed Delivery Date}}; and (Y) the {{euaprov|Cost of Carry Amount}}.
:[[For the avoidance of doubt]], the {{euaprov|Cost of Carry Amount}} shall be identified in the relevant {{euaprov|VAT Invoice}} sent to {{euaprov|Receiving Party}}.
:(D) '''{{euaprov|Continuing Suspension Event}}''': Where:
::(I) a {{euaprov|Suspension Event}} continues to exist on the {{euaprov|Long-Stop Date}}, then an [Additional Termination Event]/[Illegality] will have occurred for which the relevant {{euaprov|EU Emissions Allowance Transaction}} is the sole Affected Transaction [,]/[and] both parties are Affected Parties [and no Waiting Period will apply]. The parties agree that the {{euaprov|Long-Stop Date}} will be the Early Termination Date for the purposes of the relevant {{euaprov|EU Emissions Allowance Transaction}}. For purposes of determining any amount payable under Section 6(e) for that Early Termination Date, it will be deemed that the parties had no further delivery or payment obligations for the {{euaprov|EU Emissions Allowance Transaction}} after the occurrence of the {{euaprov|Suspension Event}} (other than for any payment due by one party in connection with delivery obligations already performed by the other party); provided, however, that (i) {{euaprov|Delivering Party}} must promptly refund to {{euaprov|Receiving Party}} any amount that may have been paid by {{euaprov|Receiving Party}} for the {{euaprov|EU Emissions Allowance Transaction}} that is an {{euaprov|Allowance Forward Transaction}} or a Call and (ii) {{euaprov|Receiving Party}} must promptly refund to {{euaprov|Delivering Party}} any amount that may have been paid by {{euaprov|Delivering Party}} for an {{euaprov|EU Emissions Allowance Transaction}} that is a Put (in each case, other than for delivered Allowances) together with interest on that amount in the same currency as that amount from the date that amount was paid until the date of termination of such {{euaprov|EU Emissions Allowance 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. <br>
{{euaprov|(d)(ii)}} '''{{euaprov|Failure to Deliver}}'''.<br>
{{euaprov|(d)(ii)(1)}} '''{{eqderivprov|Failure to Deliver by Delivering Party}}'''<br>
If the failure to deliver occurs other than because of the failure of {{euaprov|Receiving Party}} to comply with the {{euaprov|Requirements under the Scheme}} as specified below, the existence of an {{euaprov|Illegality}}, the existence of a {{euaprov|Settlement Disruption Event}}, the existence of a {{euaprov|Suspension Event}} or an abandonment of the Scheme as described in Part [7]{{euaprov|(d)(iv)(1)}}, the {{euaprov|Payment Date}} will be postponed and {{euaprov|Receiving Party}} may, by notice to {{euaprov|Delivering Party}}, require {{euaprov|Delivering Party}} to remedy such failure, and the following provisions shall apply. <br>
:(A) '''{{euaprov|Failure to Deliver Remedied}}''': If {{euaprov|Delivering Party}} delivers the {{euaprov|Allowances to be Delivered}} by the {{euaprov|Final Delivery Date}}: <br>
::(X) for an {{euaprov|Allowance Forward Transaction}}, {{euaprov|Receiving Party}} must pay to {{euaprov|Delivering Party}} on the {{euaprov|Payment Date}} the {{euaprov|Allowance Purchase Price}} multiplied by the {{euaprov|Number of Allowances}} and, for an {{euaprov|Allowance Option Transaction}}, {{euaprov|Receiving Party}} must pay to {{euaprov|Delivering Party}} on the {{euaprov|Payment Date}} the {{euaprov|Allowance Strike Price}} multiplied by the number of {{euaprov|Allowances to be Delivered}} (and, in each case, for purposes of determining the {{euaprov|Payment Date}}, the date of actual delivery will be the {{euaprov|Delivery Date}}); and
::(Y) {{euaprov|Delivering Party}} must pay to {{euaprov|Receiving Party}} on the {{euaprov|Payment Date}} (determined under Part [7]{{euaprov|(d)(ii)(1)}}(A)(X) above) interest on the number of {{euaprov|Allowances}} that were required to be delivered on the {{euaprov|Delivery Date}} (but which were not delivered on such date) multiplied by either the {{euaprov|Allowance Purchase Price}} (for an {{euaprov|Allowance Forward Transaction}}) or the {{euaprov|Allowance Strike Price}} (for an {{euaprov|Allowance Option Transaction}}) from the original {{euaprov|Delivery Date}} until the date of actual delivery at the {{euaprov|Default Rate}}.<br>
:(B) '''{{euaprov|Failure to Deliver Not Remedied}}''': If the failure is not remedied by the {{euaprov|Final Delivery Date}}:<br>
::(X) if “{{euaprov|Excess Emissions Penalty}}” is specified not to be applicable in the Annex to this Annex or the {{euaprov|Confirmation}} for the relevant {{euaprov|EU Emissions Allowance Transaction}}, or if “{{euaprov|Excess Emissions Penalty}}” applies and an {{euaprov|EEP Risk Period}} is specified in that Confirmation but the {{euaprov|Delivery Date}} does not fall within that {{euaprov|EEP Risk Period}}, {{euaprov|Receiving Party}} may, by written notice to {{euaprov|Delivering Party}}, terminate the parties’ obligations under “{{euaprov|Physical Settlement}}” above and {{euaprov|Delivering Party}} must pay to {{euaprov|Receiving Party}} an amount determined under paragraph (1) of {{euaprov|Receiving Party’s Replacement Cost}} (if a positive number) on the first succeeding {{euaprov|Business Day}}, adjusted to take into account any amount previously paid (which, for the avoidance of doubt, shall not include any Premium paid by the Buyer for an {{euaprov|Allowance Option Transaction}}) by {{euaprov|Receiving Party}} to {{euaprov|Delivering Party}} for the relevant {{euaprov|EU Emissions Allowance Transaction}}; or
::(Y) if “{{euaprov|Excess Emissions Penalty}}” applies and, if an {{euaprov|EEP Risk Period}} is specified in the Confirmation for the relevant {{euaprov|EU Emissions Allowance Transaction}}, the {{euaprov|Delivery Date}} falls within that {{euaprov|EEP Risk Period}} for the relevant {{euaprov|EU Emissions Allowance Transaction}}, {{euaprov|Receiving Party}} may, by written notice to {{euaprov|Delivering Party}}, terminate the parties’ obligations under “Physical Settlement” above and {{euaprov|Delivering Party}} must pay to {{euaprov|Receiving Party}} an amount determined under paragraph (2) of {{euaprov|Receiving Party’s Replacement Cost}} (if a positive number) on the first Business Day following the day on which {{euaprov|Receiving Party}} is able to effect a {{euaprov|Buy-In}} (which may be a {{euaprov|Buy-In}}, on any such date, of less than the entire number of {{euaprov|Undelivered Allowances}}) if and to the extent that paragraphs (2)(A)(I) or (2)(A)(II)(X) of {{euaprov|Receiving Party’s Replacement Cost}} apply, or the first Business Day following the day on which {{euaprov|Receiving Party}} is able to effect a purchase of {{euaprov|Allowances}} under paragraph (2)(A)(II)(Y) of {{euaprov|Receiving Party’s Replacement Cost}}, if and to the extent that paragraph applies, in either case adjusted to take into account any amount previously paid (which, [[for the avoidance of doubt]], shall not include any Premium paid by the Buyer for an {{euaprov|Allowance Option Transaction}}) by {{euaprov|Receiving Party}} to {{euaprov|Delivering Party}} for the {{euaprov|EU Emissions Allowance Transaction}}; or
::(Z) if “Failure to Deliver (Alternative Method)” applies:
:::(aa) {{euaprov|Delivering Party}} must pay to {{euaprov|Receiving Party}}, on the first succeeding Business Day, an amount determined under paragraph (3) of {{euaprov|Receiving Party’s Replacement Cost}} (if a positive number), adjusted to take into account any amount previously paid (which, for the avoidance of doubt, shall not include any Premium paid by the Buyer for an {{euaprov|Allowance Option Transaction}}) by {{euaprov|Receiving Party}} to {{euaprov|Delivering Party}} for the relevant {{euaprov|EU Emissions Allowance Transaction}}, and upon payment of such amount, Delivering Party’s obligation to deliver to {{euaprov|Receiving Party}} the {{euaprov|Allowances to be Delivered}} shall be fully discharged and terminated; and
:::(bb) if “{{euaprov|Excess Emissions Penalty}}” applies, {{euaprov|Delivering Party}} must pay to {{euaprov|Receiving Party}} the amount, if any, determined under  Part [7] (d)(xi)(Failure to Deliver (Alternative Method) – EEP Applicable) below on the date determined under those provisions. <br>
:(2) '''{{euaprov|Failure to Comply by Receiving Party}}''': If the failure to deliver occurs because of the failure of {{euaprov|Receiving Party}} to comply with the {{euaprov|Requirements under the Scheme}} as specified below, the {{euaprov|Payment Date}} will be postponed and {{euaprov|Delivering Party}} may, by notice to {{euaprov|Receiving Party}}, require {{euaprov|Receiving Party}} so to comply, and the following provisions shall apply.
::(A) '''{{euaprov|Failure to Comply Remedied}}''': If {{euaprov|Receiving Party}} complies by the {{euaprov|Final Compliance Date}}:
:::(X) {{euaprov|Delivering Party}} must deliver to {{euaprov|Receiving Party}} the {{euaprov|Allowances to be Delivered}} and, for an {{euaprov|Allowance Forward Transaction}}, {{euaprov|Receiving Party}} must pay to {{euaprov|Delivering Party}} on the {{euaprov|Payment Date}} the {{euaprov|Allowance Purchase Price}} multiplied by the {{euaprov|Number of Allowances}} and, for an {{euaprov|Allowance Option Transaction}}, {{euaprov|Receiving Party}} must pay to {{euaprov|Delivering Party}} on the Payment Date the {{euaprov|Allowance Strike Price}} multiplied by the number of {{euaprov|Allowances to be Delivered}} (and, in each case, for purposes of determining the Payment Date, the date of actual delivery will be the {{euaprov|Delivery Date}}); and
:::(Y) {{euaprov|Receiving Party}} must pay to {{euaprov|Delivering Party}} on the {{euaprov|Payment Date}} (determined under Part {{euaprov|(d)(ii)(2)}}(A)(X) above) interest on the number of {{euaprov|Allowances}} that were required to be delivered on the {{euaprov|Delivery Date}} (but which were not delivered on that date) multiplied by the specified {{euaprov|Allowance Price}}from the original {{euaprov|Delivery Date}} until the date of actual delivery at the {{euaprov|Default Rate}}.
::(B) '''{{euaprov|Failure to Comply Not Remedied}}''': If {{euaprov|Receiving Party}} fails to comply by the {{euaprov|Final Compliance Date}}, {{euaprov|Delivering Party}} may, by written notice to {{euaprov|Receiving Party}}, terminate the parties’ obligations under “{{euaprov|Physical Settlement}}” above and {{euaprov|Receiving Party}} must pay to {{euaprov|Delivering Party}} {{euaprov|Delivering Party’s Replacement Cost}} (if a positive number) on the first succeeding {{euaprov|Business Day}}, adjusted to take into account any amount previously paid (which for the avoidance of doubt, shall not include any Premium paid by the Buyer for an {{euaprov|Allowance Option Transaction}}) by {{euaprov|Receiving Party}} to {{euaprov|Delivering Party}} for the relevant {{euaprov|EU Emissions Allowance Transaction}}. <br>
{{euaprov|(d)(ii)(3)}} '''{{euaprov|EEP Amount}}''': Subject to the paragraph below, if “{{euaprov|Excess Emissions Penalty}}” applies and because of {{euaprov|Delivering Party}}’s failure to deliver the {{euaprov|Allowances to be Delivered}} (in whole or in part) on the {{euaprov|Delivery Date}} {{euaprov|Receiving Party}} becomes liable to pay any {{euaprov|EEP Amount}}, then {{euaprov|Receiving Party}} shall provide to {{euaprov|Delivering Party}}, upon its reasonable request, evidence to the reasonable satisfaction of {{euaprov|Delivering Party}}:
:(A) that {{euaprov|Receiving Party}} has incurred an {{euaprov|EEP Amount}} consequent on Delivering Party’s failure to deliver the {{euaprov|Allowances to be Delivered}} (in whole or in part); and
:(B) the extent to which the requirement for {{euaprov|Receiving Party}} to pay any {{euaprov|EEP Amount}} results from Delivering Party’s failure to make such delivery; and
:(C) that {{euaprov|Receiving Party}} could not have used Allowances to which it had title in any {{euaprov|Holding Account}}(s) in any {{euaprov|Registry}} in order to avoid or reduce its liability to pay any {{euaprov|EEP Amount}} which it claims from {{euaprov|Delivering Party}} as part of {{euaprov|Receiving Party’s Replacement Cost}}. <br>
{{euaprov|Delivering Party}}’s obligation to pay any {{euaprov|EEP Amount}} under “{{euaprov|Failure to Deliver}}” under this Annex is subject to {{euaprov|Receiving Party}}’s overriding obligation to use its reasonable endeavours to avoid becoming liable for such {{euaprov|EEP Amount}} or, when liable, to mitigate the payment obligation in relation to such {{euaprov|EEP Amount}} and to allocate any such {{euaprov|EEP Amount}} pro rata between all counterparties of {{euaprov|Receiving Party}} that have failed to deliver Allowances to {{euaprov|Receiving Party}} provided, however, that where {{euaprov|Receiving Party}} confirms it has been unable to avoid becoming liable for any {{euaprov|EEP Amount}}, it shall be for {{euaprov|Delivering Party}} to show that it has been because of {{euaprov|Receiving Party}} failing to use its reasonable endeavours to do so. <br>
{{euaprov|(d)(iii)}} '''{{euaprov|Partial Settlement}}''' <br>
{{euaprov|(d)(iii)}} '''{{euaprov|Partial Settlement}}''' <br>
If, on the {{euaprov|Delivery Date}}, {{euaprov|Delivering Party}} delivers to {{euaprov|Receiving Party}} fewer {{euaprov|Allowances}} than the {{euaprov|Allowances to be Delivered}} (such shortfall the “'''{{euaprov|Allowance Shortfall}}'''”), {{euaprov|Receiving Party}}’s obligation to pay under {{euaprov|Physical Settlement}} above shall be reduced by the {{euaprov|Allowance Shortfall}} multiplied by either the {{euaprov|Allowance Purchase Price}} (for an {{euaprov|Allowance Forward Transaction}}) or the {{euaprov|Allowance Strike Price}} (for an {{euaprov|Allowance Option Transaction}}), and  “{{euaprov|Failure to Deliver}}” above will apply for the {{euaprov|Allowance Shortfall}} (with references to {{euaprov|Number of Allowances}} (in the case of an {{euaprov|Allowance Forward Transaction}}) and {{euaprov|Allowances to be Delivered}} (in the case of an {{euaprov|Allowance Option Transaction}}) being read as references to the {{euaprov|Allowance Shortfall}}). <br>
If, on the {{euaprov|Delivery Date}}, {{euaprov|Delivering Party}} delivers to {{euaprov|Receiving Party}} fewer {{euaprov|Allowances}} than the {{euaprov|Allowances to be Delivered}} (the “'''{{euaprov|Allowance Shortfall}}'''”), {{euaprov|Receiving Party}}’s obligation to pay under {{euaprov|Physical Settlement}} above shall be reduced by the {{euaprov|Allowance Shortfall}} multiplied by either the {{euaprov|Allowance Purchase Price}} (for an {{euaprov|Allowance Forward Transaction}}) or the {{euaprov|Allowance Strike Price}} (for an {{euaprov|Allowance Option Transaction}}), and  “{{euaprov|Failure to Deliver}}” above will apply for the {{euaprov|Allowance Shortfall}} (with references to {{euaprov|Number of Allowances}} (for an {{euaprov|Allowance Forward Transaction}}) and {{euaprov|Allowances to be Delivered}} (for an {{euaprov|Allowance Option Transaction}}) being read as references to the {{euaprov|Allowance Shortfall}}). <br>
{{euaprov|(d)(iv)}} '''{{euaprov|Abandonment of Scheme}}'''<br>
{{euaprov|(d)(iv)}} '''{{euaprov|Abandonment of Scheme}}'''<br>
(1) If before the {{euaprov|Delivery Date}} the Scheme is, because of official written public pronouncement by the European Community, no longer scheduled to proceed or is to be discontinued, either party may, by written notice to the other party, terminate the relevant {{euaprov|EU Emissions Allowance Transaction}}, in which case neither party shall have any further delivery or payment obligations under or for that {{euaprov|EU Emissions Allowance Transaction}} (other than for any payment due by one party in connection with delivery obligations already performed by the other party) and, [[for the avoidance of doubt]], a payment shall not be due under Section {{isdaprov|6(e)}} of the {{isdaprov|Agreement}} or otherwise for such termination. <br>
(1) If before the {{euaprov|Delivery Date}} the Scheme is, due to an official written public pronouncement by the European Community, no longer scheduled to proceed or is to be discontinued, either party may, by written notice to the other party, terminate the relevant {{euaprov|EU Emissions Allowance Transaction}}, in which case neither party shall have any further delivery or payment obligations under or for that {{euaprov|EU Emissions Allowance Transaction}} (other than for any payment due by one party in connection with delivery obligations already performed by the other party) and, a payment shall not be due under Section {{isdaprov|6(e)}} of the {{isdaprov|Agreement}} or otherwise for such termination. <br>
(2) If there is a termination under sub-clause (1) {{euaprov|Delivering Party}} must promptly refund to {{euaprov|Receiving Party}} any amount that may have been paid by {{euaprov|Receiving Party}} for the {{euaprov|EU Emissions Allowance Transaction}} that is an {{euaprov|Allowance Forward Transaction}} or a {{euaprov|Call}} and {{euaprov|Receiving Party}} must promptly refund to {{euaprov|Delivering Party}} any amount that may have been paid by {{euaprov|Delivering Party}} for an {{euaprov|EU Emissions Allowance Transaction}} which is a {{euaprov|Put}} together with interest on that amount in the same currency as that amount from the date that amount was paid until the date of termination of the {{euaprov|EU Emissions Allowance Transaction}} under sub-clause (1), 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. <br>
(2) If there is a termination under sub-clause (1) {{euaprov|Delivering Party}} must promptly refund to {{euaprov|Receiving Party}} any amount that may have been paid by {{euaprov|Receiving Party}} for the {{euaprov|EU Emissions Allowance Transaction}} that is an {{euaprov|Allowance Forward Transaction}} or a {{euaprov|Call}} and {{euaprov|Receiving Party}} must promptly refund to {{euaprov|Delivering Party}} any amount that may have been paid by {{euaprov|Delivering Party}} for an {{euaprov|EU Emissions Allowance Transaction}} which is a {{euaprov|Put}} together with interest on that amount in the same currency as that amount from the date that amount was paid until the date of termination of the {{euaprov|EU Emissions Allowance Transaction}} under sub-clause (1), 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. <br>
{{euaprov|(d)(v)}} '''{{euaprov|Invoicing}}'''<br>
{{euaprov|(d)(v)}} '''{{euaprov|Invoicing}}'''<br>


On or after the {{euaprov|Delivery Date}}, {{euaprov|Delivering Party}} shall send to {{euaprov|Receiving Party}} a valid VAT invoice (applicable in the jurisdiction of supply) setting forth the number of {{euaprov|Allowances}} delivered, or that would have been delivered but for  Part{{euaprov|(d)(i)(3)}}(''{{euaprov|Netting}}''), above, and the {{euaprov|Allowance Purchase Price}}(s) or {{euaprov|Allowance Strike Price}}(s), as applicable, stating the total amount payable by {{euaprov|Receiving Party}} and stating the amount of VAT, if any, properly chargeable thereon (a “'''{{euaprov|VAT Invoice}}'''”). <br>
From the {{euaprov|Delivery Date}}, {{euaprov|Delivering Party}} shall send to {{euaprov|Receiving Party}} a valid VAT invoice (applicable in the jurisdiction of supply) setting forth the number of {{euaprov|Allowances}} delivered, or that would have been delivered but for  Part {{euaprov|(d)(i)(3)}} (''{{euaprov|Netting}}''), above, and {{euaprov|Allowance Price}}s, stating the total amount payable by {{euaprov|Receiving Party}} and stating the amount of VAT, if any, properly chargeable thereon (a “'''{{euaprov|VAT Invoice}}'''”). <br>
{{euaprov|(d)(vi)}} '''{{euaprov|Requirements under the Scheme}}'''<br>
{{euaprov|(d)(vi)}} '''{{euaprov|Requirements under the Scheme}}'''<br>


Each party agrees with the other that, so long as either party has or may have any obligation under an {{euaprov|EU Emissions Allowance Transaction}}, it shall:
Each party agrees with the other that, so long as either party has or may have any obligation under an {{euaprov|EU Emissions Allowance Transaction}}, it shall:
:(1) ensure that on a {{euaprov|Delivery Date}} or {{euaprov|Delayed Delivery Date}} ([[as the case may be]]) it has any {{euaprov|Holding Account}}s validly registered under the {{euaprov|Registries Regulation}} and where it has any {{euaprov|Specified Holding Account}}s, ensure that on a {{euaprov|Delivery Date}} or {{euaprov|Delayed Delivery Date}} ([[as the case may be]]) it has all such {{euaprov|Specified Holding Account}}s validly registered under the {{euaprov|Registries Regulation}} ;
:(1) ensure that on a {{euaprov|Delivery Date}} or {{euaprov|Delayed Delivery Date}} ([[as the case may be]]) it has any {{euaprov|Holding Account}}s validly registered under the {{euaprov|Registries Regulation}} and where it has any {{euaprov|Specified Holding Account}}s, ensure that on a {{euaprov|Delivery Date}} or {{euaprov|Delayed Delivery Date}} ([[as the case may be]]) it has all such {{euaprov|Specified Holding Account}}s validly registered under the {{euaprov|Registries Regulation}} ;
:(2) where it is {{euaprov|Delivering Party}}, ensure that each {{euaprov|Specified Holding Account}} of {{euaprov|Receiving Party}} is nominated as a “trusted account” in its “trusted account list” for each of its {{euaprov|Specified Holding Account}}s (or other {{euaprov|Holding Account}}s, as applicable) for the purposes of the {{euaprov|Registries Regulation}}; and  
:(2) where it is {{euaprov|Delivering Party}}, ensure that each {{euaprov|Specified Holding Account}} of {{euaprov|Receiving Party}} is nominated as a “trusted account” in its “trusted account list” for each of its {{euaprov|Holding Account}}s for the purposes of the {{euaprov|Registries Regulation}}; and  
:(3) conduct its affairs so as not to give any {{euaprov|Relevant Authority}} cause to block, suspend, refuse, reject or cancel the transfer (whether in whole or in part) of Allowances requested to be made under any {{euaprov|EU Emissions Allowance Transaction}}. <br>  
:(3) conduct its affairs so as not to give any {{euaprov|Relevant Authority}} cause to block, suspend, refuse, reject or cancel the transfer (whether in whole or in part) of Allowances requested to be made under any {{euaprov|EU Emissions Allowance Transaction}}. <br>  
{{euaprov|(d)(vii)}} '''{{euaprov|No Encumbrances}}'''<br>


for each delivery of {{euaprov|Allowances}}, {{euaprov|Delivering Party}} must deliver {{euaprov|Allowances}}, free and clear of all [[Lien|liens]], [[Security interest|security interests]], claims and [[Encumbrance|encumbrances]] or any interest in or to them by any person (the “'''{{euaprov|No Encumbrance Obligation}}'''”).
 
Where a party is in breach of the {{euaprov|No Encumbrance Obligation}}, the following shall apply:
:(1) This {{isdaprov|Agreement}} and all other {{euaprov|Transactions}} agreed by the parties under this {{isdaprov|Agreement}} shall continue unaffected.
:(2) [[Without prejudice]] to any defences available to {{euaprov|Delivering Party}} (including, but not limited to, any defences of [[Statute of limitations|statutes of limitation]] or similar), following written notice of that breach from {{euaprov|Receiving Party}} to {{euaprov|Delivering Party}} (irrespective of how long after the relevant {{euaprov|Delivery Date}} such notice is provided) and subject to Part (d)(vii)(4) below, {{euaprov|Receiving Party}} shall:
::(A) determine the {{euaprov|Encumbrance Loss Amount}} arising from that breach either on the date such notice is deemed to be received or as soon as reasonably practicable thereafter; and
::(B) shall notify {{euaprov|Delivering Party}} of such {{euaprov|Encumbrance Loss Amount}} due, including detailed support for its calculation.
{{euaprov|Receiving Party}} is not required to enter into replacement transactions in order to determine the {{euaprov|Encumbrance Loss Amount}}.
:(3) By no later than the third (3rd) Business Day after the later of (i) receipt of a valid invoice in connection with such {{euaprov|Encumbrance Loss Amount}} and (ii) receipt of the above-mentioned notice including detailed support of {{euaprov|Receiving Party}}’s calculation of the {{euaprov|Encumbrance Loss Amount}}, {{euaprov|Delivering Party}} must pay the {{euaprov|Encumbrance Loss Amount}} to {{euaprov|Receiving Party}}, which amount shall bear interest at the {{euaprov|Default Rate}}. Upon payment of the {{euaprov|Encumbrance Loss Amount}} by {{euaprov|Delivering Party}}, the parties shall have no further obligations for that {{euaprov|EU Emissions Allowance Transaction}} and that breach. {{euaprov|Receiving Party}} acknowledges that its exclusive remedies for such breach are those set out in this Annex(d)(vii)(No Encumbrances).
:(4) Where a breach of the {{euaprov|No Encumbrances Obligation}} is caused by the transfer of an {{euaprov|Affected Allowance}}, {{euaprov|Delivering Party}} shall be liable for the {{euaprov|Encumbrance Loss Amount}} if, at the date it first acquired, received or purchased such {{euaprov|Affected Allowance}}, it was not acting [[in good faith]]; otherwise, {{euaprov|Delivering Party}} shall only be liable for the {{euaprov|Encumbrance Loss Amount}} (without prejudice to any other defences available to {{euaprov|Delivering Party}} [[including, but not limited to]], any defences of statutes of limitation or similar), if:
::(A) {{euaprov|Receiving Party}}, whether or not the holder of such {{euaprov|Affected Allowance}}, who is subject to a claim of the {{euaprov|Original Affected Party}}, has, in order to resist or avoid any {{euaprov|Encumbrance Loss Amount}} from arising, used its best endeavours to defend such a claim for that {{euaprov|Affected Allowance}} (including, if available, by relying on Article 40 of the {{euaprov|Registries Regulation}} or any equivalent legal principle under applicable national law) and was unsuccessful (other than for reasons of its own lack of good faith); or
::(B) {{euaprov|Receiving Party}}, whether or not the holder of such {{euaprov|Affected Allowance}}, who acted in good faith for its purchase of such {{euaprov|Affected Allowance}} and who is subject to a claim of a third party (other than the {{euaprov|Original Affected Party}}) for that {{euaprov|Affected Allowance}}, has used all reasonable endeavours to mitigate the {{euaprov|Encumbrance Loss Amount}}. <br>
{{euaprov|(d)(viii)}} '''{{euaprov|Value Added Taxes}}'''<br>
{{euaprov|(d)(viii)}} '''{{euaprov|Value Added Taxes}}'''<br>
:(1) All amounts referred to in this Annex or in a {{euaprov|Confirmation}} for an {{euaprov|EU Emissions Allowance Transaction}} are exclusive of any applicable {{euaprov|Value Added Taxes}} (“'''{{euaprov|VAT}}'''”) which are or may become chargeable for the supply or supplies for which such sums form the whole or part of the consideration for {{euaprov|VAT}} purposes, and any such {{euaprov|VAT}} shall be payable in addition to any such other consideration under the provisions set out below.
:(1) All amounts referred to in this Annex or in a {{euaprov|Confirmation}} for an {{euaprov|EU Emissions Allowance Transaction}} are exclusive of any applicable {{euaprov|Value Added Taxes}} (“'''{{euaprov|VAT}}'''”) which are or may become chargeable for the supply or supplies for which such sums form the whole or part of the consideration for {{euaprov|VAT}} purposes, and any such {{euaprov|VAT}} shall be payable in addition to any such other consideration under the provisions set out below.
Line 129: Line 75:
Each party agrees with the other, so long as either party has or may have any obligation under an {{euaprov|EU Emissions Allowance Transaction}}, as follows:
Each party agrees with the other, so long as either party has or may have any obligation under an {{euaprov|EU Emissions Allowance Transaction}}, as follows:
:(1) for {{euaprov|Receiving Party}}:
:(1) for {{euaprov|Receiving Party}}:
::(A) {{euaprov|Receiving Party}} shall ensure that any of such {{euaprov|Holding Account}}s registered under Part {{euaprov|(d)(vi)}}(''{{euaprov|Requirements under the Scheme}}'') above are specified in the Annex to this Annex or in the relevant {{isdaprov|Confirmation}}; and
::(A) {{euaprov|Receiving Party}} shall ensure that any of such {{euaprov|Holding Account}}s registered under Part {{euaprov|(d)(vi)}}(''{{euaprov|Requirements under the Scheme}}'') above are specified; and
::(B) {{euaprov|Receiving Party}} may from time to time (a) amend the order in which its {{euaprov|Specified Holding Account}}s are listed, (b) add a new {{euaprov|Specified Holding Account}} as the last on the list of {{euaprov|Specified Holding Account}}s, or (c) remove a {{euaprov|Specified Holding Account}} from those listed, in each case for an {{euaprov|EU Emissions Allowance Transaction}}, provided that it notifies {{euaprov|Delivering Party}} in writing of such amendment, addition or removal (including the provision of the relevant account details) no less than thirty (30) calendar days prior to the next {{euaprov|Delivery Date}} under that {{euaprov|EU Emissions Allowance Transaction}}, and provided further that in the case of (a) and / or (c), {{euaprov|Delivering Party}} notifies {{euaprov|Receiving Party}} in writing that it consents to such changes within five (5) {{euaprov|Delivery Business Day}}s of receiving such notice from {{euaprov|Receiving Party}};  
::(B) {{euaprov|Receiving Party}} may from time to time (a) amend the order in which its {{euaprov|Specified Holding Account}}s are listed, (b) add a new {{euaprov|Specified Holding Account}} as the last on the list of {{euaprov|Specified Holding Account}}s, or (c) remove a {{euaprov|Specified Holding Account}} from those listed, in each case for an {{euaprov|EU Emissions Allowance Transaction}}, provided that it notifies {{euaprov|Delivering Party}} in writing of such amendment, addition or removal (including the provision of the relevant account details) no less than thirty (30) calendar days prior to the next {{euaprov|Delivery Date}} under that {{euaprov|EU Emissions Allowance Transaction}}, and provided further that for (a) and / or (c), {{euaprov|Delivering Party}} notifies {{euaprov|Receiving Party}} in writing that it consents to such changes within five (5) {{euaprov|Delivery Business Day}}s of receiving such notice from {{euaprov|Receiving Party}};  
:(2) for {{euaprov|Delivering Party}}:  
:(2) for {{euaprov|Delivering Party}}:  
::(A) {{euaprov|Delivering Party}} may specify any of such {{euaprov|Holding Account}}s registered under Part 7 (d)(vi)(Requirements under the Scheme) above in the Annex to this Annex or in the relevant Confirmation; and
::(A) {{euaprov|Delivering Party}} may specify any of such {{euaprov|Holding Account}}s registered under Part 7 (d)(vi)(Requirements under the Scheme) above in the Annex to this Annex or in the relevant Confirmation; and
Line 136: Line 82:
----
----
{{euaprov|(e)}} '''{{euaprov|Defined Terms and Interpretation}}'''<br>
{{euaprov|(e)}} '''{{euaprov|Defined Terms and Interpretation}}'''<br>
'''{{euaprov|Administrator Event}}''': Means the suspension of some or all of the processes of a {{euaprov|Relevant Registry}}, the {{euaprov|EUTL}} or, if applicable, the {{euaprov|LSTL}} under the {{euaprov|Registries Regulation}} by the relevant {{euaprov|National Administrator}} or the {{euaprov|Central Administrator }}(as applicable)
 
:(i) where that {{euaprov|Relevant Registry}} is not operated and maintained under  the {{euaprov|Registries Regulation}}, or any other applicable law, or
 
:(ii) for the purpose of carrying out scheduled or emergency maintenance, or
:(iii) where there has been or following reasonable suspicion of, a breach of security which threatens the integrity of the registries system (including any back up facilities), or
:(iv) where the mutual recognition of {{euaprov|Allowances}} under a relevant {{euaprov|Linking Agreement}} has been suspended under the terms of such {{euaprov|Linking Agreement}}. <br>
'''{{euaprov|AEUA}}''' or '''{{euaprov|AEU Allowance}}''': Means an “allowance” as defined in the {{euaprov|Directive}} and which is issued under Chapter II thereof. <br>
'''{{euaprov|AEUA}}''' or '''{{euaprov|AEU Allowance}}''': Means an “allowance” as defined in the {{euaprov|Directive}} and which is issued under Chapter II thereof. <br>
'''{{euaprov|Affected Allowance}}''': Means an {{euaprov|Allowance}} which is or is alleged to have been the subject of an {{euaprov|Unauthorised Transfer}} as confirmed by an {{euaprov|Appropriate Source}}. <br>
'''{{euaprov|Affected Allowance}}''': Means an {{euaprov|Allowance}} which is or is alleged to have been the subject of an {{euaprov|Unauthorised Transfer}} as confirmed by an {{euaprov|Appropriate Source}}. <br>
Line 150: Line 93:
:(1) an {{euaprov|Allowance Forward Transaction}}, a number of {{euaprov|Allowances}} equal to the {{euaprov|Number of Allowances}}; or  
:(1) an {{euaprov|Allowance Forward Transaction}}, a number of {{euaprov|Allowances}} equal to the {{euaprov|Number of Allowances}}; or  
:(2) an {{euaprov|Allowance Option Transaction}} and for an {{euaprov|Exercise Date}}, a number of {{euaprov|Allowances}} equal to the number of {{isdadefsprov|Option}}s exercised or deemed exercised on that Exercise Date multiplied by the {{euaprov|Option Entitlement}}. <br>
:(2) an {{euaprov|Allowance Option Transaction}} and for an {{euaprov|Exercise Date}}, a number of {{euaprov|Allowances}} equal to the number of {{isdadefsprov|Option}}s exercised or deemed exercised on that Exercise Date multiplied by the {{euaprov|Option Entitlement}}. <br>
'''{{euaprov|Allowance Purchase Price}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} which is an {{euaprov|Allowance Forward Transaction}}, the amount specified in the related {{euaprov|Confirmation}}. <br>
'''{{euaprov|Allowance Purchase Price}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} which is an {{euaprov|Allowance Forward Transaction}}, the amount specified as such. <br>
'''{{euaprov|Allowance Shortfall}}'''is defined in {{euaprov|(d)(iii)}} (''{{euaprov|Partial Settlement}}''). <br>
'''{{euaprov|Allowance Shortfall}}'''is defined in {{euaprov|(d)(iii)}} (''{{euaprov|Partial Settlement}}''). <br>
'''{{euaprov|Allowance Strike Price}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} which is an {{euaprov|Allowance Option Transaction}}, the price per Allowance specified in the related Confirmation. <br>
 
 
'''{{euaprov|Allowance Type}}''': Means an {{euaprov|AEU Allowance}} or an {{euaprov|EU Allowance}} as specified. <br>
'''{{euaprov|Allowance Type}}''': Means an {{euaprov|AEU Allowance}} or an {{euaprov|EU Allowance}} as specified. <br>
'''{{euaprov|Appropriate Source}}''': Means any “competent authority” (as defined in the {{euaprov|Registries Regulation}}) or the {{euaprov|Central Administrator}}, {{euaprov|National Administrator}} or any other authority having power under the {{euaprov|Directive}} or the {{euaprov|Registries Regulation}} to block, suspend, refuse, reject, cancel or otherwise affect the transfer (whether in whole or in part) of {{euaprov|Allowances}}, any recognised law enforcement or tax authorities of a Member State, the European Anti-fraud Office of the European Commission or Europol. <br>
'''{{euaprov|Appropriate Source}}''': Means any “competent authority” (as defined in the {{euaprov|Registries Regulation}}) or the {{euaprov|Central Administrator}}, {{euaprov|National Administrator}} or any other authority having power under the {{euaprov|Directive}} or the {{euaprov|Registries Regulation}} to block, suspend, refuse, reject, cancel or otherwise affect the transfer (whether in whole or in part) of {{euaprov|Allowances}}, any recognised law enforcement or tax authorities of a Member State, the European Anti-fraud Office of the European Commission or Europol. <br>
'''{{euaprov|Buyer}}''': Means the party specified as such in the related {{isdaprov|Confirmation}}. <br>
'''{{euaprov|Buyer}}''' will be specified in the {{isdaprov|Confirmation}}. <br>
'''{{euaprov|Buy-In}}''': Means the purchase of {{euaprov|Allowances}} by {{euaprov|Receiving Party}} under the procedures described in paragraph (2) of the definition of {{euaprov|Receiving Party’s Replacement Cost}} in this Annex {{euaprov|(e)}} (''{{euaprov|Defined Terms and Interpretation}}''). <br>
'''{{euaprov|Buy-In}}''': Means the purchase of {{euaprov|Allowances}} by {{euaprov|Receiving Party}} under the procedures described in paragraph (2) of the definition of {{euaprov|Receiving Party’s Replacement Cost}} in this Annex {{euaprov|(e)}} (''{{euaprov|Defined Terms and Interpretation}}''). <br>
'''{{euaprov|Buy-In Period}}''' is defined inthe definition of {{euaprov|Receiving Party’s Replacement Cost}} in this Annex {{euaprov|(e)}} (''{{euaprov|Defined Terms and Interpretation}}'').<br>
'''{{euaprov|Buy-In Period}}''' is defined inthe definition of {{euaprov|Receiving Party’s Replacement Cost}} in this Annex {{euaprov|(e)}} (''{{euaprov|Defined Terms and Interpretation}}'').<br>
'''{{euaprov|Calculation Agent}}''': Means the party specified as such in the related {{isdaprov|Confirmation}}. <br>
'''{{euaprov|Calculation Agent}}''' will be specified in the {{isdaprov|Confirmation}}. <br>
'''{{euaprov|Call}}''': Means a type of an {{euaprov|Allowance Option Transaction}} entitling, but not obligating, {{euaprov|Buyer}} to purchase {{euaprov|Allowances}} from {{euaprov|Seller}} at the {{euaprov|Allowance Strike Price}} per {{euaprov|Allowance}}. <br>
'''{{euaprov|Call}}''': Means a type of an {{euaprov|Allowance Option Transaction}} entitling, but not obligating, {{euaprov|Buyer}} to purchase {{euaprov|Allowances}} from {{euaprov|Seller}} at the {{euaprov|Allowance Strike Price}} per {{euaprov|Allowance}}. <br>
'''{{euaprov|Central Administrator}}''': Means the person designated by the EU Commission to operate and maintain the {{euaprov|EUTL}} under Article 20(1) of the {{euaprov|Directive}}. <br>
'''{{euaprov|Central Administrator}}''': Means the person designated by the EU Commission to operate and maintain the {{euaprov|EUTL}} under Article 20(1) of the {{euaprov|Directive}}. <br>
'''{{euaprov|Central European Time}}''': Means Central European Time, including Central European Winter Time and Central European Summer Time as applicable.<br>
'''{{euaprov|Central European Time}}''': Means Central European Time, including Central European Winter Time and Central European Summer Time.<br>
'''{{euaprov|Close-out Cost of Carry Amount}}''': Means an amount in EUR equal to: (a) the {{euaprov|Close-out Cost of Carry Rate}}; multiplied by: (b)(i) for an {{euaprov|Allowance Forward Transaction}}, the {{euaprov|Allowance Purchase Price}}; or (ii) for an {{euaprov|Allowance Option Transaction}}, the {{euaprov|Allowance Strike Price}}; multiplied by: (c) the {{euaprov|Close-out Cost of Carry Delay}}, divided by (d) 360.
'''{{euaprov|Close-out Cost of Carry Amount}}''': Means an amount in EUR equal to: (a) the {{euaprov|Close-out Cost of Carry Rate}}; multiplied by: (b)(i) for an {{euaprov|Allowance Forward Transaction}}, the {{euaprov|Allowance Purchase Price}}; or (ii) for an {{euaprov|Allowance Option Transaction}}, the {{euaprov|Allowance Strike Price}}; multiplied by: (c) the {{euaprov|Close-out Cost of Carry Delay}}, divided by (d) 360.
'''{{euaprov|Close-out Cost of Carry Delay}}''': Means the number of days in the period from (and including) the scheduled {{euaprov|Payment Date}} until the date that would be the {{euaprov|Payment Date}} if delivery had been made on the {{euaprov|Final Delivery Date}} or {{euaprov|Final Compliance Date}} (as the case may be). <br>
'''{{euaprov|Close-out Cost of Carry Delay}}''': Means the number of days in the period from (and including) the scheduled {{euaprov|Payment Date}} until the date that would be the {{euaprov|Payment Date}} if delivery had been made on the {{euaprov|Final Delivery Date}} or {{euaprov|Final Compliance Date}} (as the case may be). <br>
'''{{euaprov|Close-out Cost of Carry Rate}}''': Means a rate equal to the {{isdadefsprov|Floating Rate}} that would be determined for the period from the scheduled {{euaprov|Payment Date}} to the {{isdaprov|Early Termination Date}}, if the {{euaprov|Reset Date}} were the date that would be the {{euaprov|Payment Date}} if delivery had been made on the {{euaprov|Final Delivery Date}} or {{euaprov|Final Compliance Date}} ([[as the case may be]]) and the applicable {{isdadefsprov|Floating Rate Option}} were “EUR-EONIA-OIS-COMPOUND”. <br>
'''{{euaprov|Close-out Cost of Carry Rate}}''': Means a rate equal to the {{isdadefsprov|Floating Rate}} that would be determined for the period from the scheduled {{euaprov|Payment Date}} to the {{isdaprov|Early Termination Date}}, if the {{euaprov|Reset Date}} were the date that would be the {{euaprov|Payment Date}} if delivery had been made on the {{euaprov|Final Delivery Date}} or {{euaprov|Final Compliance Date}} ([[as the case may be]]) and the applicable {{isdadefsprov|Floating Rate Option}} were “EUR-EONIA-OIS-COMPOUND”. <br>
'''{{euaprov|Cost of Carry Amount}}''': Means an amount in EUR equal to:
 
:(a) the {{euaprov|Cost of Carry Rate}} multiplied by:
 
:(b)
::(i) for an {{euaprov|Allowance Forward Transaction}}, the {{euaprov|Allowance Purchase Price}} multiplied by the {{euaprov|Number of Allowances}} delivered by the {{euaprov|Delayed Delivery Date}} following the occurrence of a {{euaprov|Suspension Event}}; or
::(ii) for an {{euaprov|Allowance Option Transaction}}, the {{euaprov|Allowance Strike Price}} multiplied by the {{euaprov|Number of Allowances}} delivered by the {{euaprov|Delayed Delivery Date}} following the occurrence of a {{euaprov|Suspension Event}};
:multiplied by: (c) the {{euaprov|Cost of Carry Delay}}, divided by 360.
'''{{euaprov|Cost of Carry Delay}}''': Means the number of days in the period from (and including) the scheduled {{euaprov|Payment Date}} until the {{euaprov|Delayed Payment Date}}. <br>
'''{{euaprov|Cost of Carry Delay}}''': Means the number of days in the period from (and including) the scheduled {{euaprov|Payment Date}} until the {{euaprov|Delayed Payment Date}}. <br>
'''{{euaprov|Cost of Carry Rate}}''': Means a rate equal to the {{isdadefsprov|Floating Rate}} that would be determined for a {{euaprov|Calculation Period}} commencing on (and including) the scheduled {{euaprov|Payment Date}} and ending on (but excluding) the {{euaprov|Delayed Payment Date}}, if the {{euaprov|Reset Date}} were the last day of that {{euaprov|Calculation Period}} and the applicable {{isdadefsprov|Floating Rate Option}} were “EUR-EONIA-OIS-COMPOUND”. <br>
'''{{euaprov|Cost of Carry Rate}}''': Means a rate equal to the {{isdadefsprov|Floating Rate}} that would be determined for a {{euaprov|Calculation Period}} commencing on (and including) the scheduled {{euaprov|Payment Date}} and ending on (but excluding) the {{euaprov|Delayed Payment Date}}, if the {{euaprov|Reset Date}} were the last day of that {{euaprov|Calculation Period}} and the applicable {{isdadefsprov|Floating Rate Option}} were “EUR-EONIA-OIS-COMPOUND”. <br>
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:(3) an {{euaprov|Allowance Option Transaction}} which is a {{euaprov|Put}}, the {{euaprov|Buyer}}. <br>
:(3) an {{euaprov|Allowance Option Transaction}} which is a {{euaprov|Put}}, the {{euaprov|Buyer}}. <br>
'''{{euaprov|Delivering Party’s Delivery Business Day Location}}''': Means the place specified as such in the {{euaprov|Confirmation}} for the relevant {{euaprov|EU Emissions Allowance Transaction}} or, if a place is not so specified:  
'''{{euaprov|Delivering Party’s Delivery Business Day Location}}''': Means the place specified as such in the {{euaprov|Confirmation}} for the relevant {{euaprov|EU Emissions Allowance Transaction}} or, if a place is not so specified:  
:(i) the place specified in the Annex to this Annex as the {{euaprov|Delivery Business Day}} Location for Delivering Party; or  
:(i) the place specified as the {{euaprov|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 {{euaprov|EU Emissions Allowance Transaction}} is located; or  
:(ii) if no such place is specified, the place in which Seller’s address for purposes of receiving notices connected with the relevant {{euaprov|EU Emissions Allowance Transaction}} is located; or  
:(iii) if no such address has been given, the place in which {{euaprov|Delivering Party}} has its registered office.
:(iii) if no such address has been given, the place in which {{euaprov|Delivering Party}} has its registered office.
'''{{euaprov|Delivering Party’s Replacement Cost}}''': Means for a failure of {{euaprov|Receiving Party}} to accept delivery of a number of {{euaprov|Allowances}} (the “'''{{euaprov|DPRC Shortfall}}'''”):
 
:(i)
 
::(1) the specified {{euaprov|Allowance Price}}plus, in those circumstances in which the relevant termination of the parties’ obligations under “{{euaprov|Physical Settlement}}” occurs following a {{euaprov|Suspension Event}}, the {{euaprov|Close-out Cost of Carry Amount}}; less
::(2) the price (per Allowance) {{euaprov|Delivering Party}}, acting in a commercially reasonable manner, does or would, in the determination of the {{euaprov|Calculation Agent}}, receive in an arm’s length transaction concluded on the {{euaprov|Final Compliance Date}} for an equivalent number of {{euaprov|Allowances}} of the relevant {{euaprov|Allowance Type}} to be delivered on the {{euaprov|Final Compliance Date}} or, if later, the {{euaprov|Delivery Business Day}} on which {{euaprov|Allowances}} would be delivered under prevailing market practice under a spot transaction concluded on the {{euaprov|Final Compliance Date}}; multiplied by:
:(ii) the {{euaprov|DPRC Shortfall}}; plus
:(iii) interest at the {{euaprov|Default Rate}} from the {{euaprov|Delivery Date}} until the date of termination under Part {{euaprov|(d)(ii)}}(2)(B)({{euaprov|Failure to Comply Not Remedied}}) on the product of the {{euaprov|DPRC Shortfall}} and the excess, if any, of the specified {{euaprov|Allowance Price}}over the price determined under paragraph (i)(2) above. <br>
'''{{euaprov|Delivery Business Day}}''': Means any day, which is not a Saturday or Sunday, on which commercial banks are open for general business in both {{euaprov|Delivering Party’s Delivery Business Day Location}} and the {{euaprov|Receiving Party’s Delivery Business Day Location}}. <br>
'''{{euaprov|Delivery Business Day}}''': Means any day, which is not a Saturday or Sunday, on which commercial banks are open for general business in both {{euaprov|Delivering Party’s Delivery Business Day Location}} and the {{euaprov|Receiving Party’s Delivery Business Day Location}}. <br>
'''{{euaprov|Delivery Date}}''': Means the date or dates specified as such in the related {{isdaprov|Confirmation}} (subject to any adjustment under Part {{euaprov|(d)(i)(5)}} (''{{euaprov|Suspension Event}}'')). <br>
'''{{euaprov|Delivery Date}}''': Means the date or dates specified as such in the related {{isdaprov|Confirmation}} (subject to any adjustment under Part {{euaprov|(d)(i)(5)}} (''{{euaprov|Suspension Event}}'')). <br>
'''{{euaprov|Directive}}''': Means {{euaprov|Directive}} 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council {{euaprov|Directive}} 96/61/EC, as amended from time to time. <br>
'''{{euaprov|Directive}}''': Means {{euaprov|Directive}} 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council {{euaprov|Directive}} 96/61/EC, as amended from time to time. <br>
'''{{euaprov|DPRC Shortfall}}''' is defined inthe definition of {{euaprov|Delivering Party’s Replacement Cost}} in this Annex {{euaprov|(e)}} (''{{euaprov|Defined Terms and Interpretation}}''). <br>
'''{{euaprov|DPRC Shortfall}}''' is defined inthe definition of {{euaprov|Delivering Party’s Replacement Cost}} in this Annex {{euaprov|(e)}} (''{{euaprov|Defined Terms and Interpretation}}''). <br>
'''{{euaprov|EEP Amount}}''': Means an amount (expressed as an amount per {{euaprov|Allowance}}) that {{euaprov|Receiving Party}} determines, acting [[In good faith and a commercially reasonable manner|in good faith and using commercially reasonable procedures]], to be its total losses and costs which result from {{euaprov|Delivering Party}}’s failure to deliver the {{euaprov|Shortfall}} to the extent that those losses and costs are not reflected elsewhere in the definition of {{euaprov|Receiving Party’s Replacement Cost}} and to the extent that those losses and costs relate to:
 
:(1) any {{euaprov|Excess Emission Penalty}} which {{euaprov|Receiving Party}} must pay to the {{euaprov|Relevant Authority}} under the terms of the Scheme; or
 
:(2) if “{{euaprov|EEP Equivalent}}” applies, any amount which {{euaprov|Receiving Party}} must pay to a third party for any such penalty payable to any other party (including a {{euaprov|Relevant Authority}}) by that third party because of {{euaprov|Delivering Party}}’s failure to deliver the {{euaprov|Shortfall}}. <br>
'''{{euaprov|EEP Non-delivery}}'''is defined in {{euaprov|(d)(xi)}} (''{{euaprov|Failure to Deliver (Alternative Method) – EEP Applicable}}''). <br>
'''{{euaprov|EEP Non-delivery}}'''is defined in {{euaprov|(d)(xi)}} (''{{euaprov|Failure to Deliver (Alternative Method) – EEP Applicable}}''). <br>
'''{{euaprov|EEP Payment}}'''is defined in {{euaprov|(d)(xi)}} (''{{euaprov|Failure to Deliver (Alternative Method) – EEP Applicable}}''). <br>
'''{{euaprov|EEP Payment}}'''is defined in {{euaprov|(d)(xi)}} (''{{euaprov|Failure to Deliver (Alternative Method) – EEP Applicable}}''). <br>
'''{{euaprov|EEP Risk Period}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} and any {{euaprov|Delivery Date}}, a period of time prior to the first succeeding {{euaprov|Reconciliation Deadline}}, as specified in the related Confirmation. <br>
'''{{euaprov|EEP Risk Period}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} and any {{euaprov|Delivery Date}}, a period of time prior to the first succeeding {{euaprov|Reconciliation Deadline}}. <br>
'''{{euaprov|Encumbrance Loss Amount}}''': An amount reasonably determined by {{euaprov|Receiving Party}} [[in good faith]] to be its total losses and costs in connection with an {{euaprov|EU Emissions Allowance Transaction}} including, but not limited to, any loss of bargain, cost of funding or, at the election of {{euaprov|Receiving Party}} but without duplication, loss or costs incurred because of its terminating, liquidating, obtaining or re-establishing any hedge or related trading position. Such amount includes losses and costs for any payment already made under an {{euaprov|EU Emissions Allowance Transaction}} prior to the delivery of the written notice by {{euaprov|Receiving Party}} and {{euaprov|Receiving Party}}’s legal fees and out-of-pocket expenses but does not include {{euaprov|Excess Emissions Penalty}} or any amount which {{euaprov|Receiving Party}} must pay to a third party for any such penalty payable to any other party (or {{euaprov|Relevant Authority}}) by that third party. The parties agree that in circumstances where there was a breach of the {{euaprov|No Encumbrances Obligation}} by {{euaprov|Delivering Party}} caused by the transfer of an {{euaprov|Affected Allowance}}, {{euaprov|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 {{euaprov|Receiving Party}} by a third party consequent upon the transfer by {{euaprov|Receiving Party}} of an {{euaprov|Affected Allowance}} transferred to it by {{euaprov|Delivering Party}} under an {{euaprov|EU Emissions Allowance Transaction}}. <br>
'''{{euaprov|Encumbrance Loss Amount}}''': An amount reasonably determined by {{euaprov|Receiving Party}} [[in good faith]] to be its total losses and costs in connection with an {{euaprov|EU Emissions Allowance Transaction}} including, but not limited to, any loss of bargain, cost of funding or, at the election of {{euaprov|Receiving Party}} but without duplication, loss or costs incurred because of its terminating, liquidating, obtaining or re-establishing any hedge or related trading position. Such amount includes losses and costs for any payment already made under an {{euaprov|EU Emissions Allowance Transaction}} prior to the delivery of the written notice by {{euaprov|Receiving Party}} and {{euaprov|Receiving Party}}’s legal fees and out-of-pocket expenses but does not include {{euaprov|Excess Emissions Penalty}} or any amount which {{euaprov|Receiving Party}} must pay to a third party for any such penalty payable to any other party (or {{euaprov|Relevant Authority}}) by that third party. The parties agree that in circumstances where there was a breach of the {{euaprov|No Encumbrances Obligation}} by {{euaprov|Delivering Party}} caused by the transfer of an {{euaprov|Affected Allowance}}, {{euaprov|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 {{euaprov|Receiving Party}} by a third party consequent upon the transfer by {{euaprov|Receiving Party}} of an {{euaprov|Affected Allowance}} transferred to it by {{euaprov|Delivering Party}} under an {{euaprov|EU Emissions Allowance Transaction}}. <br>
'''{{euaprov|End of Phase Reconciliation Deadline}}''': Means the {{euaprov|Reconciliation Deadline}} scheduled to fall in April 2031. <br>
'''{{euaprov|End of Phase Reconciliation Deadline}}''': Means the {{euaprov|Reconciliation Deadline}} scheduled to fall in April 2031. <br>
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'''{{euaprov|National Administrator}}''': Means the entity responsible for managing, on behalf of a {{euaprov|Member State}}, a set of user accounts under the jurisdiction of a {{euaprov|Member State}} in the {{euaprov|Union Registry}} as designated under Article 8 of the {{euaprov|Registries Regulation}}. <br>
'''{{euaprov|National Administrator}}''': Means the entity responsible for managing, on behalf of a {{euaprov|Member State}}, a set of user accounts under the jurisdiction of a {{euaprov|Member State}} in the {{euaprov|Union Registry}} as designated under Article 8 of the {{euaprov|Registries Regulation}}. <br>
'''{{euaprov|No Encumbrance Obligation}}'''is defined in {{euaprov|(d)(vii)}} (''{{euaprov|No Encumbrances}}''). <br>
'''{{euaprov|No Encumbrance Obligation}}'''is defined in {{euaprov|(d)(vii)}} (''{{euaprov|No Encumbrances}}''). <br>
'''{{euaprov|Notice of Exercise}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} which is an {{euaprov|Allowance Option Transaction}}, an Option notice given by {{euaprov|Buyer}} to {{euaprov|Seller}} (which may be given orally (including by telephone) unless the parties specify otherwise in the related {{isdaprov|Confirmation}}) of its exercise of the right or rights granted under the {{euaprov|Allowance Option Transaction}} during the hours specified in the relevant {{isdaprov|Confirmation}} on a {{euaprov|Seller Business Day}} during the {{euaprov|Exercise Period}}, which shall be irrevocable once effective. If the {{euaprov|Notice of Exercise}} is received on any {{euaprov|Seller Business Day}} after the latest time so specified, the {{euaprov|Notice of Exercise}} will be deemed to have been received on the next following {{euaprov|Seller Business Day}}, if any, in the {{euaprov|Exercise Period}}. {{euaprov|Buyer}} may exercise the right or rights granted under the {{euaprov|Allowance Option Transaction}} only by giving a {{euaprov|Notice of Exercise}}. <br>
'''{{euaprov|Notice of Exercise}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} which is an {{euaprov|Allowance Option Transaction}}, an Option notice given by {{euaprov|Buyer}} to {{euaprov|Seller}} (which may be given orally (including by telephone) unless the parties specify otherwise in the related {{isdaprov|Confirmation}}) of its exercise of the right or rights granted under the {{euaprov|Allowance Option Transaction}} on a {{euaprov|Seller Business Day}} during the {{euaprov|Exercise Period}}, which shall be irrevocable once effective. If the {{euaprov|Notice of Exercise}} is received on any {{euaprov|Seller Business Day}} after the latest time so specified, the {{euaprov|Notice of Exercise}} will be deemed to have been received on the next following {{euaprov|Seller Business Day}}, if any, in the {{euaprov|Exercise Period}}. {{euaprov|Buyer}} may exercise the right or rights granted under the {{euaprov|Allowance Option Transaction}} only by giving a {{euaprov|Notice of Exercise}}. <br>
'''{{euaprov|Number of Allowances}}''': Means the number specified as such in the related {{euaprov|Confirmation}}. <br>
'''{{euaprov|Number of Allowances}}''': Means the number specified as such in the related {{euaprov|Confirmation}}. <br>
'''{{euaprov|Number of Options}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} which is an {{euaprov|Allowance Option Transaction}}, the number specified as such in the related {{isdaprov|Confirmation}}, being the number of Options comprised in the relevant {{euaprov|Allowance Option Transaction}}. <br>
'''{{euaprov|Number of Options}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} which is an {{euaprov|Allowance Option Transaction}}, the number specified as such in the related {{isdaprov|Confirmation}}, being the number of Options comprised in the relevant {{euaprov|Allowance Option Transaction}}. <br>
Line 236: Line 171:
'''{{euaprov|Option Entitlement}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} which is an {{euaprov|Allowance Option Transaction}}, the number of {{euaprov|Allowances}} per Option specified as such in the related {{isdaprov|Confirmation}}. If no {{euaprov|Option Entitlement}} is specified, the {{euaprov|Option Entitlement}} for any {{euaprov|Allowance Option Transaction}} shall be one {{euaprov|Allowance}} per Option. <br>
'''{{euaprov|Option Entitlement}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} which is an {{euaprov|Allowance Option Transaction}}, the number of {{euaprov|Allowances}} per Option specified as such in the related {{isdaprov|Confirmation}}. If no {{euaprov|Option Entitlement}} is specified, the {{euaprov|Option Entitlement}} for any {{euaprov|Allowance Option Transaction}} shall be one {{euaprov|Allowance}} per Option. <br>
'''{{euaprov|Original Affected Party}}''': Means the person from whose account the {{euaprov|Unauthorised Transfer}} of the {{euaprov|Affected Allowance}} occurred. <br>
'''{{euaprov|Original Affected Party}}''': Means the person from whose account the {{euaprov|Unauthorised Transfer}} of the {{euaprov|Affected Allowance}} occurred. <br>
'''{{euaprov|Payment Date}}''': Means the date specified as such or otherwise determined under a method specified, provided that, in the case of delayed delivery under Part(d)(i)(5)({{euaprov|Suspension Event}}), the {{euaprov|Payment Date}} shall be determined accordingly from the {{euaprov|Delayed Delivery Date}} (such Payment Date being the “'''{{euaprov|Delayed Payment Date}}'''”).<br>
'''{{euaprov|Payment Date}}''': Means the date specified as such or otherwise determined under a method specified, provided that, for delayed delivery under Part(d)(i)(5)({{euaprov|Suspension Event}}), the {{euaprov|Payment Date}} shall be determined accordingly from the {{euaprov|Delayed Delivery Date}} (such Payment Date being the “'''{{euaprov|Delayed Payment Date}}'''”).<br>
'''{{euaprov|Potential Exercise Date}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} which is a Bermuda {{euaprov|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 {{euaprov|Business Day}}.<br>
'''{{euaprov|Potential Exercise Date}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} which is a Bermuda {{euaprov|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 {{euaprov|Business Day}}.<br>
'''{{euaprov|Premium}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} which is an {{euaprov|Allowance Option Transaction}}, the amount specified in the related Confirmation. If a {{euaprov|Premium}} per {{euaprov|Allowance}} is specified, the {{euaprov|Premium}} shall be the product of the {{euaprov|Premium}} per {{euaprov|Allowance}}, the {{euaprov|Number of Options}} and the {{euaprov|Option Entitlement}}. <br>
'''{{euaprov|Premium}}''' will be specified in the Confirmation. If a {{euaprov|Premium}} per {{euaprov|Allowance}} is specified, the {{euaprov|Premium}} shall be the product of the {{euaprov|Premium}} per {{euaprov|Allowance}}, the {{euaprov|Number of Options}} and the {{euaprov|Option Entitlement}}. <br>
'''{{euaprov|Put}}''': Means a type of {{euaprov|Allowance Option Transaction}} entitling, but not obligating, the {{euaprov|Buyer}} to sell {{euaprov|Allowances}} to {{euaprov|Seller}} at the {{euaprov|Allowance Strike Price}} per {{euaprov|Allowance}}. <br>
'''{{euaprov|Put}}''': Means a type of {{euaprov|Allowance Option Transaction}} entitling the {{euaprov|Buyer}} to sell {{euaprov|Allowances}} to {{euaprov|Seller}} at the {{euaprov|Allowance Strike Price}} per {{euaprov|Allowance}}. <br>
'''{{euaprov|Receiving Party}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} that is:  
'''{{euaprov|Receiving Party}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} that is:  
:(1) an {{euaprov|Allowance Forward Transaction}}, the {{euaprov|Buyer}};  
:(1) an {{euaprov|Allowance Forward Transaction}}, the {{euaprov|Buyer}};  
Line 245: Line 180:
:(3) an {{euaprov|Allowance Option Transaction}} which is a {{euaprov|Put}}, the {{euaprov|Seller}}. <br>
:(3) an {{euaprov|Allowance Option Transaction}} which is a {{euaprov|Put}}, the {{euaprov|Seller}}. <br>
'''{{euaprov|Receiving Party’s Delivery Business Day Location}}''': Means the place specified as such in the Confirmation for the relevant {{euaprov|EU Emissions Allowance Transaction}} or, if a place is not so specified:  
'''{{euaprov|Receiving Party’s Delivery Business Day Location}}''': Means the place specified as such in the Confirmation for the relevant {{euaprov|EU Emissions Allowance Transaction}} or, if a place is not so specified:  
:(i) the place specified in the Annex to this Annex as the {{euaprov|Delivery Business Day}} Location for {{euaprov|Receiving Party}}; or  
:(i) the place specified as the {{euaprov|Delivery Business Day Location}} for {{euaprov|Receiving Party}}; or  
:(ii) if no such place is specified, the place in which {{euaprov|Receiving Party}}’s address for purposes of receiving notices connected with the relevant {{euaprov|EU Emissions Allowance Transaction}} is located; or  
:(ii) if no such place is specified, the place in which {{euaprov|Receiving Party}}’s address for purposes of receiving notices connected with the relevant {{euaprov|EU Emissions Allowance Transaction}} is located; or  
:(iii) if no such address has been given, the place in which {{euaprov|Receiving Party}} has its registered office. <br>
:(iii) if no such address has been given, the place in which {{euaprov|Receiving Party}} has its registered office. <br>
'''{{euaprov|Receiving Party’s Replacement Cost}}''' means:
 
:(1) if “{{euaprov|Excess Emissions Penalty}}” is specified not to be applicable in the Annex to this Annex or the {{isdaprov|Confirmation}} for the relevant {{euaprov|EU Emissions Allowance Transaction}}, or if “{{euaprov|Excess Emissions Penalty}}” applies and if an {{euaprov|EEP Risk Period}} is specified in the Annex to this Annex or in the {{isdaprov|Confirmation}} for the relevant {{euaprov|EU Emissions Allowance Transaction}} but the {{euaprov|Delivery Date}} falls outside the {{euaprov|EEP Risk Period}} then, for a failure to deliver a number of Allowances (the “'''{{euaprov|RPRC Shortfall}}'''”):
 
::(A)
:::(I) the price (per Allowance) that {{euaprov|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 {{euaprov|Final Delivery Date}} for an equivalent number of Allowances to be delivered on the {{euaprov|Final Delivery Date}} or, if later, the {{euaprov|Delivery Business Day}} on which Allowances would be delivered under prevailing market practice under a spot transaction concluded on the {{euaprov|Final Delivery Date}}; less
:::(II) the specified {{euaprov|Allowance Price}}as set out in the Confirmation for the relevant {{euaprov|EU Emissions Allowance Transaction}} plus, in those circumstances in which the relevant termination of the parties’ obligations under “{{euaprov|Physical Settlement}}” occurs following a {{euaprov|Suspension Event}}, the {{euaprov|Close-out Cost of Carry Amount}}; multiplied by:
::(B) the {{euaprov|RPRC Shortfall}}; plus
::(C) interest at the Default Rate from the {{euaprov|Delivery Date}} until the date of termination under Part [7](d)(ii)(1)(B)(Failure to Deliver Not Remedied) on the product of the {{euaprov|RPRC Shortfall}} and the excess, if any, of the price determined under paragraph (1)(A)(I) above over the {{euaprov|Allowance Purchase Price}} or the {{euaprov|Allowance Strike Price}}, as applicable; or
:(2) if “{{euaprov|Excess Emissions Penalty}}” applies and, if an {{euaprov|EEP Risk Period}} is specified in the Annex to this Annex or in the {{isdaprov|Confirmation}} for the relevant {{euaprov|EU Emissions Allowance Transaction}}, the {{euaprov|Delivery Date}} falls within the {{euaprov|EEP Risk Period}} for the relevant {{euaprov|EU Emissions Allowance Transaction}}, then, for a failure to deliver a number of Allowances (the “'''{{euaprov|Undelivered Allowances}}'''”), the sum of:
::(A) either:
:::(I) if in any arm’s length transactions {{euaprov|Receiving Party}} is able, using its reasonable endeavours, to purchase a number of Allowances to be delivered during the period from (but excluding) the {{euaprov|Final Delivery Date}} to (and including) the {{euaprov|Reconciliation Deadline}} on or immediately following the {{euaprov|Delivery Date}} (the “'''{{euaprov|Buy-In Period}}'''”), which for 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 {{euaprov|Undelivered Allowances}}:
::::(X)
:::::(1) the price (per Allowance) at which {{euaprov|Receiving Party}} is able so to purchase the relevant number of Allowances; less
:::::(2) (A) the specified {{euaprov|Allowance Price}}for the {{euaprov|Undelivered Allowances}} set out in the relevant Confirmation plus, (B) in those circumstances in which the relevant termination of the parties’ obligations under “{{euaprov|Physical Settlement}}” occurs following a {{euaprov|Suspension Event}}, the {{euaprov|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 from the {{euaprov|Delivery Date}} until the date of termination under Part [7](d)(ii)(1)(B)(Failure to Deliver Not Remedied) on the product of the number of {{euaprov|Undelivered Allowances}} and the excess, if any, of the price determined under paragraph (2)(A)(I)(X)(1) above over the {{euaprov|Allowance Purchase Price}} or {{euaprov|Allowance Strike Price}}, as applicable; or
:::(II) if in any arm’s length transactions {{euaprov|Receiving Party}}, using its reasonable efforts, is unable to purchase a number of Allowances equivalent to the {{euaprov|Undelivered Allowances}} to be delivered during the Buy-In Period:
::::(X) for the number of Allowances for which {{euaprov|Receiving Party}} is able to effect a Buy-In during the Buy-In Period, an amount for such Allowances calculated under paragraph (I) above; and
::::(Y) for a number of Allowances equal to the number of {{euaprov|Undelivered Allowances}} minus the number of Allowances referred to in (II)(X) above (the “'''{{euaprov|Shortfall}}'''”), the sum of:
:::::(a)
::::::(I) the price (per {{euaprov|Allowance}}) at which {{euaprov|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 {{euaprov|Reconciliation Deadline}} a number of {{euaprov|Allowances}} (such {{euaprov|Allowances}} also being of the same {{euaprov|Allowance Type}} equal to the {{euaprov|Shortfall}}; less
::::::(II) the specified {{euaprov|Allowance Price}}for the {{euaprov|Undelivered Allowances}} set out in the relevant {{euaprov|Confirmation}} plus, in those circumstances in which the relevant termination of the parties’ obligations under “{{euaprov|Physical Settlement}}” occurs following a {{euaprov|Suspension Event}}, the {{euaprov|Close-out Cost of Carry Amount}}; plus
::::::(III) the {{euaprov|EEP Amount}}; multiplied by:
:::::(b) the {{euaprov|Shortfall}}; plus
:::::(c) onterest at the {{euaprov|Default Rate}} from the {{euaprov|Delivery Date}} until the date {{euaprov|Receiving Party}} is or would be able to purchase Allowances under paragraph (II)(Y)(a)(1) above on the product of the number of {{euaprov|Undelivered Allowances}} and the excess, if any, of the price determined under paragraph (II)(Y)(a)(1) above over the {{euaprov|Allowance Purchase Price}} or the {{euaprov|Allowance Strike Price}}, as applicable; and
::(B) such reasonable costs and expenses which {{euaprov|Receiving Party}} incurs as a direct result of {{euaprov|Delivering Party}}’s failure to deliver the {{euaprov|Shortfall}} to the extent that those costs and expenses are not reflected in paragraphs (A)(I) or (A)(II) above; or
:(3) if “{{euaprov|Failure to Deliver (Alternative Method)}}” applies, then, for a failure to deliver a number of {{euaprov|Allowances}} (the number of {{euaprov|Allowances}} not so delivered being the “{{euaprov|RPRC Shortfall}}”):
::(A)
:::(I) the price (per {{euaprov|Allowance}}) {{euaprov|Receiving Party}}, acting in a [[commercially reasonable manner]], does or would, in the determination of the {{euaprov|Calculation Agent}}, pay in an arm’s length transaction concluded under prevailing market practice on the {{euaprov|Final Delivery Date}} to purchase a number of {{euaprov|Allowances}} equivalent to the {{euaprov|RPRC Shortfall}} for delivery on the first {{euaprov|Delivery Business Day}} on which transactions concluded on the {{euaprov|Delivery Date}} would be settled under prevailing market practice; less
:::(II) the specified {{euaprov|Allowance Price}}as set out in the {{isdaprov|Confirmation}} for such {{euaprov|EU Emissions Allowance Transaction}} plus, in those circumstances in which the relevant termination of the parties’ obligations under “{{euaprov|Physical Settlement}}” occurs following a {{euaprov|Suspension Event}}, the {{euaprov|Close-out Cost of Carry Amount}}; multiplied by:
::(B) the {{euaprov|RPRC Shortfall}}; plus
::(C) interest at the {{euaprov|Default Rate}} from the {{euaprov|Delivery Date}} until the {{euaprov|Final Delivery Date}} on the product of the {{euaprov|Allowance Purchase Price}} or the {{euaprov|Allowance Strike Price}}, as applicable, and the {{euaprov|RPRC Shortfall}}. <br>
'''{{euaprov|Reconciliation Deadline}}''': Means 30th April in each calendar year for the preceding calendar year or such later date in each year as may be determined under the {{euaprov|Scheme}} for the surrender of {{euaprov|Allowances}} under the {{euaprov|Scheme}}. <br>
'''{{euaprov|Reconciliation Deadline}}''': Means 30th April in each calendar year for the preceding calendar year or such later date in each year as may be determined under the {{euaprov|Scheme}} for the surrender of {{euaprov|Allowances}} under the {{euaprov|Scheme}}. <br>
'''{{euaprov|Registries Regulation}}''': Means the Commission Regulation (EU) no. 389/2013 of 2 May 2013 establishing a {{euaprov|Union Registry}} under the {{euaprov|Directive}} 2003/87/EC of the European Parliament and of the Council, Decisions No.280/2004/EC and No. 406/2009/EC of the European Parliament and of the Council and repealing Commission Regulation (EU) No. 920/2010 and No. 1193/2011, as amended from time to time. <br>
'''{{euaprov|Registries Regulation}}''': Means the Commission Regulation (EU) no. 389/2013 of 2 May 2013 establishing a {{euaprov|Union Registry}} under the {{euaprov|Directive}} 2003/87/EC of the European Parliament and of the Council, Decisions No.280/2004/EC and No. 406/2009/EC of the European Parliament and of the Council and repealing Commission Regulation (EU) No. 920/2010 and No. 1193/2011, as amended from time to time. <br>
'''{{euaprov|Registry}}''': Means the registry established by a Member State, a non-Member State or the EU, under the {{euaprov|International Rules}}, in order to ensure the accurate accounting of the issue, holding, transfer, acquisition, surrender, cancellation and replacement of {{euaprov|Allowances}}. [[For the avoidance of doubt]], references to a {{euaprov|Registry}} shall include the {{euaprov|Union Registry}} and the {{euaprov|Holding Account}}s within the {{euaprov|Union Registry}} that are under the jurisdiction of a single {{euaprov|National Administrator}} designated by a Member State and will together be [[deemed]], for the purpose of this Annex, to be a {{euaprov|Registry}} for that Member State. <br>
'''{{euaprov|Registry}}''': Means the registry established by a Member State, a non-Member State or the EU, under the {{euaprov|International Rules}}, in order to ensure the accurate accounting of the issue, holding, transfer, acquisition, surrender, cancellation and replacement of {{euaprov|Allowances}}. <br>
'''{{euaprov|Registry Operation}}''': Means, other than by reason of the occurrence of an {{euaprov|Administrator Event}}:
'''{{euaprov|Registry Operation}}''': Means, other than by reason of the occurrence of an {{euaprov|Administrator Event}}:
:(a) the establishment of and continuing functioning of the {{euaprov|Relevant Registry}};
:(a) the establishment of and continuing functioning of the {{euaprov|Relevant Registry}};
Line 289: Line 195:
'''{{euaprov|Relevant Registry}}''': Means the {{euaprov|Registry}} through which a party is obliged to perform a delivery or acceptance obligation under an {{euaprov|EU Emissions Allowance Transaction}}. Where a party has specified more than one {{euaprov|Specified Holding Account}} for delivery or acceptance purposes, the {{euaprov|Relevant Registry}} shall be identified under Part {{euaprov|(d)(i)(2)}}(C). <br>
'''{{euaprov|Relevant Registry}}''': Means the {{euaprov|Registry}} through which a party is obliged to perform a delivery or acceptance obligation under an {{euaprov|EU Emissions Allowance Transaction}}. Where a party has specified more than one {{euaprov|Specified Holding Account}} for delivery or acceptance purposes, the {{euaprov|Relevant Registry}} shall be identified under Part {{euaprov|(d)(i)(2)}}(C). <br>
'''{{euaprov|RPRC Shortfall}}''' is defined inthe definition of {{euaprov|Receiving Party’s Replacement Cost}} in this Annex {{euaprov|(e)}} (''{{euaprov|Defined Terms and Interpretation}}''). <br>
'''{{euaprov|RPRC Shortfall}}''' is defined inthe definition of {{euaprov|Receiving Party’s Replacement Cost}} in this Annex {{euaprov|(e)}} (''{{euaprov|Defined Terms and Interpretation}}''). <br>
'''{{euaprov|Scheme}}''': Means the scheme for transferring {{euaprov|Allowances}} established under the {{euaprov|Directive}} and the {{euaprov|Registries Regulation}}, and as implemented by the national laws of {{euaprov|Member States}}. <br>
 
'''{{euaprov|Seller}}''': Means the party specified as such in the related {{isdaprov|Confirmation}}. <br>
 
'''{{euaprov|Seller}}''' will be specified in the {{isdaprov|Confirmation}}. <br>
'''{{euaprov|Seller Business Day}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} which is an {{euaprov|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. <br>
'''{{euaprov|Seller Business Day}}''': Means, for an {{euaprov|EU Emissions Allowance Transaction}} which is an {{euaprov|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. <br>
'''{{euaprov|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 {{euaprov|Allowances}} under the terms of an {{euaprov|EU Emissions Allowance Transaction}}.


[[For the avoidance of doubt]], the inability of a party to deliver {{euaprov|Allowances}} because of insufficient {{euaprov|Allowances}} in the relevant {{euaprov|Specified Holding Account}}, whether caused by the low or non-allocation of {{euaprov|Allowances}} by a Member State or any other state, the delay or failure of a Member State or {{euaprov|Central Administrator}} to replace {{euaprov|Allowances}} of the {{euaprov|Third Compliance Period}} with {{euaprov|Allowances}} for the {{euaprov|Fourth Compliance Period}}, or the failure of a party to procure sufficient {{euaprov|Allowances}} to meet its delivery obligations, shall not constitute a {{euaprov|Settlement Disruption Event}}. This is not an exhaustive list of events which will not constitute a {{euaprov|Settlement Disruption Event}} and is provided [[for the avoidance of doubt]] only.
 
If an [[an event or circumstance|event or circumstance]] which would otherwise [[constitute]] or give rise to a {{euaprov|Settlement Disruption Event}} also [[constitute]]s a {{euaprov|Suspension Event}}, it will be treated as a {{euaprov|Suspension Event}} and will not constitute a {{euaprov|Settlement Disruption Event}}.<br>
'''{{euaprov|Shortfall}}''' is defined inthe definition of {{euaprov|Receiving Party’s Replacement Cost}} in this Annex {{euaprov|(e)}} (''{{euaprov|Defined Terms and Interpretation}}''). <br>
'''{{euaprov|Shortfall}}''' is defined inthe definition of {{euaprov|Receiving Party’s Replacement Cost}} in this Annex {{euaprov|(e)}} (''{{euaprov|Defined Terms and Interpretation}}''). <br>
'''{{euaprov|Specified Compliance Period}}''': Means, for an {{euaprov|Allowance}} and an {{euaprov|EU Emissions Allowance Transaction}}, the period as specified in the {{isdaprov|Confirmation}} for the relevant {{euaprov|EU Emissions Allowance Transaction}}. <br>
 
'''{{euaprov|Specified Holding Account}}''': Means, for a party and an {{euaprov|EU Emissions Allowance Transaction}}, the {{euaprov|Holding Account}}s (if any) specified as such for such party (i) in the Confirmation for the relevant {{euaprov|EU Emissions Allowance Transaction}}; or (ii) where no such accounts are specified under (i), in the Annex to this Annex; in either case under Part {{euaprov|(d)(xii)}}(1)(A) or Part {{euaprov|(d)(xii)}}(2)(A) (as applicable) and subject to modification under Part {{euaprov|(d)(xii)}}(1)(B) and Part {{euaprov|(d)(xii)}}(2)(B). <br>
 
'''{{euaprov|Suspension Event}}''': Means any date a party to the Agreement is unable to perform its delivery or acceptance obligations under an {{euaprov|EU Emissions Allowance Transaction}} and the Scheme through a {{euaprov|Relevant Registry}} following any of the following events:
 
:(i) absence of {{euaprov|Registry Operation}}; or
'''{{euaprov|Specified Holding Account}}''': Means, for a party and an {{euaprov|EU Emissions Allowance Transaction}}, the {{euaprov|Holding Account}}s (if any) specified as such for such party (i) in the Confirmation for the relevant {{euaprov|EU Emissions Allowance Transaction}}; or (ii) where no such accounts are specified under (i), in the Annex to this Annex; in either case under Part {{euaprov|(d)(xii)}}(1)(A) or Part {{euaprov|(d)(xii)}}(2)(A) and subject to modification under Part {{euaprov|(d)(xii)}}(1)(B) and Part {{euaprov|(d)(xii)}}(2)(B). <br>
:(ii) the occurrence of an {{euaprov|Administrator Event}}.
 
 
'''{{euaprov|Trade Date}}''':will be specified in the {{isdaprov|Confirmation}}. <br>
'''{{euaprov|Trade Date}}''':will be specified in the {{isdaprov|Confirmation}}. <br>
'''{{euaprov|Third Compliance Period}}''': Means the period referred to in Article 16 of the {{euaprov|Directive}} 2009/29/EC starting 1 January 2013 to 31 December 2020. <br>
'''{{euaprov|Third Compliance Period}}''': Means the period referred to in Article 16 of the {{euaprov|Directive}} 2009/29/EC starting 1 January 2013 to 31 December 2020. <br>
'''{{euaprov|Unauthorised Transfer}}''': Means the transfer by debiting of any {{euaprov|Allowance}} from an account holder’s {{euaprov|Holding Account}} and the crediting of a {{euaprov|Holding Account}} of another person, where such transfer is not initiated by the relevant authorised representative or additional authorised representative (as referred to in the {{euaprov|Registries Regulation}}) of the first account holder. <br>
'''{{euaprov|Unauthorised Transfer}}''': Means the transfer by debiting of any {{euaprov|Allowance}} from an account holder’s {{euaprov|Holding Account}} and the crediting of a {{euaprov|Holding Account}} of another person, where such transfer is not initiated by the relevant authorised representative or additional authorised representative (as referred to in the {{euaprov|Registries Regulation}}) of the first account holder. <br>
'''{{euaprov|Undelivered Allowances}}''' is defined in the definition of {{euaprov|Receiving Party’s Replacement Cost}} in this Annex {{euaprov|(e)}} (''{{euaprov|Defined Terms and Interpretation}}''). <br>
'''{{euaprov|Undelivered Allowances}}''' is defined in {{euaprov|Receiving Party’s Replacement Cost}}. <br>
'''{{euaprov|Union Registry}}''': Means the {{euaprov|Registry}} referred to as the “Community Registry” in Article 19(1) of the {{euaprov|Directive}}. <br>
'''{{euaprov|Union Registry}}''': Means the {{euaprov|Registry}} referred to as the “Community Registry” in Article 19(1) of the {{euaprov|Directive}}. <br>
'''{{euaprov|VAT}}'''is defined in {{euaprov|(d)(viii)}} (''{{euaprov|Value Added Taxes}}''). <br>
'''{{euaprov|VAT}}'''is defined in {{euaprov|(d)(viii)}} (''{{euaprov|Value Added Taxes}}''). <br>
'''{{euaprov|VAT Amount}}'''is defined in {{euaprov|(d)(viii)}} (''{{euaprov|Value Added Taxes}}''). <br>
'''{{euaprov|VAT Amount}}'''is defined in {{euaprov|(d)(viii)}} (''{{euaprov|Value Added Taxes}}''). <br>
'''{{euaprov|VAT Invoice}}'''is defined in {{euaprov|(d)(viii)}} (''{{euaprov|Value Added Taxes}}''). <br>
'''{{euaprov|VAT Invoice}}'''is defined in {{euaprov|(d)(viii)}} (''{{euaprov|Value Added Taxes}}''). <br>
'''{{euaprov|VAT Jurisdiction}}''': Means, for a party and an {{euaprov|EU Emissions Allowance Transaction}}, the place specified as such in the related {{isdaprov|Confirmation}} or, if a place is not so specified, the place specified in the Annex to this Annex as the {{euaprov|VAT Jurisdiction}} for such party. <br>
'''{{euaprov|VAT Jurisdiction}}''': Means, for a party and an {{euaprov|EU Emissions Allowance Transaction}}, the place specified as such in the related {{isdaprov|Confirmation}} or, if a place is not so specified, the specified {{euaprov|VAT Jurisdiction}} for such party. <br>
'''{{euaprov|Written Confirmation}}''': Means, for a party and an {{euaprov|EU Emissions Allowance Transaction}} which is an {{euaprov|Allowance Option Transaction}}, if “{{euaprov|Written Confirmation}}” applies or if demanded by {{euaprov|Seller}} (which demand, notwithstanding any provisions regarding notice applicable to the {{euaprov|Allowance Option Transaction}}, may be given orally (including by telephone)), {{euaprov|Buyer}} shall execute a written confirmation (including by facsimile transmission) confirming the substance of the {{euaprov|Notice of Exercise}} and deliver the same to {{euaprov|Seller}}. {{euaprov|Buyer}} shall cause such executed written confirmation to be received by {{euaprov|Seller}} within one {{euaprov|Seller Business Day}} following the date that the {{euaprov|Notice of Exercise}} or {{euaprov|Seller}}’s demand, as the case may be, becomes effective. <br>
'''{{euaprov|Written Confirmation}}''': Means, for a party and an {{euaprov|EU Emissions Allowance Transaction}} which is an {{euaprov|Allowance Option Transaction}}, if “{{euaprov|Written Confirmation}}” applies or if demanded by {{euaprov|Seller}} (which demand, notwithstanding any provisions regarding notice applicable to the {{euaprov|Allowance Option Transaction}}, may be given orally (including by telephone)), {{euaprov|Buyer}} shall execute a written confirmation (including by facsimile transmission) confirming the substance of the {{euaprov|Notice of Exercise}} and deliver the same to {{euaprov|Seller}}. {{euaprov|Buyer}} shall cause such executed written confirmation to be received by {{euaprov|Seller}} within one {{euaprov|Seller Business Day}} following the date that the {{euaprov|Notice of Exercise}} or {{euaprov|Seller}}’s demand, as the case may be, becomes effective. <br>
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