Template:IETA Master Agreement 5.1

5.1 Primary Obligation

5.1(a) In relation to a Transaction, the Delivering Party agrees to sell and Transfer and the Receiving Party agrees to purchase and accept the Period Traded Allowances in accordance with its terms, subject to and in accordance with the terms and conditions of this Agreement and the EU ETS Rules.

5.1(b) In respect of a Confirmation a Party shall specify the information listed in (i) to (v) below. If more than one Delivery Date is specified in a Confirmation and, in respect of each such Delivery Date:

(i) an Allowance Type;

(ii) an Allowance Price;

(iii) a PTA Quantity;

(iv) a Specified Period; and

(v) Payment Due Date,

are specified in that Confirmation or are otherwise capable of being determined with certainty from the terms of that Confirmation, then separate Transactions shall be deemed to subsist in respect of each Transfer relating to each such Delivery Date. The terms of each such deemed Transaction, other than in relation to the Delivery Date and items (i) – (v) listed above, will be the same, unless otherwise specified in the Confirmation.

5.1(c) The Delivering Party agrees to Transfer (or procure the Transfer of) the Period Traded Allowances from any Holding Account in any Registry to the relevant Receiving Party’s Holding Account; provided, however, that if one or more Delivering Party’s Holding Accounts are specified in the Confirmation to a Transaction, the Receiving Party agrees that the Delivering Party’s obligation to Transfer Allowances under this Agreement shall be limited to an obligation to Transfer the Period Traded Allowances for the relevant Transaction from any of such Delivering Party’s Holding Account(s) to the relevant Receiving Party’s Holding Account.

Where more than one Receiving Party’s Holding Account has been specified in the Confirmation to a Transaction, such Holding Accounts are set out in order of preference for such Transaction and the Delivering Party shall Transfer Period Traded Allowances from either, as the case may be:

(i) any Holding Account; or

(ii) any Delivering Party’s Holding Account,

to the first listed Receiving Party’s Holding Account, unless in respect of such Receiving Party’s Holding Account, it is prevented from so doing by an event or circumstance that would be described under Clause 13 (Force Majeure or Suspension Event) or Clause 14.7 (Illegality) if the first listed Receiving Party’s Holding Account were the only Holding Account so listed. In such circumstances, the provisions of this paragraph will apply iteratively as though the next listed Receiving Party’s Holding Account were the first listed.

5.1(d) A Transfer shall be considered to be completed for the purposes of this Agreement when the relevant Period Traded Allowances are received in the relevant Receiving Party’s Holding Account, whereupon risk of loss related to the Period Traded Allowances or any portion of them transfers from the Delivering Party to the Receiving Party.