Template:Nutshell Equity Derivatives 1.44

1.44. Knock-in Event.

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

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

(i) The Knock-in Price is greater than the initial level set for the Transaction (however described), when the level of the Knock-in Reference Security, as of the Knock-in Valuation Time on any Knock-in Determination Day is at least equal to the Knock-in Price; and

(ii) The Knock-in Price is less than the initial level set for the Transaction (however described), when the level of the Knock-in Reference Security as of the Knock-in Valuation Time on any Knock-in Determination Day is at most equal to the Knock-in Price.

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