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Please be aware that in accordance with HM Revenue and Customs Brief 46/09, all delivery VAT on the contracts listed below will be zero rated.

EUA Spot Contact - Basic Terms
Description	Physically settled day ahead spot contract for the delivery of EU Allowances issued in accordance with the terms of Directive 1003/87/EC.
Lot Size	One lot is equal to 1000 EU Allowance units. A unit being the right to emit 1 tonne of CO2 equivalent.
Minimum contract Size	One Lot
Currency	Euros (€)
Minimum Tick Size	One Euro cent per tonne, €0.01/tonne
Settlement Price	LEBA EUA closing price or such or other price as may be prescribed by LCH.Clearnet from time to time.
Contract Series	Rolling day ahead spot contract for business days only. Contracts for Monday delivery are made available for trading on the Friday prior to delivery.
Expiry Day	Contracts will expire at 17:00 on the trading day.
Delivery	Delivery is fulfilled by the transfer of EU Allowances from the Holding Account at a designated Registry of the Seller to the Holding Account of LCH.Clearnet Ltd at the UK Emissions Trading Registry and from there to the Holding Account at the designated Registry of the Buyer.

CER Spot Contract - Basic Terms
Description	Physically settled day ahead spot contract for the delivery of Certified Emissions Reductions issued pursuant to Article 12 of the Kyoto Protocol that may be used for determining compliance with emissions limitation commitments in accordance with the EU Emissions Trading Scheme. Excluding allowances generated by hydroelectric projects with a generating capacity exceeding 20MW.
Lot Size	One lot is equal to 1000 Certified Emission Reductions units. A unit being the right to emit 1 tonne of CO2 equivalent.
Minimum Contract Size	One Lot
Currency	Euros (€)
Minimum Tick Size	One Euro cent per tonne, €0.01/tonne
Settlement Price	LEBA CER closing price or such or other price as may be prescribed by LCH.Clearnet from time to time.
Contract Series	Rolling day ahead spot contract for business days only. Contracts for Monday delivery are made available for trading on the Friday prior to delivery.
Expiry Day	Contracts will expire at 17:00 on the trading day.
Delivery	Delivery is fulfilled by the transfer of Certified Emissions Reductions from the Holding Account at a designated Registry of the Seller to the Holding Account of LCH.Clearnet Ltd at the UK Emissions Trading Registry and from there to the Holding Account at the designated Registry of the Buyer.

OTC EUA Forward Contract - Basic Terms
Description	Physically settled forward contract for the delivery of EU Allowances issued in accordance with the terms of Directive 1003/87/EC.
Lot Size	One lot is equal to 1000 EU Allowance units. A unit being the right to emit 1 tonne of CO2 equivalent.
Minimum Contract Size	One Lot
Currency	Euros (€)
Minimum Tick Size	One Euro cent per tonne, €0.01/tonne
Settlement Price	LEBA EUA closing price or such other price as may be prescribed by the Clearing House from time to time.
Contract Series	A total of 6 December contract months on an annual cycle commencing December 2010 and ending December 2015.
Expiry Day	Contracts will expire at 18:00 on the last Monday of the contract month. Where the last Monday of the contract month is not a business day, or there is a non-business day in the four days following the last Monday of the contract month, then the expiry day will be the second last Monday of the contract month. In cases where there is a non-business day in the four days following the second last Monday of the contract month, then the expiry day will be the third last Monday of the contract month.
Delivery	Delivery is fulfilled by the transfer of EU Allowances from the Holding Account at a designated Registry of the Seller to the Holding Account at a designated Registry of LCH.Clearnet Ltd and from there to the Holding Account at the designated Registry of the Buyer.

OTC CER Forward Contract - Basic Terms
Description	Physically settled forward contract for the delivery of Certified Emissions Reductions issued pursuant to Article 12 of the Kyoto Protocol that may be used for determining compliance with emissions limitation commitments in accordance with the EU Emissions Trading Scheme. Excluding allowances generated by hydroelectric projects with a generating capacity exceeding 20MW.
Lot Size	One lot is equal to 1000 Certified Emission Reductions units. A unit being the right to emit 1 tonne of CO2 equivalent.
Minimum Contract Size	One Lot
Currency	Euros (€)
Minimum Tick Size	One Euro cent per tonne, €0.01/tonne
Settlement Price	LEBA CER closing price or such other price as may be prescribed by the Clearing House from time to time.
Contract Series	A total of 6 December contract months on an annual cycle commencing December 2010 and ending December 2015.
Expiry Day	Contracts will expire at 18:00 on the last Monday of the contract month. Where the last Monday of the contract month is not a business day, or there is a non-business day in the four days following the last Monday of the contract month, then the expiry day will be the second last Monday of the contract month. In cases where there is a non-business day in the four days following the second last Monday of the contract month, then the expiry day will be the third last Monday of the contract month.
Delivery	Delivery is fulfilled by the transfer of EU compliant CERs from the Holding Account at a designated Registry of the Seller to the Holding Account at a designated Registry of LCH.Clearnet Ltd and from there to the Holding Account at the designated Registry of the Buyer.

EUA Options
Description	Physically settled Premium Paid Option on the underlying EUA Forward contract for the corresponding December expiry. These contracts, if "in the money" expire into their underlying EUA Forward contracts with a traded price equal to the Strike Price (see below)
Lot Size	1000 tonnes
Currency	Euro
Pricing	Euro and Euro cents per metric tonne
Minimum tick	€0.01 per tonne
Option Type	Options are European style and will be automatically exercised on the expiry day if they are "in the money". If an option is "out of the money" it will expire automatically. It is not permitted to exercise the option on any other day or in any other circumstances. No manual exercise is permitted.
Option Premium	The Premium is paid at the time of purchase.
Last trading day	Contracts will expire at 18:00 hours UK time 3 business days prior to the last Monday of the options contract month. Where the last Monday of the contract month is not a business day, or there is a non-business day in the four days following the last Monday of the contract month, then the expiry day will be 3 days prior to the second last Monday of the contract month. In cases where there is a non-business day in the four days following the second last Monday of the contract month, then the expiry day will be 3 days prior to the third last Monday of the contract month.
Expiry	18:00 hours UK time on the last trading day Automatic exercise settings are pre-set to exercise contracts which are one minimum price fluctuation or greater "in-the-money" when compared to the relevant reference price. Members are not permitted to override automatic exercise settings or manually enter exercise instructions for this contract. The reference price will be a price in Euros and Euro cents, equal to the daily settlement price for the December EUA Forward contract of the corresponding year For these purposes "final settlement price" means the final settlement price on the expiry day of the underlying EUA forward contract.
Contract series	Four rolling month contracts (March, June, September and December) plus an additional two December contracts All option contracts expire into the underlying December contract of the corresponding year.
Strike Price	Fifty strike prices in increments of €0.50 above and below the "at-the-money" strike price in all contract series. Where the "at the money" strike price of the underlying commodity moves, additional strikes will be added each business day.
Margin	Options will be subject to Initial Margin and Net Liquidation Value variation margin on a daily basis.
Business Days	UK business days

CER Options
Description	Physically settled Premium Paid Option on the underlying CER Forward contract for the corresponding December expiry. These contracts, if "in the money" expire into their underlying CER Forward contracts with a traded price equal to the Strike Price (see below)
Lot Size	1000 tonnes
Currency	Euro
Pricing	Euro and Euro cents per metric tonne
Minimum tick	€0.01 per tonne
Option Type	Options are European style and will be automatically exercised on the expiry day if they are "in the money". If an option is "out of the money" it will expire automatically. It is not permitted to exercise the option on any other day or in any other circumstances. No manual exercise is permitted.
Option Premium	The Premium is paid at the time of purchase.
Last trading day	Contracts will expire at 18:00 hours UK time 3 business days prior to the last Monday of the options contract month. Where the last Monday of the contract month is not a business day, or there is a non-business day in the four days following the last Monday of the contract month, then the expiry day will be 3 days prior to the second last Monday of the contract month. In cases where there is a non-business day in the four days following the second last Monday of the contract month, then the expiry day will be 3 days prior to the third last Monday of the contract month.
Expiry	18:00 hours UK time on the last trading day Automatic exercise settings are pre-set to exercise contracts which are one minimum price fluctuation or greater "in-the-money" when compared to the relevant reference price. Members are not permitted to override automatic exercise settings or manually enter exercise instructions for this contract. The reference price will be a price in Euros and Euro cents, equal to the daily settlement price for the December EUA Forward contract of the corresponding year For these purposes "final settlement price" means the final settlement price on the expiry day of the underlying EUA forward contract.
Contract series	Four rolling month contracts (March, June, September and December) plus an additional two December contracts All option contracts expire into the underlying December contract of the corresponding year.
Strike Price	Fifty strike prices in increments of €0.50 above and below the "at-the-money" strike price in all contract series. Where the "at the money" strike price of the underlying commodity moves, additional strikes will be added each business day.
Margin	Options will be subject to Initial Margin and Net Liquidation Value variation margin on a daily basis.
Business Days	UK business days

Expiry Schedule for Forward Contracts

OTC Forward EUA and CER Contract Expiry Dates
Contract Series	Expiry Date
December 10	20/12/2010
December 11	19/12/2011
December 12	17/12/2012
December 13	16/12/2013
December 14	15/12/2014
December 15	14/12/2015