Template:Nutshell EUA Annex (d)(ii)(2)

(2) Failure to Comply by Receiving Party: If Receiving Party fails to comply with the Requirements under the Scheme as specified below, the Payment Date will be postponed and Delivering Party may, by notice, require Receiving Party to comply, and:

(A) Failure to Comply Remedied: If Receiving Party complies by the Final Compliance Date:

(X) Delivering Party must deliver the Allowances to be Delivered and, on the Payment Date (where the Delivery Date will be the date of actual delivery) Receiving Party must pay:

(i) Allowance Forward Transactions': Allowance Purchase Price x Number of Allowances;

(ii) Allowance Option Transactions: Allowance Strike Price x number of Allowances to be Delivered; and

(Y) on same the Payment Date Receiving Party must pay interest at the Default Rateon number of Allowances due but not delivered on the Delivery Date x relevant Allowance Purchase Price/Allowance Strike Price from the original Delivery Date to the date of actual delivery.

(B) Failure to Comply Not Remedied: If Receiving Party fails to comply on or before the Final Compliance Date, Delivering Party may, by written notice to Receiving Party, terminate the parties’ obligations under “Physical Settlement” above and Receiving Party shall pay to Delivering Party an amount equal to Delivering Party’s Replacement Cost (if a positive number) on the first succeeding Business Day, adjusted to take into account any amount previously paid (other than Premium on Allowance Option Transactions) by Receiving Party to Delivering Party in respect of the relevant EU Emissions Allowance Transaction.