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 by the Final Compliance Date, Delivering Party may, by written notice, terminate the parties’ “Physical Settlement” obligations and Receiving Party must pay Delivering Party’s Replacement Cost (if positive) on the next Business Day, adjusted for amounts previously paid (other than Premium by Receiving Party on the relevant EU Emissions Allowance Transaction.