Template:Nutshell EUA Annex Delivering Party’s Replacement Cost

Delivering Party’s Replacement Cost means for Receiving Party’s failure to accept delivery of a number of Allowances (the “DPRC Shortfall”):

(i)

(1) the relevant Allowance Purchase Price/Allowance Strike Price plus, the parties’ “Physical Settlement” obligations are terminated following a Suspension Event, the Close-out Cost of Carry Amount; less

(2) the price (per Allowance) the Calculation Agent determines Delivering Party, would reasonably receive in an arm’s length spot transaction on the Final Compliance Date for the same number of equivalent Allowances to be delivered on the later of the Final Compliance Date and the Delivery Business Day on which such Allowances would be delivered under normal market practice for such a transaction; multiplied by:

(ii) the DPRC Shortfall; plus

(iii) interest at the Default Rate from the Delivery Date to the date of termination in accordance with Part (d)(ii)(2)(B)(Failure to Comply Not Remedied) on an amount equal DPRC Shortfall x any excess of the relevant Allowance Purchase Price/Allowance Strike Price over the spot price determined under paragraph (i)(2) above.