Common use of Book-Out Clause in Contracts

Book-Out. 2.1 In consideration for the Parties’ mutual agreement to book-out the Relevant Cargo and cancel CCL’s delivery and [Buyer]’s acceptance obligations under the SPA in respect of the Relevant Cargo, [EITHER (A) if a fixed price Book-Out: [CCL or Buyer] shall pay USD[●] (US$[●]) to [Buyer or CCL] (the “Book-Out Settlement Amount”);] [OR (B) if an index priced Book Out: the “Book-Out Settlement Amount”, determined in accordance with the following formula, shall be payable either: (i) by [CCL or Buyer] to [Buyer or CCL] if the Book-Out Settlement Amount is a positive amount; or (ii) by [CCL or Buyer] to [Buyer or CCL] if the Book-Out Settlement Amount is a negative amount: Book-Out Settlement Amount (in [USD]) = SPA Notional Amount – (minus) Book Out Notional Amount Where: