By Exchange Clause Samples

By Exchange. In the event of a Failure to Take by Exchange, Exchange will pay to the Seller an amount equal to: i. the reasonable direct costs, claims, expenses and damages suffered or incurred by the Seller as a result of Exchange's failure to take the Failure Quantity including, without limitation or duplication, (a) any excess of that portion of the Purchase Amount payable with respect to the Failure Quantity over the proceeds from the sale of the Failure Quantity, if any, (b) the cost of storing or selling a quantity of gas or Oil, as applicable, equal to the Failure Quantity, (c) the costs or charges levied by the Transportation System as a result of such Failure to Take, and (d) transportation, storage and other costs, if any, related to the Failure to Take the Failure Quantity; plus ii. interest from the date of the occurrence of the Failure to Take at the Default Rate to and including the date of payment to the Seller of all such amounts. The Seller will deliver to Exchange a separate Invoice in respect of the PhysicalPhysically Settled Futures Transaction which is the subject of the Failure to Take itemizing separately the amounts payable under (i) and (ii).