BEC-22: How do I calculate the “Exposure” under the (AIC) Confirmation Agreement?

Under the (AIC) Confirmation Agreement, “Exposure” means the sum of: (i) 10% of the Remaining Contract Value under this Confirmation Agreement as determined by Buyer in a commercially reasonable manner and (ii) the summation across the applicable Seasons the following calculation: for each Season separately, in the event that the Seasonal Total Reduction is greater than the Seasonal Total, 100% of the positive difference between the Seasonal Total Reduction and the Seasonal Total net of any payment made to Buyer in connection with the Adjusted Seasonal Total. The calculation under (ii) only applies if the Compliance Zone for ZRCs is not Local Resource Zone 4. The Seasonal Total, Seasonal Total Reduction, and Seasonal Total Adjustment are described on page 2 to the (AIC) Confirmation Agreement.

Additionally, please see Attachment A to the (AIC) Confirmation Agreement for additional information regarding rounding.