$%7%$H
8 Adjustment
$VWKHDFFHOHUDWLRQYDOXHGXHWRJUDYLW\LVQRWWKHVDPHDWHYHU\ORFDWLRQRQHDUWK
HDFKEDODQFHPXVWEHFRRUGLQDWHGLQFRPSOLDQFHZLWKWKHXQGHUO\LQJSK\VLFDO
ZHLJKLQJSULQFLSOHWRWKHH[LVWLQJDFFHOHUDWLRQGXHWRJUDYLW\DWLWVSODFHRIORFDWLRQ
RQO\LIWKHEDODQFHKDVQRWDOUHDG\EHHQDGMXVWHGWRWKHORFDWLRQLQWKHIDFWRU\7KLV
DGMXVWPHQWSURFHVVPXVWEHFDUULHGRXWIRUWKHILUVWFRPPLVVLRQLQJDIWHUHDFK
FKDQJHRIORFDWLRQDVZHOODVLQFDVHRIIOXFWXDWLQJHQYLURQPHQWWHPSHUDWXUH7RUH
FHLYHDFFXUDWHPHDVXULQJYDOXHVLWLVDOVRUHFRPPHQGHGWRDGMXVWWKHEDODQFHSHUL
RGLFDOO\LQZHLJKLQJRSHUDWLRQ
2EVHUYHVWDEOHHQYLURQPHQWDOFRQGLWLRQV6WDELOLVDWLRQUHTXLUHVDZDUPXSSHULRGRI
RUKRXUVIRUPRGHOVG PJ(QVXUHWKDWWKHUHDUHQRREMHFWVRQWKH
ZHLJKLQJSODWH
8.1 Automatic adjustment via PSC
7KH GHIDXOW VHWWLQJ IRU EDODQFHV RI WKH VHULHV $%7 36& 21 SURPSWV DXWRPDWLF
DGMXVWPHQWYLDWKH36&IXQFWLRQ
7KHPRPHQWDFKDQJHLQWHPSHUDWXUHLVGHWHFWHGWKLVIXQFWLRQXVHVWKHLQWHUQDOWDUH
ZHLJKWWRFDUU\RXWIXOO\DXWRPDWLFDGMXVWPHQWZLWKWKHKHOSRIDWHPSHUDWXUHVHQVRU
,I36&LVOHIW21ZKHQWKHUHLVDWHPSHUDWXUHFKDQJHWKDWZRXOGLQIOXHQFHVHQVLWLYL
W\VSDQFDOLEUDWLRQH[HFXWHVDXWRPDWLFDOO\WRPDLQWDLQWKHVHQVLWLYLW\RIWKHEDODQFH
$GMXVWPHQWLQZHLJKLQJPRGHLVFDUULHGRXWDXWRPDWLFDOO\XQGHUWKHIROORZLQJFRQGL
WLRQV
,IDFKDQJHLQHQYLURQPHQWDOWHPSHUDWXUH&RFFXUV
:KHQDERXWIRXUKRXUVKDVSDVVHGVLQFHWKHSUHYLRXVFDOLEUDWLRQ
:KHQWKHEDODQFHLVVZLWFKHGIURPVWDQGE\VWDWXVWRZHLJKLQJPRGH
DQGFRQGLWLRQRUKDVEHHQPHW
:KHQEDODQFHZDVGLVFRQQHFWHGIURPWKHPDLQV
,IRQHRIWKHDERYHFRQGLWLRQVZDVPHWLQZHLJKLQJPRGHWKHZHLJKWV\PEROIODVKHV
IRUDERXWWZRPLQXWHVLQRUGHUWRQRWLI\WKHSHQGLQJDGMXVWPHQWDIWHUZDUGVWKHGLV
SOD\ZLOOVKRZ36&UXQ'XULQJRSHUDWLRQWKHGLVSOD\ZLOODXWRPDWLFDOO\FKDQJHDQG
WKHPRWRUVRXQGRIWKHZHLJKWORDGLQJV\VWHPLVKHDUG,QRUGHUWRHQVXUHSURSHU
36&RSHUDWLRQSUHYHQWYLEUDWLRQVDQGDLUIORZ$VVRRQDVWKHGLVSOD\LQJUDPVUH
DSSHDUVDIWHUFRPSOHWLQJDGMXVWPHQWYLD36&WKHEDODQFHUHWXUQVWRZHLJKLQJPRGH
7KHVHQVLWLYLW\EHIRUHDQGDIWHUDGMXVWPHQWLVVOLJKWO\GLIIHUHQW$OVRQRPHDVXUH
PHQWVFDQEHPDGHGXULQJDGMXVWPHQW7RSUHYHQWDVWDUWXSRIDGMXVWPHQWGXULQJD
PHDVXULQJSURFHVV\RXKDYHWRDFWXDWHWKH[ON/OFF]NH\DVVRRQDVWKHZHLJKW
V\PEROVWDUWVIODVKLQJ7KLVZLOOLQWHUUXSWDXWRPDWLFDGMXVWPHQW