Template:M summ Equity Derivatives 12.9(a)(viii)

When the Hedging Party notifies an Increased Cost of Stock Borrow, specifiying a proposed Price Adjustment, the non-Hedging Party has three options:

• Accept the Price Adjustment and the Transaction is amended accordingly;
• Make a one-off payment of the determined Price Adjustment; or
• Terminate the Transaction on the second Scheduled Trading Day.

Only if the Non-Hedging Party has failed to give any such election by the end of the second Scheduled Trading Day can the Hedging Party terminate the Transaction. The Non-Hedging Party can lend the Hedging Party the relevant Shares in the intervening period to mitigate its loss.