Template:2002 ISDA Equity Derivatives Definitions 11.2(c)
11.2(c) If "Calculation Agent Adjustment" is specified as the Method of Adjustment in the
related Confirmation of a Share Transaction or Share Basket Transaction (or if no Method of Adjustment
is specified in the related Confirmation for such Transaction), then following the declaration by the
Issuer of the terms of any Potential Adjustment Event, the Calculation Agent will determine whether
such Potential Adjustment Event has a diluting or concentrative effect on the theoretical value of the
relevant Shares and, if so, will (i) make the corresponding adjustment(s), if any, to any one or more of:
- (A) in respect of a Share Option Transaction or a Share Basket Option Transaction,
the Strike Price, the Number of Options, the Option Entitlement, the Knock-in Price, the Knockout
Price, and the relevant Number of Shares; - (B) in respect of a Share Forward Transaction or a Share Basket Forward
Transaction, the Forward Price, the Forward Floor Price, the Forward Cap Price, the Knock-in
Price, the Knock-out Price, and the relevant Number of Shares; - (C) in respect of a Share Swap Transaction or a Share Basket Swap Transaction, the
Initial Price, the Equity Notional Amount, the Knock-in Price, the Knock-out Price, and the
relevant Number of Shares;
and, in any case, any other variable relevant to the exercise, settlement, payment or other terms of that
Transaction as the Calculation Agent determines appropriate to account for that diluting or concentrative
effect (provided that no adjustments will be made to account solely for changes in volatility, expected
dividends, stock loan rate or liquidity relative to the relevant Share) and (ii) determine the effective
date(s) of the adjustment(s). The Calculation Agent may (but need not) determine the appropriate
adjustment(s) by reference to the adjustment(s) in respect of such Potential Adjustment Event made by an
options exchange to options on the relevant Shares traded on such options exchange.