AD FTE Consumption. In the event that the total number of AD FTEs delivered by IBMGS-US for a Contract Year varies from the AD FTE Baseline set forth in the Supplement on the Commencement Date for that Contract Year, (1) that portion of such variance which is no more than +/-10 percent from the AD FTE Baseline shall be added to or subtracted from the AD FTE Baseline for the subsequent Contract Year, as appropriate, and the Parties shall update the Supplement to reflect such adjustment, and (2) for that portion of such variance which exceeds +/-10 percent from the AD FTE Baseline, if any, the Parties shall make a financial adjustment based on the ARC or the RRC in respect of AD FTEs, as appropriate, in effect for such Contract Year, provided, however, that the RRC for any variance exceeding 10 percent below the AD FTE Baseline shall be calculated at the base rate for AD FTEs set forth in the Supplement (the "AD FTE Base Rate"). In the event the number of AD FTEs that IBMGS-US estimates will be necessary to complete an Eckerd project which is the subject of a New Services Work Order increases by more than 10 percent between the completion of the internal design and implementation phases, except as attributable to approved changes or other actions of Eckerd, any AD FTEs over 110 percent of such estimate shall not be charged to the AD FTE Baseline for the Contract Year in which such AD FTEs were provided.
