TLG - Media, page-11188

I've since done more reading and realized I may have misunderstood reference prices in my last comment.
My new understanding is this pricing mechanism isn't a 'minimum' price, rather it's used to smooth out fluctuations in the spot price?

An example stated the reference price is the spot price of commodity on some agreed date.
The floating price will be an average of the reference prices over some agreed amount of time.
For a simple example, if a product was purchased once a month and the reference price was adjusted weekly:

		Spot Price
1	Week 1	$7500
2	Week 2	$8500
3	Week 3	$11,000
4	Week 4	$12,000
5	Floating Price	$9750 (actual amount paid)

So in the binding agreement we'll be finding out how the spot price is determined and we might see some sort of pricing schedule?
Is this the correct interpretation?