Adjustment for CPI Clause Samples
An Adjustment for CPI clause establishes a mechanism for modifying payments or contract values in line with changes in the Consumer Price Index (CPI). Typically, this clause specifies that amounts due under the contract, such as rent or service fees, will be periodically reviewed and adjusted based on the percentage change in the CPI over a defined period. For example, annual rent may increase each year in proportion to inflation as measured by the CPI. The core function of this clause is to ensure that the real value of payments remains consistent over time, protecting parties from the effects of inflation.
POPULAR SAMPLE Copied 2 times
Adjustment for CPI. On the fifth anniversary of the Rent Commencement Date , on the tenth anniversary of the Rent Commencement Date, and on the fifth anniversary of the commencement of each Extension Period (as such term is defined in Section 10.12 hereof) (each an "Adjustment Date") the Annual Fixed Rent Rate shall be increased by multiplying said rate by the lesser of (i) a fraction, the numerator of which shall be the Price Index (as hereinafter defined) most recently published prior to the Adjustment Date, and the denominator of which shall be the Base Price Index (as hereinafter defined), or (ii) one hundred four percent (104%) per year, compounded annually over the then prior five (5) years of the Term of this Lease. As used herein, the term "Price Index" shall mean and refer to the "Consumer Price Index for Urban Wage Earners and Clerical Workers, for the Boston, Massachusetts area, All Items (1982-84=100)" published by the Bureau of Labor Statistics of the United States Department of
Adjustment for CPI. Milestone Payments and Standby Payments are subject to an annual adjustment in accordance with section 3.19 of the Agreement.
Adjustment for CPI. On the fifth anniversary of the Rent Commencement Date, on the tenth anniversary of the Rent Commencement Date (if Tenant elects to have Landlord advance the Tenant Allowance), and on the fifth anniversary of the commencement of each Extension Period (as such term is defined in Section 10.12 hereof) (each an "Adjustment Date") the Annual Fixed Rent Rate shall be increased by multiplying said rate by the lesser of (i) a fraction, the numerator of which shall be the Price Index (as hereinafter defined) most recently established prior to the Adjustment Date, and the denominator of which shall be the Base Price Index (as hereinafter defined), or (ii) one hundred four percent (104%) per year, compounded annually over the then prior five (5) years of the Term of this Lease. As used herein, the term "Price Index" shall mean and refer to the "Consumer Price Index for Urban Wage Earners and Clerical Workers, for the Boston, Massachusetts area, All Items (1982-84=100)" published by the Bureau of Labor Statistics of the United States Department of Labor or successor or substitute index appropriately adjusted, and the term "Base Price Index" shall mean and refer to the Price Index most recently established prior to (a) the Commencement Date or (b) with respect to any Extension Period, the commencement date of such Extension Period, as applicable. In the event the Price Index (or a successor or substitute index) shall not be published for the City of Boston, or for the months indicated above, the corresponding index for the United States City Average (and if this is not available, a reliable governmental or other nonpartisan publication evaluating similar or equivalent information as used in the Price Index) shall be used. In the event the Price Index ceases to use the 1982-84 average of 100 as the basis of calculation, or if a substantial change is made in the terms or numbers of items contained in the Price Index, then the Price Index shall be adjusted to the figure that would have been arrived at had the manner of computing the Price Index in effect at the date of this Lease not been changed.
Adjustment for CPI. On January 1, 2003 (the "Adjustment Date"), the ------------------ Annual Base Rent Rate shall be increased by multiplying said rate by a fraction, the numerator of which shall be the Price Index (as hereinafter defined) most recently established prior to the Adjustment Date, and the denominator of which shall be the Base Price Index (as hereinafter defined), compounded monthly over the first five (5) years of the Term of this Lease. As used herein, the
Adjustment for CPI. On the later of September 1, 2003 or the Commencement of the Sixth Lease Year and on the later of September 1, 2008 or the Commencement of the Eleventh Lease Year (the "Adjustment Date"), the Annual Fixed Rent Rate shall be increased by multiplying said rate by a fraction, the numerator of which shall be the Price Index (as hereinafter defined) most recently established prior to the Adjustment Date, and the denominator of which shall be the Base Price Index (as hereinafter defined). As used herein, the term "Price Index" shall mean and refer to the "Consumer Price Index for Urban Wage Earners and Clerical Workers, for the Boston, Massachusetts area, All Items (1982-84=100)" published by the Bureau of Labor Statistics of the United States Department of Labor or successor or substitute index appropriately adjusted, and the term "Base Price Index" shall mean and refer to the Price Index most recently established prior to September 1, 1998. In the event the Price Index (or a successor or substitute index) shall not be published for the City of Boston, or for the months indicated above, the corresponding index for the United States City Average (and if this is not available, a reliable governmental or other nonpartisan publication evaluating similar or equivalent information as used in the Price Index) shall be used. In the event the Price Index ceases to use the 1982-84 average of 100 as the basis of calculation, or if a substantial change is made in the terms or numbers of items contained in the Price Index, then the Price Index shall be adjusted to the figure using the replacement method of calculation utilized by the United States Department of Labor. Notwithstanding the foregoing, any such increase shall not exceed four percent (4%) per year compounded annually. By way of example on September 1, 2003 the Monthly Base Rent $229,209.38 x CPI @ August 1, 2003/CPI @ August 1, 1998 but in no event more than $278,947.82 (i.e., $229,209.38 plus 4% per year compounded for five (5) years or $229,209.38 x 1.217).
Adjustment for CPI. (a) The amount of the Contributions in Schedule 2 are subject to adjustment for changes in CPI as follows: DCP = DC x A B where: DCP = the actual Contribution payment amount payable at the time the particular payment is made; DC = the particular Contribution payment amount required to be paid as per Schedule 2; A = the most recent CPI published by the Australian Bureau of Statistics prior to the date the payment is due to be made; and B = the most recent CPI published by the Australian Bureau of Statistics prior to the date of the MOU.
(b) If after the formula in clause 7.3(a) is applied the Contribution amount will be less than $500,000, the Contribution will not be adjusted.
Adjustment for CPI. The amount of the Contributions in column 3 of the table in Schedule 2 are subject to adjustment for changes in CPI as follows: DCP = DC x A B where: DCP = the actual Contribution payment amount payable at the time the particular payment is made; DC = the particular Contribution payment amount required to be paid as per column 3 of the table in Schedule 2; A = the most recent CPI published by the Australian Bureau of Statistics prior to the date the payment is due to be made; and B = the most recent CPI published by the Australian Bureau of Statistics prior to the date of this Agreement. If after the formula in clause 7.4 is applied the Contribution amount will be less than the particular Contribution payment amount required to be paid as per column 3 of the table in Schedule 2, the Contribution will not be adjusted.
Adjustment for CPI. The amount of the Contributions in column 3 of the table in Schedule 2 are subject to adjustment for changes in CPI as follows: DCP = DC x A B where: DCP = the actual Contribution payment amount payable at the time the particular payment is made; DC = the particular Contribution payment amount required to be paid as per column 3 of the table in Schedule 2; A = the most recent CPI published by the Australian Bureau of Statistics prior to the date the payment is due to be made; and B = the most recent CPI published by the Australian Bureau of Statistics prior to the date of this Agreement.