Application of automatic increase Sample Clauses
The 'Application of automatic increase' clause defines how and when certain amounts, such as fees, rent, or payments, will be automatically adjusted over time according to predetermined criteria. Typically, this clause specifies the frequency of increases (for example, annually) and the method of calculation, such as linking the increase to an inflation index or a fixed percentage. Its core practical function is to ensure that payments or obligations keep pace with economic changes or agreed benchmarks, thereby providing predictability and reducing the need for renegotiation.
Application of automatic increase. Unless designated otherwise under this subsection (4), if an automatic increase is selected under subsection (2)(ii) above, the automatic increase will take effect as of the first day of the second Plan Year following the Plan Year in which the automatic deferral election first becomes effective with respect to a Participant. (See Section 3.03 of the Plan.)