Common use of Definition of Price Adjustment Clause in Contracts

Definition of Price Adjustment. The Price Adjustment Index shall be equal to the equally weighted (i.e., mean) average of (a) the "Housing Price Index," which, except as provided in clause (ii) below, is defined as the four-year rolling average of the combined mean average of the Median Sales Prices of Existing Homes in both the "Los Angeles Area" and the "Ventura Area" as published monthly by the Planning, Research and Economics Division of the California Association of Realtors (the "Median Sales Prices"); and (b) the four-year rolling average of the Faculty Salary Index for four-year private universities and colleges as published annually in the March edition of the Bulletin of the American Association of University Professors (the "Faculty Salary Index"). The Faculty Salary Index shall be converted by Declarant to a monthly index in order to average it on a comparable basis with the Housing Price Index. In the event the California Association of Realtors fails to publish the Median Sales Prices for a particular month or consecutive months, the missing price(s) will be determined by prorating on a straight-line basis the difference between the Escrow No. Order No. price immediately prior to the missing price(s) and the price immediately following the missing price(s). In the event that either of the indices used to calculate the Price Adjustment Index is hereafter discontinued, ceases to be published regularly, is materially modified or otherwise in the judgment of Declarant becomes inappropriate for the purpose stated herein, Declarant shall from time to time select another comparable regularly published index or indices or other statistical indicator that will serve to fulfill the below stated intent.

Definition of Price Adjustment. The Price Adjustment Index shall be equal to the equally weighted (i.e., mean) average of (a) the "Housing Price Index," which, except as provided in clause (ii) below, is defined as the four-year rolling average of the combined mean average of the Median Sales Prices of Existing Homes in both the "Los Angeles Area" and the "Ventura Area" as published monthly by the Planning, Research and Economics Division of the California Association of Realtors (the "Median Sales Prices"); and (b) the four-year rolling average of the Faculty Salary Index for four-year private universities and colleges as published annually in the March edition of the Bulletin of the American Association of University Professors (the "Faculty Salary Index"). The Faculty Salary Index shall be converted by Declarant to a monthly index in order to average it on a comparable basis with the Housing Price Index. In the event the California Association of Realtors fails to publish the Median Sales Prices for a particular month or consecutive months, the missing price(s) will be determined by prorating on a straight-line basis the difference between the Escrow No. Order No. price xxxxx immediately prior to the missing price(s) and the price immediately following the missing price(s). In the event that either of the indices used to calculate the Price Adjustment Index is hereafter discontinued, ceases to be published regularly, is materially modified or otherwise in the judgment of Declarant becomes inappropriate for the purpose stated herein, Declarant shall from time to time select another comparable regularly published index or indices or other statistical indicator that will serve to fulfill the below stated intent.