Common use of ENGINE ESCALATION Clause in Contracts

ENGINE ESCALATION. (a) The Aircraft Basic Price of each Aircraft set forth in Table 1 of the Purchase Agreement includes an aggregate price for CF6-80C2 engines and all accessories, equipment and parts provided by the engine manufacturer. The adjustment in Engine price applicable to each Aircraft (Engine Price Adjustment) will be determined at the time of Aircraft delivery in accordance with the following formula: P(e) = (P(b) x CPI ) - P(b) Base Year Index (CPI), as set forth in Table 1 of the Purchase Agreement (b) The following definitions will apply herein: P(e) = Engine Price Adjustment P(b) = Engine Base Price (per Aircraft), as set forth in Table 1 of the Purchase Agreement. CPI is the Composite Price Index, a value determined using the Bureau of Labor Statistics, U.S. Department of Labor actual data in accordance with the formula below. The Index values utilized in the formula will be the numbers shown in the actual data for the ninth month prior to the month of scheduled Aircraft delivery or the ninth month prior to the Base Year Dollars month set forth in Table 1. CPI = L + C + M + E L = The Labor Index will be equal to the quotient of the value associated with the Aircraft Delivery Month divided by the value associated with the Base Year Dollar month in "Hourly Earnings of Aircraft Engines and Engine Parts Production Workers" SIC 3724, multiplied by 100 and then by 30%. EE1-1 P.A. No. 2021 23 C = The Industrial Commodities Index will be equal to 30% of the Producer Price Index for "all commodities other than Farm and Foods," Code 3-15 associated with the scheduled Aircraft delivery month. M = The Metals and Metal Products Index will be equal to 30% of the Producer Price Index for "Metals and Metal Products," Code 10 associated with the scheduled Aircraft delivery month. E = The Fuel Index will be equal to 10% of the Producer Price Index for "Fuel and Related Products and Power," Code 5 associated with the scheduled Aircraft delivery month. The Engine Price Adjustment will not be made if it would result in a decrease in the Engine Base Price. (c) The values of the Average Hourly Earnings and Producer Price Indices used will be those published as of a date 30 days prior to the scheduled Aircraft delivery to Customer. Such values will be considered final and no Engine Price Adjustment will be made after Aircraft delivery for any subsequent changes in published Index values. (d) In the event the Engine price escalation provisions are made non-enforceable or otherwise rendered null and void by any agency of the United States Government, or if the U.S. Department of Labor, Bureau of Labor Statistics (i) substantially revises the methodology (in contrast to benchmark adjustments or other corrections of previously published data) or (ii) discontinues publication of any of the data referred to above, General Electric Company (GE) agrees to meet jointly with Boeing and Customer, (to the extent such parties may lawfully do so,) to jointly select a substitute for the revised or discontinued data; such substitute data to lead in application to the same adjustment result, insofar as possible, as would have been achieved by continuing the use of the original data as it may have fluctuated had it not been revised or discontinued. If such Engine price escalation provisions, methodology or data publication are subsequently reinstated, Boeing will make adjustments consistent with the agreements defined in this Supplemental Exhibit EE1.

Appears in 3 contracts

Samples: Purchase Agreement (Atlas Air Inc), Purchase Agreement (Atlas Air Inc), Purchase Agreement (Atlas Air Inc)

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ENGINE ESCALATION. (a) The Aircraft Basic Price of each Aircraft set forth in Table 1 of the Purchase Agreement includes an aggregate price for CF6-80C2 engines and all accessories, equipment and parts provided by the engine manufacturerGeneral Electric Aircraft Engines (GE). The adjustment in Engine price Price applicable to each Aircraft (Engine Price Adjustment) will be determined at the time of Aircraft delivery in accordance with the following formula: P(e) Pe = [(P(bPb+F) x (CPI ) / CPIb)] - P(b) Pb where CPLb is the Engine Escalation Base Year Index (CPI), as set forth in Table 1 of the Purchase Agreement. (b) The following definitions will apply herein: P(e) Pe = Engine Price Adjustment P(b) Pb = Engine Base Price (per Aircraft), as set forth in Table 1 of the Purchase Agreement. CPI F = 0.005 x (N/12) x Pb where N is the Composite number of calendar months which have elapsed from the Engine Price IndexBase Year and Month up to and including the month of delivery, a both as shown in Table 1 of the Purchase Agreement. CPI = L + ICI (rounded to the nearest hundredth) 0 = A value determined using the U.S. Department of Labor, Bureau of Labor StatisticsStatistics "Employment Cost Index Wages and Salaries for Aircraft Manufacturing (SIC 3721)", U.S. Department calculated as a 3-month arithmetic average of Labor actual data in accordance with the formula below. The Index released values utilized in (expressed as a decimal and rounded to the formula will be nearest tenth) using the numbers shown in the actual data values for the ninth month 12th, 13th, and 14th months prior to the month of scheduled Aircraft delivery or then multiplied by 65% and rounded to the ninth nearest thousandth. ICI = A value determined using the U.S. Department of Labor, Bureau of Labor Statistics "Producer Prices and Price Index - Industrial Commodities Index" calculated as a 3-month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest hundredth) using the values for the 12th, 13th and 14th months prior to the Base Year Dollars month set forth in Table 1. CPI = L + C + M + E L = The Labor Index will be equal of scheduled delivery of the Aircraft, then multiplied by 35% and rounded to the quotient of the value associated with the Aircraft Delivery Month divided by the value associated with the Base Year Dollar month in "Hourly Earnings of Aircraft Engines and Engine Parts Production Workers" SIC 3724, multiplied by 100 and then by 30%. EE1-1 P.A. No. 2021 23 C = The Industrial Commodities Index will be equal to 30% of the Producer Price Index for "all commodities other than Farm and Foods," Code 3-15 associated with the scheduled Aircraft delivery month. M = The Metals and Metal Products Index will be equal to 30% of the Producer Price Index for "Metals and Metal Products," Code 10 associated with the scheduled Aircraft delivery month. E = The Fuel Index will be equal to 10% of the Producer Price Index for "Fuel and Related Products and Power," Code 5 associated with the scheduled Aircraft delivery monthnearest thousandth. The Engine Price Adjustment will not be made if it would result in a decrease in the Engine Base Price. (c) The values of the Average Hourly Earnings Employment Cost Index Wages & Salaries (SIC 3721) and Producer Prices and Price Indices Index - Industrial Commodities Index used will be those published as of a date 30 days prior to the first day of the scheduled Aircraft delivery month to Customer. As the Employment Cost Index Wages and Salaries for Aircraft Manufacturing (SIC 3721) values are only released on a quarterly basis, the value released for the month of March will be used for the months of January and February; the value for June used for April and May; the value for September used for July and August; and the value for December used for October and November. Such values will be considered final and no Engine Price Adjustment will be made after Aircraft delivery for any subsequent changes in published Index index values. If no values have been released for an applicable month, the provisions set forth in Paragraph e, below, will apply. If prior to delivery of an Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics changes the base year for determination of the L or ICI values as defined above, such rebase values will be incorporated in the Engine Price Adjustment calculation. (d) If at the time of delivery of an Aircraft, Boeing is unable to determine the Engine Price Adjustment because the applicable values to be used to determine L and ICI have not been released by the U.S. Department of Labor, Bureau of Labor Statistics, then: In the event the Engine price Price escalation provisions are made non-enforceable or otherwise rendered null and void by any agency of the United States Government, GE agrees to meet jointly with Boeing and Customer (to the extent such parties may lawfully do so) to adjust equitably the Aircraft Basic Price of any affected Aircraft to reflect an allowance for increase or if decrease in labor compensation and material costs occurring since February of the base price year which is consistent with the application provisions of this Supplemental Exhibit EE1. (e) If prior to delivery of an Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics (i) substantially revises the methodology used for the determination of the values to be used to determine the L and ICI values (in contrast to benchmark adjustments or other corrections of previously published data) or (ii) discontinues publication of any of the data referred to abovereleased values), General Electric Company (GE) agrees to meet jointly with Customer, Boeing and CustomerGE will, (prior to the extent delivery of such parties may lawfully do so,) to jointly Aircraft, select a substitute for such values from data published by the revised U.S. Department of Labor, Bureau of Labor Statistics or discontinued data; other similar data reported by non-governmental United States organizations, such substitute data to lead in application to the same adjustment result, result insofar as possible, as would have been achieved by continuing the use of the original data values as it they may have fluctuated had it not been revised during the applicable time period. Appropriate revisions of the formula will be made as required to reflect any substitute values. However, if within 24 months from delivery of the Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics should resume releasing values for the months needed to determine the Engine Price Adjustment, such values will be used to determine the increase or discontinued. If decrease in the Engine Price Adjustment determined at the time of delivery of such Engine price escalation provisions, methodology or data publication are subsequently reinstated, Boeing will make adjustments consistent with the agreements defined in this Supplemental Exhibit EE1Aircraft.

Appears in 2 contracts

Samples: Purchase Agreement (Lan Airlines SA), Purchase Agreement (Lan Airlines SA)

ENGINE ESCALATION. (a) The Aircraft Basic Price of each Aircraft set forth in Table 1 of the Purchase Agreement includes an aggregate price for CF6Rolls-80C2 Royce plc RB211-535 series engines and all accessories, equipment and parts provided by the engine manufacturer. The adjustment in Engine price Price applicable to each Aircraft (Engine Price Adjustment) will be determined at the time of Aircraft delivery in accordance with the following formula: P(e) Pe = (P(bPb + F) x CPI (LQ + MQ + EQ) - P(b) Base Year Index (CPI), as set forth in Table 1 of the Purchase AgreementPb (b) The following definitions will apply herein: P(e) Pe = Engine Price Adjustment P(b) Pb = Engine Base Price (per Aircraft), as set forth in Table 1 of the Purchase Agreement. CPI F = 0.005(N)(Pb), where N = the calendar year of scheduled Engine delivery, minus the year of the Base Year Dollars month shown in Table 1. For this calculation, Engine delivery is assumed to be the Composite Price Indexmonth of scheduled Aircraft delivery. LQ, a value determined using MQ and EQ are quotients obtained by dividing the Bureau of Labor Statistics, U.S. Department of Labor index number shown in the actual data in accordance with the formula below. The Index index values utilized in the each formula will be the arithmetic average (rounded to the nearest thousandth for LQ and nearest hundredth for MQ and EQ ) of the numbers shown in the actual data for the ninth 13th, 12th and 11th month prior to the month of scheduled Aircraft delivery or divided by the ninth arithmetic average (similarly rounded) of the numbers shown in the actual data for the 13th, 12th and 11th month prior to the Base Year Dollars month set forth in Table 1. CPI = L + C + M + E L LQ = The Labor Index will be equal to 60% of the quotient of the value associated with the Aircraft Delivery Month divided by the value associated with the Base Year Dollar month in obtained from "Hourly Earnings of Aircraft Engines and Engine Parts Production Workers" SIC 3724, multiplied by 100 and then by 30%rounded to the nearest ten-thousandth. EE1-1 P.A. No. 2021 23 C MQ = The Industrial Commodities Materials Index will be equal to 30% of the quotient obtained from "Producer Price Index for "all commodities other than Farm and Foods," - Code 3-15 associated with the scheduled Aircraft delivery month. M = The Metals and Metal Products Index will be equal to 30% of the Producer Price Index for "10, Metals and Metal Products," Code 10 associated with ", and rounded to the scheduled Aircraft delivery monthnearest ten-thousandth. E EQ = The Fuel Index will be equal to 10% of the quotient obtained from "Producer Price Index for "Fuel - Code 5, Fuels and Related Products and Power," Code 5 associated with ", and rounded to the scheduled Aircraft delivery monthnearest ten-thousandth. The Engine Price Adjustment will not be made if it would result in a decrease in the Engine Base Price. (c) The values of the Average Hourly Earnings and Producer Price Indices used will be those published as of a date 30 days prior to the scheduled Aircraft delivery to Customer. Such values will be considered final and no Engine Price Adjustment will be made after Aircraft delivery for any subsequent changes in published Index values. (d) In the event the Engine price escalation provisions are made non-enforceable or otherwise rendered null and void by any agency of the United States Government, or if the U.S. Department of Labor, Bureau of Labor Statistics (i) substantially revises the methodology (in contrast to benchmark adjustments or other corrections of previously published data) or (ii) discontinues publication of any of the data referred to above, General Electric Company (GE) agrees to meet jointly with Boeing and Customer, (to the extent such parties may lawfully do so,) to jointly select a substitute for the revised or discontinued data; such substitute data to lead in application to the same adjustment result, insofar as possible, as would have been achieved by continuing the use of the original data as it may have fluctuated had it not been revised or discontinued. If such Engine price escalation provisions, methodology or data publication are subsequently reinstated, Boeing will make adjustments consistent with the agreements defined in this Supplemental Exhibit EE1.

Appears in 1 contract

Samples: Purchase Agreement (Continental Airlines Inc /De/)

ENGINE ESCALATION. (a) The Aircraft Basic Price of each Aircraft set forth in Table 1 of the Purchase Agreement includes an aggregate price for CF6-80C2 engines and all accessories, equipment and parts provided by the engine manufacturer. The adjustment in Engine price applicable to each Aircraft (Engine Price Adjustment) will be determined at the time of Aircraft delivery in accordance with the following formula: P(e) Pe = (P(b) Pb x CPI ) - P(b) Pb CPIb where CPIb is the Base Year Index (CPI), as set forth in Table 1 of the Purchase Agreement (b) The following definitions will apply herein: P(e) Pe = Engine Price Adjustment P(b) Pb = Engine Base Price (per Aircraft), as set forth in Table 1 of the Purchase Agreement. CPI is the Composite Price Index, a value determined using the Bureau of Labor Statistics, U.S. Department of Labor actual data in accordance with the formula below. The Index values utilized in the formula will be the numbers shown in the actual data for the ninth month prior to the month of scheduled Aircraft delivery or the ninth month prior to the Base Year Dollars month set forth in Table 1. CPI = L + +C + M + E L = The Labor Index will be equal to the quotient of the value associated with the Aircraft Delivery Month divided by the value associated with the Base Year Dollar month in "Hourly Earnings of Aircraft Engines and Engine Parts Production Workers" SIC 3724, multiplied by 100 and then by 30%. EE1-1 P.A. 1 A. No. 2021 23 2025 40 C = The Industrial Commodities Index will be equal to 30% of the Producer Price Index for "all commodities other than Farm and Foods," Code 3-15 associated with the scheduled Aircraft delivery month. M = The Metals and Metal Products Index will be equal to 30% of the Producer Price Index for "Metals and Metal Products," Code 10 associated with the scheduled Aircraft delivery month. E = The Fuel Index will be equal to 10% of the Producer Price Index for "Fuel and Related Products and Power," Code 5 associated with the scheduled Aircraft delivery month. The Engine Price Adjustment will not be made if it would result in a decrease in the Engine Base Price. (c) The values of the Average Hourly Earnings and Producer Price Indices used will be those published as of a date 30 days prior to the scheduled Aircraft delivery to Customer. Such values will be considered final and no Engine Price Adjustment will be made after Aircraft delivery for any subsequent changes in published Index values. (d) In the event the Engine price escalation provisions are made non-enforceable or otherwise rendered null and void by any agency of the United States Government, or if the U.S. Department of Labor, Bureau of Labor Statistics (i) substantially revises the methodology (in contrast to benchmark adjustments or other corrections of previously published data) or (ii) discontinues publication of any of the data referred to above, General Electric Company (GE) agrees to meet jointly with Boeing and Customer, (to the extent such parties may lawfully do so,) to jointly select a substitute for the revised or discontinued data; such substitute data to lead in application to the same adjustment result, insofar as possible, as would have been achieved by continuing the use of the original data as it may have fluctuated had it not been revised or discontinued. If such Engine price escalation provisions, methodology or data publication are subsequently reinstated, Boeing will make adjustments consistent with the agreements defined in this Supplemental Exhibit EE1.

Appears in 1 contract

Samples: Purchase Agreement (Delta Air Lines Inc /De/)

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ENGINE ESCALATION. (a) The Aircraft Basic Price of each Aircraft set forth in Table 1 of the Purchase Agreement includes an aggregate price for CF6Rolls-80C2 Royce plc RB211 Trent series engines and all accessories, equipment and parts provided by the engine manufacturer. The adjustment in Engine price Price applicable to each Aircraft (Engine Price Adjustment) will be determined at the time of Aircraft delivery in accordance with the following formula: P(e) = (P(b) x CPI + F) (L(Q) + M(Q) + E(Q)) - P(b) Base Year Index (CPI), as set forth in Table 1 of the Purchase Agreement (b) The following definitions will apply herein: P(e) = Engine Price Adjustment P(b) = Engine Base Price (per Aircraft), as set forth in Table 1 of the Purchase Agreement. CPI F = 0.005(N)(P(b)), where N = the calendar year of scheduled Engine delivery minus the Price Base Year set forth in Table 1 of the Purchase Agreement. For this calculation, Engine delivery is assumed to be 3 months prior to the Composite Price IndexScheduled Delivery Month of the Aircraft. L(Q), a value determined using M(Q) and E(Q) are quotients obtained by dividing the Bureau of Labor Statistics, U.S. Department of Labor index number shown in the actual data in accordance with the formula below. The Index index values utilized in the formula will be the arithmetic average of the numbers shown in the actual data for the ninth 16th, 15th, and 14th month prior to the month Scheduled Delivery Month of scheduled the Aircraft delivery or divided by the ninth arithmetic average of the numbers shown in the actual data for the 16th, 15th, and 14th month prior to the Price Base Year Dollars month set forth in Table 11 of the Purchase Agreement. CPI = L + C + M + E L L(Q) = The Labor Index will be equal to 60% of the quotient of the value associated with the Aircraft Delivery Month divided by the value associated with the Base Year Dollar month in obtained from "Hourly Earnings of Aircraft Engines and Engine Parts Production Workers" SIC 3724, multiplied by 100 and then by 30%. EE1-1 B-1 P.A. No. 2021 23 C 1980 291 M(Q) = The Industrial Commodities Materials Index will be equal to 30% of the quotient obtained from "Producer Price Index for "all commodities other than Farm and Foods," - Code 3-15 associated with the scheduled Aircraft delivery month. M = The Metals and Metal Products Index will be equal to 30% of the Producer Price Index for "10, Metals and Metal Products," Code 10 associated with the scheduled Aircraft delivery month". E E(Q) = The Fuel Index will be equal to 10% of the quotient obtained from "Producer Price Index for "Fuel - Code 5, Fuels and Related Products and Power," Code 5 associated with the scheduled Aircraft delivery month". The Engine Price Adjustment will not be made if it would result in a decrease in the Engine Base Price. (c) The values of the Average Hourly Earnings and Producer Price Indices used will be those published for the specified months as of a date 30 days prior to the scheduled Aircraft delivery to CustomerScheduled Delivery Month of the Aircraft. Such values will be considered final and no Engine Price Adjustment will be made after Aircraft delivery for any subsequent changes in published Index values. (d) In If, prior to the event delivery of an Aircraft, the Engine price escalation provisions are made non-enforceable or otherwise rendered null and void by any agency of the United States Government, or if the U.S. Department of Labor, Bureau of Labor Statistics (i) substantially revises the methodology used for the determination of any index to be used to determine the LQ, MQ or EQ values (in contrast to benchmark adjustments or other corrections of previously published data) released indices), or (ii) discontinues publication of for any of reason has not released indices needed to determine the data referred to aboveapplicable Engine Price Adjustment, General Electric Company (GE) agrees to meet jointly with Boeing Boeing, Customer and CustomerRolls-Royce plc will, (prior to the extent delivery of such parties may lawfully do so,) to Aircraft, jointly select a substitute for the revised index from other Bureau of Labor Statistics data or discontinued data; such similar data reported by non-governmental organizations. Such substitute data to lead index will result in application to the same adjustment resultadjustment, insofar as possible, as would have been achieved by continuing the to use of the original data index as it such index may have fluctuated during the applicable time period had it such index not been revised or discontinued. If However, if after delivery of the Aircraft, the Bureau of Labor Statistics should resume releasing indices without revision in methodology for the months needed to determine the Engine Price Adjustment, such indices will be used to determine any increase or decrease in the Engine price escalation provisions, methodology or data publication are subsequently reinstated, Price Adjustment from that determined at the time of delivery of the Aircraft. Boeing will make any such adjustments in a manner consistent with the agreements defined in this Supplemental Exhibit EE1.-B.

Appears in 1 contract

Samples: Aircraft General Terms Agreement (Amr Corp)

ENGINE ESCALATION. (a) The Aircraft Basic Price of each Aircraft set forth in Table 1 of the Purchase Agreement includes an aggregate price for CF6-80C2 engines and all accessories, equipment and parts provided by the engine manufacturerGeneral Electric Aircraft Engines (GE). The adjustment in Engine price Price applicable to each Aircraft (Engine Price Adjustment) will be determined at the time of Aircraft delivery in accordance with the following formula: P(e) Pe = [(P(bPb + F) x ( CPI ) / CPIb )] - P(b) Base Year Index (CPI), Pb where CPIb is the engine escalation base year index as set forth in Table 1 of the Purchase Agreement. (b) The following definitions will apply herein: P(e) Pe = Engine Price Adjustment P(b) Pb = Engine Base Price (per Aircraft), as set forth in Table 1 of the Purchase Agreement. CPI F = 0.005 x (N/12) x Pb where N is the Composite number of calendar months which have elapsed from the Engine Price Indexbase year and month up to and including the month of delivery, a both as shown in Table 1 of the Purchase Agreement. CPI = L + ICI (rounded to the nearest hundredth) L = A value determined using the U.S. Department of Labor, Bureau of Labor StatisticsStatistics “Employment Cost Index Wages and Salaries for Aircraft Manufacturing (BLS series ID ciu2023211000000i)”, U.S. Department base 100 = December 2005, calculated as a 3-month arithmetic average of Labor actual data in accordance with the formula below. The Index released values utilized in (expressed as a decimal and rounded to the formula will be nearest tenth) using the numbers shown in the actual data values for the ninth month 12th, 13th, and 14th months prior to the month of scheduled Aircraft delivery or delivery, then multiplied by sixty-five percent (65%) (rounded to the ninth nearest thousandth). ICI = A value determined using the U.S. Department of Labor, Bureau of Labor Statistics “Producer Prices and Price Index—Industrial Commodities Index (BLS series ID wpu03thru15)”, base 100 = Calendar year 1982, calculated as a 3-month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest hundredth) using the values for the 12th, 13th and 14th months prior to the Base Year Dollars month set forth in Table 1. CPI = L + C + M + E L = The Labor Index will be equal of scheduled Aircraft delivery, then multiplied by thirty-five percent (35%) (rounded to the quotient of the value associated with the Aircraft Delivery Month divided by the value associated with the Base Year Dollar month in "Hourly Earnings of Aircraft Engines and Engine Parts Production Workers" SIC 3724, multiplied by 100 and then by 30%. EE1-1 P.A. No. 2021 23 C = The Industrial Commodities Index will be equal to 30% of the Producer Price Index for "all commodities other than Farm and Foods," Code 3-15 associated with the scheduled Aircraft delivery month. M = The Metals and Metal Products Index will be equal to 30% of the Producer Price Index for "Metals and Metal Products," Code 10 associated with the scheduled Aircraft delivery month. E = The Fuel Index will be equal to 10% of the Producer Price Index for "Fuel and Related Products and Power," Code 5 associated with the scheduled Aircraft delivery monthnearest thousandth). The Engine Price Adjustment will not be made if it would result in a decrease in the Engine Base Price. (c) The values of the Average Hourly Earnings Employment Cost Index Wages & Salaries and Producer Prices and Price Indices Index—Industrial Commodities Index used will be those published as of a date 30 thirty (30) days prior to the first day of the scheduled Aircraft delivery month to Customer. As the Employment Cost Index values are only released on a quarterly basis, the value released for the first quarter will be used for the months of January, February and March; the value released for the second quarter will be used for the months of April, May and June; the value released for the third quarter will be used for the months of July, August and September; the value released for the fourth quarter will be used for the months of October, November and December. Such values will be considered final and no Engine Price Adjustment will be made after Aircraft delivery for any subsequent changes in published Index index values. If no values have been released for an applicable month, the provisions set forth in paragraph 1(e), below, will apply. If prior to delivery of an Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics changes the base year for determination of the L or ICI values as defined above, such rebase values will be incorporated in the Engine Price Adjustment calculation. (d) In If at the time of delivery of an Aircraft, Boeing is unable to determine the Engine Price Adjustment because the applicable values to be used to determine L and ICI have not been released by the U.S. Department of Labor, Bureau of Labor Statistics; then, in the event the Engine price Price escalation provisions are made non-enforceable or otherwise rendered null and void by any agency of the United States Government, GE agrees to meet jointly with Boeing and Customer (to the extent such parties may lawfully do so) to adjust equitably the Aircraft Basic Price of any affected Aircraft to reflect an allowance for increase or if decrease in labor compensation and material costs occurring since February of the base price year which is consistent with the application provisions of this Supplemental Exhibit EE1. (e) If prior to delivery of an Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics (i) substantially revises the methodology used for the determination of the values to be used to determine the L and ICI values (in contrast to benchmark adjustments or other corrections of previously published data) or (ii) discontinues publication of any of the data referred to abovereleased values), General Electric Company (GE) agrees to meet jointly with Customer, Boeing and CustomerGE will, (prior to the extent delivery of such parties may lawfully do so,) to jointly Aircraft, select a substitute for such values from data published by the revised U.S. Department of Labor, Bureau of Labor Statistics or discontinued data; other similar data reported by non-governmental United States organizations, such substitute data to lead in application to the same adjustment result, result insofar as possible, as would have been achieved by continuing the use of the original data values as it they may have fluctuated had it not been revised during the applicable time period. Appropriate revisions of the formula will be made as required to reflect any substitute values. However, if within twenty-four (24) months from delivery of the Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics should resume releasing values for the months needed to determine the Engine Price Adjustment, such values will be used to determine the increase or discontinueddecrease in the Engine Price Adjustment determined at the time of delivery of such Aircraft. If such NOTE: The factor (CPI divided by the base year index) by which the Engine price escalation provisionsPrice is to be multiplied will be expressed as a decimal and rounded to the nearest thousandth. Any rounding of a number, methodology or data publication are subsequently reinstated, Boeing will make adjustments consistent with the agreements defined in as required under this Supplemental Exhibit EE1Xxxxxxx XX0 with respect to escalation of the Engine Price, will be accomplished as follows: if the first digit of the portion to be dropped from the number to be rounded is five or greater, the preceding digit will be raised to the next higher number.

Appears in 1 contract

Samples: Purchase Agreement (Fedex Corp)

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