Common use of Escalation Factor Clause in Contracts

Escalation Factor. The escalation factor for any Fiscal Year y will be calculated using the following formula: Where y≤2014: Escalationy = 1 Where y>2014: Escalation = m + ⎛(1 − m )× CPIy ⎞ ⎜ ⎟ y Cap ⎝ cap CPI ⎠2014 Where • mcap = the proportion of the Availability Payment that is associated with the bidder’s cost base that is not subject to movements in indexation and defined as 85% in this Agreement • CPIy = CPI as at July 1 of Fiscal Year y • CPI 2014 = CPI as at July 1, 2014

Escalation Factor. The escalation factor for any Fiscal Year y will be calculated using the following formula: Where y≤2014: Where y>2014: Escalationy Escalationy = 1 Where y>2014: Escalation = m mCap ⎛ ⎜( m1+ ⎛(1 − m )× CPIy ⎞ ⎜ ⎟ y Cap Where ⎝ cap CPI ⎠2014 Where 2014 ⎠ • mcap = the proportion of the Availability Payment that is associated with the bidder’s cost base that is not subject to movements in indexation and defined as 85% in this Agreement indexation, • CPIy = CPI as at July 1 of Fiscal Year y • CPI 2014 = 2014= CPI as at July 1, 2014

Escalation Factor. The escalation factor for any Fiscal Year y will be calculated using the following formula: Where y≤2014: Escalationy = 1 Where y>2014: Escalation Escalationy = m + ⎛(1 − m )× CPIy ⎞ ⎜ ⎟ CPI y Cap ⎝ cap CPI ⎠2014 2014 Where • mcap = the proportion of the Availability Payment that is associated with the bidder’s cost base that is not subject to movements in indexation and defined as 85% in this Agreement • CPIy = CPI as at for July 1 of Fiscal Year y y, provided that if such CPI is not yet published as at the date of calculation it shall be the then most recently published monthly CPI • CPI 2014 = CPI as at for July 1, 2014