ESCALATION FORMULA Clause Samples

ESCALATION FORMULA. 4.1 Unless otherwise agreed between the Parties, the Base Access Charge elements, except the QCA Levy, and any other charges specified as being subject to escalation will escalate on each Escalation Date from and including the First Escalation Date, in accordance with the following formula:

ESCALATION FORMULA. 4.1 In this Part “Escalation Date” means each anniversary of the Commencement Date, but excluding each Review Date and “First Escalation Date” is that date specified in Part 1 of this Schedule 5.

ESCALATION FORMULA. The elements of the Ao and Bo and other charges set out in this Agreement are stated in either July 2002 money values or Financial Year 2003 money values as stated in the specific clauses and shall be escalated in accordance with the following formulae: For prices escalated monthly from July 2002 money values or such other money values as are Agreed Cy= CoRm For prices escalated annually from Financial Year 2003 money values Cy= CiRy Ro Ri where: Cy is the relevant charge as escalated; Co is the base charge in July 2002 money values or such other money values as are Agreed; Ci are the base values [ ]* and [ ]* used in the calculation of D2; Rm is the Retail Price Index for the month in which the event occurs which gives rise to the charge due and shall be estimated as follows if the Retail Price Index for the month in question is not available:- Rm = Rmn + n (Rmn - Rmn3); m is the month for which the Retail Price Index is to be estimated;

ESCALATION FORMULA. 4.1 Unless otherwise agreed between the Parties, the Base Access Charge elements, except the QCA Levy, and any other charges specified as being subject to escalation will escalate on each Escalation Date from and including the First Escalation Date, in accordance with the following formula: BACn = BACn-1 * CPIn / CPIn-1 Where: BACn means the escalated value of the relevant Base Access Charge element or other charge for the purpose of calculating Access Charges and other charges payable under this Agreement pursuant to Part 5 of this Schedule; BACn-1 means the escalated value of the relevant Base Access Charge element or other charge applied prior to the relevant Escalation Date or in the case of Access Charges at the First Escalation Date means the relevant Base Access Charge element shown in Table 1.1; CPIn means the Consumer Price Index Brisbane (Australian Bureau of Statistics Publication No.6401.0), as first published, for the Quarter the midpoint of which is 6 months prior to the midpoint of the Quarter commencing on the Escalation Date for which the variable BACn is being determined; CPIn-1 means the Consumer Price Index Brisbane (Australian Bureau of Statistics Publication No.6401.0), as first published, for the Quarter the midpoint of which is 18 months prior to the midpoint of the Quarter commencing on the Escalation Date for which the variable BACn is being determined. 4.2 Review of Consumer Price Index Formatted: Font: Bold, Not All caps 4.2.1 If in the reasonable opinion of QR Network or the Operator the Consumer Price Index used for the purposes of the escalation formula specified in Clause 4.1 of this Schedule 3Schedule 3: (a) is altered in a material way; (b) ceases to be published; or (c) ceases to be published at sufficiently regular intervals or is likely to cease to be published at sufficiently regular intervals for the purpose of the formula in Clause 4.1 of this Schedule 3Schedule 3, then QR Network or the Operator (as the case may be) shall notify the other Party in writing of such opinion. 4.2.2 Upon such notice being given, the Parties will negotiate with a view to agreeing to vary the application of the Consumer Price Index or to adopting an alternative or alternatives to the Consumer Price Index and failing agreement within forty five (45) days of such notice being given then the matter shall be referred to an expert in accordance with Clause 18.3 of the Agreement. 4.2.3 If the dispute is resolved after the next Escalation Date, t...

ESCALATION FORMULA. BACn = BACn-1 * CPIn / CPIn-1 Where: 4.1 Unless otherwise agreed between the Parties, the Base Access Charge elements, except the QCA Levy, and any other charges specified as being subject to escalation will escalate on each Escalation Date from and including the First Escalation Date, in accordance with the following formula:

ESCALATION FORMULA. 4.1 In this Part „Escalation Date‟ means each anniversary of the Commencement Date, but excluding each Review Date and „First Escalation Date‟ is that date specified in Part 1 of this Schedule 5. 4.2 The Base Annual Service Charge will be escalated on each Escalation Date from and including the First Escalation Date, in accordance with the following formula. An = A1 x (CPIn/CPI1) Where An is the Annual Service Charge payable under the Agreement for the relevant period ; A1 means the Base Annual Service Charge specified in Part 1 of Schedule 5 of this Agreement; CPIn is the Consumer Price Index Brisbane (Australian Bureau of Statistics Publication No.6401.0), as first published, for the Quarter the midpoint of which is six Months prior to the midpoint of the Quarter commencing on the Escalation Date for which the variable An is being determined; and CPI1 is the Consumer Price Index Brisbane (Australian Bureau of Statistics Publication N0.6401.0), as first published, for the Quarter the midpoint of which is six Months prior to the midpoint of the Quarter commencing on the First Escalation Date.

ESCALATION FORMULA. CFM-LEAP-X1A Spare Engines & Major Modules *****