Fee Increases for Inflation Clause Samples
The 'Fee Increases for Inflation' clause allows for the adjustment of fees or charges under a contract to account for changes in inflation over time. Typically, this clause specifies a method for calculating fee increases, such as linking adjustments to a recognized inflation index or setting a fixed annual percentage increase. By providing a structured approach to fee adjustments, the clause ensures that the value of payments remains consistent in real terms, protecting both parties from the eroding effects of inflation and reducing the risk of disputes over future pricing.
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Fee Increases for Inflation. Effective October 1, 2004, upon written notice in accordance with section 2.5, Certegy shall have the right, three times during the Extended Period, to increase one or more of the fees set forth on the Schedules, excluding the Pass Through Fees, by a percentage equal to the Percentage Increase, if any, in the Consumer Price Index as described below, but not to exceed 3% in any one increase. For purposes hereof, the following definitions shall apply:
Fee Increases for Inflation. Effective October 1, 2004, upon written notice in accordance with section 2.5, Certegy shall have the right, three times during the Extended Period, to increase one or more of the fees set forth on the Schedules, excluding the Pass Through Fees, by a percentage equal to the Percentage Increase, if any, in the Consumer Price Index as described below, but not to exceed 3% in any one increase. For purposes hereof, the following definitions shall apply:
(i) The “Consumer Price Index” shall mean the Consumer Price Index of the Bureau of Labor Statistics of the United States Department of Labor (the “DOL”) for All Urban Consumers, U.S. City Average (1982-84=100), “All Items” (the “Index”). If the DOL revises the basis on which the Index is now calculated, the parties shall make an appropriate conversion to a revised “Index” on the basis of conversion factors published by the DOL. If conversion factors are not available from the DOL, either party may request the DOL to provide an appropriate conversion or adjustment. If the DOL is unable or unwilling to provide an appropriate conversion or adjustment, or if the Index is discontinued, the parties shall in good faith agree on a suitable substitute for the Index.
(ii) The “Percentage Increase” shall mean the percentage equivalent to the fraction, the numerator of which is the Index for the Comparative Month less the Index for the Base Month, and the denominator of which is the Index for the Base Month.