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 engines and all accessories, equipment and parts provided by General Electric Aircraft Engines (GE). 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: Pe = [(Pb + F) x ( CPI / CPIb )] - 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: Pe = Engine Price Adjustment Pb = Engine Price (per Aircraft), as set forth in Table 1 of the Purchase Agreement. F = 0.005 x (N/12) x Pb where N is the number of calendar months which have elapsed from the Engine Price base year and month up to and including the month of delivery, 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 Statistics “Employment Cost Index Wages and Salaries for Aircraft Manufacturing (BLS series ID ciu2023211000000i)”, base 100 = December 2005, calculated as a 3-month arithmetic average of the released values (expressed as a decimal and rounded to the nearest tenth) using the values for the 12th, 13th, and 14th months prior to the month of scheduled Aircraft delivery, then multiplied by sixty-five percent (65%) (rounded to the 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 FED-PA-03712-EE1 December 12, 2011 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 month of scheduled Aircraft delivery, then multiplied by thirty-five percent (35%) (rounded to the nearest thousandth). The Engine Price Adjustment will not be made if it would result in a decrease in the Engine Price. (c) The values of the Employment Cost Index Wages & Salaries and Producer Prices and Price Index—Industrial Commodities Index used will be those published as of a date 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 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) 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 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 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 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 released values), Customer, Boeing and GE will, prior to delivery of such Aircraft, select a substitute for such values from data published by the U.S. Department of Labor, Bureau of Labor Statistics or other similar data reported by non-governmental United States organizations, such substitute to lead in application to the same adjustment result insofar as possible, as would have been achieved by continuing the use of the original values as they may have fluctuated 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 FED-PA-03712-EE1 December 12, 2011 should resume releasing values for the months needed to determine the Engine Price Adjustment, such values will be used to determine the increase or decrease in the Engine Price Adjustment determined at the time of delivery of such Aircraft.

Appears in 1 contract

Sources: Purchase Agreement (Fedex 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 General Electric Aircraft GEnx series engines and all accessories, equipment and parts provided by General Electric Aircraft Engines the engine manufacturer (GEEngines). 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: Pe = [(Pb + F) x ( CPI / CPIb )*****] - Pb where CPIb [*****] Where: [*****] [*****] [*****] [*****] [*****] [*****] [*****] Where: [*****] [*****] [*****] is the engine escalation base year index as set forth in Table 1 of the Purchase Agreement. (b) The following definitions will apply herein: Pe = Engine Price Adjustment Pb = Engine Price (per Aircraft), as set forth in Table 1 of the Purchase Agreement. F = 0.005 x (N/12) x Pb where N is the number of calendar months which have elapsed from the Engine Price base year and month up to and including the month of delivery, both as shown in Table 1 of the Purchase Agreement. CPI = L + ICI (rounded to the nearest hundredth) L = A a value determined using the U.S. Department of Labor, Bureau of Labor Statistics “Statistics, Employment Cost Index for NAICS Aircraft Manufacturing - Wages and Salaries for Aircraft Manufacturing (BLS series Series ID ciu2023211000000iCIU2023211000000I)”, base 100 = December 2005, calculated as by establishing a three (3-) month arithmetic average of the released values value (expressed as a decimal and rounded to the nearest tenth) using the values for the 12th11th, 13th, 12th and 14th 13th months prior to the month of scheduled Aircraft delivery, then multiplied by sixty-five percent (65%) (rounded to the 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 FED-PA-03712-EE1 December 12, 2011 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 month of scheduled Aircraft delivery, then multiplied by thirty-five percent (35%) (rounded to the nearest thousandth). The Engine Price Adjustment will not be made if it would result in a decrease in the Engine Price. (c) The values delivery of the Employment Cost Index Wages & Salaries and Producer Prices and Price Index—Industrial Commodities Index used will be those published as of a date thirty (30) days prior to the first day of the scheduled Aircraft delivery month to Customerapplicable Aircraft. 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 “[***]” This information is subject to confidential treatment and no Engine Price Adjustment will be made after Aircraft delivery for any subsequent changes in published index values. If no values have has been released for an applicable month, omitted and filed separately with the provisions set forth in paragraph 1(e), below, will apply. If prior to delivery of an Aircraft, commission [*****] [*****] [*****] Where: [*****] [*****] [*****] is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics changes the base year for determination Statistics, Producer Prices and Price Index - Industrial Commodities Index (BLS Series ID WPU03THRU15), calculated as a three (3) month arithmetic average of the L or ICI released monthly values (expressed as defined abovea decimal and rounded to the nearest tenth) using the values for the 11th, such rebase 12th and 13th months prior to the month of scheduled delivery of the applicable Aircraft. [*****] [*****] Where: [*****] is the number of calendar months which have elapsed from the Airframe Price Base Year and month up to and including the month of delivery, both as shown in Table 1 of the Purchase Agreement. The entire calculation of [*****] will be rounded to four (4) places, and the final value of B will be rounded to the nearest dollar. As an example, for an Aircraft scheduled to be delivered in the month of July, the months June, July and August of the preceding year will be utilized in determining the value of [*****]. NOTE: (i) In determining the values of [*****], all calculations and resulting values will be incorporated expressed as a decimal rounded to the nearest ten-thousandth. (ii) [*****] is the numeric ratio attributed to labor in the Engine Price Adjustment calculation.formula. “[***]” This information is subject to confidential treatment and has been omitted and filed separately with the commission (diii) If at [*****] is the time of delivery of an Aircraft, Boeing is unable numeric ratio attributed to determine materials in the Engine Price Adjustment because formula. (iv) The [*****]are the applicable actual average values to be used to determine L and ICI have not been released reported by the U.S. Department of Labor, Bureau of Labor Statistics; then. The actual average values are calculated as a three (3) month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, in the event 12th and 13th months prior to the Engine Price escalation provisions are made non-enforceable or otherwise rendered null base year. The applicable base year and void corresponding denominator is provided 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 decrease in labor compensation and material costs occurring since February of the base price year which is consistent with the application provisions Table 1 of this Supplemental Exhibit EE1Purchase Agreement. (ev) If prior to delivery The final value of an Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics substantially revises the methodology used for the determination of the values to [*****] will be used to determine the L and ICI values (in contrast to benchmark adjustments or other corrections of previously released values), Customer, Boeing and GE will, prior to delivery of such Aircraft, select a substitute for such values from data published by the U.S. Department of Labor, Bureau of Labor Statistics or other similar data reported by non-governmental United States organizations, such substitute to lead in application rounded to the same adjustment result insofar as possible, as would have been achieved by continuing the use of the original values as they may have fluctuated 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 nearest dollar. (24vi) months from delivery of the Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics FED-PA-03712-EE1 December 12, 2011 should resume releasing values for the months needed to determine the Engine Price Adjustment, such values will be used to determine the increase or decrease in the The Engine Price Adjustment determined at the time of delivery of such Aircraftwill not be made if it will [*****] Engine Price.

Appears in 1 contract

Sources: Purchase Agreement (China Southern Airlines Co LTD)

ENGINE ESCALATION. (a) The Aircraft Basic Price of each Aircraft set forth in Table 1 of the Purchase Agreement includes an aggregate price for engines and all accessories, equipment and parts provided by General Electric Aircraft Engines (GE). 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: Pe P(e) = [(Pb P(b) + F) x ( CPI / CPIb CPI(b)_)] - Pb P(b) where CPIb CPI(b) is the engine escalation base year index Engine Escalation Base Year Index as set forth in Table 1 of the Purchase Agreement. (b) The following definitions will apply herein: Pe P(e) = Engine Price Adjustment Pb P(b) = Engine Price (per Aircraft), as set forth in Table 1 of the Purchase Agreement. F = 0.005 x (N/12) x Pb P(b) where N is the number of calendar months which have elapsed from the Engine Price base year Base Year and month Month up to and including the month of delivery, 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 Statistics "Employment Cost Index Wages and Salaries for Aircraft Manufacturing (BLS series ID ciu2023211000000iSIC 3721)”, base 100 = December 2005", calculated as a 3-month arithmetic average of the released values (expressed as a decimal and rounded to the nearest tenth) using the values for the 12th, 13th, 13th and 14th months prior to the month of scheduled Aircraft delivery, delivery then multiplied by sixty-five percent (65%) (% and rounded to the 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 FED-PA-03712-EE1 December 12, 2011 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 month of scheduled Aircraft deliverydelivery of the Aircraft, then multiplied by thirty-five percent (35%) (% and rounded to the nearest thousandth). The Engine Price Adjustment will not be made if it would result in a decrease in the Engine Price. (c) The values of the Employment Cost Index Wages & Salaries (SIC 3721) and Producer Prices and Price Index—Index - Industrial Commodities Index used will be those published as of a date thirty (30) 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 first quarter month of March will be used for the months of January, February January and MarchFebruary; the value released for the second quarter will be June used for the months of April, May April and JuneMay; the value released for the third quarter will be September used for the months of July, August July and SeptemberAugust; and the value released for the fourth quarter will be December used for the months of October, November October and DecemberNovember. 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. If no values have been released for an applicable month, the provisions set forth in paragraph 1(e)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 : 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, 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 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 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 released values), Customer, Boeing and GE will, prior to delivery of such Aircraft, select a substitute for such values from data published by the U.S. Department of Labor, Bureau of Labor Statistics or other similar data reported by non-governmental United States organizations, such substitute to lead in application to the same adjustment result insofar as possible, as would have been achieved by continuing the use of the original values as they may have fluctuated 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) 24 months from delivery of the Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics FED-PA-03712-EE1 December 12, 2011 should resume releasing values for the months needed to determine the Engine Price Adjustment, such values will be used to determine the increase or decrease in the Engine Price Adjustment determined at the time of delivery of such Aircraft.

Appears in 1 contract

Sources: Purchase Agreement (KLM Royal Dutch Airlines)

ENGINE ESCALATION. (a) The Aircraft Basic Price of each Aircraft set forth in Table 1 1b of the Purchase Agreement includes an aggregate price for Rolls-Royce plc Trent 1000 series engines and all accessories, equipment and parts provided by General Electric Aircraft Engines the engine manufacturer (GEEngines). 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: Pe = [(Pb + F) x ( CPI / CPIb )] - Pb where CPIb **** Where: **** Where: ECIb is the base year engine escalation base year index (as set forth in Table 1 1b of the this Purchase Agreement. (b) The following definitions will apply herein: Pe = Engine Price Adjustment Pb = Engine Price (per Aircraft), as set forth in Table 1 of the Purchase Agreement. F = 0.005 x (N/12) x Pb where N ; ECI is the number of calendar months which have elapsed from the Engine Price base year and month up to and including the month of delivery, both as shown in Table 1 of the Purchase Agreement. CPI = L + ICI (rounded to the nearest hundredth) L = A a value determined using the U.S. Department of Labor, Bureau of Labor Statistics “Statistics, Employment Cost Index Wages and Salaries for Aircraft NAICS Manufacturing – Total Compensation (BLS series Series ID ciu2023211000000iCIU2013000000000I)”, base 100 = December 2005, calculated as by establishing a three (3-) month arithmetic average of the released values value (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th, 13th, and 14th 13th months prior to the month of scheduled Aircraft delivery, then multiplied by sixty-five percent (65%) (rounded to the 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 FED-PA-03712-EE1 December 12, 2011 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 month of scheduled Aircraft delivery, then multiplied by thirty-five percent (35%) (rounded to the nearest thousandth). The Engine Price Adjustment will not be made if it would result in a decrease in the Engine Price. (c) The values delivery of the Employment Cost Index Wages & Salaries and Producer Prices and Price Index—Industrial Commodities Index used will be those published as of a date thirty (30) days prior to the first day of the scheduled Aircraft delivery month to Customerapplicable Aircraft. 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 February, and March; the value released for the second quarter will be used for the months of April, May May, and June; the value released for the third quarter will be used for the months of July, August August, and September; the value released for the fourth quarter will be used for the months of October, November 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 **** **** **** **** Where: CPIb is the base year engine escalation index values. If no values have been released for an applicable month, the provisions (as set forth in paragraph 1(eTable 1b of this Purchase Agreement), below, will apply. If prior to delivery of an Aircraft, ; and CPI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics changes the base year for determination Statistics, Consumer Price Index – All Urban Consumers (BLS Series ID CUUR0000SA0), calculated as a three (3) month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th, and 13th months prior to the month of scheduled delivery of the applicable Aircraft. As an example, for an Aircraft scheduled to be delivered in the month of July, the months June, July and August of the preceding year will be utilized in determining the value of ECI and CPI. Note: (i) In determining the values of L or ICI values as defined aboveand M, such rebase all calculations and resulting values will be incorporated in expressed as a decimal rounded to the Engine Price Adjustment calculationnearest ten-thousandth. (div) If at The **** (base year indices) are the time of delivery of an Aircraft, Boeing is unable to determine the Engine Price Adjustment because the applicable actual average values to be used to determine L and ICI have not been released reported by the U.S. Department of Labor, Bureau of Labor Statistics; then. The actual average values are calculated as a three (3) month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, in the event 12th, and 13th months prior to the Engine Price escalation provisions are made non-enforceable or otherwise rendered null base year. The applicable base year and void corresponding denominator is provided 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 decrease in labor compensation and material costs occurring since February of the base price year which is consistent with the application provisions Table 1b of this Supplemental Exhibit EE1Purchase Agreement. (ev) If prior to delivery The final value of an Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics substantially revises the methodology used for the determination of the values to Pa will be used to determine the L and ICI values (in contrast to benchmark adjustments or other corrections of previously released values), Customer, Boeing and GE will, prior to delivery of such Aircraft, select a substitute for such values from data published by the U.S. Department of Labor, Bureau of Labor Statistics or other similar data reported by non-governmental United States organizations, such substitute to lead in application rounded to the same adjustment result insofar as possible, as would have been achieved by continuing the use of the original values as they may have fluctuated during the applicable time period. Appropriate revisions of the formula nearest dollar. (vi) The Engine Price Adjustment will not 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 FED-PA-03712-EE1 December 12, 2011 should resume releasing values for the months needed to determine the Engine Price Adjustment, such values it will be used to determine the increase or result in a decrease in the Engine Price Adjustment determined at the time of delivery of such AircraftPrice.

Appears in 1 contract

Sources: Purchase Agreement (Avolon Holdings LTD)

ENGINE ESCALATION. (a) The Aircraft Basic Price of each Aircraft set forth in Table 1 1a of the Purchase Agreement includes an aggregate price for General Electric Aircraft GEnx series engines and all accessories, equipment and parts provided by General Electric Aircraft Engines the engine manufacturer (GEEngines). 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: Pe = [(Pb + F) x ( CPI / CPIb )] - Pb where CPIb **** **** Where: **** Where: ECIb is the base year engine escalation base year index (as set forth in Table 1 1a of the this Purchase Agreement. (b) The following definitions will apply herein: Pe = Engine Price Adjustment Pb = Engine Price (per Aircraft), as set forth in Table 1 of the Purchase Agreement. F = 0.005 x (N/12) x Pb where N ; ECI is the number of calendar months which have elapsed from the Engine Price base year and month up to and including the month of delivery, both as shown in Table 1 of the Purchase Agreement. CPI = L + ICI (rounded to the nearest hundredth) L = A a value determined using the U.S. Department of Labor, Bureau of Labor Statistics “Statistics, Employment Cost Index Wages and Salaries for Aircraft NAICS Manufacturing - Total Compensation (BLS series Series ID ciu2023211000000iCIU2013000000000I)”, base 100 = December 2005, calculated as by establishing a three (3-) month arithmetic average of the released values value (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th, 13th, and 14th 13th months prior to the month of scheduled Aircraft delivery, then multiplied by sixty-five percent (65%) (rounded to the 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 FED-PA-03712-EE1 December 12, 2011 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 month of scheduled Aircraft delivery, then multiplied by thirty-five percent (35%) (rounded to the nearest thousandth). The Engine Price Adjustment will not be made if it would result in a decrease in the Engine Price. (c) The values delivery of the Employment Cost Index Wages & Salaries and Producer Prices and Price Index—Industrial Commodities Index used will be those published as of a date thirty (30) days prior to the first day of the scheduled Aircraft delivery month to Customerapplicable Aircraft. 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 February, and March; the value released for the second quarter will be used for the months of April, May May, and June; the value released for the third quarter will be used for the months of July, August August, and September; the value released for the fourth quarter will be used for the months of October, November 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 **** **** **** **** Where: CPIb is the base year index values. If no values have been released for an applicable month, the provisions (as set forth in paragraph 1(eTable 1a of this Purchase Agreement), 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 ; and CPI 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 a value determined using the U.S. Department of Labor, Bureau of Labor Statistics; then, in the event the Engine Consumer Price escalation provisions are made non-enforceable or otherwise rendered null and void by any agency Index - All Urban Consumers (BLS Series ID CUUR0000SA0), calculated as a three (3) month arithmetic average of the United States Government, GE agrees to meet jointly with Boeing released monthly values (expressed as a decimal and Customer (rounded to the extent such parties may lawfully do sonearest tenth) to adjust equitably using the Aircraft Basic Price of any affected Aircraft to reflect an allowance values for increase or decrease in labor compensation the 11th, 12th, 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 13th months prior to delivery the month of an Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics 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 released values), Customer, Boeing and GE will, prior to delivery of such Aircraft, select a substitute for such values from data published by the U.S. Department of Labor, Bureau of Labor Statistics or other similar data reported by non-governmental United States organizations, such substitute to lead in application to the same adjustment result insofar as possible, as would have been achieved by continuing the use of the original values as they may have fluctuated 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 scheduled delivery of the applicable Aircraft. As an example, for an Aircraft scheduled to be delivered in the month of July, the U.S. Department months June, July and August of Labor, Bureau of Labor Statistics FED-PA-03712-EE1 December 12, 2011 should resume releasing values for the months needed to determine the Engine Price Adjustment, such values preceding year will be used to determine utilized in determining the increase or decrease in the Engine Price Adjustment determined at the time value of delivery of such AircraftECI and CPI.

Appears in 1 contract

Sources: Purchase Agreement (Avolon Holdings LTD)