Common use of Annual Increase Clause in Contracts

Annual Increase. Service Company shall have the right to increase the Services Fee at any time, and any such increases shall be immediately effective; provided, however, that, in any fiscal year, Service Company’s aggregate total increases in the Services Fee for such fiscal year may not exceed five percent of the Services Fee then in effect on the first day of such fiscal year. However, failure by the Service Company to increase the Services Fee by the full five percent in any fiscal year shall not operate as a waiver of Service Company’s right to adjust and correct retroactively the full amount of the five percent increase due in all subsequent fiscal years.