Common use of CPI Increases Clause in Contracts

CPI Increases. SM may modify the Base Rate of the Manufacturing Fee to reflect the cost increases or decreases (if any) directly attributable to the components of the Base Rate of the Manufacturing Fee that SM will incur in the performance of its obligations provided herein (“Base Rate Increases”). Any increase by SM to the Base Rate to accommodate for the Base Rate Increases (“CPI Increases”) shall not exceed the five (5) year rolling National Consumer Price Index (“CPI”) as set forth on Schedule 6.2(a). The CPI Increase shall be calculated using the Compound Annual Growth Rate (“CAGR”) for each of the last five (5) years annual CPI (“Annual CPI”), which shall be calculated by: (i) dividing the Annual CPI of the previous calendar year by the Annual CPI from five (5) years ago; (ii) the quotient from (i) above shall be raised to the 1/5 power (“Five Year Annual Growth Rate”); and (iii) the number one (1) shall be subtracted from the Five Year Annual Growth Rate. Description Amount Annual CPI 2002 179.900 Annual CPI 2007 207.342 Divide (CPI 2007 / CPI 2002) 1.153 Raise to the 1/5th Power 1.0288 Subtract One for Average % Increase 2.880% As a one time occurrence, the CPI Increase assessed on February 1,2009, shall be computed by (i) determining the Annual CPI for the 12 months ended December 2008 (this should be nationally published around January 15, 2009); and (ii) dividing the Annual CPI of 2008 by two (2).

CPI Increases. SM may modify the Base Rate of the Manufacturing Fee to reflect the cost increases or decreases (if any) directly attributable to the components of the Base Rate of the Manufacturing Fee that SM will incur in the performance of its obligations provided herein (“Base Rate Increases”). Any increase by SM to the Base Rate to accommodate for the Base Rate Increases (“CPI Increases”) shall not exceed the five (5) year rolling National Consumer Price Index (“CPI”) as set forth on Schedule 6.2(a). The CPI Increase shall be calculated using the Compound Annual Growth Rate (“CAGR”) for each of the last five (5) years annual CPI (“Annual CPI”), which shall be calculated by: (i) dividing the Annual CPI of the previous calendar year by the Annual CPI from five (5) years ago; (ii) the quotient from (i) above shall be raised to the 1/5 power (“Five Year Annual Growth Rate”); and (iii) the number one (1) shall be subtracted from the Five Year Annual Growth Rate. Description Amount Annual CPI 2002 179.900 Annual CPI 2007 207.342 Divide (CPI 2007 / CPI 2002) 1.153 Raise to the 1/5th Power 1.0288 Subtract One for Average % Increase 2.880% As a one time occurrence, the CPI Increase assessed on February 1,2009, shall be computed by (i) determining the Annual CPI for the 12 months ended December 2008 (this should be nationally published around January 15, 2009); and (ii) dividing the Annual CPI of 2008 by two (2).