Common use of Fee Escalation Clause in Contracts

Fee Escalation. Vendor may increase its Base Charges, so that the new Base Charges will become effective on January 1, 2016, provided that: (i) Vendor gives Prudential 180 days prior written notice of such increase and (ii) that such increase will not exceed the lesser of CPI (as defined in the Agreement) or five percent (5%) above the Base Charges charged Prudential during the preceding calendar year. Upon receipt of Prudential’s written notice for the First Renewal Term, Vendor shall have ninety (90) days to submit new Base Charges for the First Renewal Term; provided such new Base Charges for the First Renewal Term shall not be increased by more than three percent (3%) above the Base Charges paid for the preceding calendar year. For any subsequent Renewal Term of this Engagement Schedule, Vendor may increase its rates, provided that such increase will not exceed the greater of CPI (as defined in the Agreement) or three percent (3%) above the rates charged Prudential during the preceding calendar year.