Common use of Inflation Adjustment Clause in Contracts

Inflation Adjustment. The dollar amounts of insurance coverage stated in Paragraph (A) above will be subject to inflation adjustment as follows: The "Multiplier" on any given date is defined to be the ratio of (a) the Consumer Price Index for All Urban Consumers, All Items, U.S. City Average (the "Index") most recently issued by the United States Government as of that date to (b) the Index on the effective date of this Agreement. At any time when the Multiplier is at least 1.10 times the value of the Multiplier on the date of the most recent adjustment under this Paragraph (or is at least 1.10 if there has been no previous adjustment under this Paragraph), then Demeter or LSU may give Licensee written notice that each of the dollar amounts defined in Paragraph A is adjusted to the original amount of insurance required under this Agreement as specified above, multiplied by the Multiplier. The adjustment notice under this Paragraph is effective as of the time when Licensee (or a sublicensee) next renews or replaces its then-current liability insurance policy; and the amount of liability insurance coverage required shall be the amount specified in this Article XVI, multiplied by the Multiplier as of the date of issuance, renewal, or replacement of the policy. The required adjusted coverage shall then remain constant until another notice of adjustment under this Paragraph is given.

Inflation Adjustment. The dollar amounts of insurance coverage stated in Paragraph (A) above will be subject to inflation adjustment as follows: The "Multiplier" on any given date is defined to be the ratio of (a) the Consumer Price Index for All Urban Consumers, All Items, U.S. City Average (the "Index") most recently issued by the United States Government as of that date to (b) the Index on the effective date of this Agreement. At any time when the Multiplier is at least 1.10 times the value of the Multiplier on the date of the most recent adjustment under this Paragraph (or is at least 1.10 if there has been no previous adjustment under this Paragraph), then Mycogen, Demeter or LSU may give Licensee written notice that each of the dollar amounts defined in Paragraph A is adjusted to the original amount of insurance required under this Agreement as specified above, multiplied by the Multiplier. The adjustment notice under this Paragraph is effective as of the time when Licensee (or a sublicensee) next renews or replaces its then-current liability insurance policy; and the amount of liability insurance coverage required shall be the amount specified in this Article XVIX, multiplied by the Multiplier as of the date of issuance, renewal, or replacement of the policy. The required adjusted coverage shall then remain constant until another notice of adjustment under this Paragraph is given.