Maximum Rate Adjustment Clause Samples

Maximum Rate Adjustment. Adjustments to the Service Fees cannot exceed the percentages in the following table, except for changes due to acts of the State in item A1b(1) of this exhibit: Contract Period (on July 1)* Maximum Adjustment** Years 0 to 0.5 (Less than 6 months from Commencement Date to July 1) 0 percent Years 0.5 to 7 (July 1 to the scheduled Termination Date under Section 2) 35 percent Years 8 to 11 / Extension(s), if any (July 1 of any first 2-year extension to June 30 on the extended Termination Date) 5 percent, per year Any time (Changes in direct costs due to Change In Law by the State) Actual Direct Costs Six 1-month extensions, if any No Change * Rate adjustments due to Changes in Laws or Contract Services under subsection A1 above may be implemented at any time during the Term. ** Any change in Service Fees for direct costs due to Changes in Law promulgated by the State in item A1b(1) of this exhibit are not included in the percentage calculations of the Maximum Cumulative Service Fee Adjustment. They are added to the percentage calculations. For example, during the first seven years of the CONTRACT, the Service Fee could increase 35 percent plus an additional amount due to an increase of $4 per Ton on the State-mandated Disposal fee.