Common use of Third Contract Year Clause in Contracts

Third Contract Year. The additional payment owed for the third Contract Year shall total $8 million except as provided in Section 12.1, subject to adjustment as provided in the following sentence. On the Adjustment Date, January 3, 2000, the additional payment for the third Contract Year shall be adjusted by (i) adding to the Base Rate 70% of the positive amount, if any, determined by subtracting the Base Rate from the Consumer Price Index in effect on the Adjustment Date, (ii) dividing said sum by the Base Rate, and (iii) multiplying the results by $8 million except as provided in Section 12. 1. In the event that the net change in the Consumer Price Index is negative, the additional payment for the third Contract Year shall total $8 million, except as provided in Section 12.1. NESI shall pay such additional payment in twelve equal monthly installments due on or before July 3, 2000, August 1, 2000, September 1, 2000, October 2, 2000, November 1, 2000, December 1, 2000, January 2, 2001, February 1, 2001, March 1, 2001, April 2, 2001, May 1, 2001, and June 1, 2001, respectively, except as provided in Section 12.1. Failure to make Payment in Full and on Time under this Section constitutes a breach of this Agreement.