Variable Block Hour Rate; Escalation Sample Clauses

Variable Block Hour Rate; Escalation. The Variable Block Hour Rate will be $[*] during the first six (6) months of this Agreement, subject to adjustment based on the Flight Schedule in effect on the Effective Date and the relevant severity tables described in Section 2(b) of this Exhibit and contained in Appendix I-2 of this Exhibit, and will thereafter be subject to a fixed annual escalation related to inflation of [*] ([*]%) on each Anniversary Date of this Agreement. In the event that the escalation of the power-by-the-hour rate paid by ABX under the Delta Engine Agreement, excluding any changes related to flight hour-to-cycle adjustments, exceeds [*] ([*]%) due to causes that are beyond the reasonable control of ABX, then DHL and ABX shall discuss an escalation greater than [*] ([*]%) with respect to the Variable Block Hour Rate. Initials: ABX:__________ DHL:__________