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6.1 If a Qualifying Change in Law occurs or is about to occur, then either party may notify the other to express an opinion on its likely effects, providing details of the party’s opinion of:
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Any necessary change in the Services;
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Whether any changes are required to the terms of the Agreement to deal with the Qualifying Change in Law;
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Whether relief from compliance with any contract obligation is required during the implementation of any relevant Qualifying Change in Law;
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Any loss of income that may result from the relevant Qualifying Change in Law;
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Any estimated change in the costs of the Agreement that directly results from the Qualifying Change in Law; and
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Any expenditure that is required or may no longer be required as a result of a Qualifying Change in Law taking effect during the Term of the Agreement,
In each case providing full details of any proposed procedure for implementing the resulting change in the Services, confirming to the other party its opinion as to which party should have responsibility for the costs of implementation. Any resulting variation to the Service Fee shall be dealt with in accordance with Section 6.2 below.
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6.2 As soon as practicable after receipt of any notification from either party under Section 6.1, the parties shall discuss and use reasonable commercial efforts to come to agreement on the issues referred to in Section 6.1, and shall review how the Supplier can mitigate the effect of the Qualifying Change in Law, including:
- Providing evidence that the Supplier has used best efforts, including (where practicable) using competitive quotes to oblige any sub-contactors to minimize any increase in costs and maximize any reduction in costs;
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Demonstrating how any expenditure to be incurred or avoided is being measured in a cost effective manner, including showing that when such expenditure is incurred or would have been incurred, any foreseeable Changes in Law at that time have been taken into account by the Supplier;
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Providing evidence in respect of how the Qualifying Change in Law has affected prices charged by any similar businesses, including similar businesses in which the Supplier’s shareholders or the Supplier’s affiliates carry on business; and
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Demonstrating that any expenditure that has been avoided, which was anticipated to be incurred to replace or maintain assets that have been affected by the Qualifying Change in Law concerned,