Common use of Change of Supplier Clause in Contracts

Change of Supplier. If the applicant wishes to change supplier, the applicant shall notify Banedanmark in writing, stating at which time the existing railway undertaking's mandate expires, and from when the agreement with the new railway undertaking shall apply. The applicant undertakes to inform Banedanmark in writing and no later than 30 days before change of supplier. If the applicant wishes to partially change railway undertaking, the obligation applies as above. In addition, the applicant must state to Banedanmark in writing the exact extent of the change of supplier. The applicant shall ensure that the designated railway undertaking utilizes the paths allocated to the applicant during the timetable period. The first day of every month, Banedanmark can quantify the utilized capacity compared to the volume of allocated capacity. In order to ensure optimal utilization of the capacity, Banedanmark may revoke one or more paths, if less than 75 % of the allocated capacity is used within at least a month. Banedanmark's right to revoke paths does not apply if the lack of capacity utilization is due to circumstances outside the influence of the applicant and/or the appointed railway undertaking. At the request of Banedanmark, the applicant must be able to provide a payment guarantee of DKK 50,000 for permission to apply for capacity. Banedanmark sets the terms of this guarantee, in that Banedanmark determines the possibility of requiring an irrevocable first demand guarantee from a recognised bank or financial institution.