Common use of Modifications and Rectifications to Coverage Clause in Contracts

Modifications and Rectifications to Coverage. 1. A Party shall notify the Parties of any proposed rectification, transfer of an entity from one Appendix to another, in Annex 8A, withdrawal of an entity, or other modification (hereinafter referred to generally in this Article as "modification") of Annex 8A. The Party proposing the modification ("modifying Party") shall state in the notification: (a) the evidence on whether government control or influence over the covered procurements of the entity to be withdrawn has been effectively eliminated; and (b) for any other proposed modification, information as to the likely consequences of the change for the mutually agreed coverage provided in this Agreement. 2. A Party may withdraw or replace a covered entity by making the appropriate compensatory adjustment to its coverage to maintain a level of coverage comparable to that existing prior to the modification. No compensatory adjustment shall be provided to an affected Party in respect of the following modifications made by a Party to its coverage under this Chapter: (a) rectifications of a purely formal nature and minor amendments to the Appendices; and (b) where Government control or influence over the entity’s covered procurements has been effectively eliminated upon its corporatisation or privatisation.

Modifications and Rectifications to Coverage. 1. A Party shall notify the Parties of any proposed rectification, transfer of an entity from one Appendix to another, in Annex 8A, withdrawal of an entity, or other modification (hereinafter referred to generally in this Article as "modification") of Annex 8A. The Party proposing the modification ("modifying Party") shall state in the notification: (a) the evidence on whether government control or influence over the covered procurements of the entity to be withdrawn has been effectively eliminated; and (b) for any other proposed modification, information as to the likely consequences of the change for the mutually agreed coverage provided in this Agreement. 2. A Party may withdraw or replace a covered entity by making the appropriate compensatory adjustment to its coverage to maintain a level of coverage comparable to that existing prior to the modification. No compensatory adjustment shall be provided to an affected Party in respect of the following modifications made by a Party to its coverage under this Chapter: (a) rectifications of a purely formal nature and minor amendments to the Appendices; and (b) where Government control or influence over the entity’s 's covered procurements has been effectively eliminated upon its corporatisation or privatisation.