Common use of Regulatory Increases Clause in Contracts

Regulatory Increases. If there (a) is a tax, charge, fee or other cost or expense that is newly enacted or newly imposed on, applicable to, charged to or payable by Guardian that is related to any of its operations or performance under the Agreement by a governmental or regulatory body, whether municipal, state, federal or otherwise, or (b) are costs that Guardian incurs to be compliant with laws or regulations that are newly enacted or newly applicable to Guardian’s facilities, operations, or performance under the Agreement, then Guardian may request, in writing, price relief from Customer to defray such costs and expenses (the “Regulatory Increase Request”). Customer shall have 10 days after the date of the Regulatory Increase Request to object in writing. If Customer does not object to the Regulatory Increase Request by such date, then Customer shall be deemed to have accepted the Regulatory Increase Request and the Product Price shall be increased by the amount and as of the date specified in the Regulatory Increase Request. If Customer objects to the Regulatory Increase Request, Guardian and Customer will discuss such objection and if the Parties cannot reach agreement regarding the amount of the increase by the date that is 30 days after the date of request, then Guardian may terminate the Agreement, in whole or in part, with immediate effect.