1  Income Benchmarking

1.1  Either Party may require the carrying out of an Income Benchmarking Process commencing on each Income Benchmarking Date.

1.2  The Parties agree that an Income Benchmarking Process shall not be undertaken if:

1.2.1  the Contractor has suffered Deductions greater than [♦]5% of the Unitary Payment (as indexed) payable for the relevant Income Benchmarking Period in which case the Authority may elect to Market Test the Market Tested Services; or

1.2.2  the Leisure Operator Income in the relevant Income Benchmarking Period is ♦ greater or ♦ less than the sum that the Leisure Operator was projected to receive in the Leisure Operator's Base Trading Account for the same period (as indexed) in which case the Leisure Service shall not be subject to a Market Test unless the Parties agree.

1.3  If either Party wishes to commence an Income Benchmarking Process, it shall serve a written notice to this effect on the other Party no later than the Income Benchmarking Date.

1.4  Where the Contractor believes that the Unitary Charge should increase as the Leisure Operator Income in the relevant Income Benchmarking Period is lower than the sum that the Leisure Operator was projected to receive in the LOBTA for the same period (as indexed) the provisions of paragraphs 2, 3 and 4 of this Part 2 shall apply.  

1.5  Where either Party reasonably believes that the Unitary Charge should decrease as the Leisure Operator Income in the relevant Income Benchmarking Period is greater than the sum that the Leisure Operator was projected to receive in the Leisure Operator's Base Trading Account for the same period (as indexed) then the provisions of paragraph 5 of this Part 2 shall apply.  

___________________________________________________________________________________
5 Bid-back figure.  It should not be less than 10%.