Common use of Managers’ Default Clause in Contracts

Managers’ Default. 465 If the Managers fail to meet their obligations under Clauses 3 466 and 4 of this Agreement for any reason within the control of the 467 Managers, the Owners may give notice to the Managers of the 468 default, requiring them to remedy it as soon as practically 469 possible. In the event that the Managers fail to remedy it within a 470 reasonable time to the satisfaction of the Owners, the Owners 471 shall be entitled to terminate the Agreement with immediate effect 472 by notice in writing. This Agreement may be cancelled by Owners 473 if the Managers fail to meet their obligation under this Agreement for any reason within their control and fails to remedy the default. In addition, Owners have after a period of one year the option of terminating this Agreement upon three months notice if they can secure more competitive pricing and other commercial terms from a recognized third party, such party to be approved by charterers of the vessel, and such approval shall not be unduly withheld, subject to Managers’ right to match the third party’s terms within one month of receipt of such notice of termination. Owners’ notice of termination shall set forth in detail and reasonably documented the more competitive pricing and other commercial terms offered to Owners by such third party. If Managers agree to match all such terms, then Managers shall send written notice of acceptance to Owners and this Agreement shall not terminate and shall be deemed amended to incorporate such revised terms.