Common use of Managers’ Default Clause in Contracts

Managers’ Default. If the Managers engage in fraud or deceit or fulfill their obligations under this agreement in a crossly negligent manner or engage in willful misconduct that is detrimental to the Owners’ interest, this Agreement may be terminated immediately upon the issuance of a notice by the Owners. If the Managers fail to meet their obligations under Clauses 3 and 4 of this Agreement for any reason within the control of the Managers, the Owners may give notice to the Managers of the default, requiring them to remedy it within 15 days after being notified by Owners. In the event that the Managers fail to remedy it within reasonable time to the satisfaction of the Owners, the Owners shall be entitled to terminate the Agreement with immediate effect by notice in writing.