Common use of Potential Default Clause in Contracts

Potential Default. (a) Each Security Holder must use its reasonable endeavours to give the other Security Holder notice of a Potential Default within a reasonable period after becoming aware of that Potential Default. (b) Within 10 Business Days following receipt of a notice of Potential Default under Clause 2.11(a), the Security Holders must meet to discuss the Potential Default and any steps that either of them may consider reasonably necessary in the circumstances. Neither Security Holder will be obligated to take any action or agree to any arrangement as a consequence of a Potential Default. (c) Each Security Holder acknowledges that it will have no rights against the other Security Holder for failing to provide a notice required under Clause 2.11(a).

Potential Default. (a) Each Security Holder must use its reasonable endeavours to give the other Security Holder notice of a Potential Default within a reasonable period after becoming aware of that Potential Default. The Operator consents to any disclosure under this clause. (b) Within 10 Business Days following receipt of a notice of Potential Default under Clause 2.11(a), the Security Holders must meet to discuss the Potential Default and any steps that either of them may consider reasonably necessary in the circumstances. Neither Security Holder will be obligated to take any action or agree to any arrangement as a consequence of a Potential Default. (c) Each Security Holder acknowledges that it will have no rights against the other Security Holder for failing to provide a notice required under Clause 2.11(a).