Common use of Shareholder Default Clause in Contracts

Shareholder Default. If a Shareholder defaults in performance of their agreements and obligations then any other Shareholder or Shareholders may serve a notice (“Default Notice”) on the Defaulting Shareholder. A copy of the Default Notice must at such time also be served on all other Parties. If the default is capable of remedy (which shall be determined by the server of the notice) then the Default Notice will specify the time within which (not being less than 5 days) the default must be remedied. If the default is not remedied within the specified timeframe or if the default is incapable of remedy, or if an Event of Default occurs then, but subject however to the conditions in subclause 5.5, each non-defaulting Shareholder (“Remaining Shareholder/s”) has an option to acquire the Defaulting Shareholder’s shares (“Option Shares”).