2016-10-17 GC Agenda - Item 8 - Attachment 2 (Amended) - Statement of Financial Position

       (c)   Upon giving a notice under clause 26.2, the Lessee may suspend payments to the
             Lessor until the earlier of:

             (i)     the date upon which the Lessor shows reasonable cause; or

             (ii)    the date upon which the Lessee takes action under clause 26.3.

26.3   Response to Lessee's notice to show cause

       (a)   If the Lessee gives a notice under clause 26.2, the Lessor may, within the time
             period specified in the notice, give notice in writing to the Lessee showing cause
             why the Lessee should not exercise a right under clause 26.4.

       (b)   The Lessor's response to the Lessee's notice to show cause must:

             (i)    if the breach is capable of being remedied within the time limit for giving
                    the notice, include evidence that the breach has been remedied;

             (ii)   if the breach is not capable of being remedied within the time limit for
                    giving the notice:

                          (A)      set out how the Lessor intends to remedy the breach of the
                                   Lease and the time period in which it intends to do so;

                          (B)      include evidence that the Lessor has diligently pursued
                                   remediation of the breach, and is continuing and will continue to
                                   do so.

       (c)   The Lessee (acting reasonably) is under no obligation to accept the Lessor's
             proposal for the remediation of the breach, notwithstanding any notice given by
             the Lessor under this clause.

26.4   Rights of Lessee

       (a)   If by the time specified in a notice given under clause 26.2, the Lessor fails to
             show reasonable cause why the Lessee should not exercise a right referred to in
             this clause 26.4 in accordance with the requirements in clause 26.3, the Lessee
             may by notice in writing to the Lessor:

             (i)    terminate the Lease; or

             (ii)   terminate the Lease in respect of one or more Buses.

       (b)   If the Lessee terminates the Lease or part of the Lease under clause 26.4(a):

             (i)    the Lessee shall:

                    (A)         make the Buses which are the subject of the termination available
                                for collection by the Lessor at the Delivery Point or such other
                                location as nominated the Lessee;

                    (B)         give written notice to the Lessor of the location at which the Buses
                                will be made available for collection;

             (ii)   the Buses which are the subject of the termination shall be at the risk of
                    the Lessor from when the Lessee makes the Buses available for collection
                    under clause 26.4(b).


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