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

26.5   Default of Lessee

       (a)   If the Lessee commits a substantial breach of the Lease, the Lessor may give the
             Lessee a written notice to show cause.

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

             (i)     state that it is a notice under clause 26.5 of the Lease;

             (ii)    specify the alleged substantial breach;

             (iii)   require the Lessee to show cause in writing why the Lessor should not
                     terminate the Lease; and

             (iv)    specify the time and date by which the Lessee must show cause (which
                     shall not be less than 10 Business Days after the notice is given to the
                     Lessee).

       (c)   If by the time specified in a notice to show cause, the Lessee fails to provide
             evidence that the breach has been remedied or otherwise show reasonable cause
             why the Lessor should not terminate the Lease, the Lessor may by notice in
             writing to the Lessee:

             (i)     terminate the Lease; or

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

       (d)   If the Lessor terminates the Lease or part of the Lease under clause 26.5(c):

             (i)     the Lessee shall make the Buses which are the subject of the termination
                     available for collection by the Lessor at the Delivery Point at the time
                     nominated by the Lessor; and

             (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 26.5(d)(i).

26.6   Insolvency

       (a)   If an Insolvency Event occurs in respect of a party then, where the other party is:

             (i)     the Lessor, the Lessee may, without giving a notice to show cause,
                     exercise the right under clause 26.4; or

             (ii)    the Lessee, the Lessor may, without giving a notice to show cause,
                     terminate the Lease under clause 26.5.

       (b)   The rights given by this clause 26.6 are in addition to any other rights and may be
             exercised notwithstanding that there has been no breach of the Lease.

27.    Dispute Resolution

       (a)   If a dispute arises between the parties in connection with the Lease then either
             party may give the other party a written notice adequately identifying and
             providing details of the dispute.

       (b)   Subject to clause 26, notwithstanding the existence of a dispute, the parties shall
             continue to perform the Lease.

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