Common use of Effect of a Default Notice Clause in Contracts

Effect of a Default Notice. A Defaulting Shareholder to whom a Default Notice is given will be taken to have appointed the Company as their agent to: (a) sell all the Shares held by the Defaulting Shareholder to any Eligible Person in such order of priority and in such number of Shares as are determined by the board in its discretion and at the price equal to the Valuation current at the time of the sale of the Shares, or at any lower price that the Defaulting Shareholder notifies the Company they are willing to sell the Shares (the Default Sale Price) (b) execute a transfer of Shares on behalf of the Shareholder, and (c) receive and give good discharge for the purchase price and to deduct and pay the amounts referred to in Clause 8.5.

Effect of a Default Notice. ‌ A Defaulting Shareholder to whom a Default Notice is given will be taken to have appointed the Company as their agent to: (a) sell all the Shares held by the Defaulting Shareholder to any Eligible Person in such order of priority and in such number of Shares as are determined by the board in its discretion and at the price equal to the Valuation current at the time of the sale of the Shares, or at any lower price that the Defaulting Shareholder notifies the Company they are willing to sell the Shares (the Default Sale Price) (b) execute a transfer of Shares on behalf of the Shareholder, and (c) receive and give good discharge for the purchase price and to deduct and pay the amounts referred to in Clause 8.5.