(a) Government may give a default notice to the private party specifying that an Event of Default has occurred.
(b) Where the Event of Default is capable of cure, the private party must, within a specified period, provide a draft cure plan proposing a program of rectification (including the proposed cure period) in form and substance acceptable to government (acting reasonably). If the draft cure plan proposed is not acceptable to government then the private party must (subject to its right to refer the matter to dispute resolution) amend the draft cure plan in accordance with government's reasonable requirements (this will be deemed to be the 'approved cure plan').
(c) The private party must cure the Event of Default within the agreed cure period and otherwise in accordance with the approved cure plan.110 Government will agree to extend the cure period, but only once and on certain conditions being met by the private party.111
(d) The cure period applicable to a Service Failure which is an Event of Default will be in addition to the original response and rectification times for that Service Failure.
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110 Although the financiers will have separate step-in rights under the funder's direct agreement, they will not have separate cure periods before an Event of Default can be called. Appropriate cure periods will be agreed as part of the cure plan. In addition, the cure periods may be extended in accordance with paragraph 27.3.
111 Government may, acting reasonably, extend the cure period provided the private party:
(a) has provided government with sufficient reasons for the extension (and has provided any further information reasonably requested by government);
(b) can satisfy government (acting reasonably) that it will cure the default within the extended period; and
(c) can satisfy government that it has complied and is continuing to comply with the approved cure plan (as may be amended with government's agreement) and is diligently pursuing cure of the Event of Default.