Common use of Corrective Action by Order of Reconstitution Clause in Contracts

Corrective Action by Order of Reconstitution. The University, in its sole discretion, may issue an Order of Reconstitution requiring the Academy to undertake a plan of corrective action in order to avoid revocation of its Contract (“Corrective Action”). The plan of Corrective Action may include cancellation of the Academy’s contract with its ESP, withdrawal of the University’s approval of the ESP Agreement, termination of one or more Academy Directors’ service, appointment of a new member or members to the Academy Board of Directors, or designation of a trustee or receiver to take over the operation of the Academy. In the event a Corrective Action plan is undertaken, the following steps will be observed:

Corrective Action by Order of Reconstitution. The University, in its sole discretiondiscretion and for any reason, may issue an Order of Reconstitution requiring the Academy to undertake a plan of corrective action in order to avoid revocation of its Contract (“Corrective Action”). The plan of Corrective Action may include cancellation of the Academy’s contract with its ESP, withdrawal of the University’s approval of the ESP Agreement, termination of one or more Academy Directors’ service, appointment of a new member or members to the Academy Board of Directors, or designation of a trustee or receiver to take over the operation of the Academy. In the event a Corrective Action plan is undertaken, the following steps will be observed: