Common use of Default by User Clause in Contracts

Default by User. 15.1 Recognizing the importance to the City of maintaining a first-class image and operation of the Municipal Dock, User shall maintain at all times a professional relationship with the City, with other Users and with other persons visiting and using the Municipal Dock. Upon 15.2 In addition to any other default as so defined by the Use Agreement or by law, the following events shall be deemed to be events of default by the User under this Use Agreement: (a) User’s failure to pay any installment of the use fee when such failure continues for a period of ten (10) days after the due date, or the User’s failure to pay any other expense as herein provided when such failure continues for a period of ten (10) days after written demand by the City; (b) User’s failure to comply with any term, provision or covenant of this Use Agreement, other than the payment of the use fee or expenses; (c) harassment, intimidation, retribution, or verbal, physical or emotional abuse directed by any person to any other person; (d) desertion or vacation of the Slip. Actual removal of User's Vessel for more than thirty (30) consecutive days, together with the failure to pay the use fee as required herein, will constitute desertion or vacation. Vessels removed from the facility for emergency or major vessel repairs will not be considered desertion as described herein, provided the City is notified of such repairs; or (e) User's failure to maintain a sufficient level of activity from charter business equal to at least fifty two (52) charter trips or eighteen thousand seven hundred and twenty and no/100 dollars ($18,720) annually in gross income (as determined in 2008 constant dollars) from the charter business (the “Charter Business Activity”). It shall be the express obligation of User (and not of the City) to maintain adequate records to evidence such Charter Business Activity (as determined by the City in its reasonable discretion) and User shall provide evidence of the same to the City: (i) annually on October 1 of each year of this Use Agreement; and (ii) upon ten (10) days request by the City to User. 15.3 In the event of any default by User under the Use Agreement, the City may, at its option and without limiting any other right or remedy: (a) Recover possession of the slip on behalf of User and enter into a use agreement for the Slip to another party. User shall remain liable for and shall pay to the City all the use fee accrued to date of default, plus any accrued interest, costs and damages. Further, User shall be liable for any use fee and other monies due and owing under this Use Agreement accruing after the event of default (including the difference between the use fee and other charges stipulated to be paid hereunder and what the City is able to recover from reletting the Slip). In the event the City enters into a new use agreement for the Slip with another party, User shall not be relieved of its obligations under this Use Agreement, including, without limitation, the payment of the use fee hereunder; (b) Terminate the Use Agreement and re-enter and take possession of the Slip for the exclusive use of the City and bring an action for accrued use fee and costs; or (c) Pursue any other remedy provided under law or equity including, without limitation, those set forth in Section 15.6 below.

Appears in 2 contracts

Samples: Commercial Use Agreement, Commercial Use Agreement

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Default by User. 15.1 Recognizing the importance to the City of maintaining a first-class image and operation of the Municipal Dock, User shall maintain at all times a professional relationship with the City, with other Users and with other persons visiting and using the Municipal Dock. UponUpon conviction of User for any felonious activity, User shall be in default, and must vacate the Slip immediately. 15.2 In addition to any other default as so defined by the Use Agreement or by law, the following events shall be deemed to be events of default by the User under this Use Agreement: (a) User’s failure to pay any installment of the use fee when such failure continues for a period of ten (10) days after the due date, or the User’s failure to pay any other expense as herein provided when such failure continues for a period of ten (10) days after written demand by the City; (b) User’s failure to comply with any term, provision or covenant of this Use Agreement, other than the payment of the use fee or expenses; (c) harassment, intimidation, retribution, or verbal, physical or emotional abuse directed by any person to any other person; (d) desertion or vacation of the Slip. Actual removal of User's Vessel for more than thirty (30) consecutive days, together with the failure to pay the use fee as required herein, will constitute desertion or vacation. Vessels removed from the facility for emergency or major vessel repairs will not be considered desertion as described herein, provided the City is notified of such repairs; or (e) User's failure to maintain a sufficient level of activity from charter business equal to at least fifty two (52) charter trips or eighteen thousand seven hundred and twenty and no/100 dollars ($18,720) annually in gross income (as determined in 2008 constant dollars) from the charter business (the “Charter Business Activity”). It shall be the express obligation of User (and not of the City) to maintain adequate records to evidence such Charter Business Activity (as determined by the City in its reasonable discretion) and User shall provide evidence of the same to the City: (i) annually on October 1 of each year of this Use Agreement; and (ii) upon ten (10) days request by the City to User. 15.3 In the event of any default by User under the Use Agreement, the City may, at its option and without limiting any other right or remedy: (a) Recover possession of the slip on behalf of User and enter into a use agreement for the Slip to another party. User shall remain liable for and shall pay to the City all the use fee accrued to date of default, plus any accrued interest, costs and damages. Further, User shall be liable for any use fee and other monies due and owing under this Use Agreement accruing after the event of default (including the difference between the use fee and other charges stipulated to be paid hereunder and what the City is able to recover from reletting the Slip). In the event the City enters into a new use agreement for the Slip with another party, User shall not be relieved of its obligations under this Use Agreement, including, without limitation, the payment of the use fee hereunder; (b) Terminate the Use Agreement and re-enter and take possession of the Slip for the exclusive use of the City and bring an action for accrued use fee and costs; or (c) Pursue any other remedy provided under law or equity including, without limitation, those set forth in Section 15.6 below.

Appears in 2 contracts

Samples: Commercial Use Agreement, Commercial Use Agreement

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