Common use of Early Exit Clause in Contracts

Early Exit. 25.1 During the life of this Agreement, the Recipient retains the right at its sole discretion, to request a full release from this Grant Agreement, subject to the following: (a) The Recipient shall inform the Department in writing of its desire to be relieved of its obligations under this Grant Agreement. (b) The Recipient shall pay back to the Department the entirety of the amount paid by the Department to the Recipient by virtue of the Grant Agreement (herein call the “Exit Payment”). The Exit Payment shall constitute compensation for foregone Benefits to Canada, that is, those economic and social benefits that will not be realized due to the early termination of this Grant Agreement; and (c) At the sole discretion of the Department, and under exceptional circumstances when these are deemed by the Department to be in the best interests of Canada, the Department may consider accepting a reduced refund of the Grant known as an “Exit Payment” but this acceptance would be subject to the negotiation and signature of a “Termination and Settlement Agreement” setting out the Exit Payment and its method of payment. 25.2 The Recipient shall not be released from any of its obligations under the Grant Agreement until it complies with the requirements and conditions issued according to section 24.1.