PES Contract Clauses > Termination for Convenience Example 1
TERMINATION FOR CONVENIENCE
The parties may terminate this agreement by mutual agreement. Such termination must be in writing and signed by both parties. The Participant may unilaterally terminate this agreement upon [enter number] days written notice by paying the lesser of [enter minimum monetary termination penalty, and what currency is used] or [enter percentage of past payments to be forfeited] of all payments received as of the date of termination. The Ministry may unilaterally terminate this agreement upon [enter number] days written notice by paying [enter percentage penalty] of the net present value of future payments under the agreement, measured as of the date of termination according to the formula specified in the Program Guidelines. Payments to be made or received upon termination are to be calculated as provided in the Program Guidelines.
Context of this Clause
Participation agreement for a national REDD+ program
Ecosystem service: forest carbon emissions reduction credits or conservation/restoration services expected to yield forest carbon emissions reduction or removal
Single seller signing a government-provided form contract (which is backed up by detailed program guidelines) with a representative of the government ministry that administers the REDD+ program
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