55.2  Termination on an Authority Break Point Date 54

Without prejudice to its rights under clause 55.1, the Authority may terminate this Agreement on any of the Authority Break Point Dates by giving notice to the Service Provider stating:

(a)  that the Authority is terminating this Agreement under this clause 55.2;

(b)  that this Agreement will terminate on the specified Authority Break Point Date, which must be a minimum of [twenty (20)] Business Days after the date of receipt of the notice; and

(c)  whether the Authority has chosen to exercise its option under clause 55.3,

and provided the notice has been provided in accordance with this clause 55.2, this Agreement shall terminate on the specified Authority Break Point Date.




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54  Whether the right to terminate on an Authority Break Point Date (provided for under SOPC4) should be included must be considered and determined on a project specific basis as it is not mandatory.  If such a right is included, the Service Provider should be required to submit proposals to the Authority as part of the ISDS regarding its preferred method of dealing with the financial consequences arising from the possibility of early termination under these provisions.  See also SOPC4 paragraph 21.5.4 which discusses the issue.