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SERVICE
ACCOUNTABILITY AGREEMENT
Article 12 - Termination of Agreement |
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12.1 |
Termination by the LHIN.
- Without Cause. The LHIN may terminate the
Agreement at any time, for any reason, upon giving at
least sixty Days Notice to the HSP.
- Where No Appropriation. If, as provided
for in section 4.3, the LHIN does not receive the
necessary funding from the MOHLTC, the LHIN may
terminate the
Agreement immediately by giving Notice to the HSP.
- For Cause. The LHIN may terminate the
Agreement immediately upon giving Notice to the HSP if:
- in the opinion of the LHIN:
- the HSP has knowingly provided false or
misleading information regarding its funding
request or in any other communication with the
LHIN;
- the HSP breaches any material provision of
the Agreement;
- the HSP is unable to complete or has
discontinued the Services; or
- it is not reasonable for the HSP to continue
to provide the Services;
- the nature of the HSP’s business, or its
corporate status, changes so that it no longer meets
the applicable eligibility requirements of the
program under which the LHIN provides the Funding;
- the HSP makes an assignment, proposal,
compromise, or arrangement for the benefit of
creditors, or is petitioned into bankruptcy, or
files for the appointment of a receiver; or
- the HSP ceases to carry on business.
- Material Breach A breach of material
provision of this Agreement includes but is not limited
to
- misuse of Funding
- a failure or inability to provide the Services as
set out in the Service Plan;
- a failure to provide the Compliance Declaration;
- a failure to implement or follow, a Performance
Agreement, Performance Improvement Process or a
Transition Plan;
- a failure to respond to LHIN requests in a timely
manner, and
- a failure to A advise the LHIN of actual,
potential or perceived Conflict of Interest; B a
failure to comply with any requirements prescribed by
the LHIN to resolve a Conflict of Interest; or C
a Conflict of Interest cannot be resolved.
- Transition Plan.
In the event of
termination by the LHIN pursuant to this subsection, the
LHIN and the HSP will develop a transition plan,
acceptable to the LHIN that indicates how the needs of
the HSP’s clients will be met following the termination
and how the transition of the clients to new service
providers will be effected in a timely manner
(Transition Plan). The HSP agrees that it will
take all actions an provide all information, required by
the LHIN to facilitate the transition of the HSP's
clients.
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12.2 |
Termination by the HSP.
- The HSP may terminate the Agreement at any time, for
any reason, upon giving 6 months notice to the LHIN
provided that the notice is accompanied by:
- satisfactory evidence that the HSP has taken
all necessary actions to
authorize the termination of the Agreement,
including if the HSP is:
- an Indian Band, as defined under the Indian
Act, passing a Band Council Resolution;
- a Municipality passing a municipal by-law or
resolution; or
- a corporation passing a board resolution;
authorizing the HSP to terminate the Agreement
with the LHIN; and
- a Transition Plan, acceptable to the LHIN that
indicates how the needs of the HSP’s clients will be
met following the termination and how the transition
of the clients to new service providers will be
effected within the six month Notice period.
- In the event that the HSP fails to provide an
acceptable transition plan, the LHIN may reduce Funding
payable to the HSP prior to termination of the Agreement
to compensate the LHIN for transition costs.
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12.3 |
Opportunity to Remedy.
- Opportunity to Remedy. If the LHIN considers
that it is appropriate to allow the HSP an opportunity
to remedy a breach of the Agreement, the LHIN may give
the HSP an opportunity to remedy the breach by giving
the HSP Notice of the particulars of the breach and of
the period of time within which the HSP is required to
remedy the breach. The Notice will also advise the HSP
that the LHIN will
terminate the Agreement
- at the end of the Notice period provided for in
the Notice if the HSP fails to remedy the breach
within the time specified in the Notice; or
- prior to the end of the Notice period provided
for in the Notice if it becomes apparent to the LHIN
that the HSP cannot completely remedy the breach
within that time or such further period of time as
the LHIN considers reasonable, or the HSP is not
proceeding to remedy the breach in a way that is
satisfactory to the LHIN.
- Failure to Remedy. If the LHIN has provided
the HSP with an opportunity
to remedy the breach, and:
- the HSP does not remedy the breach within the
time period specified in the Notice;
- it becomes apparent to the LHIN that the HSP
cannot completely remedy the breach within the time
specified in the Notice or such further period of
time as the LHIN considers reasonable; or
- the HSP is not proceeding to remedy the breach
in a way that is satisfactory to the LHIN,
then the LHIN may immediately terminate the
Agreement by giving
Notice of termination to the HSP.
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12.4 |
Consequences of Termination.
- If the Agreement is terminated pursuant to this
Article, the LHIN may:
- cancel all further Funding installments;
- demand the repayment of any Funding remaining in
the possession or under the control of the HSP;
- determine the HSP’s reasonable costs to wind
down the Services; and
- permit the HSP to offset the costs determined
pursuant to subsection (iii),
against the amount owing pursuant to subsection
(ii).
- Despite (a), if the cost determined pursuant to
section 12.4(a) (iii) exceeds the Funding remaining in
the possession or under the control of the HSP the LHIN
will not provide additional monies to the HSP to wind
down the Services.
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12.5 |
Effective Date. The effective date of any
termination under this Article will be the last Day of the
notice period, the last Day of any subsequent notice period
or immediately, which ever applies. |
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12.6 |
Corrective Action. Despite its right to
terminate the Agreement pursuant to this Article, the LHIN
may choose not to terminate the Agreement and may take what
ever corrective action it considers necessary and
appropriate, including suspending Funding for such period as
the LHIN determines, to ensure the successful completion of
the Services in accordance with the terms of the Agreement. |
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