The Termination of License agreement is a critical legal instrument used when parties wish to formally end their existing licensing relationship. This document is particularly relevant in the Canadian legal context, where it must comply with both federal and provincial regulations, including specific considerations for Quebec's civil law system. It is typically used when a license needs to be terminated due to various circumstances such as expiration, breach, mutual agreement, or strategic business decisions. The agreement addresses key aspects including the termination date, wind-down procedures, intellectual property rights, confidentiality obligations, and any financial settlements. It's essential for protecting both parties' interests and ensuring a clear, legally compliant path forward after the license ends. The document should be customized based on the specific type of license being terminated (e.g., software, patent, trademark) and the particular requirements of the relevant Canadian jurisdiction.
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1. Parties: Identification of the Licensor and Licensee with full legal names and addresses
2. Background: Reference to the original license agreement, its date, and general context for the termination
3. Definitions: Key terms used in the agreement, including reference to defined terms from the original license
4. Termination: Clear statement of termination and effective date
5. Effect of Termination: Immediate consequences of the termination and cessation of rights
6. Post-Termination Obligations: Specific duties of each party following termination
7. Return of Materials: Requirements for returning or destroying licensed materials, documentation, and other assets
8. Confidentiality: Ongoing obligations regarding confidential information
9. Surviving Provisions: Clauses from the original agreement that remain in effect
10. Release and Waiver: Mutual release of claims related to the license agreement
11. Governing Law: Confirmation of applicable law and jurisdiction
12. Execution: Signature blocks and execution details
1. Financial Settlement: Used when there are outstanding payments, royalties, or financial adjustments to be addressed
2. Transition Period: Include when a phase-out period is needed for business continuity
3. Sub-licenses: Required when there are existing sub-licenses that need to be addressed
4. Technology Transfer: Include when specific technical knowledge or documentation needs to be transferred back
5. Non-Compete: Used when post-termination competition restrictions are necessary
6. Public Announcements: Include when the termination requires coordinated public communication
7. Customer Transition: Required when there are end-users or customers who need to be notified or transitioned
1. Schedule A - Original License Agreement: Copy or reference to the original license agreement being terminated
2. Schedule B - Licensed Materials Inventory: List of all materials, software, documentation to be returned or destroyed
3. Schedule C - Financial Statement: Statement of any outstanding financial obligations or final payments
4. Schedule D - Transition Plan: Detailed timeline and steps for implementing the termination
5. Schedule E - Sub-licensee List: List of all sub-licensees and their status
6. Appendix 1 - Return Confirmation Form: Template for confirming return or destruction of licensed materials
7. Appendix 2 - Release Certificate: Form for mutual release of obligations and claims
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