A well-scripted transition should describe the conditions under which the exit plan is to be implemented, along with each party's duties, roles and responsibilities. All costs that are to be shouldered by either party should be clearly identified and quantified in as much detail as possible. Ownership of everything should be clearly delineated. Some of the ownership issues are obvious, but some, like data, system modifications and improvements, subcontractor relationships and magnetic storage media, often get overlooked. In deals that require a substantial vendor investment at the outset, such as leasing and outsourcing transactions, it's fair and reasonable for the vendor to expect some compensation with early termination.
Many vendors try to require customers to make remaining payments when they want out of deals early.
But you don't have to do that. Negotiate a descending termination charge clause that states that the amount you must pay to get out of the deal declines with each passing month. You may never need to exercise this option, but if you do, it could save you millions of dollars. The exit plan should also identify how any changes can be made since business conditions may change over time. Periodic reviews of the exit plan should be part of the relationship manager's responsibilities - for the customer and the vendor.