Michelle,
The _mfi_exit pad is a foxpro system pad with automatic skip for implementation. It is disabled whenever selecting it would give t=you the "cannot quit fox" error message. That is when;
* A read evetns is in effect
* A modal form is open
* Anything else is going on that prevents fox from quiting.
Your ON SHUTDOWN occurs after an attempt to quit occurs. The skip for on _mfi_exit occurs BEFORE you try to quit. Replace the bar number _mfi_exit with a Command and use the QUIT command. That will eliminate the automatic skip for and it will fire your ON SHUTDOWN when the Exit option is selected.