I think he'll finish the contract out because...
1. Dan likes his money, evidenced by his departure to StrikeForce for a bigger payday and his new contract has 4 more fights on it
2. The UFC can't press the issue and cut him because they can't risk Bellator picking him up. That LHW division is already their best ratings pull and Hendo makes it more interesting as far as ratings go
3. He has plenty of winnable fights left on the senior circuit against guys like Shogun, Wandy, Franklin, etc.
4. MW is an option and they can sell the idea that he'll be rejuvenated at 185