Lease Termination Agreement
(Industrial Lease)

Summary

This lease termination agreement is used to document an early termination of a commercial and industrial lease agreement agreed to by a landlord and tenant, typically upon payment of a termination fee by the tenant. This template includes practical guidance, drafting notes, and optional clauses. If the parties agree to terminate a lease prior to the expiration of the lease term, a lease termination agreement should be executed. Such agreement memorializes the termination of the lease and provides any terms or provisions that may survive termination of the lease (e.g., environmental obligations or indemnities). Just like any other amendment or modification to the lease, a lease termination agreement should be in writing, signed by the parties to the lease (or their successors or assigns), correctly identify the lease being terminated, and clearly and concisely set forth the conditions and agreements made with respect to the termination. This template may be tailored to suit each transaction. For more information on industrial lease agreements, see Industrial Lease Agreements. For a commercial and industrial lease template, see Commercial and Industrial Lease.