LEASE CANCELLATION AND TERMINATION AGREEMENT
This LEASE CANCELLATION AGREEMENT (this “Agreement”) is made by and among
{$landlord_name} (the “Landlord”), on their own behalf and on behalf of all other persons or
entities having an interest as landlord under that certain Lease dated {$lease_date} (the “Lease”)
demising certain leased premises described therein (the “Premises”), on property located at
{$lease_address} and by {$tenant_name} (the “Tenant”), for its own behalf and on behalf of all of
its predecessors-in-interest in the Lease and all other persons or entities having an interest as tenant
under the Lease.
Landlord and Tenant have agreed that the Lease shall be cancelled and terminated in
consideration of the mutual covenants set forth below and in accordance with the terms and
conditions set forth herein.
1. Recitals Incorporated. The foregoing recitals are incorporated herein by reference
into this Agreement as though set forth at length.
2. Security Deposit. The parties acknowledge that Tenant has deposited with Landlord
the amount of ${$lease_deposit_amount}.
3. Lease Modification. The term of the Lease shall expire and shall be deemed
terminated and cancelled effective on {$lease_expiration_date} (the “Expiration Date”). Except as
modified herein, the Lease is unmodified and in full force and effect.
4. Lease Termination and Termination Payment. Notwithstanding the foregoing, if, on
or before the Expiration Date, Tenant vacates the Premises and leaves such Premises in reasonably
good condition and repair and otherwise in such condition as is required under Paragraph 6, below
and under the Lease with respect to surrender of the Premises at the end of the term of such Lease,
then, in such event, as of the date that Tenant so vacates the Premises (such date being the
“Termination Date”), (i) the Lease shall be deemed terminated and cancelled with the same effect as
if such date were the normal expiration date of the Lease; (ii) Landlord shall pay or cause to be paid
to Tenant, a cash termination payment of {$lease_termination_amount} Dollars
(${$lease_termination_amount_dollars}); (iii) neither party shall have any claim against the other,
and each party releases the other from any and all claims, liabilities, damages or actions of any kind
whatsoever arising out of or pursuant to the Lease or Tenant’s use or occupancy of the Premises;
and (iv) Landlord shall return the security deposit to Tenant. Notwithstanding any provision in the
Lease or in this Agreement, if for any reason Tenant fails to perform any obligation hereunder or
under the Lease, including, without limitation, Tenant’s obligation to vacates the Premises and
leaves such Premises in reasonably good condition and repair and otherwise in such condition as is
required under Paragraph 6, below on or before the Expiration Date, then, in such event, the
Prepayment shall be due and payable by Tenant to Landlord immediately.
5. Compliance with Obligations. Tenant shall be responsible for all obligations of
Tenant under the Lease through and including the Termination Date, including, without limitation,
Tenant’s obligation to pay monthly rent, additional rent, utility charges and all other amounts and
charges owing under the Lease.
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6. Condition of Premises. On or before the Termination Date, Tenant shall remove all
of its trade fixtures and personal property; repair all damage to the Premises caused by such
removal; vacate the Premises and leave such Premises in reasonably good, broom swept clean
condition and repair and otherwise in such condition as is required under the Lease with respect to
surrender of the Premises at the end of the term of such Lease; and deliver the keys to the Premises
to Landlord.
7. Mutual Release. By this Agreement, effective on the Termination Date and so long
as neither party shall be in default under its obligations hereunder, each party hereto releases the
other party hereto from all claims, demands, damages, rights, liabilities, and causes of action of any
nature whatsoever, whether at law or equity, known or unknown, suspected or unsuspected, which
are related or in any manner incidental to the Lease or the Premises and which first arise out of
transactions and occurrences from and after the Termination Date. Each party waives and
relinquishes any right or benefit which it has or may have under applicable law regarding waiver of
unknown claims to the full extent that it may lawfully waive such rights and benefits. In connection
with such waiver and relinquishment, each party acknowledges that it is aware that it or its attorneys
or accountants may hereafter discover facts in addition to or different from those which it now
knows or believes to exist with respect to the subject matter of this Agreement or the other party
hereto, but that is such parties intention hereby fully, finally, and forever to settle and release all of
the claims, disputes, and differences, known or unknown, suspected or unsuspected, which now
exist or may exist hereafter between each party with regard to the Lease or the Premises. This
Agreement shall be and remain in effect as a full and complete release notwithstanding the
discovery or existence of any such additional or different facts. Notwithstanding the foregoing to
the contrary, this Mutual Release is not intended to release or offset actions by either party for
claims arising as a result of (i) a breach of the Lease and occurring on or before the Termination
Date, (ii) a breach of this Agreement, or (iii) transactions and occurrences on or before the
Termination Date.
8. Knowing Release. In executing this Agreement, each party hereto acknowledges
that they have consulted with and received the advice of counsel and that the parties have executed
this Agreement after independent investigation and without fraud, duress, or undue influence.
Dated {$date_1}_______________ Dated {$date_2}_______________
TENANT: LANDLORD:
__________________________________ __________________________________
Signature Signature
This document has important legal consequences. Please consult with an attorney prior to use of
this document as contracts may require the use of special provisions or language not included in
this form. If you choose to use this form as is, use is strictly at your own risk.
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