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PLAYBOOK TEMPLATES
Tenant Improvement Allowance Agreement
A Tenant Improvement Allowance Agreement defines funding and construction terms for tenant space modifications. This playbook provides negotiation insights on payment schedules, approval rights, and completion standards.
Termination Rights
Negotiation strategy
Ensure termination rights are balanced with reasonable notice periods and penalties. Advocate for emergency termination options to protect against unforeseen events.
Negotiate for clear and fair termination terms that include adequate notice and reasonable exit penalties. Ensure emergency termination conditions are well-defined.
Essential elements
1
Notice Period
Duration before termination takes effect.
2
Exit Penalty
Fee for early termination.
3
Emergency Termination
Conditions for immediate termination.
Action framework
ACCEPT
Propose edits if notice periods or penalties are unbalanced.
EDIT
Reject if termination rights are overly restrictive or unfair.
ADD
Add language if termination rights are missing or unclear.
PRO TIP
Always ensure termination clauses include clear notice periods and equitable penalties.
Real-world examples
FAVORABLE
Preferred Termination Clause
"Either party may terminate this agreement with a [30/60/90]-day written notice. In the event of termination, the terminating party shall pay an exit penalty of [amount] unless termination is due to a breach or force majeure event."
NEUTRAL
Standard Termination Clause
"Either party may terminate this agreement with a [30/60/90]-day written notice. In the event of termination, the terminating party shall pay an exit penalty of [amount]."
UNFAVORABLE
Unbalanced Termination Clause
"The Contractor may terminate this agreement at any time with a 10-day notice, while the Company must provide a 90-day notice."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, ensure termination rights include specific conditions for risk mitigation and emergency exits.
Long-Term Contracts
For long-term contracts, negotiate flexible termination rights to allow for changes in business strategy or market conditions.
Short-Term Agreements
In short-term agreements, focus on minimizing exit penalties and ensuring quick termination processes.
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WEEK 2
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WEEK 3
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WEEK 4
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