Common use of Rent Reduction Clause in Contracts

Rent Reduction. 5.1. With effect from the Signature Date, the Landlord will allow the Tenant to pay a Rent Reduction as the Monthly Rental payments on each due date for payment of Rent under the Lease Agreement. The Rent Reduction will be either the specific agreed upon amount or percentage set out in item 1.4, and such Rent Reduction may be deducted from the Rent payable by the Tenant. The balance due to the Landlord after the Rent Reduction must be paid in full by the Tenant to the Landlord each Month during the term of this Agreement in accordance with the provisions of the Lease Agreement. 5.2. The Rent Reduction provisions of this Agreement will endure from the Date of Initial Reduction until the Recovery Date or, in the event of any extension of the state of Disaster as contemplated in clause 2.1.8.3, until cancellation of the Rental Reduction provisions of this Agreement by the Landlord on 1 (One) Month’s Written notice to the Tenant (“Cancellation Date”). Rent from the Recovery Date or the Cancellation Date will be the full amount due by the Tenant under the Lease Agreement. 5.3. Notwithstanding the Recovery Date or the Cancellation Date, the provisions of this Agreement (other than the Rent Reduction provisions) will endure until amounts owing by the Tenant to the Landlord in terms of this Agreement have been paid in full by the Tenant. 5.4. The Parties agree that the Capital Amount remains due and payable to the Landlord in terms of Clause 6. 5.5. The Capital Amount is unquantified at the Signature Date as there is no clear indication at the Signature Date as to when the Recovery Date will occur. The Tenant agrees that the Capital Amount will be calculated by the Landlord at the Recovery Date and hereby admits being indebted to the Landlord for the Capital Amount. The Capital Amount, once calculated, will be deemed to be a liquid amount and will include the amounts as contemplated in 5.6. 5.6. The Capital Amount will be in respect of all and any amounts payable to the Landlord in terms of the Lease Agreement, but unpaid in terms of this Agreement. This may include: 5.6.1. interest on the Capital Amount, or balance outstanding at the rate set out in item 1.6, per annum, commencing on the date set out in item 1.9.1; and 5.6.2. other ancillary costs, in the amount set out in item 1.8, which figure may include legal fees on an attorney and own client scale already incurred by the Landlord. 5.7. The Tenant hereby (i) accepts liability for the Capital Amount referred to above, plus the interest and costs contemplated in clauses 5.6.1 and 5.6.2 (“the Debt”), and (ii) consents to judgement for the full amount of the Debt. 5.8. The Tenant hereby agrees to Sign a separate Written acknowledgement of debt (“AOD”) form if requested to do so by the Landlord.