Municipal Code Book All Chapters

Example 1: Rent Abatement Clause Providing for a Landlord Remedy and Damages

Provided Tenant is not then in default in the observance and performance of any of the covenants and conditions of this Lease on Tenant's part to be observed and performed beyond any applicable grace periods expressly provided in this Lease for the curing of such default, then, for the period (sometimes referred to herein as the "Rent Credit Period") beginning on the Commencement Date and ending on , Tenant shall be entitled to a conditional rent credit in the sum of ( ) against each monthly installment of Fixed Rent payable during such Rent Credit Period.

If the Commencement Date shall not occur on the first (1st) day of a calendar month, then the amount of the for the month in which the Commencement Date shall occur shall be equitably apportioned by the number of days from the Commencement Date to the last day of such month.

The aggregate amount of Fixed Rent so conditionally excused during the Rent Credit Period by operation of the foregoing provisions of this Section 1.05 is sometimes referred to herein as the . The date next following the end of the Rent Credit Period is sometimes referred to herein as the .

If (x) at any time during the Term Tenant shall be in default in the observance or performance of any of the terms, covenants and conditions of this Lease on Tenant's part to be observed or performed and this Lease and the Demised Term shall terminate, expire or come to an end as a result of such default, or (y) if this Lease shall be disaffirmed or rejected or otherwise terminated in connection with any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the present of any future federal bankruptcy act or any other present or future applicable federal, state or other statute of law or (z) if Tenant's observance or performance of any of the material terms, covenants or conditions of the Lease on Tenant's part to be observed or performed shall be reduced or limited or abated in connection with any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the present or any future federal bankruptcy act or any present or future applicable federal, state or other statute of law, then, upon the occurrence of any such event the unamortized portion of the Fixed Rent Credit Amount for the period from the date of such termination to the shall become immediately due and payable by Tenant to Owner.

For the purposes of this subsection (B), the Fixed Rent Credit Amount shall be deemed amortized on an equal basis over the period from the to .

If, as of the Expiration Date, Tenant shall not then be in default in the observance or performance of any of the monetary terms, covenants and conditions of this Lease on Tenant's part to be observed or performed beyond any applicable grace period expressly provided in this Lease for the curing of such default, Owner shall waive payment of the Fixed Rent Credit Amount.