As stipulated above, Commercial
Rent is subject to VAT. The amounts stipulated in the Lease will not include
VAT, but VAT at the applicable rate will need to be added on to any amounts
appearing on any invoices furnished to the Tenant. Furthermore, as highlighted
in clause 1.1, it is essential that VAT at the applicable rate be added in to
the total Deposit payable by the Tenant so as to ensure that the Landlord is
not out of pocket upon termination or cancellation of the Lease Agreement for
any reason.