Lease agreement extension clause

Hi Sir,

I have a company and for that I have took one Flat on rent with out any locking period and agreement was for 3 years. In the agreement we listed below points such as

• ·         Before leaving or asking for leaving the place by any party, he need to give 2 month notices.
• ·         According to agreement every year we need to pay  2% hick in Rent.

Now on the March 2^nd 2012 we hade gave he notice to the owner saying that “We are shifting to new place because the current space is not enough for us” and on the May 2^nd that got over (we full file the first point).

But in that 2 month we are not able to find the other big office and we ask owner to extension for 1 more month (till 31^st May 2012) and he gave us that period as well, with out any new clause.

So my question is that

• Is the older agreement cluse will continues after giving notice period and extension of 1 month?·
• Because now owner asking for 2% more rent then only he can release our security deposit?
• And we are completed  1 year on this 31sy May  2012, before that we had have notice?
   

Thanks
Jaiswar Vipin Kumar R