LICENSE AGREEMENT DRAFT For HOARDING ADVERTISEMENT

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LICENSE AGREEMENT FOR ADVERTISEMENT HOARDING

Date: _________________________________________________________________ hereinafter


collectively referred to as “THE OWNERS” (which expression shall unless it be repugnant to the
meaning or context thereof be deemed to mean and include their respective legal heirs, representatives
and assigns) of the ONE PART;

AND

___________________________________________________________________________herein
after referred to as “THE ADVERTISER” (which expressions shall unless it be repugnant to the
context or meaning thereof be deemed to mean and include the said firms, its partners or partner for
the time being the survivors or survivor of them and the heirs, executors and administrators of the last
surviving partner) of the OTHER PART.

WHEREAS:-

The Owners are absolutely seized and possessed of the dwelling house/multi-storied building situated
at _______________________________________ (hereinafter referred to as “the said property”) as
Owners thereof and which property is more particularly described in the Schedule hereunder written.
The Advertiser is desirous of erecting an independent illuminated advertisement hoarding/structure of
maximum size of _____ft (ht) x _____ ft (width) (but not falling outside the compound) on the said
property without in any manner touching the existing structure/building and have approached the
Owners for grant of permission to install the same for display of commercial advertisements by the
Advertiser, but without having any other rights of whatsoever nature in the said property or in any
part thereof and which permission (to so erect and display by the Advertiser), the Owners have agreed
to grant on the terms and conditions recorded herein.

NOW IT IS HEREBY AGREED AND RECORDED BY AND BETWEEN THE PARTIES


HERETO:

1.      LICENSE:

  i.     The Owners hereby, subject to terms and conditions of the present agreement, agree to grant
limited license and permission to the Advertiser to enter their said property to erect an illuminated
advertisement hoarding of the maximum size of _______ft. (ht) x ______ ft.(wt) and to display
commercial advertisements on such hoarding subject to the Advertiser obtaining all the necessary
sanctions, permissions and Licensees required from the concerned Municipal and other Authorities
entirely at their own costs and efforts with regard to the size of the hoarding facing the traffic coming
from _________ and going towards ________________but without having possessory or any other
rights of whatsoever nature in the Owner’s said property.

2.      TERM:

i.       The permission to erect, use and display the advertisement hoarding shall be valid for a total
limited period of ____ ( ___) years, with an initial lock-in period of _____ years and to be renewed
thereafter at the discretion of the Owners or the Advertiser, on such fresh terms and conditions as may
be mutually agreed by the parties, in particular as to the escalation of the monthly compensation and
the period.
ii.      The aforesaid period of ____ years shall commence from the expiry of period of sixty (60) days
from the date hereof or from the date of commencement of the work of erection of the advertisement
hoarding on the said property, whichever is earlier.

3.      LICENSE FEE/RENT:

i.  The Advertiser shall pay to the Owners a net monthly licence fee/rent as under:

a.       for the first period of Rs. ____________ (Rupees _______ three (3) years ____________ only)
per month; and

b.      For the balance period of Rs. _______________(Rupees two (2) years        _________________
only) per month

The payment of the aforesaid license fee shall commence on expiry of period of sixty (60) days from
the date of these presents or on the day of commencement of the work of erection of the
advertisement hoarding on the said property, whichever is earlier.

iii.   The Advertiser shall pay the said licence fee plus service tax (if applicable) to the Owners in
advance on or before the 10th day of every current month, time being essence of the contract. In the
event of any delay in payment on the due date, the Owners, without prejudice to their right to
terminate the agreement, shall be entitled to charge interest @ 12% per annum with monthly rest on
the due amount and remaining unpaid for the delayed period. The Advertiser shall be entitled to
deduct applicable TDS on the amount of license fee and shall furnish the required Certificate to the
Owner within thirty (30) days of the next following month.

4.      ERECTION OF HOARDING AND SANCTIONS:

i. The Advertiser will place the hoarding externally one foot above the roof level of the existing
structure and shall maintain the hoarding site at its own risk, efforts, cost and expenses without in any
way damaging the Owner’s property or any part thereof. The Advertiser shall pay all applicable
charges and/or expenses of any nature whatsoever, payable with regard to the hoarding directly to the
relevant Authorities and shall keep the Owners indemnified and hereby agree to keep indemnified
against all such charges and/or damages.

ii. The Advertiser shall erect the said hoarding at their own cost and expense and shall properly
maintain the same and keep it duly painted. The Advertiser shall take a separate electricity meter and
the Owners shall give their No Objection to the Advertiser for obtaining the same. The separate
electricity meter shall be in the name of the Advertiser and all costs and charges thereof shall be borne
and paid by the Advertiser exclusively.

iii. The Owners shall allow and permit the Advertiser to erect the said hoarding, to make any changes
therein, whenever required and to display advertisement thereon or to paint, repair and maintain the
same through its workers between ______ a.m. to __________ p.m. on all working days between
_____to _______ only. To carry out such work the Advertiser shall give at least 24 hours prior
intimation thereof to the Owners. The Owners shall not be responsible for any loss/damage that may
be caused to the said hoarding or for any injury or otherwise caused to their workmen or to any
member of public which shall be the sole responsibility of the Advertiser.
iv. The Owners shall co-operate with the Advertiser and shall also give its NOC to the concerned
authorities to enable the Advertiser to erect the said hoarding in accordance with the applicable/
prevailing rules and regulations and bye laws of the concerned authorities.

v. The Advertiser shall at its own cost and efforts obtain all necessary permissions and Licensees for
the display of the said hoarding from the Municipal Corporation and other concerned authorities
before erecting the hoarding and shall from time to time keep the same renewed and directly pay all
deposits, fees, premium, taxes, levies, charges, electricity bills, outgoings etc. as applicable. The
Owners shall not be liable or responsible for any default, act or omission whatever on part of the
Advertiser in respect of the said hoarding to be erected by it. All Municipal Assessment Bills,
electricity Bills and all other charges whatever payable in respect of the said hoarding shall be the sole
responsibility and liability of Advertiser to be discharged by the Advertiser directly. The Advertiser
agrees to keep indemnified and hereby keep the Owners indemnified from any claim, action or
demand whatever in respect of the said hoarding.

vi. The Owners agree to render their full assistance and co-operation to the Advertiser in obtaining the
required sanctions, permissions and Licensees. However, if the concerned Authorities do not approve
of the size of the hoarding or the said size is ordered to be reduced or the Advertiser fails to obtain
such sanctions and permissions, the Owners shall not be responsible for the same and shall entitle the
Advertiser to claim any reduction in the monthly compensation. In such circumstances, if the
Advertiser desires, to terminate and so terminates this arrangement, in that event, the Owners shall
refund the proportionate advance license fee paid, but without interest.

5.  COVENANTS, UNDERTAKINGS AND INDEMNITIES BY THE ADVERTISER:

i. The Advertiser shall not assign, transfer or create any third party rights with regard to the limited
permission and license granted herein by the Owners which is exclusive to the Advertiser alone.
However, the Advertiser shall be entitled to deal with its own clients or with the Advertising Agencies
provided such dealings are in accordance with terms of these presents.

ii. The hoarding to be erected and advertisements to be displayed shall be so erected and displayed so
as not to in any manner directly or indirectly cause obstruction to the passage of air, light and
ventilation of the said property or of residents in the said property.

iii. The Advertiser shall not hold the Owners responsible or liable for any direct or indirect damage
caused to the hoarding due to earthquake, fire, military, mob violence, accidents or irresistible force or
any act of God or for any other reasons whatever unless the said damage is due to any direct act of the
Owners.

iv. The Advertiser shall not display any indecent or immoral advertisements or advertisements hurting
communal feelings and sentiments or advertisements prohibited by law or declared as unlawful. The
Advertiser shall indemnify and keep indemnified the said Owners against all or any claims, demands,
actions and proceedings of whatsoever nature which may be brought, commenced or prosecuted
against the Owners by reasons of or arising out of the said advertisements, that may be displayed on
the said hoarding, whether by the Municipal Corporation or by any other Authorities or any other
third party or by any member of public.

v. The Advertiser shall at its own cost duly insure and keep insured the said structure and hoarding
against all risk including third party risk.
vi. The Advertiser will have no right, title or claim of any nature whatsoever of and in the said
property or any portion thereof including the portion on which the hoarding is erected save and except
the limited licence and permission granted by the Owners to them under these presents. The
Advertiser shall display below the hoarding that they are using the area on which the hoarding is
erected as a licensee.

6.      GENERAL:

i.   During the validity of these presents the Owners agree not to raise any objection or to create any
nuisance or obstruction in the display of the hoarding in any manner. The Owners agree not to enter in
absolute terms, into any agreement/arrangement with any other Advertiser or agency, in respect of the
space of the said hoarding or the advertisement or publicity to be displayed thereon or any other
additional space or vacant land in the same premises or for any overlapping or parallel hoardings or
advertisements, during the validity of these presents.

ii. The Ownership of the advertisement hoarding including framework, display board, electrical
equipments etc. shall be of the Advertiser and on the termination of this agreement by efflux of time
or otherwise, the Advertiser shall remove the same at its own costs and efforts without causing any
damage to the said property or portion thereof or to the ground level of the property. The Advertiser
shall at its own cost set right and carry out repairs and rectify the damage caused in removing the
hoarding structure including proper levelling of the ground. If the Advertiser fails to do so within 15
days from the date of such termination, the Owners shall be fully entitled and they are hereby
authorized to remove the said structure and to sell and dispose off the same for its scrape value and to
reimburse there from the amounts spent by the Owners in its removal.

iii.  In the event any concerned Authorities or any Court passes an Order for the suspension,
cancellation or removal of the said hoarding or any advertisement displayed thereon or for defacing,
or removal of any advertisement displayed or the hoarding itself for any reason whatever, then in that
event, the advertiser shall forthwith comply with such requisitions. In event of the entire hoarding
being banned, this agreement will come to an end and the Advertiser will have no other claim against
the Owner. In such event the Advertiser shall be entitled to the refund of the proportionate advance
license fee paid to the Owners, considering the term for which such advances were paid and the
period from when the advertisement was removed by the concerned authorities.

iv.    This agreement shall be executed in duplicate. One copy is to be retained by each party. The
applicable stamp duty and registration charges shall be borne by the Advertiser.

7        TERMINATION AND EFFECT OF TERMINATION:-

i.   This Agreement shall be valid and shall be in force for the entire term/period of _______years. The
Agreement shall not be terminated by either party for the initial lock-in period of _______ years
unless there is a breach of any terms and conditions by either party. If after expiry of the initial lock in
period of __________years, either party is desirous of terminating this agreement such party shall
give advance notice of 60 days in writing to the other party. In the event of such termination, the
Advertiser shall remove the structure and the hoarding and the Owners shall refund the proportionate
advance license fee/rent, after deducting the outstanding dues, if any thereof and in accordance with
terms hereof.
ii.   In the event of breach of any of the terms and condition hereof including non payment of the
License fee on its due dates, the Owners shall be entitled to terminate this agreement for such breach.
In such event, the Owners shall give 30 days prior written notice to the Advertiser to rectify the
breach. If the defaulting party fails to remedy the breach within the stipulated time this agreement
may ipso facto stand terminated and such termination may be without prejudice to the other rights and
remedies of the Owner including their right to claim and receive the entire license fee for the
remaining unexpired lock-in period.

iii.   Upon the expiry of the period of _______ years (unless extended in writing signed and executed
by both the parties and not otherwise) or its earlier determination, the Advertiser shall without
claiming any further right forthwith remove the said structure and cease to display and/or use the
advertisement hoarding for any purpose whatever. Any use/display, after expiry of the said period of
_______ years or after its earlier determination shall be deemed to be unauthorized and the Advertiser
shall, without prejudice to all other rights and remedies of the Owners, shall continue to remain liable
to pay to the owners the agreed sum of money for each day of use of the premises and the Advertiser
shall in no circumstances be entitled to dispute the same.

iv. It is further clarified that at present the building standing on Owners’ property is of ground plus
______ Floor. If the Owners construct any additional floors or propose to demolish the existing
structure and erect a new building thereon, the Owners shall be entitled to terminate this agreement
after giving sixty (60) days notice to the Advertiser. In such circumstance, this agreement shall come
to an end and the Owners shall refund the proportionate advance license fees/rent and the Advertiser
shall have no other claim or right against the Owners.

8.      RELATIONSHIP:-

i. This Agreement is merely an agreement to grant license/permission to the Advertiser for setting up
and maintaining the hoarding on the terms and conditions as recorded herein and does not in any
manner create any landlord-tenant or any other kind of legal relationship between the parties creating
higher or different right other than what is granted herein.

9.      DISPUTE, ARBITRATION AND JURISDICTION OF COURTS:-

i. Any dispute or difference arising out of and under these presents including as to the interpretation of
the terms and conditions, or non-compliance or non-payment, the same shall be resolved mutually and
amicably by both the parties.

ii. If it cannot be so resolved amicably the same shall be referred to the Arbitration under the
provisions of the Arbitration and Conciliation Act, 1996, or any statutory modification thereof in
force. The Arbitration shall be held at___________ and it shall be conducted in English language
only.

iii. The Courts at Kolkata alone shall have jurisdiction to try and entertain disputes between the
parties arising under these presents including arising from the Arbitration proceedings.
IN WITNESS WHEREOF the parties have hereunto set their respective hands the day and year first
hereinabove written.

THE SCHEDULE ABOVE REFERRED TO

(The said property)

SIGNED AND DELIVERED BY SIGNED AND DELIVERED BY


 the within named The Within named
THE OWNERS THE ADVERTISER 

1. Mr.__________________ M/S. ___________________ by the


2.       hand of its Director
___________________ Mr. _______________________
in the presence of:  in the presence
_________________________      of______________________           

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