Leave And Licence Agreement

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A leave and licence agreement is a contract between a licensor and licensee that allows the latter to occupy the former's property for a certain period. This type of agreement is used to allow a licensee to use a licensor's property for commercial or personal use for the duration of the contract. This agreement is similar to a lease agreement except it does not provide the same protections to the licensee. For example, landlord-tenant laws do not apply to residencies under the leave and licence agreement, so notice is not required to require a licensee to evacuate the property.

Common Sections in Leave And Licence Agreements

Below is a list of common sections included in Leave And Licence Agreements. These sections are linked to the below sample agreement for you to explore.

Leave And Licence Agreement Sample

Exhibit 4.8 LEAVE AND LICENCE AGREEMENT This Leave and Licence Agreement (the “Agreement”) is made at Mumbai on 29 th Dec 2006 BETWEEN
1. Sofotel Software Services Private Limited, a company incorporated under the Companies Act, 1956, and having its registered office at 10-B, Bakhtawar, Nariman Point, Mumbai 400021 (hereinafter referred to as the “Licensor”, which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include its successors and assigns) of One Part.
2. WNS Global Services Private Limited, a company incorporated under the Companies Act, 1956, and having its office at Gate 4, Godrej & Boyce Complex, Pirojshanagar, Vikhroli (W) Mumbai 400 079, (hereinafter referred to as the “Licensee”) of the Other Part.

(“Party” or “Parties” shall have individual or collective reference to the Licensor and the Licensee)

A. The Licensor has the absolute right to use, occupy, possess, and enjoy the entire building known as the Commercial Office Building (the “Building”) (along with its common areas and exclusive car parking spaces) situated on plot No. 192B and which is more particularly described in the Plan annexed hereto as Annexure A.
B. The Licensee has requested the Licensor to grant to the Licensee the use of the office premises on the lower ground floor, ground floor of the Building having, inter-alia, an aggregate area admeasuring 36,500 sq.ft or thereabouts (the “Premises”), on a leave and licence basis and the Licensor has agreed to grant such permission to the Licensee by way of leave and licence for the period, at the consideration and upon the terms and conditions as hereinafter mentioned.
NOW THEREFORE THE PARTIES AGREE AND THIS AGREEMENT WITNESSETH AS FOLLOWS:
1. GRANT OF LICENCE AND TERM OF THE AGREEMENT

The recitals contained herein shall be deemed to constitute an integral operative part of this Agreement.

1.1 In consideration of the licence fees hereinafter reserved and of the rights and the covenants of the Licensee hereinafter contained, the Licensor hereby agrees to grant to the Licensee and the Licensee hereby agrees to take on leave and licence the Premises for a term of 60 months commencing from 1 January, 2007 (the “Effective Date”) on the terms and conditions herein contained. The Licensee shall be entitled to use the furniture, fixtures and fittings lying in the Premises, a list of which is annexed hereto and marked Annexure B.
1.2 The Licensor hereby confirms that in view of the licence granted by this Agreement the directors, employees, servants, staff, agents and the bonafide visitors of the Licensee shall be permitted and shall be at liberty to enter and use the Premises for the purpose of the Licensee’s business.
1.3 The Licensor shall, on the Effective Date, hand over to the Licensee physical possession of the Premises and a set of duplicate key(s), which would permit the Licensee to gain access to the Premises and all other areas in and around the Premises.
2. CONSIDERATION
2.1 In consideration of the licence hereby granted by the Licensor to the Licensee for the Premises and the Services to be rendered by the Licensor under Clause 6 hereunder, the Licensee hereby agrees to pay to the Licensor licence fees at the rate of Rs. 16,61,415 (Rupees Sixteen lakh sixty one thousand four hundred and fifteen only) per month (the “Licence Fees”) for a period of thirty six (36) months commencing the Effective Data where after both parties shall mutually agree to an escalation of License Fees which in no event, shall exceed fifteen (15) percent of the License Fees and such mutually agreed escalated Licence Fees shall be payable by the Licensee to the Licensor for the balance of the licence period i.e. twenty four (24) months. It is clarified that except for the Licence Fees, the Licensee shall not be liable to pay any

further fees, service charges, rentals, maintenance, water charges, municipal taxes or any pre-quantified annual/monthly maintenance charges to the Licensor or any other third party in relation to the Premises and the Licensor acknowledges that the due payment of the Licence Fees forms the sole and adequate consideration for the licence granted herein and the Services to be rendered by the Licensor under Clause 6 hereunder. It is hereto agreed between the Parties that the Licensee shall have the exclusive right to use only in the manner in which such common areas in any building are normally put to use and in keeping with the decor / layout of the Building, the common areas of the Premises that have been demarcated in the plan annexed hereto as Annexure A (the “Common Areas”) without payment of any additional licence fees or rentals.

2.2 The Licence Fees shall be payable in advance by the Licensee monthly, on or before the 5 th (fifth) day of each month for that month’s use. The Licensor hereby covenants with the Licensee that upon the Licensee paying the Licence Fees on or before the date mentioned herein, in the manner herein provided and by observing and performing the covenants, conditions and stipulations herein contained, the Licensee shall be permitted unimpeded use and occupation of the Premises during the period of the Licence herein created.
2.3 The Licensee shall withhold taxes on all amounts due and payable to the Licensor as may be required under the Income Tax Act, 1961 or any other law as may be applicable and shall make payments to the Licensor subject to such taxes being withheld. The Licensee shall periodically and always within a reasonable time provide the Licensor with the relevant TDS certificates in respect of the aforesaid tax deductions.
2.4 The Licensee shall, during the term of this Agreement, pay all regular outgoings in respect of the Premises. These shall include the charges for electricity consumed based on the reading of the meter installed in that behalf within the period stipulated in the bill issued by the supplier of electricity to whom the payment shall be directly remitted by the Licensee. The Licensor undertakes to forward to the Licensee the bills for such electricity supply, if at all the Licensor receives such bills. It shall however not be the Licensor’s responsibility to track and ensure the receipt of the bills by the Licensee whose responsibility it shall be to ensure that the electricity bills are always paid regularly.
3. SECURITY DEPOSIT
3.1 On or before the execution of this Agreement, the Licensee shall deposit with the Licensor a sum of Rs. 16,61,415 (Rupees Sixteen lakh sixty one thousand four hundred and fifteen only) as an interest free security deposit (hereinafter referred to as the “Security Deposit”). On completion of the initial thirty six (36) months as per clause 2.1, the security deposit would increase proportionately with the license fee.
3.2 The Licensor shall repay to the Licensee the Security Deposit upon the expiry or sooner determination of the licence period as provided herein simultaneously upon handing over of vacant Premises (duly debonded) by the Licensee to the Licensor. As provided herein or on the settlement of any outstanding bills in respect of the premises payable by the Licensee hereunder, whichever is earlier, provided that the Licensee removes themselves their belongings, equipment, furniture and fixtures
from the premises and hands over the vacant possession of the premises (duly debonded) by the licensor forthwith upon such expiry an/determination.
3.3. If the Licensor fails to refund the Security Deposit or any part thereof for any reason whatsoever, the Licensee shall, without prejudice to its right to recover the Security Deposit or any part thereof or to any legal remedy available to it, be entitled to claim from the Licensor interest calculated at the rate of 2% per month on outstanding Security Deposit or any part thereof, calculated till the date of actual payment of the said amount.
4. LICENSEE’S COVENANTS
The Licensee hereby agrees, undertakes and covenants with the Licensor as follows:
(a) that within the Premises, including the Common Areas within the Building the Licensee shall keep the interior walls, floors, ceiling, doors, windows, electric fittings and installations and water connections in good order and condition (reasonable wear and tear and loss or damage by fire, accident, irresistible force or act of God excepted);
(b) that upon the expiration or sooner determination of this Agreement, the Licensee shall remove from the Premises, all such furniture and fittings belonging to the Licensee without in any way damaging the Premises;
(c) that upon the expiry of the period of the licence or sooner determination of this Agreement, the Licensee shall forthwith vacate the Premises and hand over vacant and peaceful possession of the Premises (duly debonded) to the Licensor;
(d) that the Licensee shall promptly notify the Licensor of any notice received by the Licensee in respect of the Premises;
(e) that subject to Clause 10.1 hereto, the Licensee shall not have any right to transfer, assign, mortgage or part with possession of the Premises or create any third party rights therein in any manner whatsoever;
(f) that the Licensee shall keep all articles, furniture, fixtures, vehicles or valuables in the Premises at its own risk in all respects and the Licensee shall not hold the Licensor responsible or liable for any damage to the same or any loss due to theft etc. provided that such damage, loss or theft is not caused by the negligence of the Licensor, its employees or agents;
(g) that the Licensee shall permit the Licensor’s authorised representatives to inspect the Licensed Premises during the day upon providing reasonable prior notice in that behalf of at least 3 (three) working days to the Licensee;
(h) that the Licensee agrees that it shall not undertake any activity which would be contrary to the terms and conditions of this Agreement or which would otherwise adversely affect the Licensor’s right, title or interest in respect of the Premises;
(i) that the License shall bear all running costs incurred in the operation of all back to back standby diesel generators installed by the Licensor pursuant to Clause 5 (c) of this Agreement.