LEAVE AGREEMENT FOR ADVERTISEMENT HOARING

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

___________________________________________________________________________hereinafter 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 known as “Silver Cottage” 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 five (5) years, with an initial lock-in period of three (3) years and to be renewed thereafter at the discretion of the Owners 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 five (5) 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.      SECURITY DEPOSIT AND LICENSE FEE:

i.                    The Advertiser shall, on or before execution of this agreement, deposit ________________ and keep deposited a sum of Rs. ____________ (Rupees _____________________ only) with the Owners as interest free refundable security deposit for due observance and performance hereof. The deposit shall be refunded to the Advertiser on the present agreement coming to an end and upon the Advertiser ceasing to display the advertisement on the said hoarding. The Owners shall be entitled to deduct from the said deposit, all amounts due and payable by the Advertiser to the Owners under these presents including the amounts which may have remained unpaid by the Advertiser relating to the said hoarding to the Local Authorities, for electricity charges etc. Before claiming refund of the said security deposits, the Advertiser shall produce and submit to the Owners all receipts in respect of uptodate payments effected by the Advertiser to the Authorities related to the said hoarding for their verification.

ii.                  In addition to the security deposit amount referred to in Clause 3 (i) above, the Advertiser shall pay to the Owners a net monthly licence fee 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, which ever 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 @ 15% 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 shal furnish the required Certificate to the Owner within thirty (30) days of the next following month.

iv.                Notwithstanding any other provisions of this Agreement including the termination of the Agreement by the Owners on account of any breach by the Advertiser, the Advertiser shall in all circumstances be liable to pay to the Owners the monthly license fee and all other amounts as recorded in this agreement for the entire lock in period of three (3) years.

4.      ERECTION OF HOARDING AND SANCTIONS:

i.                    The Advertiser will place the hoarding externally one feet 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 atleast 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 it’s 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 agree 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 not entitle the Advertiser to claim any reduction in the monthly compensation or in the amount of interest free security deposit made. In such circumstances, if the Advertiser desires to terminate and so terminates this arrangement, in that event, the Owners shall refund the security deposit, 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 it’s 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 into any agreement/arrangement with any other Advertiser or agency, in respect of the said hoarding or the advertisement or publicity to be displayed thereon 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 leveling 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 therefrom 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 interest free security deposit from the Owners and the Owners shall upon demand refund such deposit to the Advertiser subject to all deductions therefrom of all outstanding amounts due and payable by the Advertiser to the Owners under these presents.

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 five (5) years. The Agreement shall not be terminated by either party for the initial lock-in period of three (3) years unless there is a breach of any terms and conditions by either party. If after expiry of the initial lock in period of three (3) 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 interest free security deposit, 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 shall ipso facto stand terminated and which termination shall 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 five (5) 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 five (5) 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 a sum of Rs. ________________ (Rupees ______________________ only) for each day as and by way of mutually agreed liquidated damages 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 security deposit after adjusting agreed deductions in terms hereof 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 .................. 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

 the within named

THE OWNERS

1.      ___________________

2.      ___________________

in the presence of:      

 

SIGNED AND DELIVERED BY

The Within named

THE ADVERTISER 

M/S. ___________________ by the hand of its partner Mr. __________

in the presence of__________