§ 33.03 Form: License for Temporary Use of Premises for Storage

• Jurisdiction: United States
• Publication year: 2022

§ 33.03 Form: License for Temporary Use of Premises for Storage

The following license has many of the attributes of a standard lease. In fact, many of the provisions in the license are similar to that of a lease. However, the purpose of the license is clearly stated in the second and third sections, namely, that the arrangement will be only a license and that there is a limited purpose for which the premises can be used. A license is not unusual in such arrangements where there is a premises lease between the parties and there is an ancillary arrangement between the same parties for limited-purpose space or a limited time period for a special purpose. In this arrangement, the term element is missing, presumably since the storage purpose is for a limited time or the storage activities are an accommodation by the licensor with an eventual intent to later lease the spaces when there is a viable tenant for these spaces.

Note that the payment is defined as a fee and not rent to further avoid the confusion (if the statement in Section 2 is not clear enough) with a lease. However, much of the remainder of the agreement closely resembles the terms that would be offered in a lease and presumably from a drafting standpoint, the agreement can easily be converted to a lease with some adaptations of the initial clauses.

Notice also that the terms are very much in favor of the licensor and against the licensee, a situation not unusual in licensing arrangements. Additionally, note that there is a cross-default provision in the license vis-à-vis the lease, making default under the seemingly inferior license a major event for the lease.

LICENSE AGREEMENT
LICENSE AGREEMENT ("Agreement"), dated as of __________, 20___ between ABC CORPORATION, having an office at__________ (hereinafter called "Licensor") and XYZ CORPORATION (hereinafter referred to as "Licensee").

WITNESSETH:
WHEREAS, Licensor and Licensee are desirous of entering into an agreement whereby Licensee may use a portion of the lobby level in the building known as ___ (hereinafter called the "Building") on the terms and conditions hereinafter set forth.

WHEREAS, concurrently herewith, Licensor, as landlord, and Licensee, as tenant, have entered into a certain lease (hereinafter called the "Lease") for ___ on the ___ Level and ___ on the Lobby Level (such premises as demised under the Lease are hereinafter called the "Premises") in the building known as __________; and

NOW, THEREFOR, in consideration of the premises and the mutual covenants hereinafter contained, the parties hereto covenant and agree as follows:

1. Definitions

All capitalized terms not defined in this Agreement shall have the same meanings ascribed to them in the Lease.
2. License

2.1. Licensor hereby grants to Licensee, and Licensee hereby accepts, a license (hereinafter called the "License") to use that portion (hereinafter called the "Licensed Area") of the street level of the Building shown hatched in the plan annexed hereto as Exhibit A and made a part hereof for a term (hereinafter called the "License Term") to commence on the date hereof and to end on the Expiration Date unless sooner terminated as hereinafter provided.

2.2. Licensee acknowledges that its use of the Licensed Area shall be as a licensee, it being the expressed intention of the parties hereto that this Agreement shall not constitute a lease and that this License shall not vest a leasehold interest in the Licensed Area.

3. Use

3.1. Licensee shall use the Licensed Area for storage of items required for use in connection with Licensee's business operations in the Premises and for no other purpose.

3.2. In no event shall the Licensed Area be used for any retail use or for preparation of any food, beverage or other perishable item.

3.3. Licensee's use of the Licensed Area is subject to all Building rules and regulations and shall not in any way interfere with the Building's operations.

4. Installations, Fixtures and Furniture

4.1. Licensee shall not place any equipment, materials or items in or upon the Licensed Area other than (i) storage items and (ii) shelving for the storage of such items.

4.2. At or before the expiration or earlier termination of this Agreement, Licensee, at its expense, shall remove from the Licensed Area all of Licensee's property and shall repair any damage to the Licensed Area or the Building resulting from such removal. Any other items of Licensee's property that shall remain in the Licensed Area after the expiration or earlier termination of this License may, at the option of Licensor, be deemed to have been abandoned, and in such case either may be retained by Licensor as its property or may be disposed of, without accountability, in such manner as Licensor may see fit at Licensee's expense.

5. License Fee

Licensee shall pay Licensor a fixed fee (the "Fee") in the amount of: __________ The Fee shall be payable in equal monthly installments, as and when installments of Minimum Rent are payable by Licensee under the Lease.

6. Compliance with Laws

Licensee, at Licensee's own expense, shall comply with all laws, statutes, rules, ordinances, permits, recommendations and orders (hereinafter collectively called "Legal Requirements") of governmental or insurance bodies now or hereafter issued or in force affecting the Licensed Area and Licensee's use thereof.
7. Services

Licensor shall not be required to provide any services to the Licensed Area, except that Licensor shall make electricity available to the Licensed Area for the purpose of lighting only. Licensor shall have no liability to

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