This agreement is used when the “Licensor” occupies an industrial building and they wish to rent a portion of it to another called the “Licensee” who will use the area as a manufacturing facility.
A licence is different to a Sublease agreement because the premises (or part of the premises) is shared space. That is, the licensee does not have exclusive use of the Manufacturing area or portion of the area. For example – there may be common areas like a kitchen or bathrooms.
This document sets out the terms of the agreement to rent the area for the purposes of manufacturing between the Licensor and the Licensee, placing clear boundaries on the relationship.