General Terms and Conditions

These General Conditions of Insurance (GCI) are solely applicable to a private residential lease in the United Arab Emirates. They govern the contractual relations between 12Cheques, the tenants or guarantors benefiting from the guarantee (the Tenant) and the guaranteed landlords (the Landlord) and are subject to the binding provisions of the Law of the United Arab Emirates (UAE).

Art. 1 What is the purpose of the present information

According to the Federal law No. 6 of 2007 of the UAE, the Insurance sector is regulated by the Insurance Authority. The present general terms and conditions provide informations on the identity of the insurer and the principle elements of the insurance contract.

Art. 2 Who is the Insurer

The insurer is Alliance Insurance (Alliance), insurance company registered with the Insurance Authority under the Trade License XXX, with a business address at Warba Center Abu Baker Al Siddiqque road. 2nd floor, P.O Box 5501.

Art. 3 Who is the Interlocutor

In its capacity of representative of Alliance Insurance for the present Rental Guarantee insurance contract (Rental Guarantee), 12Cheques screens the insurance proposals on behalf of Alliance, issues policies and examines the eventual claims. All communications in regards to the present Rental Guarantee should be addressed to 12Cheques. The business address and contact informations of 12Cheques are indicated in the Certificate and the General Conditions of Insurance.

Art. 1 Object of the guarantee and exclusions

1. 12Cheques undertakes to guarantee the payment of any liability related to non payment of rent only, contracted by the Tenant in relation to the Landlord, resulting from the tenancy agreement registered under the EJARI number specified in the rental guarantee certificate (the Certificate), in an amount up to the guaranteed sum stated in the Certificate, including the capital, interest and costs.

2. The obligations on the part of 12Cheques are excluded or limited in the following cases:

a. 12Cheques does not provide a surety between a Tenant and a Sub-Tenant (without a written agreement from the Landlord);

b. if several Certificates guarantee the same tenancy agreement, only the most recent Certificate shall apply;

c. the surety established by 12Cheques is provided solely for liabilities of the Tenant which might arise after the Certificate’s date of validity (issue date).

Art. 2 Rental Guarantee Certificate

1. Upon acceptance of the application for the surety and receipt of the fixed registration premium, 12Cheques will issue a single original Certificate which it sends to the Landlord or his representative (beneficiary). 12Cheques WILL ISSUE A CERTIFIED AUTHENTIC ELECTRONIC CERTIFICATE WHICH IT WILL SEND TO THE TENANT AND TO THE LANDLORD OR HIS REPRESENTATIVE (BENEFICIARY).

2. A copy of the Certificate is sent to the Tenant (policyholder) and constitutes an insurance policy within the meaning of Article 11 of the Swiss Federal Law on Insurance Contracts (LCA) TO BE ADAPTED. If the content of the insurance policy is not consistent with the agreements reached, the Tenant or the Landlord must ask for it to be corrected within four weeks from receipt of the document, failing which the content shall be deemed to have been accepted.

Art. 3 Co-Tenants

1. When the Certificate is drawn up in the name of several Tenants, the latter are deemed to be jointly and severally liable so that each of them is irrevocably deemed to have given the others permission to act in his name and for his account and each Tenant may likewise validly instruct 12Cheques in any matter concerning the tenancy agreement and the surety (release of the surety, movements of funds, etc.).

2. 12Cheques may exercise its right of redress against any one of them for the totality of the guarantee (Article 6 below) in accordance with the rules of joint liability.

3. If the Certificate is signed by one or more guarantors, the guarantor(s) personally undertake to be jointly liable to 12Cheques for any right of recourse. 12Cheques may then claim from the guarantor(s) as joint debtors the repayment of all monies paid to the Landlord under the contract, including interest and administrative and legal costs.

Art. 4 Start and End of Surety

1. The surety takes effect upon the date of issuance of the original copy of the Certificate.

2. The surety ends under one of the following conditions:

a. the Landlord and the Tenant waive the surety in writing by returning the original electronic Certificate, completed and signed, to 12Cheques;

b. 12Cheques has paid the Landlord the amount claimed within the limits of the guarantee, in accordance with Article 5 below;

c. if, within 12 months of the expiry of the tenancy, the Landlord has not made a claim against the Tenant within the framework of legal proceedings or proceedings in respect of debts or bankruptcy, the surety provided by 12Cheques shall lapse automatically. If the Tenant, by producing evidence that he vacated the premises covered by the guarantee more than one year ago, seeks release of the surety, 12Cheques must duly inform the Landlord. 12Cheques shall inform the Landlord upon receipt. If the latter fails to provide evidence within fourteen days that he has taken court action to secure payment or commenced proceedings against the Tenant within one year of the date on which he terminated the lease covered by the guarantee, the obligation on the part of 12Cheques shall lapse automatically;

d. in the event of guarantee substitution, in accordance with Article 4 paragraph 5 below.

3. If, after the conclusion of the agreement, the Landlord sells the tenanted premises or he forfeits the property under a compulsory enforcement procedure (action taken in respect of debts or bankruptcy) and the tenancy agreement passes to the purchaser with the ownership of the property, the object of the insurance within the meaning of Article 1 above shall apply to the new Landlord as soon as the tenancy agreement has been transferred. The new Landlord must make himself known to 12Cheques within 30 days from the transfer of ownership.

4. In the event of any amendment of the lease affecting the rent guarantee, the Tenant must ask 12Cheques to alter the Certificate accordingly within 30 days of receiving the document modifying the original Lease. In the event of the transfer of the Lease to a new Tenant, the rent guarantee provided by 12Cheques terminates in accordance with the procedures set out in article 4.2. The person taking over the rented property may not in any circumstances rely on the rent guarantee arranged by the Tenant. The Successor may submit a new request to 12Cheques.

5. The Tenant who wishes to give the Landlord a different rental guarantee that is intended to replace the guarantee drawn up by 12Cheques shall not be released from his obligations to 12Cheques until he has provided the Landlord with a new certificate of surety or a new quarterly bank cheques covering rent for the remaining period of the tenancy contract that replaces the guarantee drawn up by 12Cheques, and 12Cheques with the written agreement of the Landlord releasing 12Cheques from all obligations, together with the original Certificate, duly completed and signed.

Art. 5 Payment of the Surety to the Landlord

1. Pursuant to Article 257e paragraph 3 of the Swiss Code of Obligations (CO) TO BE ADAPTED, applied by analogy, 12Cheques undertakes to pay the Landlord the amount due by the Tenant, within the limits of the sum guaranteed by the Certificate and subject to Article 1 paragraph 2 above, when any one of the following conditions is satisfied:

a. upon presentation of the original Certificate or an acknowledgement of debt, specifying the date of cancellation of the lease and the amount claimed by the Landlord, dated and signed by the Tenant and the Landlord (joint signature); CAN THIS APPLY TO THE UAE?

b. upon presentation and surrender of the original notice to pay sent to the Tenant at the request of the Landlord (supporting documents included), provided that it is enforceable and no appeals, even partial, have been lodged, or it is accompanied by a final and enforceable judgement that dismisses the original appeal;

c. upon presentation and submission of the original copy of a final and enforceable judgement from the Rental Dispute Center of the Emirate of Dubai imposing a fine on the Tenant in respect of a claim relating to the tenancy agreement.

2. When the parties have agreed a place of jurisdiction in the United Arab Emirates, in particular at the place where the property is situated, and/or elected domicile in the United Arab Emirates for the performance of the agreed services and/or receipt of any notifications, the Landlord must act in the courts or bring proceedings in the United Arab Emirates at the agreed place of jurisdiction and will not be able to rely on the provisions of Article 495 of the Swiss Code of Obligations to seek immediate payment of the surety by 12Cheques. TO BE MODIFIED

3. Within a framework of a combined product, if the rent guarantee is claimed by the Landlord, the amount paid is taken from the rent cheque already deposited and cleared on the account of the Landlord until funds have been exhausted, then 12Cheques pays the additionnal sum required up to the amount of the rent guarantee set out in the Certificate, in accordnace with section 5.1.

Art. 6 Right of Redress / Subrogation

1. In the event 12Cheques pays an amount to the Landlord in accordance with the rental guarantee, 12Cheques is immediately and fully subrogated to the rights of the Landlord and may claim from the Tenant, by means of a payment notice, a refund of any sums it has paid to the Landlord under the agreement, plus interest, charges of legal costs. The attention of the Tenant is drawn to the fact that any payment made subsequent to the notice of payment shall be addressed to 12Cheques alone. If an action is brought against the Landlord on this matter, the Tenant must notify 12Cheques in writting prior to any settlement.

2. The Tenants expressly declare that they agree to party substitution, namely that of the Landlord by 12Cheques, for the purpose of all court proceedings and compulsory enforcement already pending at the time of subrogation of the rights and that they undertake to reimburse 12Cheques all the sums that 12Cheques has paid in connection with the rental guarantee plus interest and expenses.

Art. 7 Premiums

1. The Tenant undertakes to pay 12Cheques an insurance premium each year based on the amount of the rental guarantee plus VAT and administrative costs.

2. Annual premiums are payable in advance for each annual rental agreement to which the premium relates. TO BE REWRITTEN WITH PAR 4.

3. The amount paid for the annual premium is indicated on the proposal and the Certificate. It is equivalent to 2% of the annual rent, AED 50 of administrative cost and 5% VAT on the the annual premium.

4. In the case of refusal by 12Cheques of a rental guarantee request, 12Cheques will reimburse the entire initial premium upon request by the Tenant.

5. The Tenant is required to pay the premium for the duration of the surety agreement in accordance with the provisions in Article 4 paragraph 2 above. He is obliged, where necessary, to complete the appropriate formalities with the Landlord to enable 12Cheques to obtain confirmation of the expiry of the surety.

6. If the surety agreement is terminated before the end of the rental agreement, the Tenant will request from 12Cheques the refund of his unexpired annual premium, pro rata temporis. However, pursuant to Article 42 paragraph 3 of the Federal Act on Insurance Policies (IPA), if termination takes place during the year that follows the inception of the surety policy, the premium for the whole year shall be retained by 12Cheques, except if the Tenant establishes a new rental guarantee issued by 12Cheques. TO BE ADAPTED TO THE UAE.

7. In the event of non-payment of the annual premium, the defaulting Tenant shall be requested by formal written notice and at his expense to pay the premium within 14 days. It will then be recovered through the channels of ordinary law without suspension of cover, notwithstanding Article 20 paragraph 3 IPA. The costs for summons and pursuance procedures will be added to the premium due.

Art. 8 Liability

12Cheques and its employees assume no liability for any loss resulting from the performance, non- performance or inadequate performance of the present agreement, subject to gross negligence or fraud within the meaning of Article 100 paragraph 1 of the Swiss Code of Obligations. Liability on the part of 12Cheques is expressly excluded for any loss resulting from the information that it provides to the Landlord or to a third party about the Tenant. TO BE ADAPTED TO THE UAE

Art. 9 Data Protection, Telephone Recordings

1. 12Cheques shall apply the provisions of Swiss data protection law (FADP). In so doing, will process the collected data for purposes of: (pre-)contractual performance, verification of solvency, credit scoring and credit report check with the AECB, recovery, settlement of claims, customer care, documentation of client relationships (existing and/or future), calculation of premiums, risk appraisal as well as for marketing and statistical purposes.

2. 12Cheques is authorised to share data with partner insurance and re-insurance companies and third parties for quote preparation, claim processing, risk assessment, determination of premiums as well as for marketing and statistical purposes.

3. For purposes of credit checking, issuance of the Certificate or recovery of unpaid debts, 12Cheques may share client data with third parties.

4. Data required for the settlement of legal proceedings may also be disclosed to third parties concerned or transferred to foreign countries.

5. 12Cheques is authorised to record telephone conversations for purposes, in particular, of quality assurance and training. TO BE ADAPTED TO THE UAE

Art. 10 Final Provisions

1. 12Cheques reserves the right to amend these General Terms and Conditions of Insurance at any time to the Tenant and Landlord by giving 30 days written notice. The Tenant may then cancel the rental agreement without notice, provided that the Landlord is given an equivalent guarantee that enables the Certificate to be returned to 12Cheques in accordance with article 4.5 above. If the policy has not been cancelled before the 31st of December of the current calendar year, the new Genral Terms, including new rates, will be deemed to be accepted by the Tenant. Any amendment affecting the rights and/or obligations of the Landlord must be submitted to the latter or its agent for acceptance. The Landlord or its agent may inform 12Cheques that it requires the Terms of the GCI to be left unchanged as regards the provisions relating to it. If a refusal is not received within 30 days, these amendments shall be deemed to have been accepted.

2. 12Cheques reserves the right to decline any application for a surety made to it, at its sole discretion and without obligation to state reasons. TO BE ADAPTED TO THE UAE

Art. 11 Applicable Law and Place of Jurisdiction

Relations between 12Cheques, the Tenant and the Landlord shall be governed by the law of the United Arab Emirates.. Any disputes which may arise between 12Cheques, the Tenant and the Landlord shall be referred exclusively to the competent courts at the place where 12Cheques has its registered office, subject to an appeal to the Supreme Court in the cases for which provision is made in law. 12Cheques nevertheless reserves the right to bring proceedings at the domicile / registered office of the Tenant or Landlord or in any other competent court, in the United Arab Emirates or abroad. In that case, the law of the United Arab Emirates shall likewise apply.

The english version of these GCI is authoritative.