Standard Musataha Contract

Standard Musataha Contract
- Introduction
- Chapter 1
Introduction
- Introduction
- Chapter 1
- Chapter 2
- Chapter 3
- Chapter 4
Preamble
- Introduction
General Conditions of the Contract
- Introduction
- Chapter 1
- Chapter 2
- Chapter 3

Introduction

Disclaimer

This Musataha contract is for the official use for the government of the Emirate of Abu Dhabi.
In case of any conflict or discrepancy occurring between Arabic and English concerning the interpretation of the provisions of these laws and regulations or the appendices, Arabic text shall prevail.

Chapter 1 Musataha Contract

By and between

Government of Abu Dhabi
Represented by

(……………......)
Owner (First Party)

and…………….

(………………….…....)

Musateh (Second Party)

Subject:………………………………………………………………………………………………………………………………………………………………………………………………………………………………

Introduction

Title 1: Introduction

a) Particulars of the Owner (First Party) :

Owner: Government of Abu Dhabi, represented by the Department of Municipal Affairs (...Municipality) or (Government Entity / Company ....)
Authorized Signatory:

Name:
Capacity:
Address:
Telephone:
Fax:
E-mail:

b) Particulars of the Musateh (Second Party): (Name) :
Authorized Signatory (Name):
Capacity:
Address:
Telephone:
Fax:
E-mail:
Commercial License No.:
Expiry Date:
Licensed Activity :
ID No.
Date of Issue

c) Property:

Plot of Land No.:…….... Region:………	Area:
Nature of the licensed use:

d) Musataha:

Duration (s) of Musataha: A total not exceeding fifty years
With effect from:	Ending on:
Annual Musataha fees:	Method of Payment:

Chapter 1

Definition Section

Chapter 2

Definition Section

Chapter 3

Seller Section

Chapter 4

Resources Section

Introduction

Title 2: Preamble

On ........... Corresponding to ........ / ........... of ...............a Musataha Contract was concluded

by and between: Government of Abu Dhabi, represented by ................., located in P.O. Box (............), .................................... United Arab Emirates, hereinafter referred to as (Owner) or First Party.

Represented by His Excellency /…………………………………………….

And

..................... located in P. O. Box. (……),…………United Arab Emirates,

hereinafter referred to as

(Musateh) or Second Partv.

Both parties shall be referred to separately as (Party) and jointly as (Parties).

Pursuant to the following:
a. The introduction with all its clauses shall form an integral part of this Contract.
b. The Owner wishes to grant Musataha right to the Musateh on the property and declares being authorized to conclude this Contract.
c. The Musateh wishes to obtain the Musataha right for the objectives set forth in this Contract.
d. The Owner accepts to grant the Mustaha right, as defined in Article 1.5 hereof, to the Musateh for the development of the property pursuant to the clauses and conditions stated in this Contract.
e. Both parties acknowledge that the Musataha right granted under this Contract is a real right registered pursuant to Law No. (3) of 2005 concerning the regulation of Real Estate Registration in the Emirate of Abu Dhabi and its Executive Regulations.

Accordingly, the Owner and the Musateh agreed upon the following:

Introduction

Title 3: General Conditions of the Contract

1. Definitions

Owner: Government of Abu Dhabi in its capacity as the owner of the public lands in the Emirate, represented by the Chairman / Director of the concerned government entity who shall sign on its behalf.

Musateh: The natural person, legal or juristic entity that is the owner of the real right in the Musataha in this Contract.

Third Party: Any party to whom the Musateh gave the Musataha right as subcontractor, to whom it mortgaged or leased the Musataha right.

Government-owned Company: Any company wholly owned by the Government of the Emirate of Abu Dhabi.

Musataha Right: A real right enabling its holder to erect a building or plant on the land of others, by means of an agreement between such holder and the owner of the land. Such agreement shall determine the rights and obligations of the Musateh.

Musataha Fees: The cash amount paid by the Musateh pursuant to Clause (d) of the Introduction of this Contract.

Contract Period: The term of this Contract is as specified in Clause (d) of the Introduction of this Contract, including the period of extension thereof, in case the Contract was extended pursuant to Article 4.

Commencement Date: The commencement date of the term of this
Contract pursuant to Clause (d) of the Introduction of this Contract.

Property: The land that the Musateh wishes to develop and already described in Clause (c) of the Introduction and of which the limits or landmarks are specified in the property scheme in Annex No. 1.

Competent Authorities: Any authority, body or entity specialized in the issuance of a permit or license or the application of any of the legislations.

Project: Development project decided to be established on the property by the Musateh pursuant to the approved plans, including all that is amended and approved by the Owner and the competent authorities.

Financier (Pledgee): The bank(s) or financial institutions that the Musateh concludes contracts therewith concerning the financing of the Project or any part thereof.

Site Plan of the Property: The plan showing the geographical site, the dimensions, form and area of the plot of land covered by the Contract, the general assets or natural landmarks to be preserved therein as stated in Annex 1of this Contract.

Plans: Plans of the design idea and the construction plans to be submitted to the Owner and the competent authorities for approval thereof.

Permits: Every permit, license or approval to be obtained from the competent authorities related to the Project's works.

Improvements: The Project, infrastructure and all buildings, constructions, utilities, additions, installations and any other improvements made to the property.

Infrastructure: All structures referred to in Article 10 and all other infrastructures inside the property, created on the latter for the service of the Project.

Utilities: Sanitary drainage and sewerage, and provision of water, cooled water, electricity, gas, telecommunications and trash removal systems (if applicable) or other services.

Legislations: All applicable laws, rules, regulations and orders in force in the Emirate of Abu Dhabi and the United Arab Emirates.

Standards: The rules, regulations and standards applicable in the construction sector in the Emirate of Abu Dhabi and the United Arab Emirates, related to any of the aspects of the design, construction, demo-operation, completion, operation and maintenance of the Project.

Working Day: Any day except Fridays, Saturdays and any official holidays in the Emirate of Abu Dhabi and the United Arab Emirates.

Title 3: General Conditions of the Contract

2. Right and Objective of Musataha

The Owner agrees to grant the Musateh the Musataha right on the property in return of the Musataha fees and pursuant to the conditions, obligations and commitments that the Musaten shall implement under this Contract.

The Musateh shall use the property for the purpose of creation of the project pursuant to the provisions of this Contract.

The Musateh shall not use the property or any part thereof for an objective that is contrary to the objective permitted by the legislations and shall not allow others of the same.

The Musateh shall grant the Owner, under this Contract, without any charges, the right of construction, installation and operation of media materials, including banners, informational materials and optical advertisements in specific public places of the property, chosen by the Owner, provided that the right of the Musateh on the property covered by the Musataha, the nature of investment and the Project erected therein are not damaged.

Title 3: General Conditions of the Contract

3. Contract Validity and Term

This Contract shall become effective and binding to both parties from the
date of signature thereof. The term of this Contract shall start on the
commencement date set forth in Clause (d) of the Introduction of this
Contract and shall continue,……………………….taking in consideration the preparatory period (if any), the provisions of extension and early termination stated in this Contract, to be valid and effective until the expiry date thereof pursuant to Article (4).

The possession of the property shall be transferred from the Owner to the Musateh on the commencement date stated in the Introduction and the Musateh acknowledges receiving the property.

Title 3: General Conditions of the Contract

4. Renewal of the Contract

Six months before expiry of the Contract term, the property (Musataha premises) may be offered in a bid pursuant to the provisions of Procurement, Tenders and Bids in force in the Emirate of Abu Dhabi, provided that the Musateh is notified of the same at the beginning of the second half of the last year of the Contract's term.

The Musateh shall notify the Owner in writing of its willingness to renew or not renew the Contract six months at least before expiry of the Contract term pursuant to Clause (d) of the Introduction of this Contract.

Title 3: General Conditions of the Contract

5. Musataha Fees

The Musateh shall pay the Musataha fees to the Owner for the whole term of the Contract, and the payment shall be made annually, in whole, at the beginning of every year.

Title 3: General Conditions of the Contract

6. Taxes and Fees

The Musateh shall pay, throughout the Musataha period, all the other taxes and fees of any description, imposed by any governmental entity on the property and on the improvements.

Chapter 1

Title 3: General Conditions of the Contract

7. Benefits and Services

The Musateh shall pay, throughout the Musataha period, all the fees related to all benefits and services associated to the property, for example without limitation, the water, electricity, gas, telephone and waste removal fees from the property.

Title 3: General Conditions of the Contract

8. Approval of the Plans

The Musateh shall, within a period not exceeding sixty (60) days at most from the date of entry into force of this Contract, prepare the plans of the property and the Project decided to be established on the property
to be submitted to the Owner and the competent authorities for approval
thereof. The Owner may extend this period if it deems it appropriate.

The Owner shall, within thirty (30) days from the submittal of the Project's plans and permits issued by the competent authorities, notify the Musateh by means of a letter, of its approval or non-approval of the plans.

If the Owner deems it appropriate to approve the plans provided that
some modifications are made, it shall notify the Musateh of the same in writing, and the Musateh shall introduce all amendments required by the Owner upon the plans and shall resubmit them for approval by the
Owner and the competent authorities.

If the plans were approved pursuant to this Article, no main amendment shall be made to the plans without the prior written consent of the Owner.

Title 3: General Conditions of the Contract

9. Making Improvements

The Musateh shall, on its own liability, carry out all construction and improvement works and shall alone bear the expenses thereof.

No improvements shall be initiated on the property related to the Project without the written consent of the Owner and the competent authorities on the plans, and the Musateh shall have obtained the required licenses and permits for the establishment of the project.

All the construction plans, permits, licenses and approvals necessary for the Project shall be the responsibility of the Musateh and at its own
expense.

The Musateh shall verify that all the construction works related to the
Project and all the works, materials, equipment, systems and procedures related thereto are compatible with the plans approved by the Owner and by the competent authorities.

The Musateh shall be responsible for the care of the property and all the
activities carried out therein throughout the Musataha period. The Musateh shall make necessary arrangements inside and around the property concerning safety, environment, surety, fire protection, security, transport, supply of goods, materials, machines and equipment, control of pollution, labour relations and public services inside the property including access to the latter.

The Musateh acknowledges that it has inspected the property and its surrounding areas and that it is aware of the nature of the weather, groundwater and the general conditions of the property, nature of the land, soil, infrastructure, form and nature of the property and the nature of the designs, works and materials necessary for the implementation of the Project.

The Musateh shall provide the Owner with a copy of all the plans, designs, licenses and approvals related to the Project after their approval by the competent authorities.

The Musateh shall terminate all the construction works related to the construction of the Project within a period not exceeding twenty-four months from the date of signing this Contract. The chronological order stated in Title 4 (if any) shall be respected unless the Owner agrees in writing to extend this period for reasons deemed reasonable. Noncompliance with the specified dates shall be considered as a reason to
terminate the Contract.

The Musateh shall not, in any case:
a. Establish residential buildings for the staff and workers at the property, unless the activity permitted under this Contract requires the same, pursuant to the consent of the Owner and the competent authorities.
b. Store any materials or throw any waste or trash outside the
property.

Title 3: General Conditions of the Contract

10. Project's Infrastructure

The Musateh shall be responsible, at its own expense, for the establishment, installation and maintenance of the infrastructure from the boundaries to the inside of the property and for operating the same pursuant to standards approved and accepted by the Owner and the competent authorities. These infrastructures include, without limitation, the communication systems (by virtue of the Laws in force), the roads, electric lighting and their electrical installations, irrigation system, drainage system, liquid and solid waste treatment and all installations and other infrastructure in addition to those necessary for the transport of persons and vehicles and for the provision of services and benefits to the Project.

Title 3: General Conditions of the Contract

11. Disposal of the Musataha Right

The Musateh may (provided that the Musataha right is for a period exceeding ten years), dispose of the Musataha right for a period not exceeding the Musataha period agreed upon in this Contract including its mortgage, throughout the Musataha period, provided that the disposal does not harm others or is not contradictory to the relevant laws, regulations and resolutions.

The Musateh shall, immediately upon entailing any other rights for others on the property, notify the Owner thereof through the address set forth in the Contract and provide it with a copy of any contracts or papers made in this regard.

Title 3: General Conditions of the Contract

12. Preservation of the Environment

The Musateh undertakes to adhere to all the laws, rules and regulations related to the environment and in force at the Emirate of Abu Dhabi.

Chapter 2

Title 3: General Conditions of the Contract

13. Exploitation and Transfer of Improvements

The Musateh shall have the right, within the Musataha period, to possess the buildings erected by him on the property and may benefit from it and the Project, as well as exploiting the Project and lease the same for the purposes agreed upon in this Contract.

The Musateh shall be liable for all the costs or expenses related to the improvements and /or the exercise of any rights by the Musateh related to the Musataha right under this Contract.

Upon expiry of the Contract period, the provisions of Article 785 and Article 1360 of the Civil Transactions Law shall be applied.

In the event of expiry or termination of the Contract with a mortgage on the Musataha right, the creditor mortgagee shall have the right to implement the provisions of the mortgage contract signed by it and the Musateh as allowed by the laws in force. It shall also have the right to find another Musateh to complete the Contract term, provided that the Owner and the competent authorities agree upon the same. The new Musateh shall replace the Musateh in all contractual and non-contractual rights and obligations towards the Owner and the financier. The Owner shall cooperate with the creditor mortgagee to implement the provisions of this paragraph in the event of application thereof and conclude a contract with the new Musateh. In case of impossibility to conclude a contract with a new Musateh for any reason whatsoever, the rights of the financier shall be transferred to the compensation amount due to the Musateh pursuant to the provisions of this Contract.

In the event of termination or cancellation for any reason whatsoever without any mortgage on the Project, the Musataha right arising from this Contract and all the Musateh's rights, ownership and use of the property, the Project and the imrovements, as well as all the other granted Musataha rights and rights arising under this Contract shall be automatically returned to the Owner and shall become its exclusive property thereof.

Title 3: General Conditions of the Contract

14. Undertakings of the Owner

The Owner undertakes to the Musateh the following:
a. The Musateh shall have the right, without prejudice to the provisions of this Contract, to possess the property and the Project in a quiet and stable manner throughout the term of this Contract without any interference from the Owner or its representative.
b. The Owner shall, upon the Musateh's request and at its own expense, take all necessary actions against third parties to enable the Musateh to exercise its rights as a Musateh on the property.
c. The Owner undertakes to notify the financier of any warnings or notifications between it and the Musateh. It recognizes the right of the financier to replace the Musateh in order to comply with any of the Musateh's contractual obligations.

Title 3: General Conditions of the Contract

15. Undertakings of the Musateh

The Musateh undertakes to the Owner the following:
a. To pay the Musataha fees on time and in the method specified in this Contract.
b. To register this Contract at the Properties Registrar in the Emirate of Abu Dhabi as a Musataha right and a real right as known and indicated in Law No. (19) of 2005 concerning Real Estate Property and its amendments, and Law No. (3) of 2005 concerning the regulation of Real Estate Registration at the Emirate of Abu Dhabi, its executive regulations and any other legislation issued later.
c. To be holder of all necessary licenses of the Project, provide all necessary data and applications, and pay all due fees.
d. To preserve the property and the Project, at all times during the Musataha period, in a good, safe and clean condition and to maintain them at its own expense.
e. To carry out the following, at all times throughout the period of this Contract and at its own expense:

Make all changes, improvements or repairs in the property and the Project in accordance with all current or future legislations and standards.

Take into account all the legislations and standards related to the property and the Project and adhere to the same.

Compensate the Owner and bear any liability, loss, damages, penalty or claim resulting from the failure of the Musateh to comply with the requirements of this Article or the whole Contract and fulfil the same in a way exempting the Owner and the property of this liability.

f. Not to use the property and the Project for an illegal purpose or for a purpose other than that allowed under this Contract.
g. To maintain and repair the parts of the property, the improvements and the Project throughout the Contract term and preserve the same in a good condition, particularly all the machines, equipment, installations and their items or those erected therein or thereon at any time during the term of the Contract.
h. To exert due diligence to verify that the other parties or persons having exclusive possession of any part of the Project maintain, repair and preserve the parts in their possession in a good condition.
i. To comply with all current or future legislations that affect or are related to the use of the property and all legislations that may be issued or imposed by any authority having the right of jurisdiction or authority on the users of the property and the improvements and to compensate the Owner for any damages arising from the violation of these obligations.
j. To allow the Owner, its agents, engineers, contractors and employees, at all reasonable times, to enter the property and the Project and examine the same in order to verify the compliance with the provisions of this Contract by the Musateh.
k. To abide by all precautionary measures related to fire and safety and the provision of safe storage facilities of any chemical materials, flammable liquids, acetylene gas, alcohol, oil or volatile explosive materials that may invalidate any insurance cover - required to be obtained under the provisions of this Contract - or may reduce the same in any form whatsoever.
l. To deliver the property and the improvements thereof to the Owner upon expiry or termination of this Contract without any material or legal impediments or burdening rights (such as mortgage and other). The Owner shall have the right to request the Musateh to remove all improvements and hand over the property in its initial condition upon taking over and at the expense of the Musateh upon expiry or termination of the Contract.
m. To insure the property and the Project and to keep the insurance under the provisions of this Contract.
n. To create a separate account for the Project showing accurately the total cost of the Project, with the relevant documents proving all the costs and expenses spent by the Musateh in the establishment of the Project.

Title 3: General Conditions of the Contract

16. Other Obligations on the Musateh:

The Musateh shall:
a. lf the Musateh is a juristic person, it shall be committed to have taken all internal procedures of the company or establishment (pursuant to the legal form of the Musateh) and the legal requirements allowing it to enjoy the Musataha right, conclude this Contract and meet the obligations thereof in a way compliant with the constituent documents, rules, regulations and laws in force.
b. Implement the Project, the improvements and all the works at the property:

At its own expense and liability;

In conformity with the plans approved by the Owner and the competent authorities and all legislations and standards;

In a sound and professional manner using materials of good quality;

Pursuant to the requirements and principles of good faith.

Title 3: General Conditions of the Contract

17. Compensation

With the exception of cases where any liabilities, claims, losses, compensation or expenses are the result of an act, failure or negligence to commit an act by the Owner or any of its authorized representatives, the Musateh shall compensate the Owner, in all other cases, and discharge it from all obligations, claims, losses, damages and expenses resulting from the occupation and use of the property by the Musateh, especially, for example but without limitation, any commitment, claim, loss, damages or expenses resulting from the following circumstances:
a. Death or injury of any person, including the Musateh, or any person acting as employee, agent, worker, supplier or visitor to the Musateh or any other person or because of any damage or injury occurring to the persons or properties, including the properties of the Musateh or any person acting as an employee, agent or visitor of the Musateh, as a result of any reason whatsoever, during the presence of this person or properties on or near the property, or any reason related to the property, the Project or the personal properties located on the property.
b. The cost of establishment of the Project and all claims submitted by any contractor appointed by the Musateh or any supplier of goods or materials used in the Project, shall be borne by the Musateh without any liability on the Owner.
c. All fines imposed by any governmental entity on the Owner or the Musateh as a result of the establishment or use of the Project in a way that is in contradiction with the legislations or as a result of any violation.
d. Any claim against the Owner or the Musateh by others stating that the design or implementation of the Project or activities exercised violate their legal rights or cause damage, harm or inconvenience.

The compensation obligations incurred pursuant to this Article shall remain valid even after expiry or termination of this Contract.

Title 3: General Conditions of the Contract

18. Insurance

The Musateh shall, at its own expense, provide a comprehensive civil liability insurance coverage in an expanded manner under the joint name of the Musateh and the Owner, throughout the period of the Contract, issued by an insurance company licensed to issue liability insurance policies in the United Arab Emirates, provided that it is approved by the owner, to insure the Musateh and the Owner jointly against any loss or obligation related or resulting from the occupation and use of the property and the Project by the Musateh under this Contract, with amounts not less than the following:
a. AED One million (1,000,000) per claim for injury or death of one person or more without any limit to the number of claims.
b. AED One million (1,000,000) per claim for damage caused to any property of others without any limit to the number of claims.

The Musateh shall preserve, at its own expense and cost, the insurance cover against fire and the expanded insurance cover of the Project in the joint name of the Musateh and the Owner. The Musateh shall review these coverages every year so that the aforesaid insurance covers the whole replacement value of the Project. All the proceeds resulting from the insurance coverage against fire and the expanded insurance coverage that become due at any time throughout the period of the Contract as a result of damage of any part of the Project, shall be paid to the Musateh and shall be used to cover the Musateh's costs for the repair of the damaged part of the Project in the method required in the Contract to return it to its initial condition.

The Musateh shall verify that all the construction contractors who carry out the improvement works on the property are committed to the following:
a. Providing an insurance cover for all the risks of the Contractor in the joint name of the Musateh, the Owner and the Contractor to cover the total cost of the construction works to be undertaken by the Contractor.
b. Providing an adequate insurance cover for civil liability.

The Musateh shall pay all insurance premiums and fees of all insurance policies to be made under this Contract immediately on the due dates of these premiums and shall provide the Owner with a proof of payment of these premiums in a timely manner. The Owner shall be provided with copies of all the insurance policies that the Musateh shall conclude or with certificates thereof. The Musateh shall adhere, at its own expense, to all the requirements related to the property and the Project required by any insurance company, as a condition for the issuance, renewal and maintenance of any insurance cover that the Musateh shall conclude under this Contract.

Every insurance policy that the Musateh shall conclude under this Article, shall include a provision that it shall not be cancelled, amended, nor renewed or its insurance cover reduced for any reason except after giving prior notice of thirty (30) days to the Owner. All the insurance policies issued under this Article shall be made by companies approved by the Owner and such approval shall not be refrained from being granted for any unreasonable justification.

The commitment of the Musateh to issue and maintain the insurance coverage under this Article shall not exempt it from any other obligations under this Contract.

Chapter 3

Title 3: General Conditions of the Contract

19. Termination and Compensatory Measures

Without prejudice to the provisions of Clause 19.2 of the Contract, the Owner may terminate this Contract, recover the property or exercise any other compensatory measure granted to the Owner under Law upon violation of any of the Contract conditions by the Musateh unless:
a. The Owner addresses to the Musateh and the financier, if any, a written notice of the violation of the Contract's conditions by the Musateh and specifies the period required for the rectification of such violation pursuant to Article 23.1.
b. The violation by the Musateh or the financier, if any, has occurred and still continues on the date of the notice set forth in Clause (a).
c. The Musateh or the financier, if any, fails to rectify such violation.

The Owner shall have the right to terminate this Contract with immediate effect by means of a written notice addressed to the Musateh and the financier, if any, without the need for a court ruling in the following cases:
a. If the Musateh or the financier, if any, fails to pay any Musataha fees (60) days from the due date of the latter pursuant to this Contract.
b. If the Musateh fails to complete the construction works pursuant to Clause (9.8).
c. If the Musateh was declared bankrupt through a final judgment rendered by a competent court or was dissolved, liquidated, exercised works under receivership or in the presence of a trustee or manager in favour of its creditors, a receiver was appointed on an essential part of its monies / assets, when this Contract is automatically terminated upon occurrence of any of the previous cases without the need to a notice, a court order or any other action by both parties.

lf this Contract was terminated under the above-mentioned clauses, the Owner shall have the right to confiscate the full value of the Musataha fees paid to the Owner before the date of termination.

Compensation for Termination: If the Owner, at any time before expiry of this Contract, terminates the latter without any violation by the Musateh, the Owner shall compensate the Musateh with a value calculated as follows:
a. The cost of improvements (the Musateh shall prove the cost of the improvements through the account of the Project, registers and documents that the Musateh shall preserve).
b. In case of the presence of a creditor mortgagee and the Project is valid and is still achieving profits, the commercial value of the Project shall be added to Clause (a) above, provided that it is not less than the profits estimated for the three years following the termination.
c. Deduction of an amount equivalent to the consumption of the improvements, calculated pursuant to the international accounting standards prevailing at the time, plus the demolition cost.
d. The compensation set forth in this Article shall not be paid to the Musateh without the latter obtaining an acquittal from the financier.

Upon expiry of the Contract or in case of its termination, the Owner shall have the absolute right to enter into any other contract or agreement or grant any right to others concerning the property, Project and improvements.

The Musateh shall, during the implementation period of the Project and in a periodic manner, provide the Owner with the documents on the cost of establishment of the Project and the improvements.

Title 3: General Conditions of the Contract

20. Right of the Owner to address Violations

If the Musateh fails to remedy any violation or breach in its obligations - under one of the provisions of this Contract and apart from the obligations of payment of the Musataha and construction fees - within thirty (30) days from the date of receipt of the written notice by the Owner stating the details of violation or breach, the Owner shall have the right to remedy the aforesaid violation or breach at the expense of the Musateh.

The Owner shall have the right to extend the period of remedy of the violation or breach set forth in Clause 20.1 above for another similar period (30 additional days).

If the Owner, at any time, and as a result of a violation by the Musateh, pays any amount or takes any action necessitating the payment of an amount of money related to this Contract, the amount paid by the Owner shall be considered due immediately from the Musateh to the Owner at the time of payment thereof. If the Musateh delays in the payment of this amount, a delay fee of nine percent (9%) shall be paid annually (calculated on a pro rata basis on the amount paid by the Owner from the date of payment by the Owner until the Musateh pays this amount to the Owner.

Title 3: General Conditions of the Contract

21. Notices

Every notice addressed under this Contract may be notified, sent or deposited through registered mall or sent by fax to the addresses of both parties stated in the beginning of this Contract or to any other address notified to both parties by each other in writing from time to time for this purpose. In the absence of a proof of receipt on an earlier date, the notices addressed under this Contract shall be considered delivered
as follows:
a. a.On the day following the delivery by hand (including for this purpose, delivery
b. through a correspondent against a receipt); or
c. Twenty-four hours (24) from the date of sending by fax; or
d. Seven (7) days from the date of sending by registered mail.

The notified party shall, within seven (7) working days from the date of receiving any notice or order issued, given or addressed under any legislation, notify the other party by giving it full details and showing the notice. Both parties shall, within the period specified in the notice, take all necessary actions to implement the provisions of the notice or order and submit any objection or clarification in its regard, each in its own concern, provided that in case such notice or order was issued because of any disposal, failure or violation by the Musateh to any of its obligations, the Musateh undertakes to compensate the Owner for all the costs and expenses spent by the Owner concerning the implementation of the obligations of the Owner under this Article.

Title 3: General Conditions of the Contract

22. General Provisions

The preamble set forth in this Contract shall form an integral part thereof and shall be interpreted accordingly.

If the due date of the Musataha fees (pursuant to the definition) or any amount to be paid under this Contract does not fall on a working day,the Musataha fees or any amount due under this Contract shall be due on the first working day following the due date of the Musataha fees or any amount due under this Contract.

If the Musateh is a natural person, the Musataha right shall be registered in the names of the inheritors, in case of the Musateh's death, after submitting a legal notice to the Owner proving their inheritance of the Musateh and pursuant to the provisions of the Laws in force. This Contract shall be binding to the inheritors.

If any provision of this Contract becomes void or unenforceable, this shall not affect the interpretation, application or validity of any other provisions stated in this Contract.

The failure or delay of either party in requesting the other party to implement any provision of this Contract, shall not mean the waiver of the Party of his right and shall not prevent him from requesting the other party, at a later time, to meet its obligations under the Contract. In the event of a waiver of such right, the waiver shall be explicit and by means of a written notice to the other party.

Any amendment to this Contract shall not be considered valid unless made in writing and signed by both parties.

Thus, both parties agree and undertake to take all necessary steps for the legalization of the provisions stated in this Contract.

Title 3: General Conditions of the Contract

23. Dispute Settlement

In the event of any disagreement or dispute due to, under or related to this Contract between the Owner and the Musateh, such dispute shall be referred to the competent Courts in the Emirate of Abu Dhabi.

Title 3: General Conditions of the Contract

24. Applicable Law

This Contract shall be subject to the Laws of the Emirate of Abu Dhabi and the United Arab Emirates.

In witness whereof, both parties signed this Contract through their duly authorised representatives on the date stated in the beginning thereof.

In the Name and on behalf of the Owner (First Party)

In the Name and on behalf of the Musateh (Second Party)