RAK Warehouse Leasing LLC

RAK Warehouse Leasing LLC Hand Book Year April 2011 Version I 0 P age RAK WAREHOUSE LEASING HANDBOOK 2011

Table of Contents 1. Introduction.3 1.1 About us.....3 1.2 Affiliations....3 1.3 Contact us...3 2. Leasing...4 2.1 License activity.....4 2.2 Submission of renewed license copy..4 2.3 Handover of warehouse property.....4 2.4 Usage of warehouses units.....4 2.5 Termination of Lease agreements & contracts...4 2.6 Penalty of early termination of lease...4 2.7 Procedures of returning the property...5 2.8 Rent incremental... 5 2.9 Notice Period...5 2.10 3. Communication.. 5. 3.1 General communication..5 3.2 Invoice s deliveries..5 3.3 Communication by operation personnel..5 4. Accounts / Payments.....5 4.1 Lease Rent Payment..5 4.2 Notice period payment..5 4.3 Early termination penalty..6 4.4 Rent Renewal..6 4.5 Electricity & water bill payments..6 4.6 Default Notice..6 4.7 Termination notice..6 4.8 Fines and penalties..6 4.9 Disconnection of utility services..6 5. Operation al Rules.6. 1 P age RAK WAREHOUSE LEASING HANDBOOK 2011

5.1 Modifications in warehouse unit..6 5.2 Approvals of modifications..7 5.3 Re instatement of warehouses..7 5.4 Usage of warehouse property..7 5.5 Penalties and fines..8 5.6 Keys of warehouse units..8 5.7 Security personnel..8 2 P age RAK WAREHOUSE LEASING HANDBOOK 2011

1 Introduction 1.1 About us RAK Warehouse Leasing LLC (RAKWL) was constituted in year 2008, January. This is closely related with RAK INVESTMENT AUTHORITY (RAKIA) to provide facility of warehouses in Free Zone and Non Free Zone customers The basic vision is to provide warehousing facility to all kinds of goods. We allow to manufacturing units, processing units, packing & repackaging units of all categories of goods. Advantageous features of RAK Warehouse Leasing LLC 1.3 Contact us Our Main office address: 4 th floor RAKIA HQ Office Building, Jazeerah al hamra, Ras al Khaimah, United Arab Emirates Postal Address: PO box 33748, Ras Al Khaimah, United Arab Emirates Telephone Number: 00971 7 243 4346 Fax Number: 00971 7 244 2254 Website: Contact detail: www.rakwarehouse.com Low business setup & operating cost in Ras Al Khaimah a) Information info@rakwarehouse.com 07 2434346 Ready to use Processing / Manufacturing units Civil Defence approved units Availability of ample of power / water / gas Excellent opportunity for SME s Free parking space, roads, nearby labour & executive accommodation Allowed to build customized office in the warehouse units We strive to provide quality space at affordable rental rates. We value customer s needs, satisfaction and work with them to help their businesses grow. We believe a mutually beneficial relationship with our current customers and our potential customers will reap equal benefits for our shared successes 1.2 Affiliations b) Sales binal@rakwarehouse.com 050 6271932 c) Accounts shilpa@rakwarehouse.com 050 4329089 prerna@rakwarehouse.com 050 1992573 shalet@rakwarehouse.com 050 4329088 d) Manager ramsawant@rakwarehouse.com 050 4877932 e) Operations Mahesh 050 3712136 Rajesh 050 2879401 Emergency Contact numbers Civil Defense 997 Ambulance 998 Police 999 RAKIA Patrolling security 055 8648695 RAK Warehouse Leasing LLC is mainly affiliated with RAK CERAMICS and RAK INVESTMENT AUTHORITY (RAKIA) which is one of the government bodies. 3 P age RAK WAREHOUSE LEASING HANDBOOK 2011

2 Leasing Leasing is a process by which a firm can obtain the use of a warehouse facility for which it must pay a series of contractual, periodic, payments. The lessee is the receiver of the services or the assets under the lease contract and the lessor is the owner of the assets. The relationship between the tenant and the landlord is called a tenancy, and can be for a fixed (called the term of the lease). The consideration for the lease is called lease rent. We have identical sized warehouses (311.25 sq meters), It can be leased in multiples of 311.25 sq meters. Basic requirements: 1) Trade License copy (issued by RAKIA, Ministry of Economic department) 2) Passport copy of Owner /partner / shareholder of the company 3) Payment (in cheque / cash) 2.1 License Activity Any change in license should be informed as it s occurred. 2.3 Handover of warehouse property Once lease contract is signed by both parties then Warehouse property will be handed over to the lessee. Lessee has to check the physically the property / non removal assets such as covered Warehouse Unit with 15 KVA electricity connections, Electrical fittings and fixtures, whole fire alarm system and parking in front. Lessee has to sign and give copy to the operation department and one copy to be retained by the lessee. This copy will be used at the time of returning the warehouse property. 2.4 Usage of warehouses units To maintain in good and condition the interior of the Leased Property and the Lessor's fixtures therein and to properly repair or replace such of them as may become worn out, lost, unfit for use or destroyed. 2.5 Termination of Lease agreements & contracts The customers are permitted to do the storage the material / do the processing activity / do the manufacturing as per the activity mentioned on the in the license. 2.2 Submission of renewed license copy Customer should possess the license which is issued by RAKIA, RAK economics department) It is compulsory to give license copy to warehouse every year. AED 1000/ will be charged as penalty incase of non submission of License copy within 10 days from renewal date. In the event the Lessee shall commit a breach of the terms and condition of this Contract, rules and regulations issued by the competent Authority, to which the Leased Property is subject to or commits any default particularly the Lessor shall have the right to terminate the Contract and demand for immediate eviction of the Lessee, and repossess the Leased Property. 2.6 Penalty of early termination of lease In the event that the Lease is terminated at the option of the Lessee within the First Three (3) years 4 P age RAK WAREHOUSE LEASING HANDBOOK 2011

of the contract, the Lessee shall be liable for Three (3) months lease rent as penalty. 2.7 Procedures of returning the property The Lessee shall at the expiration or sooner determination of the Lease Contract peacefully handover the Leased property including at the option of the Lessee, any additions to the Leased Property and all other improvements thereto except if the Lessor opts to require the demolition of the additions to the Leased Property and all other improvements. The demolition shall be without material injury to the Leased Property and at the expense of the Lessee. The Lessee has to take the clearance letter from the lessor. 2.8 Rent incremental The Annual Rent Amount shall be subject to review every two (2) years from the effective date, and more specifically two (2) months before the end of each two year from the effective date, as per the prevailing market value subject to maximum of 15%. 2.9 Notice Period In the event of early termination of the lease at Lessee s option, the Lessee shall serve the Lessor with a three (3) months prior notice. If the Lessee fails to provide the prior notice, Lessee has to pay three month lease rent as a penalty. 2.10 Insurance During the duration of the Lease Contract, the Lessee shall insure and keep insured every item of an insurable nature thereon including all fixtures and fittings with an insurance company acceptable to the Lessor against any loss or damage by fire and such other risks as the Lessor may deem necessary in a sum equal to the cost of reinstating and replacing the same. The Lessee shall secure a broad form Comprehensive coverage policy of public liability insurance against loss or liability caused by or connected with the Lessee s occupation and use of the Leased Property with a combined single limit for each occurrence in an amount to be agreed by the Lessee and the Lessor relative to the loss incurred by Lessor. Copy of the insurance policy shall be furnished to RAK Warehouse Leasing 3 Communication 3.1 General communication Lessor will be communicated on the lessor s contact detail mentioned in lease agreement such as email ID s, Mobiles numbers and land line numbers. Tenants have to give the detail of their contact detail as per their hierarchy or Management levels as per annexure No 01 3.2 Invoice s deliveries Invoices will be delivered through email or by hand delivery as per convenience of the customer. 3.3 Communication by operation personnel Operation personnel will communicate through Telephone or physical/hand delivery. 4 Accounts / Payments To help the organization to obtain, verify, and record information that identifies each customer who has leased warehouse, has to pay lease rent in time. Tenants have to co operate with accounts department and pay their money in time. 5 P age RAK WAREHOUSE LEASING HANDBOOK 2011

4.1 Lease Rent Payment The total Annual Rent Amount shall be paid in one lot in advance (post dated cheques) upon signing the Contract. The cheques would be credited on clearing. 4.2 Notice period payment Customer has to serve three (3) months prior notice if no such notice is given then the customer has to pay the rent equivalent to the notice period. 4.3 Early termination penalty Early termination (within first 3 years) of the lease at the customer s option, customer shall serve RAKWL with a three (3) months prior notice. Three months rent has to be paid as penalty. 4.4 Rent Renewal At the beginning of the First day of each contractual year the lease gets renewed, the same has to be paid in one lot in advance (postdated cheque). 4.5 Electricity & Water bill payments Month on month bills will be generated on the basis of meter, fixed at each warehouse. The bills will be distributed to the respective customers. 4.6 Default Notice In case of non payment of lease rent, electricity & water charges and other fees, lessor will give default notice to the customer. 15 days will be given to pay all outstanding. And in failure of nonpayment after receiving the default notice, Lessor will give Termination Notice. Lessor has right to terminate the lease contract in case of non payment of lease rent, utility bills and other fines & penalties. Termination Notice will be send to the tenants in case of non payment after receiving Default Notice. 4.8 Fines and penalties If the yearly lease rent of the land or any other charges pertaining thereto is not paid on the due date, an amount of AED 1,000 (One Thousand Dirham) per month shall be charged as a delay penalty at the option of RAKWL. 4.9 Disconnection of utility services Utility services extended to the customer would be disconnected if any payments due to RAKWL are not made within the due date as mentioned on the bill. 5 Operational Rules and procedures 5.1 Hand over of warehouse property Hand over certificate is vital to the customer. This will be referred while end of contract, termination of lease and while returning back the property. Specimen of Hand over Certificate is in annexure no 002. 5.1.1 Hand over certificate will be given to the customer only after signing lease agreement and complete payment 5.1.2 Hand over certificate contents the inventory of warehouse such as electrical connection, electrical fittings, fire alarm system and etc. Customer has to check the all inventories and facilities are good and in working condition. 4.7 Termination notice 5.1.3 Sales department will issue the hand over certificate to the customer in triplicate (1. Customer copy, 2. Sales file, 3. Operations file) 6 P age RAK WAREHOUSE LEASING HANDBOOK 2011

5.1.4 Hand over certificate has to signed and returned back. 5.1.5 After opting handover certificate, the customer can start using the warehouse property for the operations. 5.2 Modifications in warehouse unit Modifications in warehouse, additional construction in warehouse is allowed with prior approval from RAK Warehouse leasing and RAKIA. Customer can modify the warehouse if there is requirement of modification for ease in their operation / storage. 5.2.1 Offices and separate stores area / units can be built with prior approval. 5.2.2 We prefer, office building should be constructed with brick wall or fire rated gypsum boards. 5.2.3 Customer has to submit the application in duplicate along with modification layout/ drawings. Customer has to take approval on the application letter and drawings from RAKIA or RAKIA operation departments. 5.2.4 Operation personnel can check the approvals at any time. 5.2.5 Customer should not damage the warehouse property as well as the property of neighboring customers. If incase of damages, customer is liable for the same. 5.3 Approvals for modifications All modifications in the warehouse units should be approved. Approvals should be taken prior to commence the work. Approvals can be opted from RAKIA Operation Manager and RAKWL s Commercial Manager. Any operation department personnel from RAKIA or RAKWL has right to check the work at any time. It is compulsory to the customer to restore the changes done in the warehouse units while leaving, cancelling lease agreement and terminating the lease agreement. Reinstatement agreement has to be signed by the customer along with application for modification in the warehouse units. This is mentioned in lease agreement clause no. in the main lease agreement. Specimen of Reinstatement agreement in annexure No 003 5.4.1 This agreement is compulsory if any customer want to do the any changes in the warehouse units 5.4.2 Customer has to required changes to restore the warehouse unit as it was handed over. 5.4.3 While returning back the warehouse unit, RAKWL operation personnel will give the clearance to return. 5.4.4 Incase of restoration work then Customer has to pay the lease rent till the date of return back of the warehouse. 5.4.5 Incase of modified work forwarded to new customer then new customer has to sign the reinstatement agreement for forwarded property modified. 5.5 Usage of warehouse property 5.5.1 Customer has to maintain in good and condition the interior of the Leased Property and the Lessor's fixtures therein and to properly repair or replace such of them as may become worn out, lost, unfit for use or destroyed. 5.5.2 Customer is permitted only to use the warehouse for the purpose and activity which mentioned in the license. 5.4 Reinstatement of warehouses 7 P age RAK WAREHOUSE LEASING HANDBOOK 2011

5.5.3 If any different activity found other then licensed activity then customer has to take separate license for the additional activity. 5.5.4 Customer should not trade, manufacture and store the illegal goods and services in the warehouses. 5.5.5 Customers are not allowed to store the goods outside the warehouse premises. 5.5.6 Customers are not allowed to use the outside area / parking area of warehouse to do any activity such as packing, painting, finishing work and any kind of work which is directly related to manufacturing of the goods. 5.5.7 Storage of Gas cylinders, Air Compressor, coolers, air condition cooling units can be restored outside of warehouse unit in neat and tidy manner. 5.5.8 Customer should take care of their housekeeping, should take care of their industrial / operational wastage. Ensure that all waste of whatsoever nature is safely and properly disposed 5.5.9 Lodging in warehouse will not accepted at any time. Existence of cooking gas, beddings in the warehouse units are not permitted. 5.5.10 Due to safety constraints, Porta Cabin cannot be use as office and for other use. We don t allow porta cabin in the warehouse. 5.5.11 Misuse of fire hose pipe and the water is not accepted, there will be huge penalty. 5.5.12 The Customer shall strictly observe and abide by all applicable safety and security rules and regulations laid down by the Lessor for the security and better protection of the Leased Property and also to ensure that the employees of the customer and its visitors shall also strictly observe and abide by the same and shall keep the Lessor free and harmless from any disputes and interruptions pertaining to its occupation over the Leased Property. 5.6 Penalties and fines 5.6.1 Penalty and fine will be charged in the case of not compliance to RAKWL s rules & regulations and policies after the proper reminders and warming letters. Penalties and fines shall be levied in case of following circumstances; A) Unlawful power connection B) Over Usage of power (more than stipulated power) C) Poor house keeping D) Non compliance of safety and security measures E) Misuse of common toilets F) Actions which are not favor of environment and pollutions. 5.7 Keys of warehouse units It is very necessary and compulsory to keep one copy of key of main door of warehouse unit. This will remain in lock and key of RAKWL. This is pure to fight against fire or any mishap in warehouse unit. 5.8 Security personnel 24 X 7 Security personnel is available n the free zone for security checks and assist RAK Custom. 8 P age RAK WAREHOUSE LEASING HANDBOOK 2011

9 P age RAK WAREHOUSE LEASING HANDBOOK 2011