1. General Terms and Conditions

• Saudi Fransi Leasing Finance Company shall be committed to waiving all the Client’s financial obligations in the event of death or permanent disability, God forbid, in accordance with the controls, procedures and instructions of the Central Bank (SAMA).

• VAT shall be applied to financing services at a rate of 15% according to the regulations of the Zakat, Tax and Customs Authority.

2. Amendment to Terms and Conditions

• The Company shall be entitled to amend these terms and conditions at any time and notify the Client of this change within a period of not less than 30 days from the effective date of the amendment, through one of the Company's approved digital channels or through a text message to his/her mobile phone. The Company shall allow the Customer to object in the event that the Customer does not agree to this change after receiving the notification through one of the approved digital channels, and due diligence shall be done in responding to customer objections.

3. Financing pledges and installment payment methods

• The Client shall undertake to pay the monthly installments shown in the schedule of lease payments contained in Appendix No. (1) of the unified contract issued by the Saudi Central Bank (SAMA) on time.

• The Client shall undertake to issue a Promissory note in favor ofSaudi Fransi Lease Finance Company, provided that it is onlyexecuted at maturity.The Client has the following options in paying the financing installments:

o SADAD service

o Quick transfer to the finance account

o Payment at one of the Company's branches (POS)

4. Annual Percentage Rate

• The discount rate at which the present value of all installments and other payments due from the beneficiary, which represents the total amount payable by the beneficiary, shall be equal to the present value of the installments of the financing amount available to the beneficiary on the date on which the financing amount (or the first payment thereof) is available to the beneficiary, which is calculated according to the formula stipulated in the instructions of the Saudi Central Bank (SAMA)

5. Financial Responsibility

• The Client shall undertake to ensure the ability to bear all current and future financial obligations before applying for financing. Failure to do so may result in a negative credit history in his/her name and may affect the possibility of applying for any of the financing products with Saudi Fransi Leasing Finance Company or any other financing entity.

6. Failure to fulfil financial obligations:

• If the Client fails in fulfilling his/her financial obligations based on the installment payment schedule contained in Appendix (1) of the unified contract issued by the Saudi Central Bank (SAMA), the Company shall be entitled to take legal action as it deems appropriate and in accordance with the laws and regulations of the Kingdom of Saudi Arabia.

7. Lease Finance Product Terms and Conditions

• The product offered by the Company is the “lease-to-own”; product or in simple words a financing lease contract.

• The leased asset shall remain under the ownership of the Company until the contract is paid in full.

• The value of the contract consists of the financing amount, insurance and profits throughout the lease period.

• Ownership of the leased asset shall be transferred to the Client once the contract is paid in full.

• It is the Client’s responsibility to ensure that all requirements related to the transfer of assets are completed, and to submit a formal request for transfer of ownership of the leased asset immediately after full repayment of the indebtedness.

• The Company shall reserve the right to charge fees or continue to collect daily rental fees from the Client for non-transfer of ownership after full payment of the lease, and the mechanism for calculating the daily rent shall be as follows:

o The value of the last rental payment due / the number of days of the month in which the contract was terminated * the number of days of delay = the value of the rent

• The Client can assign the lease contract or transfer any of his rights and obligations to another person provided that he/she is qualified, meets all the Company's requirements, and has received the Company's approval to do so. The Company must evaluate and conduct the necessary due diligence and documentation in order to transfer or assign the lease contract.

• Upon payment of all monthly amounts and when the final payment amount is due, the Client must exercise one of the following options:

o Rescheduling the last payment for additional profit, insurance and processing fees,

o Pay the final payment in full and then request the transfer of ownership by completing all the necessary transfer requirements,

o Return the asset to the company: The company may liquidate the asset by selling the leased asset to fulfill its rights, and the Client shall be obligated to pay any amounts due to the Company.

• The Client can purchase the asset and transfer ownership to his/her

name even before the maturity of the contract, by early payment of the contract and compliance with all requirements related to the transfer.

• If the Client fails to pay the monthly installments for a period of three consecutive months or five separate months for a period of (7) working days or more for each payment from the due date, the Company shall send a default notice to the Client indicating the Customer’s delay and informing him/her of the obligation to pay immediately. In the event that the Client does not correct the default within the period granted in the default notice, the Company shall be entitled to consider this case as a case of breach, and the Company shall reserve the right to recover the leased asset and fulfill its rights in accordance with the controls And the instructions of the Saudi Central Bank (SAMA).

• If the Client wants to release an asset recovered by the Company, he/she can do so within 15 days of redemption and will be required to pay a recovery fee. The Client shall be responsible for paying any fees or other expenses incurred by the Company during the return of the leased asset.

Fee Recovery Fees:

• The Company shall reserve the right to request any information or document from the Client which is considered important from the Company's financial or organizational point of view.

• The Client shall be obligated to pay the deductible value charged by the insurance company to the Company (if any) in the event of total and partial destruction for a reason due to the Client according to the report of the competent authority.

• It is the Client’s responsibility to maintain and always keep assets in good working order. All periodic maintenance and repair work must be carried out according to the schedule provided by the manufacturer or authorized dealer. The Customer shall assume any liability arising from non-compliance with service and maintenance requirements without any liability on the Company.

• The Client may not allow any other individual to use the asset unless the written consent of the Company is obtained.

• The Customer shall accept full financial and legal responsibility for any consequences arising due to allowing the vehicle to be driven by any unauthorized individual and/or minor. Any claims thereof, including but not limited to the cost of insurance to the bank or insurance company, repair fees, third-party insurance fees, any government fines, etc., shall be the sole responsibility of the Client.

• The Client shall bear all traffic fines and government fees for not renewing the driver’s license or registering the car.

• The Company shall be entitled to collect 1% of the financing amount or SAR 5,000 whichever is lower as a processing fee on the finance amount.

• The Company shall be entitled to charge any value-added service chosen by the Client.

• In case of total loss, the Client shall be responsible for paying the difference between the finance and insurance claim due based on the Client’s liability for the accident in accordance with the total loss calculation guidelines from the Saudi Central Bank (SAMA).