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Atkins Employee Car Ownership Scheme

Contents Page No.

1. Introduction ................................................................................................2

2. How Does the Scheme Work and who is Eligible?.....................................2

3. What is included in the Scheme? ...............................................................2

4. When is the first payment deducted from my bank account? .....................3

5. What is the contract duration?....................................................................3

6. What car can I choose?..............................................................................3

7. How much can I spend a month?...............................................................3

8. Can I fit accessories to my car? .................................................................4

9. Ordering your car and day to day management .........................................4

10. Manufacturers’ Price Increase...................................................................4

11. Process for delivery ...................................................................................4

12. When can I take delivery of my car?..........................................................5

13. Is all servicing and work covered by the scheme? ....................................5

14. Booking your car in for servicing and maintenance ...................................5

15. What if my car breaks down? ....................................................................6

16. What are my responsibilities for the car?...................................................6

17. MOT ..........................................................................................................6

18. Road Fund Licence and Tax Discs............................................................6

19. Motor Insurance ........................................................................................6

20. What is Early Termination Insurance (ETI) and how does it work? ...........7

21. Negligence ................................................................................................9

22. Theft of Vehicle .......................................................................................10

23. Business mileage ....................................................................................10

24. Leaving the company ..............................................................................10

25. The End of the Agreement ......................................................................10

26. Excess mileage .......................................................................................10

Appendix A BVRLA Fair Wear & Tear Guide .Error! Bookmark not defined. Appendix B ETI Insurance Policy .................................................................14

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Atkins Employee Car Ownership Scheme

1. Introduction Welcome to the Atkins Employee Car Ownership Scheme. This manual outlines the key points of the scheme’s operation and the rules governing it, and is also intended to act as a reference guide. The Employee Car Ownership Scheme, or ECO scheme, has been established to run alongside the company car arrangements, in order to give you the greatest choice possible whether you are a company car driver or not. The scheme offers you similar benefits to those delivered by a company car, delivering an extremely cost effective and hassle-free way to own and run a vehicle. By leveraging the company’s buying power, we are able to deliver extremely competitive rates of finance and substantial manufacturer purchase discounts for most new models of vehicle. In the following paragraphs, we outline the principal mechanisms of the scheme, however should you have any questions, the Atkins team at Zenith are here to help. Contact numbers are shown below. Kate Smith Account Manager Anna Lawson Account Executive Mark Broomfield Account Administrator Martin Sowden Account Administrator

Telephone 0113 220 9246 Fax 0113 256 4877 E-Mail atkins@zenith.co.uk

2. How Does the Scheme Work and who is Eligible? The scheme allows you to purchase your own car funded by a loan from Zenith. All permanent employees over the age of 21 with at least 12 months’ continuous employment are eligible for the scheme, whether you currently receive a company car/cash allowance or not. If you receive a cash allowance, you can use part or all of the allowance to make the monthly repayments. Other employees may be eligible for the scheme but will need prior written approval by their Business Unit Managing Director only. 3. What is included in the Scheme? As well as the purchase of the car, the scheme covers: • Routine maintenance and servicing • Breakdown cover • MOT • Early termination insurance

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4. When is the first payment deducted from my bank account?

The first payment is due by cheque. All subsequent payments will taken by direct debit from your own bank account, and will begin in the month following delivery. You are not required to make a deposit, however if you wish to do so, you can, and this will reduce your monthly payments. 5. What is the contract duration? You tailor the contract to suit your circumstances, but the maximum length of the contract will be four years. In addition, the minimum mileage will be 10,000 miles per annum and the maximum 35,000 miles per annum. 6. What car can I choose? Atkins has leveraged its buying power to negotiate substantial discounts with many manufacturers, so these will be the most attractively priced within the scheme. These manufacturers are Vauxhall, Saab, Audi, Volkswagen, Renault, Nissan, Peugeot, Honda, Citroen, Ford, Volvo, Landrover, Jaguar, Mercedes, Chrysler, Rover, and Toyota. You can, however, select any make and model of vehicle within your monthly limit. 7. How much can I spend a month? The maximum limit that you can spend per month is listed below, but you can spend as little as you want – it’s your money, so you should only spend what you can afford. These limits have been devised to create a flexible scheme.

Equivalent Grade Total Maximum Monthly Spending Limits Under the ECO Scheme

14 & under £400.00

15 £450.00 16 £550.00 17 £700.00 18 £900.00 19 £1500.00

• Motor insurance must be fully comprehensive (an original insurance

certificate or cover note must be forwarded to Zenith prior to delivery so that your vehicle can be taxed).

• Early Termination Insurance is automatically included in the monthly payment

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8. Can I fit accessories to my car? Any factory fit accessories may be fitted to your vehicle within your monthly payment limit. However, you should contact Zenith concerning non-factory fit accessories, as some restrictions apply. 9. Ordering your car and day to day management We have developed a website for the ECO scheme, in order to make the quoting and ordering and on-going management process as simple and streamlined as possible. You can do all your quotations on-line by visiting the ECO website within ‘blue pages’. A dedicated team is in place at Zenith to manage the Atkins scheme, in order to provide a smooth and efficient service to all employees joining the scheme. Once you have chosen the vehicle and specification you would like from the website, complete the order form, print it off, and then obtain the relevant signatures, (your director and HR manager), and send Zenith the completed order. Zenith will then order the required vehicle and you will be sent an order confirmation together with the estimated delivery date. When you receive the order confirmation if you have any queries or concerns about the order details please contact the Zenith Atkins Team. If you have not received an order confirmation within 72 hours of posting or faxing the form, please contact the Atkins team at Zenith. 10. Manufacturers’ Price Increase

In the rare event of a manufacturer’s price increase/decrease or a rate of interest change to Zenith occurring between the order and delivery of your car, the price quoted to you may change up or down. Zenith will notify you should this occur. In this event, your monthly repayment will increase/decrease. You have the right to cancel your order if you find the revised monthly payment unacceptable. You will receive an order amendment from Zenith detailing the changed payment. 11. Process for delivery You will be contacted to arrange delivery when the vehicle arrives in stock at the dealership. At this point, Zenith will issue the following documentation relating to the vehicle: • Loan Agreement (3 copies)

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• Maintenance Agreement (2 copies) • Buyback Agreement (2 copies) • Direct debit mandate • Copy of the early termination schedule and policy document These documents must be signed and returned within agreed timescales along with a cheque for the first payment and an original insurance certificate or cover note. Any delay in the return of this paperwork will result in the delivery of the vehicle being postponed. 12. When can I take delivery of my car? The time taken for delivery will be subject to the manufacturer’s lead-time for the specific car ordered. Zenith will advise you at the ordering stage when we anticipate that the car will arrive. You can call the Atkins team at Zenith or visit the website to check on the progress of your order at any time. When the vehicle comes into stock, Zenith will arrange a convenient time for the car to be delivered. When a vehicle is delivered, you should check the specification is correct. In the event of any query or defect to the car, you should contact Zenith immediately. It is your responsibility to ensure that you or an authorised representative are in attendance at the handover. 13. Is all servicing and work covered by the scheme? All routine servicing and maintenance required as a result of fair wear and tear is included in the Scheme including all tyres, batteries and exhausts. Any damage, repair, or other work required as a result of accident, impact, theft or vandalism, are not covered. However, these should be covered by your insurance policy. Repairs arising from negligence or misuse are also not covered. Fair wear and tear is as defined by the standard British Vehicle rental and Leasing Association (BVRLA) guidelines (see Appendix A). 14. Booking your car in for servicing and maintenance When a car requires servicing or maintenance, you should contact Zenith Service Call, who will book the car in on your behalf. The contact telephone number is 0870 1200 605 or book ‘on-line’ via the ‘blue page’ ECO website.

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Cars will be serviced by a national network of Zenith premier dealers, who will arrange collection and delivery and for the provision of courtesy cars. Zenith will require three weeks’ notice to arrange a booking and the provision of a courtesy car. Cars must be serviced in strict accordance with the manufacturer’s service schedule or the warranty will not be valid. If any warranty claim is rejected by reason of lack of routine servicing, you will be charged any additional costs. Zenith’s approval is always required by the servicing dealers before any work is carried out. 15. What if my car breaks down? All cars in the scheme will be covered for breakdown. This cover includes Road Side Assistance, Home Start and Relay breakdown cover: contact telephone number 0800 0280205. 16. What are my responsibilities for the car? You are responsible for keeping the car in good condition. You are also responsible for all oil, and anti-freeze required between regular services. You should carry out regular checks on tyre pressures, battery and all engine fluid levels (including water). It is your responsibility to notify Zenith immediately of any defect in the mechanical condition of the vehicle. 17. MOT It is a legal requirement that an MOT Test Certificate be obtained just prior to the third anniversary of the registration of your car. Zenith will send a reminder to ask you to contact Zenith Service Call: contact telephone number 0870 1200605, to arrange to book your vehicle in for an MOT. 18. Road Fund Licence and Tax Discs When the car is delivered, it will have 12 months road fund licence. When this expires, it will be your responsibility to re-tax the vehicle. 19. Motor Insurance Insuring the vehicle will be your responsibility and cost. Fully comprehensive cover must be in place for the life of the contract. If you are doing business mileage in your car, you need to ensure that you have adequate cover. If you use Linkfield Insurance, Atkins’ preferred insurance broker, you will automatically be covered for business use. Their number is 01737 781493.

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20. What is Early Termination Insurance (ETI) and how

does it work? Early termination insurance has been built into your monthly payments. This is designed to protect you and give you peace of mind should you need to terminate the finance agreement before the end of the contract period where your circumstances have changed due to resignation or redundancy. The early termination insurance will provide cover against the costs of terminating your finance agreement when or if: • your driving licence is withdrawn for medical reasons • you die • you or your spouse suffers from a terminal illness • you or your spouse suffers disablement or mental illness • you are ordered to stop work by a doctor because you are pregnant or

choose not to return to work following the ordinary length of maternity leave

• you are made redundant or accept voluntary redundancy • you resign • Gap cover included in all contracts Gap cover protects you if your vehicle is stolen or written off. Should there be a difference between the settlement figure calculated by Zenith and the amount offered by your insurance company, Linkfield will cover the shortfall up to the limit of the policy. For the insurance to be valid, the following criteria must be fulfilled: • The car is returned to Zenith to be sold on your behalf. • You were not aware that any of the above circumstances would arise at

the time you signed the finance agreement • Any resignation or redundancy does not arise within 6 months of the date

you signed the finance agreement The maximum amount payable by the ETI company will be between £4000.00 and £6000.00 depending on the size of your car. It is important to note that it is your responsibility to make and instigate any claim and that the ETI cover, whilst being of a comprehensive nature may not cover all the costs associated with terminating your loan early.

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So explain how exactly the Early Termination works. Your circumstances change and you want to make a claim on the ETI insurance. • You call Zenith for an early termination quotation, stating the current

mileage of the vehicle • Zenith will then provide you with a claim form and early termination figure,

but please note that at this point we cannot confirm whether you will be personally liable for any charges not covered by your insurance. This is because your insurance only covers you for the difference between the early termination figure we have provided you with and a benchmark value for your car. If Zenith does not manage to achieve that benchmark value, you will be liable for the shortfall. Obviously Zenith can only calculate this after selling the car.

• If you want to proceed with your claim, you need to submit your claim form to Linkfield Insurance. You will be asked to provide documentary evidence to support your reasons for making a claim under insurance scheme. Once the insurer (Linkfield) has accepted your claim request, you also need to confirm to the Atkins team at Zenith that you are proceeding with the early termination of your vehicle.

• You return the vehicle to Zenith. Alternatively, Zenith will arrange with you to collect the vehicle, but you will be liable for this collection cost

• Zenith sells the vehicle and calculates whether there is any remaining balance due from you.

• If you have done more miles in your car than you were contracted to do, or damaged the car, this will reduce its resale value and mean that your insurance is unlikely to be sufficient to cover all of your liabilities for early termination settlement.

The above is a summary of the cover – please refer to Appendix B at the back of the policy manual for full terms and conditions. Example 1: You take a car on a 40,000-mile contract over 4 years. You return it two years early, when it is scheduled to have done 20,000 miles. It has actually done 18,975 miles. Zenith calculate that the early settlement figure is £15,000.00 The market value of the vehicle is £12,000 The vehicle is sold for £12,000.00. You have made an ETI claim, and Linkfield pay Zenith the difference between these two figures i.e. £3000.00. Zenith has recovered its early settlement figure of £15,000 (£12,000 from the sales proceeds and £3000 insurance). You, therefore, have nothing further to pay.

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Example 2: You take a car on a 40,000-mile contract over 4 years. You return it two years early, when it is scheduled to have done 20,000 miles. It has actually done 35,000 miles. The excess mileage charge is 2.5 pence per mile for the maintenance. It is in a poor condition. Zenith calculate that the early settlement figure is £15,000, plus an excess mileage charge of £375.00 to cover the extra maintenance costs incurred by going over mileage and increased depreciation. The market value for the vehicle is £12,000 based on the contracted mileage. The vehicle is sold for £10,000. The insurance will therefore cover the £3000 difference between the settlement figure and the market value of the contracted mileage, but you will be liable to pay Zenith £2000.00 to settle the finance plus the excess mileage charge of £375. The fact that you had, in this instance, gone over mileage and also that the car was damaged would have contributed to the £2000.00 shortfall. Example 3: You take a car on a 40,000-mile contract over 4 years. You return it two years early, when it is scheduled to have done 20,000 miles. It has actually done 18,975 miles. Zenith calculate that the early settlement figure is £15,000.00 The market value of the vehicle is £12,000 The vehicle is sold for £11,500.00. The vehicle is returned with the correct amount of mileage, undamaged, but Zenith sell it for £500 less than the market value. You have made an ETI claim, and Linkfield pay Zenith the difference between the settlement figure and the market value i.e. £3000.00. However, Zenith has only recovered £14,500.00 of its early settlement figure of £15,000 (£11,500 from the sales proceeds and £3000 insurance). You, therefore, will be liable for the £500 shortfall. 21. Negligence You will be responsible for the costs of careless damage, including, but not restricted to scuffed bumpers and mirrors, kerbed tyres, and filling up with the wrong type of fuel. Please see Appendix A BVRLA Fair Wear and Tear Guide.

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22. Theft of Vehicle You must inform the police and Zenith immediately if the car is stolen. 23. Business mileage If you need to claim business mileage back through your expenses, you will need to ensure that you have adequate insurance cover. You will be reimbursed at the company’s company car pence per mile rate. You will need to follow the same procedure that you would for company car claims. Details of the reimbursement procedures and rates are shown on blue pages. 24. Leaving the company If you leave the company, you have two options: • As long as you have complied with the ETI eligibility rules and can make a

successful claim under ETI you can terminate the loan (see section 20), offsetting all or a large part of your finance termination costs.

• Continue to make the payments on the loan and keep the car. 25. The End of the Agreement At the end of the loan contract term you have two options: • To retain the car, you make a single cash payment of your final loan

payment (as set out at the inception of the agreement). • You can exercise your option to sell the vehicle to Zenith for an amount

equivalent to the final loan repayment. This is dependent on the terms of the agreement having been met, principally relating to the physical condition and maintenance history of the vehicle, Zenith reserve the right to make a charge for any damage or excessive wear and tear. See Appendix A BVRLA Fair Wear and Tear Guide.

26. Excess mileage If the vehicle exceeds the contracted mileage, there will be an excess mileage charge. This is shown as a pence per mile cost when you take your new car, and is laid out in your agreements and on the website quote system. If you find, during the contract, that you have under estimated your mileage please contact Zenith to renegotiate the contract terms. If you exceed the pro-rated mileage on an annual basis by more than 15% we reserve the right to invoice the excess mileage costs accrued up to that point.

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Appendix A BVRLA Fair Wear and Tear Guide The British Vehicle Rental and Leasing Association was founded in 1967. It is a pre-eminent and influential representative organisation, promoting and supporting the corporate objectives of its members within the short and long term vehicle rental industries. Fair Wear and Tear Taking into account a vehicle’s age and mileage, and covering overall condition, from the mechanics and electrics through to the bodywork and the upholstery, fair wear and tear summarises the degree of deterioration judged to be reasonable when a fleet vehicle is returned at the end of a contract period. The top causes of unreasonable wear and tear in a vehicle are: • Lack of regular checks by the vehicle user, leading to faults and damage

going undetected and unrepaired. • Not adhering to the vehicle manufacturer’s recommended maintenance

schedule • Not taking responsibility for the day to day care and maintenance of the

vehicle • Poor quality of body repairs, leading to general neglect Some amount of wear and tear damage may occur through normal every day use, particularly for high mileage vehicles. After a typical lifespan of 3 years/60,000 miles, stone chips and minor abrasions to a vehicle’s paintwork would be deemed fair wear and tear for its age. If the stonechip damage had exposed the base metal, however, and failure to touch it up had caused penetrating rust to set in, this deterioration would not be acceptable as fair wear and tear. General Fair Wear and Tear • All documents relating to the vehicle must be available and returned intact • Damage caused by removal of accessories eg car telephones should be

repaired • Non-standard badges, labels etc should be removed • A full set of keys including the master must be returned • Any damage to the bodywork must be repaired to a professional standard • Minor dents up to 10mm are acceptable as long as the paint surface has

not been penetrated; multiple dents on a single panel should be repaired no matter how small

• Small areas of stone chipping, door edge chipping and light scratches are acceptable

• All lamps must be operational, and free of holes and cracks in the glass • Interior trim should be clean and tidy

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• Damage to the wheels is not acceptable; tyres must be in a legal condition

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Append ix B

Early Termination Insurance Policy

The policy has been arranged by the Scheme Administrator:

Linkfield Insurance Logistics Ltd Linkfield House

1-3 Linkfield Corner Redhill, Surrey

RH1 1YZ

Version 22/08/2002

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Contents

PAGE(S)

Introduction Your Early Termination Insurance Policy 1

Definitions The meaning of certain words and phrases 2-4 Cover The cover you have 5 Conditions Certain conditions you must keep to 6-7 Exclusions Restrictions which apply to your insurance 8 Claims Procedure How to make a claim Appendix 1

Your Policy Schedule Appendix 2

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1.

Introduction This is your Early Termination Insurance Policy. Read this booklet and the schedule carefully and keep them in a safe place.

If you have any questions about any of your documents, contact Linkfield Insurance Logistics Limited.

Early Termination Insurance Policy This Policy is a legally binding contract between YOU (the Insured) and the Insurer. The contract is based on the information you provided in your application form. We have agreed on behalf of the Insurer to insure you under the terms, conditions and exceptions contained in this booklet or in any endorsement applying to this booklet. The cover provided by this document provides for losses that occur during any period of insurance for which you have paid, or agreed to pay, the premium.

Our promise to you. We aim to provide a first-class service. If you have any cause to complain, or you feel that we have not kept our promise, please contact Linkfield Insurance Logistics Limited. If you are not happy with the way the matter is dealt with, please write to the Chief Executive of the Insurer; their name and address can be found on your policy schedule. After this action, if you are still not satisfied with the way a complaint has been dealt with, you may ask the Financial Ombudsman Service (FOS) at South Quay Plaza, 183 Marsh Wall, London, E14 9SR (Tel: 0845 600 6666) to review your case. Should you contact the FOS this will not affect your right to take legal action if necessary. Should the Insurer become at any time unable to meet its liabilities under this policy, your interests will be protected under the Policyholders Protection Act. Full details are available upon request by writing to the Policyholders Protection Board at 51 Gresham Street, London, EC2V 7HQ.

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2 Definitions Actual Sale Proceeds Means the sale proceeds of the vehicle when offered for sale less any reasonable selling expenses including collection and valeting costs and auction fees. Agreement Means the contracts between the Insured and the Funder/Lessor specifying the terms and conditions upon which the Vehicle is provided. Application Form Means the form completed signed by the Insured and submitted to the Scheme Administrator before commencement of cover under the policy.

Contract of Employment Means a permanent contract issued by the Employer to the Insured. It does not include any time or project limited or self employed contracts. Contract Mileage Means the contract mileage as shown on the Agreement as being the anticipated annual mileage and on which the Agreement has been based. Contract Period Means the period of the Agreement. Disablement Means the diagnosis by a suitably qualified specialist approved by the Scheme Administrator of the onset or occurrence of a physical or mental impairment: - that the Insured is suffering from, and that in the opinion of the specialist will

prevent the Insured from being able to perform their work duties in a satisfactory manner for a period of at least six months;

or - that the spouse or common-law partner of the Insured is suffering from and that

in the opinion of the specialist will require constant care for a period of at least six months which the Insured agrees to provide and as a result is not able to perform their work duties in a satisfactory manner.

Employer Means any partnership or incorporated body issuing a permanent Contract of Employment to the Insured and is named in the Schedule. This definition includes any parent, subsidiary or associated body of the Employer. Funder/Lessor Means the Company named in the Schedule providing the Vehicle to the Insured under an Agreement including any associated and/or subsidiary Companies.

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Insured Means the person who has submitted an Application Form to the Scheme Administrator and is so named in the Schedule. Insurer As named in the Schedule. Market Value Means the value of the Vehicle at the Termination Date determined by CAP Black Book clean value for the proportional Contract Mileage. Mental Illness Means the diagnosis by a suitably qualified psychiatrist approved by the Scheme Administrator of a well known and documented mental condition: - that the Insured is suffering from, and that in the opinion of the psychiatrist will

prevent the Insured from being able to perform their work duties in a satisfactory manner for a period of at least six months;

or - that the spouse or common-law partner of the Insured is suffering from and that

in the opinion of the psychiatrist will require constant care for a period of at least six months which the Insured agrees to provide and as a result is not able to perform their work duties in a satisfactory manner.

Motor Insurer Means the UK Registered Insurer of the Vehicle. Period of Cover Means the period for which a premium has been paid to the Scheme Administrator. Redundant/Redundancy Means the formal notification of dismissal from employment because the job or the employee has been deemed no longer necessary in accordance with law applicable at the time. Schedule Means the document which forms part of the policy. Scheme Administrator Means Linkfield Insurance Logistics Ltd whose registered office is: Linkfield House 1-3 Linkfield Corner

Redhill Surrey RH1 1YZ Registered Number: 3882654

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Terminal Illness Means the diagnosis by a suitably qualified specialist approved by the Scheme Administrator of the onset or occurrence of a condition: - that in the opinion of the specialist will culminate in the premature death of the

Insured within a period of twelve months and will prevent that person from being able to perform their work duties in a satisfactory manner;

or - that the spouse or common-law partner of the Insured is suffering from and that

in the opinion of the specialist will culminate in premature death within a period of twelve months and will require constant care for a period of at least six months which the Insured agrees to provide and as a result is not able to perform their work duties in a satisfactory manner.

Termination Charge Means the net amount required by the Funder/Lessor to terminate the Agreement at the Termination Date after deduction of: - any sums not covered by the policy and required to be paid by the Insured under

the terms of the Agreement; and - the Market Value of the Vehicle in the event of a claim under Section 1, sub

sections a),b),c),d),e),f),g) of the policy; or - the value of the Vehicle agreed with the Motor Insurer before the application of

any policy excess or other contribution required under the terms of the motor policy in the event of a claim under Section 1, sub sections h) and i) of the policy.

Termination Date Means either: - the date when the Vehicle is returned to the Funder/Lessor; or - the date the Vehicle is declared a total loss by the Motor Insurer in the event of a

claim under Section 1, sub sections h) and i) of the policy. Territorial Limits Means Great Britain, Northern Ireland, the Isle of Man and the Channel Islands. Vehicle Means a motor vehicle as defined in EC categories A or B of the UK driving licence and supplied to the Insured under the Agreement.

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The Cover You Have

Section 1 Early Contract Termination

1). The Insurer agrees to pay on behalf of the Insured the Termination Charge up to the limit stated in the Schedule in the event of the termination of any Agreement before the agreed expiry for which the Premium has been paid as a result of:

a) the Insured Voluntarily Resigning from their Employer; or b) the Insured being made Redundant by their Employer or accepts Voluntary

Redundancy; or c) the Insured’s driving licence being withdrawn for medical reasons by the

issuing Authority; or d) the death of the Insured; or e) the Insured or their spouse or common-law partner suffering Terminal Illness;

or f) the Insured or their spouse or common-law partner suffering Disablement or

Mental Illness; or g) pregnancy, where the Insured has been advised to stop working by a

qualified medical practitioner or elects not to return to work following the ordinary maternity leave period applicable at the time; or

h) the Vehicle being stolen and not recovered; or i) the Vehicle being damaged beyond economic repair and is deemed a total

loss by the Motor Insurer following a valid claim under the Insured's motor insurance policy.

provided that the termination is a direct result of the condition above and: the vehicle is returned to the Funder/Lessor or, the vehicle is stolen and not recovered or declared a total loss by the Motor Insurer.

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Conditions 1. The Insured must have no prior knowledge or information, which is likely to

give rise to a claim under the policy. 2. The Vehicle must be:

- maintained in accordance with the manufacturer’s service schedule; and - insured under a comprehensive motor policy.

3. The maximum period of any Agreement shall be four years. 4. The commencement date of the policy shall be the same as the

commencement date of the Agreement unless agreed in writing by the Scheme Administrator.

5. The period of cover under the policy in respect of any Agreement

shall: - commence once the Application Form has been received and accepted

by the Scheme Administrator; and - be the period for which the premium has been paid to the Scheme

Administrator. 6. In the event of an occurrence likely to give rise to a claim under the policy the Insured shall:

- give notice to the Scheme Administrator within thirty days of them becoming aware;

- use due diligence to minimise the loss and avoid further loss; - provide documentary evidence including medical certificates and salary

slips as may be requested by the Scheme Administrator; - provide the Scheme Administrator such information and assistance as

may be reasonably required in the settlement of the claim. 7. In the event of the theft or damage to the Vehicle likely to give rise to a claim

under Section 1, sub sections h)and i) of the policy the Insured shall: - take all reasonable actions to assist their Motor Insurers in expediting the

claim; and - not accept a settlement offer, without approval in writing by the Scheme

Administrator. 8. In the event of a claim the Insurer or the Scheme Administrator shall be entitled

to negotiate and settle the claim directly with the Funder/Lessor.

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9. The Insurer or the Scheme Administrator shall be entitled to: - take over and/or conduct in the name of the Insured the defence or

settlement of any claims and to prosecute for indemnity or otherwise against any third party before or after payment is made, and whether or not the Insured suffers uninsured losses.

- have full discretion in the conduct of any negotiations, proceedings, and settlement of any claim

- take over any Vehicle giving rise to a claim that would otherwise be surrendered.

10. The policy shall be null and void in the event of any fraud, mis-statement,

mis-representation, mis-description or non-disclosure of any material information by the Insured.

11. The Insurer or the Scheme Administrator may cancel the policy by giving thirty days notice in writing to the other party at their address shown in the policy. In the event of cancellation by either party:

- where there has not been a claim under the policy, the premium due shall be calculated on the annual premium divided by 12 multiplied by the number of whole or part months the policy has been in force; or

- where a valid claim has been notified under any Section of the policy there will be no refund of premium.

- The Insured may cancel the policy by giving the Scheme Administrator notice at any time; there will be no refund of premium.

The policy is cancelled with immediate effect if a valid claim is submitted and paid under Section 1 of the policy; there will be no refund of premium.

12. If any difference shall arise as to the indemnity to be given under the policy

(liability having been admitted) such difference shall be referred to an Arbitrator to be appointed by the parties in accordance with the statutory conditions for the time being in force. Where any difference is by this condition referred to arbitration, the making of an award shall be a condition precedent to any right of action against the Insurer. The seat of arbitration shall be London. The cost of appointment of an Arbitrator shall be borne by the parties equally.

13. The maximum amount payable under the policy shall be the policy limit

shown on the Schedule. 14. The policy is subject to English law.

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EXCLUSIONS WHICH APPLY TO YOUR INSURANCE

The policy does not cover: 1. any difference between the Market Value and the Actual Sale Proceeds of the

Vehicle; 2. any excess or contributions required by the Insured's Motor Insurer following

a valid claim under the motor policy; 3. any diminution of value of the Vehicle following damage or repair; 4. any arrears in the Insured’s payments under the Agreement; 5. resignation or redundancy occurring within the first six months of the

commencement of the Agreement; 6. resignation, or redundancy if the Insured is self-employed or if the Insured’s

employment is on a time or project limited basis; 7. the occurrence of any circumstances giving rise to a claim during the first six

months of the Agreement being effected - which is within the control of the Insured; or

- which is known or can reasonably be expected to be known by the Insured or the Employer at the time of signing the Agreement;

8. pregnancy where childbirth would normally be expected within six months of

the commencement of the Agreement; 9. the Insured’s employment ceasing or changing as a result of their driving

licence being withdrawn by the issuing authority for a reason other than as specified in Section 1 c) of the policy;

10. the Insured’s employment ceasing as a result of criminal act gross

misconduct dismissal or failure to perform their duties satisfactorily meet targets or satisfactorily complete a probationary period;

11. any loss or damage or liability insured by any other policy except in respect

of any excess amount beyond the limit of that policy, provided that such amount would otherwise be paid under the policy;

12. any amounts due under the Agreement as a result of delays caused by

the Insured or the Funder/Lessor - in providing required documentation; or - in reaching any settlement agreement.

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Appendix 1: How To Make a Claim

PROCEDURES FOR EARLY CONTRACT TERMINATION AND TOTAL LOSS SHORTFALL CLAIMS Once you have given notice that you wish to terminate your finance agreement you should contact Zenith and they will calculate the early termination settlement figure at the date you expect to return the vehicle. The Market Value of your vehicle will be determined from CAP BLACK BOOK ‘CLEAN’ VALUE for the Contract Mileage of your Vehicle. If your vehicle has been stolen or damaged beyond economical repair Zenith cannot calculate the projected settlement figure until they know the amount your Insurers will pay under your motor insurance and when this will be paid. Zenith will send you a claim form to complete; this should be completed and returned together with the requested information in support of your claim to the Scheme Administrator(do not return to Zenith) at the address shown at the bottom of this page. Once your claim has been accepted, either in full or part settlement of your liability under your finance agreement the Scheme Administrator will forward to you a claim offer: λ For Early Termination, being the difference between the settlement figure

required by Zenith and the Market Value of your vehicle; λ In the event of a Total Loss Shortfall claims, being the difference between the

Motor Insurer’s payment and the settlement figure required by Zenith. At this stage you may still change your mind and decide to continue with the finance agreement. If you accept the claim offer Zenith will make the necessary arrangements with you for the return of your vehicle (or to obtain payment from your insurance company), and

γ for payment of any excess settlement figure over and above the policy limit, and

γ for payment of any shortfall between the Market Value and the actual sale proceeds of your vehicle, and

γ for payment of any arrears in your monthly payments. Subject to the maximum amount payable under the policy.

The Scheme Administrator can be contacted at:

Linkfield Insurance Logistics Ltd, Linkfield House, 1-3 Linkfield Corner, Redhill, Surrey RH1 1YZ

Tele: 01737 768151 Fax: 01737 773115

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Appendix 2

SCHEDULE (Attaching to and forming part of Early Termination Insurance Policy)

POLICY NUMBER: HAESP INSURER: HAMILTON INSURANCE INSURED: ADDRESS: VEHICLE: REGISTRATION NO: EMPLOYER: W.S Atkins and associated or subsidiary Companies FUNDER/LESSOR: ZENITH VEHICLE CONTRACTS PLC SECTION APPLICABLE TO THE POLICY: SECTION 1 SUB SECTIONS APPLICABLE TO THE POLICY: ALL SUBSECTIONS PREMIUM: AS PAID (Inclusive of Insurance Premium Tax) POLICY COMMENCEMENT DATE: POLICY EXPIRY DATE: LIMIT OF INDEMNITY: £ in total In witness whereof this policy has been signed by the authorised Scheme Administrator, Linkfield Insurance Logistics Ltd of Linkfield House, 1 to 3 Linkfield Corner, Redhill, Surrey, RH1 1YZ. For Linkfield Insurance Logistics Ltd Karl Cobham

Authorised Signatory Date: Hamilton Insurance is a trading name of Hamilton Life Assurance Company Limited (Registered in England No. 1656838) and Hamilton Insurance Company Limited (Registered in England No. 1655888), incorporated companies limited by shares and members of the Association of British Insurers and Financial Ombudsman Service and whose Registered Offices are at North Street, Winkfield, Windsor, Berkshire, SL4 4TD.