SYNERGY AUTOMOTIVE SHORT-TERM LEASE AND RENTAL TERMS AND CONDITIONS

1   Definitions

“Actual Mileage” - means the number of miles driven by a Vehicle since the commencement of a Hire;

“Annual Mileage” - the monthly mileage multiplied by twelve;

“Collection address” - means the address notified to Synergy Automotive in respect of a vehicle by the Customer or the relevant Permitted Driver prior to the end of the Hire Period if the vehicle is not to be returned by the Customer;

“Effective Date” - means the date the agreement has been signed by both parties

“Excess Mileage Charge” - expressed in pence per mile and detailed on the Schedule;

“Expert” - means an independent expert appointed by Synergy Automotive to carry out the valuation of the Vehicle contemplated by clauses 3.11.2;

“Hire Payments” - means the payments due in respect of each vehicle calculated at the applicable daily rate notified to the Customer by Synergy Automotive;

“Hire Period” - means the period from when a Vehicle is at the disposal of the Customer, for the purposes of any calculations this will be expressed as a number of hire days;

“Insurers” - means the insurers of a Vehicle and third party risks under the policies taken out in accordance with clauses 3.8 and 3.9;

“Monthly Mileage” - expressed in miles per month and detailed on the Schedule;

“Permitted Driver” - means any person who is authorised under clause 4 to drive a Vehicle and whose details appear in Part V of the Schedule;

“Presumed Value” - means the market value of a Vehicle on a sale by a willing seller to a willing buyer on the assumption that the Vehicle is maintained in accordance with the terms of this Agreement and complies with the Return Conditions and has not sustained a Total Loss;

“Relevant Proportion” - means in respect of a Vehicle the number of miles which results from dividing the annual mileage by 365 and multiplying by the Hire Period;

“Return Address” - means Synergy Automotive Limited, 12A Hornbeam Park Oval, Hornbeam Park, Harrogate, HG2 8RB or any other  address notified to the Customer or any Permitted Driver by Synergy Automotive prior to the end of the Hire Period;

“Return Condition” - means the conditions specified in Clause 5 being those to which each Vehicle should comply at all times during the Hire Period and upon their delivery up to Synergy Automotive at the expiry of the Hire Period or upon earlier determination of this Agreement;

“Schedule” - means the schedule to this Agreement;

‘Total Loss’ - means the theft of a Vehicle or a total loss or constructive or arranged total loss as declared by the Insurers or otherwise adjudged;

“Vehicle” -  means any Vehicle hired by the Customer under the terms of this Agreement;

2   Synergy Automotive’s obligations

2.1    Synergy Automotive undertakes:

2.1.1       to make each Vehicle available to the Customer for the Hire Period;

2.1.2       to ensure that each Vehicle is duly taxed and is roadworthy and complies with the requirements of the Road Traffic Acts and all regulations made under such Acts;

2.1.3       to collect each vehicle from the relevant collection address at the end of the Hire Period relating to that vehicle if collection is requested by the Customer - unless agreed otherwise, standard collection charges will apply;

2.1.4       to carry out its obligations under this agreement with reasonable skill, care and diligence and in compliance with all applicable laws;

3   The Customer’s obligations

The Customer undertakes:

3.1    to make all Hire Payments due under this Agreement in line with the following Advanced Payment terms:

3.1.1        all vehicle hires will be invoiced in Advance with the initial invoice for each vehicle covering the vehicle hire up to and including the last day of the subsequent month for which immediate payment is due;

3.1.2        monthly invoices for all vehicles remaining in effect will be generated in advance each month and payment will be taken by Direct Debit in the subsequent month;

3.1.3        it is a condition of this agreement that so long as any schedule remains in effect the Customer shall maintain in force a mandate to its bankers to enable Synergy Automotive promptly collect by direct debit all sums which may become due from the Customer under this agreement. Synergy may use an intermediary company to complete and process your Direct Debit instruction.

3.1.4        all additional invoices generated will become due for payment by direct debit within 10 working days of the invoice date in line with the Direct Debit Guarantee;

3.1.5        any payment to be made by the Customer which cannot be collected on first demand by direct debit shall carry an administration charge of such sum per payment as Synergy Automotive may from time to time require which shall be advised to the Customer and which administration charge shall be payable by the Customer as a Recharge item;

3.2    to inspect each Vehicle on delivery or collection whichever applies and notify Synergy Automotive immediately of any defect. If no such notification is given it shall be conclusively presumed that the Vehicle is in good order and condition and in every way satisfactory to the customer at the time of such delivery / collection;

3.3     to drive and otherwise use each Vehicle in a responsible manner and in compliance with all of the relevant provisions of the Road Traffic Acts and all regulations made under such Acts;

3.4     not to drive any Vehicle on unmetalled roads;

3.5     not to attach or allow any Vehicle to be attached to a caravan or any trailer without the prior written consent of Synergy Automotive;

3.6     not to use any Vehicle for racing or any other form or competition or any other hazardous or unusual use;

3.7     to keep each Vehicle at all times in good repair condition and working order properly serviced and maintained and in accordance with the Return Conditions;

3.8     to insure each Vehicle and keep each Vehicle insured under a fully comprehensive policy at the Customer’s expense throughout the Hire Period for each Vehicle’s full replacement value against all liabilities without restriction or excess;

3.9     to insure Synergy Automotive and the Customer against all liability to third persons for death personal injury and damage to or loss of property arising directly or indirectly out of the use or possession of each Vehicle and all other risks required to be covered by the Road Traffic Acts or any modification or re-enactment of them for such amount as Synergy Automotive may stipulate from time to time or in the absence of any such stipulation for such amount as is prudent in all the circumstances and in any event for a sum not less than £2,000,000;

3.10    in the event that each Vehicle is stolen to:

3.10.1     inform the police of the theft within 24 hours of the theft of that Vehicle and obtain an incident or crime number;

3.10.2     complete and return any documentation sent by Synergy Automotive in connection to the theft of the Vehicle within 48 hours of receiving such documentation;

3.11     to pay to Synergy Automotive upon the expiry of 30 days after a Total Loss (or on such later date as the Synergy Automotive may agree) an amount equal to the sum of:

3.11.1     all arrears of Hire Payments;

3.11.2     such amount as the Expert may determine as the amount (if any) by which the Presumed Value on the date of the occurrence of the Total Loss exceeds the sum paid by the Insurers;

3.11.3     such sum as is required to compensate Synergy Automotive for the loss or destruction of or damage to the Vehicle. For the avoidance of doubt this includes loss of revenue sustained by Synergy Automotive through the Vehicle not being available for other customers of Synergy Automotive whilst the Vehicle is being repaired or replaced;

3.12     that if on the expiry of the period of 30 days from the date of the Total Loss the Insurers have not made payment to Synergy Automotive under the policy or policies maintained in compliance with clause 3.8 above the Customer shall pay to Synergy Automotive upon demand such sum as shall be determined by the Expert to be the Presumed Value in lieu of the amount to be calculated and paid under the terms of clause 3.11.2;

3.13     to pay the costs and expenses of the provision of the opinion of the Expert such costs and expenses (if any) to be added respectively to the amounts payable under clauses

3.11.1 or 3.11.2;

3.14     that if, during the Hire Period, a Vehicle sustains loss or damage not amounting to a Total Loss the Customer will immediately notify Synergy Automotive and to apply all insurance moneys payable to make good such damage and upon being requested by Synergy Automotive the Customer will assign to Synergy Automotive all the Customer’s rights benefits and claims under any relevant policy of insurance;

3.15     to be solely responsible for and to indemnify Synergy Automotive in respect of all loss of or damage to each Vehicle (in so far as Synergy Automotive is not reimbursed by the proceeds of insurance in respect thereof) however caused occurring at any time or times before they are redelivered to Synergy Automotive under the terms of clause 5 below;

3.16     to keep each Vehicle in its own possession and in compliance with any policy of insurance affecting that Vehicle provided that that Vehicle is not removed from Great Britain and neither to sell or offer for sale or otherwise deal with that Vehicle or any interest in it or in this Agreement nor to allow the creation of any charge or lien over that Vehicle;

3.17     to indemnify Synergy Automotive against all loss, actions, claims, demands, proceedings, (whether criminal or civil) costs, legal expenses, (on a full indemnity basis) insurance premiums and calls liabilities judgments damages or other sanctions whenever arising directly or indirectly from the Customer’s failure or alleged failure to carry out its obligations under this agreement or by reason of any loss injury or damage suffered by any person (including without limitation the Customer) from the presence, delivery, possession, hiring, transportation, condition, use, operation, removal or return of any Vehicle or any defect in the Vehicle or the design manufacture testing maintenance of any Vehicle or the Customer exercising any right in respect of any Vehicle;

3.18     to deliver each Vehicle in good repair and working order together with all records and handbooks in respect thereof and in accordance with the Return Conditions at the expiration of the Hire Period or upon earlier determination of this Agreement or the hiring under it to the Return Address or such other address in Great Britain as Synergy Automotive may notify to the Customer prior to delivering up that Vehicle and to allow Synergy Automotive its agents or representatives access to any premises where that Vehicle may be for the purpose of inspecting and removing that Vehicle;

3.19     to sign a separate rental form where additional equipment is hired agreeing further terms and conditions, terms of use and daily hire costs for each piece of equipment hired.

3.20     to ensure that all insured vehicles are updated on the Motor Insurance Database by the Customer or the insurers and be responsible for any vehicles that are not updated in all cases including but not exhaustive, any penalty notice or fine incurred. In the event of a penalty notice or fine or other charges being received by Synergy Automotive, we will transfer liability to the Customer and an admin fee will be applied. Admin fees are non-refundable in any circumstances.

4   Permitted Driver

4.1    The Customer may authorise any person in its employ to drive the Vehicle under the terms of this Agreement;

4.2    The Customer undertakes to ensure that all persons authorised under clause 4.1 to drive a Vehicle hold a valid driving licence and are insured to drive the vehicle in line with clause 3.8;

4.3     The Customer shall exercise reasonable care in selecting persons it nominates under clause 4.1;

4.4     For the purpose of section 68 of the Road Traffic Offenders Act 1988, or in Northern Ireland, the Road Traffic (N.I) Order 1981, and the Protection of Freedoms Act 2012 (including any amendments or re-enactments of any of them) the Customer shall be liable as the keeper of the Vehicle for any offences committed and/or charges incurred during the Hire Period including: Road Traffic Offences, fixed penalty offences, parking fines, parking charges, parking tickets, parking penalties, penalty charge notices including congestion charging, bus lane violations, and any costs associated with the release of the Vehicle from clamping or being impounded. The Customer agrees to Synergy Automotive providing the Customer’s details to any public or private entity which has issued such notices so that it can recover such charges from the Customer directly. Synergy Automotive may also charge the Customer an administration fee in accordance with its standard rates from time to time for dealing with such notice, which shall be charged to and payable by the Customer in accordance with clause 3.1.5;

4.5     The Customer shall be liable to Synergy Automotive on a strict liability basis for any damage caused to the Vehicle or any losses flowing directly or indirectly from the breach of this Agreement by any Permitted Driver;

4.6     The Customer must provide the home address and contact telephone numbers for any driver / keeper / subhirer in possession of a vehicle, this information will only be utilised should Synergy Automotive need to retake possession of the vehicle.

5   Return Condition

5.1     Each Vehicle shall be made available for collection by the customer or delivered by the Customer to Synergy Automotive at the end of the Hire Period in the same repair and condition as when delivered to the Customer under this Agreement (ordinary wear and tear excepted) and all workmanship and repairs shall have been made to industry standard;

5.1.1        Where a vehicle is hired and Synergy Automotive is not responsible for the maintenance of the vehicle i.e. the hire is “non-maintained” it is the Customer’s responsibility to ensure that the vehicle is serviced and maintained throughout the life of the hire in accordance with the manufacturer’s maintenance and service schedule and the Customer accepts that failure to adhere to such schedule may result in charges being made which reflect the loss in residual value of the vehicle due to a lack of service / maintenance history. Tyres should be replaced on a like for like basis and have a minimum tread depth of 3mm on return upon off-hire.

5.2     Upon collection of a vehicle by Synergy Automotive or delivery of a Vehicle by the Customer to Synergy Automotive at the end of the Hire Period the Vehicle shall:

5.2.1        have free moving doors and be fitted with serviceable seals and have carpets and seat covers in a good condition and clean;

5.2.2        have bodywork free from dents and all repairs to the body work shall have been carried out in accordance with the manufacturer’s recommended procedures for effecting permanent repairs;

5.2.3        have windows free of material delamination;

5.2.4        have fuel tanks free from contamination and corrosion; and

5.2.5        be accompanied by all records and handbooks in respect of the Vehicle;

5.3     Synergy Automotive is permitted to take custody of any property belonging to the Customer or any Permitted Driver left in a Vehicle when the Vehicle is delivered up to or collected by Synergy Automotive. Synergy Automotive shall be entitled to keep or dispose of such property after 4 weeks have lapsed from Synergy Automotive informing the Customer that the property was left in the Vehicle;

6   Conditions warranties and exclusion

6.1     Synergy Automotive shall not be liable to the Customer:

6.1.1        in contract or in tort for loss injury or damage arising by reason of any defects in a Vehicle whether such defects be latent or apparent on examination (other than liability for death or personal injury arising from the negligence of Synergy Automotive);

6.1.2        for any statement term condition warranty or representation made by any supplier dealer agent broker or other person through whom this Agreement may have been introduced negotiated or conducted and persons other than those in the employ of Synergy Automotive have no authority express or implied to act as agent for Synergy Automotive;

6.1.3        either for any loss whatever suffered by the Customer as a result of a Vehicle being unusable or to supply any replacement Vehicle during any period when a Vehicle is unusable;

6.1.4        for any loss or damage incurred or sustained by the Customer in consequence of Synergy Automotive terminating the hiring under clause 7 below or in retaking possession of a Vehicle;

6.2     If the Customer does not notify Synergy Automotive on delivery of any defect in a Vehicle it shall be conclusively presumed that that Vehicle is in good order and condition and fit for the purpose for which it is required and is in every way satisfactory to the Customer;

6.3     Synergy Automotive shall pay to the Customer the sum (if any) by which the insurance money in respect of a Total Loss received by Synergy Automotive exceeds the sums paid by the Customer to Synergy Automotive under clause 3.12 provided that the Customer shall have first discharged in full all its obligations under this Agreement including without limitation its liability to pay the sum calculated under clause 3.11 above;

7   Termination

7.1    It is hereby agreed that forthwith upon the occurrence of a Total Loss the hiring of the relevant Vehicle shall terminate but without prejudice to this Agreement (which shall continue in full force and effect in respect of all other vehicles) and to any claims or liabilities then outstanding or thereafter arising in respect of that vehicle;

7.2     Without prejudice to Synergy Automotive’s right to arrears of Hire Payments or other sums due or for damages for breach of this Agreement Synergy Automotive may terminate the hiring of a Vehicle under this Agreement on the occurrence of any of the following events:

 7.2.1        if the Customer does not pay any of the Hire Payments or any of the sums agreed to be paid by the Customer to Synergy Automotive under this Agreement punctually on the date when due;

7.2.2        if the Customer shall be in breach of any term of this Agreement;

7.2.3        if the Customer abandons the Vehicle;

7.2.4        the Customer makes any voluntary arrangement with its creditors or becomes subject to an administration order or goes into liquidation or is otherwise wound up;

7.2.5        Synergy Automotive reserves the right to terminate the hiring of a vehicle at any time, giving a minimum of one days notice.

whereupon Synergy Automotive’s consent to the Customer’s possession of the Vehicle shall determine immediately and Synergy Automotive may take possession of the Vehicle wherever it may be;

7.3    The Customer can terminate the hiring of a Vehicle by returning the vehicle to Synergy Automotive and by paying the outstanding amount due for the Hire Period, or by Synergy Automotive making a credit payment to the Customer for any hire days paid for in advance.

8   Consequences of termination

8.1    Immediately upon the hiring of a Vehicle being determined under clause 6.2 above or if this Agreement is terminated by Synergy Automotive pursuant to clause 7.2 the Customer shall pay to Synergy Automotive;

8.1.1        all arrears of Hire Payments (if any);

8.1.2        damages for any breach of this agreement and all expenses and costs incurred by Synergy Automotive in retaking possession of the Vehicle or enforcing its rights under this Agreement;

8.1.3        any excess mileage charge. If the Actual Mileage exceeds the Relevant Proportion the Hirer shall pay to Synergy Automotive the amount which is produced by multiplying such difference by the Excess Mileage Charge;

9   Interest

9.1     The Customer shall pay to Synergy Automotive interest on Hire Payments or any other sums payable under this Agreement that are not paid when due calculated on a daily basis and compounded quarterly from the due date until payment at the rate of 5% a year over the base rate from time to time of Natwest Bank;

10  Generally

10.1     The Customer shall have no interest in the Vehicle save as is provided by this Agreement;

10.2     Any delay or failure of Synergy Automotive to exercise any right or remedy shall not constitute a waiver of it or them and any of Synergy Automotive’s rights or remedies may be enforced separately or concurrently with any other right or remedy now or in the future accruing to Synergy Automotive to the effect that such rights are cumulative and not exclusive of each other.

10.3     This agreement contains all the terms agreed between the parties except for such variations as shall be agreed in writing by Synergy Automotive and the Customer. The rights of Synergy Automotive are assignable by Synergy Automotive without the Customer’s consent. The Customer is not permitted to assign this agreement;

10.4    Any written communication from Synergy Automotive to the Customer shall be sufficiently served if sent by prepaid post or letter or delivered by hand to the address of the Customer as referred to above and if sent by post or letter shall be deemed to have been received by the Customer 48 hours after the time of posting and at the date of delivery if delivered otherwise than by post to the Customer’s address;

10.5    All sums payable under this agreement shall be paid together with the addition of such VAT as is legally payable on those sums;

10.6     The continuance of this Agreement or the Customer’s liability for payment of the Hire Payments and all other sums under it shall not be affected in any way by the loss, theft, Total Loss or any damage to or any defect in the Vehicle whether latent or patent save as provided in clause 7 above;

10.7     All the obligations of the Customer under this Agreement shall be discharged at the

Customer’s cost and expense;

10.8     The Contracts (Rights of Third Parties) Act 1999 is excluded from applying to this Agreement and nothing herein confers or purports to confer on any third party any benefit or any right to enforce any term of this Agreement;

10.9     This Agreement shall be governed and construed according to the law of England and Wales;

Short-Term and Mini Lease – Charging Tariff July 2025