For Internal Use Only CLV Human Resources October 1st, 2008 1 (5)

1. PURPOSE The objective of this policy is to define guidelines for the employee with an entitlement for a company leased motor vehicle (Car) under the FBP, for official and personal use. The company will facilitate the process of acquiring the motor vehicle. The Company will provide a motor vehicle through a Finance & the Leasing Company selected by Nokia Siemens Networks Private Limited, on lease agreement for the exclusive use of the eligible employee. The employee, who will take possession of the motor vehicle, shall be responsible for the safe-keep, proper utilization and maintenance of the motor vehicle as per the various statutes, laws, legislation, rules, regulations and the ordinances promulgated by the appropriate authorities concerning the usage and/or the performance/emissions of the registered vehicles. All eligible employees will have the option of buying a new motor vehicle or converting their present vehicle on to company lease. The procedure and documentation for both are defined in the annexures. 2. PROCESS This process applies to the purchase of a new car and the leaseback of an old / self used car. 2.1 Purchase of New Car Employee can choose any Car make and Model of their choice. SELECTION OF THE VEHICLE/DEALER A list of preferred dealers is available from the Leasing Company, however the employee can select the vehicle, make & model as well as the dealer of his/her choice and take the delivery of the vehicle from the dealer after co-coordinating with the HR Department. The employee is free to negotiate with any Car Dealer and leasing will be done with the Dealer offering the best price. If the dealer is offering any Cash Discount and Discount by way of Accessories these should be captured in the Proforma invoice to enable the Leasing Company to calculate the EMI accordingly.

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100% of the amount will be financed by the leasing company. EMI will be calculated as a percentage of the pre-VAT base price Residual Value is fixed here at: o 30% for 24 months o 21% for 36 months o 21% for 48 months The balance residual value will be recovered from the employee at the time of foreclosure or natural end of the lease tenure, whichever is applicable. The employee is also liable to pay the VAT as applicable as per the law.

The Employee needs to fill the Vehicle requisition form (available as Annexure 1 as VRF) & forward the same to HR alongwith a copy of their driving licence and proforma invoice. Any revisions after the order confirmation by the Leasing Company, will entail a revision expense of Rs.2,000/- which will be borne by the employee. On cancellation of confirmed order to the Leasing Company, cancellation charges of Rs.5000/- will be levied by the Leasing Company, which shall be borne by the employee.

VEHICLE RELATED EXPENSE The EMI for the vehicle will be routed through the FBP component salary of the employee. Fringe Benefit Tax (FBT) on this amount has to be borne by the employee. The company will pay one time Registration Fee & Road Tax, as applicable. The Company will pay the comprehensive insurance charges and will renew the insurance every year, for the lease period. The reimbursement of expenses comprising of fuel and the maintenance of the vehicle will be as per the FBP entitlement, as may

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be prevalent from time to time. Fringe Benefit Tax (FBT) on this amount has to be borne by the employee. Note 1: Except the above, any additional cost implications due to change in Statute, Taxes etc. shall be borne by the employee. Note2: In case an employee leaves / forecloses the car within 12 months of taking the Car, s/he has to repay the Registration, Road Tax and Insurance charges to the company on a pro rata basis. The total processing time for a new vehicle purchase will take a minimum of three weeks from the date the Vehicle Request is received by HR, in the case of vehicles available off- the shelf. HR & the Leasing Company cannot commit the waiting time limit for vehicles which are not available off the shelf. Purchase of Leasedback (used) Car Employee can get used car leased only if, the existing owner is self, prior company or another Nokia Siemens Employee. The company will lease a new / second hand motor vehicle from the Leasing Company and lease it for not less than 24 months and not more than 48 months at the end of lease tenure. Details and process for financing a second hand are available as Financing second hand cars.doc (see attachment).

2. FORECLOSURE/NATURAL TERMINATION If the lease agreement is required to be foreclosed in the event of employee leaving the company or in the event of a transfer to other Nokia Siemens destination, the foreclosure amount and all related cost are to be borne by the employee. The Leasing company will charge a foreclosure fee equivalent to 3% of the principal amount outstanding as on the foreclosure date. This cost also needs to be borne by the employee. The employee to request the The Leasing Company for the foreclosure value of the vehicle as on the end of the month.

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In case of mid-term termination, the employee, who is terminating the vehicle lease, will put his request by 'E-mail" to HR Department. HR Department will coordinate with the Leasing Company, for the final foreclosure amount details. The employee shall make the payment in the name of the Leasing Company. Once the HR Department receives the entire foreclose amount from the employee, they will issue the following documents to the financier to obtain the Form-35 (de-hypothecation letter) and NOC (No Objection Certificate). Any penal charges due to delay in payments, at the Termination of Lease / Foreclosure will be borne by the employee. 12.5% VAT would be charged on the outstanding book Value.

At the end of lease period or during mid term termination of lease, the employee has to ensure that he/she signs-up all the relevant documents i.e. Form-29 (Sale Form), Form-30 (Transfer Form), Subject to the foreclosed amount cheque being received before 15th of a month, the vehicle will be foreclosed within the same month and if the foreclosure cheque is received after 15th of the month than the interest will be charged by The Leasing Company and his/her accounts will be foreclosed in the following month. It is the responsibility of the employee to ask for the termination value of the car in case of natural termination from Leasing Company by putting an e-mail to HR. 3. POST FORECLOSURE/NATURAL TERMINATION The Registration Charges/Insurance policy transfer in the employees name and all the expenses on account of transfer of ownership shall be borne by Employee. The employee is liable to buy the car at the end of the lease term.

4. ACCIDENT/SETTLEMENT In the case of any accident, it will be the sole responsibility of the employee to co-ordinate with the concerned insurance company and the service center for repair, payment and settlement with the insurance company.

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5. Transfer of Vehicle In case the user gets transferred from one city to another, it is the responsibility of the employee to get the vehicle registered in the city through the RTO agent. Employee needs to pay off all the expenses and then claim the same as an expense claim. Appendix 1 Vehicle Requisition

D:\Nokia-Siemens JV\ Vehicle Request Form (VRF) .doc Policies\NSN Policies\Second Hand Car.doc