Legal Criteria Metropolitan Areas and Areas with Local Restrictions Several of the Peugeot UK Selection Criteria include a provision that the requirements of the criterion will be subject to review by the Peugeot Franchise Validation Committee. Metropolitan Areas These aredefined within the Peugeot UK Network Plan as those major cities of the UK and their surrounding urban and suburban areas with a population of 500,000 or more. Areas with Local Restrictions These are defined as areas where there are natural or legal restrictions imposed on either the buildings or the environment of the contract site which prevent the contract holder from achieving compliance with the Peugeot UK Selection Criteria. For example, abnormally low planned volumes as a consequence of operating in an isolated market, or listed buildings, preservation orders, local government restrictions,etc. PJ1 MANAGEMENT ABILITY REQUIREMENT The executive officer of the legal entity (senior management) as well as the operating manager should not be barred from company management or parts distribution,or be the subject of any ruling that may impede these activities. PJ2 COMPANY AND MANAGEMENT HISTORY. REQUIREMENT The company should not have been a member business of one of the Peugeot brand's networks that has had its contract terminated or not renewed in respect of the activity for which it is applying,following damage to the Peugeot brand, in the last five years. Legal representatives of the company and the operating manager should not have been executive officers of a member business of one of the Peugeot brand's networks that has had its contract terminated or not renewed in respect of the activity for which it is applying, following damage to the Peugeot brand, in the last five years. PJ3 CONTRACTUAL COMMITMENTS. REQUIREMENT Peugeot must be provided with all contracts (e.g.rental and leasing agreements) signed by the legal company with third parties in order to carry out its business from the date that the distribution contract applies. PJ4 LEGAL AUTHORISATION FOR PROPOSED ACTIVITIES. REQUIREMENT The legal company must be able to satisfy the contract at the contract site in all respects including all regulatoryobligations (e.g.pollution and noise standards,planning permission).