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Demonstrator Policy and Agreement

In consideration for the dealership providing you with a demonstrator, it is expressly understood that you will comply with the following policies and procedures:

  1. All demonstrators are assigned at the absolute discretion of the Dealer Principal.
  2. The demonstrator may be removed from your possession at any time without notice or replacement.
  3. In the event of termination of your employment with the dealership, regardless of the reason, you will immediately surrender the vehicle to the General Manager.
  4. Use of the demonstrator is restricted to commuting between your residence and the dealership and driving for business purposes. Incidental personal stops are permitted while commuting between your residence and the dealership or driving for business purposes.
  5. You must abide by all local, state and federal laws regarding a motor vehicle and are personally responsible for any traffic violations, parking tickets or fines.
  6. You must possess a valid Driver's License and have a driving record with minimal or no violations within a rolling three-year period before you can be issued a demonstrator. You will sign a Motor Vehicle Record Request which allows our insurance carrier to order your driving record anytime during your employment with the dealership. Any subsequent violations may result in surrender of the demonstrator assigned to you at the absolute discretion of management.
  7. The consumption of alcohol or any controlled substance by you or any passenger is strictly prohibited in, or while operating the demonstrator.
  8. Use of this demonstrator is strictly limited to you and no one else.
  9. The demonstrator cannot be driven more than 75 miles from the dealership without the consent of the General Manager. Under no circumstances will the demonstrator be available for personal use except as provided in paragraph 4.
  10. Keys must be removed and the vehicle locked whenever left unattended.
  11. The attachment of any type of trailer hitch or hook-up to the demonstrator or the towing of any type of trailer is strictly prohibited.
  12. Any traffic accidents or damage to the demonstrator must be reported immediately to the General Manager or your supervisor. If you are at-fault in the accident, you will be required to pay all costs not covered by the dealership's insurance policy including, but not limited to, the deductible.
  13. The vehicle must be on the dealership's premises during working hours and be available to other personnel for demonstration purposes. No personal property is to be kept in the demonstrator and the dealership will not be held liable for loss of same.

A dealer license plate will be issued to you for use on the demonstrator only. This license plate is assigned to the demonstrator and must be turned in for reassignment. You are responsible for charges incurred by the dealership for replacement of a dealer license plate lost while on a demonstrator assigned to you.

The interior and exterior of the demonstrator must be maintained in a clean and orderly condition, ready for sale. No smoking is allowed in any demonstrator vehicle.

You are responsible for seeing that scheduled maintenance services are performed on the demonstrator at the proper time and/or mileage intervals.

You are personally responsible for any and all repairs due to abnormal wear and tear including, but not limited to, scratches, dings and dents.

Use of seat belts by driver and passengers is mandatory.

I have read this entire document and fully understand its contents. By my signature below, I agree to comply with these policies and procedures and acknowledge that my failure to adhere to them may result in disciplinary action up to and including termination of my employment.

In addition to the conditions outlined in the Demo Agreement and Policy, I agree to secure and provide the dealership with a current copy of my Motor Vehicle report. I agree to provide this report upon signing the Demo Agreement and on an annual basis for as long as I am provided a Demonstrator Vehicle.

I understand my failure to provide such a report could result in my forfeiting the use of the Dealership provided Demonstrator Vehicle. I also understand that a poor driving record could lead to my forfeiting the use of a Demonstrator Vehicle.

Employee                                                      

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Dealer Principal                                                      

Date                                                      

THIS FORM IS PROVIDED AS A SAMPLE ONLY. PLEASE CONSULT YOUR ATTORNEY REGARDING THE SPECIFIC WORDING OF YOUR OWN DEMONSTRATOR POLICY STATEMENT. THE INTERNAL REVENUE SERVICE HAS SPECIFIC RULES IN PLACE REGARDING DEMONSTRATOR USE AS A TAXABLE FRINGE BENEFIT. PLEASE HAVE YOUR CPA OR TAX CONSULTANT DETERMINE HOW THOSE RULES WILL APPLY TO YOUR DEMONSTRATOR PROGRAM.

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