Equipment Demonstration Sales Agreement - Word (09007113)

1CUSTOMER INFORMATION Equipment Purchase Incentive Rental Agreement Dealer Name NAME:

ADDRESS: Address and Phone number

Phone: Cell:

NAME OF CONTACT:

EQUIPMENT LOCATION: Customer WILL NOT REMOVE THE EQUIPMENT FROM THIS LOCATION WITHOUT WRITTEN PERMISSION FROM DEALER

Demonstration Use Fees are Payable in Advance of Use of Equipment

DEMONSTRATION USE TERM USE FEE: MINIMUM USE FEE GUARANTEED ADDITIONAL CHARGES (Specify) Begin Date: ______By Customer $ $ $ End Date: ______

DESCRIPTION OF EQUIPMENT ("EQUIPMENT")

REFERENCE # MODEL DESCRIPTION OF EQUIPMENT PRODUCT IDENTIFICATION NO. HOUR METER PRESENT VALUE READING

TOTAL PRESENT VALUE ▸

CUSTOMER TYPE MARKET USE (Check One) (Check One)

Non-governmental Agriculture Forestry Mining & Quarrying Underground □ S Small Fleet (less than 10) □ 17 General Utility □ 21 Harvesting □ 34 Coal Mining □ 50 Energy Related Pipeline □ M Medium Fleet (10-24) □ 13 Livestock/Feedlot/Dairy □ 24 Log Loading & Handling □ 31 Metallic Mining □ 82 Gas/Water/Electric □ L Large Fleet (25-74) □ 15 Row Crop/Small Grain □ 22 Reforestation/Site Prep. □ 36 Stone/Aggregate □ V Very Large Fleet (≥ 75) □ 16 Specialty Crop □ 23 Road Building & Maint. □ 80 Recycling Utilities □ 93 Nursery & Landscaping □ 43 Sewer & Water Systems Fleet size = number of Building □ 84 Landfill/Refuse Rental & Lease Companies □ 81 Telephone Company self-propelled , off-road, □ 42 Non-residential □ 96 Independent Rental Company construction machines □ 41 Residential Material Handling □ 90 John Deere Other in the customer's fleet □ 47 Demolition □ 75 Asphalt/Concrete Prod. Dealership/Rental Fleet □ 71 Airport Runways/Aprons (owned, leased or rented □ 77 Brick, Clay, Glass □ 94 Golf Courses for 3 months or longer) Earthmoving □ 85 Chemical Plant Road Building □ 92 Highway Mowing (site/prep/pad/found) □ 61 Manufacturing & Ind. Use □ 48 Bridge Const & Maint. □ 95 Light Duty Maint. Governmental □ 40 Non-residential □ 56 Port/Steve/Bulk Hdlg □ 49 Hwy & Street Const/ Maint. □ 35 Oil flied □ 2 Federal Govt. □ 39 Residential □ 76 Sand, Gravel & Stone □ 51 Hwy/Stl/Parking Lot Paving □ 87 Parks □ 3 State/Province □ 12 Land improvement □ 86 Steel Mill □ 67 Scrap Handling □ 74 Railroads □ 4 County □ 78 Environmental Cleanup □ 79 Cemeteries □ 5 City/Town/Village □ 6 Armed Forces

Dealer maintains an Equipment Purchase Incentive value and therefore agrees to pay a Use Fee to Dealer Rental Program (“the Program”), in compliance with during the Demonstration Use Term. MCA §15-6-138, §15-6-202 and §15-24-301. The purpose of the Program is to allow prospective Customer understands and agrees that title to the customers the opportunity to use Equipment from Equipment shall remain in the Dealer's name and that Dealer's inventory to determine suitability of the the Equipment is part of Dealer's inventory and shall Equipment for customers' use through operating the remain so unless Customer purchases the Equipment. Equipment in the Field and to familiarize customers Dealer retains the right to sell the Equipment and, at with the operation of the Equipment. Customer desires Dealer's option, replace the Equipment with a similar to participate in the Program and to put the described machine at any time during the Demonstration Use Equipment to use in the field for the period of time set Term. forth above. Customer represents it may purchase the Equipment from Dealer if the Equipment proves suitable during the Demonstration Use Term. Customer understands that its use of the Equipment will cause wear and tear on the Equipment and diminish its sales 1 Dealer will notify Customer if Dealer intends to exercise this option, and Customer will have three (3) business Dealer hereby agrees that Customer may use the days following such notice in which to exercise the Equipment identified above ("Equipment") for the term purchase option provided herein or return the and subject to payment of the Use Fee set out above. Equipment to Dealer. Upon return of the Equipment to Use Fee payments shall be made to Dealer at the Dealer, the Demonstration Use Term hereunder shall address shown above, subject to the provisions of terminate, and the parties will enter into a new original Paragraph 4 hereof. The Equipment will be transported Equipment Demo/Sales Agreement covering the to and from Dealer's place of business during the replacement machine. Such new Agreement shall be, at Demonstration Use Term at Customer's expense. a minimum, for the remainder of this Agreement's Customer also agrees to pay any additional charges Demonstration Use Term and have a Use Fee rate no noted above upon or before receiving the Equipment greater than the rate for the use of the Equipment from the Dealer. hereunder. Neither party shall claim any depreciation on the Equipment.

It is contemplated that the Equipment will be operated Customer assumes all risks and liability for and agrees for not more than: to hold Dealer and its assigns harmless from all personal injuries and deaths, property damage, suits, NO. OF HOURS NO. OF HOURS NO. OF HOURS claims (including third party claims), losses, expenses, IN ANY ONE DAY IN ANY ONE WEEK IN ANY ONE MONTH costs, and attorney fees, (including costs and fees necessary to enforce this provision) arising from or in connection with the Customer's use, possession, Customer agrees to pay additional Use Fees prorated at entrustment to others, or transportation of the the applicable daily, weekly or monthly rate for each Equipment. Customer, at Customer's own expense, will hour the Equipment is used in excess of such time. The carry general liability insurance with limits of liability additional Use Fee for excess hours of use will be paid not less than $1,000,000 per occurrence and at the time the Equipment is returned or, if the $1,000,000 aggregate, unless greater liability limits are Equipment is demonstrated/used for more than thirty specified herein. days, on the first day of the month following such use. If an hour meter is furnished, (1) Customer agrees to Customer agrees to furnish a certificate of insurance to keep it connected to the Equipment and in good Dealer's satisfaction evidencing Customer's compliance working condition at all times, and (2) it will be used as with the foregoing requirement and name the Dealer as the conclusive measure of the number of hours of an additional insured on the Customer's general liability operation. policy.

If Customer fails to return the Equipment by the end of the Demonstration Use Term, Customer will pay additional Use Fees, prorated at one and one-half times the normal Use Fee, for each day that the Equipment remains unreturned. POLICY NO. PER OCCURRENCE LIMIT AGGREGATE LIMIT

INSURER DATES OF COVERAGE AGENT

3 Equipment is of a size, design and capacity selected by Customer Customer shall indemnify Dealer against all loss or damage to the and that Customer will return the Equipment to Dealer in as good Equipment while it is out of Dealer's possession. The amount of any condition as received, reasonable wear and tear excepted, by the end such loss or damage will be based on the present value shown of the Demonstration Use Term. If the Equipment is not in such above. Damage to the Equipment, other than a total loss, will not good condition upon its return to Dealer and Dealer elects to repair abate or excuse the making of Use Fee payments. Customer agrees it, Customer will pay for such repairs at Dealer's regular shop rates. to use and care for the Equipment in a careful and prudent manner. PURCHASE ELECTION: Customer agrees to pay all operating and maintenance expenses while the Equipment is out of the Dealer's possession, and to make Upon or before the end of the Demonstration Use Term, Customer or secure any needed repairs. All repairs shall be at Customer's may elect to purchase the Equipment for the "Total Present Value" expense, except to the extent that Dealer performs repairs and specified in this Agreement, and may apply to such purchase price all obtains compensation for doing so from the manufacturer. To the Use Fees previously paid less an amount equal to 1% of the Total extent permitted by law, neither Dealer, its assigns, the wholesale Present Value of the Equipment for each month of use . For example, distributor nor the manufacturer makes any representation or if the Customer uses the Equipment for 5 months and elects to promise as to the quality, performance or freedom from defect of the purchase the Equipment, Customer shall receive a credit against the Equipment, and NO IMPLIED WARRANTY OF MERCHANTABILITY OR purchase of the amount of Use Fees paid by Customer less 5% of the FITNESS IS MADE. Neither Dealer, its assigns, the wholesale Total Present Value of the Equipment. An election to purchase will distributor or the manufacturer will be liable for any incidental or be evidenced by execution of a purchase order form supplied by consequential damages which may result from the use, performance Dealer. or failure of the Equipment. Customer acknowledges that the

THIS AGREEMENT IS SUBJECT TO ALL OF THE TERMS AND CONDITIONS SET OUT BELOW.

DEALER - The equipment demonstrated hereunder was set up, inspected and, if new, adjusted according to factory recommendations before delivery. Operation and servicing have been explained to the Customer

______SIGNATURE DATE Customer - All new equipment to be demonstrated hereunder was received with Operator's Manuals, and operation and servicing have been explained to me.

______SIGNATURE DATE Its: ______

1. Addition of Accessories: Customer will not, without Dealer's written consent, install any accessories or devices on the Equipment if such installation will impair the originally intended function or use of the Equipment. All accessories or devices affixed to the Equipment will become the property of Dealer unless such accessory or device can be removed without in any way affecting the originally intended function or use of the Equipment. Any damage to the Equipment caused by the removal of such accessories or devices will be repaired at Customer's expense. 2. Compliance with Regulations. Customer will comply with all laws and regulations relating to ownership, possession, use or maintenance of the Equipment. 3. Inspection: Customer will, whenever requested, advise Dealer of the exact location of the Equipment. Dealer and its representatives may, for the purpose of inspection, enter upon any job, building or place where the Equipment is located at any reasonable time. Dealer may remove the Equipment without notice to Customer if, in the opinion of the Dealer, it is being used beyond its capacity or in any other manner improperly cared for or abused. 4. Assignment. Customer agrees that Dealer may assign this Agreement and all right, title and interest of Dealer in and to the Equipment, and all sums due or to become due to Dealer hereunder (of which assignment Customer hereby waives notice), and Customer agrees to recognize such assignment. Customer's obligation to pay Use Fees under this Agreement will not as to any such assignee be subject to any diminution arising out of any breach of any obligation hereunder or other liability of Dealer to Customer. Customer may not assign this Agreement. Customer further agrees to make Use Fee payments directly to Dealer’s assignee, if any, upon and following receipt from assignee of evidence of assignment and a written request to do so, and Dealer agrees to recognize any payment so made as satisfaction of Customer’s obligation to make payment hereunder. 5. Default; Termination of Agreement by Dealer or its Assignee. If Customer fails to make any Use Fee payment when due, attempts to sell or encumber the Equipment, ceases operating, institutes or has instituted against it proceedings under any bankruptcy or insolvency law, makes an assignment for the benefit of creditors or fails to comply with any other provision of this Agreement, or if any attachment execution writ or process is levied against the Equipment or any of Customer's property, or if for any reason Dealer deems itself insecure or the Equipment unsafe, Dealer may terminate the Demonstration Use Term hereunder by giving Customer written notice thereof, in which event Customer will deliver the Equipment to Dealer on demand, and Dealer may enter upon any job, building or place where the Equipment is located and take possession of it without notice to Customer. In the event of such termination, Customer agrees to pay all guaranteed Use Fees and all other amounts due, damages for any injury to the Equipment, legal expenses, costs of removal of the Equipment from the possession of Customer, and all freight, storage, transportation and other charges incurred in such removal and return to Dealer at its place of business. The parties further agree that Dealer’s Assignee, if any, may terminate the Demonstration Use Term hereunder and take possession of the Equipment upon any of the events specified above, including without limitation assignee's determination that its interest is insecure or the Equipment is unsafe, regardless of whether Dealer concurs in the assignee’s judgment or desires to terminate the Agreement. The parties further agree that, in the event an assignee elects to terminate the Agreement, Customer shall pay to assignee all amounts due, damages for any injury to the Equipment, legal expenses, and costs of removal of the Equipment from the possession of Customer. 6. Construction: This is an agreement for the use and demonstration of the Equipment only. Nothing herein will be construed as conveying to Customer any right, title or interest in or to the Equipment, except and unless Customer exercises the purchase option provided herein. 7. Guaranteed Use Fee - Return of Equipment: Provided the guaranteed Use Fee set forth herein is or has been paid, Customer may return the Equipment and terminate the Agreement on three days' notice to Dealer. 8. Taxes: The Equipment is part of Dealer's inventory and neither party shall treat the Equipment differently for tax purposes. Customer agrees to pay all taxes that may be levied or assessed upon the Equipment during the period of time the Equipment is in Customer's possession to the extent such taxes are levied or assessed based upon Customer's use or possession of the Equipment. 9. General: Time is of the essence of this Agreement. Dealer's failure at any time to require strict performance by Customer of any provision of this Agreement will not waive or diminish Dealer's right thereafter to demand strict compliance with that or any other provision. Waiver by Dealer of any default will not waive any other default. This Agreement may not be modified except by a written revision signed by the parties hereto. Customer acknowledges receipt of a signed copy of this Agreement.

MEDA/2013