CAR PLAN POLICY

Policy brief & purpose

Our company car policy describes our guidelines for using company cars. A “company car” is any
type of vehicle our company assigns to employees to support their transportation needs for their
jobs. The Company shall make available to Sales Personnel and Managers a car plan at easy
payment scheme, thereby enabling her better mobility and opportunity of owning a vehicle at the
end of the car plan period.

Scope
This policy refers to all our Sales Personnel, and Mangers who are eligible to receive a company
car and those who drive one as part of their daily job duties.

Policy elements
Employees who are eligible to be assigned a company car fall into three categories:
 Employees who need to travel frequently to meet with customers, partners or vendors.
 Employees who use company vehicles as an indispensable part of their jobs (e.g. truck
drivers and delivery drivers).
 Employees who are given a company car as a benefit attached to their jobs.

Driver’s obligations
We expect employees who drive company vehicles to follow rules. They should:
 Drive safe and sober.
 If applicable, wear glasses or contacts when driving.
 Obey traffic laws in your jurisdiction and be courteous toward other drivers.
 Document driving expenses.
 Monitor gas, tire pressure, and fluid levels.
 Report any damages or problems with their assigned cars to HR as soon as possible.
 Report changes to your driver privileges, such as driver’s license suspension, immediately.
 Do not leave the company car unlocked, unattended or parked in dangerous areas.
 Bring vehicle to scheduled maintenance appointments.
 Do not drive while intoxicated, fatigued, or on medication that affects your driving ability.
 Do not lease, sell, or lend a company vehicle.
 Do not use a phone or text while driving.
 Do not use a company car to teach someone how to drive.
 Do not allow unauthorized drivers to use a company vehicle unless required by an
emergency.

If employees have their driver’s licenses suspended or revoked, they must inform our HR
department. We’ll reassign their company car until they become eligible to drive. Employees who
are fatigued and/or sick should avoid driving if they feel their driving ability is impaired. If sickness
occurs during a business trip that requires the use of a company car, employees should take
regular breaks while driving or ask HR for overnight accommodations, if needed.

Personal use
The company allows the personal use of company vehicles. Personal use includes using the vehicle
for personal errands between business activities, to commute between the workplace and home, or
using the vehicle outside of business hours. All work safety rules continue to apply when a company
vehicle is used for personal purposes.
Accidents

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If employees are involved in an accident with a company car, they should contact our HR
department immediately, so we can get in touch with our insurance provider. Employees
shouldn’t accept responsibility or guarantee payment to another party in an accident without
company authorization.

Employees should follow legal guidelines for exchanging information with other drivers and call
local police if accidents are serious.

Our company’s obligations

We want to ensure that all our employees are safe at work and preserve our company’s legality.
For these reasons, we’ll:
 Make sure cars are safe to drive before assigning them to employees.
 Schedule periodical maintenance to ensure cars remain in good condition.
 Provide a copy of this policy to all employees who are assigned company cars.
 Insure vehicles with a reliable insurance provider.

Drivers are responsible for bringing in their company cars for any maintenance our company
schedules.

We keep records of our fleet with manufacturing date and mileage. We will retire any car that’s
deemed too old or too high in mileage.

We are not responsible for:

Paying fines employees accumulate while driving company cars that they are responsible for
(e.g. for driving too fast.)
Bailing out employees arrested while driving company cars.

Disciplinary Consequences
Employees will face disciplinary consequences if they don’t follow this policy’s rules. For minor
offenses, like allowing unauthorized people to drive a company car or receiving more than two
fines, we may issue reprimands and ultimately revoke the company car.
We may terminate an employee and/or take legal action as needed for more serious offenses.
That can include leasing out a company car for personal financial gain, or causing an accident
while driving intoxicated.

Our company's Sales personnel car plan:

 Budget of Php 400,000.00

 60% of car's cost is shouldered by the company
 40% balance is shouldered by the employee, which will be paid within a period of FOUR
(4) years by way of equal monthly amortizations through salary deduction.
 Car is registered under the company's name.
 Registration, 50% of the insurance coverage under company's account and the
remaining 50% is shouldered by the employee.
 A budget of Php10,000 is given for the yearly maintenance of the car and the remaining
balance is shouldered by the employee
 Reimbursement of gas subject to submission of receipts for official use only.
 Employees must purchase a vehicle that is less than 5 years old.
 The car plan term is for 5 years.

In case of resignation

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 If The Sales Applicable Provisions
Personnel Resigns Or
Is Terminated For
Cause

WITHIN one (1) year to The employee SHALL FORFEIT all his rights to the vehicle ownership
third (3) year of this Car including all payments she has made through salary deduction and the
Plan Agreement Company is authorized and empowered to take immediate possession
of the vehicle wherever it may be located.

In addition, the amount paid by the employeer, in excess of the

maximum allowable amount of the cost of the vehicle SHALL BE
FORFEITED in favor of the Company.

WITHIN the fourth (4th)
or fifth (5th) years of this
Car Plan Agreement
The employee has the option to either:
PURCHASE the vehicle by paying the company the unpaid portion of
the loan plus the unamortized benefit portion.
OR
SURRENDER the vehicle to the Company in which case, the Manager
shall be refunded the amortizations paid on him 40% share multiplied
by the applicable refund rate: (net of 30% depreciation)

AFTER RATE
4th Yr. - 70%
5th Yr. - 60%

Employee’s acknowledgement and confirmation

I HEREBY CERTIFY that I have read and have fully understood the foregoing terms and
conditions of M7 Technology Solutions, Inc. Car Plan Policy and that I accept and confirm the
same completely.

_________________________________________ ________________________
SIGNATURE OVER PRINTED NAME DATE

Approved by:

HR/FINANCE MANAGER GENERAL MANAGER

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