Atlas Copco Canada Extended Warranty 2016 -V4

Atlas Copco Mining and
Rock Excavation Technique

Canada

Atlas Copco Construction and Mining Canada

Part of Atlas Copco Canada Inc. Visitors’ address: Telephone: +1 289 562-0100 Reg No: 13395 6458
Fax: +1 289 562-6194
30 Montrose, 1025 Tristar Drive,
www.atlascopco.com
Dollard-des-Ormeaux, QC H9B 3J9 Mississauga, ON L5T 1L5

Canada Canada

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Extended Warranty Agreement

The following Agreement has been concluded between______________
(Customer), and Atlas Copco Canada (Supplier).
Product specification
1.1 The Supplier undertakes to offer the following extended warranty
package as described in the following Extended Warranty Agreement for
the following equipment:

Rig Type:
Rig Serial No.:
Rock drill Type
( if required):
Serial No of
Rock drill
(if required).:

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Extended Warranty Support

1.0 Atlas Copco Equipment Extended Warranty Proposal
Atlas Copco’s intent is to offer an extension of the basic standard warranty provided with
the purchase of the Atlas Copco equipment:

1. Provide Extension of the Standard equipment warranty to the term life outlined in
Table 1.1

2. All warranty will be as per the standard warranty policy in Appendix A

3. Extended warranty can be purchased anytime during the initial warranty period, up
to the end of the original warranty. If warranty is purchased for machines that have
been running an initial equipment audit will be conducted at the start of the
extended warranty period.

4. With the extended warranty coverage Atlas Copco will include a quarterly Rig
Scan Audit which will fully audit your Atlas Copco equipment and provide you a
full report on the machine condition as well as :
 Identify any safety deficiencies,
 Identify areas of wear to monitor,
 Identify and process any warranty items
 Provide recommended parts lists for any deficiencies found.
 Provide any technical update information.

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Table 1.1 Extended Warranty
Load, Haul, Dump

Equipment Price (CDN) Current Models Included Extended Warranty Coverage
(full warranty listed below includes, new
Scoop trams, $70 000.00 All new scoop trams and equipment base warranty)
Mine trucks Trucks 2 years or 5000 engine hours
(additional 1 year or 3000 engine hours from
the base factory warranty)

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Tunnel & Mining Equipment

Equipment Price (CDN) Current Models Included Extended Warranty Coverage
$80,000.00 (full warranty listed below includes, new
Jumbos drills All new Jumbo drills, equipment base warranty)
(rock drills and Boomer M2C, Boomer 282 2 years or 4000 operating hours
ITH hammers etc. (additional 1 year or 2000 operating hours
are excluded) from the base factory warranty)

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Surface Drills

Equipment Price (CDN) Current Models Included Extended Warranty Coverage
(full warranty listed below includes, new
surface drill $65,000.00 All new surface drills equipment base warranty)
equipment 2 years or 5000 engine hours
(rock drills and (additional 1 year or 3000 hours from the
ITH hammers base factory warranty)
are excluded)

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Large Blasthole Rigs (ADS)

Equipment Price (CDN) Current Models Included Extended Warranty Coverage
(full warranty listed below includes, new
Large surface $95 000.00 Pit Vipers, equipment base warranty)
drills DML/DM 45-50 Series/ 2 years or 8000 engine hours
TH60 and Diamondback (additional 1 year or 2000 engine hours from
water well drills the base factory warranty)

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2.0 Included Items

Quarterly Rig Scan Audits of warrantied equipment is a requirement of the warranty and
are an included benefit of the warranty coverage. With the audits a full report will be
provided to the mine showing the machine condition safety issues, critical repairs, broken
parts as well as identification of future repairs and worn areas. Also during the audit our
technician will recommend and make (with approval) any required machine setting
changes as well any small adjustments or repairs that can be done during the visit will be
completed.

Any audit items identified that have failed or are in a condition that is deemed to fail
shortly, due to normal wear or damage and may cause secondary damage, will be required
to be addressed by the owner, in order to maintain warranty on this item and the items
around it if there is a failure causing secondary damage. ie. Lubrication pumps etc.

During the audit maintenance records may be requested and reviewed to ensure proper
preventative maintenance and operator inspections are being completed.

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3.0 Extended Warranty Requirements

Extended Warranty will be an extension of the current standard warranty policy for the
specified service meter hours in the above table.
Standard Warranty Policy: Appendix A

The customer warrants that:

The equipment operates in environments following accepted normal mining and
construction practices and conditions.

The equipment is used accordingly equipment manuals and for the intended
purpose.

Following of Atlas Copco preventative maintenance program as stated in the equipment
service manual. (Service records may be requested for verification purposes).

To regularly carry out inspections and daily service in accordance with but not
limited to the equipment’s instruction manuals including, rig parameters,
maintenance, maintenance instruction, daily/weekly checks.

Only the Use of Atlas Copco genuine parts for service and repairs or warranty.

Only the use of Atlas Copco fluids or alternate fluids that meet the required
machine specifications.

Scheduling of included quarterly Rig Scan Audits in conjunction with Atlas Copco in
a reasonable time frame of the quarterly requirement.

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Appendix A: Standard Warranty Policy

Atlas Copco
Mining and Rock Excavation Warranty Policy 2015
1. PURPOSE

Efficient processing of warranty claims is an important reflection of the Atlas Copco quality policy.
.
Technical Warranties cover all defects resulting from design, material or workmanship. The warranty is
valid only if the product is used for its intended purpose on the intended unit, and operated and
maintained according to the Atlas Copco instruction manuals. If any parts other than Atlas Copco
Genuine Parts are used, or unauthorized modifications carried out, the warranty for the entire product
may be void.
Atlas Copco must approve any special application of the product, prior to submission of any quotation to
the customer and prior to acceptance of any resulting warranty agreements.

LIMITATION OF LIABILITY
The remedies of the user set forth under the provisions of warranty outlined above are exclusive and the
total liability of Atlas Copco or its distributors with respect to this sale or the equipment and service
furnished hereunder, in connection with the performance or breach thereof, or from the sale, delivery,
installation, repair or technical direction covered by or furnished under this sale whether based on
contract, warranty, negligence, indemnity, strict liability or otherwise shall not exceed the purchase price
of the unit of equipment upon which such liability is based. Atlas Copco, its supplier(s) and its
distributors
shall in no event be liable to the user, any successors in interest or any beneficiary or assignee relating
to
this sale for any consequential, incidental, indirect, special or punitive damages arising out of this sale or
any breach thereof, or any defects in, or failure of, or malfunction of the equipment under this sale
including but not limited to loss of use, lost profits or revenue, interest, lost goodwill or reputation, work
stoppage, impairment of other goods, loss by reason of shutdown, downtime costs, energy costs, loss of
opportunity, lost business, cost of financing, waste of time management or labour, damages (liquidated
or
otherwise) under contracts with others, penalties, fines, loss of use or development of resources, or
nonoperation, increased expenses of operation of the equipment, cost of purchase of replacement
power or
claims of users or customers of the user for service interruption whether or not such loss or damage is
based on contract, warranty, negligence, indemnity, strict liability or otherwise.

Standard Warranty Terms and Conditions

Atlas Copco warrants each Atlas Copco manufactured item delivered to the initial user to be free of
defects in material and workmanship for the period stated in section. “Warranty periods”, and with the
exceptions listed in section “Parts excluded from this warranty”.
Atlas Copco will provide a new part or repaired part at its election, in place of any part, which is found
upon its inspection to be defective in material or workmanship during the period described above.
Assemblies and components are included within this warranty, but machines will not be considered
defective as units, and replacement will be limited to the individual component or parts proven defective.
Such a part will be repaired or replaced without charge to the initial user during normal working hours at
Atlas Copco´s place of business or an Atlas Copco distributor authorized to sell the type of equipment
involved or other establishment authorized by Atlas Copco.
The user must present proof of purchase and date at the time of exercising the warranty.
This warranty does not apply to failures due to abuse, misuse, negligent repairs, corrosion, erosion,

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normal wear and tear, alterations or modifications made to the product without expressed written
consent
by Atlas Copco or failure to follow the recommended operation practices and maintenance procedures
as
provided in the products operating and maintenance publications.
All warranties may be considered to be void if unauthorized parts (non Atlas Copco Genuine parts) are
used or unauthorized repairs or modifications are made to the warranted products.
Fluids and Lubricants used must be Atlas Copco Fluids of the correct specification for each usage,
alternative fluids/lubricants meeting the same specifications could be used unless the required use of
specific lubricant is indicated in the Operator’s Manual, Maintenance Manual or other publications, as
mandatory to keep the original warranty.
Any Service and Maintenance work must be completed and documented in accordance with the
operators manual, Maintenance manual, TSB or other Atlas Copco instructions/standards publications.
Failure to meet the criteria above may result in warranty being declined.

STANDARD WARRANTY PERIOD ON PRODUCTS

Unless otherwise specified, the normal warranty period for new products shall be 12 months from date
of delivery to customer, or hours as specified for each product as listed below.
Atlas Copco is responsible to provide new, remanufactured or repaired parts or component kits needed
to correct the defect.

ADS: (Atlas Copco Drilling Solutions) Terms per product line as outlined below.
o All deephole drills, waterwell drills as well as blasthole drills with DMXX and PVXX model
number: First 6000 hours of operation or 12 months, whichever comes first.
o All drills with a CDMXX model number: First 2000 hours of operation or 12 months,
whichever comes first.
o Technology upgrade kits sold by ADS Capital division: First 1000 hours of operation or 6
months, whichever comes first, under the condition that the installation is completed by a
trained and qualified Atlas Copco representative. This may be extended to 3000 hours/12
months, but must be agreed to with the factory prior to installation taking place and noted in the
order when the order is placed and machine hours documented to MOL (Warranty
Registration) at the time of install.
o Atlas Copco Drilling Solutions warrants undercarriage with complete machine purchase to be
free of defects in material and workmanship, for a period of 24 months, unlimited machine
hours. In the event that any part of a replacement undercarriage is replaced under warranty,
the replaced part will be warranted for the remainder of the original warranty on the
undercarriage.

SED: (Surface Drilling Equipment) First 2000 Diesel engine hours of operation, or 12 months
whichever comes first.
Including:
o Atlas Copco SED Surface crawler drill rigs ( Including COP Rockdrills*, DHR rotation units*,
Yamamoto rockdrills and Montabert rockdrills)
o Atlas Copco SED surface and underground Geotechnical and Exploration drill rigs
o Atlas Copco SED Welltech drill rigs
o Atlas Copco Powercrusher equipment
o Atlas Copco Stonetec equipment

TME: (Tunnelling Equipment) First 2000 hours of operation, or 12 months whichever comes first.
Including:

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o Atlas Copco TME Underground equipment (Including COP Rockdrills* and DHR Rotation
units*).
- Diesel Hydraulic products, Diesel engine hours.
- Electric Hydraulic products, Electrical motor hours.
o Pedestal Boom System (PBS) products,
o Meyco products.
o Unigrout products
LHD: (Load, Haul, Dump) First 2000 hours of operation, or 12 months whichever comes first.
- Diesel Hydraulic products, Diesel engine hours.
- Electric Hydraulic products, Electrical motor hours.
GIA: First 2000 hours of operation, or 12 months whichever comes first. For products without an
hour meter, warranty is based on calendar time.
- Diesel Hydraulic products, Diesel engine hours.
- Electric Hydraulic products, Electrical motor hours.
MRE: (Raise Bore) First 2000 Rotation hours of operation, or 12 months whichever comes first.
*Under the condition that the COP Rockdrill or DHR rotation unit is overhauled by an Atlas Copco
Customer Center or its authorized service dealer. Otherwise, first recommended service/overhaul
interval according to the specific products maintenance instruction, or 12 months whichever comes
first.

.

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Wear parts are excluded from this warranty
Warranty does not cover
1. Fuel, hydraulic and lubricating oil, grease, anti-freeze or filter elements.
2. The replacement of hydraulic pumps, motors and cylinders when the failure could have
been economically repaired by the replacement of a seal or seal kit.
3. Hoses, fittings, seals and other parts requiring replacement as the result of normal use or
wear.
4. Deterioration of parts such as rubber goods or components affected as result of corrosion.
5. Failure of attachments not manufactured or supplied by Atlas Copco.
6. Failures and progressive damage resulting from the use of a non-Atlas Copco approved
part, accessory or consumable.
7. Failures resulting from improper application, operation and maintenance or repair
practices.
8. Damage resulting from negligence, accidents or intentional misuse
9. Towing, hauling loading and unloading costs.
10. Loss or damage caused by transport carrier.
11. Repairs required as the result of improper handling, storage or protection by Distributor or
customer.
12. Distributors or customers poor workmanship.
13. Down time, lost production costs, lost profits or any other consequential damage and costs.
14. Cost of renting or leasing a back-up unit.
15. Transportation expenses for obtaining replacement.
16. Telephone or other communication expenses.
17. Preventative maintenance or operating services, including but not limited to adjustments
and inspections.
18. Freight costs will not be considered as a warranty cost. Freight charges can only be agreed
to if prior agreements with PC justify this consideration.

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19. Force majeure (Act of God)

20. Shock subs or Floating Subs (ACDS Only).

21. Batteries

22. Tires and Tubes

23. Non-Atlas Copco engines, as engines are covered under the Engine OEM warranty policy

The warranty of components or parts thereof on new equipment is limited to the
warranty timeline of the equipment.

Replaced products or parts become the property of the Seller and must be kept for
ninety (90) days in case the Seller requires them for inspection.

This warranty is conditional upon such that the product is used for the purpose for
which it was designed and being subject to, normal commissioning, operation,
maintenance. Also the Seller must receive written notice of a warranty claim within
fifteen (15) days of discovery of an alleged defect.

All warranties shall be considered null and void if unauthorized parts are used or
unauthorized repairs or modifications are made to the warranted products. Effects
of corrosion, erosion and normal wear and tear are specifically excluded from this
warranty. IN NO EVENT SHALL THE SELLER BE LIABLE FOR ANY LOSS,
COST, INJURY OR DAMAGE TO PERSONS OR PROPERTY, FOR ANY
LOSS OF PROFIT OR LOSS OF USE OF THE PRODUCT OR FOR ANY
DIRECT, INDIRECT OR CONSEQUENTIAL DAMAGE OF WHATSOEVER
KIND OR NATURE. In all cases, liability shall be limited to the purchase price of
the product.

THE FOREGOING WARRANTY IS EXCLUSIVE AND IN LIEU OF ALL
OTHER WARRANTIES, EXPRESSED OR IMPLIED, ARISING IN LAW OR
OTHERWISE, INCLUDING WITHOUT LIMITATION, WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND
WARRANTIES AGAINST LATENT DEFECTS. This warranty shall be governed
by the laws of the Province of Quebec and the parties expressly request that this
document be prepared in the English language; les parties reconnaissent qu'ils ont
expressément exigé que les présentes soient rédigés en anglais et s'en déclarent
satisfaits.

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RE-MANUFACTURED MACHINES
For machines that are re-manufactured, the “NEW PRODUCT WARRANTY” shall apply

Replaced products or parts become the property of the Seller and must be kept for
ninety (90) days in case the Seller requires them for inspection.

This warranty is conditional upon such that the product is used for the purpose for
which it was designed and being subject to, normal commissioning, operation,
maintenance. Also the Seller must receive written notice of a warranty claim within
fifteen (15) days of discovery of an alleged defect.

All warranties shall be considered null and void if unauthorized parts are used or
unauthorized repairs or modifications are made to the warranted products. Effects
of corrosion, erosion and normal wear and tear are specifically excluded from this
warranty. IN NO EVENT SHALL THE SELLER BE LIABLE FOR ANY LOSS,
COST, INJURY OR DAMAGE TO PERSONS OR PROPERTY, FOR ANY
LOSS OF PROFIT OR LOSS OF USE OF THE PRODUCT OR FOR ANY
DIRECT, INDIRECT OR CONSEQUENTIAL DAMAGE OF WHATSOEVER
KIND OR NATURE. In all cases, liability shall be limited to the purchase price of
the product.

THE FOREGOING WARRANTY IS EXCLUSIVE AND IN LIEU OF ALL
OTHER WARRANTIES, EXPRESSED OR IMPLIED, ARISING IN LAW OR
OTHERWISE, INCLUDING WITHOUT LIMITATION, WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND
WARRANTIES AGAINST LATENT DEFECTS.

WARRANTY CONSIDERATION TERMS AND CONDITIONS:

All warranty requests require a customer PO along with the completed Warranty Request Form
prior to the request being processed through Atlas Copco. All claims will be “WARRANTY
CONSIDERATION” until the complete inspection of the part, service, and pertinent information,
has been APPROVED by the Service Department. All PARTS and SERVICE that has been
approved will be “credited” or “no charge” to the customer.

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