PowerGard Harvesting Equipment DSEW044 (10 01 04) Cotton Harvesters

PowerGard Protection Plan Dept. Deere & Company, One John Deere Place, Moline, IL 61265-8089

E-mail: SharedPPP@JohnDeere.com – for exception requests or systems issues.

John Deere Limited ; 166-170 Magnesium Dr. Crestmead, Queensland, Australia 4132 Dealer Support – Toll Free: 1800 642 389 (Australia) / 0800 303 113 (New Zealand)

PPOOWWEERRGGAARRDD TTAABBLLEE OOFF CCOONNTTEENNTTSS

CCOOTTTTOONN HHAARRVVEESSTTEERRSS

CCOOVVEERRAAGGEE RREEVVIIEEWW PowerGard Protection Plan - Program Introduction Program Parameters – Purchase Periods and Term Options Contract Terms, Limitations & Deductibles – Limited and Comprehensive forms

Covered and Non-covered Components – Limited (engine & powertrain) form Covered and Non-covered Components – Comprehensive (full-machine) form

PPOOWWEERRGGAARRDD PPRROOTTEECCTTIIOONN PPRRIICCIINNGG && PPUURRCCHHAASSIINNGG Quoting a Price for the PowerGard Protection Plan Determination of the Cost of PowerGard Processing a PowerGard Protection Plan Contract PowerGard Certificate Cards PowerGard Protection Plan Processing Flow Chart

HHOOWW TTOO SSEELLLL Features and Benefits to Your Customers Features and Benefits to Your Dealership Sales Tips

Customer PPP Rejection Form

CCLLAAIIMMSS PPRROOCCEESSSSIINNGG Advantages of PowerGard Protection Plan

Processing Requirements Reimbursement Provisions Steps to Process Claims Common Claim Situations

Covered Part Replacement Guidelines Definition of a Covered Event

AACCKKNNOOWWLLEEDDGGEEMMEENNTT Dealer Acknowledgement Form

PowerGard Harvesting Equipment DSEW044 (10 01 04) Cotton Harvesters

CCOOTTTTOONN HHAARRVVEESSTTEERRSS -- PPRROOGGRRAAMM IINNTTRROODDUUCCTTIIOONN

PowerGard Protection Plan is an extended warranty for John Deere Harvesting Equipment covering defective components/parts of the engine, powertrain, and a limited number of miscellaneous components due to faulty materials or original workmanship.

PowerGard Protection Plan is not insurance. Due to the possibility of rock damage and other insurance related hazards, PowerGard will not cover components in the crop path.

PowerGard Protection Plan programs are designed to compliment other aftermarket products, such the PowerGard Maintenance Plan, to give a customer more control over the total cost of ownership.

PPOOWWEERRGGAARRDD PPRROOTTEECCTTIIOONN AASS AA CCOOMMPPEETTIITTIIVVEE AADDVVAANNTTAAGGEE

PowerGard gives you the ability to offer more flexibility in extended warranty options. ❖ You can offer PowerGard on new (in warranty) harvesting equipment sales (Limited or

Comprehensive coverage forms) ❖ You can sell your new units with continuous coverage after the JD basic warranty. ❖ You can protect your customers from costly downtime and repair expense.

TTAAIILLOORREEDD CCOOVVEERRAAGGEE OOPPTTIIOONNSS

PowerGard created different coverage options to match the average annual usage of your customers. PowerGard Protection program options are based on engine hours.

Plan A coverage options for new harvesting equipment are targeted to three different types of operators:

• Low hour users = up to 250 hours per year • Average hour users = 251 - 500 hours per year • High hour users/custom cutters = 501 - 1000 hours per year

❖ Present customers with the right coverage option, given their average annual usage.

The “24 total month” PowerGard options under Plan A do not provide engine coverage, as the engine is covered by the JD Basic Warranty for the first 24 months or 2000 hours. However, the PowerGard contracts for “24 total months” do provide extra protection on all PowerGard covered components for the second year that are not covered by the JD Basic Warranty.

❖ These options are perfect for customers who will only use the equipment for two years.

PowerGard Harvesting Equipment DSEW044 (10 01 04) Cotton Harvesters

PPOOWWEERRGGAARRDD PPRROOGGRRAAMM PPAARRAAMMEETTEERRSS FFOORR CCOOTTTTOONN HHAARRVVEESSTTEERRSS

DDEEEERREE BBAASSIICC WWAARRRRAANNTTYY:: 2 years / 2000 hours – Engine 1 year / unlimited – Full Machine

PPRROOTTEECCTTIIOONN PPLLAANN AA:: The PowerGard Protection Plan A is available for new and pre-owned John Deere cotton harvesters. The cotton harvesters must be in the first year of the John Deere basic warranty and have less than 1000 engine hours.

PLAN A “Grace Period”

PLAN A “Delayed Purchase Period”

No Surcharge Applied

+ 40% Surcharge Applies

• Plan A “Grace Period”: PowerGard Protection Plan can be purchased any time from the Deere Basic Warranty start date and up to 95 days or 100 hours without a surcharge.

• Plan A “Delayed Purchase Period”: PowerGard Protection Plan can still be purchased after 95 days or 100 hours and up to 1 year or 1000 hours with a +40% surcharge applied to the pricing.

• All Plan A terms include the Deere Basic Warranty.

PPLLAANN AA TTIIMMEE//HHOOUURR OOPPTTIIOONNSS AAVVAAIILLAABBLLEE Limited (engine & powertrain) Coverage Terms - include the John Deere Basic Warranty

Total Months 24* 24* 24* 36 36 36 36 36 48 48 60 60

Total Hours 500 1000 2000 750 1000 1500 2000 3000 1000 2000 1250 2500

Total Months 72 72 72 72 72 72

Total Hours 1250 1750 2500 3000 3500 4000

* Engine coverage provided under the John Deere Basic Warranty for these options.

Comprehensive (full machine) Coverage Terms - include the John Deere Basic Warranty

Total Months 24* 24* 24* 36 36 36 36 48 48 48 48 48

Total Hours 500 1000 2000 750 1000 1500 2000 1000 1500 2000 2500 3000

Total Months 48 48 60 60 60 60 60 60 60 72 72 72

Total Hours 3500 4000 1000 1500 2000 2500 3000 3500 4000 1000 1500 2000

Total Months 72 72 72 72

Total Hours 2500 3000 3500 4000

* Engine coverage provided under the John Deere Basic Warranty for these options.

Basic Warranty Start Date 95 Days / 100 Hours 1 Year / 1000 Hours

PowerGard Harvesting Equipment DSEW044 (10 01 04) Cotton Harvesters

CCOONNTTRRAACCTT UUPPGGRRAADDEESS // EEXXTTEENNSSIIOONNSS –– PPLLAANN AA::::

Plan A PowerGard Protection contracts purchased on new (in warranty) Cotton Harvesters, can be Upgraded. Upgrades (term extensions) can only be made to the same coverage type (i.e. Limited to Limited, or Comprehensive to Comprehensive) for longer terms (to longer total months, higher total hours, or both) out to the maximum terms available.

◉◉ SSAALLEESS TTIIPPSS:: ➢ Determine your customers average annual usage of their machinery (i.e. <=250

hours, 251-500 hours, or >500 hours per year/season) to better fit their needs.

➢ Utilize the rejection form at the time of sale to document that PowerGard was offered, and the customer rejected the plan. This can protect against special allowance requests.

PowerGard Harvesting Equipment DSEW044 (10 01 04) Cotton Harvesters

PPOOWWEERRGGAARRDD PPRROOTTEECCTTIIOONN PPLLAANN LLIIMMIITTEEDD ((EENNGGIINNEE && PPOOWWEERRTTRRAAIINN)) -- CCOOTTTTOONN HHAARRVVEESSTTEERRSS

EENNGGIINNEE PPOOWWEERRTTRRAAIINN

CCOOMMPPOONNEENNTTSS CCOOVVEERREEDD CCOOMMPPOONNEENNTTSS CCOOVVEERREEDD

Cylinder block Hydrostatic drive pump and motor Rocker arm cover Propulsion transmission Timing gear covers Final drives Head All parts contained inside of any one Oil Pan of these components. All parts contained inside any of the above components. Fuel injection pump and injectors Electronic fuel injection controller MMIISSCCEELLLLAANNOOUUSS Electronic unit injectors CCOOMMPPOONNEENNTTSS CCOOVVEERREEDD Turbocharger Unit drive hydrostatic pump Flywheel Unit drive hydraulic motor Water Pump All parts contained inside of any of these Crankshaft seals/oil seal housings components. Intake and exhaust manifolds attached to the cylinder head Oil coolers mounted directly to the engine Crankshaft torsional damper Starters

EENNGGIINNEE PPOOWWEERRTTRRAAIINN CCOOMMPPOONNEENNTTSS NNOOTT CCOOVVEERREEDD CCOOMMPPOONNEENNTTSS NNOOTT CCOOVVEERREEDD

External pipes and hoses (including but not Steering cylinders limited to turbo charger oil line, injector Brake assemblies pump lines, and air intake hoses and clamps) External linkages Fan and accessory drive belts Pipes and hoses Accessory mounting brackets Rear wheel drive assist units Accessories Rims, tires and tubes Maintenance/Wear items

MMIISSCCEELLLLAANNOOUUSS CCOOMMPPOONNEENNTTSS NNOOTT CCOOVVEERREEDD Unit drive shafts • Bevel gear boxes

• Maintenance/Wear items

NNOOTTEE:: RREEAASSOONNAABBLLEE DDIIAAGGNNOOSSTTIICC TTIIMMEE IISS RREEIIMMBBUURRSSAABBLLEE UUNNDDEERR PPOOWWEERRGGAARRDD..

$$550000 DDEEDDUUCCTTIIBBLLEE AAPPPPLLIIEESS PPEERR CCOOVVEERREEDD EEVVEENNTT.. ((AA CCOOVVEERREEDD EEVVEENNTT IISS AALLLL RREEPPAAIIRR WWOORRKK IINN AA SSIINNGGLLEE WWOORRKK OORRDDEERR CCOOVVEERREEDD BBYY PPOOWWEERRGGAARRDD))

PPOOWWEERRGGAARRDD PPRROOTTEECCTTIIOONN PPLLAANN RREEAASSOONNAABBLLEE DDIIAAGGNNOOSSTTIICC TTIIMMEE IISS PPAAIIDD –– OONNLLYY OONN CCOONNTTRRAACCTTSS WWRRIITTTTEENN OONN//AAFFTTEERR 99//11//0077

CCOOMMPPRREEHHEENNSSIIVVEE CCOOVVEERRAAGGEE FFOORRMM -- CCOOTTTTOONN HHAARRVVEESSTTEERRSS

CCOOMMPPOONNEENNTTSS CCOOVVEERREEDD CCOOMMPPOONNEENNTTSS NNOOTT CCOOVVEERREEDD

All parts of the John Deere tractors are covered under the Comprehensive coverage form, with the exception of the non-covered items listed in the right hand column.

Tyres/Tracks Rubber Hoses, Belts, Seals Radios Batteries Equipment attachments

AG Mgt. Solutions (AMS) Components - receivers - processors - displays

[These AMS items above can get PowerGard extended warranty by purchasing contracts on individual components.]

- wiring harnesses - software / data - storage/key cards

Maintenance or Normal Wear Items, such as, but not limited to:

➢ oil ➢ filters ➢ coolant ➢ fluids (lubricants, conditioners) ➢ hoses ➢ seals ➢ belts ➢ dry brake systems ➢ dry clutch systems/components

DDEEDDUUCCTTIIBBLLEE AAPPPPLLIIEESS PPEERR CCOOVVEERREEDD EEVVEENNTT.. ((AA CCOOVVEERREEDD EEVVEENNTT IISS AALLLL RREEPPAAIIRR WWOORRKK IINN AA SSIINNGGLLEE WWOORRKK OORRDDEERR CCOOVVEERREEDD BBYY PPOOWWEERRGGAARRDD..))

$500 deductible applies for all PPP Claims on Cotton Harvesters

QQUUOOTTIINNGG AA PPRRIICCEE FFOORR PPOOWWEERRGGAARRDD

PPPPPP PPRROODDUUCCTT SSPPEECCIIFFIICC CCAALLCCUULLAATTOORRSS OONN PPPPPP HHOOMMEE PPAAGGEE This is a quick and easy way to quote the PowerGard Protection Plan without having to first process a delivery receipt. Our PowerGard Protection Plan Home Page allows you to select from one of 10 different equipment program Home Pages. Once in the product specific home page (such as Cotton Harvesters), in the right hand navigation panel, you will find an area called “Calculators”, where you can generate quotes (and Proposal Documents) for a variety of coverage forms, contract terms, and models from the various Cotton Harvester price groups. On the Cotton Harvester PPP Program home page, you will find “Calculator” links on the upper right hand side navigation.

NOTE: When a PPP Contract is quoted and sold to your customers, a delivery receipt must be processed in order for PowerGard Contract to be registered in the Contract Purchase system in the PPP web site.

❖ When you are quoting PowerGard with price pages, do not forget that a +40%

surcharge applies to purchases/ during the “Delayed Purchase Period” (later in basic warranty).

◉◉ SSAALLEESS TTIIPPSS:: ➢ Remember to offer PowerGard before you finalize your deal. It is easier and

more economic to include PowerGard costs in the payments up front when the prices are the lowest and the cost can be rolled into the financing arrangements.

➢ Present the cost of PowerGard as either dollars per hour or dollars per month to

break down the cost into something more measurable than a total dollar amount of the contract/coverage.

➢ If customer rejects PowerGard, request customer to:

o check the “rejection box” and initial on the John Deere Purchase Order,

o check the “rejection box” and provide signature on the PowerGard Proposal Document which is generated off the on-line calculator, or

o Have your customer sign the PowerGard Rejection Form at the end of this manual, or the Customer “Accept/Decline” form found in the lower link in the left side navigation bar on the PowerGard Protection home page.

LLIINNKKSS TTOO PPPPPP PPRRIICCIINNGG FFRROOMM ““BBUUIILLDD && PPRRIICCEE”” AANNDD ““QQUUOOTTEE”” IINN JJDD

SSAALLEESS CCEENNTTEERR The PPP pricing is also available from links from other quoting and sales process applications such as the “Build & Price” and “Quote” segments in JD Sales Center. This makes quoting (and not forgetting), the PPP program easier on most equipment quoting transactions.

DETERMINATION OF THE COST OF POWERGARD The cost of the product varies based on the following risk/coverage characteristics: 1. PPP Coverage Form (Limited vs. Comprehensive) 2. Purchase Period – (Grace Period (no surcharge) vs. Delayed Purchase Period (w/

surcharge)

3. The Model of the Cotton Harvester (determines the rating/pricing group)

4. Plan Term – (the Total Month/Total Hour Limit of Coverage selected) 5. Dealership’s own experience (Dealer Adjustment Factor) Regular Plan Base Cost

X Dealer Factor - (these are all currently set at 1.00 for all NA dealers) = Dealer’s Net Cost 6. Country of Use: The New Zealand Additive Application (applies the fixed 1.3 X the

Aust $ price for New Zealand transactions). 7. Dealer Mark-up – prices are marked up 25% over dealer cost to get to the list price

(before GST taxes are applied for Australia & New Zealand).

• We suggest a 25% mark-up from the dealer based cost as reflected in all Protection Fees /List Prices in the Calculators and Contract Purchase system.

8. Applicable GST tax rates for Australian & New Zealand

DDEEAALLEERR AADDJJUUSSTTMMEENNTT FFAACCTTOORR:: The Dealer Adjustment Factor can be established once suitable dealership experience can be established over several years. All dealer factors are currently set at 1.00. Those dealers whose factors change from 1.00 will receive a 30-day notification of their debit/credit, which should be applied on manual quotes. The dealer cost will reflect this debit/credit on the Intranet calculator. It can take years to gather enough experience to have a factor change up or down from a current factor of 1.00.

PPRROOCCEESSSSIINNGG AA PPOOWWEERRGGAARRDD CCOONNTTRRAACCTT

All PowerGard Protection Plan contracts must be entered in the “Purchase Contract” application when they are sold to be valid. Verbal quotes and handwritten schedules of coverage will not be honored unless entered in the Purchase Contract application in the PowerGard Protection home page, and within program parameters. ❖ Any contract, which is not entered in the PPP Contract Purchase application,

will be the selling dealer’s responsibility in the future during the extended warranty period.

To purchase a PowerGard Protection Plan contract, PPP Home Page and select the Purchase Contract link found under the SALES, SERVICE or OFFICE ADMIN sections. Then perform the following steps:

• From the “Purchase Contract” link on the PowerGard Protection Home Page

• Enter the PIN number of the eligible machine

• Answer basic questions on customer& dealership number validation, hour-meter reading, contract purchase date, Limited (engine & powertrain) or Comprehensive (full-machine) coverage, etc.

• Select the eligible time/hour option and plan desired and simply purchase online.

• The time and hour options screen will display the “Reference Number” (Dealer Base Cost) and the applicable “Protection Fees” (List Prices), plus all applicable country GST tax amounts and the grand Total with GST (to quote and charge the customers).

• The screen will then show a “Summary” of all the detailed information on the customer, dealership, PowerGard Protection Plan terms chosen and the dealer base cost (reference number). Check the information on the screen carefully. The question, “Do you wish to purchase this contract?” will appear on the bottom, which will require you to answer by clicking “Next” or “Cancel” or “Reselect Opt”. If OK click “Next” and also click OK to the pop-up box that appears as a last reminder.

• Once successfully registered, you get a notice on the screen. You then have the option to “Print Schedule” (as a proof of purchase for your records or for your customers). Close the document for the contract purchase and then you can enter your next PIN that requires the next contract.

• If you have any questions, please e-mail us at SharedPPP@JohnDeere.com for assistance.

PPOOWWEERRGGAARRDD CCEERRTTIIFFIICCAATTEE CCAARRDDSS The following certificate card, along with the PowerGard Protection terms, will be issued to the customer within approximately 30 days after the PPP contract is electronically purchased.

[ Front of Card ]

[ Back of Card ]

These PowerGard Protection Certificate Cards will be mailed to all customers who purchase the extended warranty coverage after the contracts are processed via the Purchase Contract link on the PowerGard Home Page within Pathways. In addition to these certificate cards, the actual PowerGard Protection contracts terms, conditions and limitations will also be mailed to customers.

PowerGard Protection Plan Certificate Machine Data Protection Plan Information Model

PIN Delivery Date Deductible End Date End Hours Protection Plan Purchased

The John Deere PowerGard Protection Plan is an extended warranty on select covered components providing reimbursement for parts and labour (less any applicable deductible) for failures or breakdowns that occur beyond the John Deere Basic Warranty on John Deere equipment. Selling Dealer Name and Phone Number:

Customer Information: Important Notices:

• All deductibles are applied per covered work order.

[For Tractors Only]

• Commercial Scraper Applications ____ Yes ____ No See the reverse side of this certificate for more details, and reference the actual PowerGard Protection contract for all terms, conditions and limitations.

IMPORTANT NOTICE TO PURCHASER

The PowerGard Protection Plan only applies to covered components of Covered Equipment, which is specifically described in the Schedule Of Coverage and is subject to the terms, conditions, and limitations set forth in the PowerGard Protection Plan. Throughout the PowerGard Protection Plan, the terms “you” and “your” refer to the purchaser of the PowerGard Protection Plan. The terms “we,” “us,” and “our” refer to John Deere Limited (ABN 21 008 671 725) of 166-170 Magnesium Drive, Crestmead, Queensland, AUSTRALIA 4132.) Read the PowerGard Protection Plan carefully. Your rights and remedies under the PowerGard Protection Plan are limited as indicated below. The PowerGard Protection Plan may be terminated prior to expiration under the provisions of the PowerGard Protection Plan. Where permitted by law, JOHN DEERE products carry no implied warranty or condition of merchantability or fitness. The PowerGard Protection Plan is not insurance.

This PowerGard Certificate Card serves as your proof of protection for the equipment scheduled on the reverse side. All coverage, terms, and conditions applicable to the covered equipment and components are determined by the actual PowerGard Protection Plan agreement. All repair work covered by the PowerGard Protection Plan must be performed by an authorised John Deere dealership in order for proper coverage determination and reimbursement under this protection plan. PowerGard Protection is transferable to all subsequent owners. All questions and inquiries should be directed to an authorised John Deere dealership, or call toll free 1800 642 389 (Australia), or 0800 303 113 (New Zealand).

Customer Desires Coverage - Delivery receipt must be processed for new or used units first.

Is the Cotton Harvester eligible? - Is it a John Deere Cotton Harvester? - Is it within time/hour requirements?

Identify available term options? - How long will customer keep the unit? - How many hours per year will they operate?

Quote a PPP price using PG Home Page Calculators, or Build & Price or Quote in JD Sales Center, &

generate a Proposal Document. Close the Sale.

Purchase the PPP Contract - Submit required information - Print PowerGard schedule of

coverage and attach to PowerGard contract (or proposal) and give to the customer as “proof of purchase”

Receive payment for PowerGard from Customer

- Cash - Financing through JDF (or other

financial institution) - Credit Card payment

Customer will receive (from John Deere) a Certificate Card & contract terms in the mail approximately 30 days from date of purchase, verifying the coverage purchased/processed.

PPOOWWEERRGGAARRDD PPRROOCCEESSSSIINNGG FFLLOOWW CCHHAARRTT ((RREECCOOMMMMEENNDDEEDD))

FFEEAATTUURREESS AANNDD BBEENNEEFFIITTSS TTOO YYOOUURR CCUUSSTTOOMMEERRSS The following features and benefits of the PowerGard Protection Plan should be explained to your customers when they purchase a new Cotton Harvester with PowerGard Protection extended warranty:

• Guaranteed Cost of Ownership - With the one-time, up-front PowerGard

Protection fee, the customer’s repair costs on covered items are now budgeted, and their equipment investment is protected. This protection fee is even more manageable when financed over a period of time, as compared to the possible repair bills for catastrophic breakdowns and equipment failures.

• Flexible Coverage Terms to Fit Customer’s Needs - The PowerGard

Protection Plan offers many total month and total hour options to meet the needs of all your customers, whether they put low hours or high hours on their Cotton Harvesters annually.

• Continual Warranty Protection for Engine & Powertrain, or for the Full Machine - The PowerGard Protection Plan is designed by Deere for Deere

Cotton Harvesters and extends warranty protection on either the engine & power train only, or on the full machine (less any wear or maintenance items). This assures the customer that continual warranty protection can be purchased without coverage gaps during their ownership period of the equipment.

• No Pre-Approval on Repairs / No Up-Front Customer Repair Costs Customers do not incur up-front repair costs on covered items since repair costs (less the deductible) are paid directly to the dealership through the program. The customer does not have to pre-pay for repairs and wait for reimbursement.

• Transferable Coverage – With No Transfer Fees - When a Cotton

Harvester covered by PowerGard is sold, any remaining time or hours under the PowerGard Protection is transferable to the next purchaser. This adds value at resale or trade-in time.

• Pays for Parts and Labour - The PowerGard Protection Plan provides

extensive parts and labour coverage, which minimizes the customer’s total out-of-pocket expenses.

• John Deere Dealers available for all service work - With the number of

authorized Deere dealerships country-wide, it is easy to find a dealer who can perform covered repairs under the PowerGard Protection Plan for all customers.

• Ability to Finance Protection Fees - The PowerGard Protection fee can be

financed in various ways, including cash sales, John Deere Finance programs, Farm Plan, Ag Plan or other financing methods.

FFEEAATTUURREESS AANNDD BBEENNEEFFIITTSS TTOO YYOOUURR DDEEAALLEERRSSHHIIPP The following features benefit you and your dealership when selling the PowerGard Protection Plan:

• Aftermarket Profit Opportunity - A profit margin can be made on the sale of

each PowerGard contract. All PowerGard Protection contracts are marked up a recommended 25% on all computer systems and Internet calculators. This mark-up is also reflected in the Protection Fee prices (list) in your pricing pages, calculators, and proposal documents.

• Quicker Inventory Turn - Offering PowerGard on used units that still have

PPP coverage remaining, helps you turn your pre-owned (but still under warranty) inventory quicker and for higher prices and margins.

• Remain Competitive – PowerGard allows you to provide extended full machine

or engine & powertrain coverage on John Deere Cotton Harvesters that is above and beyond programs offered by other manufacturers or independent programs for new equipment.

• Increase Service Revenues / Tie Customer to Dealership – Since

PowerGard requires that repairs and repair reimbursement be completed through authorised Deere dealers, this results in increased service and repair business to your dealership, and helps keep your customers out of independent repair shops.

• Move More Genuine JD Parts – All PowerGard Protection Plan contracts

require that repairs and replacement use only Genuine John Deere Parts by authorised John Deere Dealers.

• Higher Overall Profit Margin on Units Sold with Protection - Adding

PowerGard Protection for the customer’s Cotton Harvester allows you to get higher overall margins on all units sold with PowerGard contracts.

SSAALLEESS TTIIPPSS

11.. OOFFFFEERR PPOOWWEERRGGAARRDD UUPP FFRROONNTT.. PowerGard should always be presented

before the total deal is finalized. Your chances of selling PowerGard are much greater at the time of the tractor sale as compared to after the sale during the “Grace Period,” or in the “Delayed Purchase Period,” which requires a surcharge.

22.. IINNCCLLUUDDEE PPOOWWEERRGGAARRDD CCOOSSTTSS IINN CCUUSSTTOOMMEERR’’SS PPAAYYMMEENNTTSS. Whenever

possible, the final price should be quoted including PowerGard costs. It is more difficult to sell additional products or protection after the customer has agreed to certain payments or total cost of the tractor.

33.. RREEDDUUCCEE PPOOWWEERRGGAARRDD CCOOSSTTSS TTOO TTHHEE LLOOWWEESSTT DDEENNOOMMIINNAATTOORR. When

presenting the cost of the Protection Plan, break down the cost to a measure the customer can best relate. Divide the customers PPP cost by the number of months or total hours they are choosing for protection to arrive at a “Cost Per Month” or “Cost Per Operating Hour” figure.

44.. SSEELLLL TTHHEE PPRROOTTEECCTTIIOONN AASS VVAALLUUEE--AADDDDEEDD.. Always build value first. Describe

and present the PowerGard Protection Plan before you talk about the cost. Do not sell PowerGard by talking about how much the cotton harvester you are selling may need the protection. Tell the customer that John Deere and your dealership are able to offer their customers the option of additional warranty protection that fits their unique needs. Deere and their authorized dealers can better take care of their equipment should they experience a failure or breakdown, by pre-paying a smaller amount up front for the protection, they can hedge against the possibility of large repair bills in the future, should they experience an out of warranty failure.

5. UUSSEE VVIISSUUAALL AAIIDDSS IINN YYOOUURR SSAALLEESS PPRROOCCEESSSS.. Since PowerGard protection is an

intangible product it is important to use marketing and promotional items during the sales process to increase customer awareness. Failure to use visual aids can reduce sales by as much as 50%. Use the Proposal Document as a sales tool to cover the features and benefits of the PPP program, or any other related brochure as a marketing tool.

6. AALLWWAAYYSS AASSKK FFOORR TTHHEE OORRDDEERR.. Many Deere dealers are currently marketing

similar products successfully by including an extended warranty quote on every equipment sale and always asking for the business. Some dealers are able to these on as much as 90% of all sales using this method. Customers will not buy products that are not offered.

7. DOCUMENT ALL POWERGARD PROTECTION PLAN REJECTIONS. If a customer

declines to purchase PowerGard Protection, document it! There are a number of forms to use. You can use the PowerGard Protection Plan Accept/Decline Form located in the lower left hand navigation bar. You can also use the “Accept” and “Decline” boxes on the formal Proposal Documents, located off the PowerGard calculators. Some dealers also use the ‘accept’ / ‘decline’ boxes on the standard John Deere purchase order. Also, within this manual is a PowerGard Rejection Form (next page) that is useful in getting proper documentation. This documentation assures your dealership that you will not absorb repair costs on tractors that were not sold with PowerGard Protection, and can reduce your special allowance exposure as well. With a signed rejection form, you will have documentation that coverage was not purchased. (See the following page. Use it to make copies.)

8. PAID BY POWERGARD “STAMP.” When customers who have purchased

PowerGard bring their tractor in for repair on a covered part, show them the value of having purchased PowerGard. Fill out a repair order showing the work that was completed and associate the price with each repair. Then, write, “PAID by PowerGard Protection Plan” on the repair order so they can SEE that their PowerGard purchase was a good decision in the past. This helps reinforce the value of the PowerGard Protection Plan. You could also use these “Stamped” repair orders to show future customers the value of PowerGard.

PPOOWWEERRGGAARRDD PPRROOTTEECCTTIIOONN PPLLAANN

CCUUSSTTOOMMEERR RREEJJEECCTTIIOONN FFOORRMM

Customer Name: _____________________________________________________ Customer Address: ___________________________________________________ Equipment Make/Model: _________________________ Pin#_________________ Date of Equipment Purchase: ___/___/___ Date PowerGard Rejected: ___/___/___

I have been offered the coverage options available on the equipment listed above provided through the PowerGard Protection Plan. I understand the general terms and conditions of the engine and powertrain additional protection offered in the PowerGard Protection Plan, and have chosen not to purchase any extension options beyond the protection provided by the John Deere basic warranty. With my signature below, I waive any possible rights or claims on warranty related repairs or items once my equipment (listed above) is beyond the original warranty protection in the John Deere basic warranty, in either time or operating hours.

______________________________ _______________________________ Customer Signature Dealership Representative Signature

CCLLAAIIMMSS PPRROOCCEESSSSIINNGG

AADDVVAANNTTAAGGEESS OOFF PPOOWWEERRGGAARRDD PPRROOTTEECCTTIIOONN PPLLAANN::

➢ No pre-approval process.

➢ Experienced Deere claim adjusters, who know the equipment, process all claims.

➢ Provides extensive parts and labour coverage, minimizing customer’s expenses.

➢ Under PowerGard Protection, reasonable diagnostic time is reimbursable.

PPRROOCCEESSSSIINNGG RREEQQUUIIRREEMMEENNTTSS::

➢ Each “covered repair event” (repairs under a single work order/repair visit that are covered by the PowerGard Protection agreement) should be submitted on a work order, similar to regular basic warranty claims. The applicable deductible will apply to each covered event regardless of how it is submitted.

➢ Any authorized Deere dealer can perform the repairs and submit claims under the PowerGard Protection Plan. All repairs should be segmented under PowerGard Protection claim submissions, just as basic warranty claims require.

RREEIIMMBBUURRSSEEMMEENNTT PPRROOVVIISSIIOONNSS::

➢ Dealers will be credited for parts costs at John Deere’s full list price. Labour will be reimbursed at the retail labor rate (shop rate in most cases) times the reasonable number of hours established for the repair. Flat Rate/Service Pricing Guide times and prior claims statistics will be utilized to determine reasonable repair times allowed for labour. In events that repairs are required to be made in the field, please submit for field labour rate and explain the situation/need in the claim submission.

➢ The maximum cumulative reimbursement on any Covered Equipment shall not exceed 100% of the manufacturer’s suggested list price of the new equipment (for Plan A). Over the life of the PowerGard Protection contract, total claims cannot exceed the value of the equipment (when purchased new or used). This maximum applies per individual PowerGard contract purchased. See section H. of the PowerGard Protection Plan contract for details.

Steps to Process Claims

11.. GGAATTHHEERR IINNFFOORRMMAATTIIOONN Each covered event should be submitted on a separate work order. Be sure that all parts and labour (when combined) will exceed the applicable PPP Customer Deductible before submitting the claim in the JD Warranty System.

22.. SSUUBBMMIITT CCLLAAIIMMSS All PowerGard claims for repairs must be electronically submitted in the JD Warranty System (same as basic warranty claims). Refer to the PowerGard Protection Plan contract for complete terms and details of the plan and coverage to be expected on covered components.

• Requests for delay in submitting claims will only be allowed in situations where the required repair parts are on backorder (or other similar circumstances).

33.. PPRROOCCEESSSSIINNGG OOFF CCLLAAIIMMSS All claims reviewed within 24 hours and most settled within 48 hours for PPP by the John Deere Service Processing Center (in Moline, IL, USA).

44.. DDEEDDUUCCTTIIBBLLEE AAPPPPLLIIEEDD Deductible will be applied “per covered event” in the contract (which is Per Work Order). The applicable deductible of $500 will be applied per work order on all covered components on all PPP contracts on Cotton Harvesters. The deductibles should be paid by the Cotton Harvester owner/customer on all covered repair events.

55.. FFIINNAALL AADDJJUUSSTTMMEENNTTSS MMAADDEE Once the claim is approved, the credit issued to the dealer electronically will be the approved amount (less the applicable deductible per covered event/work order).

❖ It is the customer’s responsibility to provide timely notification of needed repairs and have their Cotton Harvester available for repair when such need is known in advance of the protection plan termination. Customers must also have their equipment properly and regularly maintained.

❖ If any outside labour and/or materials are used in the completion of a qualified repair, a description of the charges, such as work performed, supplier, and cost incurred must be typed in the Other Credit field of the claim. Reimbursement for outside labor and materials will be at the actual cost figures.

CCOOMMMMOONN CCLLAAIIMM SSIITTUUAATTIIOONNSS In order to assist you during the sales process and enable you to better pre-determine what potential claims are payable, it is helpful to know and understand common failures. Breakdowns and claim situations that are approved as well as denied are listed below. Examples below are related to engine &/or powertrain failures (only). For customers who purchase the Comprehensive (full machine) coverage form, any/all failures (less issues with tyres/tracks, batteries, radios, attachments, or AMS-related hardware, wiring and software) would be covered under PowerGard Protection, but review the actual PPP Comprehensive Coverage Form for Cotton Harvesters for complete details.

CCOOMMMMOONN AAPPPPRROOVVEEDD CCLLAAIIMM SSIITTUUAATTIIOONNSS Parts and labour to replace …

• malfunctioning fuel injectors

• broken piston rings

• broken transmission case

CCOOMMMMOONN DDEENNIIEEDD CCLLAAIIMM SSIITTUUAATTIIOONNSS • Claim submitted on non-covered parts

• Damage to a covered part, but caused by failure of a non-covered part

• Normal wear & tear situations

• Damage resulting from abuse/misuse of equipment, are alterations not factory approved

• Parts and labor for routine maintenance items (oil/oil filter change-fuel filters, air filters)

CCOOVVEERREEDD PPAARRTT RREEPPLLAACCEEMMEENNTT GGUUIIDDEELLIINNEESS The following guidelines apply to all PowerGard claims. If you feel the situation merits consideration outside of these guidelines, discuss and obtain prior approval from the PowerGard Claims Unit at 1-866-866-1212, Options 1, 4, plus 5-digit extension of the claim representative.

➢ If the repair of a failed component (ex. 4WD differential) leads to the identification of other worn (but non-failed) parts not directly related to the repair (such as transmission parts), the replacement of those non-failed parts is the customer’s responsibility. PowerGard coverage terms do not apply to reconditioning, whether in the Limited (engine & powertrain) or Comprehensive (full machine) coverage forms. Replacing serviceable or re-usable parts is not covered by PowerGard.

➢ The decision to repair or replace a component should be made on the basis of the lowest cost alternative. This applies to all components such as, but not limited to, fuel injection pumps or the water pump.

DDEEFFIINNIITTIIOONN OOFF AA CCOOVVEERREEDD RREEPPAAIIRR EEVVEENNTT A “covered repair event” includes work required and reported in the dealer work order on all covered components under the PowerGard Protection agreement.

• broken exhaust valve and repair head damage

• broken timing chain

• failed water pump

• major engine failures

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PPOOWWEERRGGAARRDD PPRROOTTEECCTTIIOONN PPLLAANN

DDEEAALLEERR AACCKKNNOOWWLLEEDDGGEEMMEENNTT

Marketing Unit #_________ Dealer #___________________ (if more than one, list below)

I, _____________________ of_______________________________________ (Authorised dealer or representative) (Dealership name)

have read the instructions, overviews, terms and conditions of both the PowerGard

Protection Plan contract and the PowerGard Protection Plan Administration Manual, and

fully understand the dealership duties and responsibilities of this program. I also

understand that should my dealership participate in this program and fail to abide by the

rules and guidelines pertaining to the PowerGard Protection Plan as set forth in this and

any other administrative manual, this program can be terminated and made unavailable

to my dealership (including those listed below), by Deere & Company.

Signature:_________________________ Date:______________________

_________________________________________ #_____________________ (Dealership name and dealership number) _________________________________________ #_____________________ (Dealership name and dealership number) _________________________________________ #_____________________ (Dealership name and dealership number) _________________________________________ #_____________________ (Dealership name and dealership number) _________________________________________ #_____________________ (Dealership name and dealership number) _________________________________________ #_____________________ (Dealership name and dealership number)