sppm manual

COVER AND FOREWORD SPP 1‐1‐1

of 1

SERVICE POLICY & PROCEDURE MANUAL

Komatsu America Corp

The ultimate goal of service activities at Komatsu and the Distributor is

to drive Customer Satisfaction and ultimately realize Customer Retention.

FOREWORD The purpose of the Service Policy and Procedure Manual is to provide the Distributor with additional details and a practical understanding of the product service related terms outlined in the Sales and Service or Distributorship Agreement between the Distributor and Komatsu. This manual is a live document and will be updated as needed on an ongoing basis. Komatsu will issue Service Policy Letters to announce significant updates to the policies. Minor changes to the policies will simply be noted at the end of each policy document. Komatsu reserves the right to change or cancel any of these policies at any time. A) DEFINITIONS:

1. Distributorship or Sales and Service Agreement: Overarching supply and services agreement between Komatsu and the Distributor. The Service Policies, including this one, are a subset of the Distributorship or Sales and Service Agreement.

2. Komatsu: Komatsu America Corp. 3. Distributor: Authorized Komatsu Distributor. 4. Customer: Machine owner.

B) REVISIONS

Revision Date Content Author 1 12/5/2010 Draft document K. Venkiteswaran, E.

Keane, T. Robson

SPP SECTIONS SPP 1‐2‐1

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Summary of service policy descriptions and policy numbers: # SPP Description SPP #

1 Cover and Foreword 1‐1‐1 a SPP Sections 1‐2‐1

2 Distributor Responsibilities 2‐1‐1 3 Warranty and Coverage Policies Section 1

a Standard Product Warranty Policy 3‐1‐1 b Emission Control Warranty Policy 3‐1‐2 c Electric Drive System Warranty Policy 3‐1‐3 d Allied Suppliers Warranty Policy and Contact Information 3‐1‐4 e Advantage and Advantage Standard Coverage Policy 3‐1‐5 f Parts and Component Warranty Policy 3‐1‐6 g Factory Campaign Coverage Policy 3‐1‐7 h Policy and Special Policy Coverage Policy 3‐1‐8 i Undercarriage Assurance Coverage Policy 3‐1‐9 j Replacement Undercarriage Assurance Coverage Policy 3‐1‐10 k Undercarriage PLUS Coverage Policy 3‐1‐11

Warranty and Coverage Policies Section 2 a Reimbursement Policy 3‐2‐1 b Claim Evaluation, Review and Distributor Reimbursement Procedure 3‐2‐2

4 Training Scheme 4‐1‐1 5 Publications Scheme 5‐1‐1 6 Policies for Other Komatsu LTD Sales Subsidiaries

a ETSI Submission Guideline 6‐1‐1 7 SPP # 7, 8 and 9 are Intentionally Left Open for Future Updates 10 Forms

a Key Distributor Contacts 10‐1‐1 b Receiving Inspections 10‐1‐2 c Consignment Machine Inspection 10‐1‐3 d Pre Delivery and Delivery Reports 10‐1‐4 e 90 Day Revisits 10‐1‐5 f Product Warranty Certificate 10‐1‐6 g Advantage Customer Certificate 10‐1‐7 i Undercarriage Assurance Program Certificate 10‐1‐8 j Undercarriage PLUS Program Certificate 10‐1‐9 k Mining Support Plan 10‐1‐10 l Accident Notice Form 10‐1‐11

m Factory Campaign Refusal Acknowledgement 10‐1‐12 n Wheel Motor Final Drive Failure Timeline 10‐1‐13 o Reimbursement Rate Revision 10‐1‐14 p Repair Service Report Form 10‐1‐15 q Claim Authorization 10‐1‐16

SPP SECTIONS SPP 1‐2‐1

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11 Presentations and Other Resources a Komatsu Claims System 11‐1‐1 b SMAP 11‐1‐2 c TSR System 11‐1‐3 d Komatsu Virtual Campus 11‐1‐4 e Service Extranet Applications 11‐1‐5 f Komatsu Regional Representatives 11‐1‐6 g Guidelines for Documenting Photographs and Technical Data 11‐1‐7

A) REVISIONS

Revision Date Content Author 1 12/5/2010 Draft document K. Venkiteswaran

DISTRIBUTOR RESPONSIBILITIES SPP 2‐1‐1

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SERVICE POLICY & PROCEDURES


DISTRIBUTOR RESPONSIBILITIES

Contents A) PURPOSE .............................................................................................................................. 2 B) GENERAL RESPONSIBILITIES....................................................................................... 2 C) ASSIGN KEY REPRESENTATIVES................................................................................. 2 D) RECEIVING INSPECTIONS.............................................................................................. 3 E) ESTABLISH A MACHINE FILE ....................................................................................... 3 F) INSPECTION OF EQUIPMENT IN STOCK ................................................................... 3 G) PRE-DELIVERY PREPARATION .................................................................................... 3 H) PRE-DELIVERY AND DELIVERY SERVICE ................................................................ 4 I) POST DELIVERY REVISIT SERVICE ............................................................................ 4 J) GENERAL SUPPORT SERVICES..................................................................................... 4 K) MACHINE REGISTRATION AND TRACKING MACHINES IN TERRITORY....... 5 L) WARRANTY AND OTHER COVERAGE POLICY RELATED SERVICES .............. 5 M) TECHNICAL REPORTING................................................................................................ 6 N) ONGOING SERVICE CAPABILITY DEVELOPMENT ................................................ 6 O) ONGOING OPERATIONAL PERFORMANCE REPORTING..................................... 6 P) DEFINITIONS....................................................................................................................... 6 Q) REFERENCES ...................................................................................................................... 7 R) REVISIONS ........................................................................................................................... 7


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A) PURPOSE

This schedule outlines the Distributor’s product service related responsibilities.

B) GENERAL RESPONSIBILITIES Distributor must: 1. Establish a service organization and system capable of responding promptly to Customer needs

and requests. 2. Maintain adequate facilities, tools and equipment, technical publications, service vehicles,

training capability. Employ sufficient qualified personnel for performance of service activities, both in the shop and field, consistent with the population of Komatsu’s machines in the area.

3. Advise the Customer on proper operation of machine and maintenance procedures. 4. Offer quality repair service, preventive maintenance and other product support programs to

the Customer to promote replacement parts sales through service activities. 5. Follow through on Komatsu’s product performance warranties and guarantees to the

Customers. 6. Collect and supply marketing, operational, technical and other information as requested by

Komatsu. C) ASSIGN KEY REPRESENTATIVES

1. Distributor must assign the following key representatives to interface with Komatsu: a. Distributor Representative: person accountable for the Distributor’s performance for the service terms specified throughout this policy manual. The Distributor Service Representative is ideally the key person responsible for all of the service activities at the Distributor – VP or GM of Product Support or Service.

b. Claim Administrator: person responsible for filing Claims with Komatsu. The Claim Administrator will need to be familiar with all of Komatsu’s warranty and coverage policies.

c. FC Coordinator: person responsible for coordinating the completion of Factory Campaigns in the Distributor’s territory.

d. Training Manager: person responsible for technical skill development for the service staff at the Distributor.

e. Technical Communicator: person responsible for interfacing between the Customers and technical staff at the Distributor and Komatsu on complex technical issues.

2. Komatsu requires that the Claim Administrator and the Technical Communicator are certified by Komatsu. The Komatsu Virtual Campus system provides details on certification requirements for these representatives.

3. Distributor may designate more than one representative to the Claim Administrator, FC Coordinator, Training Manager and Technical Communicator positions.

4. Distributor must complete or update FORM KEY DISTRIBUTOR CONTACTS in the event key service personnel at the Distributor or key service representatives change.


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D) RECEIVING INSPECTIONS 1. Distributor must complete a receiving inspection using the RECEIVING INSPECTION FORM

upon receiving a machine from Komatsu. The form includes instructions on completing the inspection and on the form filing procedure.

2. The machines are generally delivered to the Distributor by transportation carriers that are retained by the Distributor or retained by Komatsu on behalf of the Distributor.

3. The purpose of the receiving inspection is to confirm that the machine or the machine component parts are delivered to order specifications.

4. Should Distributor identify shortcomings on the order, the Distributor must replace missing/damaged parts or perform repairs to return the machine to order specifications.

5. Distributor must also complete a receiving inspection using the RECEIVING INSPECTION FORM each time a machine is returned to the Distributor’s yard from rental or demonstration activity.

E) ESTABLISH A MACHINE FILE

1. Distributor must document all service activities specific to each machine retailed or serviced by the Distributor.

2. The documented information (paper form or electronic) must be organized so it is easily searchable by machine model and serial number (“Machine File”).

3. The Machine File should be maintained for a minimum of 7 years from the Distributor’s last service activity for each machine.

F) INSPECTION OF EQUIPMENT IN STOCK

1. There may be situations where Distributors have to store a machine in excess of 30 days from the date of completing the receiving inspection.

2. Distributor must follow the storage guidelines specified in the specific machine’s Operation & Maintenance Manual during the storage period.

3. Once the service procedure outlined in the Operation & Maintenance Manual has been completed, Distributor must also complete the CONSIGNMENT MACHINE INSPECTION FORM.

4. A service needs to be completed every 30 days for a machine in storage. 5. Distributor must replace missing/damaged parts or perform repairs to return the machine to

pre‐storage conditions before delivering the machine to a Customer.

G) PRE‐DELIVERY PREPARATION 1. Distributor must have the capability to provide technical support to a machine before

delivering the machine to a Customer. 2. The Distributor Training Manager must ensure that at least one technician in the branch that is

going to service the machine is capable of troubleshooting and repairing the machine in the event of a breakdown. In some cases, Komatsu may require that the Distributor has a technician certified on a particular machine before allowing retail activity. Please see Training Scheme Section of the policy manual for an overview of Komatsu’s training scheme.

3. The Distributor Training Manager must also ensure that any special tools that are required to troubleshoot or service a machine are available at the Distributor. Distributor can email [email protected] for support with procuring special tools.


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4. The Parts section of Komatsu’s Extranet (https://www.komatsuamerica.net) includes Recommended Parts Stocking Lists (RPL) by machine model. Distributor should have the parts listed on the RPL on hand before delivering the machine to the Customer.

5. Form MINING SUPPORT PLAN provides a framework for the Distributor to ask questions and appropriately prepare to deliver machines to new mining Customers. The Distributor can request the local Komatsu representative for support in completing this form and preparing for the delivery of new machines. Presentation Komatsu Regional Representatives includes a list of Komatsu representatives by Distributor.

6. Komatsu offers product warranty, and various marketing programs including Advantage to support the Distributor in providing value to Customers. Please see Warranty and Coverage Policies Section of the policy manual for details on warranties and other coverage programs. Distributor Claims Administrator should educate the appropriate person delivering the machine to the Customer on all applicable warranties and guarantees for the machine and on Customer requirements to maintain Coverage under these programs.

H) PRE‐DELIVERY AND DELIVERY SERVICE 1. Distributor must assemble and commission a Machine in accordance to latest information

provided in the Field Assembly Manual, Shop Manual, Parts and Service News Letters and Flash News Letters. Please see Publications Scheme Section of the policy manual for Komatsu’s publication scheme.

2. Distributor must complete the PRE‐DELIVERY AND DELIVERY INSPECTION FORM to record the pre‐delivery and delivery conditions of the machine and to ensure maximum machine performance and Customer satisfaction. The Field Assembly Manual may have additional check sheets that the Distributor must complete and save in the Machine File.

3. Distributor must review the machine operation and maintenance with the Customer before transferring ownership of the Machine.

4. Distributor must also review the scope of all of the applicable warranties and coverage policies with the Customer and obtain the Customer’s signature as necessary on the appropriate forms. Please see Warranty and Coverage Policies Section of the policy manual for applicable forms for each warranty or guarantee.

I) POST DELIVERY REVISIT SERVICE

1. Distributor must complete a 90‐day revisit inspection using the 90 DAY REVISIT INSPECTION FORM between 90 and 120 days after delivering the machine to the Customer. Please review 90 DAY REVISIT INSPECTION FORM for details on the inspection and on form filing instructions.

2. The revisit service must be provided free of charge to the Customer.

J) GENERAL SUPPORT SERVICES

1. Distributor must provide repair and maintenance services to support machines in Distributor territory. Time is of the essence in delivery of these services. Distributor will make best efforts to meet market support demands.


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2. Distributor must execute each repair or maintenance intervention in accordance to the directions provided in the Field Assembly Manual, Shop Manual, Parts and Service News Letters and Flash News Letters. In general, Parts and Service News Letters and Flash News Letters contain the most current method to troubleshoot, maintain or repair a machine. Distributor must also use current parts in repairs. Parts substitution and replacement information is available through Komatsu’s parts ordering system.

3. The Distributor Technical Communicator can file a Technical Support Request (“TSR”) available through the Issue Resolution Homepage of Komatsu’s Extranet (https://www.komatsuamerica.net) if additional technical information is required to complete or efficiently manage a repair intervention. Please see Presentation TSR to learn how to access and use the system.

4. Distributor must establish a system to manage telemetric and preventative maintenance information from machines. These sources of information include Komtrax, Komtrax PLUS, PLM and KOWA.

K) MACHINE REGISTRATION AND TRACKING MACHINES IN TERRITORY 1. Distributor must register machine activity such as delivery status or rental activity in Komatsu’s

PRONTO System. Presentation Komatsu Claims System includes information on how to access and use the PRONTO System.

2. If machine information needs to be changed in the PRONTO system, the Distributor should contact their PRONTO Administrator.

3. Distributor must maintain current records on all Komatsu machines in Distributor’s service territory. These records should include the name and address of current Customer. Komatsu Machines in Distributor’s territory include machines retailed by the Distributor and machines that were retailed by third‐parties that are now operating in the Distributor’s territory. Distributor can request a machine to be transferred into or out of their territories or notify Komatsu that a machine has been scrapped by utilizing the Machine Condition Change Form available from the Service Request Forms link located on the Service homepage of Komatsu’s Extranet System (https://www.komatsuamerica.net). Distributor can also add “grey market machines” (machine sold by a party other than Komatsu) to their territory using the Grey Market Registration Form available at the same web location. Komatsu will use this information to notify Distributors about pending factory campaigns.

L) WARRANTY AND OTHER COVERAGE POLICY RELATED SERVICES 1. Distributor will provide services to Customers and file Claims to Komatsu in accordance to the

performance requirements outlined in the Warranty and Coverage Policies Section of the policy manual.

2. In special circumstances, Distributor can receive pre‐approval for specific repairs under any of Komatsu’s Coverage Policies using the FORM CLAIM AUTHORIZATION.


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M) TECHNICAL REPORTING 1. Distributor should submit a Technical Service Information (“TSI”) in Komatsu’s SMAP System if

repetitive or significant failure modes are identified in the Distributor’s territory. Presentation SMAP includes information on how to access and use the system.

2. Distributor must complete and submit FORM ACCIDENT NOTICE if a Komatsu machine is involved in a situation that results in personal injury or property damage. FORM ACCIDENT NOTICE includes information on completing the form and on form filing procedures.

N) ONGOING SERVICE CAPABILITY DEVELOPMENT 1. Distributor’s Training Manager will use Komatsu’s Virtual Campus System to manage training

and development of Distributor service employees and technicians.

O) ONGOING OPERATIONAL PERFORMANCE REPORTING 1. Distributor will support Komatsu representative in gathering and analyzing key Distributor

service operational performance data for benchmarking and continuous improvement purposes on an ongoing basis. Presentation Komatsu Regional Representatives includes a list of Komatsu representatives by Distributor.

2. Distributor will support the Komatsu representative in tracking the ongoing status of the continuous improvement activities through the Joint Work Plan process. The Joint Work Plan is an action log that summarizes the list of key activities that need to be completed in order to realize improvements to a key area of the Distributor’s business. Each activity on the action log includes a responsible party or parties, a deliverable and an expected activity completion date.

P) DEFINITIONS 1. Distributor Service Representative: person accountable for the Distributor’s performance for

the service terms specified throughout this policy manual. 2. Claim Administrator: person responsible for filing Claims with Komatsu. The Claim

Administrator will need to be familiar with all of Komatsu’s warranty and coverage policies. 3. FC Coordinator: person responsible for coordinating the completion of Factory Campaigns in

the Distributor’s territory. 4. PRONTO Administrator: person responsible for maintaining Customer and machine sales

information in Komatsu’s PRONTO system. 5. Training Manager: person responsible for technical skill development for the service staff at

the Distributor. 6. Technical Communicator: person responsible for interfacing between the Customers and

technical staff at the Distributor and Komatsu on complex technical issues. 7. Coverage Type or Coverage Policy: Komatsu policy that specifies reimbursement terms for

specific repairs to Machines. 8. Distributor: Authorized Komatsu Distributor.


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9. Claim: A Claim is a request to Komatsu for reimbursement for services provided by a Distributor under one of Komatsu’s Coverage Policies.

10. Komatsu: Komatsu America Corp. 11. Distributor: Authorized Komatsu distributor. 12. Komatsu Virtual Campus: Komatsu Virtual Campus is Komatsu’s learning management system.

The system is available through the Training link on Komatsu’s Extranet (https://www.komatsuamerica.net). Please see presentation on Komatsu Virtual Campus for instructions on how to gain access and use the system.

Q) REFERENCES

1. TRAINING SCHEME 2. PUBLICATIONS SCHEME 3. Komatsu’s Claims System presentation 4. SMAP presentation 5. Komatsu Virtual Campus presentation 6. Komatsu Regional Representatives presentation 7. Komatsu Extranet presentation 8. CLAIM AUTHORIZATION form 9. KEY DISTRIBUTOR CONTACTS form 10. RECEIVING INSPECTION form 11. CONSIGNMENT MACHINE INSPECTION form 12. MINING SUPPORT PLAN form 13. PRE‐DELIVERY AND DELIVERY INSPECTION form 14. 90 DAY REVISIT INSPECTION form

R) REVISIONS Revision Date Version Content Author 1 12/5/2010 1 Draft document K. Venkiteswaran, B.

Miller

MACHINE STANDARD PRODUCT WARRANTY COVERAGE POLICY SPP 3‐1‐1

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PRODUCT WARRANTY COVERAGE POLICY

Contents A) PURPOSE .............................................................................................................................. 2 B) COVERAGE .......................................................................................................................... 2 C) EXCLUSIONS ....................................................................................................................... 2 D) DISTRIBUTOR RESPONSIBILITIES .............................................................................. 3 E) KOMATSU RESPONSIBILITIES...................................................................................... 4 F) DEFINITIONS....................................................................................................................... 4 G) REFERENCES ...................................................................................................................... 4 H) REVISIONS ........................................................................................................................... 5


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PRODUCT WARRANTY COVERAGE POLICY

A) PURPOSE

Komatsu warrants that a new Machine procured by the Distributor from Komatsu for resale to Customers or for use by the Distributor will be free of defects in material and workmanship. This policy provides an overview of the terms of Komatsu’s Machine Product Warranty Coverage Policy. Product Warranty is also sometimes referred to as Standard Warranty.

B) COVERAGE

1. Komatsu will reimburse the Distributor for specific expenses related to correcting defects in material or workmanship. In general, the repairs executed in correcting these defects should restore the Machine to its operating condition just prior to the failure.

2. Komatsu’s reimbursement will follow the terms outlined in Reimbursement Policy Section of the Warranty and Coverage Policies.

3. The warranty period for the Machine extends for 12 months from the Machine’s FID date with the following exceptions: a. DORF Machines: 15 months from FID date. b. RTS Machines: 12 months of Activity or 18 months from FID date, whichever comes first. c. PC09‐1, PC18MR‐2/3, PC27MR‐2/3, PC35MR‐2/3, PC45MR‐3, PC50MR‐2, PC55MR‐3,

PC78US‐6/8, PC78MR‐6 and PC88MR‐8 have a warranty period of 3 years or 3,000 hours, whichever comes first, per the terms of Marketing News Letter KU173.

C) EXCLUSIONS a. Repairs to components supplied by Allied Suppliers. Please see Allied Supplier Warranty Policy

and Contact Information Section of the Warranty and Coverage Policies for a list of these suppliers and their contact information.

b. Repairs or replacements of: i. Parts that are worn because of use. Examples of wear resulting from use would include,

by way of example but not limitation, deterioration of undercarriage components and machine work equipment, hydraulic cylinder seal leaks, wear of clutch or brake packs, pins or bushings, etc.

ii. Parts that are not procured from Komatsu. c. Operating expenses required to keep the Machine in good operating condition including, by way

of example but not limitation: i. System adjustments. ii. Scheduled maintenance outlined in the Machine Operation and Maintenance Manual

(“O&M Manual”), including the cost of periodic maintenance items such as filters, lubricants, brushes and grease.

iii. Oil analysis condition monitoring program such as Komatsu Oil Wear Analysis (‘KOWA”), including the cost of drawing samples, oil, sampling accessories, postage and analysis report fees.


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iv. The cost of carrying out oil sampling program maintenance recommendations such as early re‐sampling and/or replacement of oil or filters.

d. Failures resulting from: i. Shipment of Machine or replacement parts from any party other than Komatsu. ii. Failure of parts from allied suppliers or parts not procured through Komatsu. iii. Operating the Machine outside the guidelines specified in O&M Manual. iv. Operating the Machine outside of the parameters specified in the Machine specific

Payload Policy or other notices or letters from Komatsu. v. Noncompliance with the maintenance schedule and procedure outlined in the

Machine’s O&M manual. vi. Fuel, lubricant or coolant contamination from any source. vii. Continuing to operate the Machine when oil sampling reports or the Machine monitor

panel, Komatrax PLUS, Komtrax, PLM or any other systems (“Machine Monitoring Systems”) show critical errors, indicate that components are compromised by failures or are performing below specifications, or when Komatsu or the Distributor has requested that components be repaired or removed from the Machine because of an impending failure, Komatsu authorized field campaign or other good cause.

viii. Improper Machine or replacement part storage procedures. ix. Incomplete or faulty repair procedures on previous repairs. x. Improper initialization procedures during Machine or replacement part commissioning. xi. Machine attachments options, accessories, modifications, or work equipment not

authorized in O&M Manual and other materials published by Komatsu for Distributors and Customers or otherwise approved in writing and signed by an engineering officer of Komatsu (example SEST, SFR, etc.).

xii. Work site hazards or falling objects. xiii. Fire, accidents, vandalism, theft, acts of terrorism or war, acts of nature or other causes

beyond the direct control of Komatsu. xiv. Misuse, misapplication, negligence or other misconduct on the part of the Distributor,

Customer or any other person.

D) DISTRIBUTOR RESPONSIBILITIES 1. Distributor will review the terms of Komatsu’s Machine Product Warranty Coverage Policy with

the Customer representative when the Machine is sold to the Customer. FORM Product Warranty Certificate is a copy of the Machine warranty certificate.

2. Distributor will store a copy of the Machine Product Warranty Certificate signed by the Customer for a minimum period of 7 years from the Machine FID date.

3. Distributor will establish and manage an oil condition monitoring for wheel motors on Electric Drive Trucks.

4. Distributor will complete Covered Repairs, store the failed parts and register claims for reimbursement from Komatsu per the terms specified in Reimbursement Policy Section of the Warranty and Coverage Policies.


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E) KOMATSU RESPONSIBILITIES 1. Komatsu will assess Distributor claims per the terms specified in the Claim Evaluation, Review

and Distributor Reimbursement Procedure Section of the Warranty and Coverage Policies.

F) DEFINITIONS 1. Covered Repair: repair that is eligible for reimbursement under one of Komatsu’s policies. A

repair that is eligible for reimbursement from Komatsu has Coverage. 2. Coverage Type or Coverage Policy: Komatsu policy that specifies reimbursement terms for

specific repairs to Machines, Parts or Components. 3. Warranty and Coverage Policies: the framework agreement that specified Komatsu’s Coverage

Policies. 4. Machine: Komatsu manufactured machine eligible for Coverage under one of Komatsu’s

policies. 5. Customer: Machine owner. 6. Distributor: Authorized Komatsu Distributor. 7. Komatsu: Komatsu America Corp. 8. Electric Drive Trucks: Dump trucks powered by diesel electric systems. 9. FID Date: Date on which first Activity is recorded against a Machine in Komatsu’s PRONTO

system. 10. Activity: If a Machine’s “sales status” is not blank in Komatsu’s PRONTO system, the Machine is

“Active”. 11. PRONTO System: Komatsu’s PRONTO System is used by the Distributor to notify Komatsu of a

change in the Sales Status of a Machine. Presentation Komatsu Claims System provides an overview of the PRONTO system.

12. DORF: Machines in Distributor’s rent‐to‐rent fleet. These Machines generally have the status “RENT TO RENT (Z) in Komatsu’s PRONTO system.

13. RTS: Machines in the Distributors rental to sell fleet. These Machines generally have the status “RENT TO SELL (L) in Komatsu’s PRONTO system.

14. SEST and SFRs: Machine modification requests managed by Komatsu’s Marketing Department (see Marketing section at https://www.komatsuamerica.net).

G) REFERENCES

1. Allied Supplier Warranty Policy and Contact Information 2. Reimbursement Policy 3. Claim Evaluation, Review and Distributor Reimbursement Procedure 4. Marketing News Letter KU173 5. Form Product Warranty certificate 6. Presentation: Komatsu Claims System


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H) REVISIONS Revision Date Content Author 1 12/5/2010 Draft document K. Venkiteswaran, J.

Bloodgood, E. Keane, T. Robson, G. Toro

EMISSION CONTROL WARRANTY COVERAGE POLICY SPP 3‐1‐2

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EMISSION CONTROL WARRANTY COVERAGE POLICY



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EMISSION CONTROL WARRANTY COVERAGE POLICY

A) PURPOSE

Komatsu warrants that the Emissions Related Parts on engines in Machines procured by the Distributor from Komatsu for resale to Customers or for use by the Distributor in Canada and USA will be free of defects in material and workmanship. This policy provides an overview of the terms of the Komatsu’s Emissions Control Warranty Coverage Policy.

B) COVERAGE



3. The warranty period for the Emissions Related Parts extends for five years or 3,000 hours, whichever comes first, from the Machine’s FID date.

4. The failure has to pass a two part test in order to quality for this Coverage. a. First, the failure must be caused by a defective Emission Related Part on an engine. These

parts are limited to: i. Fuel pump assembly. ii. Injector assembly. iii. Electronic control system: electronic control module (ECM), ambient air/barometric

pressure sensor, intake manifold pressure sensor, intake manifold air temperature sensor, engine coolant level sensor, engine coolant temperature sensor, high pressure fuel sensor, fuel and rail pressure sensor/actuator, timing pressure sensor/actuator, engine speed sensor, engine position sensor, electronic fuel pump actuator, mass airflow sensor, exhaust after treatment sensor, exhaust gas pressure sensor, turbocharger sensors, exhaust gas recirculation valve sensors, and boost pressure sensor.

iv. Intake system: after cooler core, after cooler, charge air cooler, intake manifold gasket, crossover.

v. Exhaust system: diesel particulate filter assembly, hydrocarbon douser valve and electric pump, exhaust gas recirculation coolers, mixers plumbing, oil boost pump and control valves, and exhaust manifold gasket.

vi. Turbocharger: turbocharger assembly, turbocharger electronic proportional control valve assembly, and actuator assembly.


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vii. Internal engine parts: Closed crank case ventilation system, camshaft, tappets, cylinder head assemblies.

b. Second, the failure of the Emission Related Part must result in one of the following symptoms: i. Excessive white smoke for ambient conditions (excluding cold start aids). ii. Excessive black smoke. iii. Combustion knock. iv. Exhaust gas recirculation system related rough running. v. Fuel control system related rough running. vi. Intake air leakage. vii. Dead miss. viii. Burned exhaust valve. ix. Inability to initiate after treatment regeneration. x. Excessive after treatment regeneration.

C) EXCLUSIONS a. Emission Related Parts on Machines operating outside of Canada and USA. b. Repairs to components supplied by Allied Suppliers. Please see Allied Supplier Warranty Policy

and Contact Information Section of the Warranty and Coverage Policies for a list of these suppliers and their contact information.

c. Repairs or replacements of parts that are not procured from Komatsu. d. Operating expenses required to keep the Machine in good operating condition including, by way

of example but not limitation: i. System adjustments. ii. Scheduled maintenance outlined in the Machine Operation and Maintenance Manual




e. Failures resulting from: i. Shipment of Machine or replacement parts. ii. Failure of parts from allied suppliers or parts not procured through Komatsu. iii. Operating the Machine outside the guidelines specified in O&M Manual. iv. Operating the Machine outside of the parameters specified in the Machine specific



panel, Komtrax PLUS, Komtrax, PLM or any other systems (“Machine Monitoring


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Systems”) show critical errors, indicate that components are compromised by failures or are performing below specifications, or when Komatsu or the Distributor has requested that components be repaired or removed from the Machine because of an impending failure, Komatsu authorized field campaign or other good cause.

viii. Improper Machine or replacement part storage procedures. ix. Incomplete or faulty repair procedures on previous repairs. x. Improper initialization procedures during Machine or replacement part commissioning. xi. Machine attachments options, accessories, modifications, or work equipment not





D) DISTRIBUTOR RESPONSIBILITIES 1. Distributor will review the terms of Komatsu’s Emission Control Warranty Coverage Policy with

the Customer representative when the Machine is sold to the Customer. FORM Product Warranty Certificate is a copy of the Machine warranty certificate that includes the Emission Control Warranty.


E) KOMATSU RESPONSIBILITIES Komatsu will assess Distributor claims per the terms specified in the Claim Evaluation, Review and Distributor Reimbursement Procedure Section of the Warranty and Coverage Policies.



specific repairs to Machines, Parts or Components. 3. Machine: Komatsu manufactured machine eligible for Coverage under one of Komatsu’s

policies. 4. Customer: Machine owner. 5. Distributor: Authorized Komatsu Distributor. 6. Komatsu: Komatsu America Corp. 7. Warranty and Coverage Policies: the framework agreement that specified Komatsu’s Coverage

Policies.


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8. FID Date: Date on which first Activity is recorded against a Machine in Komatsu’s PRONTO system.

9. Activity: If a Machine’s “sales status” is not blank in Komatsu’s PRONTO system, the Machine is “Active”.

10. PRONTO System: Komatsu’s PRONTO System is used by the Distributor to notify Komatsu of a change in the Sales Status of a Machine. Presentation Komatsu Claims System provides an overview of the PRONTO system.


G) REFERENCES 1. Allied Supplier Warranty Policy and Contact Information 2. Reimbursement Policy 3. Claim Evaluation, Review and Distributor Reimbursement Procedure 4. Form Product Warranty certificate 5. Presentation: Komatsu Claims System



ELECTRIC DRIVE WARRANTY COVERAGE POLICY SPP 3‐1‐3

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ELECTRIC DRIVE WARRANTY COVERAGE POLICY



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ELECTRIC DRIVE WARRANTY COVERAGE POLICY

A) PURPOSE

Komatsu warrants that the Electric Drive Parts on Machines procured by the Distributor from Komatsu for resale to Customers or for use by the Distributor will be free of defects in material and workmanship. This policy provides an overview of the terms of Komatsu’s Electric Drive Warranty Coverage Policy.

B) COVERAGE


2. Komatsu’s reimbursement will follow the terms outlined in Reimbursement Policy Section of the Warranty Policy and Coverage Policies.

3. The warranty period for the Electric Drive Parts extends for 24 months from the Machine’s FID date with the exception of 5GDY85 wheel motors.

4. The Electric Drive Parts are specific to Electric Drive Trucks and are limited to: a. Traction alternator assembly. b. Control system group: control cabinet and auxiliary cabinet assembly and subcomponents, and wheel

motor sensors. c. Wheel motor assembly. d. Retard grid assembly including blower motors. e. Power wires and fiber optic cables.

5. The warranty period for 5GDY85 wheel motors extends for 12 months for the Machine’s FID date.

C) EXCLUSIONS 1. Repairs or replacements of:

a. Parts that are worn because of use. b. Parts that are not procured from Komatsu. c. Ducting, tubes and hoses.

2. Operating expenses required to keep the Machine in good operating condition including, by way of example but not limitation: a. System adjustments. b. Scheduled maintenance outlined in the Machine Operation and Maintenance Manual


c. Oil analysis condition monitoring program such as Komatsu Oil Wear Analysis (‘KOWA”), including the cost of drawing samples, oil, sampling accessories, postage and analysis report fees.


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d. The cost of carrying out oil sampling program maintenance recommendations such as early re‐sampling and/or replacement of oil or filters.

3. Failures resulting from: a. Shipment of Machine or replacement parts. b. Failure of parts from allied suppliers or parts not procured through Komatsu. c. Operating the Machine outside the guidelines specified in O&M Manual. d. Operating the Machine outside of the parameters specified in the Machine specific Payload

Policy or other notices or letters from Komatsu. e. Noncompliance with the maintenance schedule and procedure outlined in the Machine’s

O&M manual. f. Fuel, lubricant or coolant contamination from any source. g. Continuing to operate the Machine when oil sampling reports or the Machine monitor

panel, Komatrax PLUS, Komtrax, PLM or any other systems (“Machine Monitoring Systems”) show critical errors, indicate that components are compromised by failures or are performing below specifications, or when Komatsu or the Distributor has requested that components be repaired or removed from the Machine because of an impending failure, Komatsu authorized field campaign or other good cause.

h. Improper Machine or replacement part storage procedures. i. Incomplete or faulty repair procedures on previous repairs. j. Improper initialization procedures during Machine or replacement part commissioning. k. Machine attachments options, accessories, modifications, or work equipment not


l. Work site hazards or falling objects. m. Fire, accidents, vandalism, theft, acts of terrorism or war, acts of nature or other causes

beyond the direct control of Komatsu. n. Misuse, misapplication, negligence or other misconduct on the part of the Distributor,


D) DISTRIBUTOR RESPONSIBILITIES 1. Distributor will review the terms of Komatsu’s Electric Drive Warranty Coverage Policy with the

Customer representative when the Machine is sold to the Customer. 2. Distributor will establish and manage an oil condition monitoring for wheel motors. 3. Distributor will complete Covered Repairs, store the failed parts and register claims for

reimbursement from Komatsu per the terms specified in Reimbursement Policy Section of the Warranty and Coverage Policies.

4. Distributor should use only new and not Reman Parts in completing Covered Repairs. 5. Covered Repairs for certain components including the wheel motors, alternators and grid

blower motors may need to be completed at an authorized rebuild facility. Please contact your Komatsu representative for a list of authorized repair facilities.


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policies. 4. Warranty and Coverage Policies: the framework agreement that specified Komatsu’s Coverage

Policies. 5. FID Date: Date on which first Activity is recorded against a Machine in Komatsu’s PRONTO




8. Customer: Machine owner. 9. Distributor: Authorized Komatsu Distributor. 10. Komatsu: Komatsu America Corp. 11. Electric Drive Trucks: Dump trucks powered by diesel electric systems. 12. SEST and SFRs: Machine modification requests managed by Komatsu’s Marketing Department

(see Marketing section at https://www.komatsuamerica.net). 13. Reman Parts: Reman Parts are parts supplied through Komatsu’s Remanufacturing program.

These part have a part number with the prefix “R”.

G) REFERENCES 1. Reimbursement Policy 2. Claim Evaluation, Review and Distributor Reimbursement Procedure 3. Presentation: Komatsu Claims System



ALLIED SUPPLIER WARRANTY POLICY AND CONTACT INFORMATION SPP 3‐1‐4

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ALLIED SUPPLIER WARRANTY POLICY AND CONTACT INFORMATION

Contents A) PURPOSE .............................................................................................................................. 2 B) ALLIED SUPPLIER CONTACT LIST.............................................................................. 2 C) DEFINITIONS....................................................................................................................... 3 D) REVISIONS ........................................................................................................................... 3


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ALLIED SUPPLIER WARRANTY POLICY AND CONTACTS

A) PURPOSE

This schedule includes contact information for various suppliers whose products are installed on Komatsu machines or are used to service Komatsu machines. These products or components are generally installed at the Distributor or are ordered through the One Stop Shopping (OSS) program. Distributor should contact these Allied Suppliers directly for warranty and quality issues.

B) ALLIED SUPPLIER CONTACT LIST 1. Cummins Inc.

a. Products: engines that are branded Komatsu in the following Machines: HD1500, 730E, 830E, 860E, 930E, 960E, WA1200, PC3000, PC4000, PC5500 and PC8000.

b. Contact: local Cummins distributor (www.cummins.com) 2. Kent‐Moore/SPX

a. Products: service tools b. Phone: +1 (800) 328‐6657

3. ASA Electronics a. Products: observation systems and radios b. Phone: (800) 688‐3135 ext. 128

4. Advanced Thermal Products a. Products: Thermal blankets b. Phone: (800) 826‐8417

5. Allied Systems CompanyASA Electronics a. Products: Winch b. Phone: (503) 625‐2560

6. Hensley Manufacturing a. Products: buckets b. Phone: (800) 433‐3144

7. HKX Corporation a. Products: Hydraulic kits b. Phone: (800) 493‐5487

8. JRB Inc. a. Products: quick couplers, buckets, forks, cab risers, OSS attachments b. Phone: +1 (800) 428‐2538

9. Lincoln Industrial Corp. a. Products: lubrication systems b. Phone: (314) 679‐4200

10. Loadrite a. Products: scale systems


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b. Phone: +1 (919) 459‐2101 11. PSM Corporation

a. Products: thumbs b. Phone: +1 (800) 373‐3514

12. Rockland Manufacturing a. Products: buckets and thumbs b. Phone: +1 (800) 458‐3773

13. Sy‐Klone International a. Products: Pre‐cleaner products b. Phone: +1 (800) 448‐6563

14. Topcon Positioning Systems, Inc.

a. Products: Machine control systems b. Phone: +1 (800) 245‐8300

15. Valley Rubber, LLC a. Products: Bed liners b. Phone: +1 (800) 662‐5667

16. Werk Brau Company, Inc

a. Products: Utility attachments b. Phone: +1 (800) 537‐9561

17. Young Manufacturing Company a. Products: Dredging long fronts, material handling fronts, cab risers, generator sets b. Phone: +1 (800) 321‐9090

C) DEFINITIONS 1. Coverage Type or Coverage Policy: Komatsu policy that specifies reimbursement terms for

specific repairs to Machines, Parts or Components. 2. Distributor: Authorized Komatsu Distributor. 3. Komatsu: Komatsu America Corp. 4. Third Party: Entity other than the Distributor or Komatsu.

D) REVISIONS Revision Date Content Author 1 12/5/2010 Draft document L. Scott, K.

Venkiteswaran

ADVANTAGE AND ADVANTAGE STANDARD COVERAGE POLICIES SPP 3‐1‐5

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ADVANTAGE AND ADVANTAGE STANDARD COVERAGE POLICY AND PROCEDURES

Contents A) PURPOSE .............................................................................................................................. 2 B) COVERAGE .......................................................................................................................... 2 C) EXCLUSIONS ....................................................................................................................... 2 D) DISTRIBUTOR RESPONSIBILITIES .............................................................................. 2 E) KOMATSU RESPONSIBILITIES...................................................................................... 3 F) DEFINITIONS....................................................................................................................... 3 G) MARKETING PROGRAMS ............................................................................................... 4 H) REFERENCES ...................................................................................................................... 4 I) REVISIONS ........................................................................................................................... 4


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ADVANTAGE AND ADVANTAGE STANDARD COVERAGE POLICY AND PROCEDURES

A) PURPOSE Komatsu offers extended coverage programs on certain machines (“Advantage”). Please visit Advantage under the Service section of the extranet (https://www.komatsuamerica.net) for a complete list of programs available by machine (“Coverage Type”). The Advantage extended coverage programs serve as an insurance policy against defects in material and workmanship and extends beyond the Komatsu’s Product Warranty period. Distributors can purchase an Advantage program for a specific machine and then resell the coverage to a Customer. This policy provides an overview of the terms of the Advantage program.

B) COVERAGE Komatsu will reimburse Distributor for specific expenses or portions of specific related to correcting defects in material or workmanship to certain components (“Covered Items”) on a machine where the Distributor has purchased an Advantage program (“Machine”). In general, the repairs executed in correcting these defects should restore the Covered Items to their operating condition just prior to the failure. The Covered Items depend on the Coverage Type purchased (see FORM Advantage Customer Certificate form), and the coverage period is specific to the program purchased for the Machine. Komatsu’s reimbursement will follow the terms outlined in Reimbursement Policy Section of the Warranty and Coverage Policies.

C) EXCLUSIONS The following are not eligible for Coverage: 1. Items listed under Section 2 (Exclusions and limitations) of the FORM Advantage Customer

Certificate. 2. Covered Item failures resulting from:

a. Failures of parts from allied suppliers or parts not procured through Komatsu. b. Machine options, accessories, modifications, or work equipment not authorized for use

by Komatsu. c. Improper initialization procedures during Machine commissioning. d. Shipment damage to Machine or Covered Items. e. Improper Machine storage procedures. f. Incomplete or faulty repair procedures on previous repairs or maintenance completed

by the Distributor.

D) DISTRIBUTOR RESPONSIBILITIES 1. Distributor may request access to purchase Advantage coverage by emailing

[email protected]. 2. Distributor will use the purchase tools provided within the Advantage pages on the extranet to

review and purchase Advantage coverage. In an event where the type of program required by


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the Distributor is unavailable, Distributor can submit a “Special Request” using the extranet screens (https://www.komatsuamerica.net). Alternatively, the Distributor can request the special coverage via email to [email protected].

3. Distributor will review the terms of the Distributor and Customer agreement (FORM Advantage Customer Certificate) with the Customer representative. KOWA Oil sampling is required for Construction and Mining machines only.

4. Distributor will carry out the functions specified under the Section 4 (Distributor Responsibilities) of the FORM Advantage Customer Certificate for each Advantage agreement in effect.


6. Distributor should accept Customer request for transfer of Coverage to a new Customer under Section 6 of FORM Advantage Customer Certificate as long as the Machine is relocated within the country the Machine was sold or relocated to the United States of America or Canada.

E) KOMATSU RESPONSIBILITIES 1. Komatsu will respond promptly to Distributor requests for access to the Advantage purchase

tool and to special coverage request. 2. Komatsu will provide Distributor pricing or other rebates or incentives on Advantage purchases

per the terms in specified under Section G of this policy. 3. Komatsu will assess Distributor claims per the terms specified in the Claim Evaluation, Review

and Distributor Reimbursement Procedure Section of the Warranty and Coverage Policies.

F) DEFINITIONS 1. Compact Construction Machines: Crawler Carriers, Wheel loaders smaller than WA150,

Excavators smaller than PC120, Crawler Dozers smaller than a D37, Crawler and Track Skid Steer Loaders, and Backhoe Loaders.

2. Mining Machines: Crawler dozers larger than D275, Dump trucks larger than HD605, Wheel loaders larger than WA700 and Excavators and shovels larger than PC1250.

3. Construction Machines: Komatsu machines that are neither Compact Construction or Mining Machines.

4. Covered Repair: repair that is eligible for reimbursement under one of Komatsu’s policies. A repair that is eligible for reimbursement from Komatsu has Coverage.

5. Coverage Type or Coverage Policy: Komatsu policy that specifies reimbursement terms for specific repairs to Machines.

6. Machine: Komatsu manufactured machine eligible for Coverage under one of Komatsu’s policies.

7. Customer: Machine owner. 8. Distributor: Authorized Komatsu Distributor.


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G) MARKETING PROGRAMS Date Program

Start Program End

Program Name: Summary Program Letter

1 4/1/2010 tbd Salesperson incentive and Distributor rebate 12‐1‐1 H) REFERENCES

1. Form Advantage Customer Certificate 2. Reimbursement Policy 3. Claim Evaluation, Review and Distributor Reimbursement Procedure

I) REVISIONS Revision Date Content Author 1 12/6/2010 Draft document K. Venkiteswaran, C.

Wasik

PARTS AND COMPONENT WARRANTY COVERAGE POLICY SPP 3‐1‐6

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PARTS AND COMPONENT WARRANTY COVERAGE POLICY



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PARTS AND COMPONENT WARRANTY COVERAGE POLICY

A) PURPOSE

Komatsu warrants that Parts and Components procured by the Distributor from Komatsu for resale to Customers or for use on Distributor Machines will be free of defects in material and workmanship. This policy provides an overview of the terms of Komatsu’s Parts and Component Warranty Coverage Policy.

B) COVERAGE

1. Komatsu will reimburse the Distributor for specific expenses related to correcting defects in material or workmanship. In general, the repairs executed in correcting these defects should restore the Part or Component to their operating condition just prior to the failure.


3. The warranty period for the Part or Component extends for 12 months from: a. The date the Part or Component is installed on a Machine if the Distributor installs the Part

or Component; or b. The date the Part or Component is sold to the Customer if the Customer or Third Party

installs the Part or Component. 4. Components are called out separately from other Parts because Komatsu will reimburse the

Distributor for specific additional expenses in correcting defects identified during the warranty period (see Reimbursement Policy for details). Components refer to the items listed in Table 1.

Table 1: List eligible for Component Warranty Coverage

Item # Component Item # Component 1 Engine assembly 6 Differentials 2 Torque flow assembly [torque convertor,

transmission, and drop box if applicable] 7

Final Drives

3 Power module [torque convertor, transmission and steering case]

8 Piston pumps

4 Transmissions 9 Piston Motors 5 Torque Convertors 11 Reman Parts

C) EXCLUSIONS

a. Repairs or replacements of: i. Part or Components that are worn because of use. Examples of wear resulting from use

would include, by way of example but not limitation, oil consumption and high blow‐by


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pressure on engines, hydraulic cylinder seal leaks, wear of clutch or brake packs, pins or bushings, etc.

ii. Part or Components that are not procured from Komatsu.

b. Operating expenses on required to keep the Part or Component in good operating condition including, by way of example but not limitation:

i. System adjustments. ii. Scheduled maintenance outlined in the Machine Operation and Maintenance Manual




c. Failures resulting from:

i. Shipment of Machine or replacement parts. ii. Failure of parts from allied suppliers or parts not procured through Komatsu. iii. Operating the Machine outside the guidelines specified in O&M Manual. iv. Operating the Machine outside of the parameters specified in the Machine specific



panel, Komtrax PLUS, Komtrax, PLM or any other systems (“Machine Monitoring Systems”) show critical errors, indicate that Part or Components are compromised by failures or are performing below specifications, or when Komatsu or the Distributor has requested that Parts or Components be repaired or removed from the Machine because of an impending failure, Komatsu authorized field campaign or other good cause.

viii. Improper Machine, Part or Component storage procedures. ix. Incomplete or faulty repair procedures on previous repairs. x. Improper initialization procedures during Machine, Part or Component commissioning. xi. Machine attachments options, accessories, modifications, or work equipment not






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D) DISTRIBUTOR RESPONSIBILITIES 1. Distributor will review the terms of Komatsu’s Parts and Component Coverage Policy with the

Customer representative when a Part or Component is sold to the Customer. 2. Distributor will establish and manage an oil condition monitoring for wheel motors on Electric

Drive Trucks. 3. Distributor will complete Covered Repairs, store the failed parts and register claims for

reimbursement from Komatsu per the terms specified in Reimbursement Policy Section of the Warranty and Coverage Policies.





policies. 4. Customer: Machine owner. 5. Distributor: Authorized Komatsu Distributor. 6. Komatsu: Komatsu America Corp. 7. SEST and SFRs: Machine modification requests managed by Komatsu’s Marketing Department

(see Marketing section at https://www.komatsuamerica.net). 8. Reman Parts: Reman Parts are parts supplied through Komatsu’s Remanufacturing program.

These part have a part number with the prefix “R”.

G) REFERENCES 1. Reimbursement Policy 2. Claim Evaluation, Review and Distributor Reimbursement Procedure



FACTORY CAMPAIGN COVERAGE POLICY SPP 3‐1‐7

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FACTORY CAMPAIGN COVERAGE POLICY



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FACTORY CAMPAIGN COVERAGE POLICY

A) PURPOSE

Komatsu may issue Factory Campaign Letters to announce Factory Campaigns to the Distributor. A Factory Campaign is a tool for Komatsu to provide the Distributor reimbursement for specific expenses related to updating or repairing certain Machines in the Distributor’s service territory. Certain Factory Campaigns may be Mandatory, requiring that the Distributor complete the updates or repairs to all the Machines in the Distributor’s service territory on a pro‐active basis. Other Factory Campaigns may be Fix As Fail, whereby the Distributor should complete the repair or update if a the specific type of failure covered by the Factory Campaign is reported by the Customer. Factory Campaigns may be issued to Machines that have other Coverage Policies in effect such as Standard Product Warranty or Advantage. In such cases, the Factory Campaign Coverage will serve as the primary facility for reimbursing the Distributor. If the Machine has a pertinent Advantage Coverage and the Factory Campaign Coverage is subject to proration, the Distributor can utilize the Advantage Coverage to claim reimbursement for the value prorated under the Factory Campaign Coverage. This policy provides an overview of the terms of the Komatsu’s Factory Campaign Coverage Policy.

B) COVERAGE

1. Komatsu will reimburse the Distributor for specific expenses outlined in the Factory Campaign Letter to complete the repairs or updates outlined in the letter on specific Machines eligible for the Factory Campaign.

2. The repairs or updates to the Machine must be completed within the time frame specified in the Factory Campaign letter to be eligible for Coverage. Komatsu will additionally reimburse the Distributor for replacing or repairing parts on the Machine that were damaged because the intervention was not completed prior to preventing the failure addressed by the Factory Campaign Letter. There may however, be certain Factory Campaigns that need to be completed on a pro‐active basis where the intervention is completed before the subject part or parts in the Factory Campaign fail(s). In these cases, the Factory Campaign Coverage will not cover the additional expenses. For example, if a Factory Campaign required preventative maintenance for early identification of a potential failure and the failure occurs because the preventative maintenance was not completed in a timely fashion, the additional costs related to the failure will not be reimbursable.

3. Komatsu’s reimbursement will follow the terms outlined in each Factory Campaign Letter. The Reimbursement Policy Section of the Warranty and Coverage Policies has some general information on rates for the Distributor’s labor and mileage related expenses on Factory Campaign services.


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C) EXCLUSIONS Services outside of the scope specified in the Factory Campaign Letter. Each Factory Campaign Letter may include limitations on Machines eligible for the repair or update based on the Machine’s year of manufacture, service meter reading, application, location etc.

D) DISTRIBUTOR RESPONSIBILITIES 1. Distributor will review the terms of each Factory Campaign Letter to determine if the particular

Factory Campaign is applicable for any Machines in the Distributor’s service territory. 2. Distributors are required to complete Mandatory Factory Campaign interventions for all the

eligible Machines in the Distributor service territory. Distributor will be responsible for any costs for damages arising from not completing Mandatory Factory Campaigns within the timeframe specified in the Factory Campaign Letter.

3. Distributor must contact Customers that own Machines that are eligible for Mandatory Factory Campaigns to explain the scope of Factory Campaign and agree on a schedule to complete the repair or update. If the Customer refuses the Factory Campaign, the Distributor must complete a FACTORY CAMPAIGN REFUSAL ACKNOWLEDGEMENT FORM and secure the Customer’s signature. This letter should be stored in the Machine File and a copy should be attached on a Claim against the Factory Campaign to the subject Machine per the Reimbursement Policy Section. The requested reimbursement value requested for this type of Claim should be $0 (include with other “Special Circumstances”).

4. Distributor will explain the scope of a Fix as Fail Factory Campaign’s Coverage to a Customer and complete the update or repair per the Factory Campaign Letter when a failure is reported.

5. Distributor can request additional Machines be added to the scope of a particular Factory Campaign or for the Coverage term to be extended by sending an email to [email protected].

a. The email for adding Machines to a Factory Campaign should include the campaign number, and the following information for each Machine being included in the request: model, serial number, service meter reading, Customer name and the reason why the Machine should be added to the scope of the Factory Campaign.

b. The email requesting the Coverage term on a Factory Campaign be to extended should be received no later than 30 days from the Factory Campaign End Date published in the Factory Campaign Letter and should include: campaign number, Machine model and serial number for Machines that are expected to be incomplete as of the Factory Campaign end date, the reason the delay in completing the campaign on these Machines, and the requested extension to the term.

6. Distributor can submit a CLAIM AUTHORIZATION FORM to a Komatsu representative to request Coverage for a Fix as Fail Campaign to be applied on a pro‐active (before failure basis) to specific Machines that are in production applications for key Customers.

7. For certain Mandatory Factory Campaigns, Komatsu may ship parts required for the repairs or updates to the Distributor’s main branch location. The parts will be shipped to the attention of


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the Factory Campaign Coordinator. The Distributor will be required to ship these parts between the main branch and various other Distributor and Customer locations as needed to complete the campaign.

8. After the completion of a Covered Repair, Distributor will file claims for reimbursement per the terms specified in the Factory Campaign Letter and the Reimbursement Policy Section.

9. Distributor is responsible for all cost related to a Factory Campaign if the repair is completed after Coverage period has expired. In these cases, the Distributor should file a Claim for $0 using the instructions outlined in the Reimbursement Policy Section to notify that the Factory Campaign for a particular Machine has been completed.

E) KOMATSU RESPONSIBILITIES 1. Komatsu will review requests received at [email protected] and through CLAIM

AUTHORIZATION FORMs on a case‐by‐case basis. Komatsu may or may not be able to accept the Coverage changes requested by the Distributor.

2. Komatsu will assess Distributor claims per the terms specified in the Claim Evaluation, Review and Distributor Reimbursement Procedure Section of the Warranty and Coverage Policies.



specific repairs to Machines, Parts or Components. 3. Mandatory Factory Campaign: A Factory Campaign that required the Distributor to complete

the updates or repairs to all the Machines in the Distributor’s service territory on a pro‐active basis.

4. Fix As Fail Factory Campaign: A Factory Campaign that requires the Distributor to complete the repair or update if a the specific type of failure covered by the Factory Campaign is reported by the Customer.

5. Factory Campaign Letter: Letter from Komatsu announcing a Factory Campaign. See Komatsu Extranet Service Applications presentations for instructions on how to access Factory Campaign Letters.


7. Customer: Machine owner. 8. Distributor: Authorized Komatsu Distributor. 9. Komatsu: Komatsu America Corp.

G) REFERENCES 1. Reimbursement Policy 2. Claim Evaluation, Review and Distributor Reimbursement Procedure 3. CLAIM AUTHORIZATION FORM


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4. FACTORY CAMPAIGN REFUSAL ACKNOWLEDGEMENT FORM 5. Komatsu Extranet Service Applications

H) REVISIONS Revision Date Content Author 1 12/5/2010 Draft document K. Venkiteswaran, T.

Robson, M. Hayes

POLICY & SPECIAL POLICY COVERAGE POLICY SPP 3‐1‐8

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POLICY AND SPECIAL POLICY COVERAGE POLICY



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POLICY AND SPECIAL POLICY COVERAGE POLICY

A) PURPOSE

Komatsu offers policy coverage to Distributors to support Customers with expenses for certain out of warranty failures or for costs that are not covered by one of Komatsu’s other Coverage Policies. Policy is a commercial goodwill gesture from Komatsu and is intended to ensure that the Customer receives fair value for investing in the Komatsu product and to reinforce the Customer’s confidence in the Machine, the Distributor and Komatsu. Distributor is expected to manage this Coverage Policy in a pro‐active manner by offering upfront discounts to Customers where value was not received. Policy Coverage is not intended to supplement the Distributor’s allowances for doubtful accounts or counteract the Distributor’s inability to enforce invoice payment terms with Customers. This policy provides an overview of the terms of the Komatsu’s Policy and Special Policy Coverage.

B) COVERAGE

1. Komatsu will reimburse the Distributor for a prorated portion of specific expenses incurred in: a. Correcting early hour unplanned failures on Machine parts. In general, the repairs

executed should restore the Machine to its operating condition just prior to the failure. b. Providing Customers with make‐up equipment when the Customer’s Machine has to be

removed from production for repairs. 2. Komatsu’s reimbursement will follow the terms outlined in Reimbursement Policy Section of

the Warranty and Coverage Policies. Komatsu’s contribution towards the total expenses in both the Policy Coverage and the Special Policy Coverage is subject to proration.

3. Policy Coverage is available only for Distributors in Canada and USA and has a set proration level specified in the Section Q of the Reimbursement Policy Section of the Warranty and Coverage Policies.

4. Special Policy Coverage is available to all Distributors, and is subject to proration from Komatsu on a case‐by‐case basis. The cost for the repair has to exceed $2,500 for Compact Construction and Construction Machines and $5,000 for Mining Machines to be eligible for Special Policy. Distributors in Canada or the USA should use Special Policy Coverage when: a. Requesting Komatsu for a proration level that is different than the one specified under

Policy Coverage. b. The repair or type of expense is not eligible for Policy Coverage. c. The repair is to a Distributor owned Machine.

C) EXCLUSIONS The following are not eligible for Coverage: 1. Repairs to Distributor owned Construction Machines that do not have or have never had an

Advantage Coverage.


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2. Repairs to Machines that have eligible Coverage under one of Komatsu’s other policies such as Standard Warranty or Factory Campaign Coverage.

3. Repairs that have had rejected claims under one of Komatsu’s other policies for not meeting the Claim submission or acceptance requirements.

4. Repairs to Machines that have applicable Komatsu backed repair and maintenance programs. 5. Repairs to Machines that have applicable Third Party or Distributor backed insurance policies.

For example, a damper failure on a Machine with a Distributor backed power train insurance policy will not be eligible for coverage under this policy if the insurance policy is in effect. A boom failure on the same Machine will however, be eligible for coverage under the terms of this policy.

6. Repairs to optional equipment on the Machine that are not purchased from Komatsu (examples: dump body, rims or tires on dump trucks and quick couplers, buckets or hydraulic hammers on hydraulic excavators, etc.).

7. Repairs or failure of non‐Komatsu sourced parts installed on the Machine. 8. Machine or component part failures resulting from:

a. Failures of parts from allied suppliers or parts not procured through Komatsu. b. Incomplete or faulty repair procedures on previous repairs by the Distributor or

Customer. c. Improper initialization procedures during Machine commissioning. d. Shipment damage. e. Fire or accidents. f. Vandalism or theft. g. Acts of terrorism or war. h. Work site hazards or falling objects. i. Acts of god (earthquakes, floods, etc.).

D) DISTRIBUTOR RESPONSIBILITIES

1. Distributor will assess value received by the Customer in each case, and develop a fair arrangement to share the repair costs with the Customer. Distributor should approach the Customer with a proposal to share in the costs before receiving a request for support from the Customer.

2. For Special Policy Coverage only: once the Distributor has an agreement with the Customer, the Distributor should then determine an equitable sharing arrangement for the remaining expenses between the Distributor and Komatsu.




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F) DEFINITIONS 1. Compact Construction Machines: Crawler Carriers, Wheel loaders smaller than WA150,

Excavators smaller than PC120, Crawler Dozers smaller than a D37, Crawler and Track Skid Steer Loaders, and Backhoe Loaders.


3. Construction Machines: Komatsu machines that are neither Compact Construction or Mining Machines.




7. Customer: Machine owner. 8. Distributor: Authorized Komatsu Distributor. 9. Claim: A Claim is a request to Komatsu for reimbursement for services provided by a

Distributor under one of Komatsu’s Coverage Policies.

G) REFERENCES 1. Reimbursement Policy 2. Claim Evaluation, Review and Distributor Reimbursement Procedure


Bloodgood, E. Keane, T. Robson, G. Toro, M. Hayes, A. Rizzo

UNDERCARRIAGE ASSURANCE COVERAGE POLICY SPP 3‐1‐9

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UNDERCARRIAGE ASSURANCE COVERAGE POLICY



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UNDERCARRIAGE ASSURANCE COVERAGE POLICY

A) PURPOSE

Komatsu offers Undercarriage Assurance Program Coverage under Price and Policy Letter KA 795 to support Distributors in differentiating the Komatsu product specified in the marketing letter from the competition at the time of sale. The program provides performance guarantees for specific Undercarriage Components and the guarantees extend beyond the Product Warranty Coverage period. This policy provides an overview of the terms of the Komatsu’s Undercarriage Assurance Coverage Policy.

B) COVERAGE

1. Komatsu will reimburse the Distributor a prorated portion of specific expenses related to correcting defects in material or workmanship to Undercarriage Components. Whenever possible, the repairs executed in correcting these defects should restore the Machine to its operating condition just prior to the failure.

2. Komatsu’s reimbursement will follow the terms outlined in Reimbursement Policy Section of the Warranty and Coverage Policies. Komatsu’s contribution towards the total expenses is subject to the proration level specified in the Section Q of the Reimbursement Policy Section of the Warranty and Coverage Policies.

3. The assurance period for the Undercarriage Components extends for 36 months or 4,000 hours, whichever comes first, from the Machine’s FID date.

4. Table 1 summarizes the conditions for Coverage. The Coverage is limited by specific parts that qualify as Undercarriage Components, the mode of failure of the parts, and the condition of the part at the time of failure. Table 1: Conditions for Coverage eligibility

Undercarriage Component Mode of Failure Condition to qualify for Coverage1

1 Link assembly (less shoes/pads)

Breakage/crack or leak Link height less than 100% worn

Bushing less than 100% worn

2 Track and carrier rollers Breakage/crack or leak Roller less than 100% worn

3 Front idlers Breakage/crack or leak Idler less than 100% worn

4 Sprocket teeth Breakage/crack Sprocket segment less than 100% worn

1 The % worn compares the critical wear dimension of a part to the dimension of the part when completely worn as specified in Komatsu’s Undercarriage or Shop Manual.


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C) EXCLUSIONS a. Repairs to Machines that have not been registered for the Coverage per the terms specified

under Section D below. b. Leak after pin and bushing turn. c. Repairs or replacements of parts that are 100 % worn. d. Repairs or replacement of parts that are not procured from Komatsu. e. Operating expenses required to keep the Machine in good operating condition including, by way

of example but not limitation: i. Track tension adjustments. ii. Scheduled maintenance outlined in the Machine Operation and Maintenance Manual

(“O&M Manual”), including the cost of periodic maintenance items such as lubricants, grease, and re‐torque of shoes/pads.

f. Failures resulting from: i. Shipment of Machine or replacement parts. ii. Failure of parts from allied suppliers or parts not procured through Komatsu. iii. Failure of a component or part not covered by this program. iv. Operating the Machine outside the guidelines specified in O&M Manual. v. Noncompliance with the maintenance schedule and procedure outlined in the

Machine’s O&M manual. vi. Continuing to operate the Machine when leaks or vibration indicate that the

Undercarriage Components are compromised by failures or are performing below specifications, or when Komatsu or the Distributor has requested that components be repaired or removed from the Machine because of an impending failure, Komatsu authorized field campaign or other good cause.

vii. Improper Machine or replacement part storage procedures. viii. Incomplete or faulty repair procedures on previous repairs. ix. Improper initialization procedures during Machine or replacement part commissioning. x. Machine attachments options, accessories, modifications, or work equipment not


xi. Work site hazards or falling objects. xii. Fire, accidents, vandalism, theft, acts of terrorism or war, acts of nature or other causes

beyond the direct control of Komatsu. xiii. Misuse, misapplication, negligence or other misconduct on the part of the Distributor,

Customer or any other person. Misuse of misapplication includes the use of shoes/pads on the Machine that do not match the application. Example ‐ failures resulting from the use of wide shoes in hard rock applications.


1. Distributor must review the terms of Komatsu’s Undercarriage Assurance Coverage Policy with the Customer representative. FORM Undercarriage Assurance Program Certificate is a copy of the certificate for the Customer.


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2. Distributor must register for the Coverage using the Undercarriage Assurance link in the Service homepage of Komatsu’s Extranet System (https://www.komatsuamerica.net) within 30 days of the date of final sale of the Machine to a Customer for Customer owned Machines, or within 30 days of bringing the Machine into the Distributor rental fleet for Machines in the DORF program.

3. If possible, the Distributor should set‐up an ongoing program to monitor the wear to the Undercarriage Components for each Machine that is covered by the program. Komatsu’s eCARE program available over the extranet (https://www/komatsuamerica.net) can be used as a facility to manage such a program.



F) DEFINITIONS


2. Coverage Type or Coverage Policy: Komatsu policy that specifies reimbursement terms for specific repairs to Machines, Parts or Components.


4. Customer: Machine owner. 5. Distributor: Authorized Komatsu Distributor. 6. Komatsu: Komatsu America Corp. 7. Warranty and Coverage Policies: the framework agreement that specified Komatsu’s Coverage







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12. DORF: Machines in Distributor’s rent‐to‐rent fleet. These Machines generally have the status “RENT TO RENT (Z) in Komatsu’s PRONTO system.

G) REFERENCES 1. Reimbursement Policy 2. Claim Evaluation, Review and Distributor Reimbursement Procedure 3. Form Undercarriage Assurance Program Certificate 4. Presentation: Komatsu Claims System 5. KA 795 marketing policy letter.


Bloodgood, E. Keane, T. Robson, G. Toro, B. Boebel

REPLACEMENT UNDERCARRIAGE ASSURANCE PROGRAM COVERAGE POLICY SPP 3‐1‐10 Page 1 of 5



REPLACEMENT UNDERCARRIAGE ASSURANCE PROGRAM COVERAGE POLICY





REPLACEMENT UNDERCARRIAGE ASSURANCE PROGRAM COVERAGE POLICY

A) PURPOSE

Komatsu offers the Parts PPL 835 marketing program to support Distributors in differentiating Komatsu genuine parts from the competition. The program provides performance guarantees for specific Undercarriage Components for the machines specified in the program letter. The performance guarantees extend beyond the Parts Warranty Coverage period. This policy provides an overview of the terms of the Komatsu’s Replacement Undercarriage Program Coverage Policy.

B) COVERAGE

1. Komatsu will reimburse the Distributor a prorated portion of specific expenses related to correcting defects in material or workmanship to Undercarriage Components. Whenever possible, the repairs executed in correcting these defects should restore the Machine to its operating condition just prior to the failure.


3. The coverage period for the Undercarriage Components extends for 36 months or 4,000 hours, whichever comes first, from the date the Customer purchases the Undercarriage Components over the counter from the Distributor, or the date the Undercarriage Components are installed by the Distributor on the Customer’s Machine.

4. At a minimum, the Undercarriage Components listed in Table 1 have to be purchased as part of a complete undercarriage set, a track assembly with sprocket segments, or a set of track rollers or carrier rollers to be eligible for this program. A sprocket segment or a carrier roller purchased independently of other undercarriage parts for example, will not be eligible for this coverage.

5. Table 1 summarizes additional conditions for Coverage. The Coverage is limited by specific parts that qualify as Undercarriage Components, the mode of failure of the parts, and the condition of the part at the time of failure.




Table 1: Conditions for Coverage eligibility

Undercarriage Component Mode of Failure Condition to qualify for Coverage1

1 Link assembly (less shoes/pads) Breakage/crack or leak Link height less than 100% worn

Bushing less than 100% worn

2 Track and carrier rollers Breakage/crack or leak Roller less than 100% worn

3 Front idlers Breakage/crack or leak Idler less than 100% worn

4 Sprocket teeth Breakage/crack Sprocket segment less than 100% worn

1 The % worn compares the critical wear dimension of a part to the dimension of the part when completely worn as specified in Komatsu’s Undercarriage or Shop Manual.

C) EXCLUSIONS

a. Leak after pin and bushing turn. b. Repairs or replacements of parts that are 100 % worn. c. Repairs or replacement of parts that are not procured from Komatsu. d. Operating expenses required to keep the Machine in good operating condition including, by way

of example but not limitation: i. Track tension adjustments. ii. Scheduled maintenance outlined in the Machine Operation and Maintenance Manual


e. Failures resulting from: i. Shipment of Machine or replacement parts. ii. Failure of parts from allied suppliers or parts not procured through Komatsu. iii. Failure of a component or part not covered by this program. iv. Operating the Machine outside the guidelines specified in O&M Manual. v. Noncompliance with the maintenance schedule and procedure outlined in the










Customer or any other person. Misuse of misapplication includes the use of shoes/pads on the Machine that do not match the application. Example ‐ failures resulting from the use of wide shoes in hard rock applications.


1. Distributor must review the terms of Komatsu’s Replacement Undercarriage Program Coverage Policy with the Customer representative.


3. Distributor will complete Covered Repairs, store the failed parts and register claims for reimbursement from Komatsu per the terms specified in Reimbursement Policy Section section of the Warranty and Coverage Policies.






Policies. 8. SEST and SFRs: Machine modification requests managed by Komatsu’s Marketing Department

(see Marketing section at https://www.komatsuamerica.net).

G) REFERENCES 1. Reimbursement Policy 2. Claim Evaluation, Review and Distributor Reimbursement Procedure 3. Presentation: Komatsu Claims System




4. PPL 835 marketing policy letter.



UNDERCARRIAGE PLUS COVERAGE POLICY SPP 3‐1‐11 Page 1 of 5



UNDERCARRIAGE PLUS COVERAGE POLICY





UNDERCARRIAGE PLUS COVERAGE POLICY

A) PURPOSE

Komatsu offers the KA 1085 marketing program, published on Price and Policy letter KA 1085, to support Distributors in differentiating the Komatsu products specified in the marketing letter from the competition at the time of sale. The Komatsu products specified in the marketing letter have the PLUS undercarriage system and this program provides a wear‐out performance guarantee for specific Undercarriage Components. The scope and period of this guarantee extends beyond the Product Warranty and the Undercarriage Assurance Program. While the Undercarriage Assurance Program covers leak or breakage to certain Undercarriage Components, this program covers accelerated wear. This policy provides an overview of the terms of the Komatsu’s Undercarriage Plus Coverage Policy.

B) COVERAGE

1. Komatsu will reimburse the Distributor for a prorated portion of specific expenses related to correcting early wear out of Undercarriage Components.


3. The guarantee period for the Undercarriage Components is set by the Distributor based on the undercarriage life achieved by other machines on the Customer site that are in the same application, but do not have the PLUS or equivalent technology (“conventional undercarriage”).

4. The Distributor can guarantee that with the new PLUS system in the same application, the Customer will realize up to double the life achieved on the item that wore out first on the conventional undercarriage. The Distributor can guarantee a maximum coverage period for any Machine of 60 months or 6,000 hours, whichever comes first, from the Machine’s FID date.

5. Coverage is limited to the following specific parts that qualify as Undercarriage Components: link assembly (less pads/shoes), track rollers, carrier rollers, front idlers and sprocket teeth.

C) EXCLUSIONS a. Repairs to Machines that have not been registered for the Coverage per the terms specified

under Section D below. b. Distributor owned machines. c. Wear after pin and bushing turns. PLUS equipped machines do not require a pin and bushing

turn and the Undercarriage Components should wear evenly. d. Repairs or replacement of parts that are not procured from Komatsu. e. Operating expenses required to keep the Machine in good operating condition including, by way

of example but not limitation:




i. Track tension adjustments. ii. Scheduled maintenance outlined in the Machine Operation and Maintenance Manual


f. Failures resulting from: i. Shipment of Machine or replacement parts. ii. Failure of parts from allied suppliers or parts not procured through Komatsu. iii. Failure of a component or part not covered by this program. iv. Operating the Machine outside the guidelines specified in O&M Manual. v. Noncompliance with the maintenance schedule and procedure outlined in the







Customer or any other person. Misuse of misapplication includes the use of shoes/pads on the Machine that do not match the application. Example ‐ failures or accelerated wear resulting from the use of wide shoes in hard rock applications.


1. Distributor must review the terms of Komatsu’s Undercarriage PLUS Coverage Policy with the Customer representative. Form Undercarriage PLUS Program is a copy of the certificate for the Customer.

2. Distributor must register for the Coverage using the Undercarriage Assurance link in the Service homepage of Komatsu’s Extranet System (https://www.komatsuamerica.net) within 30 days of the date of final sale of the Machine to a Customer for Customer owned Machines.
















G) REFERENCES 1. Reimbursement Policy 2. Claim Evaluation, Review and Distributor Reimbursement Procedure 3. Form Undercarriage PLUS Program Certificate 4. Presentation: Komatsu Claims System 5. KA 1085 Price and Policy letter.





Bloodgood, E. Keane, T. Robson, G. Toro, B. Boebel

REIMBURSEMENT POLICY SPP 3‐2‐1

Page 1 of 19



REIMBURSEMENT POLICY

Contents A) PURPOSE...................................................................................................................................... 2 B) ELIGIBILITY CRITERIA FOR REIMBURSEMENT ................................................................................ 2 C) REPAIR TIME FRAME .................................................................................................................... 3 E) CLAIM SUBMISSION TIME............................................................................................................. 4 F) CLAIM TYPE TO REGISTER............................................................................................................. 5 G) INFORMATION REQUIRED ON ALL CLAIMS ................................................................................... 5 H) TECHNICAL DESCRIPTION REQUIRED ON CLAIMS.......................................................................... 6 I) TECHNICAL DOCUMENTATION REQUIRED ON CLAIMS.................................................................. 8 K) REIMBURSEMENT POLICY AND CLAIM DOCUMENTATION FOR DISTRIBUTOR SUPPLIED PARTS .... 9 L) REIMBURSEMENT POLICY AND CLAIM DOCUMENTATION FOR DISTRIBUTOR SUPPLIED LABOR.. 10 M) REIMBURSEMENT POLICY AND CLAIM DOCUMENTATION FOR TRANSPORTATION AND COMPONENT HANDLING EQUIPMENT ............................................................................................... 11 N) REIMBURSEMENT POLICY AND CLAIM DOCUMENTATION FOR FREIGHT CHARGES ..................... 12 O) REIMBURSEMENT POLICY AND CLAIM DOCUMENTATION FOR THIRD PARTY SERVICE................ 13 P) REIMBURSEMENT POLICY AND CLAIM DOCUMENTATION FOR MISCELLANEOUS EXPENSES ....... 14 Q) REIMBURSEMENT POLICY AND CLAIM DOCUMENTATION FOR PRORATION AND DEDUCTIBLES . 16 R) DOCUMENTING SPECIAL CIRCUMSTANCES ON CLAIMS .............................................................. 17 S) COST AND TIMING INFORMATION FROM DISTRIBUTOR BUSINESS SYSTEM REQUIRED ON CLAIMS .................................................................................................................................................. 17 T) MISCELLANEOUS ........................................................................................................................ 18 U) DEFINITIONS .............................................................................................................................. 18 V) REFERENCES ............................................................................................................................... 19 W) REVISIONS.................................................................................................................................. 19


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A) PURPOSE This schedule summarizes: 1. Criteria for Distributors to maintain eligibility for reimbursement for services provided under a Komatsu

Coverage Policy; 2. Komatsu’s reimbursement terms on the various types of Coverage Policies; and 3. Information required by Komatsu on Claims to complete a technical and financial evaluation of the

service.

Claims are an extremely important source of technical information for Komatsu. The quality of the technical information in the Claims submitted by the Distributor should be accurate and complete enough for an engineer at Komatsu to gain an in depth understanding for the failure without visiting the Machine or personally handling the failed parts. The technical information in Claims is used by Komatsu in a reliability monitoring process to identify emerging quality problems and by Komatsu’s engineers to develop ongoing design improvements.

B) ELIGIBILITY CRITERIA FOR REIMBURSEMENT 1. In order to be eligible for reimbursement of expenses incurred in executing a Covered Repair, the

Distributor is required to complete the repair within the timeframe specified below and maintain the parts replaced during the repair for a potential recall by Komatsu. The Distributor is also required to register a Claim for reimbursement in Komatsu's Claims System within a specified timeframe, under the correct Claim type, and with the required documentation specified below.

2. The only exception for storing failed parts and for the documentation standards specified below are for repairs completed under Factory Campaign Coverage. Each Factory Campaign Letter specifically outlines disposition of failed or replaced parts and specifies information required on Claims in order for the repair to be eligible for reimbursement from Komatsu. In the event that a Factory Campaign intervention is late, and the Customer experiences consequential damage, the Distributor should carry out all necessary repairs to correct the failure. The Distributor should follow all of the procedures specified below (in addition to the basic information requested on the Factory Campaign Letter) to request reimbursement for services to correct the consequential damage.


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C) REPAIR TIME FRAME Distributor must complete the repair and return the Machine or Component to service within the time frame specified below in order to be eligible for reimbursement under Komatsu’s Coverage Policies.

Table 1: Repair time frame to maintain eligibility for reimbursement

D) FAILED PARTS MANAGEMENT

Parts that are replaced under Covered Repairs (with the exception of Policy or Special Policy Coverage) must be stored or handled per the terms described below in order for Claims to remain eligible for reimbursement. Parts replaced under Policy or Special Policy Coverage have no parts storage or treatment requirements. The Distributor may however, want to maintain the parts used in Special Policy repairs in case Komatsu needs to analyze the parts to determine how much to contribute towards the repair. 1. Parts storage time: Distributor is required to store parts through the timeframe specified below:

a. Part that has an MRA Number: until Claim is submitted to Komatsu for reimbursement. b. Parts that do not have MRA Numbers: for a period of 90 days from the day the Distributor is

reimbursed by Komatsu for the repair. 2. Parts storage conditions: Distributor must use the following guidelines in protecting and storing replaced

parts: a. The parts should be stored in an environment that will prevent any further damage or loss of failure

information. The stored parts should be cleaned (unless this destroys the evidence of the cause of failure) and any exposed sections must be lightly coated with oil, grease, or other anti‐rust

Condition Time frame to complete Covered Repair

1

Machine Repairs (repairs completed on the Machine or at the Customer or Distributor location when the Machine is out of service ‐ example: replacement of a suspension cylinder, or engine repair)

Maximum of 15 days from Fail Date or date of completing a receiving inspection if a part was damaged or missing during shipment

2

Exchange Component Repairs (repairs completed at a rebuild center‐ example: overhaul of a suspension cylinder completed after the Machine has been returned to service)

Canada and USA: maximum of 30 days from the Fail Date. Distributor can use a tear down inspection and a quote to prepare a claim within the 30 day window of the Fail Date for Exchange Component Repairs if the repair is going to take longer than 30 days to schedule and complete.

Countries other than Canada and USA: maximum of 60 days from the Fail Date. Distributor can use a tear down inspection and a quote to prepare a claim within the 60 day window of the Fail Date for Exchange Component Repairs if the repair is going to take longer than 60 days to schedule and complete.


Page 4 of 19



compounds to prevent corrosion. Certain parts such as electronic card may need to be stored in anti‐static pouches, or may have other special storage requirements.

b. The parts must be marked to indicate the exact location of defects. Suitable felt markers, metal dye or fluorescent paint are recommended marking materials. The identifying mark should highlight the defect rather than cover it or fill it.

c. All parts replaced during a repair should be kept together in easily accessible locations to allow Komatsu to easily inspect the parts at the Distributor location and the ability for the Distributor to quickly locate, package and return the parts to Komatsu in the event of a recall. The bin locations for the parts must be properly identified by the Claim number, part number, and the MRA Number (if applicable).

3. Part return requirements: Distributor must meet the following targets for returning or for organizing for collection of failed parts. a. Part that has an MRA Number: Parts that have an MRA Number must be returned to Komatsu’s

Core Processing Center within 45 days of the Repair Date. At the Core Processing Center, Komatsu may complete a cursory failure and tear down analysis on receiving the part and reuse the subcomponents in Komatsu’s Reman Program.

b. Parts that do not have MRA Numbers: Komatsu may recall these parts from the Distributor storage on an as needed basis to complete an engineering analysis of the failure. i. To initiate the recall, Komatsu will send an email to the Distributor’s Claim Administrator at the

Distributor’s main branch requesting specific information on a failed part. The email from Komatsu will reference the Claim number for the Distributor, the part number and the applicable Machine Model and Serial Number.

ii. The Distributor is required to respond with specific information on failed part within a 10‐day period of receiving the email from Komatsu in order for the particular repair or Claim to remain eligible for reimbursement. The specific information requested by Komatsu will include size and weight of packaged part, pick up location for the package, working hours at the pick up location, and a Distributor contact name to coordinate the pick‐up.

iii. Komatsu will use the information provided in the Distributor’s recall notice response to organize for a shipping company to pick up the part.

iv. Any of parts that are not recalled by Komatsu within the 90 day parts storage time frame reference above can be scrapped by the Distributor.

E) CLAIM SUBMISSION TIME 1. Distributor must submit a Claim to Komatsu within 30 days from the Repair Date for all Coverage

Policies with the exception of Policy and Special Policy Claims. Policy and Special Policy Claims have to be filed within 150 days of Repair Date.

2. Distributor may submit Claims up to 30 days later than the dates specified above under all Coverage Policies except Factory Campaign Coverage, but these Claims are designated “Late” and will be subject to a proration specified in Section Q below.


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F) CLAIM TYPE TO REGISTER 1. Distributor must submit the Claim under the appropriate Claim Type in Komatsu’ Claims System

depending on the Coverage Policy in effect as specified in Table 2.

Table 2: Claim Type to register for Claims against each of Komatsu’s Coverage Policies # Coverage Policy Description or Coverage Type Claim

type For parts missing or damaged on Machines at the time of receipt. MA 1

Product Warranty For repairs completed during assembly and commissioning of the Machine. SK

For repairs after Machine is in Service. S1 2 Emissions Warranty1 SM 3 Electric Propulsion1 S3

For failed part number that does not start with “R” PC 4 Parts and Component Warranty For failed part number that starts with “R” RM

Boom and Arm XL Cylinders X7 Engine X2 Frame X6 6 Advantage1 & Hydraulics XC Advantage Standard1 Power train (PT) X4 Power train plus (PT+) XQ Premier X1 Remarketed machine power train U4 Used machine power train UN Hybrid system XI 7 Policy PY 8 Special Policy PA Engineering test ET 9 Factory Campaign (as

noted in the letter) Interim preventative – before failure BF

All others FC 10 Undercarriage

Assurance1 SD

11 Replacement Undercarriage 1

UP

12 Undercarriage PLUS Program1

SP

1 Coverage Policies apply after expiration of Product Warranty

G) INFORMATION REQUIRED ON ALL CLAIMS The Claim document in Komatsu’s Claims System has several basic information fields on the Machine Model, Serial Number, Fail Dates, SMR, FC Number, etc. The information provided in these fields and other fields in the Claim should be accurate, complete and should match the information in the Distributor’s work orders and Machine telemetric systems such as Komtrax, Komtrax PLUS, etc.


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H) TECHNICAL DESCRIPTION REQUIRED ON CLAIMS The following tables summarize the technical description required in specific sections of the Claim. The information provided in these sections by the Distributor should be to the point and preferably presented in bullet points (not paragraphs).

Table 3: Required description of Customer Complaint and symptoms of the Machine problem on Claims

Explanation of content

Information required in electronic claim Claim Section

What initiated the repair?

1. List specific Customer complaint. Example: Operator noted that engine exhaust color was black or Customer technician noted left final drive leak during PM. 2. Was there a specific symptom that represented the problem? Example: low power, engine will not crank, soft suspension, etc. 3. Did the Machine Monitoring System display any error? Provide source, code and code description (if applicable). Example: Monitor Panel/Komtrax PLUS: C3: low steering accumulator pressure, etc.

Complaint

Table 4: Required description of cause of failure and troubleshooting steps on Claims

Explanation of content

Information required in electronic claim Claim Section

1. What part caused the failure? Critical Fail Part Number

2. Failed component information (component removed from the Machine) ‐ if component is serialized

Part Serial Number, Install Date and Reman ID (if applicable).

3. What is the Critical Fail Part’s Component Code? Component Code

4. How did the Critical Fail Part fail? Phenomenon Code

What defect caused the specific problem?

5. Why did the Critical Fail Part fail? Description of the Distributor’s analysis of why the Critical Fail Part failed. Distributor can disassemble the component (with the exception of parts identified in PPL 507) if required to determine Critical Fail Part Number, mode of failure (Phenomenon) and reason for failure.

Cause

6. What steps were taken to identify the cause of failure? This explanation of the troubleshooting steps should include the amount of time taken in each step of the troubleshooting process.

Corrective Action


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Table 5: Required description of repair and repair quality verification on Claims Explanation of

content Information required in electronic claim Claim Section

1. Explain the method used in determining scope of repairs and process used in executing the Covered Repair. Indicate if a Third Party was retained to execute the repair or if the nature of the repair is temporary.

Corrective Action

How was the failure corrected?

2. Replaced component information (component installed on the Machine)‐ if component is serialized

Part Number, Serial Number, Install Date, and Reman ID and MRA Number (if applicable).

How was the quality of the repair intervention verified?

3. Starting Machine system performance specifications vs. standard (if applicable). Also, performance specifications vs. standard after executing repair. Performance specifications and tests can be found in the Standard Value Tables/PM Clinic in Shop Manuals and in specifications updates posted in Flash News and Parts and Service News letters.

Corrective Action


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Komatsu America Corp.

I) TECHNICAL DOCUMENTATION REQUIRED ON CLAIMS The following table summarizes the minimum technical documentation required on a Claim depending on the situation or mode of failure. The Table also indicates the specific location on the Claim or other Komatsu system where the information needs to be presented. The Distributor should also include a TSI Number in the Comments Section of the Claim and a copy of completed failure report or service report as an Attachment to the Claim when available. FORM Repair Service Report is Komatsu’s standard service report that can be used by Distributors for repair services. If this service report is used correctly, the Distributor Claim Administrator will have all of the required information to correctly file a Claim. Presentation Guideline for Photographs and Technical Data provides a good example of proper photo documentation.

Table 6: Required technical documentation on claims depending on mode of failure

Photos of Failure 1&2

# Mode of Failure Close‐

up of Failure

Intermediate view

Machine profile

Application Other Support Information3

1 Missing or damaged parts on Machine receipt

P P a. Machine order document to Komatsu as an Attachment indicating that the part that is missing was in fact part of the order if the missing part is an option. b. Receiving Inspection report indicating that the part was missing at the time of receipt as an Attachment.

2 Oil or coolant leak from hose or tube or minor mechanical failure

P P or D

3 Radiator / oil cooler crack P P or D P* a. Jobsite information in Comments section of the claim with application description, and ground conditions. Add photos to the "Photos of failure" attachment if available.

4 Frame / work equipment crack P P or D P P*

a. Length of crack in Complaint section of the claim or on the close‐up photo. b. Size of boom/ arm/ bucket / blade/dump body in Comment section of the claim. c. Frame inspection check sheets as an Attachment. d. Jobsite information in Comments section of the claim with application description, material density, and ground conditions. Add photos to the "Photos of failure" attachment if available. e. Acrobat version of PLM management report generated from MyKomatsu.com (if applicable) as an Attachment titled “Payload Report”. f. SEST # in Comment section of the claim (if applicable) and SEST letter as an Attachment titled “SEST”.

5 Major component failure P P or D a. Oil sample or KOWA information as an Attachment titled "KOWA Report" (if applicable). b. Acrobat version of PLM management report generated from MyKomatsu.com (if applicable) as an Attachment titled “Payload Report”.

6

Failure of traction alternator assembly, parts in control system group (control cabinet and auxiliary cabinet assembly and subcomponents and wheel motor sensors), wheel motor assembly, or retard grid assembly including blower motors on Electric Drive Trucks.

P P or D

a. Acrobat version of PLM management report generated from MyKomatsu.com (12 months minimum) as an Attachment titled “Payload Report”. b. All drive system downloads as Attachments titled “Type of Download Download”. Example: “Counter Download”. c. Completed Wheel Motor Final Drive Failure Timeline FORM for wheel motor failures. a. One year of oil sample or KOWA information as an Attachment titled "KOWA Report" for wheel motor failures .

7 Undercarriage early wear or failure P P or D a. Undercarriage measurement report as an Attachment titled "UC Report". b. Jobsite information in Comments section of the claim with application description, material description, and ground conditions. Add photos to the "Photos of failure" attachment if available.

8 Performance issue P P

a. Size of boom/ arm/ bucket / blade/dump body in Comments section of the claim. b. PM Clinic data (Before and After) as Attachment titled "PM Clinic data". c. Jobsite information in Comments section of the claim with application description, material density, and ground conditions. Add photos to the "Photos of failure" attachment if available. d. VHMS snapshot data in WebCARE (if applicable). e. PLM data in MyKomatsu.com (if applicable). f. Please indicate in the Comments section of the claim if a video is available demonstrating the performance complaint.

1. All photographs or drawing should be included on one Attachment titled "Photos of failure". 2. "P" = photograph, and "D" = electronically marked up drawing from the Parts Book or Shop Manual. P* indicates that photograph is recommended but not required. 3. Items in bold text indicate the location for submission of data on the Claim or other Komatsu database.


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J) EXPENSE REIMBURSEMENT POLICY AND COST DOCUMENTATION ON CLAIMS

The following sections list various expenses that might be incurred by the Distributor in carrying out repairs and specify the terms of reimbursement for each type of expense under each of Komatsu’s Coverage Policies. Certain types of repairs and Coverage Policies may be subject to deductions or proration. The following tables must be used to determine the cost basis for the repair before applying the deduction or proration specified in Section Q below. Reimbursement terms under Factory Campaign Coverage are determined on an individual campaign basis and are thus not specifically called out in each of the sections below. The sections below also summarize the required documentation for specific reimbursable items on Claims. Claims that are subject to proration or deductions must be filed for the entire cost of the repair and the reimbursement amount requested by the Distributor should be indicated per the guidelines in Section Q below.

K) REIMBURSEMENT POLICY AND CLAIM DOCUMENTATION FOR DISTRIBUTOR SUPPLIED PARTS

1. The following table provides reimbursement terms by Coverage Policy for various parts related expenses. The table also summarizes information required on a Claim to request reimbursement for the expense. 2. Parts utilized under Factory Campaign Coverage will be provided free of charge to the Distributor or reimbursed under the same terms as Product Warranty.

Table 7: Reimbursement terms and Claim documentation for Distributor parts related expenses

Coverage Policy & Reimbursement Terms

#

Expense

Product Warranty, Electric Drive Warranty1, Emissions Control Warranty1 and Advantage Standard

Coverage1

Parts and Component Warranty1, Undercarriage Assurance1, Replacement

Undercarriage Assurance1 and Undercarriage PLUS Coverage1

Advantage Coverage1

Policy & Special Policy

Coverage

Information Required in Electronic Claim

Claim Section

1

Komatsu parts: Distributor owned parts (including consumables such as oil or filters) that were originally sourced from Komatsu used to replace or repair the primary or secondary failed parts.

Value for each appropriate part used will be reimbursed at the DNET prices in Komatsu's Parts Ordering System on the Repair Date.

Value for each appropriate part used will be reimbursed at the DNET prices in Komatsu's Parts Ordering System on the Repair Date.

Value for each appropriate part used will be reimbursed at the LIST prices in Komatsu's Parts Ordering System on the Repair Date.

Value for each appropriate part used will be reimbursed at the LIST prices in Komatsu's Parts Ordering System on the Repair Date.

Part number and quantity of each part used in the Covered Repair

Parts

2

Parts handling: Distributor expenses in owning and managing Komatsu parts that are used in Covered Repairs. Owning costs include costs incurred in maintaining inventory. Managing costs include costs associated with procuring Komatsu parts such as logistical services, emergency order fees and transportation costs for parts shipments to the Distributor and from the Distributor to the Covered Repair location.

Parts Handling Percentage Rate of the DNET value of each Komatsu part that is eligible for reimbursement under the Covered Repair.

Parts Handling Percentage Rate of the DNET value of each Komatsu part that is eligible for reimbursement under the Covered Repair.

Not reimbursable Not reimbursable

None. Reimbursement value is automatically calculated. The total value eligible for reimbursement can be seen in the Other section of the claim document.

Not Applicable

3

Komatsu parts freight and fees for non‐ASL parts: Fees and freight charges levied by the Komatsu Parts Department for emergency and critical orders (applicable for Distributors on Komatsu’s Authorized Stocking List (ASL) program only).

Value of parts freight charges and fees from Komatsu for shipment of Emergency or Critical order fee for non‐ASL parts.




a. Statement indicating that the Distributor was charged Komatsu Parts fees for a non‐ASL part. b. Scanned copy of current ASL parts list. c. Scanned copy of statement from Komatsu documenting value of fees and freight charged for non‐ASL parts. d. Value of Komatsu Parts Department fees and freight charged to the Distributor.

a. Comments b. Attachment titled “Current ASL Parts List” c. Attachment titled “Komatsu Parts Fees and Freight” d. Other

1 Terms apply after expiration of Machine Product Warranty Coverage


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L) REIMBURSEMENT POLICY AND CLAIM DOCUMENTATION FOR DISTRIBUTOR SUPPLIED LABOR 1. The following table provides reimbursement terms by Coverage Policy for various labor related expenses. The table also summarizes information required on a Claim to request reimbursement for the expense. 2. Labor hours, including Travel time, for Factory Campaign Coverage will be reimbursed at the Distributor’s Charge Out Labor Rate. Travel time in hours will be calculated by dividing travel distance in mile (km) by 40 (64 kms).

Table 8a: Reimbursement terms and Claim documentation for Distributor labor related expenses


#

Expense

Product Warranty, Electric Drive Warranty1, Emissions Control Warranty1 and Advantage Standard Coverage1



Advantage Coverage1 Policy & Special Policy Coverage Information Required in

Electronic Claim Claim Section

1 Travel time: Time taken to travel to Machine

Not reimbursable Not reimbursable Not reimbursable

Number of miles (kms) travelled to the job divided by 40 miles (64 km) up to a maximum of 500 miles (800 kilometers) and two (2) round trips to Machine location.

None. Reimbursement calculated automatically utilizing number of miles (kms) travelled to the Customer site under the service trucks in Table 9 below.

Not applicable

2

Cleaning time: Time taken to wash or clean Machine or Covered Item.

Not reimbursable Not reimbursable Not reimbursable Not reimbursable

3

Troubleshooting time: Time taken to identify scope of the Covered Repair.

Each hour of reasonable Troubleshooting time up to 8 hours will be reimbursed at Distributor’s Warranty Labor Rate. If Troubleshooting time exceeds 8 hours Distributor should file a request for Komatsu support using a TSR to be eligible for additional reimbursement.

Not reimbursable

Each hour of reasonable Troubleshooting time up to 8 hours will be reimbursed at Distributor’s Charge Out Labor Rate. If Troubleshooting time exceeds 8 hours Distributor should file a request for Komatsu support using a TSR to be eligible for additional reimbursement.

Each hour of reasonable Troubleshooting time up to 8 hours will be reimbursed at Distributor’s Charge Out Labor Rate. If Troubleshooting time exceeds 8 hours Distributor should file a request for Komatsu support using a TSR to be eligible for additional reimbursement.

a. Number of hours required to execute the repair itemized by job code. b. Summary of work performed. c. TSR Number if applicable

a. Labor b. Labor c. Corrective Action

4

Repair time: Time taken to execute Covered Repair and to verify that the corrective intervention is effective.

Each hour of reasonable Repair time will be reimbursed at Distributor’s Warranty Labor Rate. Repair time that exceeds Accurate hours and any hours applied to repair parts that do not qualify for Coverage will not be eligible for reimbursement. Accurate hours for comparable Machine models are to be used in determining reasonable hours in situations where Accurate hours are unavailable.




a. Number of hours required to execute the repair itemized by job code. b. Summary of work performed.

a. Labor b. Labor

5

R&I time: Time taken to remove the failed part from the machine and replace it with a repaired or Reman component.

Each hour of reasonable R&I time will be reimbursed at Distributor’s Warranty Labor Rate. R&I time that exceeds Accurate hours and any hours applied to repair parts that do not qualify for Coverage will not be eligible for reimbursement. Accurate hours for comparable Machine models are to be used in determining reasonable hours in situations where Accurate hours are unavailable.

a. Reimbursable for Undercarriage Assurance and Undercarriage PLUS Coverage. b. Reimbursable for Component Warranty Coverage and the Replacement Undercarriage Program Coverage only if Distributor installed the failed Component. See Parts and Component Coverage Policy for a list of parts that qualify as Components. c. Not reimbursable for Parts Warranty.



a. Number of hours required to execute the repair itemized by job code. b. Summary of work performed.

a. Labor b. Labor



Page 11 of 19



Table 8b: Reimbursement terms and Claim documentation for Distributor labor related expenses continued


#

Expense

Product Warranty, Electric Drive Warranty1, Emissions Control Warranty1 and Advantage Standard Coverage1





6

Other miscellaneous labor expenses: Miscellaneous expenses such as lodging, meals, overtime, etc., incurred in executing a Covered Repair


1 Terms apply after expiration of Machine Product Warranty Coverage M) REIMBURSEMENT POLICY AND CLAIM DOCUMENTATION FOR TRANSPORTATION AND COMPONENT HANDLING EQUIPMENT

1. The following table provides reimbursement terms by Coverage Policy for transportation and component handling equipment. The table also summarizes information required on a Claim to request reimbursement for the expense. 2. Service truck and Specialized handling equipment utilized in Factory Campaigns will be reimbursed per the terms specified under Standard Warranty.

Table 9: Reimbursement terms and Claim documentation for technician transportation and component handling equipment related expense

Coverage Policy & Reimbursement Terms #

Expense

Product Warranty, Electric Drive Warranty1, Emissions Control Warranty1 and Advantage

Standard Coverage1

Parts and Component Warranty1, Undercarriage Assurance1, Replacement Undercarriage Assurance1 and Undercarriage

PLUS Coverage1



1

Service truck: Expenses associated with maintenance and operations of Service Trucks used to transport Distributor labor and tools and/or handle components to execute repairs.

Each mile/km traveled by the Service Truck from the closest Distributor location to the Machine location will be reimbursed at the Distributor’s Mileage Rate, up to a maximum of 500 miles (800 kilometers) and two (2) round trips to Machine location.

Not reimbursable



Distance traveled in miles or kilometers to perform the Covered Repair

Other

2

Specialized handling equipment: Expenses associated with renting specialized cranes or component handling tools to execute a repair.

Reimbursable at Distributor cost (value on Distributor invoice from Third Party) for repairs where failed components or components that need to be removed from the machine exceed 10,000 lbs (4,536kg) for Compact Construction and Construction Machines, and 30,000 lbs (13,607 kg) for Mining Machines..

Not reimbursable

Reimbursable at Distributor cost (value on Distributor invoice from Third Party) for repairs where failed components or components that need to be removed from the machine exceed 10,000 lbs (4,536kg) for Compact Construction and Construction Machines, and 30,000 lbs (13,607 kg) for Mining Machines.

Reimbursable at Distributor cost (value on Distributor invoice from Third Party) for repairs where failed components or components that need to be removed from the machine exceed 10,000 lbs (4,536kg) for Compact Construction and Construction Machines, and 30,000 lbs (13,607 kg) for Mining Machines.

a. Scanned copy of invoice from Third Party supplier. English translations should be included for documents that are not in English. Also, charges on invoices should show equivalent charge in US$ and exchange rate used in calculation. b. Invoice value paid by Distributor.

a. Attachment titled “Third Party Handling Equipment Invoice” b. Other



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N) REIMBURSEMENT POLICY AND CLAIM DOCUMENTATION FOR FREIGHT CHARGES

1. The following table provides reimbursement terms by Coverage Policy for transportation and component handling equipment. The table also summarizes information required on a Claim to request reimbursement for the expense. Table 10: Reimbursement terms and Claim documentation for various freight related expenses


Expense

Product Warranty, Electric Drive Warranty1, Emissions Control Warranty1 and Advantage Standard

Coverage1



Advantage Coverage1 Policy & Special Policy Coverage Information Required in Electronic Claim Claim Section

1

Machine transportation: Expenses associated with moving a Machine to execute the repair.


2

Component transportation: Expenses associated with transporting components from the Customer site or the Distributor location to the component’s repair or rebuild location


3

Make‐up equipment transportation: Expenses associated with retaining a Third Party to transport Make‐up equipment from Distributor branch location to the Customer jobsite.

Not reimbursable Not reimbursable Not reimbursable Invoice value from Third Party.

a. Scanned copy of invoice from Third Party supplier. b. Invoice value paid by Distributor.

a. Attachment titled “Make‐up Equipment Transport Invoice” b. OTHER



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O) REIMBURSEMENT POLICY AND CLAIM DOCUMENTATION FOR THIRD PARTY SERVICE 1. The following table provides reimbursement terms by Coverage Policy for transportation for various services procured from Third Parties. The table also summarizes information required on a Claim to request reimbursement for the expense.

Table 11: Reimbursement terms and Claim documentation for various Third Party related expenses


Expense

Product Warranty, Electric Drive Warranty1, Emissions Control

Warranty1 and Advantage Standard Coverage1



Advantage Coverage1 Policy & Special Policy Coverage Information Required in Electronic

Claim Claim Section

1

Third party services ‐ at Distributor's option: Expenses incurred by a Distributor in retaining a third party to execute Covered Repairs. Example: Distributor retains Customer or Third Party for changing main pump on hydraulic excavator.


2

Third party services ‐ specialty services: Expenses incurred by a Distributor in retaining a Third Party to conduct special testing such as oil sample analysis or to execute the following specialized Covered Repairs: welding that exceeds six (6) hours, rewinding of electric motors, re‐coring of coolers, re‐chroming of cylinder rods, mounting of tires, charging of air conditioners, rebuilding of hydraulic or electrical components, any machining or line boring services, or services provided by Cummins Distributors on engines.

Each hour of reasonable time will be reimbursed at Distributor Cost (invoice value per hour from Third Party). Repair hours that exceed Accurate hours and any hours applied to repair parts that do not qualify for Coverage will not be eligible for reimbursement. Komatsu will reimburse Distributor at cost (value on Distributor invoice from Third Party) if Distributor is billed a flat rate from the Third Party for the service.




a. Copy of itemized Third Party suppliers invoice indicating repair date, scope of repairs including labor hours if applicable. Distributor must include hand written translations of critical portions of the invoice including scope of repairs, repair dates, part descriptions if the contents of invoice are not in English. Also, charges on invoices should show equivalent charge in US$ and exchange rate used in calculation. b. Invoice value paid by the Distributor.

a. ATTACHMENT titled “Third Party Services Invoice” b. OTHER

3

Third party parts: Parts procured by the Distributor from a Third Party

Reimbursable at invoice value from Third Party if such parts are not available from Komatsu within a reasonable time frame to meet Customer expectations. Distributor may opt to use Third Party parts to replace batteries, hoses, wind shield wiper blades, windshields, light bulbs and fuses even if these parts are available from Komatsu within the required time frame to complete the repair.

Not reimbursable



a. Screen prints from Komatsu parts ordering system showing inventory or back order status on the fail date. Screen prints are not required for batteries, wind shield wiper blades, hoses, windshields, light bulbs or fuses b. Copy of Third Party invoice showing the part number, quantity and price paid by the Distributor. The invoice should indicate the equivalent Komatsu part number. This part number and name can be hand written in English. c. Invoice value paid by the Distributor.

a. ATTACHMENT titled “Parts Availability Shortfall” b. ATTACHMENT titled “Third Party Parts Invoice” c. OTHER



Page 14 of 19



P) REIMBURSEMENT POLICY AND CLAIM DOCUMENTATION FOR MISCELLANEOUS EXPENSES

1. The following table provides reimbursement terms by Coverage Policy for other potential expenses not covered in the previous sections. The table also summarizes information required on a Claim to request reimbursement for the expense.

Table 12a: Reimbursement terms and Claim documentation for potential expenses not covered in the previous sections


Expense

Product Warranty, Electric Drive Warranty1, Emissions Control Warranty1 and Advantage

Standard Coverage1

Parts and Component Warranty1, Undercarriage Assurance1, Replacement Undercarriage Assurance1 and Undercarriage

PLUS Coverage1

Advantage Coverage1 Policy & Special Policy Coverage Information Required in Electronic Claim Claim Section

1

Temporary repairs: Expenses incurred in executing temporary repairs.

Not reimbursable unless parts required to complete the repair are not available from Komatsu within a reasonable timeframe.

No reimbursable



2

Incidental damages: Expenses related to restoring or replacing non‐Komatsu parts damaged a result of a covered failure. Example: tire damage from rim failure or damage to the jobsite or other equipment.


3 Swing components: Carrying costs such as depreciation or rental fees associated with utilizing swing components while repairs are being executed on a failed component.


4

Make‐up Equipment: Costs associated with providing the Customer with rental machines or a back‐up machine while the Covered Repair is being executed.

Not reimbursable Not reimbursable Not reimbursable

Distributor’s current published monthly rate for the Make‐up equipment divided by 30 days multiplied by the number of days the equipment is provided to the Customer. Machines with availability guarantees are not eligible for cost reimbursement for Make‐up equipment.

a. Statement indicating that the Distributor provided the Customer with a make‐up equipment. The statement should include start and end dates, machine model provided to the Customer, and the rental cost calculation (number of days x monthly rate/30). b. Copy of Distributor rental rate sheet showing monthly rental price for the Machine. c. Cost of rental.

1. Comment 2. Attachment titled “Rental Rate Sheet” 3. Other

5 State or local taxes: Costs incurred

by Distributor in paying local, state/province or federal/national taxes for services rendered in completing Covered Repairs.

Reimbursable at cost. In general local, state/province or federal/national entities do not levy taxes on product warranty or insurance related services. Documentation for applicable taxes should be included in the Reimbursement Rate Revision FORM.




Tax amount paid by the Distributor. Other


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Table 12b: Reimbursement terms and Claim documentation for potential expenses not covered in the previous sections continued


Expense

Product Warranty, Electric Drive Warranty, Emissions Control Warranty and Advantage Standard

Coverage

Parts and Component Warranty, Undercarriage Assurance, Replacement Undercarriage

Assurance and Undercarriage PLUS Coverage

Advantage Coverage Policy & Special Policy Coverage Information Required in


6 Tooling and shop supplies: Costs incurred by the Distributor in maintaining tools and shop supplies used to carry out Covered Repair. Tooling includes items such as specialized wrenches, testing equipment, presses, light towers, heaters, etc. Shop supplies include brake cleaning fluid, system flushing fluids, rags, sealants, solvents, wire ties, adhesives, primers, paint, assembly lubricants, anti cease compounds, buffing disks, grinding disks, etc.


7 Environmental fees: Costs incurred by the Distributor in disposing failed parts including lubricants replaced during the Covered Repair per appropriate governmental regulations.


8 Receivable finance charges: Interest expense and other costs associated with financing the receivable on the Covered Repair pending Komatsu's payment.


9 Failed parts storage fees: Costs associated with storing parts replaced during Covered Repairs.



Page 16 of 19



Q) REIMBURSEMENT POLICY AND CLAIM DOCUMENTATION FOR PRORATION AND DEDUCTIBLES 1. Advantage and Advantage Standard Coverage: certain Advantage and Advantage Standard contracts are subject to deductibles based on the terms selected by the Distributor at the time of purchase or because the Customer has opted out or is

unable to provide the required number of oil sample or frame inspection reports at the time of repair. The deductible will applied after the total cost of the repair is calculated using the reimbursement terms specified in the tables above. Please visit Advantage under the Service section of the extranet (https://www.komatsuamerica.net) to reference the deductible value for a specific contact. The current deductible for not having the required number of oil sampling or frame inspection reports is 10%.

2. Policy Coverage: Policy Coverage is subject to proration based on the unpaid portion of the total repair cost. The unpaid portion of the repair costs equal the cost of the repair calculated per the terms specified in the tables above minus any money received from the Customer for the specific repair.

a. Komatsu will reimburse the Distributor 60% of the unpaid portion of the total repair costs for repairs to Machines that are not covered or have not been covered under Third Party or Distributor backed extended warranties or insurance policies.

b. Komatsu will reimburse the Distributor 50% of the unpaid portion of the total repair costs for repairs to Machines that are covered, or have been covered under Third Party or Distributor backed extended warranties or insurance policies. 3. Special Policy Coverage: Special Policy Coverage is subject to proration from Komatsu on a case‐by‐case basis. The value of the proration can range from 0 to 100%, with a maximum reimbursement of 80% of the repair cost calculated per the terms

specified in the tables above. 4. Undercarriage Assurance and Replacement Undercarriage Program Coverage: Komatsu will reimburse the Distributor for the cost of the repair calculated using the terms specified in the tables above times the percent remaining life in the

undercarriage component at the time of failure (leak or breakage). For example, Komatsu will reimburse the Distributor $200 [$1,000 x 20%] if the idler leaks when it is 80% worn and the reseal costs $1,000. 5. Undercarriage PLUS Coverage: Komatsu will reimburse the Distributor for 80% of the cost of the repair calculated using the terms specified in the tables above times the percent of guaranteed life not achieved when the undercarriage component is

a 100% worn. For example, Komatsu will reimburse the Distributor $2,666. 67 [$10,000 x 80% x (2,000/6,000)] if the Distributor guaranteed the Customer a life of 6,000 hours for a $10,000 link assembly that lasted 4,000 hours. 6. All Coverage Policies except Factory Campaign Coverage: In addition to the deductions or proration specified above, all Coverage Policies are subject to a deduction based on a delay in filing a Claim. Section E of this policy specifies the maximum

allowable time for the Distributor to file a claim to Komatsu to be eligible for reimbursement (“Claim Submission Time”). Komatsu will reimburse the 80% of the otherwise eligible cost of the repair if the Claim is less than 16 days outside of the Claim Submission Time and 70% if the Claim is less than 31 days outside the Claim Submission Time. For example, Komatsu will reimburse the Distributor $7,000 ($10,000 x 70%) if a Distributor in Canada files a Claim for a repair that costs $10,000 46 days after the Repair Date.

7. The table below outlines Claim documentation required when a proration or deductible is applicable per the Coverage reimbursement policy.

Table 13: Required proration or deductible information on Claims where applicable

# Explanation of content Information required in electronic claim Claim Section

1 Are there any applicable deductibles or proration for this repair?

a. For Advantage or Advantage Standard Coverage: i. Explanation of applicable deductible per the terms of the Customer agreement. Does the Customer have a deductible for the contract, or was the Customer short of oil sample or frame inspection reports? ii. What is the value of the deductible, or the percentage of proration applicable? b. For Policy Coverage: i. What was the Customer payment amount? ii. Does the Machine have or did it ever have a Distributor or a Third Party insurance policy? iii. What is the value of the deductible, or the percentage of proration applicable? c. For Undercarriage Assurance and the Replacement undercarriage Coverage: i. What is the % worn of the part that failed? ii. What is the value of the deductible, or the percentage of proration applicable? d. For Undercarriage PLUS Coverage: i. What was the guaranteed life to the Customer? ii. How many hours does the 100% worn undercarriage now have? iii. What is the value of the deductible, or the percentage of proration applicable? e. For late Claims: i. How late in number of days is the Claim? ii. What is the value of the deductible, or the percentage of proration applicable?

Comments

2 Why should Komatsu reimburse the Distributor for the repair or a portion of the repair?

a. For Special Policy Claims: i. What was the Customer payment amount? ii. How much has the Distributor contributed towards the repair? iii. How much does the Distributor want Komatsu to contribute to the repair and why is this distribution of repair costs fair? b. Additional information for Special Policy Coverage for Distributors in Canada and USA only: 1. Why is this claim being submitted for Special Policy Coverage as opposed to Policy Coverage?

Comments


Page 17 of 19



R) DOCUMENTING SPECIAL CIRCUMSTANCES ON CLAIMS 1. The following table provides guidelines for the Distributor to document special situations that affect the standard reimbursement terms for the repair. This list is not exhaustive, but is included here as an example.

Table 14: Guidelines to document special situations that affect reimbursement terms for a repair

Explanation of content Information required in electronic claim Claim Section

1. Explanation of the repair option selected if the option selected was not the most cost effective in terms of parts, labor and other costs required to execute the correction. Include the cost of the cheaper repair option.

2. Explanation of gap between the Fail Date and Repair Date if the difference between the Fail Date and Repair Date exceeds 15‐days for Machine Repairs, 30 days for Exchange Component Repairs in USA and Canada, or 60 days for Exchange Component Repairs in countries other than USA and Canada. Comments

3. Explanation for Troubleshooting time or Repair time that exceed reasonable time specified in Table 8.

4. Explanation of consequential damage identified and corrected in executing a repair under the Factory Campaign Coverage, or if a campaign was declined by the Customer or completed by the Distributor after the expiration date.

Are there any deviations from standard variables of time and cost to complete the repair? 5. Role of Komatsu Representative in determining scope of repairs (if applicable). Reference and attach a Claim Authorization Form if the repair is pre‐approved.

Attachment titled “Claim Authorization Form”

S) COST AND TIMING INFORMATION FROM DISTRIBUTOR BUSINESS SYSTEM REQUIRED ON CLAIMS

1. The Table below summarizes back up information from the Distributor business system required to support the cost and technical information on a Claim. Table 9: Required cost and timing documentation from Distributor business system.

Item Information required in electronic claim Claim Section

1 Distributor work order

Required for all Claims

Electronic copy of Distributor work order clearly showing repair intervention information including: a. Machine Model, Serial Number; b. Customer Name; c. Fail Date; d. Repair description; e. List of parts used including quantity used by date; f. Labor hour entries for the job including date, hours worked and work description for each entry from the Fail Date through the last day of labor on the job; g. Service Truck miles or kilometers by date; and h. Information on other services used in completing the Covered Repair.

Attachment titled “Distributor Internal Work Order”

2

Customer invoice

Required For Parts and Component and

Replacement Undercarriage Claims to show Distributor

installation of part and Coverage start date, and

for Policy and Special Policy Claims to show Customer

Invoice.

Electronic copy of distributor invoice to Customer clearly showing repair intervention information including: a. Machine Model, Serial Number; b. Customer Name; c. Repair Date/Invoice Date; d. Repair description; e. List of parts used and corresponding parts price; f. Total Labor Hours and labor price; g. Total charges for Service Truck utilization; h. Information on other services used in completing the Covered Repair; and i. Discount being provided to the customer

Attachment titled “Customer Invoice”

3

Customer Payment Information

Required for Policy and

Special Policy Coverage only

The following is required in situations where the Customer has agreed to pay for a portion of the Covered Repair. Screen shot from Distributor business system showing date, invoice number and corresponding payment received from the Customer.

Attachment titled “Customer Payment Documentation”


Page 18 of 19



T) MISCELLANEOUS 1. Any part replaced or repaired under a specific Coverage Policy is not eligible for further Coverage

beyond the policy period. For example, a part replaced under Standard Warranty or Factory Campaign Coverage is not eligible for an independent parts warranty. The warranty for the part ends when the original Standard Warranty period expires.

2. Any non‐Komatsu sourced parts used in the Covered Repair will not be eligible for further Coverage. 3. Distributors must submit individual Claims for each part failure even if repairs to multiple failures are

executed at the same time. For example, Distributor must file two Claims: one for a boom repair and another for rim replacement if the Distributor performs a boom repair and replaces a rim on a Machine at the same time.

U) DEFINITIONS 1. Covered Repair: repair that is eligible for reimbursement under one of Komatsu’s policies. A repair that

is eligible for reimbursement for Komatsu has Coverage. 2. Coverage Type or Coverage Policy: Komatsu policy that specifies reimbursement terms for specific

repairs to Machines. 3. Machine: Komatsu manufactured machine eligible for Coverage under one of Komatsu’s policies. 4. Customer: Machine owner. 5. Distributor: Authorized Komatsu Distributor. 6. Distributor’s Warranty Labor Rate: This rate is revised in March each year based on specific Distributor

performance criteria and the Distributor’s weighted average charge out labor rate. Reimbursement Rate Revision FORM provides details on the Distributor’s Warranty Labor Rate calculation and on form filing instructions with Komatsu.

7. Distributor Charge Out Labor Rate: This rate is revised in March each year based on the Distributor’s weighted average charge out labor rate. Reimbursement Rate Revision FORM provides details on the Distributor’s Charge Our Labor Rate calculation and on form filing instructions with Komatsu.

8. Accurate Hours: Sum of various standard hours to complete a job using the Accurate system available over Komatsu’s extranet system (www.komatsuamerica.net).

9. Parts Handling Percentage Rate: This rate is revised in March each year based on specific Distributor performance criteria. Reimbursement Rate Revision FORM provides details on the Parts Handling Percentage Rate calculation and on form filing instructions with Komatsu.

10. Compact Construction Machines: Crawler Carriers, Wheel loaders smaller than WA150, Excavators smaller than PC120, Crawler Dozers smaller than a D37, Crawler and Track Skid Steer Loaders, and Backhoe Loaders.


12. Construction Machines: Komatsu machines that are neither Compact Construction or Mining Machines. 13. Mileage Rate: This rate is revised in March each year based on the Distributor’s weighted average charge

out mileage rate. Reimbursement Rate Revision FORM provides details on the Mileage Rate calculation and on form filing instructions with Komatsu.

14. Third Party: Entity other than the Distributor or Komatsu. 15. Claim: A Claim is a request to Komatsu for reimbursement for services provided by a Distributor under

one of Komatsu’s Coverage Policies.


Page 19 of 19



16. Komatsu’s Claims System: This system is located within Komatsu America’s extranet system (https://www.komatsuamerica.net). Please see presentation on Komatsu’s Claims System for instructions on how to gain access and use the system.

17. Machine Repairs: Repairs completed on the machine. Example: replacement of a suspension cylinder or repair to engine.

18. Exchange Component Repairs: Repairs completed at a rebuild center. Example: overhaul of a suspension cylinder completed after the Machine has been returned to service.

19. Fail Date: Date failure was reported by the Customer. 20. Repair Date: Date Machine or Component was returned to the Customer. 21. Repair time frame: Time to repair the failed component and make the Component or Machine available

for use/service. 22. Component: Komatsu manufactured part that is eligible for Coverage under one of Komatsu’s policies. 23. MRA Number: Komatsu issues MRA Numbers when Distributors purchase certain parts from Komatsu.

An MRA Number is an authorization for the Distributor to return the replaced part to Komatsu for a core credit.

24. TSI Number: A TSI Number is a number issued to a Distributor for submitting a service report into Komatsu’s SMAP System. Please see presentation SMAP to learn how to get access and use the system.

25. Komatsu’s Core Processing Center: Komatsu’s Core Processing Center receives, evaluates and processes component cores for Komatsu Parts Department.

26. Claim Administrator: Distributor representative responsible for managing Claims. 27. Electric Drive Trucks: Dump trucks powered by diesel electric systems. 28. TSR: Technical Support Request. The TSR is a facility for the Distributor to request Komatsu for technical

support. Please see presentation TSR system to learn how to access and use the sytem.

V) REFERENCES 1. Claim Authorization form 2. Komatsu Claims System presentation 3. Guideline for Photographs and Technical Data presentation 4. Repair Service Report form 5. SMAP system presentation 6. PPL 507 7. Wheel Motor Final Drive Failure Timeline Form 8. TSR System presentation

W) REVISIONS Revision Date Content Author 1 12/5/2010 Draft document K. Venkiteswaran, G.

Toro, T. Robson, J. Bloodgood, E. Keane

CLAIM EVALUATION, REVIEWS AND DISTRIBUTOR REIMBURSEMENT PROCEDURE SPP 3‐2‐2

Page 1 of 5



CLAIM EVALUATION, REVIEWS AND DISTRIBUTOR REIMBURSEMENT PROCEDURE

Contents A) PURPOSE .............................................................................................................................. 2 B) CLAIM EVALUATION ....................................................................................................... 2 C) CLAIM DECISION .............................................................................................................. 2 D) FEEDBACK ON REJECTIONS, PARTIAL PAYMENTS OR DELAYS...................... 2 E) CLAIM DECISION APPEAL PROCESS .......................................................................... 2 F) PAYMENT PROCESSING.................................................................................................. 3 G) PARTS RECALLS ................................................................................................................ 3 H) CLAIM REVERSALS .......................................................................................................... 3 I) CLAIM REVIEWS ............................................................................................................... 4 J) DEFINITIONS....................................................................................................................... 4 K) REFERENCES ...................................................................................................................... 5 L) REVISIONS ........................................................................................................................... 5


Page 2 of 5



CLAIM EVALUATION AND DISTRIBUTOR REIMBURSEMENT PROCEDURE

A) PURPOSE

The following sections outline Komatsu’s procedures to evaluate Claims and process reimbursements to Distributors.

B) CLAIM EVALUATION

Komatsu will assess the registered Claim in Komatsu’s Claim System to confirm that: 1. The failure is eligible for reimbursement under the specific Coverage Policy listed in the Claim. 2. The reimbursement requested by the Distributor and the documentation provided on the

Claim is in accordance with the criteria set out in the Reimbursement Policy Section of the Warranty and Coverage Policies.

3. Komatsu may require information in addition to the minimum documentation specified in item B 2, above, to assess and process a Claim from the Distributor. In such situations, Komatsu will put the Claim assessment on hold pending receipt of additional information from the Distributor.

4. Distributor should check Komatsu’s Claim System on a periodic basis for an update on Komatsu’s decision status on submitted Claims and to identify Claims that are being held pending additional information from the Distributor.

C) CLAIM DECISION

Komatsu will make one of the following three decisions within 30 calendar days of receiving a Claim based on the Claim evaluation: 1. Approve the Claim for payment if the Claim meets all of the requirements set out in Items 1 and

2 in Section B above. 2. Approve the Claim for partial payment if the reimbursement requested exceeds criteria set out

in Item B2, above, or if the Claim is subject to proration or deductibles. 3. Reject the Claim if the failure is not eligible for Coverage or if documentation provided does not

conform to requirements in Item B2, above.

D) FEEDBACK ON REJECTIONS, PARTIAL PAYMENTS OR DELAYS 1. Komatsu will provide a specific explanation on the Claim document if the Claim is rejected or

partially paid. Komatsu’s explanation will be noted in the “Comments” section of the Claim. The “Comment” section will also include the name of the Service representative at Komatsu responsible for making the claim decision.

2. Komatsu will notify the Distributor if the assessment time for a particular Claim will exceed 30 days.

E) CLAIM DECISION APPEAL PROCESS Distributor can request Komatsu to reassess the reimbursement decision on a Claim that has been partially paid or rejected if the Claim was not “Late” per the Reimbursement Policy Section in the Warranty and Coverage Policy. Reassessment timing and processing will follow the guidelines below:


Page 3 of 5



1. Distributor can request reassessment by resubmitting a Claim to Komatsu. The resubmitted Claim value must total the portion of the original claims repair cost that was not reimbursed and the new Claim must include the original Claim's reference number in the beginning of the “Comments” section of the Claim.

2. The Distributor should clearly address each of Komatsu’s reasons for partial payment or rejection in the resubmitted Claim. This could include providing Komatsu with additional technical information on the failure and/or providing Komatsu with more details on the costs incurred in completing the repair.

3. The Claim must be resubmitted within 30 calendar days of receiving the reimbursement decision from Komatsu to be eligible for reassessment.

4. The resubmitted Claims will be assessed per the guidelines in Section B, above. 5. Distributor will have one opportunity to request reassessment of a Claim per Covered Repair.

F) PAYMENT PROCESSING

1. Payments for Claims that are approved will be credited the same night to the Distributor’s Accounts Receivable account with Komatsu.

2. Claim payments that include parts with MRA Numbers are staged. Distributor will receive reimbursement for the exchange price of the component when Claim is approved for payment and receive reimbursement for the cost of the core when Komatsu’s Core Processing Center receives the failed component core.

G) PARTS RECALLS

1. Komatsu may recall parts replaced on Claims to complete an engineering analysis of the failure. Please refer to the Failed Parts Management Section of the Reimbursement Policy Section for details on the recall process.

H) CLAIM REVERSALS 1. Komatsu can opt to reverse a Claim payment decision if:

a. The Distributor is unable to meet the performance requirements set out in the Failed Parts Management Section of the Reimbursement Policy Section of the policy manual. Performance failures include: i. Not responding within the time frame specified to Komatsu parts recall notice. ii. Not shipping the parts with MRA Numbers back to Komatsu’s Core Processing Center

within the specified timeframe. iii. Not being able to coordinate the parts pick up with Komatsu’s shipping agent. iv. Not having the failed part to return to Komatsu.

b. Additional information received by Komatsu (engineering analysis of the failed parts, or new information about the circumstances surrounding the repair) indicates that the repair is not covered by Komatsu’s Warranty and Coverage Policies.

c. The Claim is entered in error and is the duplicate of another Claim that was received and processed by Komatsu.

2. Komatsu will reverse a Claim by issuing a new Claim in Komatsu’s Claim System for the negative of the amount of the original Claim. Komatsu will also include a note in the


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“Comments” section of the original Claim indicating that the Claim has been reversed. A Komatsu service representative will notify the Distributor Claims Administrator when a Claim is reversed.

3. Distributor can appeal the Claim reversal using the process described in Section E above.

I) CLAIM REVIEWS Komatsu can opt to review a representative sample of the Distributor Claims paid on a quarterly basis at the Distributor’s location. The Claims selected for the review will pertain to Claims processed by Komatsu in the calendar year quarter that ended prior to review date. Distributor will be required to provide the following to support the review: 1. Specific Machine and Customer files that pertain to Claims selected for the review. 2. Access to Distributor Business System, and the Distributor Claim Administrator to navigate the

Distributor Business System and provide all Distributor specific information pertinent to the review.

3. Conference room at the Distributor’s head office or main branch location with ethernet connections.

Komatsu will perform the following verification during the review process: 1. Eligibility of the Claims for reimbursement from Komatsu. 2. Amounts reimbursed on the sample Claims are in accordance with Item 2 in Section B.

Komatsu will compile review findings in a report to the Distributor. If Komatsu determines that specific Claims in the sample are not eligible for reimbursement, or that the reimbursement provided by Komatsu exceeds values specified in Item 2 in Section B, Komatsu will extrapolate the percent excess payments on a dollar basis to the entire population of Claim payments for the quarter in review to determine the total value of Claim overpayments. Komatsu will debit the Distributor’s open account for the total overpayment within 30‐days following the completion of the review. Komatsu may expand the scope of the review to Claims submitted in the year prior to the review date if significant issues are identified with the Claim quality in the review process.

J) DEFINITIONS

1. Covered Repair: repair that is eligible for reimbursement under one of Komatsu’s policies. A repair that is eligible for reimbursement for Komatsu has Coverage.


3. Distributor: Authorized Komatsu Distributor. 4. Claim: A Claim is a request to Komatsu for reimbursement for services provided by a



Page 5 of 5




6. MRA Number: Komatsu issues MRA Numbers when Distributors purchase certain parts from Komatsu. An MRA Number is an authorization for the Distributor to return a replaced part to Komatsu for a core credit

7. Komatsu’s Core Processing Center: Komatsu’s Core Processing Center receives, evaluates and processes component cores for Komatsu Parts Department.

K) REFERENCES

1. Reimbursement Policy 2. Komatsu’s Claims System presentation

L) REVISIONS Revision Date Content Author 1 12/5/2010 Draft document K. Venkiteswaran, E.

Keane, G. Toro, T. Robson, J. Bloodgood

TRAINING SCHEME SPP 4‐1‐1

Page 1 of 2



TRAINING SCHEME

Contents A) PURPOSE ................................................................................................................................. 1 B) OVERVIEW............................................................................................................................... 1 C) BASIC SCHEME ........................................................................................................................ 1 D) ORDERING TRAINING MATERIALS ......................................................................................... 2 F) FEES ......................................................................................................................................... 2 G) DEFINITIONS............................................................................................................................ 2 H) REFERENCES ............................................................................................................................ 2 I) REVISIONS ............................................................................................................................... 2 A) PURPOSE

This schedule provides an overview of Komatsu’s service training scheme.

B) OVERVIEW Komatsu’s Training Department is headquartered in Cartersville, Georgia. Komatsu offers service training online and in person. In class training is conducted at Komatsu’s Cartersville and Tucson facilities, and at various Distributor Certified Training Centers and Customer locations on worldwide basis.

C) BASIC SCHEME Komatsu has a two tier framework for service training. 1. Basic Training: Komatsu provides basic training courses to Distributors online through the

Komatsu Virtual Campus system. These courses are designed to provide the Distributor service employees with fundamental information to qualify for advanced training courses, or provide them with the basic training required to perform their daily jobs. Basic training for technicians for example, includes courses on the fundamentals of engines and on the structure and function of systems in new model machines. Basic training for Distributor service employees such as a Claim Administrator includes courses on failure analysis and the use of MS PowerPoint. Online courses require that the Distributor participant complete a test to pass the course.

2. Qualification Training: Komatsu offers instructor led training for more advanced machine specific courses for Distributor technical personnel and mining Customers. These courses generally last between 3 and 5 days and train the attendees to troubleshoot, maintain, repair, or operate machines. Training Managers at the Distributor should take these courses, and in turn use the materials provided by Komatsu to develop specific training courses for technicians and other service employees at the Distributor. Komatsu’s in class course offering primarily

TRAINING SCHEME SPP 4‐1‐1

Page 2 of 2



focus on new products being introduced to the market and current production machines. Komatsu can also provide training classes on legacy products on an as needed basis. Distributor can view courses being offered and enroll in training sessions by accessing the Komatsu Virtual Campus system. The Distributor can request a specific course for a legacy product or request training for Customers by submitting a request for the class on Komatsu Virtual Campus.

D) ORDERING TRAINING MATERIALS

1. Distributor Training Managers can order materials through the Komatsu Virtual Campus system.

E) COPYRIGHT INFORMATION 1. All the training materials provided by Komatsu such as presentation kits or guides are the

property of Komatsu. Distributor cannot repurpose the information without the prior written consent from Komatsu.

F) FEES Fees depend on the type of course, location and duration. The Komatsu Virtual Campus system specifies the fees by course number and date.

G) DEFINITIONS 1. Customer: Machine owner. 2. Distributor: Authorized Komatsu Distributor. 3. Komatsu: Komatsu America Corp. 4. Komatsu Virtual Campus: Komatsu Virtual Campus is Komatsu’s learning management system.

The system is available through the Training link on Komatsu’s extranet (https://www.komatsuamerica.net). Please see presentation on Komatsu Virtual Campus for instructions on how to gain access and use the system.

5. Claim Administrator: person responsible for filing Claims with Komatsu. The Claim Administrator will need to be familiar with all of Komatsu’s warranty and coverage policies.

6. Training Manager: person responsible for technical skill development for the service staff at the Distributor.

H) REFERENCES 1. Komatsu Virtual Campus presentation

I) REVISIONS Revision Date Version Content Author 1 12/23/2010 1 Draft document E. Keane, K.

Venkiteswaran, M. Robson

PUBLICATIONS SCHEME SPP 5‐1‐1

Page 1 of 3



PUBLICATIONS SCHEME

Contents A) PURPOSE .............................................................................................................................. 1 B) OVERVIEW .......................................................................................................................... 1 C) TYPES OF SERVICE PUBLICATIONS ........................................................................... 1 D) ACCESSING SERVICE PUBLICATIONS ....................................................................... 2 E) PUBLICATIONS ACCESS FEES....................................................................................... 3 F) ORDERING SERVICE PUBLICATIONS ......................................................................... 3 G) DEFINITIONS....................................................................................................................... 3 H) REFERENCES ...................................................................................................................... 3 I) REVISIONS ........................................................................................................................... 3 A) PURPOSE

This schedule provides an overview of Komatsu’s publications scheme.

B) OVERVIEW Komatsu’s Publications Department is headquartered in Cartersville, Georgia. Komatsu’s Publications staff located in Cartersville and at Komatsu’s plants, write, edit and publish technical service materials for machines sold by Komatsu.

C) TYPES OF SERVICE PUBLICATIONS 1. Field Assembly Manual: these manuals provide the Distributor instructions on proper assembly

and commission procedures for machines. These manuals are generally published only for machines shipped as sub assemblies from Komatsu.

2. Operation & Maintenance Manuals: these manuals are included in the cab of each machine shipped from Komatsu. The manuals provide information on maintenance and operation of the machine.

3. Parts Books: these manuals are included in the cab of each machine shipped from Komatsu. The manuals provide information on the replacement service parts for the machine.

4. Shop Manuals: these manuals provide the Distributor with the following information for specific machines: structure and function of various systems, standard operational specifications, troubleshooting guides, schematics for various electrical and hydraulic systems, reusability standards for machine parts, and typical repair procedures for various components.


Page 2 of 3



5. Parts & Service Newsletters: these documents provide the Distributor with updates on new parts and service procedures for machine updates and upgrades. These changes generally become standard or option offerings on current production or new model machines and are in time rolled into the Parts Books or Shop Manuals.

6. Flash News Letters: these documents are used to alert the Distributor to potential impending issues in the field and generally provide preventative maintenance or repair procedures to address the issue.

7. Miscellaneous Manuals: these are a collection of documents and manuals including Komatsu Oil Wear Analysis (KOWA) that is a system for measuring the density of metal wear particles in used oil, KUC procedures – document that supports sales promotion activities for Komatsu genuine undercarriages, Service Tool Guide – shows special tools and software to use for the engine and chassis, Welding Manuals covers basic welding procedures, the Gold Book is a parts and accessories catalog and other material that does not have a specific model association, such as the air conditioner manual and crane loading rating guide.

D) ACCESSING SERVICE PUBLICATIONS 1. Komatsu ships the Operation and Maintenance Manual and the Parts Book with each machine.

2. CSS System: Distributor can access all of the service publications, including the Operation and Maintenance Manual and the Parts Book, through Komatsu’s CSSNet website. Please see CSSNet link on the Service homepage of Komatsu’s extranet system (https://www.komatsuamerica.net). Presentation Komatsu Extranet Service Applications provides information on how to access and use the system. Komatsu will also provide a hard drive with a copy of all of the parts and service publications to each Distributor branch location. The hard drives must be returned to Komatsu for exchange on a quarterly basis for updates.

3. CSS in the Field: Distributor can request additional hard drives at a reduced rate for service trucks or other applications. These must also be returned to Komatsu for exchange on a quarterly basis for updates.

4. Paper subscriptions: Distributor can order paper subscriptions for all new and revised service publications as described in the Paper Subscription Announcement.

5. Flash Drive: Distributor can order certain service publications on an individual Flash Drive. Please see the Komatsu’s Extranet (https://www.komatsuamerica.net/northamerica/service/css/orderforms) for details.

6. VIP sites: if the Distributor has a Customer that desires a portal to access service information allowed by Komatsu, the Distributor can request a VIP site created. Please see the Komatsu


Page 3 of 3



Extranet system for the request form and details (https://www.komatsuamerica.net/northamerica/service/css/orderforms).

E) PUBLICATIONS ACCESS FEES 1. CSS System: Komatsu will bill the Distributor open account in May of each year for access to

the CSS System including the hard drive exchange program. The subscription fee for this program is currently $1155/ Distributor branch. This is a mandatory subscription for all distributor branches.

2. CSS in the Field: Additional hard drive exchange subscriptions can be ordered for $450/subscription. These can only be ordered after every branch of a Distributor has a current subscription to CSS. Please click link for more details, CSS in the Field Announcement

F) ORDERING SERVICE PUBLICATIONS 1. Distributors can order paper copies of the service publications for the Distributor service

library or for resale to Customers.

2. To place order for publications, Distributor must access the Komatsu Extranet Literature Ordering system (https://www.komatsuamerica.net/northamerica/literature).

3. The Distributor’s open account with Komatsu will be charged for orders.

4. Fax orders are accepted at (678) 721‐3430. There is a $15 surcharge for any fax order.

G) COPYRIGHT INFORMATION 1. All of the service publications are the property of Komatsu. Distributor cannot repurpose the

information without the prior written consent of Komatsu.

H) DEFINITIONS 1. Customer: Machine owner.

2. Distributor: Authorized Komatsu Distributor.

3. Komatsu: Komatsu America Corp.

I) REFERENCES 1. Komatsu Extranet Service Applications presentation

J) REVISIONS Revision Date Version Content Author 1 12/23/2010 1 Draft document E. Keane, K.

Venkiteswaran, S. Smither

February 27, 2009 Attn: Service Managers and Parts Managers

IMPORTANT NOTICE Paper Subscriptions for KA’s Technical Service Manuals

Komatsu Publications is pleased to provide you with several options for the Annual Publication Subscription Service. To reduce cost, we are now offering the option of receiving a Shop manual foldout subscription, paper only. Pricing plans for the 2009 subscription service: OMM, FAM, Shop Manual, Shop Manual Supplements *Paper Foldout Option*

1) $7,900 for KAC’s Construction and Utility product (OMM, FAM, SM and SMS) To order use the Komatsu Extranet Literature Ordering system form # KACCU09-PAPER

2) $2,500 for KAC’s Mining Division product To order use the Komatsu Extranet Literature Ordering system form # KACMD09-PAPER

OMM, FAM, Shop Manual, Shop Manual Supplements *Synthetic Foldout Option*

1) $10,500 for KAC’s Construction and Utility product (OMM, FAM, SM and SMS) To order use the Komatsu Extranet Literature Ordering system form # KACCU09-SYN

2) $3,000 for KAC’s Mining Division product To order use the Komatsu Extranet Literature Ordering system form # KACMD09-SYN

New to 2009

Shop Manual Foldout Subscription. This offer is specific only for Paper foldouts.

1) $2050.00 for KAC’s Construction and Utility Foldouts. To order use the Komatsu Extranet Literature Ordering system form # KACCUFD09-PPR

2) $1500.00 for KAC’s Mining Division Foldouts. To order use the Komatsu Extranet Literature Ordering system form # KACMDFD09-PPR

ABOUT THE SUBSCRIPTION SERVICE: At the beginning of each month, the subscribers will receive hard copies of the new and revised Operation & Maintenance Manuals, Field Assembly Manuals, Shop Manuals, and Shop Manual Supplements* that were released during the previous month. Please note that Parts Books are not included in the paper subscriptions. The subscription service runs from April 1, 2009 to March 31, 2010 and annual renewal is automatic. If you are a current subscriber and would like to change your subscription service, please contact us. If you are currently not a subscriber but would like to receive automatic monthly publication releases, you can contact us or sign up for your subscription service through literature ordering on the Extranet. Julie Summerfield (Publications Coordinator) 678-721-3434 ([email protected]) Patsy VanBallegooijen (Publications Administrator Assistant) 678-721-3408 ([email protected]) *Excludes the foldout subscriptions. . This offer expires 4/15/2009

CSS IN THE FIELD

Komatsu is proud to announce our new “CSS in the Field” program. CSS in the Field was developed to provide an affordable solution for distributors to equip every field technician with electronic parts and service manuals for our complete product line.

Komatsu’s “CSS in the Field” subscription rate is $450.00 annually for those participants that qualify.

Komatsu will provide updated Hard Drives quarterly.

Eligibility Requirements - Each registered distributor branch within that distributorship must maintain a current initial subscription to qualify for the reduced rate.

Example: Distributor “A” has five (5) registered branches. Each of the five branches must purchase and maintain at least five initial subscriptions @ $1155.00/subscription prior to qualifying for “CSS in the Field.”

For additional clarification or questions concerning the CSS in the Field program and how it can benefit you, please feel free to e-mail DataKom at [email protected] call Sabrina Wilson at 678-721-3407.

Komatsu looks forward to a continued successful relationship with you in 2009.

DataKom Publications & Training Division Komatsu America Corp. 100 Komatsu Drive Cartersville, GA 30121

ETSI SUBMISSION GUIDELINES SPP 6‐1‐1

Page 1 of 7



ETSI SUBMISSION GUIDELINE

Contents A) PURPOSE .............................................................................................................................. 1 B) CRITERIA FOR ISSUING ETSIs ...................................................................................... 1 C) SITUATIONS WHERE AN ETSI IS NOT APPROPRIATE........................................... 1 D) PROCESS FOR ISSUING ETSIs ........................................................................................ 1 E) STATUS OF YOUR ETSI .................................................................................................... 2 F) DEFINITIONS....................................................................................................................... 2 G) REFERENCES ...................................................................................................................... 3 H) REVISIONS ........................................................................................................................... 3 I) APPENDIX 1 ......................................................................................................................... 3 A) PURPOSE

1. This schedule provides guidelines to other Komatsu LTD Sales Subsidiaries on issuing ETSIs in the SMAP to report quality problems for Komatsu’s Peoria manufactured dump trucks. Presentation SMAP includes information on how to access and use the SMAP system.

B) CRITERIA FOR ISSUING ETSIs Please use the following criteria to assess if it is appropriate to raise an ETSI for your market:

1. Documented product design issue that is of a safety concern for the operator or the environment;

2. One (1) documented incident of a premature failure of an updated part that was repaired or replaced using information from a Parts & Service Newsletter or under a Factory Campaign; or

3. Three (3) or more documented incidents of premature failure of the same part number having the same fail mode within a 12‐month period (first failure to the last of the 3 failures).

C) SITUATIONS WHERE AN ETSI IS NOT APPROPRIATE 1. FORM ACCIDENT REPORT is the appropriate means to notify Komatsu on accidents involving

Peoria manufactured dump trucks (not TSIs or ETSIs). 2. Certain markets may have new regulations or Customer requests that require modifications to

the product. Please submit request for engineering support for these modifications using Komatsu’s Special Feature Request (SFR) process through your Sales Department.

D) PROCESS FOR ISSUING ETSIs 1. Confirm that the TSI(s) issued to first document the product deficiency or failure incident is

(are) comprehensive enough to support a failure analysis solely based on the evidence provided (without a site visit). The information included in the TSI should provide the reader:


Page 2 of 7



a. Information on how the truck is being utilized; b. A good understanding of the failure/deficiency you’ve experienced; and c. Detailed information on all of the factors that could have contributed to the failure. d. Appendix 1 is a list of items that is considered essential data that will complete the story on

a particular failure. All of the items may not be necessary for every failure, but the TSI should have all of the information that is relevant to the specific situation for the TSI to be considered complete or comprehensive.

2. Confirm that failed parts referenced in the TSI(s) are in your possession and are protected and stored in a clean environment. A minimum of two sets of failed parts will be required if the ETSI is issued based on the three (3) incidence criteria. If parts are repaired, please confirm that the photographs included on the TSI are thorough and comprehensively describe the failure (include photos before and after the repair).

3. If the TSI(s) are complete, the failed parts are in your possession and available for recall, and the failure information meets the criteria specified in Section B, please escalate the TSI to an ETSI.

4. In completing the ETSI form, please use the criteria specified in Appendix 2 (“Problem Risk Criteria”) to appropriately complete the “Problem Occurrence”, “Problem Importance”, “Market Impact”, “Company Priority” and “Problem Rank” sections of the ETSI. Please utilize the install base for the trucks in your market to calculate the “Occurrence Ratio”.

5. Once your ETSI is complete, please forward your ETSI to Subsidiary: “USA: KAC” ‐> Section Code: “00120” (section name “Product Quality Support”).

E) STATUS OF YOUR ETSI

1. Once you forward your ETSI, it is routed to the Komatsu’s Service Department. The Service Department Technical Service personnel will review your ETSI to ensure that the information provided is complete. We may contact you for additional information to complete the failure documentation before we pass your ETSI notice to the Quality Department.

2. The Quality Department will prioritize your ETSI relative to all of the other ETSIs received for the Peoria dump trucks, and then manage a quality review of the failure(s). Based on the results of the quality review, Komatsu may or may not decide to pursue product modifications or changes. If you require an update on the current status of your ETSI, please contact your local Komatsu representative. Presentation Komatsu Regional Representatives includes a list of Komatsu representatives by Distributor.

F) DEFINITIONS 1. Customer: Machine owner. 2. Komatsu: Komatsu America Corp. 3. Distributor: Authorized Komatsu Distributor.


Page 3 of 7



G) REFERENCES 1. Komatsu Regional Representatives presentation. 2. SMAP presentation. 3. ACCIDENT REPORT form.

H) REVISIONS Revision Date Version Content Author 1 12/23/2010 1 Draft document K. Venkiteswaran, M.

Busha, M. Kocker, J. McKinzie, T. Robson

I) APPENDIX 1 Failure Data and Information Required to Support Failures When submitting a warranty claim, TSI, or failure report, some or all of the following items may be necessary to properly explain the failure.

1. Basic Truck information:

Truck model, type, subtype and serial number SMR of truck SMR of failed part Type of fluid used in the hydraulic system, engine, wheel motor, transmission, final

drive, etc. Tire size, make and model if failure pertains to steering and suspension parts.

2. Service History of Truck:

Service history of truck and component Oil sample history Customer added options or modifications that effect the failed part

3. Truck Utilization Data:

PLM Downloads GE/SEBAS Downloads Komtrax PLUS/ VHMS Download

4. Application / Site information:

Mine profiles, speed limits and road conditions Ambient temperatures, altitude, etc. Survey of other trucks at site to confirm if they have same problem


Page 4 of 7



Photos of loading areas and general portions of the haul roads

5. Failure information:

Failed part name and Komatsu part number Serial number, date code, supplier code and other data on failed part Failed parts status, (available / not available for return to factory) Was it an original part, replacement part? Was the part purchased from Komatsu America? Or locally sourced? Photos of failure (close up and far away) Failure description (what are all the parts that have failed and how have they failed) Temporary corrective actions (detailed description, photos and if possible sketches

or drawings)

6. Misc. information:

Warranty Claim number TSI number

The above list is not comprehensive. If there are other items that may have affected the failure, please include information on those items along with the TSI. Example 1: Hydraulic Pump failure Required information to support the TSI:

a. Truck model, type, subtype and serial number b. SMR of truck c. SMR of failed part d. Type of oil used in hydraulic system e. Service history of hydraulic system f. Oil sample history of hydraulic system g. Customer added options of modifications to hydraulic system h. PLM download i. VHMS/Komtrax PLUS download j. Ambient temperatures k. Failed part number l. Serial number of failed part m. Failed part status (available / not available for return to factory) n. Photos of failed part o. Warranty claim, and/or TSI number

Example 2: wheel motor transmission failure Required information to support the TSI:


Page 5 of 7



a. Truck model, type, subtype and serial number b. SMR of truck c. SMR of failed part d. Type of oil used in wheel motor e. Service history of electric drive system f. Wheel motor oil sample history g. PLM downloads h. GE / SEBAS downloads i. Komtrax PLUS/ VHMS downloads j. Mine profile and road conditions k. Ambient temperatures l. Failed part name and Komatsu part number m. Serial number, date code, supplier code and other data on failed part n. Failed parts status (available / not available for return to factory) o. Was it an original part, replacement part? p. Was the part purchased from KAC? Or locally sourced? q. Photos of failure (close up and far away) r. Warranty claim and/or TSI number

J) APPENDIX 2

1. Purpose: To aid in determining the severity of a reported problem.

2. Required Action.

The following risks require immediate action to address the situation and are automatically considered to be Rank A: • Safety – one instance may result in injury or death. • Regulatory – one instance has resulted or may result in litigation or a violation of a statutory

and/or regulatory requirement. • New Part/System Change – one instance within one year after the introduction of a new or

changed part or system.

Calculate a problem severity Rank based upon the scores of the risks below:


Page 6 of 7



3. Problem Occurrence.

Search SMAP for the same part number with the same problem. Search SAP for warranty claims on the same part number with the same problem. Review the table below, select the highest rated risk and determine a score.

Risk Rating Rating Rating Occurrence Ratio (Quantity of model‐type with problem/quantity of total model‐type operating in market)

Below 2% 2%‐3% Above 3%

Last 12 Month Instances (Quantity of additional TSI & ETSI in SMAP and Warranty Claims in SAP)

0‐1 2‐3 4+

Last 5 Year Instances (Quantity of additional TSI & ETSI in SMAP and Warranty Claims in SAP)

0‐5 6‐10 11+

SCORE A 1 3 5

4. Problem Importance.

Review the table below, select the highest rated risk and determine a score. Risk Rating Rating Rating

Machine Down (Number of days machine will be out of service)

1 2‐3 4+

Cost (Amount of US dollars to put machine back into service)

$1‐$9,999 $10,000‐$19,999

$20,000 or more

SCORE B 1 3 5

5. Market Impact.

Review the table below, select the highest rated risk and determine a score. Risk Rating Rating Rating

Customer Importance‐Current (Number of machines operating)

1‐24 25‐49 50+

Customer Importance‐Future (Number of machines on order)

1‐4 5‐9 10+

Strategic Area (Time in new country, terrain or application)

> 2 yrs 1‐2 yrs < 1 yr

SCORE C 1 3 5


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6. Company Priority.

Review the tables below, select the highest rated risk and determine a score from each table and add them together.

Risk Rating Rating Rating Problem Occurrence Score 1 3 5

SCORE D 0 10 20 Plus

Risk Rating Rating Rating Problem Importance Score 1 3 5

SCORE E 0 5 10 Plus

Risk Rating Rating Rating Market Impact Score 1 3 5

SCORE F 0 10 20

7. Calculate Problem Rank.

Calculate a Rank based on the above scores as follows: (Problem Occurrence Score A X Problem Importance Score B X Market Impact Score C) + (Summed Company Priority Scores D+E+F)

Rank A = Score of 110 or higher. Rank B = Score of 50‐109. Rank C = Score of 49 or lower.

KEY DISTRIBUTOR CONTACTS FORM SPP 10‐1‐1 Page 1 of 2



KEY DISTRIBUTOR CONTACTS FORM

Contents A) PURPOSE .............................................................................................................................. 1 B) DEFINITIONS....................................................................................................................... 1 C) REVISIONS ........................................................................................................................... 1 A) PURPOSE

This form can be by the Distributor to update Komatsu on key service contacts at the Distributor.

B) FILING PROCEDURE Distributor should email completed form to [email protected] with the subject “Key Contact Update”.

C) DEFINITIONS 1. Distributor: Authorized Komatsu Distributor. 2. Komatsu: Komatsu America Corp.

D) REVISIONS Revision Date Content Author 1 12/5/2010 Draft document K. Venkiteswaran

KEY DISTRIBUTOR CONTACTS FORM SPP 10‐1‐1 Page 2 of 2



1. DISTRIBUTOR NAME/Komatsu Code: DATE:

2. KEY SERVICE REPRESENTATIVES:

a. DISTRIBUTOR REPRESENTATIVE – VP or GM of Product Support or Service

Name Phone Number Email Address Title

b. CLAIM ADMINISTRATOR Name Phone Number Email Address Branch Names/Codes

[ALL or list specific branches that each person is responsible for]

c. FC COORDINATOR Name Phone Number Email Address Branch Names/Codes


d. TRAINING MANAGER Name Phone Number Email Address Branch Names/Codes


e. TECHNICAL COMMUNICATOR Name Phone Number Email Address Branch Names/Codes


f. SERVICE MANAGERS Name Phone Number Email Address Branch Names/Codes


RECEIVING INSPECTION FORM SPP 10‐1‐2 Page 1 of 2



RECEIVING INSPECTION FORM

Contents A) PURPOSE .............................................................................................................................. 2 B) FILING PROCEDURE ........................................................................................................ 2 C) DEFINITIONS....................................................................................................................... 2 D) REVISIONS ........................................................................................................................... 2

RECEIVING INSPECTION FORM SPP 10‐1‐2 Page 2 of 2



A) PURPOSE

1. A RECEIVING INSPECTION REPORT must be filled out by Distributor to confirm the specifications and condition of the equipment as soon as it is received. Overages and shortages should be identified as well. When any unsatisfactory conditions are found, they must be restored to the original condition.

2. In the event that any damage or shortages are found that are presumably from the factory, a Claim must be submitted according to Komatsu’s Standard Product Warranty Coverage Policy.

3. In the event that any damage occurred during handling or transportation, a claim for compensation should be submitted to the insurer or carrier.

4. The scope of inspection shall cover not only machines, but also their attachments, accessories, and service tools.

B) FILING PROCEDURE

Komatsu sometimes includes carbonized forms with each machine. An electronic version is also available in this section of the Service Policy and Procedure Manual. After completion, the form should be filed in the Distributor’s Machine File.

C) DEFINITIONS 1. Distributor: Authorized Komatsu Distributor. 2. Komatsu: Komatsu America Corp. 3. Customer: Machine owner. 4. Machine File: Electronic or paper files at the Distributor, searchable by machine model and

serial number that includes copies of all of the Distributor’s interactions with a machine. 5. Coverage Type or Coverage Policy: Komatsu policy that specifies reimbursement terms for

specific repairs to Machines, Parts or Components.

D) REVISIONS Revision Date Version Content Author 1 1/3/2011 1 Draft document B.Miller

Engine Model Serial No.

Serial No.

Result of Inspection Reference: Nature of Problem/ActionItem conforms to specifications or in good condition

x Does not conform to specifications or is damagedCorrections Made

Damage Damage

Inspector's Comments:

Distributor Name

Inspector's Signature Location

Other

Other

TypeStandardLong

TypeSize

Other

OPT

ION

AL

EQU

IPM

ENT

Tires - size

Width

Wide

Serial No.

Type

Nature of ProblemDamage during handling or transportationWrong parts, missing parts, mistaken specification

Action (Reference)

AC

CES

SOR

Y Publications - Operations & Maintenance Manual

Check

KO

MTR

AX

/ VH

MS

/ O

RB

CO

MM

3). Controllers

Electronic controller suspension system

Komtrax /VHMS Part #

Orbcomm / Model / Serial #Komtrax /VHMS Serial #

Parts BookOpen ROPs canopy serial No.

Body

Oil, fuel or coolant leakage

Electrical parts & wiring

Safety Manual

Service tools

Blade or bucket & frameCylinders, rods & piping

Rust on linkage

Undercarriage components

Track shoe

Track typeRipper

CoalOther

Full-U

FRO

NT

ATT

AC

HM

ENT

CEKC2100B rev 0907 (replaces CEKC2100) White: Distributor copy Yellow: Machine File Copy Pink: Komatsu Copy Printed in the U.S.A.

Joystick steeringHeater / Pressurizer

Arm - Short

CA

NO

PY

Komatsu America Corp.Inspection Date

& C

AB

Dozer blade - Straight

RECEIVING INSPECTION REPORT ALL MODELS Receiving Date

Scarifier

Specification

Load & carry arrangement

2). Cable

Semi-U

OutriggersOthers

WinchCounterweight

Check

Closed cab serial no.

Long

Tilt

Four (4) Section

Medium

REA

R

ATT

AC

HM

ENT

Drawbar

Machine Model

2

Specification

Attachment(s)

Complete Serial No. (Including Kind Code) SMR

HRS

Make

Torque Converter Model Serial No. Other Component Model

Instruction plates

1

Other, specific

BatteriesOperator's seat

Air conditioner

Emergency steering

Monitor System

MH800 Monitor Serial #

Transmission Model

Bucket

Front plow or blade

Three (3) SectionHigh lift

Snow Wing

Capacity

Serial No.

NOTE: Below are the items of this machine to be checked at receiving inspection. Please use the shipping documents to confirm correctly all items for which inspection is necessary. If any problem is discovered, enter this in the comment column.

Serial No. Serial No.Model

Claim for compensation from insurance/carrierClaim for compensation through sales department of the distributor

CEK

C21

00B

Boom - Standard lift / Load & carry 1). Antennas

ModelMake

CONSIGNMENT MACHINE INSPECTION FORM SPP 10‐1‐3 Page 1 of 2



CONSIGNMENT MACHINE INSPECTION FORM


CONSIGNMENT MACHINE INSPECTION FORM SPP 10‐1‐3 Page 2 of 2



A) PURPOSE

1. There may be situations where Distributors have to store a machine in excess of 30 days. 2. Distributor must follow the storage guidelines specified in the machine’s Operation &

Maintenance Manual during the storage period document the service using this form. 3. Distributor must replace missing/damaged parts or perform repairs to return the machine to

pre‐storage conditions before delivery the machine to a Customer.

B) FILING PROCEDURE 1. Complete each inspection item on the form. On the left side of each column, check whether

the item is Not Applicable, in Good condition, or Needs Attention. Then, on the right side of each column, check what action was performed on the specific item: a. Topped Off Fluid Level b. Repaired c. Represerved d. Adjusted e. Cleaned f. None (no action)

2. Explain which items needed attention or repairs in the lines below the tables. 3. After completion, the form should be signed by the inspector and filed in the Distributor’s

Machine File.

C) DEFINITIONS 1. Machine: Komatsu manufactured machine eligible for Coverage under one of Komatsu’s

policies. 2. Distributor: Authorized Komatsu Distributor. 3. Komatsu: Komatsu America Corp. 4. Customer: Machine owner. 5. Machine File: Electronic or paper files at the Distributor, searchable by machine model and

serial number that includes copies of all of the Distributor’s interactions with a machine.


a) Engineb) Drive Components

Inspector's Signature:

c) Corrosion/ Rustd) Other Deterioration

Inspection Item

5) Check tire pressure

Inspection Item

12) Operate machine and perform function check of:

3) Cooling system anti-freeze protection at -30° F (-34° C)10) Functional check of each hydraulic system component.

Cleaned

Needs Attention None

Action

Repaired

Represerved

Adjusted

Action

Topped off Fluid Level

Repaired

Represerved

Adjusted

Topped off Fluid Level

Good Cleaned

Needs Attention None

1) All oil compartments inspected for water contamination

Inspection InspectionGood

Machine Condition Inspection must be completed every 30 daysPlease perform all inspection points and perform necessary actions to correct deficiencies.

Some items may not apply to certain models.

Make Model Serial No.

Date of Inspection SMR (Ending)

Attachment(s)Serial No. ModelMake

Distributor Name

City State/ Province Zip Code

Distributor Code

Street Address

4) Check machine for the following:

Consignment Machine Inspection Form

Not ApplicableNot Applicable

Engine Serial No.

Inspector's NameKomatsu America Corp.

Serial No. Engine ModelMachine Model

a) Leaksb) Damage

Record Actual:

2) Check all fluid levels

6) Check fuel level and add fuel additive if necessary in cold climates.

Record Battery Voltage:

7) Start engine and operate until at operating temperature and starting battery is fully charged.

11) Fully extend and retract each hydraulic cylinder

KA

C52

2000

Explain items needing attention/ repairs made:

8) Check KOMTRAX website to confirm machine has transmitted recent location and service meter reading

9) Functional check of gauges and monitor panel

c) Steering Mechanismsd) Operating Controls (i.e. levers, pedals. etc.)e) Attachments

PRE‐DELIVERY AND DELIVERY INSPECTION FORM SPP 10‐1‐4 Page 1 of 3



PRE‐DELIVERY AND DELIVERY INSPECTION FORM

Contents A) PURPOSE .............................................................................................................................. 2 B) FORM INSTRUCTIONS ..................................................................................................... 2 C) FILING PROCEDURE ........................................................................................................ 3 D) DEFINITIONS....................................................................................................................... 3 E) REVISIONS ........................................................................................................................... 3




A) PURPOSE

Service Inspection Forms are used for recording the pre‐delivery and delivery conditions of a Machine and to provide a permanent record of the services having been performed, before the Machine is first handed over to the Customer for operation. These services are the responsibility of the Distributor and are provided to each Customer free of charge in order to obtain maximum machine performance and Customer satisfaction. The forms are categorized by product type. The content and purpose for these services are:

1. Pre‐Delivery: Completely assemble and inspect the Machine per the appropriate Inspection Report guideline for this service. Check all operational adjustments and ensure the machine is ready for Customer receipt.

2. Delivery: Consists of the physical delivery of the Machine to the Customer and the presentation of the appropriate manuals for the Machine. The proper operation, maintenance, and safety requirements should be explained to the Customer along with the warranty coverage and its requirements. The Distributor must make sure the Customer fully understands every feature, function, and operation of the Machine, including its safe operation.

B) FORM INSTRUCTIONS 1. Pre‐Delivery: Complete the top section of the form. Then, read through the items in the two

tables in the Machine Health Inspection section. The inspection items for Pre‐Delivery will be marked with an “x” in the LEFT column of each table to indicate whether to Inspect or Service the item. After each marked item is complete, write one of the following in the Comment boxes on the far left side of each table:

a. G: Good Condition b. B: Bad Condition c. C: Correction Made

2. Delivery: Complete the top section of the form. Then, read through the items in the two tables in the Machine Health Inspection section. The inspection items for Delivery will be marked with an “x” in the RIGHT column of each table to indicate whether to Inspect or Service the item, and also to Discuss the item with the Customer. After each marked item is complete, write one of the following in the Comment boxes on the far right side of each table:

a. G: Good Condition b. B: Bad Condition c. C: Correction Made

3. At the bottom of the form, be sure to include any important comments from the Customer and Inspector. Also specify if there are any maintenance programs associated with the Machine. After the form has been completed, it needs to be signed by the Customer and Distributor Inspector.




C) FILING PROCEDURE Komatsu includes carbonized forms with each Machine. Electronic versions are also available in this section of the Service Policy and Procedure Manual. A separate form is to be used for each service by completing the designated column on the form. After completion, one copy should be given to the Customer and a second copy should be filed in the Distributor’s Machine File.

D) DEFINITIONS 1. Machine: Komatsu manufactured machine eligible for Coverage under one of Komatsu’s



E) REVISIONS Revision Date Version Content Author 1 1/3/2011 1 Draft document B.Miller

R

NOTE: Below are the items related to operation, maintenance and lubrication of this machine to be performed at Pre-Delivery and DeliveryThe Operation & Maintenance Manual details all items to maximize machine availability. Some items may not apply to certain models

x x xx x x

x x x x Propulsion Alternator Slip Rings and Brushes x xx x x x Electrical Cabinet Contactors x x

6. Operationx x x x Instrument Panel Gauges, Warning Lights, Indicators x xx x x and Switches

x x x x Unusual Machine Noise x xx x x x Warning Horn, Lights & Window Wipers x xx x x x Back up Alarm x xx x x x Accelerator and/or Decelerator Control x xx x x x Transmission Neutral Lock & Shift Control x xx x x x Steering, Wheel Brakes & Parking Brake x xx x x x Differential Lock (if equipped) x xx x x x Body Pads & Hoist Control x xx x x x Attachment(s) x xx x x x Air Line Leakage x xx x x x Record: xx x x x Record: xx x x x Record: xx x x x Dynamic Retarding Control x x

7. Guidancex x x Safe Operation & Maintenance xx x x Procedure for Starting & Stopping Engine x xx x x 10, 50 & 100 Hour Maintenance Service xx x x 250 Hour Maintenance Service x

x x x 500 Hour Maintenance Service xx x x 1000 Hour Maintenance Service xx x x 2000 Hour Maintenance Service x

Warranty & Service Rules x Service Tools & Publications x

x x x Spare Parts Ordering Procedure xx x x 8. KOMTRAX / VHMS / PLMx x x x KOMTRAX / VHMS Part #x x x x KOMTRAX / VHMS Serial #x x x x Orbcomm / Model / Serial #x x x x MH800 Monitor Serial #x x x x Verify connection of all antenna xx x x x Verify system is reporting properly xx x x x Perform VHMS initialization / setting xx x x x Explanation of System and policies xx x x x Signed User consent agreements x

Customer Comments:

Specify SpecifySpecify Specify

Inspector Comments:

CommentPre-

Delivery

DiscussInspect Inspect

Machine Health Inspection

Pre-Delivery

Delivery

Comment

Service

Attachment(s)

KA

C 5

1740

0D

Comment

Service Report: Dump TrucksEngine Model Serial No. Pre-

Delivery DemoSale

Komatsu America Corp. Date of Delivery Inspector Name

City

Date of Inspection SMR Distributor Name

Customer Name Street Address

Delivery

Rent Sale Demo RentRP

Hydraulic Tank

Advantage Extended Coverage

Engine Oil Pan(s)

Offer and explain the programs listed below. List details in "Specify" if the machine is already enrolled in a particular program.

UsedNew

ModelMake

Zip Code

Location

Serial No.

ServiceItem

(Damage, loose bolts, rust, leakage, wiring)

Fuel Tank

Delivery

Service

Wheel Motor Brush Condition & LengthGrid Blower Motor Brushes

1. Visual CheckItem

Transmission Case Differential Case

InspectDiscuss

Radiator Coolant Level/Anti-freeze Protection Battery Electrolyte

Inspect

x

State/Province

Dump Body Guides

Model Serial No.

Comment

2. Lubrication or Service Chart Installed

Steering Linkage/Toe-in Drive Shaft Slip Yokes for Free Movement Wheel Brakes & Parking Brake Wheel Mounting Nut or Bolt Torques

Fuel Tank & Filter Sediment Drive Belt Tension(s)- Fan, Alternator, etc.

C: Correction MadeB: Bad Condition

Air Cleaner Element(s) & Connections Radiator Core & Cooling System Connections Engine Oil Filter(s), Fuel Filter(s) & Breather

3. Attachment(s) Installed4. Fluid Compartment Check

x

G: Good ConditionX: Item to be Serviced

Service

Machine Model Complete Serial No. (Including Kind Code)

xx

Make

and Distortions

Brake Oil Reservoir

5. Service

PTO Gear Case(s) Evaporators & Air Line Oilers Wheel Motor Gear Housing

Hydrair Suspension

Hydraulic Oil Filter Element(s) & Tank Breather

Lubricate per Lubrication or Service Chart

Torque Converter Final Drive Case Planetary Drive Case(s) Front Wheel Hubs

Inspector Signature:

Cab Air Filter

Repair and Maintenance Contract

Machine Maintenance Programs

KOWA

x

Drive Shaft Mounting Nut or Bolt Torques

Tire Air Pressures Tire Wear

x Inspect Entire Machine for Broken Welds, Cracks,

Air Tank Breather/Drain Moisture Wheel Motor Vent Breathers

Customer Signature:

This machine has been serviced and is in satisfactory condition. Adequate information has been given on its operation, careand maintenance. The Operation & Maintenance Manual has been received. All literature and explanations that pertain to safemachine operation have been received and understood.

PM PRO

Engine Low Idle RPM Engine High Idle RPM Engine Stall or Retard RPM

R

NOTE: Below are the items related to operation, maintenance and lubrication of this machine to be performed at Pre-Delivery and DeliveryThe Operation & Maintenance Manual details all items to maximize machine availability. Some items may not apply to certain models.

x xx xx x

x xx x xx xxx xx x xx x xx x xx x xx x xx x x

xx x xx x x xx x xx x

x x x xx x x xx x x x

xx x x

xx

x x x xx x

x xx x

x x x xx xx x details xx x details xx x details xx x details xx x details xxxx x

Customer Comments:

Record

received and understood.

Customer Signature: Inspector Signature:

RecordRecord

x

KOWAOther

x

KA

C 5

1750

0F

Discuss

The Operation & Maintenance Manual has been received. All literature and explanations that pertain to safe machine operation have been

6. Operation

This machine has been serviced and is in satisfactory condition. Adequate information has been given on its operation, care and maintenance

Record

8. Other

Unusual Machine NoiseWarning Horn, Lights & Window Wipers

x

x

x

x

Service

Comment

Service

5. Service

Pre-Delivery

City State/Province

Service Report: Crawler Dozers and Crawler Loaders

Location

Zip Code






Delivery

Rent Sale Demo RentDemoSale RP

UsedNew

MakeAttachment(s)

Serial No. Serial No.ModelModel Make

Radiator Core & Cooling System ConnectionsEngine Oil Filter(s), Fuel Filter(s) & BreatherHydraulic Oil Filter Element(s) & Tank Breather

Equip. Hyd. Relief PressureConverter Stall RPM

Blade or Bucket & Ripper (if equipped)

Inspector Comments:

B: Bad ConditionG: Good ConditionX: Item to be Serviced

Item

Inspect Inspect

Item

Inspect DeliveryPre-Delivery

Fuel Tank

Engine Low Idle RPMEngine High Idle RPM

Steering & Brakes

Backup Alarm

x

Y or N

Record

Service

Delivery

CommentDiscuss Pre-

Delivery

CommentInspectService

Comment

10. Machine Maintenance Programs Other

Spare Parts Ordering Procedure

Safety Manual Review

1. Visual Check


Engine Oil Pan (s)Transmission and/or Transfer Case

3. Attachment(s) Installed


4. Fluid Compartment Check

Record

7. Guidance

x

RecordBrake LH & RH

Perform VHMS initialization / setting


C: Correction Made

6. Operation (Continued)

x

9. KOMTRAX / VHMS / PLM

Operation & Maintenance Manual ReviewParts Book Review

Advantage

Transmission Neutral Lock & Shift ControlThrottle & Decelerator Controls

Safe Operation & Maintenance

Orbcomm / Model / Serial #

Explanation of System and policiesSigned User consent agreements

Verify connection of all antennaVerify system is reporting properly

Procedure for Starting & Stopping Engine

Service Tools & Publications

Auto Reverse Cooling Fan Operation per Customer's Job Site Conditions

Drive Train Oil Pressure @ High IdleMainT/CLube

Main Clutch & Inertia Brake

RecordRecord

KAC517500F rev 0907 (replaces KAC517500E) White: Distributor copy Yellow: Machine File Copy Pink: Komatsu Copy Printed in the U.S.A.

Inspect Entire Machine for Broken Welds, Cracks, and Distortions

Wear of Undercarriage, Blade or Bucket Cutting Edge and/or Teeth & Ripper

Track Tensions

Undercarriage Torques - Shoes, Links, Sprockets, etc.

Instrument Panel Gauges, Warning Lights, Indicators and Switches

PM Pro

Battery ElectrolyteRadiator Coolant LevelAnti-freeze Protection


Track RollersMain Clutch or Damper CaseHydraulic Tank

Steering Case or DriveFinal Drive Cases

Air Cleaner Elements and Connections

2000 Hour Maintenance ServiceWarranty & Service Rules

10, 50 & 100 Hour Maintenance Service250 Hour Maintenance Service500 Hour Maintenance Service1000 Hour Maintenance Service

Fuel Tank & Filter SedimentDrive Belt Tension(s) - Fan, Alternator, etc

KOMTRAX / VHMS Serial #KOMTRAX / VHMS Part #

MH800 Monitor Serial #

R & M

R


x xx x

x x x x xx x x x x

x x xx x xx x x x xx x x x xx x x x xx x x x xx x xx x xx x x x xx x x x x xx x x x x

x x x x xx x x x xx x x x x

x x x xx x x x

x x x xx x x xx x xx x xx x xx x xx x x

xx

x x xx xx x x xx x x xx x x x x

Customer Comments:


Inspector Comments:

White Copy: Distributor, Yellow Copy: Customer, Pink Copy: Komatsu

KA

C 5

1760

0D

500 Hour Maintenance Service

Blade Positions Scarfier or Ripper (if equipped)

Differential Locks (if applicable)

Engine Low Idle RPM Record________

Converter Stall RPM Record________


x

Steering, Wheel Brakes & Parking Brake

ServiceItem

Accelerator and/or Decelerator Control

Delivery

Unusual Machine Noise Warning Horn, Lights & Window Wipers Backup Alarm

B: Bad Condition

RP


Engine ModelMachine Model Complete Serial No. (Including Kind Code)


C: Correction Made


DiscussInspect

CommentComment

Pre-Delivery


Safety Manual Review Parts Book Review

x

Street AddressCustomer Name

Repair and Maintenance ContractPM PRO

This machine has been serviced and is in satisfactory condition. Adequate information has been given on its operation, careKOWA



(Damage, loose bolts, rust, leakage, wiring)2. Lubrication or Service Chart Installed3. Attachment(s) Installed4. Fluid Compartment Check

City

Pre-Delivery

Comment

Serial No.


Model

Zip Code

Location

State/Province

Service Report: Motor GradersSerial No. Pre-

Delivery

Delivery

Rent Sale Demo RentDemoSale

MakeAttachment(s)

UsedNew

MakeSerial No.Model

G: Good ConditionX: Item to be Serviced

Fuel Tank & Filter Sediment Drive Belt Tension(s)- Fan, Alternator, etc.

Battery Electrolyte Fuel Tank

Differential Housing(s) Plugs Final Drive Case(s) Plugs

ItemService

7. Guidance

Inspect Entire Machine for Broken Welds, Cracks,

Air Cleaner Element(s) & Connections Radiator Core & Cooling System Connections

x

CommentInspect

1. Visual Check



Wheel Mounting Nut or Bolt Torques Wheel Rim Centering (if applicable)

x

Drive Shaft Slip Yokes for Free Movement Wheel Brakes & Parking Brake


10, 50 & 100 Hour Maintenance Service

Clutch Oil Pressure @ High Idle Fwd.______ Rev._____

Radiator Coolant Level / Coolant Filter

Service

Tire Damage

Transmission Case(s) Dip Stick

Anti-freeze Protection

Circle Adjustment Hydraulic Tank Engine High Idle RPM Record________

Delivery

x

and Distortions


Check All Controls

Engine Oil Pan(s) Dip Stick

Spare Parts Ordering Procedure8. Other Operation & Maintenance Manual Review

Engine Oil Filter(s), Fuel Filter(s) & Breather Hydraulic Oil Filter Element(s) & Tank Breather

Steering Linkage

Warranty & Service Rules

Check Blade Cutting Edges and Inbits for Damage

DiscussInspect InspectService

Tire Air Pressure


6. Operation Capscrew Torque Values Record_________

x x

Circle Gear Case Plugs

x x Transmission Neutral Lock & Shifting Control Circle One: Mode 1 or Mode 2

Tandem Cases Plugs

Check AWD System Operation

Adjustment of all Ball Studs


AWD Gear Case Plug

5. Service

machine operation have been received and understood.and maintenance. The Operation & Maintenance Manual has been received. All literature and explanations that pertain to safe


R

NOTE: Below are the items related to operation, maintenance and lubrication of this machine to be performed at Pre-Delivery and DeliverThe Operation & Maintenance Manual details all items to maximize machine availability. Some items may not apply to certain models

Comment CommentDiscuss DiscussInspect InspectService Service

(Damage, loose bolts, rust, leakage, wiring) x x xx x x x xx x x x x

x x xx x x x xx x x x x xx x x x x xx x x xx x x x x xx x x x x xx x x x xx x x x xx x xx x x x x xx x x x x xx x x x xx x x x

x xx x xx x x xx x x xx x x xx xx x x x

x xx x

x xx KOMTRAX / VHMS Part #x KOMTRAX / VHMS Serial #

x x x Orbcomm / Model / Serial #x x x MH800 Monitor Serial #x x Verify connection of all antenna

x Verify system is reporting properly xx Perform VHMS initialization / setting

x Explanation of System and policies xx x x x

Customer Comments:


Advantage Extended Coverage Specify PM PRO SpecifyRepair and Maintenance Contract Specify KOWA Specify

Inspector Comments:

Clamshell Bucket (if equipped)

Track Rollers & Idlers

Track Tensions

Hydraulic Tank

5. Service Lubricate per Lubrication or Service Chart Fuel Tank & Filter Sediment Drive Belt Tension(s)- Fan, Alternator, etc.

Radiator Core & Cooling System Connections

Swing Pinion Swing Circle

and Distortions

Air Cleaner Element(s) & Connections

Safety Manual Review Inspect Entire Machine for Broken Welds, Cracks,


Hydraulic Oil Filter Element(s) & Tank Breather Operation & Maintenance Manual Review Parts Book Review

Engine Oil Filter(s), Fuel Filter(s) & Breather


7. Guidance Safe Operation & Maintenance


500 Hour Maintenance Service 1000 Hour Maintenance Service 2000 Hour Maintenance Service



8. Other

x

Item

Serial No.Model

G: Good Condition

10, 50 & 100 Hour Maintenance Service


X: Item to be Serviced B: Bad Condition

Transmission Case - Wheel Model Only

Battery Electrolyte

Swing Machinery

2. Lubrication or Service Chart Installed3. Attachment(s) Installed4. Fluid Compartment Check

Delivery


Used

C: Correction Made


Make Serial No.Model

Date of Inspection SMR

Zip CodeCity State/Province

Attachment(s)

Inspector Name

Pre-Delivery

Engine Model NewSerial No.Service Report: Hydraulic Excavators

Complete Serial No. (Including Kind Code)Machine Model

Item

Komatsu America Corp. Date of Delivery

Distributor Name


Make

Engine Low Idle RPM Record__________

Attachment(s) Brake Pedal & Brake - Wheel Model Only

Anti-freeze Protection Engine Oil Pan(s)

Parking Brake - Wheel Model Only Outriggers - Wheel Model Only Differential Housing - Wheel Model Only

Final Drive Case

KA

C 5

1770

0E

Comment Pre-Delivery

InspectService

Location

Swing Lock & Brake Control Lever Stroke, Play & Operating Force Boom, Arm & Bucket

1. Visual Check

Fuel Tank

6. Operation (continued) Warning Horn, Lights & Window Wipers Motion Alarm Throttle Control

xx


6. Operation Undercarriage Torques - Shoes, Links, Sprockets, etc.

and/or Teeth Wear of Undercarriage, Bucket Cutting Edges

Tire Air Pressure - Wheel Model Only Tire Wear - Wheel Model Only

x

Delivery

Engine High Idle RPM Record__________


Inspector Signature: _____________________________________Customer Signature: ___________________________________

x x

x x

Comment

Service

Pre-Delivery

DeliveryInspect

x x

Signed User consent agreements


This machine has been serviced and is in satisfactory condition. Adequate information has been given on its operation, care and maintenance. The Operation & Maintenance Manual has been received. All literature and explanations that pertain to safe machine operation have been received and understood.

Unusual Machine Noise

R

x x

(Damage, loose bolts, rust, leakage, wiring)x x xx x x Record

x Recordx x x Recordx x x Steering Relief Pressure Recordx x x Recordx x x Drive Train Oil Pressure @ High Idlex x Main Recordx x T/C Recordx x Lube Recordx x 7. Guidancex x xx x xx x x

xx Lubricate per Lubrication or Service Chart x xx x xx x xx x xx x x

x x xx x

x xx x

x x x xx xx x x Part #x x x Serial # x x x Serial # x x x Serial # x x x xx x x xx x x x

x xx x

x x details xx x R & M details xx x PM Pro details xx x KOWA details xx x Other details x

Customer Comments:T

Inspector Comments:

x

Accelerator Control

Signed user consent agreementsExplanation of system and policiesPerform VHMS initialization / setting

Advantage10. Machine Maintenance Programsx Y or N

Orbcomm MH800 Monitor

Verify System is reporting properlyVerify Connection of all antennas

Engine High Idle RPM

Operation & Maintenance Manual ReviewParts Book Reviewx

Back-up Alarms

x

x

6. Operation


Converter Stall RPM

1000 Hour Maintenance Service500 Hour Maintenance Service250 Hour Maintenance Service10, 50 & 100 Hour Maintenance Service

Battery Electrolyte

Service Tools & PublicationsWarranty & Service Rules2000 Hour Maintenance Service

Brake Oil Reservoir(s)

Fuel Tank & Filter Sediment

5. Service

Air Cleaner Element(s) & ConnectionsRadiator Core & Cooling System Connections

Drive Belt Tension(s)- Fan, Alternator, etc.

Transmission Case Includes Torque ConverterEngine Oil Pan(s)Anti-freeze ProtectionRadiator Coolant Level

Fuel Tank

Item

x1. Visual Check



x

Service Service Service

Delivery

CommentComment Pre-

Delivery

Discuss CommentInspect Inspect Inspect Delivery

Comment

Pre-Delivery

DiscussInspectService


G: Good Condition B: Bad Condition C: Correction MadeX: Item to be Serviced

NOTE: Below are the items related to operation, maintenance and lubrication of this machine to be performed at Pre-Delivery and Delivery. The Operation & Maintenance Manual details all items to maximize machine availability. Some items may not apply to certain models

Model Serial No.Attachment(s)

Make Model Serial No. Make

Customer Name Street Address City State/Province Zip Code

Date of Inspection SMR Distributor Name Location

RP

KA

C 5

1780

0FRent Sale Demo Rent


NewComplete Serial No.

Date of Delivery Inspector Name

Service Report: Wheel Loaders and Wheel DozersUsedPre-

Delivery

Delivery

Machine Model Engine Model Serial No.(Including Kind Code) Sale Demo


Inspect Entire Machine for Broken Welds, Cracks and DistortionsMain Frame Hinge Pin NutsSteering LinkageDrive Shaft Slip Yokes for Free MovementWheel Brakes & Parking Brake

Differential HousingsDrive Axle PlanetariesTransfer DriveHydraulic Tank

Wear of Bucket or Blade Cutting EdgesCab Air Filter

8. Other

9. KOMTRAX / VHMS / PLMSafety Manual Review

Hydraulic Oil Filter Element(s) & Tank Breather

Wheel Mounting Nut or Bolt TorqueTire Air Pressure


Tire Wear

Engine Oil Filter(s), Fuel Filter(s) & Breather

KOMTRAX/VHMS KOMTRAX/VHMS

Equip. Hyd. Relief Pressure

Steering Wheel, Brakes & Parking BrakesBucket Raise Time w/No Load & Max. Engine Speed Record sec.Air Line LeakageEngine Low Idle RPM


KAC517800F rev 0907 (replaces KAC517800E) White: Distributor copy Yellow: Machine File Copy Pink: Komatsu Copy Printed in the U.S.A.

This machine has been serviced and is in satisfactory condition. Adequate information has been given on its operation, care and maintenance. The Operation & Maintenance Manual has been received. All literature and explanations that pertain to safe machine operation have been received and understood.

Transmission Neutral Lock & Shift Control



R


x x xx x x x x x

3. Fluid Compartment Check x x xx Fuel Tank x x x x xx Battery Electrolyte x x x x x

x Radiator Coolant Level/Anti-freeze Protection x x x x xx Engine Oil Pan(s) x x x xx Transmission Case x x x xx Differential Cases x x x xx Final Drive Cases x x x x xx Hydraulic Tank x xx Brake Oil Tank x x xx Window Washer Reservoir x x x x

4. Service xx Lubricate per Lubrication or Service Chart x x xx Fuel Tank & Filter Sediment x x xx Drive Belt Tension(s)- Fan, Alternator, etc. x x xx Air Cleaner Element(s) & Connections x x x

x Radiator Core & Cooling System Connections x x xx Engine Oil Filter(s), Fuel Filter(s) & Breather x x xx Hydraulic Oil Filter Element(s) & Tank Breather x x xx Inspect Entire Machine for Broken Welds, Cracks, x x

and Distortions x xx Drive Shaft Slip Yokes for Free Movement x x x xx Wheel Brakes & Parking Brake x x x xx Wheel Mounting Nut or Bolt Torques x x x xx Tire Air Pressure x x 8. KOMTRAX / VHMS / PLMx Tire Wear x x x KOMTRAX / VHMS Part #x Dump Body Guides x x x KOMTRAX / VHMS Serial #x Cab Air Filters x x x Orbcomm / Model / Serial #

5. Operation x MH800 Monitor Serial #x x x x Verify connection of all antenna x

Indicators and Switches x Verify system is reporting properly xx Unusual Machine Noise x x x Perform VHMS initialization / setting

Warning Horn, Lights & Window Wipers x Explanation of System and policies xSigned User consent agreements x x

Customer Comments:

Machine Maintenance ProgramsOffer and explain the programs listed below. List details in "Specify" if the machine is already enrolled in a particular program.Advantage Extended Coverage Specify PM PRO SpecifyRepair and Maintenance Contract Specify Specify

This machine has been serviced and is in satisfactory condition. Adequate information has been given on its operation, careand maintenance. The Operation & Maintenance Manual has been received. All literature and explanations that pertain to safemachine operation have been received and understood.

Inspector Comments:


2. Lubrication or Service Chart Installed Accelerator and/or Decelerator Control Transmission Shift Control

Hydrair Suspension Cylinder Checks

Parts Book Review

Procedure for Starting & Stopping Engine 10, 50 & 100 Hour Maintenance Service


Instrument Panel Gauges, Warning Lights,







Delivery DiscussInspect

CommentInspect

ServiceItem

Inspect InspectDelivery

Service


Engine Stall or Retard RPM Record__________ Retarding Control

5. Operation (continued)

Engine High Idle RPM Record__________

Body Pads & Hoist Control Differential Lock (if equipped)

Back-up Alarm

Engine Low Idle RPM Record__________

Sale

Service


Demo Rent

City


NewMachine Model Complete Serial No. (Including Kind Code) Rent

Pre-Delivery

Street Address

Engine Model


Service Report: Articulated Dump Trucks

ItemService

Location

Comment

C: Correction MadeB: Bad Condition

Zip Code

Pre-Delivery

Used

G: Good Condition

State/Province

Serial No.

Demo

Delivery

Distributor Name

x

Comment

X: Item to be Serviced

Customer Name

Pre-Delivery

Discuss

KA

C51

8200

C

Spare Parts Ordering Procedure7. Other Operation & Maintenance Manual Review


Comment

Sale RP

x

KOWA

(Damage, loose bolts, rust, leakage, wiring)1. Visual Check x

x

Inspector Signature:Customer Signature:

x x

R

x x xx x

x xx x

x xx xx x Max RPMx x xx x xx Final Transmission Case: LS x xx RS x xx x x

x xx x x

x xxx

x x xx x x xx x xx xx x x xx x x x

x x

x x xx

x x x xx

xx x x x xx x xx x x x xx x x x x

Customer Comments:


Inspector Comments:

Copyright 2008 Komatsu America Corp. This form cannot be modified without the written authorization of KAC.

6. Operation (continued)


PM PROKOWA

Travel Control (Forward - Reverse) Attachment

Steering Control (Left - Right)

Service Report: Skid Steer LoaderPre-

Delivery

Delivery

Machine ModelEngine Model


Rent

Complete Serial No. (Including Kind Code)

Serial No.

KA

C 5

1900

0GSale Demo Rent Sale

New Used

Demo


RP

Zip Code

Attachment(s)Make Model Serial No. Make

Customer Name Street Address City State/Province

Serial No.Model

Machine Health InspectionNOTE: Below are the items related to operation, maintenance and lubrication of this machine to be performed at Pre-Delivery and Delivery

The Operation & Maintenance Manual details all items to maximize machine availability. Some items may not apply to certain models.

x: Item to be Serviced G: Good Condition B: Bad Condition C: Correction Made

DeliveryComment

DeliveryComment

Pre-Delivery



Discuss CommentInspect Inspect InspectService Service Service

Item Item

x1. Visual Check

x

4. Fluid Compartment Check

x2. Lubrication or Service Chart Installed3. Attachment(s) Installed

Unusual Noise Engine Max RPM Record_________


x

Record_________ Engine Min RPMx

Transmission Stall RPM (Gear 2) Record_________ Bucket Speed Lifting (Without Load)

Radiator Coolant Level Battery Electrolyte Fuel Tank

Record______secx


Hydraulic Tank

Procedure for Starting & Stopping Engine Engine Oil Pan

Daily Maintenance and 50 Hour Inspection

x Tire Air Pressure:

Belt Tension (Fan & Generator)


1000 Hour Maintenance Service 500 Hour Maintenance Service5. Service

Air Cleaner Element(s) & Connections

Warranty & Service Rules Chain Tension

Service Tools & Publicationsx

Additional Maintenance Service

Clean Fuel Filter and Tank

Spare Parts Ordering Procedure FR(_______) RR(_______) FL (_______) RL (_______)

Radiator, Cooler & Connections

Safety Maintenance & Adjustment

Wear (Tires, Edges & Bucket)

Test Instruments & Controls Engine Oil Filter Element & Breather


6. Operation

Lubricate Per Lubrication Chart

8. Other

Inspect Entire Machine for Broken Welds, Cracks &x

Operation & Maintenance Manual Review

Distortions

Parts Book Review

Torque Wheel Mounting Nuts


KOMTRAX / VHMS Part #

Dashboard Gauges and Switches

Safety Devices Parking Brake

Complete machine Check: Manifold and Hydraulic Leaks

x

This machine has been serviced and is in satisfactory condition. Adequate information has been given on its operation, care


x

*Estimated Total Time: 2hrs 30mins

Customer Signature:


Repair and Maintenance Contract

Offer and explain the programs listed below. List details in "Specify" if the machine is already enrolled in a particular program.Machine Maintenance Programs

and maintenance. The Operation & Maintenance Manual has been received. All literature and explanations that pertain to safemachine operation have been received and understood.

Explanation of System and policies

KOMTRAX / VHMS Serial #Orbcomm / Model / Serial #MH800 Monitor Serial #



R

NOTE: Below are the items related to operation, maintenance and lubrication of this machine to be performed at Pre-Delivery and DeliveryThe Operation & Maintenance Manual details all items to maximize machine availability. Some items may not apply to certain models

x xx x x xx x

Record: sec

x x x Engine Low Idle RPM Record: xx x x Engine High Idle RPM Record: xx x x HST Stall RPM Record: xx x x Steering Relief Pressure Record: xx x x Equip. Hyd. Relief Pressure Rec: xx xx x HST Pressure Record:

x Hydraulic Tank x HST Charge pressure Record:

5. Servicex Lubricate per Lubrication or Service Chart xx Fuel Tank & Filter Sediment xx Drive Belt Tension(s)- Alternator, etc. x xx Air Cleaner Element(s) & Connections x xx Radiator Core & Cooling System Connections x xx Engine Oil Filter(s), Fuel Filter(s) & Breather x xx Hydraulic Oil Filter Element(s) & Tank Breather x x

Inspect Entire Machine for Broken Welds, Cracks, x and Distortions x

x Main Frame Hinge Pin Nuts x xx Steering Linkage x xx Drive Shaft Slip Yokes for Free Movement x xx Parking Brake xx Wheel Mounting Nut or Bolt Torque x xx Tire Air Pressure x xx Tire Wear x xx Wear of Bucket or Blade Cutting Edges xx x x KOMTRAX / VHMS Part #x x x KOMTRAX / VHMS Serial #

x Orbcomm / Model / Serial #x MH800 Monitor Serial #

x Verify connection of all antennax x x Verify system is reporting properly xx x x Perform VHMS initialization / settingx x x Explanation of System and policies xx x x x

Customer Comments:

Advantage Extended Coverage Specify PM PRO SpecifyRepair and Maintenance Contract Specify KOWA Specify

Inspector Comments:



x

machine operation have been received and understood.

Copyright 2009 Komatsu America Crop. This form cannot be modified without the written authorization of KAC.

Machine Maintenance ProgramsOffer and explain the programs listed below. List details in "Specify" if the machine is already enrolled in a particular program

Accelerator Control


RP

KA

C52

0000

B

This machine has been serviced and is in satisfactory condition. Adequate information has been given on its operation, careand maintenance. The Operation & Maintenance Manual has been received. All literature and explanations that pertain to safe

x

Sale Demo Rent Sale Demo


Service Report: Hydrostatic Wheel LoadersPre-

Delivery

Delivery


Used

Rent


Engine Model Serial No. New


Zip CodeCustomer Name Street Address City State/Province

Attachment(s)Make Model Serial No. Make Serial No.Model


X: Item to be Serviced G: Good Condition B: Bad Condition C: Correction Made



Discuss CommentInspect Inspect Inspect

x1. Visual Check

Service Service ServiceItem Item

DeliveryComment

DeliveryComment

Pre-Delivery

6. Operation (continued) (Damage, loose bolts, rust, leakage, wiring)2. Lubrication or Service Chart Installed


Radiator Coolant Level

x



Fuel Tank Battery Electrolyte

x

Drive Axle Housings Transfer Case

Bucket Raise Time w/ No Load & Max. Engine Spee x

Engine Oil Pan(s) Anti-freeze Protection


Customer Signature:

Back-up Alarm


Cab Air Filter

8. Other

6. Operation


Assure Corrosion Filter Valves are Open

Unusual Machine Noise

x Instrument Panel Gauges, Warning Lights, Indicators and Switches

Warning Horn, Lights & Window Wipers


x

Operation & Maintenance Manual Review


10, 50 & 100 Hour Maintenance Service 250 Hour Maintenance Service

2000 Hour Maintenance Service Warranty & Service Rules

x

500 Hour Maintenance Service 1000 Hour Maintenance Service

7. Guidance

Parts Book Review

x

R


x xx xx x

x xx xx xxx xx x xx x xx x xx x xx x xx x x

xx x xx x x xx x xx x

x x x xx x x xx x x x

xx x x

xx

x x x xx x

x xx x

x x x xx xx x details xx x details xx x details xx x details xx x details xxxx x

Customer Comments:

Record

received and understood.


RecordRecord

x

KOWAOther

x

KA

C53

2600

Discuss

The Operation & Maintenance Manual has been received. All literature and explanations that pertain to safe machine operation have been

6. Operation

This machine has been serviced and is in satisfactory condition. Adequate information has been given on its operation, care and maintenance

Inspector Comments:

5. Service

8. Other


x

x

Inspect DeliveryPre-Delivery

Pre-Delivery

CommentInspectServiceService

CommentComment

Pre-Delivery

City State/Province

Service Report: Hydrostatic Crawler Dozers

Location

Zip Code






Delivery


UsedNew

MakeAttachment(s)

Serial No. Serial No.ModelModel Make

Radiator Core & Cooling System ConnectionsEngine Oil Filter(s), Fuel Filter(s) & BreatherHydraulic Oil Filter Element(s) & Tank Breather

Equip. Hyd. Relief PressureHST Pressure

Blade or Bucket & Ripper (if equipped)

Engine High Idle RPM

Steering & Brakes

Backup Alarm

B: Bad ConditionG: Good ConditionX: Item to be Serviced

Item

Inspect Inspect

Item


Fuel Tank

Engine Low Idle RPM

x

x

x

Y or N

Record

Service

Delivery

CommentDiscuss

Service


Engine Oil Pan (s)Transmission and/or Transfer CaseSteering Case or Drive


Record

7. Guidance

x

1. Visual Check



C: Correction Made

6. Operation (Continued)

x

Throttle & Decelerator Controls


Operation & Maintenance Manual ReviewParts Book Review

10. Machine Maintenance Programs Other



KOMTRAX / VHMS Part #

Explanation of System and policiesSigned User consent agreements





Auto Reverse Cooling Fan Operation per Customer's Job Site Conditions

HST charge pressure


Inspect Entire Machine for Broken Welds, Cracks, and Distortions

Wear of Undercarriage, Blade or Bucket Cutting Edge and/or Teeth & Ripper

Track Tensions

Undercarriage Torques - Shoes, Links, Sprockets, etc.


PM Pro

Battery ElectrolyteRadiator Coolant LevelAnti-freeze Protection


Track RollersMain Clutch or Damper CaseHydraulic Tank

Final Drive Cases

Air Cleaner Elements and Connections

2000 Hour Maintenance ServiceWarranty & Service Rules

10, 50 & 100 Hour Maintenance Service250 Hour Maintenance Service500 Hour Maintenance Service1000 Hour Maintenance Service

Fuel Tank & Filter SedimentDrive Belt Tension(s) - Fan, Alternator, etc

KOMTRAX / VHMS Serial #Orbcomm / Model / Serial #MH800 Monitor Serial #

R & MAdvantage


90‐DAY REVISIT FORM SPP 10‐1‐5 Page 1 of 2



90‐DAY REVISIT FORM


90‐DAY REVISIT FORM SPP 10‐1‐5 Page 2 of 2



A) PURPOSE

Distributor must complete a 90‐day revisit inspection using this form between 90 and 120 days after delivering the machine to the Customer. The revisit service must be provided free of charge to the Customer.

B) FILING PROCEDURE Complete the Walk‐Around, Safety, and Operational Performance sections on the form. Check the boxes in the “S” columns next to the items that are in satisfactory condition and check the boxes in the “U” columns next to the items that are unsatisfactory. If an inspection item does not apply to that machine, check the box in the “NA” column for non‐applicable.

Komatsu sometimes includes carbonized forms with each Machine. An electronic version is also available in this section of the Service Policy and Procedure Manual. After completion, one copy should be given to the Customer and a second copy should be filed in the Distributor’s Machine File.





S U S U S U

MM: BrakesAvg

Seatbelts and Mounting

Air Conditioner Compressor Drive Belt Tension

Operator's Observations/Comments:1. Unusual Noises2. Operational Performance3. In Cab Comfort/Environment4. Additional Comments

4. Incorrectly Installed Hardware

PM PRO SpecifyKOWA Specify

Inspector's Comments:

Inspector's Recommendations:

properly

Axle AssembliesFinal DrivesHydraulic Pumps and Motors

Piping and HosesHydraulic Cylinders

Operator Seat Adjustments

Undercarriage Track Tension

Drive Train

In Cab Air Conditioning

KOMTRAX / VHMS / PLM:

Backup Alarm(s) Pitch Extension

Warning HornLights

Alternator Fan Belt Tension Transmission/Swing Machinery

Radiator and Hoses

Mirrors

(fwd, rev, and all ranges)

Transmission Shift Lock Hour MeterGaugesHydraulic Control Lever Lock

Gear Shifting Power Shift Models

Operators Manual on MachineSafety Warning Decals in Place

Fan GuardHydraulic GuardsGuards and Shields


(direction and gearshift control)

Offer and explain the below listed programs. List details in "Specify", if the machine is already enrolled in a particular program.

(Specify)

General Inspection:

Wheel Mounting Nut/Bolts/ Torque

with Special Attention to:Walk-Around Visual Inspection

Windshield Wipers

Steering

Engine Speed Controls

Gear Shifting HST Models

Work Equipment

Zip Code


Distributor Name

Attachment(s)

Customer Name Street Address City State/Province

Engine Low Idle RPM*

KA

C 5

1830

0B

Transmission Inching/Declutching

Serial No.

Inspection:

Item

System Cutting Edge

Glass

2. Functional Checks:Safety Switches


Tire Teeth/Shanks

if the item does not apply. For items marked "U", include details in the inspector's comments section.

1. Damage, breakage and wear on: Superstructure/Frames/Body

NA

Error Codes*

90 Day Revisit Service Report Engine Model Serial No.

If items are in good condition, check "S" for Satisfactory. Otherwise check "U" for Unsatisfactory. Check "NA" for Non-Applicable

ModelMakeMake Model Serial No.

NA


Engine High Idle RPM*

Safety Inspection:

1. Visual Inspection

Operational Performance


Item NA Item

Location

Ground Engagement Tools

Customer Signature:

2. External Leakage From:

Engine and Sub-Components

Specify

Undercarriage Components

Blade Mold Board Welds

Measurements: Bushing Diameter

Date:Inspector Signature:

Advantage Extended Coverage SpecifyRepair and Maintenance Contract


Date:

Brake System

Clamps

3. Hardware Looseness In:Bolts

* Measurement is required only if it is available through the monitor panel

and policies

Verify system is reporting

Verify understanding of system

PRODUCT WARRANTY CERTIFICATE FORM SPP 10‐1‐6 Page 1 of 1



PRODUCT WARRANTY CERTIFICATE FORM

Contents A) PURPOSE .............................................................................................................................. 1 B) FILING PROCEDURE ........................................................................................................ 1 C) DEFINITIONS....................................................................................................................... 1 D) REVISIONS ........................................................................................................................... 1 A) PURPOSE

This form is a copy of the carbonized form that is included from Komatsu with each machine. Distributor should use this form (or the original included in the machine) to explain the scope and terms Komatsu’s Product Warranty and Emissions Control Warranty terms to the Customer and secure the signature of a Customer agent.

B) FILING PROCEDURE

Once the Customer’s signature has been secured, Distributor must store a signed copy the form in the Machine File. A second copy should be given to the Customer.

C) DEFINITIONS


2. Customer: Machine owner. 3. Distributor: Authorized Komatsu Distributor. 4. Komatsu: Komatsu America Corp. 5. Machine File: Electronic or paper file in the Distributor’s office or business system that includes

all of the Distributor’s information on a specific Machine.

D) REVISIONS Revision Date Version Content Author 1 12/23/2010 1 Draft document K. Venkiteswaran


ACKNOWLEDGEMENT OF RECEIPT OF COMPANY WARRANTY AND

AGREEMENT TO CUSTOMER CONSENT- MACHINE MONITORING SYSTEMS DATE DISTRIBUTOR CUSTOMER NAME: ADDRESS ADDRESS SALES OR LEASE CONTRACT NUMBER DATE OF CONTRACT/DELIVERY COMPLETE MACHINE MODEL MACHINE SERIAL NO. (PRODUCT IDENTIFICATION NO.) ENGINE MODEL ENGINE SERIAL NO. STANDARD COVERAGE FOR THIS UNIT IS AS NOTED AND CHECKED BELOW:

1) □ 1 year, unlimited hours (max of 8700 SMR) 2) □ 3 years, 3000 hours max. 3) □ Others as defined-_________________________________________________mo/yrs/hrs

BASIC WARRANTY PERIOD ONLY – ONE (1) YEAR, UNLIMITED HOURS DOES NOT INCLUDE KOMATSU ADVANTAGE PROGRAM (EXTENDED COVERAGE) I, have read and understand all of the terms and conditions of the attached Company Warranty Certificate which forms a part of my contract or lease. I understand that the expiration of the warranty as established on the said Warranty Certificate is established on the Machine’s total use, and warranty conditions cannot be adjusted in any form for and in consideration of prior use. DISTRIBUTOR’S SIGNATURE CUSTOMER’S SIGNATURE TITLE TITLE COMPANY NAME______________________ COMPANY ADDRESS___________________ …………………………………………………………………………………………………………….

AGREEMENT TO CUSTOMER CONSENT - MACHINE MONITORING SYSTEMS (Reference sheet 7 of 7)

I, also acknowledge that I have read, understand and agree, and provide my consent, personally and on behalf of my Company, to the terms and conditions of the attached “Customer Consent -Machine Monitoring Systems.” I certify that I am authorized to sign this agreement. CUSTOMER NAME_________________________________ CUSTOMER’S SIGNATURE__________________________ NAME (Please Print)_________________________________ TITLE_____________________________________________ COMPANY NAME__________________________________ COMPANY ADDRESS_______________________________ WHITE (1 of 7) COMPANY SERVICE COPY

YELLOW (2 of 7) DISTRIBUTOR COPY KAC516100-11 4/07 TAN (3 of 7) CUSTOMER COPY 1 of 7






AGREEMENT TO CUSTOMER CONSENT - MACHINE MONITORING SYSTEMS (Reference sheet 7 of 7))



KOMATSU PRODUCT WARRANTY

This product warranty certificate and the product warranty stated herein are applicable to all Komatsu products marketed under the brand name of Komatsu by Komatsu America Corp., herein after referred to as "Company”.

1. GENERAL PROVISIONS We warrant that all new whole machines and attachments ("Machines"), and new parts and assemblies for the Machines, including engines ("Parts") sold by the Company will be free from defects in materials and workmanship for the respective periods specified in paragraph 2 below, subject to the other terms and conditions herein.

2. BASIC WARRANTY A. The Basic Warranty Period for the Machine shall terminate upon the expiration of one (1) year after delivery of the Machine to the initial user

regardless of the hours. B. The Basic Warranty Period for Parts shall be as follows:

i) For all replacement Parts furnished pursuant to this warranty, upon expiration of the remainder of the warranty period applicable to the Machine in which such Parts are installed.

ii) Other replacement Parts (Parts not furnished during the machine warranty period) may be covered under a separate warranty policy. Please consult your local Komatsu distributor.

3. COMPANY RESPONSIBILITIES If a defect in material or workmanship is found during the Basic Warranty Period, the Company will, during normal working hours, at its option, repair or replace any part or component of the Machine or Part which fails to conform to the warranty during the Basic Warranty Period, provided our authorized Distributor is notified of such failure within the Basic Warranty Period.

4. CUSTOMER RESPONSIBILITIES We recommend that you return the product to the Distributor from which it was purchased; however, you may also take it to the most convenient Company authorized Distributor contracted to service products of the type you have purchased. We do not assume the responsibility or cost of transporting the product to and/or from the servicing Distributor. You must also make the product available for repair during the Basic Warranty Period.

5. OTHER ENGINE MANUFACTURERS' WARRANTY The above stated warranty does not apply to engines bearing other manufacturers' trademarks, whether or not such engines are installed in Machines or sold separately. The warranty responsibility on those engines rest with the respective engine manufacturers. Your Komatsu Distributor may be certified to perform warranty service on other manufacturers’ engines.

6. LIMITATIONS The Company shall not have any obligation under this warranty for: a. Any defects caused by misuse, misapplication, negligence, accident, improper storage, improper transportation, improper assembly or failure to maintain

or use in accordance with the most current operating instructions including, but not limited to, loading the Machine in excess of the Gross Vehicle Weight as set out in the Company’s Operation & Maintenance Manual;

b. Unauthorized alterations; c. Defects or failures caused by any attachment or parts not manufactured or approved by the Company; d. Failure to conduct normal maintenance and operating services, including without limitation, providing lubricants, coolants, fuel, tune-ups, inspection or

adjustments; e. Unreasonable delay (as established by Company) in making the applicable Machines or Parts available upon notification of a Factory Campaign ordered

by the Company.

7. ITEMS NOT COVERED The Company is not responsible for the following: a. Premiums charged for overtime labor requested by the purchaser; b. Charges related to transporting the product to and from the place at which warranty work is performed; c. Freight charges related to transporting repair parts to the place at which warranty work is performed; d. All used goods of any kind; e. Tires, tubes, wiper blades, belts, filters, cables, bulbs, condensers, spark plugs, glow plugs, fuses or carbon brushes, other consumable items, and normal

wear of Machine or Parts; f. Attachments not manufactured or approved by the Company. (Trademarked attachments are warranted by their respective manufacturers.)

8. USE OF NON-OEM PARTS IN CRITICAL SYSTEMS For safety reasons, the Company strongly recommends against the use of non-OEM replacement parts in critical systems of all Komatsu equipment. Critical systems include but are not limited to steering, braking and operator safety systems. Replacement parts manufactured and supplied by unauthorized sources may not be designed, manufactured or assembled to Komatsu’s design specifications; accordingly, use of such parts may compromise the safe operation of Komatsu products and place the operator and others in danger should the part fail. Komatsu is also aware of repair companies that will rework or modify an OEM part for reuse in critical systems. Komatsu does not generally authorize such repairs or modifications for the same reasons as noted above. Use of non-OEM parts places full responsibility for the safe performance of the Komatsu product on the supplier and user. Komatsu will not in any case accept responsibility for the failure or performance of non-OEM parts in its products, including any damages or personal injury resulting from such use.

The foregoing warranty is exclusive and in lieu of all other express, statutory and implied warranties applicable to Machines, Engines, or Parts including without limitation, ALL IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR USE OR PURPOSE.

IN NO EVENT, WHETHER AS A RESULT OF BREACH OF CONTRACT OR WARRANTY, NEGLIGENCE, LIABILITY WITHOUT FAULT OR OTHER LEGAL THEORIES, SHALL THE COMPANY, OR ITS AFFILIATES, PARTNERS OR SUBSIDIARIES BE LIABLE FOR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, INCLUDING, WITHOUT LIMITATION, LOSS OF PROFIT OR REVENUES, LOSS OF USE OF THE MACHINE OR PARTS OR ANY ASSOCIATED EQUIPMENT, COST OF CAPITAL, COST OF SUBSTITUTE EQUIPMENT, FACILITIES OR SERVICES, DOWNTIME COSTS, LABOR COSTS, OR CLAIMS OF CUSTOMERS, PURCHASERS OR LESSEES FOR SUCH DAMAGES. THE REMEDIES HEREIN ARE THE EXCLUSIVE REMEDIES WITH RESPECT TO MACHINES AND PARTS, WHETHER UNDER THIS WARRANTY OR OTHERWISE. KAC516100-11 4/07 Komatsu America Corp. 4 of 7

EMISSION CONTROL WARRANTY A. FEDERAL EMISSION CONTROL WARRANTY STATEMENT (APPLICABLE IN UNITED STATES and CANADA)

1. Products Warranted

Komatsu America Corp. (“Komatsu”) produces and/or markets products under the brand name of Komatsu. This emissions warranty applies to new engines bearing the Komatsu name installed in these products and used in the United States and Canada in machines designed for industrial off-highway use.

2. Coverage

Komatsu warrants to the ultimate purchaser and each subsequent purchaser that the engine is designed, built and equipped so as to conform, at the time of sale by Komatsu, with all U.S. and Canadian Federal emission regulations applicable at the time of manufacture and that it is free from defects in workmanship or material which would cause it not to meet these regulations within five (5) years or 3,000 hours of operation, whichever occurs first, as measured from the date of delivery of the engine to the ultimate purchaser. If the machine in which the engine is installed is first placed in service in the state of California, a separate California Emission Warranty also applies.

3. Limitations

Failures, other than those resulting from defects in materials or workmanship, are not covered by this warranty. Komatsu is not responsible for failures or damage resulting from what Komatsu determines to be abuse or neglect, including, but not limited to: operation without adequate coolant or lubricants; over fueling; over speeding; lack of maintenance of lubricating, cooling or intake systems; improper storage, starting, warm-up, run-in or shutdown practices; unauthorized modifications of the engine. Komatsu is also not responsible for failures caused by incorrect fuel or by water, dirt or other contaminants in the fuel. Komatsu is not responsible for non-engine repairs, “downtime” expense, related damage, fines, all business costs or other losses resulting from a warrantable failure. KOMATSU IS NOT RESPONSIBLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES

B. CALIFORNIA EMISSION CONTROL WARRANTY STATEMENT

1. Products Warranted

This Emission Control System Warranty applies to heavy-duty off-road diesel engines certified with the California Air Resources Board, marketed by Komatsu America Corp. (Komatsu) in their Komatsu products and first placed in service in California for use in industrial off-highway applications.

2. Your Warranty Rights and Obligations

The California Air Resources Board and Komatsu are pleased to explain the emission control system warranty on your emissionized engine. In California, new heavy-duty off-road diesel engines must be designed, built and equipped to meet the State’s stringent anti-smog standards. Komatsu must warrant the emission control system on your engine for the periods of time listed below provided there has been no abuse, neglect or improper maintenance of your engine. Your emission control system may include parts such as the fuel injection system and air induction system. Also included may be hoses, belts, connectors and other emission-related assemblies. Where a warrantable condition exists, Komatsu will repair your heavy-duty off-road diesel engine at no cost to you including diagnosis, parts and labor.

3. Manufacturer’s Warranty Coverage

The heavy-duty off-road diesel engines are warranted for five (5) years or 3,000 hours of engine operation, whichever occurs first, from the date of delivery of the engine to the first user. If any emission-related part on your engine is defective, the part will be repaired or replaced by Komatsu.

4. Owner’s Warranty Responsibilities

As a heavy-duty off-road diesel engine owner, you are responsible for the performance of the required maintenance listed in the Operation and Maintenance Manual. Komatsu recommends that you retain all receipts covering maintenance on your heavy-duty off-road diesel engine, but Komatsu cannot deny warranty solely for the lack of receipts or for your failure to ensure the performance of all scheduled maintenance. You are responsible for presenting your heavy-duty off-road diesel engine to an authorized Komatsu Distributor as soon as a problem exists. The warranty repairs should be completed by the dealer as expeditiously as possible.

5 of 7

As the heavy-duty off-road diesel engine owner, you should also be aware that Komatsu may deny you warranty coverage if your heavy-duty off-road diesel engine or a part has failed due to abuse, neglect, improper maintenance or unapproved modifications. Your engine is designed to operate on diesel fuel only. Use of any other fuel may result in your engine no longer operating in compliance with California’s emissions requirements. If you have any questions regarding your warranty rights and responsibilities, you should contact:

Komatsu America Corp. Manager, Warranty Administration

One Continental Towers 1701 W.Golf Rd.

Rolling Meadows, IL 60008 (847) 437-5800

Prior to the expiration of the applicable warranty, owner must give notice of any warranted emission control failure to an authorized Komatsu Distributor and deliver the engine to such facility for repair. Owner is responsible for incidental costs such as: communication expenses, meals, lodging incurred by owner or employees of owner as a result of a warrantable failure. KOMATSU IS NOT RESPONSIBLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES WHICH INCLUDE, BUT ARE NOT LIMITED TO, BUSINESS LOSSES AND COSTS, “DOWNTIME” EXPENSES, FINES, PENALTIES, THEFT, VANDALISM OR COLLISION DAMAGE.

5. Coverage: This emission control system warranty applies to the following emission control parts, if equipped:

Fuel Pump Turbocharger Injectors Intake Manifold AFC Spring Compressor Wheel Calibration Charge Air Cooler

AFC Setting Turbine Wheel Needle Aftercooler Static Timing Turbine Oil Seal Nozzle Positive Crankcase Ventilation Delivery Valve Wastegate Valve Spring Fuel Lines Other Emission Parts

Control Module Exhaust Manifold Hoses Exhaust Gas Recirculation Valve Connectors

Replacement Parts

Komatsu recommends that any service parts used for maintenance, repair or replacement of emission control systems be new, genuine Komatsu or Komatsu approved rebuilt parts and assemblies, and that the engine be serviced by an authorized Distributor. The owner may elect to have maintenance, replacement or repair of the emission control parts performed by a facility other than an authorized Distributor and may elect to use parts other than new genuine Komatsu or Komatsu approved rebuilt parts and assemblies for such maintenance, replacement or repair; however, the cost of such service or parts will not be covered under this emission control system warranty.

6. Komatsu Responsibilities

Repairs and service will be performed by any authorized Distributor using new, genuine Komatsu or Komatsu approved rebuilt parts and assemblies. Komatsu will repair any of the emission control parts found by Komatsu to be defective without charge for parts or labor (including diagnosis which results in determination that there has been a failure of a warranted emission control part).

7. Warranty and Limitations

The manufacturer warrants to the ultimate purchaser, and each subsequent purchaser, that the engine is designed, built, and equipped so as to conform with all applicable regulations adopted by the Air Resources Board, and that it is free from defects in material and workmanship which cause the failure of a warranted part for the time periods stated herein. Any warranted part which is not scheduled for replacement as required maintenance, or which is scheduled only for regular inspection to the effect of “repair or replace as necessary” is warranted for the warranty period. Any warranted part which is scheduled for replacement as required maintenance is warranted for the period of time prior to the first scheduled replacement point for that part. The owner will not be charged for diagnostic labor which leads to the determination that a warranted part is defective, if the diagnostic work is performed at an authorized Distributor. The manufacturer is liable for damages to other engine components caused by the failure under warranty of any warranted part. Komatsu is not responsible for failures resulting from improper repair or the use of parts which are not genuine Komatsu or Komatsu approved parts. Komatsu is not responsible for failures resulting from owner or operator abuse or neglect, such as: operation without adequate coolant, fuel or lubricants; over fueling; over speeding; lack of maintenance of lubricating, cooling or air intake systems; improper storage, starting, warm-up, run-in or shutdown practices.

C. GENERAL EXCLUSIONS

1. The foregoing engine emission control warranties do not apply to engines in our products, which bear trademarks or names other than Komatsu (i.e. Cummins). The emission control warranty responsibility of such engines shall rest with the respective engine manufacturer. For information on such warranties, please refer to the operator’s manual for the engine in question or contact the applicable dealer organization. In the case of Cummins trademarked engines, you may also contact your Komatsu distributor who may be certified by Cummins, under its Certified Distributor Program.

2. These warranties, together with the express commercial warranties, are the sole warranties of Komatsu. THERE ARE NO OTHER

WARRANTIES, EXPRESS OR IMPLIED, OR OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. 6 of 7

CUSTOMER CONSENT - MACHINE MONITORING SYSTEMS

By signing the Agreement to Customer Consent - Machine Monitoring Systems (Agreement), Customer acknowledges and agrees to the following with respect to the machine(s) listed on the page on which it appears, as well as with respect to any other machines Customer owns, leases or otherwise uses that are equipped with Komatsu’s KOMTRAX System (KOMTRAX), Vehicle Health and Monitoring System (VHMS) and/or Payload Meter (PLM). KOMTRAX, VHMS and PLM are collectively referred to as the “Systems”. By signing the Agreement Customer also agrees to the Terms of Use of the Komtrax Service (Terms of Use), as set forth on the Komtrax website. The Terms of Use are available through http://www.komtrax.us, as may be updated from time to time by Komatsu to reflect any changes to KOMTRAX including the nature or quantity of data transmitted. By consenting to this Agreement, Customer is also consenting to any future updates to the Terms of Use. Customer acknowledges that each machine is equipped with KOMTRAX. KOMTRAX is an equipment data tracking and monitoring system to manage information on utility, construction and mining machines. Such data may include details on machine location, usage and diagnostic information. In addition, KOMTRAX may be used to transmit messages and signals to the machine, including a signal that will disable the machine’s ignition mechanisms. Customer further acknowledges that each machine may be equipped with VHMS and/or PLM. VHMS is an equipment data tracking and monitoring system to manage information relating to machine usage, diagnostic and performance information, including, without limitation, items such as engine oil pressure, coolant temperature, fuel rate, engine speed, exhaust temperature and other machine and component information. PLM is a system which measures payload information during each haul truck haul cycle, including, without limitation, gross payload, maximum frame torque, and loading, dumping and driving times. The information collected through the Systems is transmitted to Komatsu by means of automatic transmission, such as by satellite or other wireless means, and/or by means of manual download performed by Komatsu and/or its distributors and their respective personnel. Customer consents to the collection, transmission and sharing of the information described above, and authorizes Komatsu America Corp. (“Komatsu”), its affiliates, subsidiaries and distributors to gather, process and use, without limitation, the information developed or collected by or in connection with the Systems. Customer acknowledges and agrees that all information developed or collected by or in connection with Systems shall be Komatsu’s exclusive property, except for information provided by Customer, or on Customer’s behalf, with respect to Customer’s machines. Customer hereby grants to Komatsu a non-exclusive, worldwide, perpetual, irrevocable, royalty-free, sublicenseable right to exercise the copyright and other rights that Customer may have in any information collected by or in connection with the Systems for Komatsu, Komatsu affiliate, and Komatsu distributor business purposes, and for any other purposes, in any media now known or not currently known. This may include sharing of such information with select third parties and business partners. Customer is responsible for performing any actions that are required by local law or regulation with respect to the collection and use of this information in the above manner, including, but not limited to, any required notification of employees or other parties of the collection and use of the information.

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ADVANTAGE CUSTOMER CERTIFICATE FORM SPP 10‐1‐7 Page 1 of 1



ADVANTAGE CUSTOMER CERTIFICATE FORM


This form is an example of the form that the Distributor can print from the extranet (https://www.komatsuamerica.net) after purchasing Advantage Coverage for a specific Machine. The Distributor can fill in the particulars of the contract on this form as an alternative to printing the online version. Distributor should use the form to explain the scope and terms of the agreement to the Customer and secure the signature of a Customer agent.

This form also serves as an addendum to the Advantage and Advantage Standard Coverage Policy as it specifically outlines additional exclusions from the Coverage and includes information on Distributor Responsibilities and deductibles.

B) FILING PROCEDURE Once the Customer’s signature has been secured, Distributor must store a signed copy the form in the Machine File.

C) DEFINITIONS



all of the Distributor’s information on a specific Machine. 6. Covered Repair: repair that is eligible for reimbursement under one of Komatsu’s policies. A

repair that is eligible for reimbursement from Komatsu has Coverage.

D) REVISIONS Revision Date Version Content Author 1 12/23/2010 1 Draft document K. Venkiteswaran, C.

Wasik

12/16/2010

Advantage Extended Coverage Agreement This Advantage Extended Coverage Agreement (“Agreement”) is entered into as of the MM/DD/YYYY (“Effective Date”) between Distributor Name, having an office at Street, City, State, Zip (“Distributor”), and Customer Name having an office at Street, City, State/Province, Zip, Country (“Customer”). 1. Coverage:

a. Subject to the terms and conditions below, Distributor will provide parts, labor and other services required to correct failures to certain components (“Covered Items”) on Model, Serial Number (“Machine”) that occur as a result of a defect in material or workmanship. The repairs executed to correct these defects will return the Machine to its normal operating condition. Each claim occurrence is subject to a $_____ Deductible.

b. The Machine will be eligible for this coverage starting at ______ SMR hours (MM/DD/YYYY) and expiring the earlier of the date on which the Machine has accumulated _______ SMR hours or MM/DD/YYYY. The phrase “SMR hours” represent the engine run time for the Machine and are measured using the hour meter or monitor panel installed in the Machine’s operator cab.

c. The Covered Items for this Machine are identified by a checkmark under the Coverage Type (“Coverage Type”) column of attached Appendix 1.

2. Exclusions and Limitations:

The obligations of Distributor under this Agreement will not include: a. Repairs or replacements of:

i. Hose and tube flange o‐rings and gaskets. ii. Hoses after the Machine has been in service for 24 months or 4000 SMR hours. iii. Hydraulic cylinder packing replacements after the Machine has been in service for 5,000 SMR hours. iv. Starters, alternators, thermostats, belt tensioners, injectors, and water pumps after the Machine has

been in service for 5,000 SMR hours. v. Covered Items that are worn because of use. Examples of wear resulting from use would include, by

way of example but not limitation, oil consumption and high blow‐by pressure on engines, hydraulic cylinder seal leaks, wear of clutch or brake packs, pins or bushings, etc.

vi. Machine parts that are not procured from Komatsu or an authorized distributor. vii. Machine attachments, optional extras and other work equipment such as buckets, dump bodies, blades,

and associated wear packages such as teeth, cutting edges, and liners. viii. Any Machine part or component not specifically included within the scope of the Coverage

Type.

b. Operating expenses on Covered Items required to keep the Machine in good operating condition and repair, including, by way of example but not limitation:

i. System adjustments. ii. Scheduled maintenance outlined in the Machine Operation and Maintenance Manual (“O&M Manual”),

including the cost of periodic maintenance items such as filters, lubricants, brushes, grease, and A, B, C and D checks on engines.

iii. Komatsu Oil Wear Analysis (‘KOWA”), including the cost of drawing samples, oil, sampling accessories, postage and analysis report fees.

iv. The cost of carrying out KOWA maintenance recommendations such as early re‐sampling and/or replacement of oil or filters.

v. As needed maintenance items such as repairs or replacements of mounting hardware, including bolts, nuts, pins, bushings, and bearings, paint, windshield wiper blades, seat belt assemblies, air cleaners, belts, light bulbs, batteries, cables, fuses, tires, track link assemblies, track shoes, idlers, rollers, sprockets, rock guards and deflectors.

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vi. Cost of carrying out scheduled structural inspections that are required to maintain coverage for certain Covered Items for Premier, Frame and Boom & Arm Coverage Types. If you wish to perform these inspections yourself, please obtain a copy of the Distributor Inspection Worksheet from your local Komatsu Distributor.

c. Machine or Covered Item failures resulting from:

i. Operating the Machine outside the guidelines specified in O&M Manual. ii. Operating the Machine outside of the parameters specified in the Machine specific Payload Policy or

other notices or letters from Distributor or Komatsu. iii. Noncompliance with the maintenance schedule and procedure outlined in the Machine’s O&M manual. iv. Fuel, lubricant or coolant contamination from any source. v. Continuing to operate the machine when KOWA reports or the Machine monitor panel, VHMS,

KOMTRAX, PLM or any other systems (“Machine Monitoring Systems”) show critical errors, indicate that components are compromised by failures or are performing below specifications, or when the Distributor has requested that components be repaired or removed from the Machine because of an impending failure, manufacturer authorized field campaign or other good cause.

vi. Improper Machine storage procedures. vii. Incomplete or faulty repair procedures on previous repairs completed by any person other than

Distributor. viii. Improper initialization procedures during Machine commissioning if the commissioning process was

carried out by any person other than Distributor. ix. Machine attachments options, accessories, modifications, or work equipment not authorized in O&M

Manual and other materials published by Komatsu for distributors and customers or otherwise approved in writing and signed by an engineering officer of Komatsu.

x. Work site hazards or falling objects. xi. Fire, accidents, vandalism, theft, acts of terrorism or war, acts of nature or other causes beyond the

direct control of Distributor. xii. Misuse, misapplication, negligence or other misconduct on the part of Customer or any other person.

d. Customer will be responsible for paying for the following specific expenses related to repairs on Covered Items:

i. Transporting the Machine to a Distributor facility for completion of a covered repair and transporting the Machine back to the Machine’s work location after completion of the covered repair.

ii. Overtime labor charges incurred at the request of Customer to complete repairs outside of the Distributor’s normal working hours.

iii. Additional services performed at the Customer’s request outside the scope of the Coverage Time, including, by way of example but not limitation, replacing parts and components outside such scope during the course of performing a repair on a Covered Item.

iv. Other deductibles identified in Section 5 of this Agreement.

3. Customer Responsibilities: The obligations of Distributor under this Agreement are subject to and conditioned upon Customer timely performing the following at its expense: a. Operate, maintain, store, repair and otherwise use the Machine per the guidelines specified in the O&M

Manual, Machine specific Payload Policy and all other notices or letters from Distributor or Komatsu concerning such topics.

b. Maintain the Machine Monitoring Systems in good operating condition and repair.

c. Complete KOWA oil sampling on the Machine every 500 SMR hours for all oil lubricated compartments. Appendix 1 identifies Covered Items that require KOWA oil sampling reports in the event of a failure.

12/16/2010

d. Notifying the Distributor and requesting advice or direction on appropriate course of action promptly after the

Machine Monitoring Systems display error codes or warning lights or when the KOWA analysis reports indicate “Abnormal” or “Critical” results. In such instances, the Customer must stop using the Machine until advice or direction is received from the Distributor.

e. Carry out structural inspections for Machines with Frame or Boom & Arm Coverage Types utilizing the Distributor Inspection Worksheets as follows:

• For the first 10,000 SMR hours on the Machine, a structural inspection will be completed every 5,000 Machine SMR hours or every 12 months, whichever comes first;

• After the first 10,000 SMR hours on the Machine, a structural inspection will be completed every 2000 Machine SMR hours or 12 months thereafter, whichever comes first.

f. Provide the Distributor with all data from Machine Monitoring System on a monthly basis or on such more

frequent basis as Distributor may request.

g. Notify Distributor promptly in the event of failure of a Covered Item. In the event that the Machine is located outside of the Distributor territory at the time of a Covered Item failure, Customer can contact the local Komatsu distributor to carry out the covered repair. Please visit www.komatsuamerica.com for list of all Komatsu distributor locations.

h. Provide the Distributor with pertinent oil sampling reports and structural inspection reports to aid the Distributor in the failure analysis and repair planning process. These reports should be provided to the Distributor representative prior to the start of the repair process. The Distributor representative will require at a minimum two oil sampling reports for the Covered Item completed within 1,000 Machine SMR hours prior to the Covered Item failure and two structural frame inspection reports (the current report and the report completed on the last scheduled inspection per the guideline in Section 3 above).

4. Distributor Responsibilities:

a. Distributor will exercise commercially reasonable efforts to respond promptly to any Customer requests and questions related to this Agreement.

b. Distributor will carry out covered repairs during normal Distributor working hours.

5. Billing and Payments: a. Distributor will invoice the Customer an amount equal to 10% of the repair cost on a per occurrence basis in the

event that: i. The Covered Item that experiences the failure is an oil lubricated compartment that requires oil

sampling but the Customer has declined to participate in the Distributor’s KOWA program. ii. The Covered Item that experiences the failure is an oil lubricated compartment that requires oil

sampling but the Customer is unable to provide the minimal number of KOWA oil sampling reports required under this Agreement.

iii. The Covered Item is a structural frame component that requires inspection reports but the Customer is unable to provide the minimal number of structural frame reports required under this Agreement.

b. Distributor will invoice the Customer for charges related to overtime or for other services that are authorized by

the Customer to be completed at same time as covered repairs on the Machine.

c. Payments are due from Customer upon receipt of invoice.

6. Transferability:

12/16/2010

This Agreement is specific to the Machine listed in Section 1. Customer may not assign its right under this Agreement without the prior written consent of Distributor (such consent not to be unreasonably withheld).

7. Limitation of Liability:

Except as expressly provided in this Agreement and in any written warranty certificate delivered by Distributor to Customer in connection with a purchase, Distributor does not make any representations or warranties, expressed, implied, arising by operation of law or otherwise, as to merchantability, fitness for a particular purpose, quality, design, condition, suitability, performance or any other matter or characteristic with respect to the Machine and any related attachments, options, accessories, modifications, or work equipment. For any failure within the scope of the Coverage Type, Customer agrees that its sole and exclusive remedy will be for Distributor to perform the required repair. Distributor will not be liable under any circumstance to Customer for, and Customer waives and releases Distributor from all claims and liabilities for, any general, special, incidental, punitive, consequential, exemplary or any other damages of whatever kind or nature suffered or incurred by consignee, directly or indirectly, actual or alleged, whether arising in tort or in contract or otherwise, related to or arising out of this Agreement and the Machines and any related attachments, options, accessories, modifications, or work equipment.

8. KOWA Program:

a. KOWA Program is required for this Coverage Type: check Yes or No.

b. Customer has chosen to participate in the Distributor KOWA program: check Yes or No. ___________________ (Customer Initial)

Agreed to by Customer and Distributor as of the Effective Date. FOR DISTRIBUTOR:

FOR CUSTOMER:

By: By: Name:

Name:

Title:

Title:

12/16/2010

12/16/2010

COVERAGE TYPES REQUIREMENTSCOVERED ITEMS PREMIER PT Plus PT ENGINE CYLINDER FRAME BOOM/ARM

FRAME INSPECTION

KOWA SAMPLING

A) ENGINE AND RELATED PARTS 1. ENGINE ASSEMBLY INTERNAL COMPONENTS • OIL RELATED

1. COOLER A

2. FAN AND PRE‐LUBE PUMPS/MOTORS 3. ENGINE OIL FILTER MOUNT 4. REMOTE MAKE‐UP OIL TANKS5. REMOTE MOUNTED OIL FILTRATION SYSTEM6. VALVES 7. HOSE CLAMPS & HOSES*• AIR INTAKE AND EXHAUST RELATED

1. AIR CLEANER HOUSING & AFTER COOLERS 2. INTER COOLERS 3. TURBO CHARGER** 4. INTAKE AND EXHAUST MANIFOLDS 5. EGR VALVE AND COOLER 6. MUFFLERS7. SENDERS, SOLENOIDS, AND SENSORS B

8. PIPES, TUBES, CLAMPS, HOSES*• FUEL RELATED

1. FUEL TANK ASSEMBLY AND MOUNTING 2. FUEL FILTER MOUNTS 3. FUEL TRANSFER, AUXILIARY, LIFT, AND INJECTION PUMPS 4. FUEL COOLERS 5. INJECTORS** 6. FUEL MANIFOLDS/VALVES 7. SENDERS, SOLENOIDS, AND SENSORS B

8. PIPES, TUBES, CLAMPS, AND HOSES*• ENGINE MOUNTED COMPONENTS

1. AC COMPRESSOR/ CONDENSER 2. ALTERNATOR** AND STARTER3. DAMPER AND VIBRATION DAMPER 4. POWER TAKE OFF 5. BELT TENSIONER** 6. FLYWHEEL AND FLYWHEEL HOUSING 7. HEAT SHIELDING AND FRAMEWORK• ENGINE ELECTRICAL COMPONENTS

1. SENDERS, SOLENOIDS, AND SENSORS B

2. ELECTRONIC CONTROL MODULES 3. ENGINE WIRING HARNESS B) POWER TRANSMITTING SYSTEM • TRANSMISSION

1. TRANSMISSION AND TORQUE CONVERTORS 2. TORQUE FLOW ASSEMBLY/POWER MODULE 3. HYDROSTATIC PUMPS AND MOTORS 4. CONTROL AND PPC VALVES 5. OIL COOLERS, TANKS, AND RESERVOIRS 6. OIL FILTER MOUNT 7. ELECTRONIC CONTROL MODULE 8. SENDERS, SOLENOIDS, AND SENSORS B

9. STEERING AND TRANSFER CASES 10. DAMPER 11. SWING GEAR BOX 12. PIPES, TUBES, CLAMPS, AND HOSES*

12/16/2010


FRAME INSPECTION

KOWA SAMPLING

• DRIVE LINE 1. AXLES AND AXLE HOUSINGS 2. AXLE MOUNTING AND OSCILLATION 3. DIFFERENTIALS AND FINAL DRIVES 4. WHEEL/RIM 5. DRIVE SHAFT/AXLE SHAFT AND UNIVERSAL JOINTS 6. VALVES 7. PIPES, TUBES, CLAMPS, AND HOSES* C) STEERING 1. STEERING CLUTCH 2. STEERING CLUTCH & BRAKE CONTROL VALVE 3. STEERING PUMP AND EMERGENCY STEERING PUMP 4. STEERING OIL COOLER 5. STEERING VALVES 6. STEERING BOX 7. STEERING LINKAGE, COLUMN, AND CONSOLE 8. TIE ROD 9. SENDERS, SOLENOIDS, AND SENSORS B

10. PIPES, TUBES, CLAMPS, AND HOSES* D) BRAKING SYSTEM 1. BRAKE PRIMARY & SECONDARY CYLINDERS 2. BRAKE PUMP AND EMERGENCY BRAKE PUMP 3. WET BRAKE ASSEMBLIES 4. BRAKE OIL COOLER ASSEMBLIES 5. BRAKE OIL COOLER FAN, PUMP, AND MOTOR 6. BRAKE CALIPER 7. ACCUMULATORS 8. TANKS & RESERVOIRS 9. ELECTRONIC CONTROL MODULES 10. SENDERS, SOLENOIDS, AND SENSORS B

11. PIPES, TUBES, CLAMPS, VALVES AND HOSES* E) COOLING SYSTEM: 1. RADIATOR 2. EXPANSION TANK 3. THERMOSTAT** 4. COOLING FAN, FAN DRIVE, AND SHROUDING 5. WATER PUMP** 6. SENDERS, SOLENOIDS, AND SENSORS B

7. PIPES, TUBES, CLAMPS, VALVES AND HOSES* F) HYDRAULIC SYSTEMS 1. NON‐PROPULSION HYDRAULIC PUMPS & MOTORS 2. HYDRAULIC CYLINDERS 3. HYDRAULIC VALVE & CONTROLS 4. ELECTRONIC CONTROL MODULES 5. HYDRAULIC ACCUMULATORS 6. HYDRAULIC OIL COOLERS AND COOLING FANS 7. SWIVELS (ROTARY MANIFOLDS) 8. SWING MOTOR 9. HYDRAULIC OIL FILTER ASSEMBLY 10. HYDRAULIC TANKS 11. SENDERS, SOLENOIDS, AND SENSORS B

12. PIPES, TUBES, CLAMPS, VALVES AND HOSES*

12/16/2010


FRAME INSPECTION

KOWA SAMPLING

G) SUSPENSION 1. ELECTRONIC CONTROL MODULE 2. SUSPENSION CYLINDERS AND CONTROL VALVES 3. SUSPENSION CONTROL ARM ASSEMBLIES 4. SENDERS, SOLENOIDS, AND SENSORS B

5. PIPES, TUBES, CLAMPS, VALVES, AND HOSES* H) ELECTRICAL SYSTEM 1. GAUGES & INSTRUMENTS 2. WIRING HARNESSES 3. SWITCHES 4. RELAYS & CIRCUIT BREAKERS 5. START SWITCH 6. FUSE / CIRCUIT BREAKER PANEL & CIRCUIT BOARD 7. MONITOR PANELS 8. KOMTRAX, VHMS, AND PLM (PAYLOAD METER) 9. ELECTRONIC CONTROLLERS 10. L.E.D. WORK LIGHTS 11. AIR INTAKE HEATERS AND GLOW PLUGS 12. SENDERS, SOLENOIDS, AND SENSORS B

I) FRAMES, STRUCTURAL, & LINKAGES 1. BOOM/ARM 2. BELL CRANK AND Z BAR ON WHEEL LOADERS 3. CAR BODY 4. STEEL FRAME (FRONT, REAR, SUB) /REVOLVING FRAME 5. STEEL OF OUTRIGGER ON BACKHOE LOADERS 6. MOTOR GRADER CIRCLE J) UNDERCARRIAGE RELATED PARTS 1. BOGIE ASSEMBLIES 2. EQUALIZER BAR 3. H.I.C. ASSEMBLIES 4. PIVOT SHAFT ASSEMBLY 5. RECOIL SPRINGS 6. TRACK ADJUSTERS 7. TRACK ROLLER FRAME K) HYBRID SYSTEMS 1. CAPACITOR/INVERTER 2. GENERATOR/MOTOR 3. HYBRID CONTROLLER 4. LUBRICATION PUMP 5. RADIATOR 6. SWING MOTOR 7. WATER PUMP 8. WIRING HARNESS

Please note that while the Covered Item list is comprehensive for all other Coverage Types, the Premier Coverage Type includes items in addition to the above list, and is subject only to the limitations listed in Section 2 of this agreement. * Indicates coverage for 24mo/4000 hours ** Indicates coverage through the first 5000 hour A KOWA for non-structural cooler failures only B KOWA for mechanical solenoid failures only

UNDERCARRIAGE ASSURANCE PROGRAM CERTIFICATE FORM SPP 10‐1‐8 Page 1 of 1



UNDERCARRIAGE ASSURANCE PROGRAM CERTIFICATE FORM


This form outlines the Undercarriage Assurance Program Coverage for the Customer. Distributor should use the form to explain the scope and terms program to the Customer and secure the signature of a Customer agent.

B) FILING PROCEDURE

Once the Customer’s signature has been secured, Distributor must store a signed copy the form in the Machine File.

C) DEFINITIONS





Undercarriage Assurance Program Certificate

Komatsu America Corp. is pleased to provide you with additional coverage for the undercarriage on your Komatsu machine. The Komatsu Undercarriage Assurance Program will provide coverage against leakage and breakage due to defects in material or workmanship for the term of 36 months or 4000 hours, whichever occurs first, starting with the machine’s first active date. Only registered serial number machines will qualify. Components Covered

• Link Assemblies, excluding shoes and pads • Track and Carrier Rollers • Front Idlers • Sprocket Teeth

Repairs Covered

• Breakage; Part must not have reached or exceeded 100% worn • Leakage of rollers and idlers; Tread surface must not have reached or exceeded 100% worn • Leakage of track pin and bushing seal prior to a pin and bushing turn; Bushing wear and link height must not have reached or

exceeded 100% worn • Repair costs for the covered components will be on a prorated basis if the failure occurs outside the Product Warranty Term. • Failures related to running U/C parts beyond 100% wear life, operator abuse, or neglecting to maintain machine in accordance

with the Komatsu Operation and Maintenance manual will not be covered under this program. Additionally, failures caused by link packing in landfill applications are also not eligible under this program.

• Leakage of track pin and bushing seal after turn is not covered under this program.

This coverage will reimburse your servicing distributor for the cost of parts and labor for the repair. This coverage does not reimburse for travel time, mileage, transportation costs, or other expenses for the mechanic, machine, or components involved in the repair. Requirements You must follow all maintenance requirements stated in the Operation and Maintenance manual for the respective machine carrying this coverage. This will include maintaining proper track tension, replacing or repairing all undercarriage guards, and reporting any leaks or unusual wear patterns to your Komatsu distributor promptly. Machine configuration must be within the Komatsu published standards and operated within its design limitations. Any abnormalities must be promptly reported to your servicing Komatsu distributor. Your selling Komatsu distributor will advise you of any additional requirements that may exist. To ensure the longest possible life for your Komatsu Crawler Dozer, proper track shoe selection is essential and should be determined by taking into account the application and underfoot conditions. Breakage or leakage caused by an inappropriate shoe selection is not covered under the terms of this program. Any repairs or replacements made under the Undercarriage Assurance Program will continue to be covered for the remaining term of the machine’s Undercarriage Assurance agreement. Claim Procedure If a problem occurs with a component covered under this program, transport it to your servicing Komatsu distributor. If the component needs service, Komatsu will repair or replace the part(s) at our expense, as outlined in this document. Machine and customer information Customer Name ________________________________ Machine Model, type and subtype____________________ Machine serial Number___________________________ Distributor name & 4+2 _______________________________

UNDERCARRIAGE PLUS PROGRAM CERTIFICATE FORM SPP 10‐1‐9 Page 1 of 1



UNDERCARRIAGE PLUS PROGRAM CERTIFICATE FORM


This form outlines the Komatsu’s Undercarriage PLUS Program Coverage for the Customer. Distributor should use the form to explain the scope and terms program to the Customer and secure the signature of a Customer agent.

B) FILING PROCEDURE

Once the Customer’s signature has been secured, Distributor must store a signed copy the form in the Machine File.

C) DEFINITIONS





Undercarriage PLUS Program Certificate

Komatsu America Corp. is pleased to provide a wear guarantee for the undercarriage on your Komatsu machine. The Komatsu Undercarriage PLUS Program will provide “Guaranteed Life” coverage against premature wear for 60 months or _________ hours**, whichever occurs first, starting with the machine’s first active date. ** Hours to be determined by your Distributor based on approximately twice previous undercarriage life. Machine Covered Model: ___________________ Serial: __________________ Components Covered

• Links • Track and Carrier Rollers • Front Idlers • Sprocket Teeth

Repairs Covered • Wear of any component that exceeds 100% before the “Guaranteed Life” • Repair costs for the covered components will be on a prorated basis if the failure occurs outside the Standard

Warranty Term. This coverage will reimburse your servicing distributor for the cost of parts and labor for the repair. This coverage does not reimburse for travel time, mileage, transportation costs, or other expenses for the mechanic, machine, or components involved in the repair. Requirements You must follow all maintenance requirements stated in the Operation and Maintenance manual for the respective machine carrying this coverage. This will include maintaining proper track tension, replacing or repairing all undercarriage guards, and reporting any leaks or unusual wear patterns to your Komatsu distributor promptly. Machine configuration must be within the Komatsu published standards and operated within its design limitations. Any abnormalities must be promptly reported to your servicing Komatsu distributor. Your selling Komatsu distributor will advise you of any additional requirements that may exist. To ensure the longest possible life for your Komatsu Crawler Dozer, proper track shoe selection is essential and should be determined by taking into account the application and underfoot conditions. Breakage or leakage caused by an inappropriate shoe selection is not covered under the terms of this program. Any repairs or replacements made under the Undercarriage PLUS Program will continue to be covered for the remaining term of the machine’s Undercarriage PLUS Program agreement. Claim Procedure If a problem occurs with a component covered under this program, transport it to your servicing Komatsu distributor. If the component needs service, your Komatsu Distributor will repair or replace the part(s) as outlined in this document. Customer and Distributor Information Customer Name ________________________________ Customer Signature _______________________________ Distributor Name & Location _______________________________________________________________________ Distributor Rep Name ___________________________ Distributor Rep Signature ___________________________

MINING SUPPORT PLAN FORM SPP 10‐1‐10 Page 1 of 1



MINING SUPPORT PLAN FORM


This form can be used by the Distributor to prepare from a product support standpoint for new machines being delivered to mining Customers. The “Critical Operations Functions” tab on the form can also be used to identify areas for continuous improvement for existing Customers and for developing job descriptions for Distributor employees working at a mine. Distributor can request support from the local Komatsu representative to develop and finalize the support plan.

B) FILING PROCEDURE There are no filing procedures for this form.

C) DEFINITIONS

1. Customer: Machine owner. 2. Distributor: Authorized Komatsu Distributor. 3. Komatsu: Komatsu America Corp.

D) REVISIONS Revision Date Version Content Author 1 12/23/2010 1 Draft document K. Venkiteswaran, A.

Rizzo

Cover

Distributor name:Branch location:Distance from jobsite:

Distributor Project Manager Name:Phone:Email:

Customer name:

Working hours per day: Working days per year: Tender date:

Customer contact(s): Name: Title Phone: Email:

Machine Information

Model Serial Numbers Configuration Application DescriptionAvailability Guarantee RAMP SEST SFR

[Y/N] [Y/N] # #

RAMP description:

Availability guarantee description:

Parts Delivery GuaranteeTerms:

Application StudyNotes:

First JoiFUL Meeting Date:

Jobsite FluidsType Manufacturer Grade Particle Count Sample Result DateEngine OilHydraulicTransmissionCoolant FuelWheel motorOthers

Complies with New Project Startup and Support ActivitiesSign and Date

KAC Project Manager

KAC Regional Service Manager

Distributor President

Distributor Project Manager

Project Overview

Jobsite location:

Delivery Preparation PG 1

Topic Item Person ResponsiblePlan in Place

[Y, Date/N, % complete]Plan Document

Assembly Assembly scheduleInclude Gantt chart. Basic chart available in Assembly Manual.

Assembly team

Include list of team member, portions of the assembly they will participate in and indicate whether they have received machine and safety training

Assembly toolsInclude tool list and source/owner of tools

QC procedures

Include check sheet and person responsible for verification. Basic checksheet available in Assembly Manual.

Check out process

Include documents that need to be signed off at hand over. Who will handover the machine to the customer?

Training: OperatorInclude training dates and names of people trained

Service ‐ machineInclude training dates, names of people trained, and list employer

Service ‐engineInclude training dates, names of people trained, and list employer

Maintenance ‐chassisInclude training dates, names of people trained, and list employer

Maintenance ‐engineInclude training dates, names of people trained, and list employer

KOMTRAX & KOMTRAX PLUSInclude training dates, names of people trained, and list employer

Contract obligations ‐ MARC, Availability, Cost Cap, etc.

Include training dates, names of people trained, and list employer

Spare parts: RPL ‐ chassisInclude list of parts and quantities that will be stocked at the customer and at DB. Also include reorder points.

RPL‐ engineInclude list of parts and quantities that will be stocked at the customer and at Db. Also include reorder points.

Handling Emergency Orders

Include shipment route and handling procedure for parts outside of the RPL. Include special transportation arrangements if required.

Handling swing components

Include list of swing components and special conditions relative to ordering and replacing these parts. Include list of rebuild suppliers for any components that will be rebuilt locally on "Outside Supplier List" tab.

Tech support HHP Engines Tech support ‐ engine

Include contact name and phone number of Db/Cummins person responsible to address daily technical questions from the mine.

PG2

Project Success = Profitability and Repeat Business = fn(availability performance, operating costs, productivity/CI)

Item Description Process Owner *Action/Method/Comments

a Maintenance strategy 1. What is the scope of PMs and how often should they be done?

2. How should reliability indicators be validated (KOWA, KOMTRAX PLUS, MTBO etc.)? What is the required course of maintenance for each type of occurrence?

b Maintenance planning ‐ long term1. What should be done on a particular machine for the next 12‐months based on the adopted maintenance strategy (component replacements, maintenance and R&R parts)?

c Maintenance planning ‐ short term1. Monitor reliability indicators ‐ what action should be taken based on the reliability indicators and the maintenance strategy (backlog)?

2. What backlog items and scheduled maintenance should be done today? Who should do the job?

d Onsite Fluid Quality 1. Perform sampling of oils and fuel verify free of contaminants

e Job planning 1. How should the task at hand be done? 2. What parts are required for the job?3. How can quality be verified?4. Who will perform repairs?

f Job execution and QA 1. Is the task complete in accordance to manufacturer specifications and standards?

g Handling Warranty Repairs 1. Documented procedure for repairs2. Handling and storage of failed parts3. Repair support documentation, method of delivery

h Parts planning 1. What parts should be in inventory and how should min/max levels be set at jobsite?

2. How should inventory be adjusted based on short term maintenance plan at jobsite?

3. Ensure correct parts are available in the bay when equipment comes in for the job.

i Application verification1. Application verification ‐ is the equipment operated in a safe manner and in accordance to manufacturer's specification (PLM, STATEX 3, profile updates)?

j Administration ‐ guarantees 1. Equipment performance validation relative to availability guarantee.

2. Equipment operating cost validation relative to VIUD tables or RAMP.

3. Detailed review of all equipment operations to identify opportunities for CI/JoiFUL.

* Distributor involvement if the customer is not the process owner

PG3

Objective: develop project support structure by categorizing various jobsite and back office functions that are critical to project success.

Jobsite Operations

Distributor Support Operations

Item Description Process Owner Action/Method/Comments*

k Parts Planning 1. What parts should be in inventory and how should min/max levels be set at Db?

2. How should Db inventory be adjusted based on short term maintenance plan at jobsite?

3. Handling swing components ‐ Include list of components relative to ordering. Develop method to track parts replacement schedule.

l Exchange parts ‐ third party supply 1. Execute and manage supplier agreements

2. Training supplier of rebuild, reusability specifications and test method

3. Audit of supplier quality

m Exchange parts ‐ Internal parts, 1. Training technicians of rebuild, reusability specifications and test method.

including PM kits 2. Execute repairs in accordance to manufacturer's specification.

3. Perform failure analysis to determine quotations recipient.

4. Audit of rebuild quality.

n Tooling‐ (Troubleshooting, Repair & Rebuild) 1. Procurement

2. Audit and Maintain Inventory

o Technician Planning (no site labor) 1. Resource management

2. Issue Response Territory Logistics Strategy p Ongoing Training Management 1. Technician

2. Support Staff3. KOMTRAX/KOMTRAX PLUS/PLM4. CSS PORTAL, Service Policy

s Administration 1. Reporting to Komatsu and Customer on equipment performance relative to availability guarantee.

2. Customer Invoicing and Reconciliation3. Reporting to Komatsu and customer on equipment operating cost validation relative to VIUD tables/ RAMP 4. Reporting to Komatsu and Customer on progress relative to CI requirements.

5. Logistics and warehousing of spare parts and cores between customer, rebuild suppliers and Komatsu.

6. Factory Campaign completion process7. Supplier payments and Customer and Komatsu invoicing.8. Customer JoiFUL

* Distributor involvement if the customer is not the process owner

Project Support Map PG 4

1 Any support structure developed should address all of the key issues listed on the "Critical Operation Functions" tab.2 Jobsite operations must be closely linked to support operations to ensure consistency in project approach and controls.3 Develop the reporting structure to show the relationship between the Distributor Process Owners identified in the "Critical Operations Functions" tab.4 List the function number (alphabet + number) from the Critical Operations Functions tab under each person on the org chart.5 Page 6 shows an example of an support structure wherein the customer provides the site labor. Page 7 shows the qualifications of the people in each of the positions.

Example: Project Support Map: Customer labor maintains equipment PG 5

EXAMPLE KAC Project Manager1 Technical reporting to factory2 Setting maintenance strategy/standards3 Coordination of warranty activities4 Recipient and analyst of reconciliation of availability and cost caps5 CI coordination at Komatsu6 Consultant to Service Leaders on job planning and execution7 Consultant to Manager, Planning on parts issues8 Consultant to Project Manager on total operation

Project Manager, Distributor1 Project P&L2 Maintenance strategy3 Administration4 Application verification:5 Responsible to generate new business6 Customer relationship management JoiFUL

Project Administrator, Distributor1 Reporting and clerical function for Support Team[Data Management]

Manager, Planning, Spare Parts and Logistics Service Leader, Customer OperationsDistributor 1 Assist Logistics Manager with Maintenance Planning:

1 Backup for Project Manager 2 Job planning: 2 Maintenance planning 3 Job execution and QA3 Job planning: 4 Application verification:4 Parts planning: 5 Daily responsibility, [availability guarantee]5 Daily responsibility [VIUD reconciliation] deliverables7 Administration:

PG 6Qualifications of staff in example Project Support Map:

Distributor ‐ Project Manager Customer Operation ‐ Service Leader

Industry Experience: Industry Experience:1 Basic understanding of equipment structure and function and equipment systems 1. Superb understanding of equipment structure and function and equipment systems2 Superb understanding of customer operations 2. Thorough understanding of machine application3 Solid knowledge of distributor product support operations

Business Experience: Business Experience:1 Project Management 1. OJT2 Supervision and/or training 2. Service job planning3 P&L responsibility 3. Contract Management/ Availability Reconciliation4 Basic logistics5 Negotiation

Skills: Skills:Superb communicator Superb troubleshooterAbility to build relationships and generate trust with customer management Good communicatorProficient user of MS Office products Ability to build relationships and generate trust with customer technicians

Proficient with use of computerDistributor ‐ Manager, Planning, Spare Parts and Logistics

Industry Experience:1 Basic understanding of equipment structure and function and equipment systems2 Superb understanding of customer logistics operations3 Solid knowledge of distributor spare parts operations

Business Experience:1 Project Management2 Expediting3 Part's stock planning (setting reorder points and reorder quantities)

Skills:1 Good communicator2 Working knowledge of Distributor Business System. Expert user of spare parts module.

Fill in Yellow boxes: Title of Person Responsible from Project Support Map page. Project Communication Items PG 7

Report # Information Source Report Name/Documents Submission Method Timing Reporting Party Follow‐up Action Start DatePER INCIDENT:

a. IF EQUIPPED: electric drive system (download + summary report with findings + list of issues addressed during the PM)

Project Website Next day

Distributor staff to use data to create fleet Statex report for monthly discussion with customer.

b. IF EQUIPPED: PLM (download + summary report with findings)

Project Website Next day

DB staff to used data to create monthly fleet PLM report for monthly discussion with customer.

c. IF EQUIPPED: Komtrax PLUS (download + summary report with findings)

Webcare Website Next day

DB staff to study Webcare trends for BF activity with assistance of KAC Project Manager.

e. Backlog List Project Website Next dayKeep outstanding log for use in future discussions with Customer.

2 UC Inspection Reports a. Undercarriage report eCARE Next day Parts planning

DAILY:

2AVAILABILITY RECONCILIATION – Update

a. Major and Minor Events Excel file to Project Website Within 1‐week of site reconciliation

For upload to R+M Care at KLTD for data analysis.

WEEKLY

a. Inventory position for cylinders and pumps.b. Rebuild status of WIPa. Inventory position for Wheel Motors, MTAs and Grid Blower Motors.b. Rebuild status of WIPa. Inventory position for Power Modules, Spindle Hub and Brake Assemblies, Nose Cones, Park Brakes and Service Brakes..b. Rebuild status of WIPa. Inventory position for Engines.b. Rebuild status of WIP

3 TEAM FOLLOW‐UP a. Action log updatesa. Weekly Email to KAC Project Manager

1 500 HR PM

Thursday each week

Thursday each week

7CUMMINS REBUILD COMPONENTS

a, b.Weekly Email to KAC Project Manager

4

Follow‐up/expedite on any component shortages

Thursday each weekUse for discussion with Customer Planner.

Follow‐up/expedite on any component shortages

Thursday each weekFollow‐up/expedite on any component shortages

6REBUILD COMPONENTS

a, b. Weekly Email to KAC Project Manager

Thursday each weekFollow‐up/expedite on any component shortages

Weekly. 1 day after weekly customer meeting

Follow‐up on open items assigned to Db and KAC.

HYDRAULIC COMPONENTS

a, b. Weekly Email to KAC Project Manager

5 GE COMPONENTSa, b. Weekly Email to KAC Project Manager

8

COMPONENT REPLACEMENT/MAJOR REPAIRS FOR FOLLOWING WEEK

List by truck numberWeekly Email to KAC Project Manager

Fill in Yellow boxes: Title of Person Responsible from Project Support Map page. Project Communication Items PG 7

Report # Information Source Report Name/Documents Submission Method Timing Reporting Party Follow‐up Action Start DateMONTHLY: PG 8

9 AvailabilitySpreadsheet (before discussion withcustomer)

Email to KAC Project Manager

Within 5‐days of the start of the following month.

Db PM and KAC PM to determine final reconciliation position before meeting with customer.

10IF EQUIPPED: Monthly Statex Evaluations

Statex 3 monthly reportEmail to KAC Project Manager


For Db Project Manager to present to customer each month with a list of recommendations.

11IF EQUIPPED: PLM data Evaluations

PLM monthly report (needs to be defined)



For Db Project Manager to present to customer each month with a list of recommendations.

QUARTERLY

12COST CAP/RAMP if applicable

Spreadsheet (before discussion withcustomer)


Within 15‐days of the start of the following quarter.

For submission to KAC's Contract Business Group

13 PCR 12‐month rolling PCR scheduleEmail to KAC Project Manager

Within 15‐days of the start of the following quarter.

For Project Coordinator to discuss with Customer Site Planner.

BI‐ANNUAL

14MACHINE APPLICATION

Haul profiles from Customer Engineering Department. Observations for loading, grading, bulldozing equipment.


Within 15‐days of the start of the following 6‐month period.

For submission to KAC's Application Engineering Group to verify application.

Rebuild suppliers for project: PG 9

For electric trucks ‐ fill all. For mechanical products, fill in cell highlighted in yellow. Bulldozer fill in green.

Component Sub componentRebuild [Y/N]

Rebuild Supplier Rebuild Supplier LocationSupplier Agreement

[Y/N]

Power module assemblyEngine assemblyAlternatorRadiator

Wheel motorsMechanical componentsElectrical components

Front wheel groupsFront suspensionFront spindle and hubFront brakesSteering arms

Rear suspensionsHoist cylindersSteering pumpHoist pumpRear brakesPark brakesAccumulatorsGrid blower motorUndercarriage

ACCIDENT NOTICE FORM SPP 10‐1‐11 Page 1 of 2



ACCIDENT NOTICE FORM

Contents A) PURPOSE .............................................................................................................................. 1 B) FILING PROCEDURE ........................................................................................................ 1 C) DEFINITIONS....................................................................................................................... 1 D) REFERENCES ...................................................................................................................... 1 E) REVISIONS ........................................................................................................................... 2 A) PURPOSE

Distributors must report accidents involving Komatsu machines that result in bodily injury or property damage. Any accidents must be reported immediately using this form in order for Komatsu to complete the investigation while the information and evidence are fresh.

B) FILING PROCEDURE 1. IMPORTANT:

a. Do not discuss the accident with attorneys, adjusters, or investigators without clearance of the KAC Manager of Product Integrity.

b. Limit the facts you report in your telephone call to Komatsu and the form to facts. 2. All accidents involving fatalities or serious bodily injuries, such as dismemberment, severe

burns, neck, back, or other injuries likely to cause permanent disability, must be reported immediately by telephone to the Regional Komatsu Service Representative and also by telephone to Komatsu’s Manager of Product Integrity (+1‐847‐437‐5052) in Rolling Meadows, IL USA. The Accident Notice Form should be completed immediately after the telephone call and faxed to +1‐847‐437‐5995.

3. Accidents involving less severe bodily injury or minor property damage, and all incidents involving safety issues, should be documented on this form and sent by email to the Regional Komatsu Service Representative, who will provide information regarding further investigation or information. . Presentation Komatsu Regional Representatives includes a list of Komatsu representatives by Distributor.

4. Whenever possible, copies of any documentation, photographs, or newspaper articles relating to the accident should be included along with the Accident Notice Form.

C) DEFINITIONS 1. Distributor: Authorized Komatsu Distributor. 2. Komatsu: Komatsu America Corp.

D) REFERENCES 1. Komatsu Regional Representatives presentation

ACCIDENT NOTICE FORM SPP 10‐1‐11 Page 2 of 2



E) REVISIONS Revision Date Version Content Author 1 12/23/2010 1 Draft document B.Miller

Name: Age: Street Address: Gender: City, State, ZIP: Type of Injury:

Country: (Fatality, Serious Bodily, Burns, etc.)

Model, Type, Sub: Location of Serial Number: Machine: Delivery Date:

SMR (hrs):

Owner Name: Selling Distributor: Street Address: Street Address: City, State, ZIP: City, State, ZIP:

Country: Country: Telephone: Contact Name:

Contact Telephone:

Date: Location: Time: Type of Accident:

AM/PM: (Rollover, Collision, Run-over, Fire, etc.)

Describe What Happened:

Name: Name: Street Address: Street Address: City, State, ZIP: City, State, ZIP:

Country: Country: Telephone: Telephone:

Name: Source of Title: Information: Date:

ACCIDENT NOTICE

PERSON INJURED

MACHINE INFORMATION

ACCIDENT DESCRIPTION

WITNESSES

Fax or Email this notice to the KAC Manager of Product Integrity (+1-847-437-5995) with a copy to the KAC Regional Service Manager. Provide as much information as you can obtain; however, do not delay this notice if details are not readily available. The notice can be supplemented should you learn additional facts. Do not discuss the accident with attorneys, adjusters, or investigators without clearance of the KAC Manager of Product Integrity. Limit your report to facts.

REPORTED BY

ACCIDENT REPORTING INSTRUCTIONS

If available, attach to a separate page: Photographs, Machine Invoice, Retail Order, Delivery Report, Service Records, News Article, etc.

Immediately telephone the KAC Manager of Product Integrity (+1-847-437-5052) and the KAC Regional Service Manager whenever the occurrence results in death, dismemberment, severe burns, or other injuries likely to produce permanent disability.

FACTORY CAMPAIGN REFUSAL ACKNOWLEDGEMENT FORM SPP 10‐1‐12 Page 1 of 2



FACTORY CAMPAIGN REFUSAL ACKNOWLEDGEMENT FORM

Contents A) PURPOSE .............................................................................................................................. 1 B) FILING PROCEDURE ........................................................................................................ 1 C) DEFINITIONS....................................................................................................................... 1 D) REFERENCES ...................................................................................................................... 1 E) REVISIONS ........................................................................................................................... 1 A) PURPOSE

The Distributor should complete this form or a form with similar information and secure the Customer’s signature if the Customer refuses to make a Machine available for a Mandatory Factory Campaign.

B) FILING PROCEDURE Distributor should store a signed copy of this letter in the Machine File and a copy should be attached on a Claim against the Factory Campaign to the subject Machine per the Reimbursement Policy Section of the Warranty and Coverage Policies. The requested reimbursement value for the Claim should be $0.

C) DEFINITIONS 1. Mandatory Factory Campaign: A Factory Campaign that required the Distributor to complete

the updates or repairs to all the Machines in the Distributor’s service territory on a pro‐active basis.




D) REFERENCES 1. REPAIR, PARTS STORAGE, COVERAGE TERMS AND CLAIM FILING POLICY

E) REVISIONS Revision Date Version Content Author 1 12/5/2010 1 Draft document K. Venkiteswaran, M.

Hayes


Customer Contact Name Customer Name Customer Address Dear Customer Contact Name: Subject: Factory Campaign refusal acknowledgement for your machine Model, Serial Number Komatsu America Corp., manufacturer of the subject machine, has requested that the machine be updated per Factory Campaign FC Number for Subject before FC end date. The update is being provided to you free of charge. You have chosen to decline the Factory Campaign on behalf of Customer Name. Please sign in the designated area below and return a copy of this letter to me at the address denoted on this letterhead. Sincerely, Signature Name By signing in the area designated below, you are acknowledging that you have been informed about the Factory Campaign and have chosen not to have it completed on the subject machine. You also confirm that you are now responsible for any damage to the machine, the operator or the machine’s operating environment that might occur as a result of not completing this Factory Campaign. Signed in acknowledgement _________________________________________ ____________ Your Name and Title Date

Distributor Letterhead

WHEEL MOTOR FINAL DRIVE FAILURE TIMELINE SPP 10‐1‐13 Page 1 of 1



WHEEL MOTOR FINAL DRIVE FAILURE TIMELINE FORM


Distributor should use this form is used to document oil sampling and part failure history on wheel motors for Claims on Electric Drive Trucks.

B) FILING PROCEDURE The form should be completed in excel and included as an attachment to the Claim. The attachment should be called “Wheel Motor Final Drive Failure Timeline”. A copy of the form should also be maintained in the Distributor’s Machine File.


policies. 2. Distributor: Authorized Komatsu Distributor. 3. Machine File: Electronic or paper files at the Distributor, searchable by machine model and

serial number that includes copies of all of the Distributor’s interactions with a machine. 4. Claim: A Claim is a request to Komatsu for reimbursement for services provided by a

Distributor under one of Komatsu’s Coverage Policies. 5. Electric Drive Trucks: Dump trucks powered by diesel electric systems.

D) REVISIONS Revision Date Version Content Author 1 12/23/2010 1 Draft document B.Miller, K.

Venkiteswaran

WHEEL MOTOR FINAL DRIVE FAILURE TIMELINE

E. Oil Maintenance History (order newest to oldest):A. Author (person compiling this report)

Sample Truck OilPrepared by Date Hours Hours Filtered Changed Sample Comments and Actions

Email Address

Date

B. Wheel Information

Model

Serial Number

Failure Date

Repair Date

Wheel Hours

C. Truck Information

Model

Serial Number

Engine SMR F. Repairs to this wheel motors since last overhaul:

Customer Name Fail Date

Mine Name

D. Oil Information

Oil Manufacturer

Product Brand Name

Stated Viscosity

Oil Type

Oil Maintenance (Mark "X")

Repair Description

CLAIM REIMBURSEMENT RATE REVISION FORM SPP 10‐1‐14 Page 1 of 5



CLAIM REIMBURSEMENT RATE REVISION FORM

Contents A) PURPOSE .............................................................................................................................. 1 B) FILING PROCEDURE ........................................................................................................ 1 C) FORM PROCESSING.......................................................................................................... 2 D) REIMBURSEMENT RATE CALCULATION FOR CANADA AND USA ................... 2 E) DEFINITIONS....................................................................................................................... 3 F) REFERENCES ...................................................................................................................... 4 G) REVISIONS ........................................................................................................................... 4 A) PURPOSE

Distributor should complete this form for Komatsu to calculate and set the reimbursement rates to the Distributor for labor, parts handling and mileage on Claims. This document includes information on the form filing procedure and on how the rates are calculated and set in Komatsu’s Claims System. Komatsu will reassess and set new rates once per year. The rates will be effective on June 1st of a given year to May 31st of the following year. A new Distributor can complete and file to form only after the Distributorship or Sales and Service Agreement has been signed and after Komatsu has assigned a Distributor an account number (4+2 code) in Komatsu’s systems.

B) FILING PROCEDURE 1. Timing: Distributor should complete the form and submit it to Komatsu before May 1st each

year. 2. Signature: The completed form must be signed by the Distributor’s General Service Manager,

Principal, or other person with similar responsibility. 3. Support Documents:

a. All Distributors: i. Governments do not generally levy taxes on product warranty and insurance related

services. If there are specific taxes applicable to the services provided by the Distributor under any of Komatsu’s Coverage Policies, Distributor must note this in the email when filing the form and include documentation from the appropriate government tax code showing the tax calculation method.

ii. Certain states, territories or provinces require that the Distributor charge the same rates to all its customers (including OEMs) for labor even if the work is performed under a product warranty or insurance contract. If this is applicable, the Distributor must note this in the email when filing the form and include documentation from the appropriate government regulations.




iii. Distributors that utilize currency other that the US dollar should indicate exchange rate utilized in the calculations on the form. The exchange rate should be the average exchange rate for the 6 months preceding the completion of the form.

b. For Distributors in Canada and USA only: i. Distributor must include a copy of the Distributor’s letter announcing the new rates to

Customers, or two copies of Customer invoices showing the new rate for each rate change included in the form. A rate change is a rate that was not previously submitted to Komatsu.

4. Filing: The completed form and required Support Documents should be sent by email to [email protected]. The email subject should be titled “Rate Changes for Distributor Name”.

C) FORM PROCESSING

1. For Distributors in Canada and USA: a. Komatsu will review the email from the Distributor to confirm that the form is completed

correctly and that the rate information provided is appropriately validated by the support documentation included in the email.

b. Komatsu may contact the Distributor in case there of discrepancies or if additional information is required to process the form.

c. Komatsu will calculate the reimbursement rates for the Distributor per section D below and send a confirmation email on the rate changes to the Distributor.

a. Komatsu will update Komatsu’s Claims System with the new reimbursement rates for the Distributor. The rate will be effective for all Claims submitted on or after the effective date indicated in the confirmation letter from Komatsu.

2. For Distributors outside of Canada and USA: a. Komatsu will check KLTD’s GCPS system to verify the rates on the form provided by the

Distributor. b. Komatsu will set the reimbursement rates for the Distributor to match the rates in KLTD’s

GCPS system in case there are discrepancies in the information provided by the Distributor and the rates in the GCPS system.

d. Komatsu send a confirmation email on the rate changes to the Distributor once the form has been processed.

c. Komatsu will update Komatsu’s Claims System with the new reimbursement rates for the Distributor.

D) REIMBURSEMENT RATE CALCULATION FOR CANADA AND USA 1. Annual rate changes: Komatsu will complete the following calculations and reset the

Distributor’s reimbursement terms every year irrespective of whether Distributor files this form.

2. Komatsu will average all of the New Customer Shop Labor Rate and New Customer Field Labor Rate fields provided by the Distributor in Section B of to form to calculate the Charge Out Labor Rate in Komatsu’s portion of Section B.

3. Komatsu will average all of the Mileage Rate fields provided by the Distributor in Section B of to form to calculate the Mileage Rate in Komatsu’s portion of Section B.




4. Distributor Performance Incentive: a. Komatsu has structured a performance incentive program to compensate Distributors for

focused activities in targeted areas of their organizations. b. Komatsu will release a Service Policy Letter to the Distributors by May 1st of each year

identifying five (5) focus areas for improvement (categories in Section C of the form) for the upcoming measurement period (May 1st – Mar 31st). The letter will also indicate the measurement process for each category and the target. Komatsu may use the same category multiple times. For example, increase Advantage penetration ratio to 50% of all final sales could be category 1, 2 and 3.

c. Komatsu will provide the Distributor information on their performance relative to these targets on a quarterly basis.

d. Komatsu will utilize the results as of March 31 to calculate the points in Section C of the form. The Distributor will receive one (1) point for each category target they meet or exceed during the measurement period.

e. Komatsu will utilize the total number of points achieved by the Distributor to determine the incentive factor scale in Section C of the form for the upcoming period.

5. Komatsu will calculate the Warranty Labor Rate in Komatsu’s portion of Section B of the form by multiplying the Charge Out Labor Rate (see D 2 above) by the Labor Incentive Factor Scale that corresponds to the number of points achieved by the Distributor in Section C of the form. The Warranty Labor Rate can thus range from 80% of the Charge Out Labor Rate (if the Distributor has 0 points) to 110% of the Charge Out Labor Rate (if the Distributor has 3 or more points).

6. Komatsu will calculate and set the Parts Handling Percentage Rate in Komatsu’s portion of Section B to equal the Parts Incentive Factor Scale that corresponds to the number of points achieved by the Distributor in Section C of the form.

E) DEFINITIONS 1. Machine: Komatsu manufactured machine eligible for Coverage under one of Komatsu’s

policies. 2. Distributor: Authorized Komatsu Distributor. 3. Komatsu: Komatsu America Corp. 4. Distributorship or Sales and Service Agreement: Overarching supply and services agreement

between Komatsu and the Distributor. The Service Policies, including this one are a subset of the Distributorship or Sales and Service Agreement.

5. Claims: A Claim is a request to Komatsu for reimbursement for services provided by a Distributor under one of Komatsu’s Coverage Policies.






F) REFERENCES 1. Komatsu’s Claims System

G) REVISIONS Revision Date Version Content Author 1 12/5/2010 1 Draft document A. Rizzo and K.

Venkiteswaran

CLAIM REIMBURSEMENT RATE APPLICATION / REVISION FORM


Section: A – GENERAL INFROMATION 1. Distributor Name 2. KOMATSU Distributor [4 Code] 3. Effective date of new selling rates 4. Comment on taxes for product warranty services (if applicable) 5. Comment on regulations for labor reimbursement (if applicable) 6. Distributors outside of USA – Prior 6 month exchange rate average KLTD RATE INFORMATION 7, 8 and 9 are for Distributors outside of Canada and USA only 7. Parts handling percentage rate from KLTD’s GCPS system 8. Warranty Labor Rate from KLTS’d GCPS system 9. Mileage Rate of Rate per Kilometer from KLTD’s GCPS system

Section: B ‐ RATE INFORMATION for Distributors in Canada and the USA only

DISTRIBUTOR SUPPLIED INFORMATION KOMATSU USE ONLY

APPROVED REIMBURSEMENT RATES Dist. branch

[4+2 Code]

New Customer Shop Labor Rate

$USD / hr

New Customer Field Labor Rate

$USD / hr

New Mileage Rate

$USD/mi [km]

Charge Out Labor Rate $USD / hr

Incentive Factor Calculation % [# Points = %]

Warranty Labor Rate $USD / hr [Charge out Rate x Incentive factor =]

Mileage Rate $USD / mi [km]

Parts Handling Percentage Rate [# Points = %]

Average

Comments:

Section: C ‐ PERFORMANCE INCENTIVE CALCULATION – KOMATSU Use Only Category Target Results Points Total Points Incentive Factor Scale

#1 Points Labor Parts #2 0 80% 10% #3 1 90% 10% #4 2 100% 15% #5

3 + 110% 15%

Section: D DISTRIBUTOR APPLICANT KOMATSU USE ONLY ‐ APPROVAL

Print Title Print Name Signature

Date

SERVICE REPORT FORM SPP 10‐1‐15 Page 1 of 7



SERVICE REPORT FORM


This form can be used by service writers and technicians at Distributor to summarize the information from a repair service. The DISPATCH INFORMATION section of the report should be completed by the service writer, while all other sections should be completed by the technician. If the form is filled out correctly and completely, the Claim Administrator at the Distributor will have all of the information she/he needs to start preparing a Claim. The Distributor can also use this form to prepare a TSR to Komatsu. Most Distributors have technicians input data directly into their business systems. In these cases, it is recommended that the Distributor try and include some of the fields especially those from the TROUBLESHOOTING and REPAIR INFORMATION sections of the form into the Distributor’s business system. Komatsu requires that the Distributor use one file to document all of the photographs on a Claim. The Distributor can use sections PHOTO 1 and PHOTO 2 independent of the other sections of the form to compile the appropriate photographs for Claims. This form is not appropriate for PM or rebuilds services.

B) DEFINITIONS 1. Distributor: Authorized Komatsu Distributor. 2. Komatsu: Komatsu America Corp. 3. Claim: A Claim is a request to Komatsu for reimbursement for services provided by a

Distributor under one of Komatsu’s Coverage Policies. 4. Claim Administrator: Person at the Distributor authorized to submit Claims to Komatsu. 5. TSR: A Technical Support Request is a request to Komatsu for technical support. The request is

filed though Komatsu’s extranet system (https://www.komatsuamerica.net). REVISIONS

Revision Date Version Content Author 1 12/5/2010 1 Draft document B. Miller, T. Robson, E.

Keane, K. Venkiteswaran

REPAIR SERVICE REPORT


1. DISPATCH INFORMATION Customer Information: Distributor Information: Date Work Order Number Customer Branch Customer Contact Service Writer Customer Telephone Lead Technician Customer Email: Other Technicians

Customer Complaint Source of complaint □ Operator □ Customer technician □ Other Complaint Category (additional questions to narrow the scope of the problem)

□ Oil □ Fuel □ Coolant □ Gas Where and when? □ a. Leak What part number is leaking? □ 1. Visual shortcomings

□ b. Cracked or broken part

What part number is cracked?

a. Code name b. Any warning light or buzzer? □ 2. Error Code c. When triggered and is it active?

□ a. Will not start □ Won’t crank □ Cranks over but does not start. □ b. Noise Where from and when? □ c. Vibration Where from and when?

□ Black □ Grey □ White □ d. Smoke color When does it occur? □ Engine □ Motive □ Work Equipment

□ 3. Operational Issue

□ e. Power When does it occur?

□ 4. Other Describe

Job Type □ Internal – Sales □ Internal‐ Rental □ Customer □ Warranty

Job Location: □ Field □ Shop □ Field and Shop Customer location for field jobs: Address

Special instructions for technician (check PSNs, OEM Website, etc.)

Make Model Serial Number Customer Number SMR Reading Machine down? □ Yes □ No



2. TROUBLESHOOTING INFORMATION

How is the customer using the machine (application)?

Does the machine have any special modifications or attachments? If yes, what is it?

Are there any previous repairs related to this problem? If yes, explain.

Did you verify the customer complaint? If no, explain.

What steps did you take to identify the cause of the problem*? Date What did you check How did you check it What was the result Comment (if required)

* Call your Technical Communicator if troubleshooting is taking longer than 4 hours. Total troubleshooting time (in hours)

Cause and mode of failure: Part number that caused the failure (critical fail part) Critical fail part serial number (if applicable) Component serial number (if applicable) How many hours were on the critical fail part? How did the critical part fail? Why did critical part fail?

What are you going to do with the critical fail part?* □ Repair on the machine □ Leave with the customer □ Store at the shop □ Bring back to the shop for

repair or return to OEM reman program

* OEM may want failed parts for technical investigation on warranty jobs What other information did you collect when troubleshooting?* □ Payload or load information □ PM Clinic □ System downloads □ Oil samples □ General machine inspection □ Photographs of the jobsite and failure



* OEM may need system downloads and photos for warranty jobs 3. REPAIR INFORMATION

What did you do to fix the machine?

Date Activity Description Number of

technicians required for the activity

Total time for repair (in hours for all technicians on the job) – do not include troubleshooting time

What parts did you replace and why?

Part Number Quantity Replacement Reason (failed, consumable or

worn)

Replacement Part Serial Number

(if applicable)



4. PHOTOS 1: Use as few pictures as you can to show the problem Description Photos (click Insert‐> Picture ‐>Select Location ‐> Picture)



5. PHOTOS 2: Use as few pictures as you can to show the problem Description Photos (click Insert‐> Picture ‐>Select Location ‐> Picture)



6. TECHNICIANS TIME CARD FOR THIS JOB

Date Name Start Time End Time

7. SERVICE TRUCK MILEAGE INFORMATION FOR THIS JOB

Date Vehicle Number Start Location End Location Number of Miles

CLAIM AUTHORIZATION FORM SPP 10‐1‐16 Page 1 of 3



CLAIM AUTHORIZATION FORM

Contents A) PURPOSE .............................................................................................................................. 1 B) FILING PROCEDURE ........................................................................................................ 1 C) FORM PROCESSING.......................................................................................................... 1 D) DEFINITIONS....................................................................................................................... 1 E) REFERENCES ...................................................................................................................... 2 F) REVISIONS ........................................................................................................................... 2 A) PURPOSE

To pre‐approve cost of repairs requested or authorized by a Komatsu representative.

B) FILING PROCEDURE 1. The Claim Authorization Form will be issued to the Distributor by a Komatsu representative

whenever the Distributor is requested to perform work outside normal policies, or can be submitted by the Distributor to Komatsu to complete a Fix as Fail Campaign for a specific machine on a pre‐failure basis.

2. The Distributor’s and the Komatsu representative’s signature are required on the form indicating its acceptance of the terms set forth in the form.

3. The Distributor must obtain the completed form prior to Claim submission and must keep a copy in the Distributor’s Machine File.

4. A copy of the completed form should also be attached to the Claim. The Comments section on the Claim must include an explanation of the work that was performed and indicate it was completed in accordance with the Claim Authorization Form.

C) FORM PROCESSING Reimbursement will be limited to the approved expenses associated with the specific job described in the Claim Authorization Form. Claim evaluation procedures are the same as a normal Claim explained in the Warranty and Coverage Policy Section of the policy manual.

D) DEFINITIONS


2. Distributor: Authorized Komatsu Distributor. 3. Komatsu: Komatsu America Corp. 4. Claim: A Claim is a request to Komatsu for reimbursement for services provided by a


CLAIM AUTHORIZATION FORM SPP 10‐1‐16 Page 2 of 3





7. Machine File: Electronic or paper files at the Distributor, searchable by machine model and serial number, that includes copies of all the Distributor’s interactions with a machine.

8. Fix As Fail Factory Campaign: A Factory Campaign that requires the Distributor to complete the repair or update if a the specific type of failure covered by the Factory Campaign is reported by the Customer.

E) REFERENCES

1. Komatsu’s Claims System

F) REVISIONS Revision Date Version Content Author 1 1/3/2011 1 Draft document B.Miller

CLAIM AUTHORIZATION FORM


Authorization is granted to the Distributor indicated below to submit a claim for reimbursement of the expenses incurred in performing the described work.

DISTRIBUTOR NAME / BRANCH EQUIPMENT

Model Serial No. SMR Attachment

REASON FOR WORK REQUESTED ENGINE

Model Serial No. SMR Configuration

AUTHORIZATIONS WORK TO BE PERFORMED

Standard Labor Hours

Overtime Labor Hours

Parts

Other

Comments

REVIEWED BY CERTIFIED BY (DISTRIBUTOR)

Name Title Date Name Title Date

SIGNATURE: SIGNATURE:

AUTHORIZED BY (REGION MANAGER) Name Title Date

SIGNATURE:

KOMATSU CLAIMS SYSTEM SPP 11‐1‐1 Page 1 of 1



KOMATSU CLAIMS SYSTEM [DRAFT IN PROCESS]


1. This schedule provides the Distributor information on how to access and use Komatsu’s Claims System.

B) DEFINITIONS

1. Distributor: Authorized Komatsu Distributor. 2. Komatsu: Komatsu America Corp.

C) REVISIONS Revision Date Content Author 1 12/5/2010 Draft in process B. Miller

SMAP SPP 11‐1‐2 Page 1 of 1


SMAP [DRAFT IN PROCESS]


1. This schedule provides the Distributor information on how to access and use the SMAP system.

B) DEFINITIONS 1. Distributor: Authorized Komatsu Distributor. 2. Komatsu: Komatsu America Corp.

C) REVISIONS Revision Date Content Author 1 12/5/2010 Draft in process T. O’Grady

TSR SYSTEM SPP 11‐1‐3 Page 1 of 1


TSR SYSTEM [DRAFT IN PROCESS]


1. This schedule provides the Distributor information on how to access and use the TSR System.

B) DEFINITIONS 1. Distributor: Authorized Komatsu Distributor. 2. Komatsu: Komatsu America Corp.

C) REVISIONS Revision Date Content Author 1 12/5/2010 Draft in process M. Beinlich

KOMATSU VIRTUAL CAMPUS SPP 11‐1‐4 Page 1 of 1


KOMATSU VIRTUAL CAMPUS [DRAFT IN PROCESS]


1. This schedule provides the Distributor information on how to access and use Komatsu Virtual Campus.

B) DEFINITIONS


C) REVISIONS Revision Date Content Author 1 12/5/2010 Draft in process M. Robson

KOMATSU SERVICE EXTRANET APPLICATIONS SPP 11‐1‐5 Page 1 of 1


KOMATSU SERVICE EXTRANET APPLICATIONS [DRAFT IN PROCESS]


1. This schedule provides the Distributor information on how to access and use Komatsu Service applications on the Extranet.

B) DEFINITIONS


C) REVISIONS Revision Date Content Author 1 12/5/2010 Draft in process B. Miller

KOMATSU REGIONAL REPRESENTATIVES SPP 11‐1‐6 Page 1 of 2



KOMATSU REGIONAL REPRESENTATIVES

Contents A) PURPOSE .............................................................................................................................. 1 B) REPRESENTATIVE LIST .................................................................................................. 1 C) DEFINITIONS....................................................................................................................... 2 D) REVISIONS ........................................................................................................................... 2 A) PURPOSE

1. This schedule provides a list Komatsu’s local representative by Distributor.

B) REPRESENTATIVE LIST

Distributor Name Komatsu Representative Email Address Phone Number Anderson Equipment Company MIKE SUMNER [email protected] 614 746 7882 Anderson Equipment Sales DAVE BEVINGTON [email protected] 416 729 7621 Bacon Universal TERRY BROADSTOCK [email protected] 602 799 8005 Berry Tractor VINCE SHERIDAN [email protected] 918 808 9555 BIA Overseas SIMON ETHERIDGE [email protected] +44 773 0525 Binder Machinery Company DARRY STUART [email protected] 717 503 8888 Brandeis Machinery ROBERT HALL [email protected] 304 550 6540 JOHN TAYLOR [email protected] 678 733 1247 C.N. Wood DARRY STUART [email protected] 717 503 8888 Columbus Equipment Company MIKE SUMNER [email protected] 614 746 7882 Continental Distributing AIS) MIKE SUMNER [email protected] 614 746 7882 Craig Taylor Equipment TERRY BROADSTOCK [email protected] 602 799 8005 D&W DAVE BEVINGTON [email protected] 416 729 7621 DCML Brazil JORGE NAVARRO [email protected] +52 1 844 155 0304 DMI LES TRIPP [email protected] 847 452 0850 Dunlop DAVE BEVINGTON [email protected] 416 729 7621 Edward Ehrbar, Inc. DAVE PRICE [email protected] 908 902 5367 Equipment Sales & Service, LTD DAVE BEVINGTON [email protected] 416 729 7621 General Equipment LES TRIPP [email protected] 847 452 0850 H&E CARLOS DIAZ [email protected] 847 271 4355 Hub International Equipment DAVE BEVINGTON [email protected] 416 729 7621 Kirby Smith VINCE SHERIDAN [email protected] 918 808 9555 Komatsu Australia GRAEME WEATHERLEY [email protected] +61 412 332 348 HELGE JORGENSEN [email protected] +61 89 206 2568 JAMIE BODIAM [email protected] +61 412 015 632 JOHN PHILLIS [email protected] +61 411 691 477 PAUL STEPTOE [email protected] +61 437 776 881 Komatsu Chile MARK HAYWOOD [email protected] 309 361 1435 Komatsu China GERRY BECK [email protected] +1 775 389 0089 HERMAN TADDA htadda@kac‐peoria.com +86 138 112 244 24 WU JIAN HUA (JOHNNY) [email protected] +86‐136 1349 8727 BRENT MILLER [email protected] +1 217 417 1119

KOMATSU REGIONAL REPRESENTATIVES SPP 11‐1‐6 Page 2 of 2



Distributor Name Komatsu Representative Email Address Phone Number Komatsu Equipment Company GEORGE GARY [email protected] 309 370 8634 JACK SMART [email protected] 307 680 9212 JOHN GIBBS [email protected] 847 254 5954 TODD SEEFELD [email protected] 847 254 1047 TOM BALO [email protected] 307 696 5764 Komatsu India BRENT MILLER [email protected] +1 217 417 1119 Komatsu Peru MARK HAYWOOD [email protected] 309 361 1435 Komatsu South Africa GERT HORN ghorn@kac‐peoria.com 27 82 972 7007 Langer Equipment STEVE HUFF [email protected] 989 430 4356 Linder Machinery JEFF MCCREA [email protected] 352 328 5944 Lyle Machinery JOHN TAYLOR [email protected] 678 733 1247 Midlantic Machinery, Inc. DARRY STUART [email protected] 717 503 8888 Mining Solutions SIMON ETHERIDGE [email protected] +44 773 0525 Modern Machinery CHUCK FLETCHER [email protected] 503 970 8407 JACK SMART [email protected] 307 680 9212 Panafrican SIMON ETHERIDGE [email protected] +44 773 0525 Pine Bush Equipment DAVE PRICE [email protected] 908 902 5367 Power Equipment JOHN TAYLOR [email protected] 678 733 1247 Power Motive Corp. STEVE STRINGER [email protected] 970 261 0939 PT United Tractors DAMIEN BARNES dbarnes@kac‐peoria.com +62 81 255 29800 Rish Equipment JASON WORKMAN [email protected] 304 541 0948 ROBERT HALL [email protected] 304 550 6540 Road Builders VINCE SHERIDAN [email protected] 918 808 9555 Road Machinery & Supply DAVE CONNET [email protected] 847 682 3312 STEVE HUFF [email protected] 989 430 4356 Road Machinery Limited JOHN BROCKBANK [email protected] 847 777 9526 ROBERT HEIGL [email protected] 480 390 5459 TERRY BROADSTOCK [email protected] 602 799 8005 Road Machinery Mexico JORGE NAVARRO [email protected] +52 1 844 155 0304 Roland Machinery DAVE CONNET [email protected] 847 682 3312 SMS East DAVE BEVINGTON [email protected] 416 729 7621 PAUL SPEEDIE [email protected] 519 820 2192 SMS Rents DAVE BEVINGTON [email protected] 416 729 7621 SMS West HENRY SPENST [email protected] 780 916 0492 JACEK KARWOWSKI [email protected] 780 750 7752 JOHN GIBBS [email protected] 847 254 5954 RICK UNWIN [email protected] 250 425 5178 Stokvis SIMON ETHERIDGE [email protected] +44 773 0525 Sumitec SIMON ETHERIDGE [email protected] +44 773 0525 Tractor & Equipment CURTIS CALLIS [email protected] 770 312 0859 JASON WORKMAN [email protected] 304 541 0948 Wilson Equipment Limited DAVE BEVINGTON [email protected] 416 729 7621 WPI CARLOS DIAZ [email protected] 847 271 4355

C) DEFINITIONS


D) REVISIONS Revision Date Content Author 1 12/5/2010 Draft document K. Venkiteswaran

GUIDELINES FOR DOCUMENTING PHOTOGRAPHS AND TECHNICAL DATA SPP 11‐1‐7 Page 1 of 1

SERVICE POLICY & PROCEDURES GUIDELINES FOR DOCUMENTING PHOTOGRAPHS AND TECHNICAL DATA [DRAFT IN PROCESS]


1. This schedule provides the Distributor information on how to document photographs and technical data.

B) DEFINITIONS


C) REVISIONS Revision Date Content Author 1 12/5/2010 Draft in process T. Robson