PowerGard Plans Available (Plan A & Plan B) Tractor Eligibility Chart

Transcription

1 PowerGard Protection Plan Dept. Deere & Company, One John Deere Place, Moline, IL for exception requests or systems issues. John Deere Limited; Magnesium Dr. Crestmead, Queensland, Australia 4132 Dealer Support Toll Free: (Australia) / (New Zealand) POWERGARD TABLE OF CONTENTS TRACTORS COVERAGE REVIEW Program Introduction Program Parameters for Plan A (New units) & for Plan B (Used units) Steps to Certify Used Combines (out of warranty, inspected and fluid tested) Contract Terms, Limitations & Deductibles Limited and Comprehensive forms Covered and Non-covered Components Limited (engine & powertrain) form Covered and Non-covered Components Comprehensive (full-machine) form TRACTOR ELIGIBILITY PowerGard Plans Available (Plan A & Plan B) Tractor Eligibility Chart POWERGARD PROTECTION PRICING & PURCHASING Quoting a Price for the PowerGard Protection Plan Determination of the Cost of PowerGard (see Pricing Page links - PPP web site) Processing a PowerGard Protection Plan Contract PowerGard Certificate Cards PowerGard Protection Plan Processing Flow Chart HOW TO SELL Features and Benefits to Your Customers Features and Benefits to Your Dealership Sales Tips Customer PPP Rejection Form CLAIMS PROCESSING Advantages of PowerGard Protection Plan Processing Requirements Reimbursement Provisions Steps to Process Claims Common Claim Situations Covered Part Replacement Guidelines Definition of a Covered Event ACKNOWLEDGEMENT Dealer Acknowledgement Form

2 POWERGARD PROTECTION PLAN The PowerGard Protection Plan is an extended warranty for John Deere tractors covering defective components/parts due to faulty materials or original workmanship. There are two coverage forms available for new (in-warranty) tractors: Limited Coverage Form - pays to repair or replace only covered engine and powertrain components/parts specified in the PowerGard Protection Plan. This is eligible on all new (in-warranty) John Deere tractors. All high-wear or maintenance items are excluded. Comprehensive Coverage Form pays for repair or replacement of all components of the tractor, except: Items covered by other warranties (such as tires/tracks, batteries, radios), All high wear or maintenance items, and All AMS components (wiring harnesses, etc. and AMS software & hardware). AMS hardware can be covered under a separate PowerGard Protection Plan contract and terms. The Comprehensive Coverage form is not available on large tractors used in commercial scraper applications, and is not available on used (out of warranty) units. Deductibles: $100 deductible for Compact Utility Tractors $250 deductible for all 5000 & 6000 Series tractors $500 deductible for all 6R, 7000 & 8000 Series tractors $750 deductible for all 9000 Series (4WD) tractors These deductibles under PowerGard Protection are applied per work order. PowerGard may only be purchased from authorized John Deere equipment dealers, and is available only on John Deere manufactured tractors. Various options are available (based on total years and total hours). (See the Tractor Eligibility section.) A PowerGard contract is written on the tractor. It remains with the tractor and is transferable from one owner to another. There are no fees or paperwork associated with the transfer of coverage to the next customer. Only a second delivery receipt is necessary for this transfer process. The PowerGard Protection Plan is not insurance and should never be represented as such. Click on the applicable PowerGard Protection Plan contract in the Contract Forms section (right navigation panel) of the PPP Product home page for the contract terms, limitations and details for each coverage type by equipment type for complete details. PowerGard is a great way to help your customer s budget their total cost of ownership. To participate in the PowerGard Protection Plan, dealers must adhere to the procedures and responsibilities detailed throughout this PowerGard Protection manual and sign and submit the Dealer Acknowledgement Form. Fax or mail all Dealer Acknowledgment forms to the John Deere Limited office in Crestmead, Queensland.

3 PowerGard Protection Plan REASONABLE DIAGNOSTIC TIME IS COVERED UNDER POWERGARD PROTECTION TRACTORS - LIMITED (ENGINE & POWERTRAIN) COVERAGE FORM ENGINE POWERTRAIN COMPONENTS COVERED Cylinder block Rocker arm cover Timing gear covers Head Oil Pan All parts contained inside any of the above components. Fuel injection pump and injectors Electronic unit injectors Water Pump Electronic fuel injection controller Turbocharger Flywheel Water pump Intake and exhaust manifolds attached to the cylinder head Oil coolers mounted directly to the engine Crankshaft torsional damper ECUs/BCU s Starters COMPONENTS COVERED Transmission case Differential housing Pinion housing Clutch housing Ring gear housing Axle housings Final drive housing (inboard and outboard) Mechanical front wheel drive clutch housing Pump drive housing Power take-off clutch housing All parts contained inside any of the above components, (except seals on external shafts, dry clutch parts and steering cylinders). Input and output shafts Transmission control valves (including solenoid valves) Electronic transmission controllers Drive lines and U-joints Transmission charge and lubrication pumps Driveline torsional damper and tuner Steering pump and motor (track tractors) Steering planetaries (track tractors) Outboard planetary final drives (track tractors) Track steering controllers (track tractors) ENGINE COMPONENTS NOT COVERED POWERTRAIN COMPONENTS NOT COVERED Seals on external shafts External pipes and hoses (including but not Main hydraulic pump limited to turbo charger, oil line, injector Dry clutch parts pump lines, and air intake hoses and clamps) External linkages Fan and accessory drive belts Rims Accessory mounting brackets Steering cylinders Accessories Pipes and hoses Fuel Tank Tires and tubes Air Conditioning Components mounted to but not functionally Alternators part of the drivetrain, such as: Viscous fan clutch (external are not covered) Rockshaft parts Variable speed fan drive & viscous fan drive Mounting brackets Fuel Transfer Pumps Gudgeon/Hinge/Frame/Steering Thermostats Cylinders Electronic controls such as hand and foot throttles, & Three-point hitch controller internal cab controllers. Reverser lever Rubber tracks, front idlers, mid rollers, drive wheels, and track tensioning parts (track driven tractors) ALL DEDUCTIBLE APPLIED PER COVERED EVENT. (A COVERED EVENT IS ALL REPAIR WORK IN A SINGLE WORK ORDER COVERED BY POWERGARD.) $100, $250, $500 or $750 deductible applies depending upon the tractor Series.

4 POWERGARD PROTECTION PLAN REASONABLE DIAGNOSTIC TIME IS PAID ONLY ON CONTRACTS WRITTEN ON/AFTER 9/1/07 TRACTORS - COMPREHENSIVE (FULL MACHINE) COVERAGE FORM COMPONENTS COVERED All parts of the John Deere tractors are covered under the Comprehensive coverage form, with the exception of the non-covered items listed in the right hand column. COMPONENTS NOT COVERED Tyres Rubber Tracks Rubber Hoses, Belts, Seals Radios Batteries Equipment attachments AG Mgt. Solutions (AMS) Components - receivers - processors - displays [These AMS items above can get PowerGard extended warranty by purchasing contracts on individual components.] - wiring harnesses - software / data - storage/key cards Maintenance or Normal Wear Items, such as, but not limited to: oil filters coolant fluids (lubricants, conditioners) hoses seals belts dry brake systems dry clutch systems/components DEDUCTIBLE APPLIES PER COVERED EVENT. (A COVERED EVENT IS ALL REPAIR WORK IN A SINGLE WORK ORDER COVERED BY POWERGARD.) $100, $250, $500 or $750 deductible applies, depending upon the tractor series.

5 POWERGARD PLANS AVAILABLE PROTECTION PLAN A The PowerGard Protection Plan A is available for new John Deere tractors. The tractors must be within the John Deere basic warranty of 24 months / 2000 hours. Limited (engine & powertrain) or Comprehensive (full machine) coverage is available. Deere Basic Warranty Start Date Deere Basic Warranty Expiration Date John Deere Basic Warranty Period 00 months 12 months 24 months 0 hours 1000 hours 2000 hours Eligible Time Periods Plan A "Grace Period" Available w/o Surcharge No Certification Required "Delayed Purchase Period" + 40% Surcharge Applies Grace Period : PowerGard Protection Plan can be purchased any time throughout the Grace Period (within the first 12 months or 1000 hours of the Deere basic warranty) at the lowest price possible. Delayed Purchase Period : A +40% surcharge is applied to the price if PowerGard Protection Plan is purchased during the Delayed Purchase Period (after the Grace Period, but before the expiration of the John Deere Basic warranty of 24 months/2000 hours). PLAN A TIME/HOUR OPTIONS AVAILABLE Plan terms below are in Total Months / Total Hours, and include the Basic Warranty: 36 Months / 1500 Hours 48 Months / 1500 Hours 60 Months / 1500 Hours 36 Months / 2000 Hours 48 Months / 2000 Hours 60 Months / 2000 Hours 36 Months / 2500 Hours 48 Months / 2500 Hours 60 Months / 2500 Hours 36 Months / 3000 Hours 48 Months / 3000 Hours 60 Months / 3000 Hours 36 Months / 3500 Hours 48 Months / 3500 Hours 60 Months / 3500 Hours 36 Months / 4000 Hours 48 Months / 4000 Hours 60 Months / 4000 Hours 36 Months / 4500 Hours 48 Months / 4500 Hours 60 Months / 4500 Hours 36 Months / 5000 Hours 48 Months / 5000 Hours 60 Months / 5000 Hours 36 Months / 6000 Hours 48 Months / 6000 Hours 36 Months / 7500 Hours 48 Months / 7500 Hours 72 Months / 1500 Hours 72 Months / 3000 Hours 72 Months / 4500 Hour 72 Months / 2000 Hours 72 Months / 3500 Hours 72 Months / 5000 Hours 72 Months / 2500 Hours 72 Months / 4000 Hours

6 CONTRACT UPGRADES / EXTENSIONS PLAN A: Plan A PowerGard Protection contracts purchased on new (in warranty) Tractors, can be Upgraded. Upgrades (term extensions) can only be made to the same coverage type (i.e. Limited to Limited, or Comprehensive to Comprehensive) for longer terms (to longer total months, higher total hours, or both) out to the maximum terms available. Upgrades are also not allowed or possible under Plan B coverage terms on used, out of warranty units that get PowerGard Protection contracts sold on them from dealer inventory. SALES TIP: Offer low-hour customers the 1500 total hour options, which cost less. This will add additional time beyond the 24 month basic warranty, and leave a 1500 total hour cap for a much lower rate.

7 PROTECTION PLAN B - USED TRACTORS The PowerGard Protection Plan B is available for pre-owned, inspected, and Inspected & Certified John Deere tractors. For Plan B, tractors must be out of John Deere basic warranty and in dealer inventory. The Limited (engine & powertrain) coverage is available. Comprehensive (full-machine) coverage is not available on used, out of warranty, units. Deere Basic Warranty Expiration Date 10 Years from Original Dealer Invoice Date 5000 Total Operating Hours Beyond Deere Basic Warranty Expiration Plan A Plan B - Certification Always Required Unavailable PowerGard is only available prior to the sale of the tractor, and a delivery receipt is required to begin the protection plan coverage. Tractor must still be in the dealer s inventory at the time PowerGard is sold. Tractor must have been originally dealer invoiced within the last 10 years, and have less than 5,000 total operating hours on a working hour meter. Tractor must be certified prior to the quoting and sale of PowerGard. For Plan B Contracts Sold: The selling dealer is responsible for any repairs and replacements for the first 30 days or 50 hours after the contract is purchased and registered with Deere & Co., and must advise the customer to return to their selling dealership during that time frame if a failure occurs. Plan B contracts must be entered in the PG Contract Purchase application within 15 days of the used delivery receipt. Upgrades of Plan B contracts are not available. [ Note: Failure to inspect, certify and submit all required documentation and fluid tests will result in the charge-back of any subsequent PowerGard claims submitted for that PIN. Inspection and Certification should always be done prior to the quoting, selling, and entering of all PowerGard Protection contracts on used, out-of-warranty units.] PLAN B TIME/HOUR OPTIONS Coverage Begins Upon the Delivery Date of the Used Tractor Total Months (from delivery) Total Hours (from current hrs) SALES TIPS: Offering PowerGard on certified tractors helps you turn your used inventory quicker. After Certification is complete, display tractors with PowerGard Certified decal (DKMIS2087). Explain to your customer how the tractor has passed a thorough multi-point tractor inspection/certification process and several scan tests on the fluids. Look to the PowerGard Plan B 36 month options for re-leasing of pre-owned tractors.

8 THE STEPS TO CERTIFY USED TRACTORS For Plan B on used, out of warranty, dealer inventory Tractors, follow these steps to certify the eligible units. These are similar to the program rules and steps for used Combines ORDER TEST KITS - Part # CM23882 (Australia) / # CM23882NZ (New Zealand) The kit includes all of the necessary inspection forms and fluid testing materials. Fluid testing and analysis costs are included in the price of the kit. Order these through the Brisbane branch. Completion of Step 1 & 4 will take approximately 1-2 hours to conduct. 1. PULL FLUID SAMPLES Pull fluid samples from the engine, transmission/hydraulic, and coolant, and then place each of the sample containers into the plastic bags provided in the kits. Be sure to operate the unit for at least 15 minutes prior to pulling all fluids, to ensure the sample is representative of the entire lubrication systems being tested. Also, test only existing fluids in the unit (whether the unit is in warranty, or on used trade-in units out of basic warranty) prior to any fluid changes. 2. SUBMIT FLUID SAMPLES Place the Sample Information Form and all fluid samples into the self-addressed postage paid envelope and mail to ALS Laboratories. Fax Part B to: PowerGard Protection Dept (US): (309) , or fax and to SharedPPP@JohnDeere.com. 3. REVIEW TEST RESULTS The entire fluid testing process will take 7 to 10 working days, from the time the samples are taken until the results are received from the ALS lab. Note: ALS Labs will respond by phone or fax for abnormal or critical results only. mail all fluid test results to the dealership for their records. Have a qualified technician review the results and complete any corrective actions. Possible fluid test results: Normal - considered acceptable for "Certification." Monitor - consider acceptable for Certification, re-sampling later is recommended. Abnormal - should be analyzed closely by a technician with special attention to details provided in the analysis, corrective actions are required in many cases. Critical - should be analyzed closely by a technician and considered a failure in the certification process. [No PowerGard Extended Warranty should be offered.] 4. COMPLETE INSPECTION FORM Complete the appropriate Inspection/Certification form for Tractors AU/NZ. This form can be found under the Steps to Certify web page as well as under the Inspection Forms link under PARTS or SERVICE web sections. The tractor must pass the visual and mechanical inspection in all areas displayed in Part B to pass certification. Indicate the completed repair date of any needed repairs on Part B. The PowerGard Dept. may require copies of work orders on some work/fixes completed. 5. PURCHASE CONTRACT, OR PROMOTE CERTIFICATION After the tractor has passed certification, purchase/process all sold Plan B contracts in the PPP web site. If conducting certification to promote eligibility for Plan B, place a certified decal on the used combine, and have sales staff ready to quote a Plan B coverage to the next customer who plans to purchase the Certified Used Combine.

9 Quoting a Price for PowerGard PPP PRODUCT SPECIFIC CALCULATORS ON PPP HOME PAGE This is a quick and easy way to quote the PowerGard Protection Plan without having to first process a delivery receipt. Our PowerGard Protection Plan Home Page allows you to select from one of eleven different equipment programs. Once in the product home page, in the right hand navigation panel, you will find an area called Calculators, where you can generate quotes (and Proposal Documents) for a variety of coverage forms, contract terms, and models from the various Tractor price groups. On the Tractor Program home page, you will find Calculator links on the upper right hand side navigation for both New / Used Units (for machines either still under basic warranty or used units beyond basic warranty and PG Certified (inspected and fluid tested) and available for sale out of dealer inventory). NOTE: When a PPP Contract is quoted and sold to your customers, a delivery receipt must be processed first, in order for PowerGard Contract to be then be purchased and registered in the system. When you are quoting PowerGard with price pages, do not forget that a +40% surcharge applies to purchases during the Delayed Purchase Period under all Plan A type contracts/plans. SALES TIPS: Remember to offer PowerGard before you finalize your deal. It is easier and more economic to include PowerGard costs in the payments up front when the prices are the lowest and the cost can be rolled into the financing arrangements. Present the cost of PowerGard as either dollars per hour or dollars per month to break down the cost into something more measurable than a total dollar amount of the contract/coverage. If customer rejects PowerGard, request customer to: o check the rejection box and initial on the John Deere Purchase Order, o check the rejection box and provide signature on the PowerGard Proposal Document which is generated off the on-line calculator, or o Have your customer sign the PowerGard Rejection Form at the end of this manual, or the Customer Accept/Decline form found in the lower link in the left side navigation bar on the PowerGard Protection home page. LINKS TO PPP PRICING FROM BUILD & PRICE OR QUOTE IN JOHN DEERE SALES CENTER The PPP pricing is also available from links from other quoting and sales process applications such as the Build & Price or Quote segments in JDSC. This makes quoting (and not forgetting), the PPP program easier on most equipment quoting transactions.

10 DETERMINATION OF THE COST OF POWERGARD The cost of the product varies based on the following risk/coverage characteristics: 1. PPP Coverage Form (Limited vs. Comprehensive) 2. PPP Contract Type (Plan A New (in warranty) Grace (no surcharge) or Delayed (with surcharge), and Plan B Used (beyond warranty, in dealer inventory, certified) 3. Purchase Period (Grace Period vs. Delayed Purchase Period (surcharged), for Plan A) 4. The Model of the Tractor (determines the rating/pricing group) 5. Plan Term (the Total Month/Total Hour Limit of Coverage selected) 6. Use of the Tractor Tractors designated for Commercial Scraper Applications require a surcharge charge of 2.75 times the base cost shown on the Pricing Pages (effective 4/1/05 and after) for the Limited (engine & powertrain) coverage. Comprehensive (full machine) coverage form is not available for tractors used in scraper applications. 6. Dealership s own experience (Dealer Adjustment Factor) Regular Plan Base Cost X Dealer Factor - (these are all currently set at 1.00 for all NA dealers) = Dealer s Net Cost 7. Country of Use: The New Zealand Additive Application (applies the fixed 1.3 X the Aust $ base prices for New Zealand transactions). 8. Dealer Mark-up prices are marked up 25% over dealer cost to get to the list price (before GST taxes are applied for Australia & New Zealand). We suggest a 25% mark-up from the dealer based cost as reflected in all Protection Fees /List Prices in the Calculators and Contract Purchase system. 9. Applicable GST tax rates for Australian & New Zealand DEALER ADJUSTMENT FACTOR: The Dealer Adjustment Factor can be established once suitable dealership experience can be established over several years. All dealer factors are currently set at Those dealers whose factors change from 1.00 will receive a 30-day notification of their debit/credit, which should be applied on manual quotes. The dealer cost will reflect this debit/credit on the Intranet calculator. It can take years to gather enough experience to have a factor change up or down from a current factor of 1.00.

11 PROCESSING A POWERGARD CONTRACT All PowerGard Protection Plan contracts must be entered in the Purchase Contract application when they are sold to be valid. Verbal quotes and handwritten schedules of coverage will not be honored unless entered in the Purchase Contract application in the PowerGard Protection home page, and within program parameters. Any contract, which is NOT entered in the PPP Contract Purchase application, will be the selling dealer s responsibility in the future during the extended warranty period. To purchase a PowerGard Protection Plan contract, select the Purchase Contract link that can be found under Key Links for the Sales, Service, and Office Administration, home pages. Then perform the following steps: From the Purchase Contract link in the PowerGard Protection web site, Enter the PIN number of the eligible machine Answer basic questions on customer& dealership number validation, hour-meter reading, contract purchase date, Limited (engine & powertrain) or Comprehensive (full-machine) coverage, etc. The system will know (based on in warranty or beyond warranty) whether it is a Plan A (new) or Plan B (used) contract type and transaction. Scraper Use means land leveling, land planing, grading, or mining operations while pulling a scraper, other than mowing or normal agricultural operations. These require a surcharge of 2.75 X the standard rates for all pricing on the Limited (engine & powertrain) coverage form. Select the eligible time/hour option and plan desired and simply purchase online. The time and hour options screen will display the Reference Number (Dealer Base Cost) and the applicable Protection Fees (List Prices), plus all applicable country GST tax amounts and the grand Total with GST (to quote and charge the customers). The screen will then show all of the detailed information on the customer, dealership, PowerGard Protection Plan terms chosen and the dealer base cost (reference number). Check the information on the screen carefully. The question, Do you wish to purchase this contract? will appear on the bottom, which will require you to answer by clicking Next or Cancel or Reselect Opt. If OK click Next and also click OK to the pop-up box that appears as a last reminder. Once successfully registered, you get a notice on the screen. You then have the option to Print Schedule (as a proof of purchase for your records or for your customers). Adobe Acrobat opens, there is a print icon on the toolbar near the top to print a copy of the actual contract details selected and purchased. Click on Next. Then close (x) out of the page in the upper right hand corner of the document. Close the document for the contract purchase and then you can enter your next PIN that requires the next contract. If you have any questions, please us at SharedPPP@JohnDeere.com for assistance.

12 POWERGARD CERTIFICATE CARDS The following certificate card, along with the PowerGard Protection terms, will be issued to the customer within approximately 30 days after the PPP contract is electronically purchased. [ Front of Card ] PowerGard Protection Plan Certificate Machine Data Protection Plan Information Model PIN Delivery Date Deductible End Date End Hours Protection Plan Purchased The John Deere PowerGard Protection Plan is an extended warranty on select covered components providing reimbursement for parts and labour (less any applicable deductible) for failures or breakdowns that occur beyond the John Deere Basic Warranty on John Deere equipment. Selling Dealer Name and Phone Number: Customer Information: Important Notices: All deductibles are applied per covered work order. [For Tractors Only] Commercial Scraper Applications Yes No See the reverse side of this certificate for more details, and reference the actual PowerGard Protection contract for all terms, conditions and limitations. [ Back of Card ] IMPORTANT NOTICE TO PURCHASER The PowerGard Protection Plan only applies to covered components of Covered Equipment, which is specifically described in the Schedule Of Coverage and is subject to the terms, conditions, and limitations set forth in the PowerGard Protection Plan. Throughout the PowerGard Protection Plan, the terms you and your refer to the purchaser of the PowerGard Protection Plan. The terms we, us, and our refer to John Deere Limited (ABN ) of Magnesium Drive, Crestmead, Queensland, AUSTRALIA 4132.) Read the PowerGard Protection Plan carefully. Your rights and remedies under the PowerGard Protection Plan are limited as indicated below. The PowerGard Protection Plan may be terminated prior to expiration under the provisions of the PowerGard Protection Plan. Where permitted by law, JOHN DEERE products carry no implied warranty or condition of merchantability or fitness. The PowerGard Protection Plan is not insurance. This PowerGard Certificate Card serves as your proof of protection for the equipment scheduled on the reverse side. All coverage, terms, and conditions applicable to the covered equipment and components are determined by the actual PowerGard Protection Plan agreement. All repair work covered by the PowerGard Protection Plan must be performed by an authorized John Deere dealership in order for proper coverage determination and reimbursement under this protection plan. PowerGard Protection is transferable to all subsequent owners. All questions and inquiries should be directed to an authorized John Deere dealership, or call toll free (Australia), or (New Zealand). These PowerGard Protection Certificate Cards will be mailed to all customers who purchase the extended warranty coverage after the contracts are processed via the Purchase Contract link on the PowerGard Home Page within Pathways. In addition to these certificate cards, the actual PowerGard Protection contracts terms, conditions and limitations will also be mailed to customers.

13 POWERGARD PROCESSING FLOW CHART (RECOMMENDED) Customer Desires Coverage - Delivery receipt must be processed for new or used units first. Is the Machine eligible? - Is it a John Deere brand/model/series? - Is it within time/hour requirements? - If Plan B, was it inspected, fluid tested and approved by PG staff? Identify available term options? - How long will customer keep the unit? - How many hours per year will they operate? Quote a plan & price using PG Home Page Calculators, Build & Price or Quote in John Deere Sales Center, generate a Proposal Document. Close the Sale. Purchase the PPP Contract - Submit required information - Print PowerGard schedule of coverage and attach to PowerGard contract (or proposal) and give to the customer as proof of purchase Receive payment for PowerGard from Customer - Cash - Financing through JDF (or other financial institution) - Credit Card payment Customer will receive (from John Deere) a Certificate Card & contract terms in the mail approximately 30 days from date of purchase, verifying the coverage purchased/processed.

14 FEATURES AND BENEFITS TO YOUR CUSTOMERS The following features and benefits of the PowerGard Protection Plan should be explained to your customers when they purchase a new or pre-owned tractor with PowerGard Protection extended warranty: Guaranteed Cost of Ownership - With the one-time, up-front PowerGard Protection fee, the customer s repair costs on covered items are now budgeted, and their equipment investment is protected. This protection fee is even more manageable when financed over a period of time, as compared to the possible repair bills for catastrophic breakdowns and equipment failures. Flexible Coverage Terms to Fit Customer s Needs - The PowerGard Protection Plan offers many time and hour options to meet the needs of all your customers, whether they put low hours or high hours on their tractors annually. Continual Warranty Protection for Engine & Powertrain, or for the Full Machine - The PowerGard Protection Plan is designed by Deere for Deere tractors and extends warranty protection on either the engine & powertrain only, or on the full machine (less any wear or maintenance items). This assures the customer that continual warranty protection can be purchased without coverage gaps during their ownership period of the equipment, whether it is purchased when brand new or in basic warranty (under Plan A) or on used, dealer inspected and certified used units beyond basic warranty (under Plan B). No Pre-Approval on Repairs / No Up-Front Customer Repair Costs Customers do not incur up-front repair costs on covered items since repair costs (less the deductible) are paid directly to the dealership through the program. The customer does not have to pre-pay for repairs and wait for reimbursement. Transferable Coverage With No Transfer Fees - When a tractor covered by PowerGard is sold, any remaining time or hours under the PowerGard Protection is transferable to the next purchaser. This adds value at resale or tradein time. Pays for Parts and Labour - The PowerGard Protection Plan provides extensive parts and labour coverage, which minimizes the customer s total out-ofpocket expenses. John Deere Dealers available for all service work - With the number of authorized Deere dealerships nationwide, it is easy to find a dealer who can perform covered repairs under the PowerGard Protection Plan. Ability to Finance Protection Fees - The PowerGard Protection fee can be financed in various ways, including cash sales, John Deere Finance programs, Farm Plan, Ag Plan or other financing methods.

15 FEATURES AND BENEFITS TO YOUR DEALERSHIP The following features benefit you and your dealership when selling the PowerGard Protection Plan: Aftermarket Profit Opportunity - A profit margin can be made on the sale of each PowerGard contract. All PowerGard Protection contracts are marked up a recommended 25% on all computer systems and Internet calculators. This mark-up is also reflected in the Protection Fee prices (list) in your pricing pages, calculators, and proposal documents. Quicker Inventory Turn - Offering PowerGard on used units that still have PPP coverage remaining, helps you turn your used inventory (pre-owned but still under basic warranty) quicker and for higher prices and margins. Also, with the Plan B program for beyond basic warranty units, as long as they are inspected and certified, offering PG Limited coverage adds value and makes these units easier to sell and at higher margins! Remain Competitive PowerGard allows you to provide extended full machine or engine & powertrain coverage on John Deere tractors that is above and beyond programs offered by other manufacturers or independent programs for new equipment. Increase Service Revenues / Tie Customer to Dealership Since PowerGard requires that repairs and repair reimbursement be completed through authorised Deere dealers, this results in increased service and repair business to your dealership, and helps keep your customers out of independent repair shops. Move More Genuine JD Parts All PowerGard Protection Plan contracts require that repairs and replacement use only Genuine John Deere Parts by authorised John Deere Dealers. Higher Overall Profit Margin on Tractors Sold with Protection - Adding PowerGard Protection for the customer s tractor allows you to get higher overall margins on all tractors sold with PowerGard contracts.

16 SALES TIPS 1. OFFER POWERGARD UP FRONT. PowerGard should always be presented before the total deal is finalized. Your chances of selling PowerGard are much greater at the time of the tractor sale as compared to after the sale during the Grace Period, or in the Delayed Purchase Period, which requires a surcharge. 2. INCLUDE POWERGARD COSTS IN CUSTOMER S PAYMENTS. Whenever possible, the final price should be quoted including PowerGard costs. It is more difficult to sell additional products or protection after the customer has agreed to certain payments or total cost of the tractor. 3. REDUCE POWERGARD COSTS TO THE LOWEST DENOMINATOR. When presenting the cost of the Protection Plan, break down the cost to a measure the customer can best relate. Divide the customers PPP cost by the number of months or total hours they are choosing for protection to arrive at a Cost Per Month or Cost Per Operating Hour figure. 4. SELL THE PROTECTION AS VALUE-ADDED. Always build value first. Describe and present the PowerGard Protection Plan before you talk about the cost. Do not sell PowerGard by talking about how much the tractor you are selling may need the protection. Tell the customer that John Deere and your dealership are able to offer their customers the option of additional warranty protection that fits their unique needs. Deere and their authorized dealers can better take care of their customer s equipment should they experience a failure or breakdown, by pre-paying a smaller amount up front for the protection, they can hedge against the possibility of large repair bills in the future, should they experience an out of warranty failure. 5. USE VISUAL AIDS IN YOUR SALES PROCESS. Since PowerGard protection is an intangible product it is important to use marketing and promotional items during the sales process to increase customer awareness. Failure to use visual aids can reduce sales by as much as 50%. Use the Proposal Document as a sales tool to cover the features and benefits of the PPP program, or any other related brochure as a marketing tool. 6. ALWAYS ASK FOR THE ORDER. Many Deere dealers are currently marketing similar products successfully by including an extended warranty quote on every equipment sale and always asking for the business. Some dealers are able to these on as much as 90% of all sales using this method. Customers will not buy products that are not offered.

17 7. DOCUMENT ALL POWERGARD PROTECTION PLAN REJECTIONS. If a customer declines to purchase PowerGard Protection, document it. There are a number of forms to use. You can use the PowerGard Protection Plan Accept/Decline Form located in the lower left hand navigation bar. You can also use the Accept and Decline boxes on the formal Proposal Documents, located off the PowerGard calculators. Some dealers also use the accept / decline boxes on the standard John Deere purchase order. Also, within this manual is a PowerGard Rejection Form (next page) that is useful in getting proper documentation. This documentation assures your dealership that you will not absorb repair costs on tractors that were not sold with PowerGard Protection, and can reduce your special allowance exposure as well. With a signed rejection form, you will have documentation that coverage was not purchased. (See the following page. Use it to make copies.) 8. PAID BY POWERGARD STAMP. When customers who have purchased PowerGard bring their tractor in for repair on a covered part, show them the value of having purchased PowerGard. Fill out a repair order showing the work that was completed and associate the price with each repair. Then, write, PAID by PowerGard Protection Plan on the repair order so they can SEE that their PowerGard purchase was a good decision in the past. This helps reinforce the value of the PowerGard Protection Plan. You could also use these Stamped repair orders to show future customers the value of PowerGard.

18 POWERGARD PROTECTION PLAN CUSTOMER REJECTION FORM Customer Name: Customer Address: Equipment Make/Model: Pin# Date of Equipment Purchase: / / Date PowerGard Rejected: / / I have been offered the coverage options available on the equipment listed above provided through the PowerGard Protection Plan. I understand the general terms and conditions of the engine and powertrain additional protection offered in the PowerGard Protection Plan, and have chosen not to purchase any extension options beyond the protection provided by the John Deere basic warranty. With my signature below, I waive any possible rights or claims on warranty related repairs or items once my equipment (listed above) is beyond the original warranty protection in the John Deere basic warranty, in either time or operating hours. Customer Signature Dealership Representative Signature

19 CLAIMS PROCESSING ADVANTAGES OF POWERGARD PROTECTION PLAN: No pre-approval process. Experienced Deere claim adjusters, who know the equipment, process all claims. Provides extensive parts and labour coverage, minimizing customer s expenses. Under PowerGard Protection, reasonable diagnostic time is reimbursable. PROCESSING REQUIREMENTS: Each covered repair event (repairs under a single work order/repair visit that are covered by the PowerGard Protection agreement) should be submitted on a work order, similar to regular basic warranty claims. The applicable deductible (based Pricing Group/Series) will apply to each covered event regardless of how it is submitted. See the specific Models and which pricing group and deductible they belong to on the associated pages in this manual. Any authorized Deere dealer can perform the repairs and submit claims under the PowerGard Protection Plan. All repairs should be segmented under PowerGard Protection claim submissions, just as basic warranty claims require. REIMBURSEMENT PROVISIONS: Dealers will be credited for parts costs at John Deere s list price. Labour will be reimbursed at their retail labor rate (shop rate in most cases) times the reasonable number of hours established for the repair. Flat Rate/Service Pricing Guide times and prior claims statistics will be utilized to determine reasonable repair times allowed for labour. In events that repairs are required to be made in the field, please submit for field labour rate and explain the situation/need in the claim submission. The maximum cumulative reimbursement on any Covered Equipment shall not exceed 100% of the manufacturer s suggested list price of the new equipment (for Plan A). The maximum under any Plan B is the machine actual final sale price. Over the life of the PowerGard Protection contract, total claims cannot exceed the value of the equipment (when purchased new or used). This maximum applies per individual PowerGard contract purchased. See section H. of the PowerGard Protection Plan contract for details. TRACTOR COMMERCIAL APPLICATIONS (REMINDER): If commercial applications coverage was not purchased, the claim will be denied when a failure occurs after the tractor has been used for any commercial applications. Commercial Application means land leveling, land planing, grading, or mining operations, other than mowing or normal agricultural operations. The commercial applications surcharge is applied if the tractor has been, is, or will be used in any commercial scraper applications. DTAC/DMAC solution #R details tractor preparation for Comm. Applications.

20 Steps to Process Claims 1. GATHER INFORMATION Each covered event should be submitted on a separate work order. 2. SUBMIT CLAIMS All PowerGard claims for repairs must be electronically submitted in the JD Warranty System (same as basic warranty claims). Refer to the PowerGard Protection Plan contract for complete terms and details of the plan and coverage to be expected on covered components. Requests for delay in submitting claims will only be allowed in situations where the required repair parts are on backorder (or other similar circumstances). 3. PROCESSING OF CLAIMS All claims reviewed within 24 hours and most settled within 48 hours for PPP by the John Deere Service Processing Center (in Moline, IL, USA). 4. DEDUCTIBLE APPLIED Deductible will be applied per covered event in the contract. The applicable deductible (based on Tractor Pricing Group) will be applied per work order on all covered components on all contracts. The deductibles should be paid by the tractor owner/customer on all covered repair events. Deductibles: $100 deductible for all Compact Utility Tractors (CUTs) $250 deductible for all 5000 and 6000 Series (except 6R) tractors $500 deductible for all 6R, 7000 and 8000 Series tractors $750 deductible for all 9000 Series (4WD) tractors 5. FINAL ADJUSTMENTS MADE Once the claim is approved, the credit issued to the dealer electronically will be the approved amount less the applicable deductible per covered event. It is the customer s responsibility to provide timely notification of needed repairs and have their tractor available for repair when such need is known in advance of the protection plan termination. Customers must also have their equipment maintained. If any outside labour and/or materials are used in the completion of a qualified repair, a description of the charges, such as work performed, supplier, and cost incurred must be typed in the Other Credit field of the claim. Reimbursement for outside labor and materials will be at the actual cost figures. On all Plan B type PPP contracts (Tractors and Combines), the dealership is responsible for any/all claims filed against the active PPP Plan B contract if inside the first 30 days (after contract purchase/delivery) and inside the first 50 hours of use (starting from the hour meter when the PPP contract was registered).

21 COMMON CLAIM SITUATIONS In order to assist you during the sales process and enable you to better pre-determine what potential claims are payable, it is helpful to know and understand common failures. Breakdowns and claim situations that are approved as well as denied are listed below. Examples below are related to engine &/or powertrain failures (only). For customers who purchase the Comprehensive (full machine) coverage form, any/all failures (less issues with tyres/tracks, batteries, radios, attachments, or AMS-related hardware, wiring and software) would be covered under PowerGard Protection. COMMON APPROVED CLAIM SITUATIONS Parts and labour to replace broken exhaust valve and repair head damage malfunctioning fuel injectors broken timing chain broken piston rings failed water pump broken transmission case major engine failures COMMON DENIED CLAIM SITUATIONS Claim submitted on a non-covered parts Damage to a covered part, but caused by failure of a non-covered part Normal wear & tear situations Damage resulting from abuse/misuse of equipment, are alterations not factory approved Parts and labor for routine maintenance items (oil/oil filter change-fuel filters, air filters) COVERED PART REPLACEMENT GUIDELINES The following guidelines apply to all PowerGard claims. If you feel the situation merits consideration outside of these guidelines, discuss and obtain prior approval from the PowerGard Claims Unit at , Options 1, 4, plus 5-digit extension of the claim representative. If the repair of a failed component (ex. 4WD differential) leads to the identification of other worn (but non-failed) parts not directly related to the repair (such as transmission parts), the replacement of those non-failed parts is the customer s responsibility. PowerGard coverage terms do not apply to reconditioning, whether in the Limited (engine & powertrain) or Comprehensive (full machine) coverage forms. Replacing serviceable or re-usable parts is not covered by PowerGard. The decision to repair or replace a component should be made on the basis of the lowest cost alternative. This applies to all components such as, but not limited to, fuel injection pumps or the water pump. DEFINITION OF A COVERED REPAIR EVENT A covered repair event includes work required and reported in the dealer work order on all covered components under the PowerGard Protection agreement.

22 MAIL OR FAX THIS TO: JOHN DEERE LIMITED; MAGNESIUM DR. CREASTMEAD, QUEENSLAND, AUSTRALIA, 4132 TO ENROLL IN THE POWERGARD PROGRAM. (YOU ONLY NEED TO SUBMIT THIS FORM ONCE.) POWERGARD PROTECTION PLAN DEALER ACKNOWLEDGEMENT Marketing Unit # Dealer # (if more than one, list below) I, of (Authorised dealer or representative) (Dealership name) have read the instructions, overviews, terms and conditions of both the PowerGard Protection Plan contract and the PowerGard Protection Plan Administration Manual, and fully understand the dealership duties and responsibilities of this program. I also understand that should my dealership participate in this program and fail to abide by the rules and guidelines pertaining to the PowerGard Protection Plan as set forth in this and any other administrative manual, this program can be terminated and made unavailable to my dealership (including those listed below), by Deere & Company. Signature: Date: # (Dealership name and dealership number) # (Dealership name and dealership number) # (Dealership name and dealership number) # (Dealership name and dealership number) # (Dealership name and dealership number) # (Dealership name and dealership number)