Extended Warranty Programs for Commercial Mowers...mower attaching parts oil or other fluids exhaust...

POWERGARD PROTECTION PLAN DEPT.

Deere & Company, One John Deere Place, Moline, IL 61265-8098 US & Canada HOTLINE 866-866-1212 FAX 309-749-0789

E-mail: [email protected]

Extended Warranty Programs for

Commercial Mowers

Table of Contents

PPRROOGGRRAAMM IINNTTRROODDUUCCTTIIOONN

What is PowerGard Protection Plan? Why Market the PowerGard Programs? Why Sell the PowerGard Programs?

CCOOMMMMEERRCCIIAALL MMOOWWIINNGG EEQQUUIIPPMMEENNTT PPRROOGGRRAAMM Program Parameters Coverage Plans Available & Sample Contracts Purchasing Parameters Pricing (Dealer Base Costs and Protection Fees)

PPRROOGGRRAAMM AADDMMIINNIISSTTRRAATTIIOONN How to Market & Sell PowerGard Programs How to Process A PowerGard Contract PowerGard Certificate Cards for Customers How to Submit A PowerGard Claim Dealer Acknowledgement Form

1

PowerGard JD Commercial Equipment Manual DSEW088 (02/01/08) Program Introduction Promotional Tools

WWHHAATT IISS TTHHEE PPOOWWEERRGGAARRDD PPRROOTTEECCTTIIOONN PPLLAANN??

PowerGard is an extended warranty for John Deere Gators/Utility Vehicles, Commercial Mowers, and Golf & Turf Equipment that provides coverage for failures or breakdown due to faulty materials or original workmanship that occur beyond the John Deere Basic Warranty coverage.

PowerGard is not insurance and should never be represented as such.

Contracts can only be sold through:

Authorized John Deere dealerships

Direct Mail Programs approved by Deere & Company

Contracts are only available to your non-residential customers (in the US) who purchase any of the eligible equipment under the program.

PowerGard Coverage starts upon expiration of the John Deere basic warranty.

The coverage forms available include: Engine and Powertrain (Limited) (Specific covered components are listed.) Full Machine (Comprehensive) (Specific non-covered components are listed.)

Both coverage forms exclude high wear items, maintenance items, and attachments.

IMPORTANT: Contract requests must be submitted electronically for proper registration by all selling dealers.

*Details on this are available in the Program Administration section.

To electronically register all PowerGard Protection contracts, go to the home page at: http://dlrdoc.deere.com/powergard/protection/home/home.html Via Pathways, and enter the contracts in the “Purchase Contract” link on the left hand side navigation area. By simply entering a valid equipment PIN and answering some basic questions, you can enter all sold contracts.

PowerGard Protection is only available on equipment with working engine hour meters.

http://dlrdoc.deere.com/powergard/protection/home/home.html

2


WWHHYY MMAARRKKEETT TTHHEE PPOOWWEERRGGAARRDD PPRROOGGRRAAMMSS??

In today’s competitive commercial equipment market, customers are demanding more warranty coverage, guaranteed or known total costs associated with equipment ownership, and quality parts and service support after the sale. The PowerGard Protection Plan extended warranty helps you compete in these areas of customer expectations in the following ways:

Total Cost of Ownership – PowerGard is a great way for your customers to

budget their total cost of ownership. With a one-time fee they can protect themselves from future repair bills for PowerGard covered components.

$0 Deductible – Your customers incur no deductible, which means little or no out of

pocket expenses on covered repairs when failures occur.

Flexible Coverage Terms to Fit Customer’s Needs – PowerGard offers

many time/hour options to meet the needs of your customers. To determine the time/hour options right for your customers, determine how long the customer plans to keep the equipment as well as the average annual operating hours they typically put on the machine.

Transferable Coverage with No Transfer Fees – When the covered unit is

sold, any remaining PowerGard coverage is transferred to the next owner with no transfer fees. The dealership only needs to enter a current owner delivery receipt to John Deere for proper record updating.

A $100 Transportation Allowance – PowerGard pays up to $100 for

transportation charges (as of Dec 1, 2014 and after) when the repair performed is covered under the plan during the PowerGard coverage period for all gator/utility vehicles, commercial mowing equipment, and Golf & Turf equipment.

Fast Electronic Claims Processing – Claims are submitted similar to basic

warranty claims. PowerGard reviews most claims within 1 business day of submission and are approved for electronic payment within 2 business days.

3


WWHHYY SSEELLLL TTHHEE PPOOWWEERRGGAARRDD PPRROOGGRRAAMMSS??

Increase Your Profit Margin on Each Unit Sold – Every time your

dealership sells a piece of eligible equipment, have the salesperson include the PowerGard Protection Fee (List) price. It helps protect your customer against future repair bills and increases your profit margin.

Get Ahead of Competitive Programs – PowerGard can put you ahead of

competitors who may or may not have extended warranty programs available for customers. The low cost of the additional protection offered by PowerGard and the additional peace of mind that comes with a longer warranty can be the difference in making the final sale.

Tie Customers to Your Dealership while Increasing Service Revenue

PowerGard allows your dealership to increase future service business (parts and labor) from each customer who purchases a plan.

PowerGard Protection contracts include the following benefits to you and your customer:

Only authorized John Deere dealers can service covered equipment under the Plan. PowerGard requires only Genuine John Deere parts to be used in all covered repairs. PowerGard pays full LIST on all covered parts under the program. Covered labor expenses are reimbursed based on published pricing guides and/or

dealership statistical averages.

Transfer All Risk with Extended Warranties to Deere & Company -

Avoid costs associated with dealership-backed extended warranties by selling the John Deere PowerGard Protection Plan contracts. PowerGard provides you profit margin potential with no risk.

Reduce Cost Sharing under Special Allowance Programs/Policies - Selling PowerGard reduces the need for special allowance payments made by your dealership or your customers. Customers who purchase contracts will not need special allowance considerations since coverage is already purchased on the equipment for a given length of time and operating hours.

1

PowerGard JD Commercial Equipment Manual DSEW088 (02 01 08) Commercial Mowing Promotional Tools

PPOOWWEERRGGAARRDD PPRROOGGRRAAMM PPAARRAAMMEETTEERRSS NNEEWW CCOOMMMMEERRCCIIAALL MMOOWWIINNGG EEQQUUIIPPMMEENNTT

Eligible Models for the Commercial Mowing Equipment program:

Commercial Commercial Z-Traks Wide Area Front Mowers Walk Behinds Quik Traks Mowers

F1145 WG32A* 647/647A Z710A 1600

F1420 WG36A* 657/657A Z720A 1600 Turbo

F1435 WG48A* 667/667A Z810A

F1445 F1545 F1565

WHPA32A* WH36A*

WHPA36A* WH48A*

WHPA48A* WH52A*

* Eligible w/ hour meters only

Z820A Z830A Z840A Z850A Z860A 997ZTR Z910A Z915B Z920A Z920M Z920R Z925A Z925M Z930A Z930M Z930R Z950A Z950R Z960A Z970A

Only new John Deere Commercial Mowing equipment is eligible for the PowerGard Protection Plan program.

PowerGard Protection Plan Coverages – Commercial Mowing Equipment:

Engine and Powertrain (Limited) – (Covered components are specifically listed.)

Full Machine (Comprehensive) – (Only non-covered components are specifically listed.)

Both the Limited and Comprehensive Coverage Forms exclude all high wear, maintenance items, and attachments or after-market options as indicated below:

Not covered:

High wear & maintenance items not covered – Belts Hoses tires

belt-tensioning parts fittings dry brake assemblies

control cables fuses batteries

blades light bulbs or lamps seats

mower attaching parts oil or other fluids exhaust systems

mower gauge wheels filters paint or decals

spark plugs glow plugs

Parts or components covered under a separate manufacturer’s warranty – including tires, batteries or replacement parts.

Attachments or Aftermarket options – are not covered. (See sample contracts for any additional exclusions & limitations)

2


POWERGARD PROTECTION PLAN

John Deere Commercial Mowing Equipment – Engine & Powertrain (Limited) Coverage (Available for Non-residential Customers Only)

IMPORTANT NOTICE TO PURCHASER

The PowerGard Protection Plan only applies to covered engine and powertrain components of Covered Equipment, which is specifically described in the Schedule Of Coverage below 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*. (*With respect to purchasers in Canada, John Deere means John Deere Limited, 295 Hunter Road, P.O. Box 1000, Grimsby, Ontario, L3M 4H5. With respect to purchasers in the United States, except for the specific states identified below**, John Deere means John Deere Warranty Inc., One John Deere Place, Moline, Illinois 61265-8098.) **For purchasers in GA, MN, NC and NY, John Deere means Deere & Company, One John Deere Place, Moline, IL, 61265-8098. Read the PowerGard Protection Plan carefully. Your rights and remedies under the PowerGard Protection Plan are limited as indicated below. The Coverage Term selected below may be terminated prior to expiration under the provisions of Paragraph G. of the PowerGard Protection Plan. Where permitted by law, JOHN DEERE products carry no implied warranty of merchantability or fitness.

SCHEDULE OF COVERAGE

PURCHASER’S INFORMATION DEALERSHIP INFORMATION Name

Name

Address

Branch # Dealer #

Address

City, State, Zip or City, Province, Postal Code


COVERED EQUIPMENT INFORMATION

PLAN INFORMATION

Model #

Deductible $ 0

PowerGard Protection Fee $ ______________ Taxes & other costs if applicable $ _________________ Total Cost $ _________________

PIN #

Delivery Date ________ /________ /________ Basic Warranty Start Date ________ /_________/_______

COVERAGE SELECTED AND TERM

(Only the coverage indicated by “X” below applies to the Covered Equipment)

PowerGard Protection Plan – Commercial Mowing Equipment

Coverage Terms: Engine and Powertrain (Limited)

30 total months/ 750 total hours




36 total months/ 2000 total hours*

36 total months/ 2500 total hours***




48 total months/ 1500 total hours**

48 total months/ 1750 total hours****


*not available on Z-Traks/Quik Traks **available on Z-Traks/Quik Traks only ***not available on Z-Traks/Quik Traks and 700 series front mowers. **** Only available on commercial Z’s with 36 month basic warranty terms. Coverage will begin upon expiration of the John Deere Basic Warranty and end the earlier of the total time (from the Delivery Date indicated above) or total operating hours selected above. This has no effect on the John Deere Basic Warranty.

The John Deere Basic Warranty for most Commercial Mowing Equipment (except decks) is 24 Total Months / Unlimited Hours. Commercial Mowers with a 36 total month Basic Warranty are not eligible for 30 total month or 36 total month PPP Coverage Terms.

_______________________________________ ________________________________________ Customer Signature Date Authorized Signature Date

DSEW078 (11 01 11 )

3


POWERGARD PROTECTION PLAN – Commercial Mowing Equipment – (Limited)

A. COVERAGE: Subject to the terms and conditions of this PowerGard Protection Plan, we will repair or replace, at our option, Covered Components (as defined below) of Covered Equipment described in the Schedule of Coverage that are defective in material or original workmanship. For the PowerGard Protection Plan to apply, the repair or replacement of covered components must be performed by an authorized John Deere dealer, using genuine John Deere parts. Such repair or replacement will be made without charge to you except as described in paragraph I. DEDUCTIBLE.

The PowerGard Protection Plan is only available through John Deere dealerships. The PowerGard Protection Plan is not effective unless and until (1) a properly completed copy of this form is submitted to us either in paper or electronic format by the John Deere dealer, (2) the fee for the coverage has been paid, and (3) you receive written confirmation from John Deere.

B. COVERED COMPONENTS: The PowerGard Protection Plan only applies to covered engine and transmission components of Covered Equipment. Covered Components will include either factory installed or genuine John Deere replacements listed below as well as related components that perform a similar function:

1. Engine Components include cylinder block, cylinder head, rocker arm cover, oil pan, timing gear

cover, and any parts contained inside any one of these components. Covered engine components will also include mechanically driven fuel pump, injection pump and injectors, carburetor, flywheel, recoil starter, water pump, and intake and exhaust manifolds attached to the cylinder head.

2. Powertrain Components include hydraulic pumps, wheel motors, transaxle housing including hubs,

gear housing, hydrostatic transmission, universal joints, final drives, hydrostatic pump and motor, tandem pumps, valves, drive control sheaves, and any parts contained inside any one of these components. Covered powertrain components also include driveshaft and charge pump. For rear wheel assist units, covered components will also include the rear differential case, spindles and any parts contained inside any one of these components.

C. COMPONENTS NOT COVERED: Covered engine and transmission components shall not include:

1. Engine Components Not Covered include pipes, hoses and fittings, (such as but not limited to oil lines, injector pump lines, and air intake hoses and clamps), thermostat, engine oil filter, oil coolers, alternators and starters, spark plugs, glow plugs, ignition coil and stator, charging circuit components, fan or accessory drive belts, and accessory mounting brackets.

2. Powertrain Components Not Covered include belts, and belt tensioning components (such as but

not limited to springs, linkages, and idler pulleys), hoses, fittings, filters, linkages, wheels, tires, dry brake assemblies, electric PTO clutch, and components mounted to but not functionally part of the drivetrain, including but not limited to mounting brackets and suspension components such as shock absorbers, struts and springs.

D. TRANSPORTATION ALLOWANCE: We will pay for transportation charges assessed to you by the

servicing dealership, subject to a maximum of $100 per dealership repair visit, if the following conditions are met:

1. The repair performed by the dealer is a covered repair during the PowerGard coverage period, and 2. At least one covered repair event exceeds the deductible as described in paragraph I. DEDUCTIBLE.

E. COVERAGE LIMITATIONS:

1. The following are not included in and not covered by the PowerGard Protection Plan unless required to be covered by law: (a) Overtime labor charged in excess of the dealer’s normal labor rate; (b) Charges for storage of the Covered Equipment; (c) Depreciation, damage or failure caused by normal wear, lack of reasonable and proper maintenance, failure to follow operating instructions, misuse, or lack of proper protection during storage; (d) Loss or damage due to theft, vandalism or riot, the elements, fire, explosion, chemicals or salt, or collision or other accidents; (e) Normal maintenance and replacement of maintenance items, wear items, or consumables; and (f) Any defect in a non-covered component or damage to or failure of a Covered Component caused by a defect in a non-covered component.

DSEW078 (11 01 11)

4


POWERGARD PROTECTION PLAN – Commercial Mowing Equipment – (Limited)

2. The following are not included in and are not covered by the PowerGard Protection Plan: (a) Failures covered under any other warranty, product improvement program or product recall, other service agreement, or insurance; (b) Failures occurring while Covered Equipment is being used for any illegal purpose; (c) Costs incurred for discretionary retrofitting of current design components on older Covered Equipment or reconditioning of Covered Equipment or its components; (d) Expenses associated with any repair required or provided for by any regulation or order of a court or regulatory agency, or by consent decree or settlement; (e) Damage to other property or injury to any person; (f) Any indirect or consequential damage or injuries, including but not limited to loss of crops or profits, rental charges for substitute equipment, or other loss of income, or loss of use; (g) Failure of Covered Equipment to meet any federal, state, provincial, or local emission requirements unless this failure is the result of the failure of a Covered Component; and (h) The cost of cleanup or damages for any liability resulting from the escape, release, or discharge of any pollutants or waste.

F. WHEN COVERAGE APPLIES: The PowerGard Protection Plan will apply during the Coverage Term indicated in the Schedule of Coverage for the coverage selected unless one of the events described in paragraph G. below occurs, in which case, plan coverage will terminate immediately.

G. TERMINATION OF COVERAGE: The PowerGard Protection Plan will terminate immediately when any of the following occur: (1) The time or engine hour coverage option indicated in the Schedule of Coverage has expired; (2) The Covered Equipment’s engine hour meter stops working or has been tampered with, or is otherwise rendered inaccurate or inoperative (we may waive this provision, in writing, upon repair or replacement of the engine hour meter if actual hours can be verified); (3) The Covered Equipment is modified or altered in ways not approved by us or not in accordance or compliance with John Deere factory specifications; (4) Service or repair, other than normal maintenance and/or replacement of service items, if performed by someone other than an authorized John Deere dealer or approved repair facility; or (5) The Covered Equipment is moved to a location outside the United States or Canada.

H. MAXIMUM RECOVERY: Our cumulative liability during the Coverage Term for covered repairs shall not exceed the manufacturer’s suggested list price of the Covered Equipment excluding any transportation charges, license fees, taxes, the cost of the PowerGard Protection Plan, the cost of options or attachments not covered by the PowerGard Protection Plan, and insurance premiums.

I. DEDUCTIBLE: For each covered repair event under the PowerGard Protection Plan, you must first pay the Deductible, indicated in the Schedule of Coverage for the parts and labor charges for that repair. Once a deductible has been paid for a covered repair event, subsequent work, performed under the PowerGard Protection Plan, required due to failure of the original repair, will not be subject to additional deductibles. A covered repair event will include all work required due to a single failure or breakdown.

J. MAINTENANCE OF COVERED EQUIPMENT AND RECORDS: You must properly maintain Covered Equipment and, at your expense, perform scheduled maintenance in accordance with the Operators Manual for the Covered Equipment. You must maintain records of all scheduled maintenance, repair, or service work completed and must present these records to us, upon our request, to verify compliance with this condition.

K. ASSIGNMENT: The PowerGard Protection Plan will apply only to the Covered Equipment indicated in the Schedule of Coverage of the PowerGard Protection Plan. If you sell the Covered Equipment to a new owner, any remaining coverage under the PowerGard Protection Plan will apply to the subsequent purchaser. You must request an authorized John Deere Dealer to forward a Current Owner Delivery Receipt to us to document such a transfer.

L. COSTS: The cost of the PowerGard Protection Plan must be fully paid at the time of purchase and refunds will not be made for any reason. If you sell the Covered Equipment prior to the expiration of the PowerGard Protection Plan, any remaining coverage, subject to Condition K. above, can be transferred to the new owner at no additional cost or transfer fees.

M. CHANGES: This PowerGard Protection Plan contains all of your rights and responsibilities for coverage to apply. No John Deere dealer or any other person may amend or change the terms, conditions, or limitations of this PowerGard Protection Plan in any way.

DSEW078 (11 01 11)

5


POWERGARD PROTECTION PLAN

John Deere Commercial Mowing Equipment – Comprehensive Coverage (Available for Non-residential Customers Only)


The PowerGard Protection Plan only applies to covered components of Covered Equipment, which is specifically described in the Schedule Of Coverage below 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*. (*With respect to purchasers in Canada, John Deere means John Deere Limited, 295 Hunter Road, P.O. Box 1000, Grimsby, Ontario, L3M 4H5. With respect to purchasers in the United States, except for the specific states identified below**, John Deere means John Deere Warranty Inc., One John Deere Place, Moline, Illinois 61265-8098.) **For purchasers in GA, MN, NC and NY, John Deere means Deere & Company, One John Deere Place, Moline, IL, 61265-8098.

Read the PowerGard Protection Plan carefully. Your rights and remedies under the PowerGard Protection Plan are limited as indicated below. The Coverage Term selected below may be terminated prior to expiration under the provisions of Paragraph G. of the PowerGard Protection Plan. Where permitted by law, JOHN DEERE products carry no implied warranty of merchantability or fitness.

SCHEDULE OF COVERAGE

PURCHASER’S INFORMATION DEALERSHIP INFORMATION Name

Name

Address

Branch # Dealer #

Address



COVERED EQUIPMENT INFORMATION

PLAN INFORMATION

Model #

Deductible $ 0

PowerGard Protection Fee $ ______________ Taxes & other costs if applicable $ _________________ Total Cost $ _________________

PIN #

Delivery Date ________ /________ /________ Basic Warranty Start Date ________ /_________/_______

COVERAGE SELECTED AND TERM

(Only the coverage indicated by “X” below applies to the Covered Equipment)

PowerGard Protection Plan – Commercial Mowing Equipment

Coverage Terms: Full Machine (Comprehensive)


30 total months/1250 total hours


36 total months/1500 total hours


36 total months/ 2500 total hours***




48 total months/ 1500 total hours**

48 total months/ 1750 total hours****

48 total months/ 2250 total hours* *Not available on Z-Traks/Quik Traks **Available on Z-Traks/Quik Traks only ***Not available on Z-Traks/Quik Traks and 700 series mowers. **** Only available on commercial Z’s with 36 month basic warranty terms. Coverage will begin upon expiration of the John Deere Basic Warranty and end the earlier of the total time (from the Delivery Date indicated above) or total operating hours selected above. This has no effect on the John Deere Basic Warranty.

The John Deere Basic Warranty for most Commercial Mowing Equipment (except decks) is 24 Total Months / Unlimited Hours. Commercial Mowers with a 36 total month Basic Warranty are not eligible for 30 total month or 36 total month PPP Coverage Terms.

_______________________________________ ________________________________________ Customer Signature Date Authorized Signature Date

DSEW079 (11 01 11)

6


POWERGARD PROTECTION PLAN – Commercial Mowing Equipment - (Comprehensive)

A. COVERAGE: Subject to the terms and conditions of this PowerGard Protection Plan, we will repair or

replace, at our option, Covered Components (as defined below) of Covered Equipment described in the Schedule of Coverage that are defective in material or original workmanship. For the PowerGard Protection Plan to apply, the repair or replacement of covered components must be performed by an authorized John Deere dealer, using genuine John Deere parts. Such repair or replacement will be made without charge to you except as described in paragraph I. DEDUCTIBLE.

The PowerGard Protection Plan is only available through John Deere dealerships. The PowerGard Protection Plan is not effective unless and until (1) a properly completed copy of this form is submitted to us either in paper or electronic format by the John Deere dealer, (2) the fee for the coverage has been paid, and (3) you receive written confirmation from John Deere.

B. COVERED COMPONENTS: The PowerGard Protection Plan applies to all parts and components of the

Covered Equipment except those parts and components which are excluded below in Section C. C. COMPONENTS NOT COVERED: Covered Components shall not include: (1) High wear or maintenance

items such as but not limited to belts, belt-tensioning parts, blades, mower attaching hardware, mower gauge wheels and rollers, control cables, hoses, fittings, fuses, spark plugs, glow plugs, light bulbs or lamps, oil or other fluids, filters, tires, dry brake assemblies, batteries, seats, exhaust systems, paint, or decals, starters;(2) Parts or components covered under a manufacturer’s warranty including tires, batteries, or replacement parts; and (3) Attachments, other than mower decks originally purchased with the unit carrying a 24 month Deere Basic Warranty.

D. TRANSPORTATION ALLOWANCE: We will pay for transportation charges assessed to you by the

servicing dealership, subject to a maximum of $100 per dealership repair visit, if the following conditions are met:

1. The repair performed by the dealer is a covered repair during the PowerGard coverage period, and 2. At least one covered repair event exceeds the deductible as described in paragraph I. DEDUCTIBLE.

E. COVERAGE LIMITATIONS:

1. The following are not included in and not covered by the PowerGard Protection Plan unless required to be covered by law: (a) Overtime labor charged in excess of the dealer’s normal labor rate; (b) Charges for storage of the Covered Equipment; (c) Depreciation, damage or failure caused by normal wear, lack of reasonable and proper maintenance, failure to follow operating instructions, misuse, or lack of proper protection during storage; (d) Loss or damage due to theft, vandalism or riot, the elements, fire, explosion, chemicals or salt, or collision or other accidents; (e) Normal maintenance and replacement of maintenance items, wear items, or consumables; and (f) Any defect in a noncovered component or damage to or failure of a Covered Component caused by a defect in a noncovered component.

2. The following are not included in and are not covered by the PowerGard Protection Plan: (a) Failures covered under any other warranty, product improvement program or product recall, other service agreement, or insurance; (b) Failures occurring while Covered Equipment is being used for any illegal purpose; (c) Costs incurred for discretionary retrofitting of current design components on older Covered Equipment or reconditioning of Covered Equipment or its components; (d) Expenses associated with any repair required or provided for by any regulation or order of a court or regulatory agency, or by consent decree or settlement; (e) Damage to other property or injury to any person; (f) Any indirect or consequential damage or injuries, including but not limited to loss of crops or profits, rental charges for substitute equipment, or other loss of income, or loss of use; (g) Failure of Covered Equipment to meet any federal, state, provincial, or local emission requirements unless this failure is the result of the failure of a Covered Component; and (h) The cost of cleanup or damages for any liability resulting from the escape, release, or discharge of any pollutants or waste.

DSEW079 (11 01 11)

7


POWERGARD PROTECTION PLAN – Commercial Mowing Equipment – (Comprehensive)

F. WHEN COVERAGE APPLIES: The PowerGard Protection Plan will apply during the Coverage Term indicated in the Schedule of Coverage for the coverage selected unless one of the events described in paragraph G. below occurs, in which case, plan coverage will terminate immediately.

G. TERMINATION OF COVERAGE: The PowerGard Protection Plan will terminate immediately when any of the following occur: (1) The time or engine hour coverage option indicated in the Schedule of Coverage has expired; (2) The Covered Equipment’s engine hour meter stops working or has been tampered with, or is otherwise rendered inaccurate or inoperative (we may waive this provision, in writing, upon repair or replacement of the engine hour meter if actual hours can be verified); (3) The Covered Equipment is modified or altered in ways not approved by us or not in accordance or compliance with John Deere factory specifications; (4) Service or repair, other than normal maintenance and/or replacement of service items, if performed by someone other than an authorized John Deere dealer or approved repair facility; or (5) The Covered Equipment is moved to a location outside the United States or Canada.

H. MAXIMUM RECOVERY: Our cumulative liability during the Coverage Term for covered repairs shall not exceed the manufacturer’s suggested list price of the Covered Equipment excluding any transportation charges, license fees, taxes, the cost of the PowerGard Protection Plan, the cost of options or attachments not covered by the PowerGard Protection Plan, and insurance premiums.

I. DEDUCTIBLE: For each covered repair event under the PowerGard Protection Plan, you must first pay the Deductible, indicated in the Schedule of Coverage for the parts and labor charges for that repair. Once a deductible has been paid for a covered repair event, subsequent work, performed under the PowerGard Protection Plan, required due to failure of the original repair, will not be subject to additional deductibles. A covered repair event will include all work required due to a single failure or breakdown.

J. MAINTENANCE OF COVERED EQUIPMENT AND RECORDS: You must properly maintain Covered Equipment and, at your expense, perform scheduled maintenance in accordance with the Operators Manual for the Covered Equipment. You must maintain records of all scheduled maintenance, repair, or service work completed and must present these records to us, upon our request, to verify compliance with this condition.

K. ASSIGNMENT: The PowerGard Protection Plan will apply only to the Covered Equipment indicated in the Schedule of Coverage of the PowerGard Protection Plan. If you sell the Covered Equipment to a new owner, any remaining coverage under the PowerGard Protection Plan will apply to the subsequent purchaser. You must request an authorized John Deere Dealer to forward a Current Owner Delivery Receipt to us to document such a transfer.

L. COSTS: The cost of the PowerGard Protection Plan must be fully paid at the time of purchase and refunds will not be made for any reason. If you sell the Covered Equipment prior to the expiration of the PowerGard Protection Plan, any remaining coverage, subject to Condition K. above, can be transferred to the new owner at no additional cost or transfer fees.

M. CHANGES: This PowerGard Protection Plan contains all of your rights and responsibilities for coverage to apply. No John Deere dealer or any other person may amend or change the terms, conditions, or limitations of this PowerGard Protection Plan in any way.

DSEW079 (11 01 11)

8


PPOOWWEERRGGAARRDD PPUURRCCHHAASSIINNGG PPAARRAAMMEETTEERRSS

NNEEWW CCOOMMMMEERRCCIIAALL MMOOWWIINNGG EEQQUUIIPPMMEENNTT

John Deere Basic Warranty:

Most Commercial Mowers have a standard Basic Warranty of 24 months / unlimited hours on all units sold on or after November 1, 2000.

Some Commercial Mowers have a standard Basic Warranty of 36 months / unlimited hours on units sold on/after November 1, 2011. Those models/series will have limited Coverage Term choices for PowerGard Protection extended warranty terms.

PowerGard Protection Plan:

The PowerGard Protection Plan is available for new John Deere Commercial Mowing Equipment. To be eligible for purchasing a PowerGard Protection Plan contract, the Commercial Mowers must be within the first year of the John Deere Basic Warranty and have less than 300 total hours.

PowerGard Purchasing Eligibility Chart – Commercial Mowers

“Grace Period”

“Delayed Purchase Period”

2nd Year

Lowest Price Possible

50% Surcharge Applies

PowerGard Not

Available

“Grace Period”: PowerGard Protection Plan can be purchased any time from the Deere

Basic Warranty start date and up to 120 days or 100 hours (which ever occurs first) to get the lowest price.

“Delayed Purchase Period”: PowerGard Protection Plan can be purchased after 120 days or 100 hours and up to 12 months or 300 hours with a 50% surcharge applied to the pricing.

Time/Hour Options Available All options listed include the underlying John Deere Basic warranty for Commercial Mowers.

Total Months 30 30 36 36 36* 36*** 42 42 48 48** 48**** 48*

Total Hours 750 1250 1000 1500 2000 2500 1000 1750 1200 1500 1750 2250

*Not available on Z-Traks and Quik Traks **Available on Z-Traks and Quik Traks only *** Not available on Z-Traks, Quik Traks, 700 Series Front Mowers **** Only available on Z700’s, Z800’s, and Z900’s that get a 36 month Basic Warranty Term. NOTE: Z700 & Z900 Series Commercial Mowers with the 36 month Basic Warranty are not eligible for PPP Plan Terms of 30 total months or 36 total months.

Basic Warranty Start Date

120 Days / 100 Hours 12 Months / 300 Hours

9


PPOOWWEERRGGAARRDD PPRRIICCIINNGG FFOORR CCOOMMMMEERRCCIIAALL MMOOWWEERRSS

Pricing for all options and coverage forms (Limited – Engine and Powertrain, and Comprehensive – Full Machine) are listed in the tables below.

All coverage terms have a $0 customer deductible.

Engine & Powertrain (Limited) Coverage - Dealer Base Costs-US$

Total Months* Total Hours*

30 750

30 1250

36 1000

36 1500

36 2000

36 2500

42 1000

42 1750

48 1200

48 2250

Models

F700 Front Mowers

74 119 136 222 353 N/A 171 330 227 570

900, 1145, 1400 Front Mowers

88

144 171 274 425 603 212 411 288 686

Commercial Walk Behind Mowers

56 90 90 157 290 533 109 238 143 477

1600 Wide Area Mower

189 321 364 583 902 1,282 450 873 612 1,457


**30 750

**30 1250

**36 1000

**36 1500

42 42 1000 1750

48 1200

48 1500

48*** 1750

Models Z- Traks & Quik Traks ** not available for Z700/Z800/Z900s *** Only available on Z700/Z800/Z900s

106 183 213 353 266 542 363 484

650

If coverage is purchased during the Delayed purchase period, multiply applicable rate above by 1.5.

**All coverage terms (shown above) include the John Deere Basic Warranty of 24 months / unlimited hours.

*** Z700/Z800/Z900 Mowers come with a 36 month basic warranty, so 42 month and 48 month PPP Plan Terms are offered.

NOTE: Prices effective 02/15/11

10




Engine & Powertrain (Limited) Coverage - Protection Fee (LIST)-US$


30 750

30 1250

36 1000

36 1500

36 2000

36 2500

42 1000

42 1750

48 1200

48 2250

Models

F700 Front Mowers

93 149 170 278 441 N/A 214 413 284 713

900, 1145, 1400 Front Mowers

110

180 214 343 531 754 265 514 360 858


70 113 113 196 363 666 136 298 179 596


236 401 455 729 1,128 1,603 563 1,091 765 1,821


**30 750

**30 1250

**36 1000

**36 1500

42 42 1000 1750

48 1200

48 1500

48*** 1750


133 229 266 441 333 678 454 605

813





11




Full Machine (Comprehensive) Coverage – Dealer Base Costs-US$


30 750

30 1250

36 1000

36 1500

36 2000

36 2500

42 1000

42 1750

48 1200

48 2250

Models

F700 Front Mowers

155 270 335 516 786 N/A 413 774 555 1,290

1400 Front Mowers

172

327 396 635 1,049 1,533 482 997 672 1,722


63 101 106 176 325 585 122 270 164 532


366 695 841 1,353 2,231 3,256 1,024 2,122 1,427 3,658


**30 750

**30 1250

**36 1000

**36 1500

42 42 1000 1750

48 1200

48 1500

48*** 1750

Models

Z- Traks & Quik Traks ** not available for Z700/Z800/Z900s *** Only available on Z700/Z800/Z900s

257 477 586 966 734 1,525 1,022 1,362

1,830





12




Full Machine (Comprehensive) Coverage – Protection Fee (LIST)-US$


30 750

30 1250

36 1000

36 1500

36 2000

36 2500

42 1000

42 1750

48 1200

48 2250

Models

F700 Front Mowers

194 338 419 645 983 N/A 516 968 694 1,613

900 Series, 1400 Front Mowers

215 409 495 794 1,311 1,916 603 1,246 840 2,153


79 126 133 220 406 731 153 338 205 665


458 869 1,051 1,691 2,789 4,070 1,280 2,653 1,784 4,573


**30 750

**30 1250

**36 1000

**36 1500

42 42 1000 1750

48 1200

48 1500

48*** 1750


321 596 733 1,208 918 1,906 1,278 1,703

2,288





1

PowerGard JD Commercial Equipment Manual DSEW088 (02 01 08) Program Administration Promotional Tools

HHOOWW TTOO MMAARRKKEETT PPOOWWEERRGGAARRDD PPRROOGGRRAAMMSS

Offer Up Front. Always add PowerGard into the deal. Your chances of selling

a contract are much greater at the time of the sale. It also provides the customer with the lowest possible price.

Include Costs in Customer’s Payments. Whenever possible, the final

price should be quoted including PowerGard costs. It is more difficult to sell additional products after the customer has agreed to certain payments.

Display Costs To Show Affordability. When presenting the cost of the

Protection Plan, break down the cost to a measure the customer can best relate such as cost per month or hour of coverage.

Use Visual Aids in Your Sales Process. Since you are offering an

intangible product, it is important to use the brochures and quotes from printed pages or the PowerGard web site located through Pathways. Failure to use visual aids can reduce sales by as much as 50%. (See the PowerGard Promotional Tools for part numbers)

Indicate if the plan was Accepted or Rejected on the Purchase Order. Make sure to check either the “yes” or “no” box on the customer’s

purchase order. This assures that PowerGard Protection Plan will get offered at every sale, plus, you will have documentation that the customer was presented with the product and made a choice.

Utilize the PowerGard Protection Plan Rejection Form. If a customer

declines to purchase the plan, use the Rejection Form. This assures your dealership that you will not absorb repair costs on equipment that were not sold with a contract. (See the following page. Use it to make copies.)

Paid by PowerGard Indicator. For customers who have purchased

PowerGard fill out repair orders showing the work that was completed and list the associated price for each repair. Then, write or stamp “PAID by PowerGard” on it so they can SEE that their purchase was a good decision. You could also use these types of repair orders to show future customers the value of PowerGard.

2


PPOOWWEERRGGAARRDD PPRROOTTEECCTTIIOONN PPLLAANN CCUUSSTTOOMMEERR RREEJJEECCTTIIOONN FFOORRMM

Customer Name: _______________________________________________________ Customer Address:______________________________________________________ Equipment Model: ______________________ Pin#____________________________ Date of Equipment Purchase: ___/___/___ Date PowerGard Rejected: ___/___/___ I have been offered the coverage options available through the PowerGard Protection Plan on the equipment listed above. I understand the general terms and conditions of the 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 time or operating hours provided by the original John Deere basic warranty. _____________________________ ____________________________________ Customer Signature Dealership Representative Signature

3


HHOOWW TTOO PPRROOCCEESSSS AA PPOOWWEERRGGAARRDD CCOONNTTRRAACCTT

All PowerGard Protection Plan contracts must be entered on John Deere Pathways when they are sold to be valid. Verbal quotes and handwritten schedules of coverage will not be honored unless entered on Pathways within program parameters.

Any contract, which is not entered on Pathways, will be the selling dealer’s responsibility.

To purchase a PowerGard Protection Plan contract, go to the SALES or SERVICE section of Pathways, then to the “Marketing” section to find the PowerGard Home Page. Perform the following steps:

Select the Purchase Contract link on the PowerGard Protection Home Page (left nav.).

Enter the PIN number of the eligible machine.

Enter information and answer basic questions on customer, dealership number hour-meter reading, contract purchase date, etc.

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

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 click the Next button.

Adobe Acrobat opens, there is a print icon on the toolbar to print a copy of the schedule of coverage purchased. Close (X) out at the right hand corner of the document. You should receive “Purchase Was Successful”. OK to complete or close to purchase.

Remember any contract, which is not submitted via the Purchase Contract link on the PowerGard Protection Home Page, is not a valid contract with John Deere and will be the dealer’s responsibility for future covered repairs under the plan.

If you need assistance, please contact the PowerGard Service Processing Center at 1-866-866-1212

4


PPOOWWEERRGGAARRDD CCEERRTTIIFFIICCAATTEE CCAARRDDSS

The certificate card below will be issued to the customer, along with the PowerGard Protection Plan terms, within approximately 30 days of contract processing.

[ Front of card ]

[ Back 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 labor (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]

JD Value Lease ____ Yes ____ No

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.


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*. (* With respect to purchasers in Canada, John Deere means John Deere Limited, 295 Hunter Road, P.O. Box 1000, Grimsby, Ontario, L3M 4H5. With respect to purchasers in the United States, except for the specific states identified below**, John Deere means John Deere Warranty Inc, One John Deere Place, Moline, Illinois, 61265-8098.) Read the PowerGard Protection Plan carefully. Your rights and remedies under the PowerGard Protection Plan are limited as indicated below. The coverage term selected below may be terminated prior to expiration under the provisions of Paragraph F. of the PowerGard Protection Plan. Where permitted by law, JOHN DEERE products carry no implied warranty of merchantability or fitness. The PowerGard Protection Plan is not insurance. ** For purchasers in Georgia, Minnesota, New York and North Carolina, John Deere means Deere & Company, One John Deere Place, Moline, Illinois, 61265-8098. 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 1-866-993-3373.

5


HHOOWW TTOO SSUUBBMMIITT AA PPOOWWEERRGGAARRDD CCLLAAIIMM

PowerGard coverage begins upon the expiration of the John Deere Basic Warranty and ends upon reaching the predetermined time or hour limitations chosen, whichever occurs first. Any authorized John Deere dealer can perform repairs and submit claims under PowerGard. Follow these steps to submit a PowerGard claim:

1. Gather Information For Gator/Utility vehicles, commercial mowing equipment and Golf & Turf equipment, there is a $0 deductible, so separate work orders are not required when multiple failures occur.

2. Submit Claims All PowerGard claims for repairs must be electronically submitted in the JD Warranty System and should be submitted within 15 days of failure. Refer to the PowerGard contract for complete terms and details of the plan.

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

The “PowerGard Protection Claim Extension” request form must be submitted to the PowerGard Service Processing center for approval in these submission delays.

3. Processing of Claims All claims are reviewed within 1 business day of submission and most are settled within 2 business days. (In some cases it may take longer than 2 business days to settle some claims, due to external factors, or availability of information.)

4. Reimbursement Once the claim is approved, the credit issued to the dealer electronically will be the approved

amount less any applicable deductible.

Dealers will be credited for parts costs at John Deere’s list price.

Labor will be reimbursed at their retail labor rate times the reasonable number of hours established for the repair. The maximum cumulative reimbursement on any Covered Equipment shall not exceed 100% of the manufacturer’s suggested list price of the covered equipment excluding any license fees, taxes, and insurance premiums. This maximum applies per PowerGard contract purchased.

A maximum of $100 is allowable for transportation reimbursement per covered repair event. This must be requested by the dealer on all covered claims under “other credits” for reimbursement.

Note: ALL POWERGARD PROTECTION CONTRACTS WRITTEN ON/AFTER 9/1/07 WILL PROVIDE FOR REASONABLE DIAGNOSTIC TIME REIMBURSEMENT TO THE DEALERS.

If any outside labor and/or materials is 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.

6


PPOOWWEERRGGAARRDD PPRROOTTEECCTTIIOONN PPLLAANN

DDEEAALLEERR AACCKKNNOOWWLLEEDDGGEEMMEENNTT

Fax: 309-749-0789

_____________________________________________________________________________ Marketing Unit #___________________ Dealer #___________________________

(if more than one, list below)

I, ___________________________ of _______________________________________ (Authorized 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)

Extended Warranty Programs for Commercial Mowers...mower attaching parts oil or other fluids exhaust...

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