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Terms and Conditions - Periodic Service Agreement Summary

1. BASIS OF AGREEMENT

This Agreement is based on Periodic Services being carried out by Hitachi Construction Machinery (Australia) Pty Ltd (HCA) as per the Operation and Maintenance Planner for the contracted machine model and covers only the machine detailed on the attached Service Agreement Summary.

2. TERM OF AGREEMENT

This contract is completed when the machine has reached the agreed engine hours or date of termination whichever comes first on the attached service agreement summary.

3. CUSTOMER RESPONSIBILITIES

The Customer is responsible for the 10 hour, 50 hour, 100 hour items as shown in the Customer's copy of the Operation and Maintenance Manual. If the equipment manufacturer requires an Initial 100, 250 or 500 hour service in the machines operation and maintenance manual this service is covered by HCA.

4. PERIODIC SERVICE NOTIFICATION

The Customer is to notify HCA a min of 50 hours before periodic services are due and details of any known problems/faults. The machines current operating hours and serial number must be quoted when requesting services.

5. REPAIRS & MAINTENANCE OTHER THAN SCHEDULED PERIODIC SERVICES

This agreement does not include repairs and maintenance. Should the machine require repairs and maintenance other than the scheduled periodic services in the machines operation manual then these will be completed once HCA has been provided with the appropriate approval or order number to carry out the required repairs or maintenance. On completion of the additional repair work the Customer will be billed the HCA standard local rate.

6. OVERTIME

All Periodic services are to be performed during a normal HCA working hour day, Monday to Friday. Where periodic services are incurred outside the normal HCA working hour day or either on a Saturday or Sunday, at the Customer’s request, then the difference between the agreement rate and the standard local overtime rate will be billed as additional costs to the customer.

7. MACHINE LOCATION

If this agreement includes Travel Costs then the agreement is based on Periodic services being performed within the specified Travel Distance stated in the Service Agreement Summary. Should the machine be moved outside the travel distance stated in the agreement then the additional travel expenses will be billed as an additional charge to the Customer. If travel costs are not included at the commencement of this agreement, then all travel expenses will be charged as an additional cost to the Customer.

8. CLEANING

The Customer is to ensure that the machine is thoroughly cleaned prior to servicing, so that all work required can be performed efficiently and effectively, without risk to the serviceman. Should the machine require cleaning by HCA authorised personnel to enable the servicing to be carried out, then the costs incurred in cleaning the machine will be billed to the Customer as an additional cost. Customer also needs to notify HCA authorised personnel of any hazardous substances or environment that the machine has been exposed to.

9. MACHINE AVAILABILITY FOR SERVICE

If a Periodic service is arranged by the Customer where HCA authorised personnel arrive to carry out the arranged service and find the machine is not available for them to carry out the scheduled serving, then any standby/waiting time incurred by the HCA authorised personnel will be charged as an additional cost to the Customer at the HCA standard local rate, if the service have been booked outside the normal HCA working hour day or either on a Saturday or Sunday ,waiting time incurred by the HCA authorised personnel will be charged as an additional cost at overtime rate. If a Periodic service is arranged by the Customer where HCA authorised personnel arrive to carry out the arranged service and find the machine is totally unavailable for them to carry out the scheduled serving then any travel cost incurred by the HCA authorised personnel will be charged as an additional cost to the Customer at the HCA standard local rate, if the service have been booked outside the normal HCA working hour day or either on a Saturday or Sunday ,travel cost incurred by the HCA authorised personnel will be charged as an additional cost at overtime rate.

10. LUBRICANTS

If lubricants are stated as being included in the attached Service Agreement Summary then all fluids and lubricants required for the Periodic services in this agreement shall be supplied by HCA. Where lubricants are not included in this agreement and HCA is requested to supply lubricants to complete a periodic service then all lubricant costs will be charged as an additional cost to the Customer. Only approved Fluids and Lubricants will be used at all times.

11. OIL TOP UP

The Customer is responsible for keeping records of the amount of top up oil added to each compartment between oil changes so the amount can be recorded on the oil Sample Sheet for accurate oil analysis. Top up oils must be the same grade and brand as used in the periodic services. A limited amount of engine top up oil is included in this agreement and will be supplied by HCA on request but top up oils for all other compartments are not included and need to be supplied by the Customer as and when required.

12. OIL SAMPLIING

Oil Sampling will be carried out on the machine covered by this agreement at each service interval and the cost of this is included in the agreement pricing, this excludes hydraulic and engine oil sampling in any machine equipped with ConSite Oil monitoring System.

13. REPORTS

A copy of the serviceman's Service Report will be provided to the customer at completion of each service.

14. MACHINE USAGE REPORTING

If this agreements payment method is Hourly Rate (see Option 15-3 below) then on the 25th day of each month the Customer must Fax, Email or communicate in writing the hour meter reading of the machine covered by this agreement as recorded on the 24th day of the current month, to the local HCA Service Manager. For equipment fitted with Satellite transmitters the Hour meter reading transmitted at midnight on the 24th day of each month will be used to calculate the monthly invoice value.

15. PAYMENT METHODS

Periodic Service agreements have 4 payment options, one of which will have been specified in the Service Agreement Summary page of this agreement as the Billing Method. These are (1) Upfront Lump Sum Payment (2) Monthly Lump Sum Payment (3) Hourly Rate and (4) When Services are Performed.

All Periodic Servicing prices are fixed for the term of this agreement. Once this agreement is started the payment option selected cannot be changed.

Option 1 –Upfront Lump Sum Payment

Invoice value will be based on total charges calculated to complete this agreement, at the time of machine sale,

Option 2 – Monthly Lump Sum Payment

Invoice value will be based on total monthly charges calculated to complete this agreement, and invoiced monthly (as defined in item 15 above)

Option 3 – Hourly Rate

Invoice value will be based on the Customer’s reported hour meter usage of the machine (as defined in item 15 above) for the previous month multiplied by the rate per hour of this agreement.

Option 4 – When Services are Performed (Capped Service Pricing)

Invoice value will be based on the cost of each Periodic Service interval as detailed in the attached Service Agreement Summary, as and when they occur. It should be noted that on occasions some service intervals will occur concurrently and in this instance the invoice value will be based on the sum of the concurrent services being performed.

16. GST

All Values indicated in this contract are exclusive of GST. GST will be added to the agreement charges at the time of invoicing.

17. SERVICE PERSONNEL

All services included in this agreement will be performed by trained / authorised HCA service personnel.

18. PARTS

Only genuine or OEM approved parts will be used for the Periodic servicing covered by this agreement.

date 17/01/20

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