19.03.

04 1 (6)

General Conditions of Sale

1. DEFINITIONS 9. INTELLECTUAL PROPERTY 17. STORAGE
2. DELIVERY TERMS ETC. 10. SOFTWARE AND COMPUTER 18. CHANGES IN DESIGN
3. PRODUCT INFORMATION CONTROL(LED) SYSTEMS 19. RETENTION OF TITLE AND RISK OF LOSS
4. VALIDITY OF OFFERS AND ORDERS 11. PROPRIETARY INFORMATION 20. LIMITATION OF SANDVIK TAMROCK'S
5. CANCELLATION OF ORDERS OR RETURN 12. LOCAL LAWS AND REGULATIONS LIABILITY
OF PRODUCTS 13. ADDITIONAL CHARGES 21. FORCE MAJEURE
6. DELIVERY AND INSPECTION. DELAY 14. PACKING 22. CONSEQUENTIAL LOSSES
7. PRICES AND PAYMENT 15. PERFORMANCE AND TESTING 23. ARBITRATION AND APPLICABLE LAW
8. WARRANTY 16. SAMPLES
and services expressly specified in the TAMROCK up to the time of cancellation
The General Conditions of Sale set Agreement and they must comply with all and all loss or damage by reason of
forth herein shall be applied to and such cancellation shall be reimbursed
govern all offers, orders and applicable import, export and Exchange
agreements for the sale of PRODUCTS (as Control regulations. For such purpose, by PURCHASER to SANDVIK TAMROCK
hereinafter defined), made, accepted or the PURCHASER shall notify the forthwith. SANDVIK TAMROCK reserves the
entered into by SANDVIK TAMROCK to or applicable regulations to SANDVIK right to charge PURCHASER for any costs
with any PURCHASER. TAMROCK before delivery of any PRODUCTS incurred due to suspension or deferment
so that SANDVIK TAMROCK can take the of an order.
The provisions of these Conditions are regulations into account when
severable and if any provision is held delivering the PRODUCTS and invoicing
to be invalid or unenforceable, it them in accordance with clause 7 below. 6.DELIVERY AND INSPECTION
shall be severed and the remaining DELAY
provisions shall be enforced to the
fullest extent possible. 3.PRODUCT INFORMATION
The PURCHASER will be deemed to have
accepted the quantity of the PRODUCTS
Any headings are for convenience only All information and data contained in as being strictly in accordance with
and shall not affect the construction brochures, drawings, catalogues, price the Agreement:
of these Conditions. lists and other similar documents which
are either provided by SANDVIK TAMROCK (a) if, upon the conclusion of the
By placing an order with SANDVIK or are otherwise acquired by the Start-Up or upon taking into use of
TAMROCK or accepting an offer by PURCHASER and which relate to the the PRODUCTS, whichever comes
SANDVIK TAMROCK, the PURCHASER agrees PRODUCTS are for information purposes first, the PURCHASER does not
to these General Conditions of Sale as only, and are binding only to the notify SANDVIK TAMROCK in writing
set forth below: extent that the contents of any such of any shortage or deficiency; or
document are expressly incorporated in
writing in the Agreement.
1.DEFINITIONS (b) unless the PURCHASER has notified
SANDVIK TAMROCK of any deficiency
4.VALIDITY OF OFFERS AND or shortages within fourteen (14)
"SANDVIK TAMROCK" shall mean SANDVIK days of receipt.
TAMROCK Corp. and/or any of its ORDERS
operating subsidiaries. If PURCHASER fails to accept delivery
Any obligation or liability on SANDVIK at the delivery time he shall
"PRODUCTS" or "PRODUCT" shall mean all nevertheless pay any part of the
TAMROCK'S part is subject to the terms
products, equipment, goods and purchase price which becomes due on
of payment and all other obligations of
accessories sold by SANDVIK TAMROCK, delivery as if delivery had taken
the PURCHASER towards SANDVIK TAMROCK
including any manuals relating thereto. place.
under the Agreement being strictly
observed.
"PURCHASER" shall mean any purchaser of If delay in delivery is caused by any
PRODUCTS. of the circumstances mentioned in
Inclusion by the PURCHASER of any terms
inconsistent with or in addition to the clause 21 below or by act or omission
"Agreement" shall mean any agreement on the part of the PURCHASER including
terms and conditions set forth in these
for the sale of PRODUCTS, whether suspension due to late payment or
General Conditions of Sale in any offer
entered into by way of the PURCHASER's anticipated non-performance, the time
or order is not binding on SANDVIK
order and SANDVIK TAMROCK's acceptance for delivery shall be extended by a
TAMROCK but shall be regarded as a
thereof or any other method, including period which is reasonable having
counter-offer subject to the express
these General Conditions of Sale as an regard to all circumstances. This
and written acceptance by a person duly
integral part thereof. provision applies regardless of whether
authorised by SANDVIK TAMROCK.
the reason for delay occurs before or
"Start-Up" shall mean the first after the agreed time for delivery.
Unless otherwise stated herein, agreed
start-up of the PRODUCT, which shall be
in writing or previously withdrawn,
deemed to occur within thirty (30) days If there is a delay in delivery for a
every offer is open for acceptance for
of delivery of the PRODUCT, if not reason attributable to SANDVIK TAMROCK,
30 days from the date of submission to
otherwise agreed to in writing by a and if no suspension has been agreed
the PURCHASER. No order shall be
person duly authorised by SANDVIK upon between SANDVIK TAMROCK and
binding on SANDVIK TAMROCK unless it is
TAMROCK. PURCHASER on the basis of anticipated
confirmed on behalf of SANDVIK TAMROCK
in writing by a person duly authorised delay, the PURCHASER is entitled to
"System" or "Systems" shall mean all liquidated damages from the date on
by SANDVIK TAMROCK.
computer control/controlled systems and which delivery should have taken place.
thereto related software developed, The liquidated damages shall be payable
Any order or acceptance of any offer
owned and/or installed by SANDVIK at a rate of 0.5 percent of the
shall include all order terms and
TAMROCK to the PRODUCTS and included as purchase price calculated for each
sufficient detailed information to
an integral part of any PRODUCT. completed week of delay. The liquidated
allow SANDVIK TAMROCK to complete
delivery. If this information is not damages shall not exceed 7.5 percent of
2.DELIVERY TERMS ETC. supplied in due time, SANDVIK TAMROCK the purchase price of the delayed
shall be free to amend the prices delivery. If only part of the PRODUCTS
quoted in the offer or order to cover is delayed, the liquidated damages
All references to trade terms shall be any subsequently realised increase in shall be calculated on that part of the
interpreted in accordance with cost. The information should be purchase price which is attributable to
Incoterms 2000, or any revised version provided on the order entry and such part of the PRODUCTS as cannot in
thereof in force at the time of specification forms supplied by SANDVIK consequence of the delay be used as
entering into the Agreement. TAMROCK where practicable. intended by the parties. The liquidated
damages become due at the PURCHASER's
Unless otherwise agreed in writing, written demand but not before delivery
quoted or stipulated dates for delivery 5.CANCELLATION OF ORDERS OR has been completed or the Agreement is
are estimates only and despatch of an RETURN OF PRODUCTS terminated. The PURCHASER shall forfeit
order shall not be subject to any his right to liquidated damages if he
expressed or implied time limit. has not lodged a claim for such damages
Orders may not be cancelled or PRODUCTS within six months after the time when
All sales shall include only those returned other than with SANDVIK delivery should have taken place.
PRODUCTS, installation, training, work TAMROCK's prior written consent. All
costs and expenses incurred by SANDVIK
 19.03.04 2 (6)

Liquidated damages is the only remedy TAMROCK's prior written consent, and
available to the PURCHASER in case of SANDVIK TAMROCK will not accept any
delay on the part of SANDVIK TAMROCK. liability for costs incurred by the
PURCHASER in connection with returning
PRODUCTS or parts, or otherwise,
7.PRICES AND PAYMENT without such consent.
8.WARRANTY
9.INTELLECTUAL PROPERTY
Unless otherwise agreed, all quoted
prices are for delivery Ex Works SANDVIK TAMROCK shall remedy defects in
SANDVIK TAMROCK's plant. If other material or workmanship of the PRODUCTS SANDVIK TAMROCK assumes no duty to
delivery terms are agreed upon, SANDVIK pursuant to the provisions of the indemnify the PURCHASER for any
TAMROCK reserves the right to increase attached Schedule 1 SANDVIK TAMROCK infringement of patents, trademarks,
the price quotation to cover any EQUIPMENT WARRANTY and Schedule 2 registered designs, copyright or any
additional costs. SANDVIK TAMROCK SPARE PARTS WARRANTY, other intellectual property unless:
whichever is applicable to the
Unless otherwise agreed, all prices PRODUCTS. These are the only warranties (a) the indemnity in no way arises
charged by SANDVIK TAMROCK are strictly applicable to the sales of any PRODUCTS from a design or instruction
net. Prices do not include any federal, and replace any other warranties or furnished by the PURCHASER;
provincial, state or local sales, use liabilities against deficiencies or
or other taxes, which taxes will be defects, hidden or otherwise, and any (b) the PRODUCTS are not used in any
added to the sales price for other obligation or liability relating manner, for any purpose, or in
PURCHASER's account, unless the to or arising on the basis of defects any country not specified by or
PURCHASER provides an exemption in the PRODUCTS, unless otherwise disclosed to SANDVIK TAMROCK; and
certificate. The PURCHASER shall also agreed by both SANDVIK TAMROCK and the
always pay all import, customs and PURCHASER. In no event does SANDVIK (c) prompt notice is given to SANDVIK
other duties, taxes and fees as well as TAMROCK give any warranty to parts or TAMROCK in writing at the
the costs of carrying out customs components manufactured and/or supplied earliest possible date of any
formalities payable upon importation. by any third party, unless otherwise claim made or action threatened
agreed between SANDVIK TAMROCK and the or brought against PURCHASER.
If after the conclusion of any relevant manufacturer/supplier.
Agreement SANDVIK TAMROCK shall incur SANDVIK TAMROCK reserves the right to
additional costs (including but not In order to be able to avail himself of conduct any litigation that may ensue
limited to taxes, duties, charges and the rights under this clause, the and all negotiations for the settlement
other similar payments) by reason of PURCHASER shall inspect the PRODUCTS of any claim relating to any
any change in law or its interpretation and notify SANDVIK TAMROCK in writing intellectual property right relating to
or due to a requirement or order of any of the inspection and possible defects the PRODUCTS.
authority or on account of any similar in material or design without delay and
reason, such additional costs shall be not later than (14) fourteen days from PURCHASER warrants that any design or
charged to the PURCHASER in such a receipt of the PRODUCTS. The PURCHASER instructions furnished by it to SANDVIK
manner as SANDVIK TAMROCK sees fit, so shall ensure that SANDVIK TAMROCK shall TAMROCK do not and will not infringe or
that SANDVIK TAMROCK receives the same have the opportunity to verify that the cause SANDVIK TAMROCK to infringe in
amount for the PRODUCTS as it would PRODUCTS are duly covered by SANDVIK the execution of the order or otherwise
have received had no such additional TAMROCK's warranty and to inspect and any patents, trademarks, registered
amounts become payable. remedy any alleged defects. designs, or any other intellectual
property rights of any third party.
Payment for all PRODUCTS with a
destination in the country of SANDVIK TAMROCK'S above mentioned PURCHASER agrees that it shall
manufacturer shall be made within warranty shall expire and become void indemnify SANDVIK TAMROCK against all
thirty (30) days after the date of immediately, if the PURCHASER or any claims, demands, damages, penalties,
despatch. other purchaser or user of the PRODUCTS costs and expenses for which SANDVIK
removes or tampers with or adds any TAMROCK may become liable by reason of
All export PRODUCTS shall be paid for parts or components of or to the any infringement of patents,
in cash in the agreed currency upon the PRODUCTS or replaces the original parts trademarks, registered designs, or any
presentation of shipping documents, or or components of the PRODUCTS with any other intellectual property rights and
the PRODUCTS shall be secured by the other parts or components, irrespective arising out of SANDVIK TAMROCK'S
PURCHASER's Irrevocable Letter of of whether these are manufactured or performance of PURCHASER's order if the
Credit in favour of SANDVIK TAMROCK or supplied by SANDVIK TAMROCK or another PRODUCTS are constructed in accordance
its designee. This Letter of Credit party, or modifies the PRODUCTS in any with PURCHASER's detailed drawings or
must be acceptable in content to way, unless SANDVIK TAMROCK'S prior designs submitted to SANDVIK TAMROCK.
SANDVIK TAMROCK, consistent with the written approval therefor is obtained.
terms of the Agreement, be irrevocable, 10.SOFTWARE AND COMPUTER
be issued by or secured by a major bank SANDVIK TAMROCK's warranty shall also
acceptable to SANDVIK TAMROCK. All bank expire and become void immediately, if CONTROL(LED) SYSTEMS
charges and reimbursement commissions, any System is removed from the relevant
including confirmation commission are PRODUCT, or the System or related Where the sale of any PRODUCT comprises
to be paid by the PURCHASER. software are modified or otherwise also Systems, of which SANDVIK TAMROCK
tampered with as referred to under is the copyright holder, the PURCHASER
Payment shall be made in full without clause 10 below, or used for any other shall only be granted the right to use
any deductions, counterclaims, or set purpose or in any other manner than the relevant System in accordance with
off. Expenses incurred in remitting that specified in the Agreement. the terms set forth in these Conditions
payments are the PURCHASER's and in the Agreement, while title to
responsibility. In the event that SANDVIK TAMROCK's and any and all rights relating to the
warranty expires due to the reasons set System shall remain vested in SANDVIK
If PURCHASER is in default in any forth above, SANDVIK TAMROCK shall no TAMROCK.
payment, SANDVIK TAMROCK may declare longer be obligated to repair, service
all payments for PRODUCTS delivered or maintain the PRODUCTS or Systems in The PURCHASER must not, without the
immediately due and payable with the accordance with the relevant warranty. prior written consent of SANDVIK
maximum legal interest thereon from the SANDVIK TAMROCK may, however, if it TAMROCK, modify any System or remove it
due date of the payment, stop all sees fit, carry out such maintenance an from the PRODUCT, make copies of the
further deliveries and suspend all repair work as it deems necessary also relevant software or sell, transfer or
SANDVIK TAMROCK's further performance thereafter and is entitled to receive otherwise dispose of or distribute the
of the Agreement until payments are payment for such work in accordance System or use it for any other purpose
brought current, require return of the with its usual charges. or in any other manner than that
shipment at the PURCHASER's expense defined in the Agreement. The PURCHASER
and/or require advance payment for In the event that the PURCHASER wishes shall ensure that also its agents,
future shipments. to return any PRODUCTS or any parts of employees or other representatives
the PRODUCTS to SANDVIK TAMROCK because comply with this provision. SANDVIK
Interest on overdue payments shall be of defects in the PRODUCTS or parts, or TAMROCK shall be entitled to verify at
the maximum legal interest rate from due to the PRODUCTS or parts having its discretion that the PURCHASER
the due date. been damaged, the PURCHASER shall complies with the above at any given
notify SANDVIK TAMROCK of its such time and the PURCHASER agrees to allow
If the PURCHASER has not paid any intention without delay, and SANDVIK the representatives of SANDVIK TAMROCK
amount within one (1) month from its TAMROCK shall then arrange for the to carry out such inspections as they
due date SANDVIK TAMROCK shall be carriage of such PRODUCTS or parts to see fit for such purpose.
entitled to terminate the Agreement by SANDVIK TAMROCK'S plant at SANDVIK
notice in writing to the PURCHASER and TAMROCK's own cost. No PRODUCTS or In case of the PURCHASER's or its
to claim compensation for the loss parts may be returned by the PURCHASER agent's, employee's or other
incurred. to SANDVIK TAMROCK without SANDVIK representative's breach of or failure
 19.03.04 3 (6)

to comply with the provisions PRODUCTS shall be packed, at SANDVIK PRODUCTS at SANDVIK TAMROCK'S plant
concerning the Systems, SANDVIK TAMROCK TAMROCK's option and expense, in a without delay or arrange for
shall not be liable for any personal shipping container or flat, depending appropriate storage of the PRODUCTS and
injury or damage to property, nor any on the size of the PRODUCTS. SANDVIK the PRODUCTS shall after SANDVIK
direct, indirect or consequential TAMROCK shall be responsible for TAMROCK'S such notice or the
damage or loss that may be caused to ensuring that protection from sea water PURCHASER'S taking of delivery or
the PURCHASER or any third party as a is provided where necessary. An placing the PRODUCTS in storage,
result of such breach or failure or by additional amount may be added to the whichever is the earliest, be at
the PRODUCT or its use. purchase price for any additional PURCHASER's sole risk. SANDVIK TAMROCK
packing requested by the PURCHASER. is prepared, however, if its storage
The PURCHASER shall fully indemnify and SANDVIK TAMROCK reserves the right to facilities permit, to store the
hold SANDVIK TAMROCK harmless against alter its said packing practice if PRODUCTS at PURCHASER's sole risk
any claims, losses or damage that deemed necessary because of the nature making a charge for such storage until
SANDVIK TAMROCK may incur as a of a particular PRODUCT or any the PRODUCTS are despatched. Such
consequence of the PURCHASER's said requirements of the PURCHASER. charge shall be calculated as agreed
breach or failure. As the amount of from case to case and be in addition to
damage incurred by SANDVIK TAMROCK due the agreed purchase price of the
to such a breach or failure may be 15.PERFORMANCE AND TESTING PRODUCTS. Payment of the purchase price
extremely difficult to determine, the and the additional charge shall be due
remedy available to SANDVIK TAMROCK SANDVIK TAMROCK PRODUCTS are inspected, for the PRODUCTS as if despatched at
therefor shall be either liquidated and where practical, submitted to the time agreed in the Agreement. Any
damages payable by the PURCHASER in the standard tests at the SANDVIK TAMROCK charges for storage or demurrage after
minimum amount of FIM 1,000,000 or its works before despatch. despatch must be paid by PURCHASER.
equivalent in another currency to be
separately agreed, or if SANDVIK Any performance figures provided by
TAMROCK shall be able to prove that the SANDVIK TAMROCK are based on prior 18.CHANGES IN DESIGN
amount of the actual damage suffered by experience and are as SANDVIK TAMROCK
it is higher, the PURCHASER shall pay expects to obtain on test. SANDVIK SANDVIK TAMROCK reserves the right, but
to SANDVIK TAMROCK the amount of the TAMROCK will accept liability for is not obliged, to modify the design
damage in full. subsequent failure to meet the figures and construction of PRODUCTS before
only if SANDVIK TAMROCK has delivery is made in order to
specifically warranted the performance incorporate improvements or to
11.PROPRIETARY INFORMATION figures in a written document signed by substitute material equal or superior
a duly authorized officer of SANDVIK to that originally specified. Any major
In addition to information and TAMROCK. changes in design however require the
documents relating to Systems, all prior approval of the PURCHASER.
drawings, patterns and manufacturing SANDVIK TAMROCK makes no representation
specifications supplied by SANDVIK or warranty that any PRODUCTS have
TAMROCK remain SANDVIK TAMROCK's sufficient and suitable capacity and 19.RETENTION OF TITLE AND
property and may not be copied or performance or are fit for any purpose RISK OF LOSS
disclosed to any third party without of the PURCHASER, including any
SANDVIK TAMROCK's prior written particular purpose which SANDVIK
SANDVIK TAMROCK RETAINS OWNERSHIP OF,
consent. TAMROCK may have actual or constructive
TITLE TO, AND THE RIGHT TO REPOSSESS
knowledge of.
AND/OR DISPOSE OF ANY PRODUCTS SOLD TO
In the event of disclosure of
THE PURCHASER UNTIL THE PURCHASE PRICE
proprietary information of SANDVIK If the PRODUCTS comprise parts or
OF THE PRODUCTS AND ANY OTHER AMOUNTS
TAMROCK by the PURCHASER, the PURCHASER components or computer control systems
DUE TO SANDVIK TAMROCK FOR THE PRODUCTS
shall be liable for all damage incurred (including related software)
ARE PAID FOR IN FULL to the extent that
by SANDVIK TAMROCK as a consequence of manufactured or supplied by any third
such retention of property is valid
any such unauthorised disclosure. party, SANDVIK TAMROCK does not warrant
under the applicable law. If required
the capacity or performance thereof,
by SANDVIK TAMROCK, the PURCHASER shall
SANDVIK TAMROCK will provide the and it shall not be liable for any
provide insurance for SANDVIK TAMROCK's
PURCHASER with the documentation and failure of or damage caused to any
benefit to protect SANDVIK TAMROCK's
instructions necessary for the PRODUCT by such component, unless the
interest against loss or damage until
operation and maintenance of the component has been accepted or tested
all amounts due have been paid in full.
PRODUCTS at the latest with the by SANDVIK TAMROCK in advance to
Ownership of and title to the PRODUCTS
despatch of the PRODUCTS. ascertain its suitability with the
(exclusive of Systems relating thereto)
PRODUCT to achieve such performance or
shall pass to PURCHASER when SANDVIK
capacity as is normal in the experience
12.LOCAL LAWS AND REGULATIONS of SANDVIK TAMROCK.
TAMROCK has received the above sums in
full.
The PURCHASER shall, upon the request Unless otherwise agreed in writing, if
In the event that retention of title is
of SANDVIK TAMROCK, assist to the best special tests in the presence of the
not valid under the applicable law,
of its ability in obtaining information PURCHASER are required, these shall be
SANDVIK TAMROCK reserves a purchase
concerning the local laws and made at the PURCHASER's works and
money security interest in the PRODUCTS
regulations of the PURCHASER's SANDVIK TAMROCK shall be entitled to
sold until the purchase price and any
jurisdiction applicable to the make an additional charge for carrying
other amounts due in connection with
PRODUCTS, and any related taxes and out such tests. In the event of
the PRODUCTS are paid in full.
payments. PURCHASER's delay in attending such
tests, after (7) seven days' notice
Unless otherwise agreed, the risk of
that the PRODUCTS are ready for tests,
13.ADDITIONAL CHARGES loss of the PRODUCTS shall pass to the
the tests will proceed in the
PURCHASER at the agreed delivery time
PURCHASER's absence and shall be
in accordance with the agreed terms of
In the event of suspension of work on deemed to have been made in the
delivery. If not otherwise agreed all
PURCHASER's instructions or through PURCHASER's presence.
deliveries shall be Ex Works.
PURCHASER not having given SANDVIK
TAMROCK adequate instructions, the 16.SAMPLES If, in the case of delivery agreed to
price of the PRODUCTS shall be be Ex Works, SANDVIK TAMROCK, at the
increased to cover any extra expense request of the PURCHASER, undertakes to
incurred by SANDVIK TAMROCK. Any samples submitted by SANDVIK send the PRODUCT on PURCHASER's behalf
TAMROCK must be paid for or returned to to its destination, the risk for the
Any work carried out by SANDVIK TAMROCK SANDVIK TAMROCK's premises at the PRODUCTS shall pass not later than when
after the expiry for any reason PURCHASER's expense within one (1) the PRODUCT is handed over to the first
whatsoever of SANDVIK TAMROCK's month from date of despatch of the carrier.
applicable warranty shall be charged to samples by SANDVIK TAMROCK.
the PURCHASER in accordance with PURCHASER shall not encumber or permit
SANDVIK TAMROCK'S list of charges others to encumber the PRODUCTS in any
current at the time.
17.STORAGE
manner.
If SANDVIK TAMROCK does not receive In the event legal action is necessary
14.PACKING forwarding instructions sufficient to to enforce any of PURCHASER's
enable it to despatch the PRODUCTS obligations under any Agreement,
Unless otherwise agreed, packing will within fourteen (14) days after SANDVIK TAMROCK shall be entitled to
be in accordance with the standard notification by SANDVIK TAMROCK that recover court costs and reasonable
practice of SANDVIK TAMROCK. For Ex the PRODUCTS have been tested as attorney's fees from the PURCHASER.
Works shipments, a truck shall be provided in clause 15 hereof or that
provided by the PURCHASER for the the PRODUCTS are ready for despatch,
packing. For F.O.B. shipments, the PURCHASER shall take delivery of the
 19.03.04 4 (6)

20.LIMITATION OF SANDVIK other circumstances beyond the

reasonable control of either party
TAMROCK'S LIABILITY (Force Majeure).

The PURCHASER shall be solely A circumstance referred to in this

responsible for providing accurate clause which had occurred prior to the
information to SANDVIK TAMROCK on the formation of the Agreement shall give a
intended use of the PRODUCTS and on the right to suspension only if its effect
environment and conditions in which the on the performance of the Agreement
PRODUCTS will be used. The PURCHASER could not be reasonably foreseen at the
shall also be responsible for complying time of formation of the Agreement.
with the requirements of local
authorities. Accordingly, SANDVIK As soon as either party knows its
TAMROCK shall not be liable for any performance under the Agreement is
costs, loss or damage that may arise likely to be affected by force majeure
due to such information not being the affected party shall give written
correct or due to the PURCHASER using notice to the other party setting out
the PRODUCTS in another manner or all relevant details of the delay
operating them in other conditions than within the earlier of: (a) two weeks of
those that it has notified to SANDVIK the time that the party acquired
TAMROCK. knowledge of the cause of the delay or
failure or (b) one month of the cause
The PURCHASER acknowledges that SANDVIK of the delay or failure arising.
TAMROCK has no control over and is not
responsible for the manner in which any Regardless of what might otherwise
PRODUCT is used or otherwise dealt with follow from the Agreement, either party
by the PURCHASER or any subsequent shall be entitled to terminate the
purchaser or user. Accordingly, SANDVIK Agreement by notice in writing to the
TAMROCK shall not be liable for any other party if performance is suspended
personal injury or damage to property by Force Majeure for more than six
caused by the PRODUCTS or resulting months.
directly or indirectly from the
installation, maintenance, use or
operation of the PRODUCTS, or the
22.CONSEQUENTIAL LOSSES
failure of the PRODUCTS to comply with
any applicable safety laws or SANDVIK TAMROCK shall have no liability
regulations after delivery to the towards the PURCHASER for loss of
PURCHASER. Nor shall SANDVIK TAMROCK be production, loss of profit, loss of
liable for any damage to products use, loss of contracts or for any
manufactured by the PURCHASER, or to consequential, economic or indirect
products of which the PURCHASER's loss or damage whatsoever.
products form a part unless otherwise
separately agreed in writing between
SANDVIK TAMROCK and the PURCHASER. 23.ARBITRATION AND APPLICABLE
LAW
The PURCHASER shall be fully
responsible for ensuring that all
These Conditions and the Agreement
warning labels required by the
shall be governed by and interpreted
jurisdiction where the PRODUCTS are
and construed in accordance with the
used are affixed and that all
laws of the country of the SANDVIK
applicable safety and operation
TAMROCK entity which has entered into
procedures are followed. The PURCHASER
the Agreement.
shall also be responsible for ensuring
that the personnel operating the
Any disputes arising from or relating
PRODUCTS is properly trained to operate
to these Conditions or the Agreement,
the PRODUCTS and aware of all the
or the performance of the parties'
necessary safety instructions and that
obligations thereunder, shall be
all necessary warning labels are
finally settled in accordance with the
continuously adhered to.
Rules of Conciliation and Arbitration
of the International Chamber of
The PURCHASER shall indemnify, defend,
Commerce by one arbitrator, or if the
and hold SANDVIK TAMROCK harmless
parties so agree three, appointed in
against any claims by any third parties
accordance with said rules,
(including but not limited to the
supplemented as necessary by the
PURCHASER'S employees, agents,
procedural rules of the law of the
distributors and other representatives)
country of the SANDVIK TAMROCK entity,
and shall reimburse to SANDVIK TAMROCK
which has entered into the Agreement.
any and all sums that SANDVIK TAMROCK
Unless otherwise agreed the proceedings
may be obligated to pay on the basis of
shall be conducted in the English
such claims, whether for personal
language.
injury or damage to property caused by
the PRODUCTS while the PRODUCTS are in
Notwithstanding the above, the
the possession of the PURCHASER or due
PURCHASER and SANDVIK TAMROCK agree
to any of the events or circumstances
that all monetary claims not exceeding
described above in this clause 20.
one hundred thousand U.S. Dollars (USD
100,000) may be brought before the
21.FORCE MAJEURE general courts of Finland or any other
competent jurisdiction.
Neither SANDVIK TAMROCK nor the
PURCHASER shall be considered in
default or liable under the Agreement
because of the following circumstances:
wars, riots, hostilities, public
disorder, strikes, lockouts or other
industrial disputes, epidemics, fires,
floods, acts of God, governmental
restrictions and actions such as
expropriations, requisitions,
confiscations, import and export
embargoes and currency restrictions,
inter alia, acts or orders of any court
or other authority of competent
jurisdiction, shortage of water, power,
labour, transport facilities or
necessary materials or supplies,
default or failure of carriers,
breakdown or loss of production, or any
 19.03.04 5 (6)

APPENDIX 1 f) damage caused by negligence or

failure of PURCHASER to maintain Telefax number:
the equipment in accordance with
SANDVIK TAMROCK SANDVIK TAMROCKís maintenance _____________________________________
recommendations, documents of Contact person:
STANDARD EQUIPMENT servicing may be required;
_____________________________________
WARRANTY g) damages, which are caused by E-mail address:
operating conditions such as deep
1. SANDVIK TAMROCK (as defined in and/or aggressive water, dust, poor _____________________________________
clause 1 of the General Conditions ventilation, where components,
of Sale) warrants new drill rigs, which are designed and manufactured
LHDs, face shovels and dump trucks according to industrial standards 7. The obligation of SANDVIK TAMROCK
supplied by SANDVIK TAMROCK to be fail prematurely; under this warranty is limited at
free from defects in material and PURCHASER's option, to
workmanship. h) any defects in materials provided
by the PURCHASER or any defects a) replace the part, free of charge,
2. The warranty periods for caused by design stipulated by the DDP (delivered, duty paid,
PURCHASER; Incoterms 2000) at the place of
a) drill rigs twelve (12) months, business of the SANDVIK TAMROCK
except hydraulic rock drills twelve i) any parts or components representative or
(12) months or one thousand (1000) manufactured or supplied by third
percussion hours, whichever comes parties or damage caused by such b) refund the part at its stock
first; parts or components to the replenishment order price.
b) hydraulic rock drills mounted on PRODUCTS;
used drill rig six (6) months or The warranty of a replaced or repaired
five hundred (500) percussion j) any costs such as labour, travel part expires at the same time as the
hours, whichever comes first; and similar costs or any original warranty of the supplied
c) pneumatic rock drills six (6) transportation; equipment.
months or ten thousand (10 000)
drilled meters, whichever comes k) any indirect or consequential The PURCHASER shall retain the claimed
first, damage including but not limited to part until claim is settled, for
d) the warranty periods for LHDs, face loss of profit, loss of production, SANDVIK TAMROCK's inspection and on
shovels and dump trucks are twelve loss of use of equipment. request the alleged defective part
(12) months or two thousand (2000) shall be sent as directed by SANDVIK
operating hours, whichever comes TAMROCK and at SANDVIK TAMROCK'S cost
first. Warranty claims worth under EURO/USD to a destination designated by SANDVIK
fifty (50) are not considered by TAMROCK. No part may be returned to
SANDVIK TAMROCK representative. SANDVIK TAMROCK without SANDVIK
All the above mentioned periods are
TAMROCK'S prior written consent. After
calculated from the date of start-up warranty handling, the title to the
inspection at the first end user. Under defective parts shall be transferred to
no circumstances will the warranty 4. Under no circumstances and in no
conditions, shall SANDVIK TAMROCK's SANDVIK TAMROCK.
period exceed eighteen (18) months from
the delivery to PURCHASER. Any liability whether in respect of one
claim or in the aggregate, arising Parts return addresses:
liability whatsoever to any party other
than the first end user is expressly out of any contract, exceed the
purchase price payable under the Return parts to your local SANDVIK
disclaimed. TAMROCK representative.
contract for such part in which the
The unit start-up inspection form shall liability shall arise.
be filled in and sent to SANDVIK APPEAL PERIOD FOR EACH SANDVIK
TAMROCK representative within fourteen 5. No claim will be considered, and
this warranty will be considered TAMROCKíS DECISION IN WARRANTY CLAIM IS
(14) days from start-up inspection. The THIRTY (30) DAYS AS OF THE DATE OF
engine warranty registration shall be null and void, if other than
GENUINE SANDVIK TAMROCK SPARE PARTS DECISION AFTER WHICH THE SAID DECISION
completed with local engine IS FINAL.
representative. All engine warranties are used in the equipment or if
shall be handled with local engine GENUINE SANDVIK TAMROCK SPARE PARTS
are dismounted and used in another This warranty is in lieu of all other
representative. warranties or conditions express,
PRODUCT than the PRODUCT originally
supplied to the PURCHASER by implied or statutory, including, but
The completed warranty registration not limited to warranties of
form must be received by SANDVIK SANDVIK TAMROCK.
merchantability and fitness for a
TAMROCK representative before any particular purpose. No other warranties
claims for warranty will be processed. 6. Warranty claims should be sent in
writing using a "SANDVIK TAMROCK express or implied are given unless
Warranty Claim" form. Warranty they are expressly given by SANDVIK
3. This warranty does not cover: claims concerning the failure in TAMROCK in writing.
rock drills should also include the
"Drifter Failure Report" form. The This warranty shall not be suspended on
a) natural wear and tear of the
forms shall be completely filled in the grounds of non-use, intermittent
equipment, normal maintenance
and be delivered to SANDVIK TAMROCK use or for any other reason.
service such as engine tune-ups,
adjustments and inspections or within fourteen (14) days from the
normal replacement items (such as time when the PURCHASER discovers
service filters), and damage or should have discovered the
resulting therefrom; alleged defect. Only one failure
should be reported for each claim.
b) consumables such as seals, filters, The warranty claim form should be
hoses, v-belts, tyres, fittings, sent to your local SANDVIK TAMROCK
screws, bolts, washers and rock representative.
drill connecting pieces, chucks,
diaphragms;
SANDVIK TAMROCK representative:
c) parts which can be repaired or
corrected with minimum action such _____________________________________
as changing of seals, tightening or Street address:
adjustment;
_____________________________________
d) damage caused by breakage of the City and State:
shank adaptor (excluding material
or workmanship failure in genuine _____________________________________
SANDVIK shank adaptor); ZIP Code:

e) damage caused by the PURCHASER's _____________________________________

failure to store, maintain or Country:
operate the equipment properly, or
due to overloading or failure to _____________________________________
pay proper attention to service and Phone number:
operating instructions or caused by
accident; _____________________________________
 19.03.04 6 (6)

APPENDIX 2 which are designed and manufactured

according to industrial standards
fail prematurely; Country:
SANDVIK TAMROCK
h) any defects in materials provided _____________________________________
STANDARD SPARE PARTS by the PURCHASER or any defects Phone number:
caused by design stipulated by the
WARRANTY PURCHASER; _____________________________________

i) any parts or components Telefax number:

1. SANDVIK TAMROCK (as defined in manufactured or supplied by third
clause 1 of the General Conditions parties or damage caused by such _____________________________________
of Sale) warrants new spare parts parts or components to the Contact person:
supplied by SANDVIK TAMROCK to be PRODUCTS;
free from defects in material and _____________________________________
workmanship in accordance with j) any costs such as labour, travel E-mail address:
industry standards current at the and similar costs or any
time of sale when the parts are transportation; _____________________________________
used as a part of SANDVIK TAMROCK
PRODUCTS. k) any indirect or consequential
damage including but not limited to 9. The obligation of SANDVIK TAMROCK
2. The warranty periods are as loss of profit, loss of production, under this warranty is limited at
follows: loss of use of equipment. PURCHASERís option, to
a) hydraulic rock drills mounted on 4. In order to be able to avail a) replace the part, free of charge,
used drill rig six (6) months or himself of the rights under this DDP (delivered, duty paid,
five hundred (500) percussion Warranty, the PURCHASER shall Incoterms 2000) at the place of
hours, whichever comes first; notify SANDVIK TAMROCK in writing business of the SANDVIK TAMROCK
b) pneumatic rock drills six (6) without delay of any defects that representative or
months or ten thousand (10 000) have appeared and shall give
drilled meters, whichever comes SANDVIK TAMROCK every opportunity b) refund the part at its stock
first; of inspecting and remedying them. replenishment order price.
c) for other spare parts the warranty
period is three (3) months. 5. On receipt of notification of a The PURCHASER shall retain the claimed
warranted defect, SANDVIK TAMROCK part until claim is settled for SANDVIK
All the above mentioned periods are shall remedy the defect at its own TAMROCK's inspection and on request the
calculated from the date of delivery to discretion and expense. alleged defective part shall be sent as
the end user. Any liability whatsoever directed by SANDVIK TAMROCK and at
to any party other than the first end The completed warranty registration SANDVIK TAMROCK'S cost to a destination
user is expressly disclaimed. form must be received by SANDVIK designated by SANDVIK TAMROCK. No part
TAMROCK representative before any may be returned to SANDVIK TAMROCK
The engine warranty registration shall claims for warranty will be without SANDVIK TAMROCK's prior written
be completed with local engine processed. consent. After warranty handling, the
representative. All engine warranties title to the defective part will be
shall be handled with local engine transferred to SANDVIK TAMROCK.
representative. Warranty claims worth under EURO/USD
fifty (50) are not considered by Parts should be returned to your local
The warranty of a replaced or repaired SANDVIK TAMROCK representative. SANDVIK TAMROCK representative.
part expires at the same time as the
original warranty of the supplied
equipment. 6. Under no circumstances and in no APPEAL PERIOD FOR EACH SANDVIK
conditions, shall SANDVIK TAMROCK's TAMROCKíS DECISION IN WARRANTY CLAIM IS
3. This warranty does not cover: liability for any singular or THIRTY (30) DAYS AS OF THE DATE OF
aggregate claim arising under any DECISION AFTER WHICH THE SAID DECISION
a )natural wear and tear of the part contract or otherwise exceed the IS FINAL.
or PRODUCTS, normal maintenance contract purchase price of the part
service such as engine tune-ups, from which the liability arises. This warranty is in lieu of all other
adjustments and inspections or warranties or conditions express,
normal replacement items (such as 7. No claim will be considered, and implied or statutory, including, but
service filters), and damage this warranty will be considered not limited to warranties of
resulting therefrom; null and void, if other than merchantability and fitness for a
GENUINE SANDVIK TAMROCK SPARE PARTS particular purpose. No other warranties
b) consumables such as seals, filters, and all consumables as originally express or implied are given unless
hoses, v-belts, tyres, fittings, installed by SANDVIK TAMROCK are they are expressly given by SANDVIK
screws, bolts, washers and rock used in the PRODUCT. TAMROCK in writing.
drill connecting pieces, chucks,
diaphragms; 8. Warranty claims should be sent in This warranty shall not be suspended on
writing using a "SANDVIK TAMROCK the grounds of non-use, intermittent
c) parts which can be repaired or Warranty Claim" form. Warranty use or for any other reason.
corrected with minimum action such Claims concerning the failure in
as changing of seals, tightening or rock drills should also include the
adjustment; ìDrifter Failure Reportî form. The
forms shall be completely filled in
d) damage caused by breakage of the and be delivered to SANDVIK TAMROCK
shank adaptor (excluding material within fourteen (14) days from the
or workmanship failure in genuine time when the PURCHASER discovers
SANDVIK shank adaptor); or should have discovered the
alleged defect. The date of the
e) damage caused by the PURCHASER's Spare Part delivery to the end user
failure, to store, maintain or must be proved in writing. Only one
operate the spare part or PRODUCTS failure should be reported for each
properly, or due to overloading or claim. The warranty claim form
failure to pay proper attention to should be sent to your local
service and operating instructions SANDVIK TAMROCK representative.
or caused by accident;

f) damage caused by negligence or SANDVIK TAMROCK representative:

failure of PURCHASER to maintain
the spare part or PRODUCT in _____________________________________
accordance with SANDVIK TAMROCKís Street address:
maintenance recommendations,
documents of servicing may be _____________________________________
required; City and State:
g) damages, which are caused by _____________________________________
operating conditions such as deep ZIP Code:
and/or aggressive water, dust, poor
ventilation, where components, _____________________________________
 WARRANTY CLAIM
DATE CLAIM NO.

AFFILIATE OR DISTRIBUTOR ADDRESS COUNTRY

CUSTOMER'S NAME ADDRESS COUNTRY

MACHINE MODEL DATE IN SERVICE MACHINE SERIAL NO. ENGINE HOURS

FAILED COMPONENT COMPONENT MODEL NO. COMPONENTSERIAL NO. ENGINE SERIAL NO.

DATE SOLD DATE IN SERVICE DATE OF FAILURE OPERATING HOURS

TYPE OF MINE, CONSTRUCTION WORK, ETC.

DESCRIPTION OF THE DAMAGE, EXACT COCATION OF THE DAMAGE, SPECIAL CONDITIONS AND OTHER FACTS INVOLVED, MEASURES, REMEDY, ETC.

QTY INSTALLED PART NUMBER REMOVED PART NUMBER CATALOGUE DISCRIPTION PRICE EACH TOTAL

PHOTO ENCLOSED ACTION REQUESTED: FOR FACTORY USE

TOTAL
ISSUE CREDIT REPLACE PARTS PARTS

ONE FAILURE ON EACH CLAIM, USE TYPE WRITER, SUBMIT CLAIM WITHIN TOTAL
30 DAYS FROM DAMAGE, AIRMAIL FIRST SHEET AND FILE ONE, RETAIN LABOUR
PARTS AVAILABLE FOR INSPECTION, A PHOTO IS REQUIRED
AND MAY ELIMINATE NEED OF RETURNING THE PARTS TOTAL

FOR REGIONAL USE CLAIM RETURNED FOR COMPLETION

DATE BY
CLAIM FORWARDED FOR FACTORY CLAIM ACCEPTED CLAIM REJECTED
DATE BY
DATE BY
DATE OF CREDIT AMOUNT CREDIT INV. NO.
CLAIM ACCEPTED CLAIM REJECTED
DATE BY

DATE CLAIM RECEIVED