07.06.

2006 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 MINING AND
5. CANCELLATION OF ORDERS OR RETURN 12. LOCAL LAWS AND REGULATIONS CONSTRUCTION OY'S 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

The General Conditions of Sale set forth PURCHASER shall notify the applicable 6.DELIVERY AND INSPECTION DELAY
herein shall be applied to and govern all regulations to SANDVIK MINING AND
offers, orders and agreements for the sale CONSTRUCTION OY before delivery of any
of PRODUCTS (as hereinafter defined), PRODUCTS so that SANDVIK MINING AND The PURCHASER will be deemed to have
made, accepted or entered into by SANDVIK CONSTRUCTION OY can take the regulations accepted the quantity of the PRODUCTS as
MINING AND CONSTRUCTION OY to or with any into account when delivering the PRODUCTS being strictly in accordance with the
PURCHASER. and invoicing them in accordance with Agreement:
clause 7 below.
The provisions of these Conditions are (a) if, upon the conclusion of the Start-
severable and if any provision is held to Up or upon taking into use of the
be invalid or unenforceable, it shall be 3.PRODUCT INFORMATION PRODUCTS, whichever comes first, the
severed and the remaining provisions shall PURCHASER does not notify SANDVIK
be enforced to the fullest extent All information and data contained in MINING AND CONSTRUCTION OY in writing
possible. brochures, drawings, catalogues, price of any shortage or deficiency; or
lists and other similar documents which
Any headings are for convenience only and are either provided by SANDVIK MINING AND (b) unless the PURCHASER has notified
shall not affect the construction of these CONSTRUCTION OY or are otherwise acquired SANDVIK MINING AND CONSTRUCTION OY of
Conditions. by the PURCHASER and which relate to the any deficiency or shortages within
PRODUCTS are for information purposes fourteen (14) days of receipt.
By placing an order with SANDVIK MINING only, and are binding only to the extent
AND CONSTRUCTION OY or accepting an offer that the contents of any such document are If PURCHASER fails to accept delivery at
by SANDVIK MINING AND CONSTRUCTION OY, the expressly incorporated in writing in the the delivery time he shall nevertheless
PURCHASER agrees to these General Agreement. pay any part of the purchase price which
Conditions of Sale as set forth below: becomes due on delivery as if delivery had
taken place.
4.VALIDITY OF OFFERS AND ORDERS
1.DEFINITIONS If delay in delivery is caused by any of
Any obligation or liability on SANDVIK the circumstances mentioned in clause 21
"SANDVIK MINING AND CONSTRUCTION OY" shall MINING AND CONSTRUCTION OY'S part is below or by act or omission on the part of
mean SANDVIK MINING AND CONSTRUCTION OY subject to the terms of payment and all the PURCHASER including suspension due to
Corp. and/or any of its operating other obligations of the PURCHASER towards late payment or anticipated non-
subsidiaries. SANDVIK MINING AND CONSTRUCTION OY under performance, the time for delivery shall
the Agreement being strictly observed. be extended by a period which is
reasonable having regard to all
"PRODUCTS" or "PRODUCT" shall mean all circumstances. This provision applies
products, equipment, goods and accessories Inclusion by the PURCHASER of any terms
inconsistent with or in addition to the regardless of whether the reason for delay
sold by SANDVIK MINING AND CONSTRUCTION occurs before or after the agreed time for
OY, including any manuals relating terms and conditions set forth in these
General Conditions of Sale in any offer or delivery.
thereto.
order is not binding on SANDVIK MINING AND
CONSTRUCTION OY but shall be regarded as a If there is a delay in delivery for a
"PURCHASER" shall mean any purchaser of counter-offer subject to the express and reason attributable to SANDVIK MINING AND
PRODUCTS. written acceptance by a person duly CONSTRUCTION OY, and if no suspension has
authorised by SANDVIK MINING AND been agreed upon between SANDVIK MINING
"Agreement" shall mean any agreement for CONSTRUCTION OY. AND CONSTRUCTION OY and PURCHASER on the
the sale of PRODUCTS, whether entered into basis of anticipated delay, the PURCHASER
by way of the PURCHASER's order and Unless otherwise stated herein, agreed in is entitled to liquidated damages from the
SANDVIK MINING AND CONSTRUCTION OY's writing or previously withdrawn, every date on which delivery should have taken
acceptance thereof or any other method, offer is open for acceptance for 30 days place. The liquidated damages shall be
including these General Conditions of Sale from the date of submission to the payable at a rate of 0.5 percent of the
as an integral part thereof. PURCHASER. No order shall be binding on purchase price calculated for each
SANDVIK MINING AND CONSTRUCTION OY unless completed week of delay. The liquidated
"Start-Up" shall mean the first start-up it is confirmed on behalf of SANDVIK damages shall not exceed 7.5 percent of
of the PRODUCT, which shall be deemed to MINING AND CONSTRUCTION OY in writing by a the purchase price of the delayed
occur within thirty (30) days of delivery person duly authorised by SANDVIK MINING delivery. If only part of the PRODUCTS is
of the PRODUCT, if not otherwise agreed to AND CONSTRUCTION OY. delayed, the liquidated damages shall be
in writing by a person duly authorised by calculated on that part of the purchase
SANDVIK MINING AND CONSTRUCTION OY. price which is attributable to such part
Any order or acceptance of any offer shall of the PRODUCTS as cannot in consequence
include all order terms and sufficient of the delay be used as intended by the
"System" or "Systems" shall mean all detailed information to allow SANDVIK parties. The liquidated damages become due
computer control/controlled systems MINING AND CONSTRUCTION OY to complete at the PURCHASER's written demand but not
including automation systems and thereto delivery. If this information is not before delivery has been completed or the
related software developed, owned and/or supplied in due time, SANDVIK MINING AND Agreement is terminated. The PURCHASER
installed by SANDVIK MINING AND CONSTRUCTION OY shall be free to amend the shall forfeit his right to liquidated
CONSTRUCTION OY to the PRODUCTS and prices quoted in the offer or order to damages if he has not lodged a claim for
included as an integral part of any cover any subsequently realised increase such damages within six months after the
PRODUCT. in cost. The information should be time when delivery should have taken
provided on the order entry and place.
specification forms supplied by SANDVIK Liquidated damages is the only remedy
2.DELIVERY TERMS ETC. MINING AND CONSTRUCTION OY where available to the PURCHASER in case of
practicable. delay on the part of SANDVIK MINING AND
All references to trade terms shall be CONSTRUCTION OY.
interpreted in accordance with Incoterms 5.CANCELLATION OF ORDERS OR
2000, or any revised version thereof in
force at the time of entering into the RETURN OF PRODUCTS 7.PRICES AND PAYMENT
Agreement.
Orders may not be cancelled or PRODUCTS Unless otherwise agreed, all quoted prices
Unless otherwise agreed in writing, quoted returned other than with SANDVIK MINING are for delivery Ex Works SANDVIK MINING
or stipulated dates for delivery are AND CONSTRUCTION OY's prior written AND CONSTRUCTION OY's plant. If other
estimates only and despatch of an order consent. All costs and expenses incurred delivery terms are agreed upon, SANDVIK
shall not be subject to any expressed or by SANDVIK MINING AND CONSTRUCTION OY up MINING AND CONSTRUCTION OY reserves the
implied time limit. to the time of cancellation and all loss right to increase the price quotation to
or damage by reason of such cancellation cover any additional costs.
All sales shall include only those shall be reimbursed by PURCHASER to
PRODUCTS, installation, training, work and SANDVIK MINING AND CONSTRUCTION OY Unless otherwise agreed, all prices
services expressly specified in the forthwith. SANDVIK MINING AND CONSTRUCTION charged by SANDVIK MINING AND CONSTRUCTION
Agreement and they must comply with all OY reserves the right to charge PURCHASER OY are strictly net. Prices do not include
applicable import, export and Exchange for any costs incurred due to suspension any federal, provincial, state or local
Control regulations. For such purpose, the or deferment of an order. sales, use or other taxes, which taxes
 07.06.2006 2 (6)

will be added to the sales price for In order to be able to avail himself of SANDVIK MINING AND CONSTRUCTION OY
PURCHASER's account, unless the PURCHASER the rights under this clause, the reserves the right to conduct any
provides an exemption certificate. The PURCHASER shall inspect the PRODUCTS and litigation that may ensue and all
PURCHASER shall also always pay all notify SANDVIK MINING AND CONSTRUCTION OY negotiations for the settlement of any
import, customs and other duties, taxes in writing of the inspection and possible claim relating to any intellectual
and fees as well as the costs of carrying defects in material or design without property right relating to the PRODUCTS.
out customs formalities payable upon delay and not later than (14) fourteen
importation. days from receipt of the PRODUCTS. The PURCHASER warrants that any design or
PURCHASER shall ensure that SANDVIK MINING instructions furnished by it to SANDVIK
If after the conclusion of any Agreement AND CONSTRUCTION OY shall have the MINING AND CONSTRUCTION OY do not and will
SANDVIK MINING AND CONSTRUCTION OY shall opportunity to verify that the PRODUCTS not infringe or cause SANDVIK MINING AND
incur additional costs (including but not are duly covered by SANDVIK MINING AND CONSTRUCTION OY to infringe in the
limited to taxes, duties, charges and CONSTRUCTION OY's warranty and to inspect execution of the order or otherwise any
other similar payments) by reason of any and remedy any alleged defects. patents, trademarks, registered designs,
change in law or its interpretation or due or any other intellectual property rights
to a requirement or order of any authority SANDVIK MINING AND CONSTRUCTION OY'S above of any third party.
or on account of any similar reason, such mentioned warranty shall expire and become
additional costs shall be charged to the void immediately, if the PURCHASER or any PURCHASER agrees that it shall indemnify
PURCHASER in such a manner as SANDVIK other purchaser or user of the PRODUCTS SANDVIK MINING AND CONSTRUCTION OY against
MINING AND CONSTRUCTION OY sees fit, so removes or tampers with or adds any parts all claims, demands, damages, penalties,
that SANDVIK MINING AND CONSTRUCTION OY or components of or to the PRODUCTS or costs and expenses for which SANDVIK
receives the same amount for the PRODUCTS replaces the original parts or components MINING AND CONSTRUCTION OY may become
as it would have received had no such of the PRODUCTS with any other parts or liable by reason of any infringement of
additional amounts become payable. components, irrespective of whether these patents, trademarks, registered designs,
are manufactured or supplied by SANDVIK or any other intellectual property rights
Payment for all PRODUCTS with a MINING AND CONSTRUCTION OY or another and arising out of SANDVIK MINING AND
destination in the country of manufacturer party, or modifies the PRODUCTS in any CONSTRUCTION OY'S performance of
shall be made within thirty (30) days way, unless SANDVIK MINING AND PURCHASER's order if the PRODUCTS are
after the date of despatch. CONSTRUCTION OY'S prior written approval constructed in accordance with PURCHASER's
therefore is obtained. detailed drawings or designs submitted to
All export PRODUCTS shall be paid for in SANDVIK MINING AND CONSTRUCTION OY.
cash in the agreed currency upon the SANDVIK MINING AND CONSTRUCTION OY's
presentation of shipping documents, or the warranty shall also expire and become void
immediately, if any System is removed from 10.SOFTWARE AND COMPUTER
PRODUCTS shall be secured by the
PURCHASER's Irrevocable Letter of Credit the relevant PRODUCT, or the System or CONTROL(LED) SYSTEMS
in favour of SANDVIK MINING AND related software are modified or otherwise
CONSTRUCTION OY or its designee. This tampered with as referred to under clause
10 below, or used for any other purpose or Where the sale of any PRODUCT comprises
Letter of Credit must be acceptable in also Systems, of which SANDVIK MINING AND
content to SANDVIK MINING AND CONSTRUCTION in any other manner than that specified in
the Agreement. CONSTRUCTION OY is the copyright holder,
OY, consistent with the terms of the the PURCHASER shall only be granted the
Agreement, be irrevocable, be issued by or right to use the relevant System in
secured by a major bank acceptable to In the event that SANDVIK MINING AND accordance with the terms set forth in
SANDVIK MINING AND CONSTRUCTION OY. All CONSTRUCTION OY's warranty expires due to these Conditions and in the Agreement,
bank charges and reimbursement the reasons set forth above, SANDVIK while title to and any and all rights
commissions, including confirmation MINING AND CONSTRUCTION OY shall no longer relating to the System shall remain vested
commission are to be paid by the be obligated to repair, service or in SANDVIK MINING AND CONSTRUCTION OY.
PURCHASER. maintain the PRODUCTS or Systems in
accordance with the relevant warranty.
SANDVIK MINING AND CONSTRUCTION OY may, The PURCHASER must not, without the prior
Payment shall be made in full without any written consent of SANDVIK MINING AND
deductions, counterclaims, or set off. however, if it sees fit, carry out such
maintenance and repair work as it deems CONSTRUCTION OY, modify any System or
Expenses incurred in remitting payments remove it from the PRODUCT, make copies of
are the PURCHASER's responsibility. necessary also thereafter and is entitled
to receive payment for such work in the relevant software or sell, transfer or
accordance with its usual charges. otherwise dispose of or distribute the
If PURCHASER is in default in any payment, System or use it for any other purpose or
SANDVIK MINING AND CONSTRUCTION OY may in any other manner than that defined in
declare all payments for PRODUCTS In the event that the PURCHASER wishes to the Agreement. The PURCHASER shall ensure
delivered immediately due and payable with return any PRODUCTS or any parts of the that also its agents, employees or other
the maximum legal interest thereon from PRODUCTS to SANDVIK MINING AND representatives comply with this
the due date of the payment, stop all CONSTRUCTION OY because of defects in the provision. SANDVIK MINING AND CONSTRUCTION
further deliveries and suspend all SANDVIK PRODUCTS or parts, or due to the PRODUCTS OY shall be entitled to verify at its
MINING AND CONSTRUCTION OY's further or parts having been damaged, the discretion that the PURCHASER complies
performance of the Agreement until PURCHASER shall notify SANDVIK MINING AND with the above at any given time and the
payments are brought current, require CONSTRUCTION OY of its such intention PURCHASER agrees to allow the
return of the shipment at the PURCHASER's without delay, and SANDVIK MINING AND representatives of SANDVIK MINING AND
expense and/or require advance payment for CONSTRUCTION OY shall then arrange for the CONSTRUCTION OY to carry out such
future shipments. carriage of such PRODUCTS or parts to inspections as they see fit for such
SANDVIK MINING AND CONSTRUCTION OY'S plant purpose.
at SANDVIK MINING AND CONSTRUCTION OY's
Interest on overdue payments shall be the own cost. No PRODUCTS or parts may be
maximum legal interest rate from the due returned by the PURCHASER to SANDVIK In case of the PURCHASER's or its agent's,
date. MINING AND CONSTRUCTION OY without SANDVIK employee's or other representative's
MINING AND CONSTRUCTION OY's prior written breach of or failure to comply with the
If the PURCHASER has not paid any amount consent, and SANDVIK MINING AND provisions concerning the Systems, SANDVIK
within one (1) month from its due date CONSTRUCTION OY will not accept any MINING AND CONSTRUCTION OY shall not be
SANDVIK MINING AND CONSTRUCTION OY shall liability for costs incurred by the liable for any personal injury or damage
be entitled to terminate the Agreement by PURCHASER in connection with returning to property, nor any direct, indirect or
notice in writing to the PURCHASER and to PRODUCTS or parts, or otherwise, without consequential damage or loss that may be
claim compensation for the loss incurred. such consent. caused to the PURCHASER or any third party
as a result of such breach or failure or
by the PRODUCT or its use.
8.WARRANTY 9.INTELLECTUAL PROPERTY
The PURCHASER shall fully indemnify and
SANDVIK MINING AND CONSTRUCTION OY shall SANDVIK MINING AND CONSTRUCTION OY assumes hold SANDVIK MINING AND CONSTRUCTION OY
remedy defects in material or workmanship no duty to indemnify the PURCHASER for any harmless against any claims, losses or
of the PRODUCTS pursuant to the provisions infringement of patents, trademarks, damage that SANDVIK MINING AND
of the attached Schedule 1 SANDVIK MINING registered designs, copyright or any other CONSTRUCTION OY may incur as a consequence
AND CONSTRUCTION OY EQUIPMENT WARRANTY and intellectual property unless: of the PURCHASER's said breach or failure.
Schedule 2 SANDVIK MINING AND CONSTRUCTION As the amount of damage incurred by
OY SPARE PARTS WARRANTY, whichever is SANDVIK MINING AND CONSTRUCTION OY due to
(a) the indemnity in no way arises from such a breach or failure may be extremely
applicable to the PRODUCTS. These are the a design or instruction furnished by
only warranties applicable to the sales of difficult to determine, the remedy
the PURCHASER; available to SANDVIK MINING AND
any PRODUCTS and replace any other
warranties or liabilities against CONSTRUCTION OY therefore shall be either
deficiencies or defects, hidden or (b) the PRODUCTS are not used in any liquidated damages payable by the
otherwise, and any other obligation or manner, for any purpose, or in any PURCHASER in the minimum amount of EUR
liability relating to or arising on the country not specified by or 150,000 or its equivalent in another
basis of defects in the PRODUCTS, unless disclosed to SANDVIK MINING AND currency to be separately agreed, or if
otherwise agreed by both SANDVIK MINING CONSTRUCTION OY; and SANDVIK MINING AND CONSTRUCTION OY shall
AND CONSTRUCTION OY and the PURCHASER. In be able to prove that the amount of the
no event does SANDVIK MINING AND (c) prompt notice is given to SANDVIK actual damage suffered by it is higher,
CONSTRUCTION OY give any warranty to parts MINING AND CONSTRUCTION OY in the PURCHASER shall pay to SANDVIK MINING
or components manufactured and/or supplied writing at the earliest possible AND CONSTRUCTION OY the amount of the
by any third party, unless otherwise date of any claim made or action damage in full.
agreed between SANDVIK MINING AND threatened or brought against
CONSTRUCTION OY and the relevant PURCHASER.
manufacturer/supplier.
 07.06.2006 3 (6)

11.PROPRIETARY INFORMATION duly authorized officer of SANDVIK MINING 19.RETENTION OF TITLE AND RISK
AND CONSTRUCTION OY.
OF LOSS
In addition to information and documents SANDVIK MINING AND CONSTRUCTION OY makes
relating to Systems, all drawings, no representation or warranty that any SANDVIK MINING AND CONSTRUCTION OY RETAINS
patterns and manufacturing specifications PRODUCTS have sufficient and suitable OWNERSHIP OF, TITLE TO, AND THE RIGHT TO
supplied by SANDVIK MINING AND capacity and performance or are fit for REPOSSESS AND/OR DISPOSE OF ANY PRODUCTS
CONSTRUCTION OY remain SANDVIK MINING AND any purpose of the PURCHASER, including SOLD TO THE PURCHASER UNTIL THE PURCHASE
CONSTRUCTION OY's property and may not be any particular purpose which SANDVIK PRICE OF THE PRODUCTS AND ANY OTHER
copied or disclosed to any third party MINING AND CONSTRUCTION OY may have actual AMOUNTS DUE TO SANDVIK MINING AND
without SANDVIK MINING AND CONSTRUCTION or constructive knowledge of. CONSTRUCTION OY FOR THE PRODUCTS ARE PAID
OY's prior written consent. FOR IN FULL to the extent that such
If the PRODUCTS comprise parts or retention of property is valid under the
In the event of disclosure of proprietary components or computer control systems applicable law. If required by SANDVIK
information of SANDVIK MINING AND (including related software) manufactured MINING AND CONSTRUCTION OY, the PURCHASER
CONSTRUCTION OY by the PURCHASER, the or supplied by any third party, SANDVIK shall provide insurance for SANDVIK MINING
PURCHASER shall be liable for all damage MINING AND CONSTRUCTION OY does not AND CONSTRUCTION OY's benefit to protect
incurred by SANDVIK MINING AND warrant the capacity or performance SANDVIK MINING AND CONSTRUCTION OY's
CONSTRUCTION OY as a consequence of any thereof, and it shall not be liable for interest against loss or damage until all
such unauthorised disclosure. any failure of or damage caused to any amounts due have been paid in full.
PRODUCT by such component, unless the Ownership of and title to the PRODUCTS
SANDVIK MINING AND CONSTRUCTION OY will component has been accepted or tested by (exclusive of Systems relating thereto)
provide the PURCHASER with the SANDVIK MINING AND CONSTRUCTION OY in shall pass to PURCHASER when SANDVIK
documentation and instructions necessary advance to ascertain its suitability with MINING AND CONSTRUCTION OY has received
for the operation and maintenance of the the PRODUCT to achieve such performance or the above sums in full.
PRODUCTS at the latest with the despatch capacity as is normal in the experience of
of the PRODUCTS. SANDVIK MINING AND CONSTRUCTION OY. In the event that retention of title is
not valid under the applicable law,
Unless otherwise agreed in writing, if SANDVIK MINING AND CONSTRUCTION OY
12.LOCAL LAWS AND REGULATIONS special tests in the presence of the reserves a purchase money security
PURCHASER are required, these shall be interest in the PRODUCTS sold until the
made at the PURCHASER's works and SANDVIK purchase price and any other amounts due
The PURCHASER shall, upon the request of in connection with the PRODUCTS are paid
MINING AND CONSTRUCTION OY shall be
SANDVIK MINING AND CONSTRUCTION OY, assist in full.
entitled to make an additional charge for
to the best of its ability in obtaining
carrying out such tests. In the event of
information concerning the local laws and
PURCHASER's delay in attending such tests, Unless otherwise agreed, the risk of loss
regulations of the PURCHASER's
after (7) seven days' notice that the of the PRODUCTS shall pass to the
jurisdiction applicable to the PRODUCTS,
PRODUCTS are ready for tests, the tests PURCHASER at the agreed delivery time in
and any related taxes and payments.
will proceed in the PURCHASER's absence accordance with the agreed terms of
and shall be deemed to have been made in delivery. If not otherwise agreed all
13.ADDITIONAL CHARGES the PURCHASER's presence. deliveries shall be Ex Works.

If, in the case of delivery agreed to be

In the event of suspension of work on 16.SAMPLES Ex Works, SANDVIK MINING AND CONSTRUCTION
PURCHASER's instructions or through OY, at the request of the PURCHASER,
PURCHASER not having given SANDVIK MINING undertakes to send the PRODUCT on
Any samples submitted by SANDVIK MINING
AND CONSTRUCTION OY adequate instructions, PURCHASER's behalf to its destination, the
AND CONSTRUCTION OY must be paid for or
the price of the PRODUCTS shall be risk for the PRODUCTS shall pass not later
returned to SANDVIK MINING AND
increased to cover any extra expense than when the PRODUCT is handed over to
CONSTRUCTION OY's premises at the
incurred by SANDVIK MINING AND the first carrier.
PURCHASER's expense within one (1) month
CONSTRUCTION OY.
from date of despatch of the samples by
SANDVIK MINING AND CONSTRUCTION OY. PURCHASER shall not encumber or permit
Any work carried out by SANDVIK MINING AND others to encumber the PRODUCTS in any
CONSTRUCTION OY after the expiry for any manner.
reason whatsoever of SANDVIK MINING AND 17.STORAGE
CONSTRUCTION OY's applicable warranty
shall be charged to the PURCHASER in In the event legal action is necessary to
accordance with SANDVIK MINING AND If SANDVIK MINING AND CONSTRUCTION OY does enforce any of PURCHASER's obligations
CONSTRUCTION OY'S list of charges current not receive forwarding instructions under any Agreement, SANDVIK MINING AND
at the time. sufficient to enable it to despatch the CONSTRUCTION OY shall be entitled to
PRODUCTS within fourteen (14) days after recover court costs and reasonable
notification by SANDVIK MINING AND attorney's fees from the PURCHASER.
14.PACKING CONSTRUCTION OY that the PRODUCTS have
been tested as provided in clause 15
hereof or that the PRODUCTS are ready for 20.LIMITATION OF SANDVIK MINING
Unless otherwise agreed, packing will be despatch, PURCHASER shall take delivery of AND CONSTRUCTION OY'S LIABILITY
in accordance with the standard practice the PRODUCTS at SANDVIK MINING AND
of SANDVIK MINING AND CONSTRUCTION OY. For CONSTRUCTION OY'S plant without delay or
Ex Works shipments, a truck shall be arrange for appropriate storage of the The PURCHASER shall be solely responsible
provided by the PURCHASER for the packing. PRODUCTS and the PRODUCTS shall after for providing accurate information to
For F.O.B. shipments, the PRODUCTS shall SANDVIK MINING AND CONSTRUCTION OY'S such SANDVIK MINING AND CONSTRUCTION OY on the
be packed, at SANDVIK MINING AND notice or the PURCHASER'S taking of intended use of the PRODUCTS and on the
CONSTRUCTION OY's option and expense, in a delivery or placing the PRODUCTS in environment and conditions in which the
shipping container or flat, depending on storage, whichever is the earliest, be at PRODUCTS will be used. The PURCHASER shall
the size of the PRODUCTS. SANDVIK MINING PURCHASER's sole risk. SANDVIK MINING AND also be responsible for complying with the
AND CONSTRUCTION OY shall be responsible CONSTRUCTION OY is prepared, however, if requirements of local authorities.
for ensuring that protection from sea its storage facilities permit, to store Accordingly, SANDVIK MINING AND
water is provided where necessary. An the PRODUCTS at PURCHASER's sole risk CONSTRUCTION OY shall not be liable for
additional amount may be added to the making a charge for such storage until the any costs, loss or damage that may arise
purchase price for any additional packing PRODUCTS are despatched. Such charge shall due to such information not being correct
requested by the PURCHASER. SANDVIK MINING be calculated as agreed from case to case or due to the PURCHASER using the PRODUCTS
AND CONSTRUCTION OY reserves the right to and be in addition to the agreed purchase in another manner or operating them in
alter its said packing practice if deemed price of the PRODUCTS. Payment of the other conditions than those that it has
necessary because of the nature of a purchase price and the additional charge notified to SANDVIK MINING AND
particular PRODUCT or any requirements of shall be due for the PRODUCTS as if CONSTRUCTION OY.
the PURCHASER. despatched at the time agreed in the
Agreement. Any charges for storage or The PURCHASER acknowledges that SANDVIK
demurrage after despatch must be paid by MINING AND CONSTRUCTION OY has no control
15.PERFORMANCE AND TESTING PURCHASER. over and is not responsible for the manner
in which any PRODUCT is used or otherwise
SANDVIK MINING AND CONSTRUCTION OY dealt with by the PURCHASER or any
18.CHANGES IN DESIGN subsequent purchaser or user. Accordingly,
PRODUCTS are inspected, and where
practical, submitted to standard tests at SANDVIK MINING AND CONSTRUCTION OY shall
the SANDVIK MINING AND CONSTRUCTION OY SANDVIK MINING AND CONSTRUCTION OY not be liable for any personal injury or
works before despatch. reserves the right, but is not obliged, to damage to property caused by the PRODUCTS
modify the design and construction of or resulting directly or indirectly from
PRODUCTS before delivery is made in order the installation, maintenance, use or
Any performance figures provided by operation of the PRODUCTS, or the failure
SANDVIK MINING AND CONSTRUCTION OY are to incorporate improvements or to
substitute material equal or superior to of the PRODUCTS to comply with any
based on prior experience and are as applicable safety laws or regulations
SANDVIK MINING AND CONSTRUCTION OY expects that originally specified. Any major
changes in design however require the after delivery to the PURCHASER. Nor shall
to obtain on test. SANDVIK MINING AND SANDVIK MINING AND CONSTRUCTION OY be
CONSTRUCTION OY will accept liability for prior approval of the PURCHASER.
liable for any damage to products
subsequent failure to meet the figures manufactured by the PURCHASER, or to
only if SANDVIK MINING AND CONSTRUCTION OY products of which the PURCHASER's products
has specifically warranted the performance form a part unless otherwise separately
figures in a written document signed by a agreed in writing between SANDVIK MINING
AND CONSTRUCTION OY and the PURCHASER.
 07.06.2006 4 (6)

The PURCHASER shall be fully responsible Any disputes arising from or relating to
for ensuring that all warning labels these Conditions or the Agreement, or the
required by the jurisdiction where the performance of the parties' obligations
PRODUCTS are used are affixed and that all thereunder, shall be finally settled in
applicable safety and operation procedures accordance with the Rules of Conciliation
are followed. The PURCHASER shall also be and Arbitration of the International
responsible for ensuring that the Chamber of Commerce by one arbitrator, or
personnel operating the PRODUCTS is if the parties so agree three, appointed
properly trained to operate the PRODUCTS in accordance with said rules,
and aware of all the necessary safety supplemented as necessary by the
instructions and that all necessary procedural rules of the law of the country
warning labels are continuously adhered of the SANDVIK MINING AND CONSTRUCTION OY
to. entity, which has entered into the
Agreement. Unless otherwise agreed the
The PURCHASER shall indemnify, defend, and proceedings shall be conducted in the
hold SANDVIK MINING AND CONSTRUCTION OY English language.
harmless against any claims by any third
parties (including but not limited to the Notwithstanding the above, the PURCHASER
PURCHASER'S employees, agents, and SANDVIK MINING AND CONSTRUCTION OY
distributors and other representatives) agree that all monetary claims not
and shall reimburse to SANDVIK MINING AND exceeding one hundred thousand U.S.
CONSTRUCTION OY any and all sums that Dollars (USD 100,000) may be brought
SANDVIK MINING AND CONSTRUCTION OY may be before the general courts of Finland or
obligated to pay on the basis of such any other competent jurisdiction.
claims, whether for personal injury or
damage to property caused by the PRODUCTS
while the PRODUCTS are in the possession
of the PURCHASER or due to any of the
events or circumstances described above in
this clause 20.

21.FORCE MAJEURE

Neither SANDVIK MINING AND CONSTRUCTION OY

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 other circumstances
beyond the reasonable control of either
party (Force Majeure).

A circumstance referred to in this clause

which had occurred prior to the formation
of the Agreement shall give a right to
suspension only if its effect on the
performance of the Agreement could not be
reasonably foreseen at the time of
formation of the Agreement.

As soon as either party knows its

performance under the Agreement is likely
to be affected by force majeure the
affected party shall give written notice
to the other party setting out all
relevant details of the delay within the
earlier of: (a) two weeks of the time that
the party acquired knowledge of the cause
of the delay or failure or (b) one month
of the cause of the delay or failure
arising.

Regardless of what might otherwise follow

from the Agreement, either party shall be
entitled to terminate the Agreement by
notice in writing to the other party if
performance is suspended by Force Majeure
for more than six months.

22.CONSEQUENTIAL LOSSES

SANDVIK MINING AND CONSTRUCTION OY shall

have no liability towards the PURCHASER
for loss of production, loss of profit,
loss of use, loss of contracts or for any
consequential, economic or indirect loss
or damage whatsoever.

23.ARBITRATION AND APPLICABLE

LAW

These Conditions and the Agreement shall

be governed by and interpreted and
construed in accordance with the laws of
the country of the SANDVIK MINING AND
CONSTRUCTION OY entity which has entered
into the Agreement.
 07.06.2006 5 (6)

e) damage caused by the PURCHASER's Telefax number:

APPENDIX 1 failure to store, maintain or
operate the equipment properly, or _____________________________________
due to overloading or failure to pay
Contact person:
SANDVIK MINING AND proper attention to service and
operating instructions or caused by
CONSTRUCTION OY STANDARD accident; _____________________________________
E-mail address:
EQUIPMENT WARRANTY f) damage caused by negligence or failure
of PURCHASER to maintain the equipment _____________________________________
1. SANDVIK MINING AND CONSTRUCTION OY (as in accordance with SANDVIK MINING AND
defined in clause 1 of the General CONSTRUCTION OY’s maintenance
Conditions of Sale) warrants new drill recommendations, documents of
servicing may be required; 7. The obligation of SANDVIK MINING AND
rigs, LHDs, face shovels, dump trucks CONSTRUCTION OY under this warranty is
and automation systems supplied by limited at PURCHASER's option, to
SANDVIK MINING AND CONSTRUCTION OY to g) damages, which are caused by operating
be free from defects in material and conditions such as deep and/or
workmanship. aggressive water, dust, poor a) replace the part, free of charge, DDP
ventilation, where components, which (delivered, duty paid, Incoterms 2000)
are designed and manufactured at the place of business of the
2. The warranty periods for SANDVIK MINING AND CONSTRUCTION OY
according to industrial standards fail
prematurely; representative or
a) drill rigs twelve (12) months, except
hydraulic rock drills twelve (12) b) refund the part at its stock
months or one thousand (1000) h) any defects in materials provided by
the PURCHASER or any defects caused by replenishment order price.
percussion hours, whichever comes
first; design stipulated by the PURCHASER;
The warranty of a replaced or repaired
b) hydraulic rock drills mounted on used part expires at the same time as the
drill rig six (6) months or five i) any parts or components manufactured
or supplied by third parties or damage original warranty of the supplied
hundred (500) percussion hours, equipment.
whichever comes first; caused by such parts or components to
c) pneumatic rock drills six (6) months the PRODUCTS;
or ten thousand (10,000) drilled The PURCHASER shall retain the claimed
meters, whichever comes first, j) any costs such as labour, travel and part until claim is settled, for SANDVIK
similar costs or any transportation; MINING AND CONSTRUCTION OY's inspection
d) the warranty periods for LHDs, face and on request the alleged defective part
shovels and dump trucks are twelve shall be sent as directed by SANDVIK
(12) months or two thousand (2000) k) any indirect or consequential damage MINING AND CONSTRUCTION OY and at SANDVIK
operating hours, whichever comes including but not limited to loss of MINING AND CONSTRUCTION OY'S cost to a
first. profit, loss of production, loss of destination designated by SANDVIK MINING
e) onboard automation within the machine use of equipment. AND CONSTRUCTION OY. No part may be
(LHD, truck, drilling rig, etc.) returned to SANDVIK MINING AND
follows the warranty terms of the Warranty claims worth under EURO/USD fifty CONSTRUCTION OY without SANDVIK MINING AND
basic machine: twelve (12) months or (50) are not considered by SANDVIK MINING CONSTRUCTION OY'S prior written consent.
2000 operating hours, whichever comes After warranty handling, the title to the
AND CONSTRUCTION OY representative.
first. defective parts shall be transferred to
f) automation system excluding onboard SANDVIK MINING AND CONSTRUCTION OY.
automation: twelve (12) months after 4. Under no circumstances and in no
commissioning is completed (Site conditions, shall SANDVIK MINING AND
CONSTRUCTION OY's liability whether in Parts return addresses:
Acceptance Test completed and signed-
off) or eighteen (18) months after respect of one claim or in the
shipment of components, whichever aggregate, arising out of any Return parts to your local SANDVIK MINING
comes first. contract, exceed the purchase price AND CONSTRUCTION OY representative.
payable under the contract for such
part in which the liability shall APPEAL PERIOD FOR EACH SANDVIK MINING AND
All the above mentioned periods are arise.
calculated from the date of start-up CONSTRUCTION OY’S DECISION IN WARRANTY
inspection at the first end user. Under no CLAIM IS THIRTY (30) DAYS AS OF THE DATE
5. No claim will be considered, and this OF DECISION AFTER WHICH THE SAID DECISION
circumstances will the warranty period
warranty will be considered null and IS FINAL.
exceed eighteen (18) months from the
void, if other than GENUINE SANDVIK
delivery to PURCHASER. Any liability
MINING AND CONSTRUCTION OY SPARE PARTS 8. This warranty is in lieu of all other
whatsoever to any party other than the
are used in the equipment or if warranties or conditions express,
first end user is expressly disclaimed.
GENUINE SANDVIK MINING AND implied or statutory, including, but
CONSTRUCTION OY SPARE PARTS are not limited to warranties of
The unit start-up inspection form shall be dismounted and used in another PRODUCT
filled in and sent to SANDVIK MINING AND merchantability and fitness for a
than the PRODUCT originally supplied particular purpose. No other
CONSTRUCTION OY representative within to the PURCHASER by SANDVIK MINING AND
fourteen (14) days from start-up warranties express or implied are
CONSTRUCTION OY. given unless they are expressly given
inspection. The engine warranty
registration shall be completed with local by SANDVIK MINING AND CONSTRUCTION OY
6. Warranty claims should be sent in in writing.
engine representative. All engine
writing using a "SANDVIK MINING AND
warranties shall be handled with local
CONSTRUCTION OY Warranty Claim" form.
engine representative. This warranty shall not be suspended
Warranty claims concerning the failure
on the grounds of non-use,
in rock drills should also include the
The completed warranty registration form intermittent use or for any other
"Drifter Failure Report" form. The
must be received by SANDVIK MINING AND reason.
forms shall be completely filled in
CONSTRUCTION OY representative before any and be delivered to SANDVIK MINING AND
claims for warranty will be processed. CONSTRUCTION OY within fourteen (14)
days from the time when the PURCHASER
3. This warranty does not cover: discovers or should have discovered
the alleged defect. Only one failure
a) natural wear and tear of the should be reported for each claim. The
equipment, normal maintenance service warranty claim form should be sent to
such as engine tune-ups, adjustments your local SANDVIK MINING AND
and inspections or normal replacement CONSTRUCTION OY representative.
items (such as service filters), and
damage resulting therefrom; SANDVIK MINING AND CONSTRUCTION OY
representative:
b) consumables such as seals, filters,
hoses, v-belts, tyres, fittings, _____________________________________
screws, bolts, washers and rock drill Street address:
connecting pieces, chucks, diaphragms;
_____________________________________
c) parts which can be repaired or City and State:
corrected with minimum action such as
changing of seals, tightening or
_____________________________________
adjustment;
ZIP Code:
d) damage caused by breakage of the shank
adaptor (excluding material or _____________________________________
workmanship failure in genuine SANDVIK Country:
shank adaptor);
_____________________________________
Phone number:

_____________________________________
 07.06.2006 6 (6)

9. The obligation of SANDVIK MINING AND

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