Zero PPM

All suppliers must maintain Lot Acceptance Rates (LAR) of typically ninety-nine percent (to be negotiated with each contract), (ii) a PPM (Parts Per Million) rate of typically no more than 10PPM in accordance with accepted industry practices , and (iii) zero quality spills. A quality spill is defined as a significant Sensata plant disruption and/or the need to sort product. The supplier agrees to provide immediate notification of any possible quality spills. In the event of a spill, on-site containment is required at the suppliers expense.

If a supplier fails to maintain any of the minimum ratings outlined above, and fails to correct such deficiencies within thirty (30) days after notification from Sensata, then Sensata may immediately terminate existing orders hereunder, in whole or in part, without any liability and will seek and expect suppliers to be financially responsible for all costs incurred as a result.