Kärcher North America Inc., 750 W. Hampden Avenue, Suite 400, Englewood CO 80110

Supplier code: Quality Target Agreement KNA QA ……………….. 10/29/2010 between Company Kärcher North America Inc., 750 W. Hampden Avenue, Suite 400, Englewood CO 80110 (Including all other KNA locations) and Company

USA Quality is a central factor in competition, and, it goes without saying, a commitment to our customers all over the world. You as our supplier have a considerable influence on the quality of the Kärcher products. Due to this reason we would like to conclude a quality target agreement on the basis of our ppm-rating with you. We would like to establish a limit of 1000 PPM. If required the figure will be renewed at the annual price negotiation. If the error proportion is exceeded we may require improvement measures. The agreement of ppm-figures doesn’t signify a quality level accepted by Kärcher and leaves the contractual quality of the products delivered to Kärcher unaffected. All identified non-conformed material won’t be accepted and are at the expense of the supplier. Thereby this “No-error-quality” is an established condition of all suppliers. This quality target agreement is valid for one year unless a new agreement is written. PPM describes the number of non-conform units of each one million parts delivered. This is determined according to the following formula. FE  FE ppm  WE assembly 1.000.000 1 Mio. FEWE:number of complained parts detected in incoming inspection total delivered quantity FEassembly: number of complained parts detected in assembly Only complaints with a classification are considered in the calculation of the ppm figure. Classification fault caused by KÄRCHER-organisation  Order information not up to date  other mistakes in communication with suppliers mainly caused by Kärcher accepted complaints  minor non conformity, no decrease of the function,  goods will be used for production without rework and selection

Acceptance in spite of failures  Due to capacity bottlenecks goods are urgently required.  Failure according to “accepted complaints” won’t be accepted furthermore. Rework at supplier's expense Partly scrapping at supplier's expense Complete scrapping at supplier's expense Partly return of goods at supplier's expense Complete return at supplier's expense

Kärcher will inform you in writing about each complaint and classification. If you don’t agree to our complaint please give us your written statement within 5 working days.

Englewood, 19.05.2018 ...... Kärcher North America Inc.

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