Common use of Quality Indicators Clause in Contracts

Quality Indicators. 5.2.1 The quality of the goods provided by Party B shall meet at least the requirements of the following quality indicators. If the following indicators cannot be achieved, Party A shall impose sanctions on Party B in accordance with the relevant provisions of Annex II. 5.2.2 Calculation method: LAR = (sampling qualified batch/sampling inspection batch) *100% RIDPPM = (number of defects/test number) *1000000 5.2.3 Quality indicators are based on the annual KPI indicators of Party A. In order to ensure the long-term continuous improvement of the quality of goods, to stabilize and improve the quality of goods, Party B needs to sign annual quality indicators to Party A according to the annual indicators of Party A.