Administrative Services Agreement
During the year ended December 31, 2009, the Company entered
into a fee for service arrangement with its Parent for ongoing consulting, management advisory and other services (the Administrative Services Agreement), effective January 1, 2008. During 2009, the Company advanced $266 to Sensata
Investment Company S.C.A. prior to executing the Administrative Services Agreement. The Company incurred $588 related to the Administrative Services Agreement during the year ended December 31, 2009, of which $322 was paid in cash and $266 was
settled by offsetting existing amounts due from the Parent.
Other Arrangements with the Investor Group and its Affiliates
For the years ended December 31, 2009, 2008 and 2007, the Company recorded $1,370, $1,467 and $1,782, respectively, of expenses in Selling, general and administrative expense for legal services
provided by one of its shareholders. During the years ended December 31, 2009, 2008 and 2007, the Company made payments of $2,086, $772 and $2,682, respectively, to this shareholder. For the year ended December 31, 2007, the Company
capitalized $1,284 as purchase price. As of December 31, 2009 and 2008, amounts due to this shareholder totaled $105 and $821, respectively.
During 2009, certain executive officers and other members of management of the Company invested in a limited partnership along with its
Sponsors. The limited partnership was formed with the intent to invest in the Companys bonds among other potential investment opportunities.
Transition Services Agreement
In connection with the 2006 Acquisition, the Company entered into an administrative services agreement with TI (the Transition Services
Agreement). Under the Transition Services Agreement, TI agreed to provide the Company with certain administrative services, including (i) real estate services; (ii) facilities-related services; (iii) finance and accounting
services; (iv) human resources services; (v) information technology system services; (vi) warehousing and logistics services; and (vii) record retention services. The obligations for TI to provide those services vary in duration,
and expired no later than April 26, 2007, except for certain information technology services which expired no later than April 26, 2008. The amounts to be paid under the Transition Services Agreement generally are based on the costs
incurred by TI providing those administrative services, including TIs employee costs and out-of-pocket expenses. For the years ended December 31, 2008 and 2007, the Company recorded $217 and $10,504, respectively, in Selling, general, and
administrative expense related to these administrative services. The Company is no longer receiving any services provided under the Transition Services Agreement.
Cross License Agreement
In connection with the 2006 Acquisition, the Company entered
into a cross license agreement with TI (the Cross License Agreement). Under the Cross License Agreement, the Company and TI grant each other a license to use certain technology used in connection with the other partys business.
17. Commitments and Contingencies
The Company has outstanding obligations associated with its
capital lease and other financing obligations (refer to Note 11).