Common use of Service Level Credits Clause in Contracts

Service Level Credits. Upon the occurrence of any Service Level Failure, Vendor shall issue to the State of Iowa a credit in the amount set forth in Section 5 (Service Levels) (“Service Level Credit”). If more than one (1) Service Level Failure has occurred in a single month, the sum of the corresponding Service Level Credits shall be credited to the State of Iowa. In no event will the aggregate of all Service Level Credits arising as a result of failures by Vendor to perform its Support Services obligations in any month exceed 25% of the amount of the Support Services fees otherwise payable for the most recent three (3) month period except for instances of Service Level Credits associated failures on “Critical” and “High” Resolution Time service levels which will not exceed 100% of the amount of the said Support Services fees. Vendor shall notify the State of Iowa in writing if the State of Iowa becomes entitled to a Service Level Credit, which notice shall be included in the monthly performance reports as described in this Exhibit. The total amount of Service Level Credits that Vendor will be obligated to pay to the State of Iowa, with respect to Service Level Failure(s) occurring each month shall be reflected on the invoice issued in the second month following the month during which the Service Level Failure(s) giving rise to such Service Level Credit(s) occurred. Notwithstanding the foregoing, the calculation of such Service Level Credit(s) shall be based on the credit amounts in effect, and the Support Services fees for, the month during which the Service Level Failure occurred. For example, the amount of Service Level Credits payable with respect to Service Level Failures occurring in August shall be set forth in the invoice issued in October, but shall be calculated using August data. In the event the State of Iowa prepays for any Services more than one month in advance, Vendor will issue refunds or credits to the State of Iowa at the State’s sole discretion, within __ days of the end of the month in which the Service Level Failure occurred.

Service Level Credits. Upon For the occurrence first Service Level Failure in each calendar year during the term of the Agreement, no Service Level Credit will be due unless the Service Level Failure is a Critical Service Level Failure. For any second or more Service Level Failures during the same calendar year, Service Level Credits will be due as follows. In the event of (i) any Critical Service Level Failure, Vendor or (ii) a second or subsequent Service Level Failure in the same calendar year during the term of the Agreement, the corresponding Service Level Credit shall issue be applied against the Monthly Charges owed by Service Provider in the month during which the Service Level Failure occurs. Service Level Credits will be reflected on the invoice following the month in which Agreement Confidential Version 12.01.10 NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[****]” ARE SUBJECT TO A CONFIDENTIAL TREATMENT REQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THIS COMPANY’S CONFIDENTIAL TREATMENT REQUEST. the Service Level Failure giving rise to the State of Iowa a credit in the amount set forth in Section 5 (Service Levels) (“Service Level Credit”)Credits occurs. If more than one (1) Service Level Failure has occurred occurs in a single calendar month, the sum of the corresponding Service Level Credits shall be credited to Service Provider; however, the State of Iowa. In no event will the aggregate of all Service Level Credits arising as a result of failures by Vendor to perform its Support Services obligations in any month exceed 25% of the amount of the Support Services fees otherwise payable for the most recent three (3) month period except for instances of Service Level Credits associated failures on “Critical” and “High” Resolution Time service levels which will not exceed 100% of the amount of the said Support Services fees. Vendor shall notify the State of Iowa in writing if the State of Iowa becomes entitled to a Service Level Credit, which notice shall be included in the monthly performance reports as described in this Exhibit. The total amount of Service Level Credits that Vendor will be obligated to pay to the State of Iowa, with respect credited to Service Level Failure(s) occurring each month shall be reflected on the invoice issued in the second month following the month during which the Service Level Failure(s) giving rise to such Service Level Credit(s) occurred. Notwithstanding the foregoing, the calculation of such Service Level Credit(s) shall be based on the credit amounts in effect, and the Support Services fees for, the month during which the Service Level Failure occurred. For example, the amount of Service Level Credits payable Provider with respect to Service Level Failures occurring in August a single calendar month shall be set forth not exceed, in the invoice issued in Octoberaggregate, but shall be calculated using August data. In the event the State of Iowa prepays for any Services more than one month in advance, Vendor will issue refunds or credits to the State of Iowa at the State’s sole discretion, within __ days [****] of the end of the month in which Monthly Charges for that month. The parties agree that the Service Level Failure occurredCredits are a reasonable estimation of the damages that would be incurred as a result of a Service Level Failure, and the Service Level Credits and the right to terminate the Agreement pursuant to Section E below shall be Service Provider’s sole remedies for Service Level Failures under this Agreement.

Service Level Credits. Upon Failure to achieve any of the occurrence of any service levels described in Section 2 shall constitute a “Service Level FailureFailure(s)” and DOE shall be entitled to the following remedies: For a first offense with respect to any particular Performance Standard, Vendor shall issue will be issued a warning by SO and a plan will be developed to improve the State of Iowa Service Level Failure within thirty (30) days; For a credit in the amount set forth in Section 5 second offense with respect to any particular Performance Standard, Vendor will be liable to DOE for a one percent (Service Levels1%) (rebate on its prior month’s purchases, “Service Level Credit”). If more than one ; For a third offense with respect to any particular Performance Standard, Vendor will be liable to SSO for a two percent (12%) rebate on its prior month’s purchases, “Service Level Failure has occurred in Credit”; For a single fourth offense or any subsequent offense with respect to any particular Performance Standard, Vendor will be liable to DOE for a three percent (3%) rebate on its prior month’s purchases, “Service Level Credit.” Service Level Credits. Upon the accrual of one or more Service Level Credits, the sum of the corresponding Service Level Credits shall be credited to the State of Iowa. In no event will the aggregate of all Service Level Credits arising as a result of failures by Vendor to perform its Support Services obligations in any month exceed 25% of the amount of the Support Services fees otherwise payable for the most recent three (3) month period except for instances of Service Level Credits associated failures on “Critical” and “High” Resolution Time service levels which will not exceed 100% of the amount of the said Support Services feesDOE. Vendor shall notify the State of Iowa in writing DOE if the State of Iowa it becomes entitled to a Service Level Credit, which notice shall be included in the monthly performance reports as described in this ExhibitSection 3. The total amount of Service Level Credits that Vendor will be obligated to pay to the State of Iowa, with respect to DOE for Service Level Failure(s) occurring each month shall be reflected on the invoice issued in the second month following the month during which the Service Level Failure(s) giving rise to such Service Level Credit(s) occurred. Notwithstanding In the foregoing, the calculation of such event DOE does not owe Vendor for any Deliverables for any (3) month period during which it is entitled to a Service Level Credit(s) shall be based on the credit amounts in effect, and the Support Services fees for, the month during which the Service Level Failure occurred. For example, the amount of Service Level Credits payable with respect to Service Level Failures occurring in August shall be set forth in the invoice issued in October, but shall be calculated using August data. In the event the State of Iowa prepays for any Services more than one month in advance), Vendor will issue refunds or credits a refund to the State of Iowa at the State’s sole discretion, within __ days of the end of the month in which the Service Level Failure occurredDOE.

Service Level Credits. Upon the occurrence of any Service Level Failure, Vendor shall issue to the State of Iowa a credit in the amount set forth in Section 5 (Service Levels) (“Service Level Credit”). If more than one (1) Service Level Failure has occurred in a single month, the sum of the corresponding Service Level Credits shall be credited to the State of Iowa. In no event will the aggregate of all Service Level Credits arising as a result of failures by Vendor to perform its Support Services obligations in any month exceed 25% of the amount of the Support Services fees otherwise payable for the most recent three (3) month period except for instances of Service Level Credits associated failures on “Critical” and “High” Resolution Time service levels which will not exceed 100% of the amount of the said Support Services fees. Vendor shall notify the State of Iowa in writing if the State of Iowa becomes entitled to a Service Level Credit, which notice shall be included in the monthly performance reports as described in this Exhibit. The total amount of Service Level Credits that Vendor will be obligated to pay to the State of Iowa, with respect to Service Level Failure(s) occurring each month shall be reflected on the invoice issued in the second month following the month during which the Service Level Failure(s) giving rise to such Service Level Credit(s) occurred. Notwithstanding the foregoing, the calculation of such Service Level Credit(s) shall be based on the credit amounts in effect, and the Support Services fees for, the month during which the Service Level Failure occurred. For example, the amount of Service Level Credits payable with respect to Service Level Failures occurring in August shall be set forth in the invoice issued in October, but shall be calculated using August data. In the event the State of Iowa prepays for any Services more than one month in advance, Vendor will issue refunds or credits to the State of Iowa at the State’s sole discretion, within __ days of the end of the month in which the Service Level Failure occurred.