Common use of Calculation of Service Credits Clause in Contracts

Calculation of Service Credits. For each Performance Failure the all-inclusive monthly amount payable to the Service Provider shall be reduced by the applicable Service Credits. If a single triggering event directly causes two (2) or more Performance Failures in any month; and but for such event, none of such Performance Failures would have occurred, then SARS shall be entitled to receive only a single Service Credit for a single Performance Failure (which SARS may select in its sole discretion). Service Credits arising in respect of the last month of the Agreement term shall be withheld out of the final payment due. Applicable Service Credits will be levied against the first monthly invoice following the month in which the Performance Failure occurred. SARS may, at its election and with prior notice to the Service Provider, cause the Service Credit to be set off against the Service Provider’s payment.