Common use of Service Level Failures and Remedies Clause in Contracts

Service Level Failures and Remedies. In the event of a Service Level Failure, Administrate shall issue a credit to Customer equal to five percent (5%) of the monthly fees for the Software Services for such Service Period for each full 30 minutes by which the Availability Requirement has been missed during such Service Period (each a “Service Credit”). For example, if the Availability Requirement was missed by 75 minutes, the Service Credit would be 10% of the monthly fees for the Software Services during such Service Period. Notwithstanding the foregoing, Administrate has no obligation to issue any Service Credit unless (i) Customer reports the Service Failure to Administrate immediately upon becoming aware of it, and (ii) requests such Service Credit in writing within fourteen (14) days of the Service Level Failure. The Customer will only be eligible for a Service Credit if the request is made in writing and contains at least the following information: (a) name of Customer and name of the contact person, (b) date and time when the unavailability was determined, (c) description of the observed unavailability, (d) the manner in which the unavailability has been determined, (e) evidence (such as screen prints), if available, and (f) scope of the unavailability (e.g. duration). Administrate will consider every request and will reply in writing within 14 days after receipt of Customer’s request. Administrate may agree fully, in part or not at all with Customer’s request. If Administrate does agree in part or not at all, Administrate’s response shall be accompanied by a clear explanation for its determination. Any Service Credit payable to Customer under this Agreement will be issued to Customer in the calendar month following the Service Period in which the Service Level Failure occurred. This Section 2 sets forth Administrate’s sole obligation and liability and Customer’s sole remedy for any Service Level Failure.