Common use of Compensation and penalty rules Clause in Contracts

Compensation and penalty rules. If the Guaranteed Availability of the Software measured over a period of 3 months drops below the guaranteed level, Timewax will give a discount. The total amount to be paid by Timewax as discount will relate to the Client’s monthly fee. For the determination of the discount the graduated scale below is used. Upper limit Lower limit Discount 100.0% 99.5% None 99.4% 98.0% 1 Month 97.9% 96.0% 2 Months 95.9% 0.0% 3 Months The discount is applicable to the amount related to the 3-monthly period in which the change of the service level has occurred. Settlement will be settled with the payment of the first following period. Annex A: Definitions of concepts This annex contains the definitions of all the concepts used in this SLA. Part of these definitions agree with the definitions from article 1 of Timewax's General Conditions. For the sake of completeness these definitions are included below.

Compensation and penalty rules. If the Guaranteed Availability of the Software measured over a period of 3 months drops below the guaranteed level, Timewax will give a discount. The total amount to be paid by Timewax as discount will relate to the Client’s monthly fee. For the determination of the discount the graduated scale below is used. Upper limit Lower limit Discount 100.0% 99.5% None 99.4% 98.0% 1 Month 97.9% 96.0% 2 Months 95.9% 0.0% 3 Months The discount is applicable to the amount related to the 3-monthly period in which the change of the service level has occurred. Settlement will be settled effected with the payment of the first following period. Annex A: Definitions of concepts This annex contains the definitions of all the concepts used in this SLA. Part of these definitions agree with the definitions from article 1 of Timewax's General Conditions. For the sake of completeness these definitions are included below.