Common use of Fee Reductions Clause in Contracts

Fee Reductions. Each Critical Milestone identifies a key project milestone that will be used to evaluate ACS’ delivery of the requested Services. The goal of identifying Critical Milestones is to support Symetra’s desire to manage ACS by monitoring and measuring actual performance against Symetra’s most-important business deadlines. The Fee Reductions for ACS’ failure to timely achieve any Critical Milestone shall be equal to the product of: (i) the Annual At-Risk Amount, multiplied by (ii) the Weighting Factor (set forth in the attached Table 2) for the Critical Milestone that was missed. For example, given the following assumptions: (a) the Annual Services Fees are [***] Dollars ($[***]); (b) the total Annual At-Risk Amount therefore equals [***] Dollars ($[***]) ([***] percent ([***]%) of the Annual Services Fees); and (c) a Critical Milestone failure occurs with respect to a Critical Milestone having a [***] percent ([***]%) Weighting Factor, Fee Reductions would be calculated as follows: Annual At-Risk Amount $[***] times times Critical Milestone Weighting Factor [***]% Fee Reduction $[***], which does not exceed the monthly Fee Reduction cap of [***] percent ([***]%) of the Annual At-Risk Amount (in this case, $[***]). If the Fee Reduction had been greater than $[***] (either individually or in the aggregate when considering all Fee Reductions for that month), such Fee Reductions would be capped at $[***]. There is no earn back option associated with Critical Milestones. Additional Corrective Assessments may apply. Portions marked [***] have been omitted pursuant to a Confidential Treatment Request by Symetra Financial Corp., this information has been filed separately with the Securities and Exchange Commission. Table of Contents

Appears in 2 contracts

Samples: Information Technology Services Agreement (Symetra Financial CORP), Information Technology Services Agreement (Symetra Financial CORP)

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Fee Reductions. Each Critical Milestone SLA identifies a key project milestone performance measures that will be used to evaluate ACS’ delivery of the requested Services. The overriding goal of identifying Critical Milestones in developing SLAs is to support Symetra’s desire to manage ACS by monitoring and measuring actual performance against with respect to Symetra’s most-important business deadlinesrequirements. The Fee Reductions for ACS’ failure to timely achieve any Critical Milestone SLA shall be equal to the product of: (i) the Annual At-Risk Amount, multiplied by (ii) the Weighting Factor (set forth in the attached Table 21) for the Critical Milestone SLA that was missed. For example, given the following assumptions: (a) the Annual Services Fees are [***] Dollars ($[***]); (b) the total Annual At-Risk Amount therefore equals [***] Dollars ($[***]) ([***] percent ([***]%) of the Annual Services Fees); and (c) a Critical Milestone an SLA failure occurs with respect to a Critical Milestone an SLA having a [***] percent ([***]%) Weighting Factor, Fee Reductions would be calculated as follows: Annual At-Risk Amount $[***] times times Critical Milestone SLA Weighting Factor [***]% Fee Reduction $[***], which does not exceed the monthly Fee Reduction cap of [***] percent ([***]%) of the Annual At-Risk Amount (in this case, $[***]). If the Fee Reduction had been greater than $[***] (either individually or in the aggregate when considering all Fee Reductions for that month), such Fee Reductions would be capped at $[***]. There is no earn back option associated with Critical Milestones. Additional Corrective Assessments may apply. Portions marked [***] have been omitted pursuant to a Confidential Treatment Request by Symetra Financial Corp., this information has been filed separately with the Securities and Exchange Commission. Table of ContentsContents The earn-back rights described in Section 4 below would apply to the missed SLA.

Appears in 2 contracts

Samples: Information Technology Services Agreement (Symetra Financial CORP), Information Technology Services Agreement (Symetra Financial CORP)

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