Common use of Financial Consequences for Failure to Meet Service Objectives Clause in Contracts

Financial Consequences for Failure to Meet Service Objectives. The following sections define financial penalties for non-performance related to service objectives within the Motricity Span of Control. These non-performance penalties set forth in this Section 8 will apply commencing on the date of commercial launch of the Services, unless the parties agree in writing to delay the application of non-performance of penalties for a particular Service or Services. The total financial penalties owed to AT&T under the Agreement will be subject to the SLA penalty cap set forth in Table 7 below. For purposes of clarity the SLA penalty cap under this Exhibit G-2 is not in addition to any other SLA exhibit. Table 7, Penalty Cap Phase-In Schedule For the purposes of the SLA, Motricity “Total Revenue” shall be calculated as follows: the sum of the *** For further detail regarding the non-performance penalties described below, reference SLA Penalty Calculation Model (Appendix E) below. For any month for which there is an Availability and a Latency penalty due for the same period of time, Motricity shall be required to pay only the Availability penalty and the Latency penalty shall be waived when mutually agreed that there was a common or related cause. Motricity will deduct penalties for non-performance from the subsequent month’s invoice to AT&T for the Services.

Financial Consequences for Failure to Meet Service Objectives. The following sections define financial penalties for non-performance related to service objectives within the Motricity Span of Control. These non-performance penalties set forth in this Section 8 will apply commencing on the date of commercial launch of the Services, unless the parties agree in writing to delay the application of non-performance of penalties for a particular Service or Services. The total financial penalties owed to AT&T under the Agreement will be subject to the SLA penalty cap set forth in Table 7 below. For purposes of clarity the SLA penalty cap under this Exhibit G-2 is not in addition to any other SLA exhibit. Table 7, Penalty Cap Phase-In Schedule For the purposes of the SLA, Motricity “Total Revenue” shall be calculated as follows: the sum of the *** For further detail regarding the non-performance penalties described below, reference SLA Penalty Calculation Model (Appendix E) below. SLA Penalty Cap means the percentage of Total Revenue for the month. For any month for which there is an Availability and a Latency penalty due for the same period of time, Motricity shall be required to pay only the Availability penalty and the Latency penalty shall be waived when mutually agreed that there was a common or related cause. Motricity will deduct penalties for non-performance from the subsequent month’s invoice to AT&T for the Services.