Service credits are compensation mechanisms outlined in a contract where the service provider offers credit to the customer for any failure to meet agreed-upon performance standards or service levels. These credits serve as a financial remedy, incentivizing the provider to maintain high-quality service while acknowledging and compensating for any deficiencies.
“Service Credits” An instrument which can be exchanged for services and products as listed in the Rate Card.
SERVICE CREDITS. Service Credit Minimum Commitment. During the Term, Master Affiliate agrees to purchase [***] (the “Minimum Commitment”) at the rates specified in the Rate Card.
Request of Service Credits. (a) To request Service Credits, the Master Affiliate must provide to the Company, no later than [***] after the beginning of each calendar quarter, a service credit request form (the “Request Form”), as provided in Schedule C. (b) No later than [***] after the receipt of the Request Form, the Company must notify Master Affiliate of its approval of the Service Credits specified in the Request Form (the “Approved Service Credits”). By providing such approval, the Company acknowledges that it will make available the Approved Service Credits for usage by Master Affiliate or its Subs during the current quarter. (c) Before the end of the Term, the Company commits to approving the amount of Service Credits specified as the Minimum Commitment. (d) No Service Credits may be requested during the last [***] of the Term.
5.3. Terms of Approved Service Credits (a) Any Approved Service Credits allocated to the Rate Card Category of “Advertising Credits” will require the Company to provide to the Master Affiliate a purchase agreement within [***]. Advertising Credits will be immediately transferred upon the execution of such purchase agreement. (b) Any Approved Service Credits allocated to the Rate Card Category of “Free Credits” must be used by the end of the quarter during which they were approved. Master Affiliate will be invoiced for the total Approved Service Credits allocated to the Rate Card Category of “Free Credits” regardless of the amount of Free Credits used during the quarter in which they were approved. There are no refunds or credits on Free Credits. (c) Any Approved Service Credits allocated to the Rate Card Category of “Print and Distribution of Marketing Collateral” must be used by the end of the quarter during which they were approved. Master Affiliate will be invoiced for the total Approved Service Credits allocated to the Rate Card Category of “Print and Distribution of Marketing Collateral” regardless of the amount of marketing collateral printed or distributed during the quarter in which they were approved. There are no refunds or credits on printing and distributing marketing collateral. (d) Any Approved Service Credits allocated to “Software Development”, “Design Work”, or “Account Management” that are not used in the quarter in which they were approved shall automatically rollover and be available in the subsequent quarter. Any Approved Service Credits that are rolled over from previous quarters shall be included in the next Request Form submitted by the Master Affiliate and may be allocated to any Rate Card Category.
5.4. Assignment of Service Credits (a) Master Affiliate has the right to assign any Approved Service Credits to its Subs. Master Affiliate must notify the Company within [***] of any such assignment. (b) Any Approved Service Credits assigned to a Sub must be used within [***] from the date they were assigned to the Sub, regardless of the Rate Card Category they were allocated. (c) In each assignment notification, Master Affiliate must set forth the following information: (i) the Sub to whom the Approved Credits were assigned, including the contact person and contact details for the same with whom Company will work on the services; (ii) the number of Approved Service Credits being assigned to the Sub and to which Rate Card Categories. (d) The total number of Approved Service Credits assigned to any Sub will be deducted from the Master Affiliate’s Approved Service Credits.
5.5. Usage of Service Credits (a) Master Affiliate must inform Company of it or its Sub’s desire to utilize any Approved Service Credits using the processes as set forth by Company for such purpose. (a) In each usage notification, Master Affiliate must set forth the following information: (i) the recipient of the services (e.g., Master Affiliate or an identified Sub); (ii) the specific Rate Card Category for which the Approved Service Credits are being utilized and the number of Approved Service Credits being used for the specific Rate Card Category. (b) Company will thereafter have a reasonable amount of time to process the usage request, during which time the Approved Service Credits used for the service request will be deducted from Sub’s assigned Approved Service Credits or the Master Affiliate’s Approved Service Credits. (c) The Company has no obligation to provide any services or deliver any products beyond the amount of Approved Service Credits. Any additional service or products requested will require additional approval as set forth in clause 5.2(b). (d) Upon receipt of usage notification for Approved Service Credits the Company, or its affiliate or assignee, shall perform the service and/or deliver the product for according to the usage notification utilizing business reasonable efforts and subject to availability, this Agreement, the Sub-Agreements, and Applicable Law.
Payment for Approved Service Credits. (a) At the last Business Day of each quarter, the Company shall submit to the Master Affiliate an itemized invoice for the payment of the current quarters Approved Service Credits, as per the terms set forth in section 5.3. (b) Master Affiliate will have [***] after the submission of the invoice to make payment. (c) Upon termination of this Agreement, the Master Affiliate shall pay for all unused Approved Service Credits, including Approved Service Credits rolled over from previous quarters as set forth in clause 5.3(d).
Service Credits In the event MeetKai is unable to meet the availability target for a calendar month ROI shall be entitled to a return of a portion of the Preferred Stock issued as Fees (“Service Credits”) from MeetKai. MeetKai agrees to hold and not convert a portion of the Preferred Stock it receives as the Fees (the “Holdback Shares”) until the end of the eleventh (11th) month after the Fees are paid (the “Holdback Period”) in the event it needs to issue Service Credits to ROI. The Amount of Holdback Shares shall be ten percent (10%) during the first year of the Term (10,000 shares of Preferred Stock), five percent (5%) during the second year of the Term (1,500 shares of Preferred Stock), three percent (3%) during the third year of the Term (600 shares of Preferred Stock) and three percent (3%) during the fourth and each subsequent year of the Term (300 shares of Preferred Stock). As the Preferred Stock will be issued in book entry format by ROI, MeetKai acknowledges and agrees that MeetKai shall have no right, and ROI no obligation, to convert any of the Holdback Shares prior to the completion of the Holdback Period. Service Credits shall be paid by MeetKai to ROI, whereby ROI shall cancel the corresponding number of Holdback Shares equal to the value of the Service Credits, upon delivery by ROI of written notice to MeetKai with specificity (including calculations) regarding the failure to meet the required service level requirements. In the event that the number of Holdback Shares are insufficient to satisfy Service Credits, ROI shall have the right, in its sole discretion, to (i) cancel a corresponding number of other shares of Preferred Stock issued to MeetKai as the Fees that are still outstanding, if any, (ii) cancel a corresponding number of shares of Preferred Stock to be issued to MeetKai in a subsequent year as the Fees, or (iii) a combination of (i) and (ii). In no event shall MeetKai be required to pay Service Credits in cash or any other manner other than by a return/cancellation of Preferred Stock.
“Service Credits” shall mean means the sums referred to below as being payable by MeetKai to ROI in response to MeetKai’s failure to meet a service level in accordance with this SOW.
Effective for the first quarter of 2023, we no longer record prior service credits to our individual business units or the corresponding charge to Corporate and Other, and segment operating expenses were recast to remove prior service credits from our historical reporting. Prior service credits are, and will continue to be, recorded as other income in our consolidated income statement in accordance with GAAP. This recast increased Communications segment operations and support expenses by approximately $2,400 for full-year 2022. Correspondingly, this recast lowered administrative expenses within Corporate and Other, with no change on a consolidated basis.
Where Performance Standards are not met in any month, Service Credits shall arise. Service Credits shall be calculated in accordance with the provisions of this Exhibit C and / or the relevant Sales Order. Where Service Credits arise, Jumio shall promptly and clearly report to the Customer the volume of such Service Credits and how they were calculated.
Service Credits shall only apply as of the first month in which the Monthly Minimum fees shall begin to apply (in accordance with paragraph 2.5 of Schedule B of the Agreement). Service Credits shall only apply if the Supplier is unable to meet the targets set out herein with respect to P1 – Critical Incidents. Subject always to the provisions of Sections 10, 11 and 12 below, the service credits shall be off-set against any future service fees otherwise due to the Supplier under the Agreement. The Supplier’s entire liability in respect of any failure on its part in relation to any downtime shall be payment of the above service credits pursuant to this Schedule. The maximum service credit payable to the Customer in any given calendar year shall be capped at the average Monthly Revenue Share (percentage of GGR) the Supplier has received for the period of the 3 months preceding to the event giving rise to the claim for service credits.
Catenis uses a credit system called “Catenis Service Credits” (Credits) to control the expense it incurs by using the bitcoin blockchain. It is an internal system of accounting for each customer’s account. Credits are not controlled via a central database for accounting as this would make the system centralized and vulnerable to a coordinated centralized attack rendering all connectivity points inoperable. To keep the system resilient and decentralized these credits are instead encoded (in binary) within the blockchain (in a technical part of the blockchain called inputs/outputs).
Catenis service credits are destroyed and used as a unit of account for when bitcoins are spent by the system to pay for a Catenis paid service (i.e.: logging to the blockchain, sending a transaction message, etc.). The cost of the service is expressed in bitcoins because the bitcoin blockchain fees are paid in bitcoins. These fees are not fixed and fluctuate based on the price of bitcoin and the fee market. The system takes the current BCOT tokens price (in dollars) and the current bitcoin price (also in dollars) and calculates the amount of Catenis service credits required to pay the service cost. By using this proprietary technology, we can achieve decentralization for a system of accountability that typically requires a centrally vulnerable database.
Service Credits 1. Commencement. Accrual of the Service Credits set forth in this Section 5 will begin sixty (60) days after the Service is deployed on a live, production basis to Company Customers. 2. Notification Procedures. When Company learns of Downtime or any other nonconformity with service levels set forth herein, Company will promptly notify Promontory Network’s Support Desk in accordance with Section 6.1 and provide any supporting information reasonably requested by Promontory Network. Promontory Network reserves the right to reconcile such notifications with records of Promontory Network and/or the Account Processor. 3. Service Credit for Downtime. If Downtime (as a percentage of total On-Line Hours) in any one-month period exceeds one percent (1%), Company will receive the following Service Credits for Downtime: (a) If Downtime in such one-month period is greater than one percent (1%), but not greater than two percent (2%), Promontory Network will pay to Company in accordance with Section 5.7 all Service Credits received by Promontory Network from the Account Processor in respect of such Downtime, which cumulatively will be at least 0.025 BPS. (b) If Downtime in such one-month period is greater than two percent (2%), Promontory Network will pay to Company in accordance with Section 5.7 all Service Credits received by Promontory Network from the Account Processor in respect of such Downtime, which cumulatively will be at least 0.050 BPS. 4. Service Credit for Response Time. If, solely within the Account Processor’s network, average Response Time, during any period of ten (10) consecutive Processing Days, exceeds five (5) seconds, or maximum response time exceeds twelve (12) seconds for Real-Time Tools, Promontory Network will pay to Company in accordance with Section 5.7 all Service Credits due to Promontory Network from the Account Processor in respect of such nonconformity, which cumulatively will be at least 0.050 BPS. 5. Service Credit for Report Delivery. If on any Processing Day ninety-five percent (95%) of Reports are not stored and available on the Account Processor’s print server ready for transmission by the final deadlines set forth in Schedule 1, then Company will receive a Service Credit for Report Delivery calculated as follows: (a) If the requirement for availability of 95% of Reports as set forth in Section 4.5 is not met on only one Processing Day during a one-month period, Promontory Network will pay to Company in accordance with Section 5.7 all Service Credits due to Promontory Network from the Account Processor in respect of such nonconformity for Company, which cumulatively will be at least 0.025 BPS. (b) If the requirement for availability of Reports as set forth in Section 4.5 is not met on more than one Processing Day during a one-month period, Promontory Network will pay to Company in accordance with Section 5.7 all Service Credits due to Promontory Network from the Account Processor in respect of such nonconformity for Company, which cumulatively will be at least 0.050 BPS.
5.6. Service Credit For File Transmission. If the requirement for transmission of all Data Files by the deadlines specified in Schedule 3 as set forth in Section 4.6 is not met in any calendar month, Promontory Network will pay to Company in accordance with Section 5.7 (i) 0.075 BPS plus (ii) the amount, if any, by which the Service Credits due to Promontory Network from the Account Processor in respect of such nonconformity for Company exceed 0.075 BPS. 5.7. Application of Service Credits. The Service Credits set forth in this SLA will be the sole and exclusive remedy of Company, and the sole and exclusive liability of Promontory Network and any Processor, for any nonconformity with service levels or other provisions of this SLA. Subject to all limitations of liability in the DSA, all Service Credits will be paid by Promontory Network to Company in the month following the month in which they become due and are cumulative, provided that, notwithstanding anything to the contrary herein, no Service Credit will be due for any service level nonconformity that has not been reported to Promontory Network by Company in accordance with this SLA.
Service credit is a form of compensation provided to a customer when a service provider fails to meet stipulated performance standards outlined in a Service Level Agreement (SLA). These credits typically take the form of financial rebates or discounts for future services, and their purpose is to incentivize the service provider to uphold high-quality service levels while offering some level of recompense to the customer in cases of service disruptions or performance failures.
Service credits should be utilized when:
These credits act as a mitigating factor, balancing the service provider’s accountability and the customer’s satisfaction.
When writing service credits into a contract or SLA, consider the following:
Identify Performance Metrics: Clearly define the performance standards or service levels that will trigger service credits if unmet. This could include uptime percentages, response times, or issue resolution times.
Define Credit Amounts: Specify the financial or service-based credit amounts due to the customer if performance metrics are not met. This can be a percentage of the service fees for the affected period.
State Redemption Process: Clarify the process for customers to claim or redeem service credits, including any necessary documentation or time frames for submitting claims.
Outline Exclusions and Limitations: Indicate any scenarios where service credits would not apply, such as during scheduled maintenance or force majeure events.
Include Example Scenarios: Provide examples or case studies detailing how service credits would be calculated and applied.
For instance, if a service provider guarantees 99.9% uptime but falls short, the customer may receive a credit equal to a percentage of their monthly service fee.
Service credits are commonly found in the following types of contracts:
Service Level Agreements (SLAs): These contracts frequently include service credits as a mechanism to outline the expected service performance and remedies in case of deficiencies.
Outsourcing Agreements: Contracts with external providers, such as IT or customer service outsourcing, often include service credits to ensure high-quality service standards.
Cloud and Hosting Services Contracts: These agreements, involving cloud computing or hosting services, typically incorporate service credits to address potential downtime or technical failures impacting the customer.
Managed Services Contracts: These contracts usually contain SLAs with provisions for service credits, emphasizing accountability in performance and service delivery.
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