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This excerpt taken from the EYE 8-K filed Jul 3, 2007. SERVICE LEVELS 8.01 Designated Service Levels. IBM shall perform the Designated Services in accordance with the Designated Service Levels as set forth in the SOW. 8.02 Out-of-Scope Service Levels. IBM shall provide the Out-of-Scope Services at least at the Out-of-Scope Service Levels applicable to such Out-of-Scope Services, as such may be established pursuant to Section 5.01. 8.03 Adjustment of Service Levels. Service Levels shall be subject to periodic review by the AMO Manager and IBM Project Executive with respect to the accomplishment of the following objectives: (i) to eliminate any Performance Credits deemed unnecessary by AMO, (ii) to reduce IBM costs deemed unnecessary by AMO in association with a corresponding reduction or deletion of a particular Service Level, and thereby achieve ongoing continuity and stabilization of the Charges, (iii) to determine that the Service Levels are reasonable and attainable and (iv) to achieve the ongoing superior quality of Covered Services provided to AMO. Accordingly, during the last calendar quarter of every Contract Year, the AMO Manager and IBM Project Executive (1) shall review the Service Levels for the twelve (12) month period prior to the end of the third calendar quarter of such Contract Year, (2) with respect to any Service Levels that require periodic adjustment pursuant to this Agreement or are no longer appropriate because of an increase, decrease or change in the Services, including changes resulting from actions taken by IBM to comply with Section 3.02, or actions of AMO, as shown in such review, shall adjust the Service Levels for the subsequent Contract Year to reflect any such increase, decrease or change in the Services as established by such review and (3) with respect to all other Service Levels, subject to such review, may adjust the Service Levels for the subsequent Contract Year to reflect any increases,
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decreases or changes in such Services shown in such review. In addition, either Party may, at any time upon notice to the other Party, initiate negotiations to review and, upon approval of the AMO Manager and IBM Project Executive, adjust any Service Level which such Party in good faith believes is inappropriate at the time in view of the then prevailing Service Level. 8.04 Reports. IBM shall provide to AMO, in a mutually agreed form, the reports set forth in Schedule B (Service Levels) and the SOW in accordance with the report delivery schedule set forth therein. AMO may require IBM to modify the form or content or schedule for delivery of such reports, or add additional reports. If AMO requires IBM to add additional reports 90 days or more after the Transition Date and such additional reports require IBM to use additional resources to create such reports (as determined by the Steering Committee), then AMO shall pay IBM for the documented, reasonable costs that are incurred by IBM to create such additional reports. 8.05 Root-Cause Analysis and Escalation.
8.06 Measurement and Monitoring Tools. On or prior to the Transition Date, IBM shall implement the measurement and monitoring tools and procedures described in the SOW required to measure and report, as contemplated by Section 8.04, IBM’s performance of the Services against the applicable Service Levels. Such measurement and monitoring tools and procedures shall (1) permit reporting at a level of detail sufficient to verify compliance with the Service Levels and (2) be subject to audit by AMO or its designee, in accordance with the provisions of Section 20.03 of this Agreement.
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8.07 Service Level Credits. In the event of a failure to provide the Services in accordance with the applicable Service Levels, IBM shall incur the Service Level Credits, as set forth in Schedule B (Service Levels). |
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