American Home Shield 2010 Annual Report Download - page 375

6. Service Level Credits [***].
(a) Service Level Credit Calculation.
Subject to Section 6(f) below, for each CPI Expected Service Level Default or Minimum Service Level Default, Service
Provider shall accrue to Customer a Service Level Credit that will be computed in accordance with the following formula:
Performance Credit = A × B
Where A is the At Risk Amount; and
Where B is the Allocation of Pool Percentage for the applicable CPI.
For example only, assume that Service Provider fails to meet the Minimum Service Level for a CPI, the At Risk
Amount is [***] of the [***], and the [***] for the month in which the Service Level Default occurred were $[***].
Additionally, assume that the Allocation of Pool Percentage for such CPI is [***]%. The Performance Credit due to
Customer for such Service Level Default would be computed as follows:
A (the At Risk Amount) is $[***] ($[***] × [***]%);
Multiplied by B (the Allocation of Pool Percentage for such CPI), which is [***];
Yields a Performance Credit = $[***]
(b) Multiple Defaults.
[***]
(c) Notice of Service Level Credits.
Service Provider shall notify Customer in writing if Customer becomes entitled to a Service Level Credit, which notice shall
be provided monthly and shall describe the Service Level Default for the month that is the subject of the monthly CPI report.
(d) [***]
(e) Reconciliation of Service Level Credits [***].
Upon occurrence of the events giving rise to a Service Level Credit, Service Provider shall owe a debt to Customer for the
applicable Service Level Credit amount. [***]. Service Provider shall credit to Customer against the next monthly invoice:
(A) all accrued Service Level Credits [***], and
(B) all accrued Service Level Credits [***].
6