Service Level Agreement 

PREPARED FOR
[Customer Name] 

PREPARED BY
[Sender Company Name] 

Service Level Agreement

This Service Level Agreement (hereinafter referred to as the "SLA" or "Agreement") is entered into and shall stand effective on [SLA Effective Date] (hereinafter referred to as the "Effective Date"),
 
By and Between 
 
[Sender Company Name] (hereinafter referred to as the "Company") with its principal place of business at [Sender Company Address], and; 
 
[Customer Name] (hereinafter referred to as the "Customer") is located at [Customer Address].
 
The Company and the Customer shall be collectively referred to as the "Parties" and individually as the "Party."
 
WHEREAS the Parties have entered into a [Master Agreement Name] (hereinafter referred to as the “Contract”) effective as of [Master Agreement Effective Date] for the provision of the Services (hereinafter referred to as the “Services”) by the Company (as defined therein) prior to this Agreement;
 
WHEREAS the Contract states that a Service Level Agreement is a condition precedent to proceed with any extended term of the Contract.

NOW, THEREFORE, in consideration of the mutual promises and covenants in this Agreement, the Parties hereby agree as follows:

TERMS AND CONDITIONS.

1. DEFINITIONS.

(a) “Modification” means upgrading the existing service or deliverable version to include new features and enhanced functions.

(b) “Service” means an action that aids an individual, a group of individuals, or an organization by meeting their needs through information, action, or technology.

(c) “Deliverable” means a product that contains the necessary features to meet the needs of the target consumer and provide solutions to the problem.

(d) "Purchase Order" means a set of Articles/Services provided by the Company to the Customer and compensated accordingly.

(e) "Malfunction" means the Deliverables/Services are not working as per the expected customer requirements and as claimed by the company.

(f) "Service Credits" means compensatory credit amounts that the Customer can deduct from the amount to be paid to the Company for the Services rendered if they do not fit the Customer's expectations and requirements, as mutually agreed by both parties.

(g) Severity level: The severity level is defined by the extent of impact the problem has on the overall performance of the solution.

(i) S1 - Very high severity: Complete failure of critical systems, services, applications, or networks. The entire user base is impacted by downtime.

(ii) S2 - High Severity: The application is not down, but a serious problem is affecting the productivity of multiple users.

(iii) S3 - Medium Severity: The application is not down, but an issue affects a small number of users.

(iv) S4 - Low Severity: Functionality enhancement and/or support for modifications or maintenance of source code, training documentation, or user documentation.

2. PURPOSE.

The purpose of this SLA is to specify the various responsibilities and services that the Company shall provide to the Customer at specific levels of support and an agreed-upon cost.

3. SCOPE OF SLA.

This Agreement outlines the standard level of service that the Company shall provide within the framework of security, including performance criteria, service availability, actions to be taken in the event of service failure, and response and repair times.
 
The Company reserves the right to modify, update, or amend this SLA at any time. The Customer will be informed of such updates.

4. SERVICES OFFERED.

The Company agrees to provide and perform the following services (hereinafter referred to as the "Services") for the Customer in a timely, efficient, and professional manner:

Service Type	Description
Monitoring	Record and closely monitor the customer's problems, queries, and concerns.
Consultation	Provide solutions to the issues mentioned by the Customer.
Maintenance	Maintenance and support of servers.
Analysis	Analysis of the root causes of problems.
[Add Service Type]	[Add Description]

5. SERVICE LEVELS AND SERVICE CREDITS.

The Company shall, at all times during the Term of this Agreement, provide the Services to meet or exceed the Service Level Performance Measure for each Service Level Performance Criteria, as mentioned below.
 
The Company agrees that if the level of the Service fails to meet any Service Level Performance Measure, it may have a poor impact on the business of the Customer, and the Company shall grant the Customer the rights set out in this Agreement below, including the right to any Service Credits (as mentioned below).

Service Level Performance Criteria	Key Performance Indicator	Service Level Performance Measure	Service Credit
Availability of the Service	[Add the KPI]	[Availability]	[Specify how the Company will compensate in case it fails to meet the Service Level.]
Defect Rates	[Add the KPI]	[Defect Rate]%	[Specify how the Company will compensate in case it fails to meet the Service Level.]
Technical Quality	[Add the KPI]	[Technical Quality Threshold]%	[Specify how the Company will compensate in case it fails to meet the Service Level.]
Security	[Add the KPI]	[Security]%	[Specify how the Company will compensate in case it fails to meet the Service Level.]
[Add your performance criteria]	[Add the KPI]	[Performance Measure]%	[Specify how the Company will compensate in case it fails to meet the Service Level.]

6. PROBLEMS, SEVERITY LEVEL, AND RESPONSE TIME.

Severity Level	Problem Description	Response Time
S1	[Server Down]	Immediate
S2	[High risk of server downtime]	30 minutes
S3	[End-user impact initiated]	1 hour
S1	[Fixing bugs and vulnerabilities]	5 minutes
S2	[Issue addressed but potentially impactful in the future]	One business day
S3	[Inquiry for Information]	Two business days

7. COMPANY'S RESPONSIBILITIES.

(a) The Company shall act as a primary support provider of the Services set forth in this Agreement, except when third-party service providers are hired, who shall assume appropriate service support responsibilities accordingly.

(b) The Company shall inform the Customer regarding scheduled and unscheduled Service outages due to maintenance, troubleshooting, disruptions, or as otherwise necessary.

(c) The Company shall conduct business with the Customer in a courteous and professional manner.

(d) [Additional Company Responsibilities]

8. CUSTOMER'S RESPONSIBILITIES.

(a) The Customer shall provide all necessary information and assistance related to Service Performance that enables the Company to meet the performance standards as defined in this Agreement.

(b) The Customer shall attempt to resolve problems over the phone on the first call.

(c) The Customer shall conduct business with the Company in a courteous and professional manner.

(d) [Additional Customer Responsibilities]

9. EXCLUSIONS.

The Parties agree that the Company shall not be liable to the Customer for the following Services:

(a) If any failure occurs because of any willful action on a production or test system taken by the Customer.

(b) The Company is not responsible for supporting or fixing bugs in the Customer's Application System.

(c) [Additional Excluded Services]

10. MAINTENANCE.

(a) The Company shall provide the Customer with generally available modifications to the Service.

(b) The Company shall inform the Customer from time to time about the latest updates of new Services available and also let the Customer know the scope of improvement on existing Deliverables/Services.

(c) If the maintenance request is beyond the binding limitations of this Agreement, the Customer shall be charged an additional maintenance fee.

11. PAYMENT.

Payment for the Services provided under this Agreement shall be made through direct billing to [Customer Name] in accordance with the Purchase Order issued for the Services. The Company shall state the specific billing amount, and the Customer shall agree to it. The Customer shall pay for Products ordered under this Agreement within [Payment Due in Days] days(s) from the date of invoice.

12. METRICS.

The Company shall provide the Customer with a quarterly report of the Services rendered as per the Agreement. The report will describe the Service, the personnel who completed the task, the date and time, and the total effort expended. In addition, the Company shall also solicit feedback from the Customer to address issues that fall outside the original Scope of Work.

13. CONFIDENTIALITY.

(a) Both the Company and the Customer shall mutually consent to safeguard the Confidential Information of both Parties, which is revealed during the course of the Agreement. Each may also keep an external party’s Confidential Information private as per the party's privacy policy.
 
(b) Both Parties, if compelled to disclose any information for any reason, the concerned Party shall take due permission in writing and then proceed accordingly.

14. WARRANTY.

(a) The Company warrants that the Services being purchased hereunder are performed with proper efficiency to the best of the Company's knowledge.
 
(b) The Company shall abide by this warranty and fix any issue at an authorized Company service center in the [Warranty Service State Name].
 
(c) The Company takes responsibility for either repairing or exchanging any component that fails during the warranty period of the Agreement.

15. INDEMNIFICATION.

Both Parties mutually indemnify and hold no blame to the other Party, its respective affiliations, the employees, and permitted descendants and assigns against any loss, claims, damages, penalties, liabilities, expenditure, reasonable legal remuneration of whatsoever kind or amount, which result from the negligence of or breach of this Agreement by the indemnifying party, its respective affiliate or successors and any assign that occurs in connection with this Agreement. This section remains in full force and effect even after the termination of the Agreement.

16. ARBITRATION.

In the event of any dispute arising in and out of this Agreement between the Parties, it shall be resolved by arbitration. There shall be [Number of Arbitrators] arbitrator(s), who shall be appointed by [Arbitration appointing Party name]. The venue of arbitration shall be [Location of Arbitration], and the Seat shall be [State of Seat]. The arbitrator(s)' decision shall be final and binding on both Parties.

17. GOVERNING LAW.

The Agreement and all the terms contained herein shall be governed by and construed as per the laws of the state of [Governing Law]. If the disputes arising from this agreement cannot be resolved through arbitration, they shall be resolved through litigation in the courts of [Jurisdiction].

18. FORCE MAJEURE.

Neither Party shall be liable for any failure in performance of the obligation under this Agreement due to cause beyond that Party's reasonable control (including and not limited to any pandemic, fire, strike, act or order of public authority, and other acts of God) during the pendency of such event.

19. NOTICES. 

Any notices required to be given to the Customer shall be delivered by certified mail or personal delivery, at the Company's expense.

20. SEVERABILITY. 

In the event that any provision in this Agreement is held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect any other provisions of this Agreement, and all other provisions will remain in full force and effect.

21. AMENDMENTS. 

No modification or waiver of the provisions of this Agreement shall be valid or binding on either Party unless in writing and signed by both Parties.

22. INCLINATION. 

The Parties must acknowledge that this Agreement, hereinafter, is solely for the benefit of the Parties undersigned and serves no inclination to any Party, nor is it intended to confer any rights or remedies in favor of any person, party, or affiliate other than the Parties duly undersigned and their members.

23. ENTIRE AGREEMENT. 

This Agreement and other annexures, therefore, constitute the entire agreement between the Parties concerning the subject matter hereof and, thus, supersede all prior agreements, purchases, understandings, and negotiations, written or oral, between the Parties.

ACCEPTANCE AND SIGNATURE.

The Parties acknowledge that they have read the above Agreement in its entirety, understand all of its terms and conditions, and agree to abide by the terms of this Contract as demonstrated by their signatures as follows:

[Customer Name] 

[Sender Company Name] 

Name:

Name:

Signature:

Signature:

Date:

Date:

Service Level Agreement Template

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