ANNEX V

SERVICE LEVEL CALCULATIONS

CONTENTS

1. GENERAL..............................................................................................................................................2
2. SERVICE CREDIT COMPUTATION FOR O&M SERVICE BASED ON SLA................................4
3. SERVICE CREDIT COMPUTATION FOR OPTIMIZATION SERVICE BASED ON KPI..............7
4. SERVICE CREDIT CAP.......................................................................................................................9
5. SERVICE CREDIT EXCLUSION/EXEMPTIONS..............................................................................9
6. SERVICE CREDIT PAYMENT..........................................................................................................10

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 ANNEX V

SERVICE LEVEL CALCULATIONS

1. GENERAL

1.1. The Customer may claim Service Credits from the Supplier Company in cases where the
performance of the network fails to meet the required Service Levels (“SLA”) and/or Key
Performance Indicator (“KPI”).

1.2. The Supplier Company will maintain the network performance in accordance with the SLA and
KPI specified in Annex B-1O&M Scope of Work and Annex B-2 Optimization Scope of Work for
the duration of the MSSA.

1.3. In the event that the network performance fails to meet the SLA and KPI criteria, excluding Force
Majeure, the Supplier Company will take immediate steps to restore network performance

1.4. Network performance will be evaluated based on performance reports generated by the OSS,
FACTS and subscriber complaints. In the event of any dispute the FACTS measurement will
prevail.

1.5. If the Supplier Company fails to complete works specified as the basic target in the SLA Table as
applicable for the O&M Service, the Customer will be entitled to claim Service Credits from the
Supplier Company. Failure of the Supplier Company to maintain and improve network
performance in accordance with the Basic Target and Improvement Target specified in the KPI
table as applicable for the Optimization Service would result in the degradation of both the
Network Performance Index and the Network Improvement Index over successive measurement
periods. Such network performance degradation would result in Service Credit being payable by
the Supplier Company to the Customer.

1.6. Direct Revenue Loss Penalty

(a) Subject to the scenarios mentioned below in section (c), the Supplier Company’s
maximum liability to Customer for Revenue Loss penalty under this MSSA shall be
limited to an amount equal to the payment made by Customer to Supplier Company for
the current month of the incident. Such incidents causing a revenue loss penalty and its
impacts and shall be excluded from KPI and SLA service level calculations.

(b) Revenue loss will be calculated based on an average revenue of the same period of outage
for the previous two weeks. For avoidance of doubt if an outage is on a Wednesday from
4:15 to 6:20, the revenue for previous two Wednesdays for same times will be averaged to
calculate the revenue loss.

(c) Switching centre power performance:

Any negligence of duty causing a Switching center power outage will be considered for Revenue
loss. For avoidance of doubt outages caused by hardware issues will not be considered for
penalty.

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1.7. The payment of service credits will not relieve both Parties from performing their obligations
arising out of the MSSA.

1.8. There will be two separate Service Credit computation methodologies for the O&M Service and
Optimization Service. Service Credit computation for O&M service will be based on compliance
to SLA while the computation for Optimization Service will be based on compliance to KPI.

1.9. Weighting factors

(a) Subject to item (3), Customer will apportion weighting factors against all or some of the
SLA/KPIs. Following the Services Commencement Date, Customer may change the
apportionment of weighting factors in accordance with item (2).

(b) Subject to item (3), Customer may change the allocation of weighting factors between
SLAs/KPIs subject to mutual agreement under the change control procedure and provided
that the weighting factor for a SLA/KPI is changed at the beginning of a new
measurement period (beginning of a new quarter) by providing thirty (30) days’ prior
notice to Supplier Company.

(c) In no event will the aggregate weighting factors applied by Customer against all of the
SLAs/KPIs exceed hundred percent (100%).

1.10. Failure to provide Performance report

Where Supplier Company has failed to provide a performance report in respect of one or more of the
SLAs/KPIs in any period such failure will be deemed a Performance Default and Customer will be
entitled to a service credit in respect to each SLA/KPI as follows

(a) SLA for O&M: equal to the service credit which would otherwise be payable by Supplier
Company in the event of a Performance Default in respect of the relevant SLA.

(b) KPIs: equal to the service credit which would otherwise be payable by Supplier Company
in the event of a Performance Default in respect of the relevant KPI. For the avoidance of
doubt the count values for basic target, improvement target and penalty target used for
penalty calculation will be set to zero (0) i.e. all cells will be set below penalty target.

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2. SERVICE CREDIT COMPUTATION FOR O&M SERVICE BASED ON SLA

2.1. Service credits will be based on the following SLAs as defined in the table below. The applicable
penalty and bonus weighing for each of the SLAs are shown.

2.2.

Penalty and Bonus target for each of the SLAs are specified in Appendix 1: Service Level Agreement in
Annex B-1 O&M Scope of Work.

2.3. In general Service Credits will be calculated as the daily/weekly/monthly/quarterly values and
averaged over a quarterly period unless specified as total count ANNEX B1, APPENDIX 1:
SERVICE LEVEL AGREEMENT (SLA). Service credits will be incurred for performance below
the Basic Target for each of the SLA parameters.

2.4. The total Service Credit applicable will be computed based on the performance for each SLA
parameter and taking into consideration the appropriate penalty weight age for each SLA
parameter.

2.5. The total Service Credit amount will then be computed based on multiplying the total Service
Credit penalty with the applicable “At Risk Amount” for O&M Service. For the avoidance of
doubt, the “At Risk Amount” for O&M service will be 20% of the applicable O&M Service
Charge.

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2.6. The Parties agree that a Service Bonus will apply as an incentive for Supplier Company’s
performance above Bonus target specified in the SLA table. Supplier Company will be eligible for
Service Bonus for performance that exceeds the Bonus target and the total Service Bonus will be
computed taking into consideration the appropriate Bonus weight age for each SLA parameter.
The maximum Service Bonus achievable will be 4% of the Service Credit for the applicable
measurement period.

2.7. Service Bonus will only be used to offset any Service Credit payable by Supplier Company. For
the avoidance of doubt, the Parties agree that Bonus Credit will only be used to offset Service
Credits and will not impose any other payment obligation on the Customer. Any unused Service
Bonus will not be carried over to the next measurement period.

2.8. Sample Calculation

(a) Assuming the following O&M Service Price

 Price for O&M Service for the quarter = SDG 1,000,000

 Maximum Service Credit Applicable = 20%
 Maximum Service Credit Amount (“At Risk Amount” ) = SDG 200,000

(b) Assuming Supplier Company SLA performance as per following table

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 (c) Performance for Quarter 2:

The supplier has missed basic targets for SLA 2, 6 and 8

 Service credit for SLA 2 is 1,000,000*2%= 20,000

 Service credit for SLA 6 is 1,000,000* 2.4%= 24,000
 Service credit for SLA 8 is 1,000,000* 1.6%=16,000
 Total service credit is SDG 60,000

The supplier has achieved Bonus target for SLA 4, 7, 9

 Service Bonus for SLA 4 is 1,000,000* 0.6%= 6,000

 Service Bonus for SLA 7 is 1,000,000*0.2%= 2,000
 Service Bonus for SLA 9 is 1,000,000*0.2%= 2,000
 Total service bonus is SDG 10,000

Total credit for Quarter 2 is 56,000-10,000= SDG 50,000

Supplier Company shall issue a Credit Note for the computed Service Credit (SDG 50,000).

(d) Performance for Quarter 3:

The supplier has missed basic targets for SLA 8

 Service credit for SLA 8 is 1,000,000* 1.6%=16,000

 Total service credit is SDG 16,000

The supplier has achieved Bonus target for SLA 1, 4 and 5

 Service Bonus for SLA 1 is 1,000,000* 0.8%= 8,000

 Service Bonus for SLA 4 is 1,000,000*0.6%= 6,000
 Service Bonus for SLA 5 is 1,000,000*0.4%= 4,000
 Total service bonus is SDG 18,000

Total bonus for Quarter 3 is 18,000-16,000= SDG 2,000

No Service Credit will be payable for quarter and since Service Bonus will only be used to offset
Service Credit, any excess Service Bonus will become void.

2.9. SLA Variations

SLAs variations will be reviewed by the Customer and Supplier Company every six months. Target and
weight changes would only be applicable during a measurement period and will be agreed by both parties
at least 6 weeks before the measurement period starts.

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3. SERVICE CREDIT COMPUTATION FOR OPTIMIZATION SERVICE BASED ON KPI

3.1. Definition

(a) Basic Target: Sum of weighted number of individual KPI’s based on the % number of
cells meeting the Basic target values.

(b) Penalty Targets: Sum of weighted number of individual KPI’s based on the % number of
cells meeting the Penalty target values.

(c) Improvement Targets: Sum of weighted number of individual KPI’s based on the %
number of cells meeting the Improvement target values.

(d) Network Performance Index (NPI): 50%*Achieved Basic target + 50%* Achieved
Penalty target

(e) Network Improvement Performance Index (NPI): Achieved Improvement target

3.2. Optimization Service Charge breakdown for Service Credit computation

For the purpose of Service Credit computation, the total price for Optimization Service as provided in
Annex A Prices will consist of 3 parts as follows:

(a) Fixed part: 40 % of total Optimization Service Charge;

(b) Network Performance Index (NPI): Variable at 40 % of total Optimization price;

(c) Network Improvement Index (NII): Variable at 20 % of total Optimization price.

3.3. Service Credit Mechanism

(a) In the case where the Group KPI level (or regulatory requirements, whichever is highest)
has been met, this level will be maintained as the Basic KPI level. The Supplier
Company’s target for the Stabilization Period of the MSSA will be the monthly average
per site of the actual KPIs during the Transition Period. The Local Parties will establish
baseline value for each KPI using historical values and agreed upon methodology. The
method used during the Transition Period must be the same as the one used for penalty
calculations with effect from the Service Commencement Date. For example, if the CSSR
monthly average of the Busy Hour (19:00 – 20:00) values without exclusions is used for
the base then no exclusions will be allowed afterwards.

(b) Comparison of Network Performance Index (NPI) and Network Improvement

Performance Index (NPI) achieved during a measurement period with preceding period
would be the basis for Service Credit computation for the period.

(c) The amount of Service Credit applicable would be based on the difference of the NPI and
NII values over two consecutive periods. A degradation of service (lower NPI and/or NII
values)l would result in Service Credit being computed for the NPI and NII portion of the
Optimization Service Price.

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 (d) Service Credit will be computed based on the following formula for NPI and NII
degradation (if applicable) over two consecutive periods as follows:

 Final NPI Service credit value = Total NPI *(1- (New NPI / old NPI));

 Final NII Service credit value = Total NII *(1- (New NII / old NII));

 Total Service Credit for Optimization = Final NPI Service credit value + Final
NII Service credit value.

(e) There will be No Service Credit if NPI and NII values are same of better than the previous
measurement period.

3.4. KPI Variations

(a) KPIs variations will be reviewed by the Customer and Supplier Company during the Term
in accordance with Change Control Procedure. Target and weight changes would only be
applicable during a new measurement period and will be agreed by both parties at least 6
weeks before the measurement period starts.

(b) Major KPI variations (targets change, weight change, addition and deletion of KPI ) will
be restricted to the first measurement period after each anniversary from Service
commencement date in accordance with Change Control Procedure.

(c) Minor KPI variations shall be based on the following and can be applied every 6 months:

 Maximum of 10% KPI Targets can only be changed.

 Changes only two out of the three service level targets i.e. Basic & Penalty or
Basic and improvement etc

 This target value change should maximum be 5 % i.e. 0.2 will change to 0.19

 Weight can change for maximum of 20 % of total KPI being measured, max
change will be 10 % i.e. a KPI having 5.25 % can be changed to 5.775% or
4.725%

 If there are additions or deletions which mean that weights (max 10 %) change
then the compare will include only KPI which are measured in both quarters with
new weights.

3.5. Sample Calculation

(a) Assuming the following Optimization Service Price

 Total price for Optimization Service for the measurement period: SDG 1,000,000
 Service Credit applicable for NPI and NII as described in section 3.2
NPI variable is 40 % of total price = SDG 400,000
NII variable is 20 % of total price = SDG 200,000

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 (b) Assuming Optimization Service performance as above

(c) Based on the applicable Optimization Service Price and the Service performance, the
Service Credit Computation is as follows

Transition Q1 Q2 Q3
Network Performance Index (NPI) 67.50% 72.50% 60.00% 75.00%
Network Improvement Index (NII) 70.00% 75.00% 76.00% 75.00%

 Quarter 1 Service Credit: None applicable as both NPI & NII values are higher
than the values in the preceding quarter. In any case, Service Credit will not be
applicable during Stabilization period.
 Quarter 2 Service Credit: SDG 68,966 as the NPI value is lower than preceding
quarter. Service Credit applicable on the NPI part = SDG 400,000 * (1-(60/72.5))
= SDF 68,966
 Quarter 3 Service Credit: SDG 5,263 based in the formula specified in section
3.3 (d) as NII value is lower than preceding quarter.
 Quarter 4 Service Credit: SDG 13,333 based on the formula specified in section
3.3 (d) as both NPI & NII values are lower than preceding quarter.

4. SERVICE CREDIT CAP

(a) The Parties agree that in no event will the total amount of service credits, in respect of
Performance Defaults occurring during any period in relation to the O&M Service, exceed
an amount equal to twenty percent (20%) of the O&M Service Charges for such quarter
(excluding the fuel cost, site security cost and the related management charge) (“At Risk
Amount” for the O&M Service).

(b) Similarly in no event will the total amount of service credits, in respect of Performance
Defaults occurring during any quarter in relation to the Optimization Service, exceed an
amount equal to twenty percent (20%) of the Optimization Service Charges for such
month (“At Risk Amount” for the Optimization Service).

5. SERVICE CREDIT EXCLUSION/EXEMPTIONS

The Parties agree on the following exclusion/exemptions related to the computation of Service Credits
during the Term

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 (a) Planned work on network elements will not be subject to Service Credit. Planned work
executed by Supplier Company on network elements out of the approved change request
time window will be counted as downtime.

(b) Service Credit will not apply during the Stabilization Period phase of the MSSA Term.
The supplier company would have the responsibility to ensure the quality of the network
is maintained/improved at the levels it was before takeover. Both parties agree to weekly
reviews of all Critical & service level KPI’s. The supplier company would have the
responsibility to put in place mitigations plans if any of the KPI has the potential of
degradations. The mitigations put in place would be monitored on a daily basis to ensure
the quality of the network is maintained at agreed levels.

(c) A separate mechanism of Bonus and Penalty would be followed for the stabilization
period for the 12 KPI identified in the Critical KPI list Annex B2 section 3.7.

 Total Bonus or penalty would not exceed 20 % of the costs documented as per
ANNEX A for the month
 Bonus and Penalty would not be carried forward.
 Bonus Values would only be used to compensate for any applicable penalty for
the month. For avoidance of doubt if no extra payment would be made beyond the
100 % of optimization costs if the supplier company has no penalty for that
month.
 Weights for both Bonus and Penalty for the availability KPI (2 in total) would be
2% of the total Optimizations costs.
 Weights for both the rest of the KPI (10 in total) would be 1.6% of the total
Optimizations costs.
 Bonus levels would be 15 % above the current achieved (this would be average of
last 3 months). For example the Bonus level for Handover success rate which has
a current rate of 97%, then the new value will be 97.45% which is calculated by
97%+(1-97%)*15%=97.45%,
 Penalty levels would be 20% below the current achieved (this would be average
of last 3 months). For example the Bonus level for Handover success rate which
has a current rate of 97%, then the new value will be 96.4% which is calculated
by 97%-(1-97%)*20%=96.4%,

(d) Both parties agree that VIP Sites (Top ten revenue generating sites managed by Change
management process) needs to be handled with high priority and care. Any extended site
outages beyond 48 hours caused by negligence of the Supplier Company within its scope
of work will be compensated through mutual agreement between both parties.

6. SERVICE CREDIT PAYMENT

(a) Supplier Company shall pay (or credit against a subsequent invoice) any service credits to
Customer on a quarterly basis following the agreement between the Supplier Company
and the Customer of the relevant performance reports, which shall show details of the
SLA defaults and the amounts of the service credits.

(b) Payment of Service Credit shall be in accordance with Clause of Prices and Payment
Terms of the MSSA.

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