CLARA ONLINE, Inc.

Clara Online provides a service-level agreement (SLA) for customers of our Standard 3, Professional 3, and Advance 3 dedicated-server services. For each service, we guarantee a monthly average availability rate of at least 99% in three respects: hardware availability, network availability, and Internet connectivity. If the monthly average rate for any or all of these types of availability falls below that standard, Clara Online will discount the charge for the service, using a predetermined formula of discount credits.

1.Hardware Availability

What is assured	Server hardware for the dedicated-server service provided to the customer. Firewalls, backup servers, and other hardware provided under any agreement for optional services are not included.
Definition	“Hardware availability” means Clara Online’s maintenance of the hardware in proper operating condition.
Assurance criterion	If hardware malfunction causes service disruption such that the monthly rate of normal hardware availability falls below 99%, the customer will receive discount credits for the service.

2.Network Availability

What is assured	Availability of the Clara Online internal network within which the server hardware for the dedicated-server service provided to the customer is installed.
Definition	“Network availability” means Clara Online’s maintenance of conditions enabling the customer to access the server via the Internet.
Assurance criterion	If any malfunction, delay, etc. of the network hardware causes service disruption such that the monthly rate of normal network availability falls below 99%, the customer will receive discount credits for the service.

3.Internet Connectivity

What is assured	Connection between the Internet and the network within which is installed the server hardware for the dedicated-server service provided to the customer.
Definition	“Internet connectivity” means Clara Online’s maintenance of conditions enabling proper connection between the Clara Online network and the Internet.
Assurance criterion	If loss of connectivity to the Internet is such that the monthly rate of normal connectivity falls below 99%, the customer will receive discount credits for the service.

Credits

Discount credits are based on the table shown below. If disruption to availability meets the assurance criteria for more than one type of availability, the value of the greatest disruption is used to determine the amount of credits given.

Availability Credits

• 99% or more No credits
• 98% or more but less than 99% 1/30 of applicable charge
• 95% or more but less than 98% 1/15 of applicable charge
• 90% or more but less than 95% 1/2 of applicable charge
• Less than 90% Full amount of applicable charge

SLA Application Procedure and Details

• The SLA requires no special application procedure or additional payment.
• The SLA provisions do not apply during any suspension of the line or hardware lease for scheduled maintenance or customer-requested tests.
• The SLA provisions do not apply in cases of packet loss, Internet partial reachability, or occurrences beyond Clara Online’s control.
• The maximum discount allowed under the SLA is the amount the customer has paid for the month in which the availability rate fell below the SLA-assured level. All charges for optional services are excluded.

Applying for Credits

To apply for discount credits, customers must fill out the credits application form provided and send it by post to Clara Online. Approved credits will be reflected in the billing of either the following month or the month after that. An application for credits must be submitted within two weeks after the day on which the availability rate falls below the SLA-assured level.