Document:

Exhibit 10.3

EXHIBIT 10.3

Company Name: -Ultimate Software
SLA: SLA-HOS1330892
SAVVIS
SAVVIS SERVICE  LEVEL A.TTACHMENT­
Colocation Services Service Level Agreement ("SLA")

This Colocation Services Service Level Attachment ("SLA" or "SLA Attachment") sets forth the applicable service levels ("Service Levels") for the Colocation Services and the HAN Internet Access Service ("Internet Connectivity Service", together with Colocation Services referred to collectively as "Services") provided to Customer within a Savvis Facility.  This SLA Attachment is subject to and incorporated into the Savvis Master Service Agreement or Centurylink Agreement, including the Savvis Service Schedule - Colocation Service between the parties and any terms not defined in this SLA Attachment shall have the meaning set forth therein.

		
	1.
	Service Levels and Service Credits

The Services are provided with the following categories of Service Levels:

		
	A.
	Power Availability

		
	B.
	Temperature and Humidity

		
	C.
	Internet Connectivity Availability

		
	D.
	Internet Connectivity Latency

E.  Internet Connectivity Packet Delivery

In the event of a Service Level Failure (hereinafter defined), Customer may be entitled to receive the applicable service credit set forth herein ("Service Credits"). Eligibility for Service Credits related to Power Availability and Internet Connectivity Availability is dependent upon the Customer's selection of the Power Source Connection and Savvis Internet Connectivity Source Connection listed below:

	
			
	

Power Source
	

Savvis Internet
	Services eligible for a Power Availability or Internet Connectivity

	Connection
	Connectivity Source
	Service Credit (Service Credit based on

	 
	Connection
	the Monthly Recurring Charge ("MRC")

	 
	 
	for the Affected Service)

	Primary and
	Primary and Redundant
	 

	Redundant
	(Requirement: fifty
	 

	 
	percent (50%) of
	Colocation Service  and Internet

	 
	Customer's Internet
	Connectivity Service

	 
	bandwidth in each specific
	 

	 
	Savvis Facility must be
	 

	 
	purchased from Savvis or
	 

	 
	Centurvlink)
	 

	Primary and
	 
	Colocation Service (space and power

	Redundant
	Primary only or none
	component) only

	Primary Only
	Primary and Redundant
	Internet Connectivity Service only

	Primary Only
	Primary only or none
	None

		
	A.
	POWER AVAILABILITY

The Colocation Service is provided with the Power Availability Service  Level set forth below:

   Power Availability    I 100%     

In order to be eligible for Power Availability Service Level, Customer  (i)  shall  maintain  and utilize primary and redundant power sources and equipment capable of operating at 100% of load, without sustaining an outage solely caused by power being lost to just one of the two power sources, (ii) shall use cabling that meets national electrical and fire stahdards and any specification required by Savvis, (iii) shall connect its Equipment directly into both the A power source and  the B power source, (iv) shall not permit power  utilization to  exceed  the  power rating identified ih the Service Order, unless provided otherwise in the Service Schedule or the Service Order, and (v) shall maintain all Customer Equipment in compliance with the electrical regulations of the region where such Customer Equipment is installed.

If the Colocation Service is subject to a Power Outage, a Power  Availability  Service  Level Failure shall be deemed to occur and Customer is entitled to a Service Credit set forth in the table below.   Service Credits for Power Outages are based on cumulative Power Outages over a calendar month. All Power Outage measurements will be based on  Savvis'  internal monitoring equipment  and  records.
	
		
	

Cumulative Duration of Power Outages within a Calendar Month
	Service Credit for Power Outages based on a Percentage of MRC for the Affected Service of the Colocation Service

	≥1minute and < 45 minutes
	5%

	≥45 minutes and < 3 hours  37 minutes
	10%

	≥3 hours  37 minutes  and < 7 hours  12 minutes
	20%

	≥than 7 hours  12 minutes
	30%

		
	B.
	TEMPERATURE AND HUMIDITY

The  Colocation  Service  is  provided  with  the  following  Temperature  and  Humidity  Service Levels in accordance with the terms of this SLA.

	
		
	Savvis   Data   Center   (SOC) Environment
	Service Level

	SDC Temperature
	Within the allowable ASHRAE range of 5gof to go°F.

	SDC Non-Condensing Humidity Range
	Within the allowable ASHRAE range of 20% relative humidity to 80% relative humidity or a 62°F dew point.

A "Temperature Service Level Failure" shall occur as a result of the SDC temperature falling below 5go Fahrenheit or exceeding to goo Fahrenheit, as allowed range under ASHRAE, for at least one hundred-twenty (120) consecutive minutes in either case for reasons other than an Excluded Event. In the event that a Termperature Service Level Failure occurs two or more times during any calendar month then subject to the terms of this SLA, Customer will be entitled to a Service Credit in a amount equal to 1/3oth of the MRC for the Affected Services of the Colocation Service paid by Customer in the month that the Temperature Service Level Failure occurred.

A "Humidity Service Level Failure" shall occur as a result of the SDC humidity falling below 20% relative humidity or exceeding 80% relative humidity or 62° Fahrenheit dew point, as allowed range under ASHRAE, for at least one hundred-twenty (120) consecutive minutes in

either case for reasons other than  an  Excluded  Event.  In the event that  a  Humidity  Service Level Failure occurs two or more times during any calendar month then subject to the terms of this SLA, Customer will be entitled to a Service Credit in an amount equal to 1/30th of the MRC for the Affected Services of the Colocation Service paid by Customer in the month that the Humidity Service  Level Failure occurred.

		
	C.
	INTERNET CONNECTIVITY  AVAILABILITY

The Internet Connectivity Service is provided with the Availability Service Level set forth below.

Availability    99.99%

If the Internet Connectivity Service is subject to a Network Outage, an Internet Connectivity Availability Service Level Failure shall be deemed to occur and Customer is entitled to a Service Credit set forth in the table below. Service Credits for Network Outages are based on cumulative Network Outages over a calendar month.

	
		
	

Cumulative Duration of Network Outages within a Calendar Month
	Service Credits for Network Outages based on a Percentage of MRC for the Affected Service of  the  Internet Connectivity Service

	≥5 minutes and < 60 minutes
	5%

	≥60 minutes and < 3 hours
	15%

	≥3 hours and < 6 hours
	35%

	≥6 hours
	50%

		
	D.
	INTERNET CONNECTIVITY LATENCY

The Internet Connectivity Service is provided with the Internet Connectivity Latency Service Levels measured within the Savvis Core Network as set forth below. Failure to meet Latency Service Levels is not considered a Network Outage.

Global Average Monthly Internet Connectivity Latency Service Level (Metrics are calculated: Roundtrip in milliseconds (ms))

	
								
	

Reaion
	

NA-E
	 
	 
	 
	 

	

NA-E
	

50
	

NA-C
	 
	 

	

NA-C
	

65
	

50
	

NA-W
	 

	

NA-W
	

100
	

65
	

50
	

E-E

	

E-E
	

110
	

150
	

200
	

35
	

E-W
	 
	 

	

E-W
	

115
	

200
	

210
	

40
	

35
	

AP-N1
	 

	

AP-Nl
	

210
	

200
	

200
	

350
	

    300    
	

65
	AP-N2    I

Company Name: -Ultimate Software
SLA: SLA-HOS1330892

	
										
	

AP-N2
	

285
	

255
	

215
	

375
	

385
	

65
	

55
	

AP-S
	 

	

AP-S
	

260
	

270
	

230
	

400
	

400
	

100
	

45
	

50
	

AP-A

	

AP-A
	

330
	

300
	

260
	

410
	

400
	

150
	

170
	

140
	

80

Average Monthly Transatlantic Internet Connectivity Latency Service Level (Metrics are calculated: Roundtrip in milliseconds (ms))

	
			
	Transatlantic  Route
	Latency

	NY- London
	95 ms

	D.C. - Frankfurt
	100 ms

If the actual monthly average Latency exceeds the applicable maximum Latency Service Levels, set forth in the Internet Connectivity Latency Service Level tables above in a given calendar month, a Internet Connectivity Latency Service Level Failure shall be deemed to occur and Customer is entitled to a Service Credit equal to 2.5% of the MRC for the Affected Service of the Internet Connectivity Service.

E. INTERNET CONNECTIVITY PACKET DELIVERY

The Internet Connectivity Service is provided with the Packet Delivery Service Level set forth below. Failure to meet a Packet Delivery Service Level is not considered a Network Outage.

Packet Delivery    99.5%

If the actual monthly Packet Delivery is less than the Packet Delivery Service Level set forth above, a Packet Delivery Service Level Failure shall be deemed to occur and Customer is entitled to a Service Credit in the amount of 2.5% of the MRC for the Affected Service of the Internet Connectivity Service.

		
	2.
	Example of Service Credit Calculations

Service Credits are based on cumulative Power Outages,  Savvis  Network  Outages, Temperature Service Level Failures, and/or Humidity Service Level Failures over  a  calendar month.

Example 1: Customer has ten (10) racks each with a primary and redundant power circuit. The racks are connected to the internet via either a) an alternative carrier serving the Savvis Data Center or b) through Savvis via a primary Network connection only (there is no redundant Network connection). If both the primary and  redundant  power circuits  of two racks incur a Power Outage, the Service Credit is calculated as a percentage applied to the MRCs for the eligible Affected Services, which would be the monthly charges for the two (2) racks only as the Network Services are not considered an "Affected Service".

Example 2: Customer has ten (10) racks each with a primary and redundant power circuit. The racks are connected to the internet via Savvis multiline access circuits (primary and redundant Internet Connectivity Service). If both the primary and redundant power circuits of two racks incur a Power Outage, the Service Credit is calculated as a percentage applied to the

MRCs for the Affected Services, which would be the monthly charges for the two (2) racks and twenty percent (20%) of the MRCs for Internet Connectivity Service (i.e., the Internet Connectivity Service MRCs apportioned to two (2) of ten (10) racks).

Example 3: Customer has ten (10) racks each with a primary and redundant power circuit. The racks are connected to the internet via Internet Connectivity Service using both primary and redundant access circuits. If both the primary and redundant access circuits incur a Network Outage, the Service Credit is calculated against the MRCs for the Affected Services, which would be the monthly charges for the ten (10) racks and one-hundred percent (100%) of the Internet Connectivity Service MRCs.

		
	3.
	Maintenance

Current scheduled maintenance windows are described in the Savvis Customer Guide and Handbook ("Scheduled  Maintenance").  Savvis  has  the  right  to  perform  Scheduled Maintenance or Emergency Maintenance, which may limit or  suspend the Availability .of the Services. The suspension of the Availability of any of the Services during Scheduled or Emergency Maintenance shall not be deemed a Service Level Failure (e.g., Network Outage, Power Outage, Temperature Service Level Failure, or Humidity Service Level Failure) and Customer shall not be entitled to any Service  Credit.  Savvis shall  provide  Customer  with at least ten (10) days prior written notice of any Scheduled Maintenance activities via the SavvisStation customer portal. Emergency Maintenance may not be posted because of its immediate   nature.

Customer shall be entitled to defer any Scheduled Maintenance on Savvis Services that only affects Customer; provided, however, Customer shall not be entitled to any Service Credits as set forth above to the extent that Savvis' failure to satisfy any of its obligations under this SLA Attachment is due to Savvis'  inability  to  conduct  Scheduled  Maintenance  as  originally scheduled and as measured from such date that the Scheduled Maintenance would have ordinarily occurred. The parties shall work together in good faith to determine a new mutually agreed upon Scheduled Maintenance date and time. Customer shall not be entitled to defer Emergency Maintenance.

4.  Process

Customer must request any Service Credit due hereunder by submitting an e-mail to billing@savvis.com within sixty (60) calendar  days of the conclusion of the month in which the Service Level Failure(s) occurs. Customer waives any right to Service  Credits  not requested within this sixty (60) calendar day period. Service  Credits  will  be  issued  once  validated  by Savvis and applied toward the invoice which Customer receives no later than two (2) months following Customer's Service  Credit  request.  All  performance  calculations  and  applicable Service Credits are based on Savvis records and data unless Customer can provide Savvis with clear and convincing evidence to the contrary within such sixty (60) calendar day period.

5.   Limitations

Customer will not be eligible to accrue any otherwise applicable Service Credits if Customer is in breach or default under any provisions of the Agreement at the time the Service Level Failure occurred and will not be entitled to any otherwise available Service Credit if Customer is in breach or default under any provisions of the Agreement at the time such Service Credit is requested by Customer until such breach is cured.

Company  Name: -Ultimate Software
SLA: SLA-HOS1330892

In no event will the total Service Credits accrued in any single month exceed, in the aggregate across all Service Levels and events, fifty percent (50%) of  the invoiced amount  for  the Affected Service.

This SLA provides Customer's sole and exclusive remedies for any Service interruptions, deficiencies, or failures of any kind. To clarify, such sole and exclusive  remedies shall not apply to breaches of unrelated obligations under the Agreement such as infringement, confidentiality, etc. Service Levels and Service Credits set forth in this SLA Attachment shall not apply with respect to any Excluded Events. "Excluded Event" means any event that adversely impacts the Service that is caused by (a) the acts or omissions of Customer, its employees, customers, contractors or agents; (b) the failure or malfunction of  equipment, applications or systems not owned or controlled by Savvis; (c) Force Majeure events; (d) Scheduled or Emergency Maintenance; (e) any suspension of Service pursuant to the Agreement; (f) the unavailability of required Customer personnel, including  as a result of failure to provide Savvis with accurate, current contact information; or (g) any other circumstance specified in the applicable SSG.

Notwithstanding anything contained herein or in the Savvis Master Service Agreement to the contrary, the following provisions shall apply to the Services:

Customer may terminate the· Affected Service(s), if Customer experiences: (a) a single Power Outage or Network Outage greater than seven (7) hours, twelve (12) minutes in any given month; or (b) two (2) or more Power Outages or Network Outages, each lasting more than one hour, within a six (6) month period  (each experience under section (a) or (b) is defined as a "Chronic Service Termination Event").

If a Chronic Service Termination Event occurs  and  Customer  desires  to  terminate, Customer shall provide Savvis with written notification detailing the performance deficiency(ies) giving rise to the Chronic Service Termination Event, which notice must be sent within thirty (30) days following the Chronic Service Termination Event. For avoidance of doubt, if the Affected Service(s) are the only Services the Customer is purchasing from Savvis, then the entire Agreement may be terminated.. Termination shall be effective as specified in the Customer's termination notice, but in no event later than one hundred twenty (120) days from Savvis' receipt of Customer's notice termination. Such termination shall be without any further obligation to Savvis, including no obligation for early termination fees or other charges, other than the payment of all amounts due and owing to Savvis through the date of such termination. If Customer fails to provide Savvis with timely notification as set forth herein, Customer will be deemed to have waived  its right to terminate as a result of that particular Chronic Service Termination Event. Failure to provide such notification shall in no way operate to waive or otherwise affect any of Customer's other rights related to any other Chronic Service Termination Event. This termination right, plus any corresponding credits, shall be Customer's sole and exclusive remedies for  any deficiencies and interruptions of Service, including the failure of Savvis to meet the SLA goals.

6.   Definitions

"Affected Service" means the portion of Services directly impacted by the failure to meet the relevant Service Level described in this SLA Attachment. For avoidance of doubt, if the Customer has a primary and redundant power source connection and a primary and redundant Savvis Internet Connectivity Service connection and either a Network Outage occurs and/or a

Power Outage occurs, then the Affected Services includes both the Colocation and the Savvis Internet Connectivity Services.

"Availability" means the percentage of time during a month in which the Colocation Services or Savvis Internet Connectivity  is not subject to an outage.
Availability is calculated as follows:
"Availability" = ((Total minutes in a calendar month) - (Total minutes of outages during a calendar month)) x 1oo
(Total minutes in a calendar month)    )

"Customer Area" means the specific portion of a Savvis Facility in which the Colocation Service is provided to Customer.

"Emergency Maintenance" means unscheduled maintenance to the Services which must be performed on an immediate basis where failure to do  so  is  likely  to  result  in an  imminent and/or  material  Service  deficiency.

"Facility" means Savvis Data Center building, or location in which the Customer Area  is located.

"Intra-Metro" - means point-to-point connectivity over Savvis-owned, metropolitan Ethernet facilities within the same metropolitan area.

"Latency" means the monthly average time it takes for a 64 byte IP test packet (except where a 1500 byte test packet is noted) to travel round trip across the relevant portion of the Savvis Network, calculated as:

Monthly Core Latency = Sum of daily average Latency calculations for a given month/Total number of days in month

 
 

"Network Outage" means any period of at least one minute during which the Savvis Internet Connectivity Service is unable to transmit or receive data for reasons other than any Excluded Event.    A Network Outage begins when Customer reports such Service failure or Savvis is otherwise aware of such  failure and ends at the restoration of the Affected Service. All Network Outage measurements will be rounded to the nearest one minute increment.
"Packet Delivery" means the monthly average percentage of packets that are successfully delivered over the relevant portion of the Savvis Internet Connectivity Service, expressed as a percentage to two (2) decimal  places, calculated as:

Packet Loss= Total number of packets successfully delivered in a given month x 100 Total number of packets scheduled to be delivered in a given month

"Power Outage" means any period of at least one minute during which Customer is unable to utilize the Colocation Service due to Savvis' failure to provide Customer with the specified power in the· Customer Area for reasons other than an Excluded Event. All Power Outage measurements will be rounded to the nearest one minute increment.

"Regions" mean the areas described and abbreviated below: North America: Canada & USA
North America - East (NA-E):    USA & Canada, Eastern Standard Time
North America - Central (NA-C): USA & Canada, Ceritral Standard Time
North America - West (NA-W):    USA & Canada, Mountain & Pacific Standard Time
Europe: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Spain, Sweden, Switzerland and UK
Europe - East (EE):    Hungary, Poland
Europe - West (EW):    Austria,   Belgium,   Denmark,   Finland,   France,  Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden, Switzerland and UK

                    Asia/Pacific Rim:  Austrailia, Hong Kong, Japan, Korea, Malaysia, New Zealand, Taiwan and Singapore

                             Asia/Pac Rim - North 1 (AP-N1): Japan and Korea
                             Asia/Pac Rim - North 2 (AP-N2): Hong Kong and Taiwan
                             Asia/Pac Rim - South (AP-S):  Malaysia and Singapore
                             Asia/Pac Rim - Australia (AP-A):  Australia, New Zealand

"Savvis Core Network" means the Savvis owned and operated IP backbone infrastructure (AS3561) between the routers, switches, and cabling located in Savvis Points of Presence and Internet Data Centers.  For the avoidance of doubt, the Savvis Core Network does not include, among other things, access facilities, backhaul facilities or Customer Equipment.

"Service Credit" means an amount deducted from fees billed to Customer in the event of a Service Level Failure.

"Service Level Failure" means Power Outage, Network Outage, Temperature Service Level Failure, or Humidity Service Level Failure.

SAVVIS Communications Canada, Inc.

Name:  /s/ James Parker
Title:  
Date:   4/30/2103

The Ultimate Software Group of Canada, Inc.

Name:  /s/ Robert Manne
Title:     Vice President
Date:   3/28/201310.1 Incentive Stock Option Agreement Under Carriage Services, Inc. Second Amended and Restated 2006 Long-term Incentive Plan

INCENTIVE STOCK OPTION AGREEMENT
UNDER CARRIAGE SERVICES, INC.
SECOND AMENDED AND RESTATED 
2006 LONG-TERM INCENTIVE PLAN

THIS INCENTIVE STOCK OPTION AGREEMENT (this “Agreement”) evidences the grant by CARRIAGE SERVICES, INC., a Delaware corporation (the “Company”), of an option (the “Option”) to purchase the number of shares of common stock, $.01 par value (“Common Stock”), of the Company specified below, to the Participant whose name appears below and who has evidenced his or her acceptance hereof by signing at the bottom of this Agreement.  The Option is intended to be an incentive stock option within the meaning of Section 422 of the Internal Revenue Code, although the Company makes no representation or guarantee that the Option will qualify as an incentive stock option.  The term of the Option shall be for the number of years indicated below, commencing on the date of grant set forth below opposite the Company's signature (the “Grant Date”), and for the number of shares and at the exercise price shown below, subject to adjustment as provided in Section 4.2 of the Carriage Services, Inc. Second Amended and Restated 2006 Long-Term Incentive Plan (the “Plan”).  The Option shall be subject to the vesting schedule set forth below.

	
		
	Name of Participant:
	 

	Option Period:
	Five (5) years

	Number of Shares:
	 

	Exercise Price Per Share:
	$

	Vesting Schedule:
	Subject to Section 7.5 of the Plan, the Option shall become vested with respect to 331⁄3% of the total number of shares subject to the Option on each of the first three anniversaries of the Grant Date.

The terms and conditions of this Agreement are subject to the terms and provisions of the Plan, as amended, of which the Participant acknowledges receiving a copy.

GRANTED EFFECTIVE this    CARRIAGE SERVICES, INC.
____ day of May, 2013

By:_________________________________________
      MELVIN C. PAYNE, Chief Executive Officer

ACCEPTANCE BY PARTICIPANT

THE UNDERSIGNED PARTICIPANT, by his or her execution below, hereby (i) accepts the grant of the Option on the terms set forth above, (ii) agrees to be bound by all of the terms and conditions of the Carriage Services, Inc. Second Amended and Restated 2006 Long-Term Incentive Plan, a copy of which the Participant acknowledges having received, read and reviewed (together with any counsel or advisors of the Participant's choice), and (iii) understands all of the legal, tax and other consequences hereof and thereof. 
	
		
	DATED:_____________________, ________.
	 

	 
	Name

	 
	 

	 
	Social Security Number

	 
	 

	 
	Address

	 
	 

	 
	City State Zip

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