The exemption means that the supplier must pay the customer all third-party legal costs resulting from the breach of warranties. If you are using a default SLA provided by the service provider, it is likely that this provision is missing. Ask your in-house counsel to design a simple provision to include it, although the service provider may wish to continue negotiations on this point. The SLA should contain a detailed description of the services. Contracts between the service provider and other third parties are often referred to as SLAs (wrongly) – since the performance level is set by the (principal) customer, there can be no “agreement” between third parties; These agreements are simply “contracts”. However, company-level or OLA-level agreements can be used by internal groups to support SLAs….