Common use of Cure of Service Level Default Clause in Contracts

Cure of Service Level Default. Should Tops believe that a Service Level Default has occurred, Tops shall notify C&S and C&S shall use its best efforts to immediately restore the applicable Required Service Level. If during or prior to the * following the occurrence of a Service Level Default the applicable Required Service Level is achieved, then the Service Level Default shall be cured and new Measurement Periods shall begin. Failure to achieve the applicable Required Service Level during or prior to the end of such * shall constitute a Service Level Default by C&S and Tops will be entitled to a penalty payment (the “Penalty Payment”) to the extent that the actual service level is below the applicable Required Service Level during such week until the Required Service Level is restored (“Penalty Period”). The amount of the Penalty Payment shall be equal to: *. The Penalty Payment shall be paid within *. *. To the extent that the average actual service level percentage for any week is above *, C&S shall be given a credit equal to *. C&S shall use the aggregate of any Service Level Credits to set-off against any Penalty Payment that it may owe for service levels below the applicable Required Service Level but above *.

Cure of Service Level Default. Should Tops believe that a Service Level Default has occurred, Tops shall notify C&S and C&S shall use its best efforts to immediately restore the applicable Required Service Level. If during or prior to the * following the occurrence of a Service Level Default the applicable Required Service Level is achieved, then the Service Level Default shall be cured and new Measurement Periods shall begin. Failure to achieve the applicable Required Service Level during or prior to the end of such * shall constitute a Service Level Default by C&S and Tops will be entitled to a penalty payment (the “Penalty Payment”) to the extent that the actual service level is below the applicable Required Service Level during such week until the Required Service Level is restored (“Penalty Period”). The amount of the Penalty Payment shall be equal to: *. * and * The Penalty Payment shall be paid within *. *. * In addition, during any Penalty Period, Tops * To the extent that the average actual service level percentage for any week is above (x) * and (y) *, C&S shall be given a credit equal to *. * (A) * (B) * C&S shall use the aggregate of any Service Level Credits to set-off against any Penalty Payment that it may owe for service levels below the applicable Required Service Level but above *.