Common use of Performance Failures Clause in Contracts

Performance Failures. 7.1 The Service Provider shall maintain minimum standards of performance (“the Service Levels”) as set out in Annexure B attached hereto. 7.2 Failure to attain a prescribed Service Level constitutes a Performance Failure and will entitle SARS to levy the corresponding financial penalty stipulated in Column 4 of Annexure B. The maximum percentage of the Service Provider’s total invoice, which may be at risk due to any Performance Failures in any particular month, shall not exceed twenty percent (20%) of the total amount invoiced to SARS in respect of such month. 7.3 Where a financial penalty becomes due to it as a result of a Performance Failure, SARS shall be entitled to deduct such financial penalties from the corresponding invoice rendered by the Service Provider, and shall be entitled to deduct and offset any applicable financial penalty against any subsequent payment due to the Service Provider. 7.4 The levying of a financial penalty shall not prejudice SARS’s rights to- 7.4.1 terminate the Agreement for breach by the Service Provider as provided for in Clause 14 below; 7.4.2 cancel with immediate effect the provision of the Services to the affected SARS Site; 7.4.3 reallocate with immediate effect the Services to the affected SARS Site to another service provider, appointed in terms of the RFP or such other service provider as may be appointed by SARS in its exclusive discretion. In such an event, the Service Provider shall be obliged, and for the Service Provider’s own account, to assist in the seamless transition of the Services to the incoming service provider; or 7.4.4 invoke any of its rights in terms of Applicable Law. 7.5 Where SARS invokes the rights reserved in Clauses 7.4.2 and 7.4.3, the Service Provider shall be obliged to reduce the monthly fees for the affected region accordingly in the month following the adjustment. 7.6 Cancellation or reallocation of Services in terms of this Clause shall be without any liability to SARS, except for payment for the Services already rendered by the Service Provider less applicable financial penalties.

Performance Failures. 7.1 The Service Provider shall maintain minimum standards of performance (“the Service Levels”) as set out in Annexure B attached hereto. 7.2 Failure to attain a prescribed Service Level constitutes a Performance Failure and will entitle SARS to levy the corresponding financial penalty stipulated in Column 4 3 of Annexure B. The maximum percentage of the Service Provider’s total invoice, which may be at risk due to any Performance Failures in any particular month, shall not exceed twenty percent (20%) of the total amount invoiced to SARS in respect of such month. 7.3 Where a financial penalty becomes due to it as a result of a Performance Failure, SARS shall be entitled to deduct such financial penalties from the corresponding invoice rendered by the Service Provider, and shall be entitled to deduct and offset any applicable financial penalty against any subsequent payment due to the Service Provider. 7.4 The levying of a financial penalty shall not prejudice SARS’s rights to- 7.4.1 terminate the Agreement for breach by the Service Provider as provided for in Clause 14 below; 7.4.2 cancel with immediate effect the provision of the Services to the affected SARS Site; 7.4.3 reallocate with immediate effect the Services to the affected SARS Site to another service provider, appointed in terms of the RFP or such other service provider as may be appointed by SARS in its exclusive discretion. In such an event, the Service Provider shall be obliged, and for the Service Provider’s own account, to assist in the seamless transition of the Services to the incoming service provider; or 7.4.4 invoke any of its rights in terms of Applicable Law. 7.5 Where SARS invokes the rights reserved in Clauses 7.4.2 and 7.4.37.4.3 above, the Service Provider shall be obliged to reduce the monthly fees for the affected region accordingly in the month following the adjustment. 7.6 Cancellation or reallocation of Services in terms of this Clause shall be without any liability to SARS, except for payment for the Services already rendered by the Service Provider less applicable financial penalties.