Page 545 - Onboarding May 2017
P. 545

delivery.

               11.0 APPROVED PRODUCT RETURNS

                              11.1 Return of Damaged or Incorrectly Shipped Approved Products.
                     Operator may return Approved Products that are damaged or incorrectly shipped by
                     notifying Distributor by telephone or to Distributor’s call center.  Following receipt of the
                     notice, Distributor will undertake commercially reasonable efforts to pick up such
                     Approved Products on Operator’s next scheduled delivery date and issue credit within two
                     (2) business days of pickup.  Any Approved Products that Operator returns to Distributor
                     that is not damaged at time of delivery must be in re-sellable condition.  If Operator wants
                     the Approved Product picked up sooner, Operator will use a Delivery Driver and will pay
                     any special delivery fees for the expedited pickup.

                              11.2 Order Error by Operator.
                     If Operator wishes to return Approved Product that Operator has ordered in error,
                     Distributor may charge Operator a maximum restocking fee of $7.50 per case for accepting
                     the return of the Approved Product.

               12.0 COLLECTIVE SERVICE STANDARDS
                     Distributor will maintain the following Required Standards and Minimum Standards for all
                     Restaurants covered by this Agreement:

                       Service Standards               Required Standards           Minimum Standards

                       Order Fill Rate                 99.75%                       99.5%

                       On-Time Delivery Rate           93.00%                       90.00%



                     Beginning 90 days following the Commencement Date, CSCS will evaluate Distributor’s
                     performance at 60 day intervals (each, a “Performance Period”).

                     If Distributor fails to meet one or more of the Required Standards in any Performance
                     Period, CSCS will give Distributor written notice of the failure.  If Distributor fails to meet
                     one or more of the Required Standards during consecutive Performance Periods, then
                     Distributor will begin discounting the Distribution Fee by 10% until Distributor can
                     maintain the Required Standard for one complete Performance Period.  If Distributor fails
                     to meet the Required Standard for two Performance Periods, Operator may elect to either
                     (a) continue to receive the 10% discount off the Distribution Fee until Distributor can
                     maintain the Required Standard for one complete Performance Period  or (b) terminate the
                     Agreement.

                     If Distributor fails to meet one or more of the Minimum Standards in any Performance
                     Period, CSCS will give Distributor written notice of the failure.  If Distributor fails to meet
                     one or more of the Minimum Standards during consecutive Performance Periods, then
                     Operator may elect to either (a) have Distributor begin discounting the Distribution Fee by






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