If the beneficiary of the youth employment contract fails to fulfil his contractual obligations, the allowance referred to in article L. 5131-6 and, where applicable, the replacement income referred to in article L. 5421-1, are withdrawn under the conditions defined in article R. 5131-17 and according to the following procedures:
1° In the event of the first failure, the allowance and, where applicable, the replacement income referred to in article L. 5421-1, paid in respect of the month in question are reduced by one quarter of their amount;
2° In the event of a second breach, the allowance and, where applicable, the replacement income referred to in article L. 5421-1, paid in respect of the month in question are withdrawn for a period of one month;
3° In the event of a third default, the allowance is permanently withdrawn and, where applicable, the replacement income referred to in Article L. 5421-1 is withdrawn for a period of four months and the employment contract is terminated.