Common use of PERFORMANCE ASSURANCE PLAN Clause in Contracts

PERFORMANCE ASSURANCE PLAN. If Honeywell, in its sole discretion, determines there is a significant risk that Subcontractor will fail, or that Subcontractor has failed, to meet, its performance or delivery obligations under this Subcontract, then Honeywell may require Subcontractor to perform under a Honeywell or Honeywell-approved Performance Assurance Plan. The Performance Assurance Plan may include specific reporting and performance requirements reasonably tailored to ensure or measure Subcontractor’s adequate performance under identified provisions of this Subcontract. Any failure by Subcontractor to satisfy the terms of the Performance Assurance Plan is a material breach. Additionally, Honeywell has the right to intervene in the management of this Subcontract. Such intervention will be in the form of management assistance, and loan or lease of manpower and/or equipment to Subcontractor or sub-tier suppliers, as deemed appropriate by Honeywell. Subcontractor must provide Honeywell with access to the facilities, engineers, employees, and sub-tier suppliers. This intervention may continue until Subcontractor’s performance or delivery is at a level acceptable to Honeywell and, in Honeywell’s reasonable judgment, Subcontractor is able to maintain a satisfactory level of performance or delivery. The Performance Assurance Plan or intervention will not relieve Subcontractor of its obligations under this Subcontract. Subcontractor is liable for all work, costs and expenses Honeywell incurs or sustains by providing resources to assist Subcontractor in meeting its performance obligations under this Subcontract. Honeywell will have the right to seek recovery of all costs on a monthly basis. Subcontractor will pay Honeywell’s costs within 30 days after receipt of invoice or Honeywell may setoff the costs from payments owing from Honeywell to Subcontractor.

PERFORMANCE ASSURANCE PLAN. If Honeywell, in its sole discretion, determines there is a significant risk that Subcontractor will fail, or that Subcontractor has failed, to meet, its performance or delivery obligations under this Subcontract, then Honeywell may require Subcontractor to perform under a Honeywell or Honeywell-approved Performance Assurance Plan. The Performance Assurance Plan may include specific reporting and performance requirements reasonably tailored to ensure or measure Subcontractor’s adequate performance under identified provisions of this Subcontract. Any failure by Subcontractor to satisfy the terms of the Performance Assurance Plan is a material breach. Additionally, Honeywell has the right to intervene in the management of this Subcontract. Such intervention will be in the form of management assistance, and loan or lease of manpower and/or equipment to Subcontractor or sub-tier suppliers, as deemed appropriate by Honeywell. Subcontractor must provide Honeywell with access to the facilities, engineers, employees, and sub-sub- tier suppliers. This intervention may continue until Subcontractor’s performance or delivery is at a level acceptable to Honeywell and, in Honeywell’s reasonable judgment, Subcontractor is able to maintain a satisfactory level of performance or delivery. The Performance Assurance Plan or intervention will not relieve Subcontractor of its obligations under this Subcontract. Subcontractor is liable for all work, costs and expenses Honeywell incurs or sustains by providing resources to assist Subcontractor in meeting its performance obligations under this Subcontract. Honeywell will have the right to seek recovery of all costs on a monthly basis. Subcontractor will pay Honeywell’s costs within 30 days after receipt of invoice or Honeywell may setoff the costs from payments owing from Honeywell to Subcontractor.