Common use of Payment Security Clause in Contracts

Payment Security. Prior to performance of Install Services, Buyer will provide an SBLC/Bank Guarantee equal to ten percent (10%) of the estimated annual value of this Agreement (“BG”). The BG shall be provided by an approved internationally recognized financial institution nominated by Buyer and approved by Honeywell and shall be in a specific form approved by Honeywell. On or before January 10 of each calendar year starting the second calendar year after the Effective Date, the value of the BG shall be adjusted in reference to the annual value of this Agreement over the previous year so that such amount shall reflect 10% of the actual amount of the previous calendar year spend. Any required increase shall be carried out (and each Party shall cooperate to so carry out) within ten (10) calendar days of the new calendar year.

Payment Security. Prior to performance of Install Services, Buyer will provide an SBLC/Bank Guarantee security in the form of a bank guarantee equal to ten percent (10%) of the estimated annual value of this Agreement (“BG”). The BG shall be provided by an approved internationally recognized financial institution nominated by Buyer and approved by Honeywell and shall be in a specific form approved by Honeywell. On or before January 10 of each calendar year starting the second calendar year after the Effective Date, the value of the BG shall be adjusted in reference to the annual value of this Agreement over the previous year so that such amount shall reflect 10% of the actual amount of the previous calendar year spend. Any required increase shall be carried out (and each Party shall cooperate to so carry out) within ten (10) calendar days of the new calendar year.

Payment Security. Prior to performance of Install Services, Buyer will provide an SBLCa Stand-by Letter of Credit/Bank Guarantee equal to ten percent (10%) of the estimated annual value of this Agreement (“BG”). The BG shall be provided by an approved internationally recognized financial institution nominated by Buyer and approved by Honeywell and shall be in a specific form approved by Honeywell. On or before January 10 of each calendar year starting the second calendar year after the Effective Date, the value of the BG shall be adjusted in reference to the annual value of this Agreement over the previous year so that such amount shall reflect 10% of the actual amount of the previous calendar year spend. Any required increase shall be carried out (and each Party shall cooperate to so carry out) within ten (10) calendar days of the new calendar year.