7.1

1. A "Performance Factor" is any matter that could, or will, significantly affect
   a party’s ability to fulfill its obligations under this Agreement;
    
2. Each party will notify the other party of the existence of a Performance Factor, as soon as reasonably possible. The notice will:
    
   1. describe the Performance Factor and its actual or anticipated impact;
       
   2. include a description of any action the party is undertaking, or plans to undertake, to remedy or mitigate the Performance Factor;
       
   3. indicate whether the party is requesting a meeting to discuss the Performance Factor; and
       
   4. address any other issue or matter the party wishes to raise with the other party.
       
3. The recipient party will provide a written acknowledgment of receipt of the notice within seven Days of the date on which the notice was received ("Date of the Notice").
    
4. Where a meeting has been requested under 7.2(b) (iii), the parties agree to meet and discuss the Performance Factors within fourteen Days of the Date of the Notice, in accordance with the provisions of subsection 7.3

1. During a meeting on performance, the parties will:
   1. discuss the causes of a Performance Factor;
   2. discuss the impact of a Performance Factor on the local health system and the risk resulting from non-performance; and
   3. determine the steps to be taken to remedy or mitigate the impact of the Performance Factor (the "Performance Improvement Process").
       

1. The Performance Improvement Process will focus on the risks of non-performance and problem-solving. It may include one or more of the following actions:
   1. a requirement that the HSP develop and implement an improvement plan that is acceptable to the LHIN
   2. the conduct of a Review;
   3. a revision and amendment of the HSP’s obligations; and or
   4. an in-year, or year end, adjustment to the Funding;

   among other possible means of responding to the Performance Factor or improving performance.
    

2. Any performance improvement process begun under a prior agreement will continue under this agreement.  Any performance improvement required by the LHIN under a prior agreement will be deemed to be a requirement of the agreement until fulfilled.