Common use of Cash Security Clause in Contracts

Cash Security. Upon the occurrence of a Default by Tenant in respect of any of the terms, provisions, covenants and conditions of this Lease beyond notice and the expiration of any applicable cure periods (except to the extent that such notice and cure periods are not applicable pursuant to Section 6.02 hereof) and Landlord utilizes all or any part of the security represented by the Letter of Credit but does not terminate this Lease as provided in Article 18 hereof, Landlord may, in addition to exercising its rights as provided in Section 6.02 hereof, retain the unapplied and unused balance of the portion of the Letter of Credit drawn down by Landlord (herein called the “Cash Security”) as security for the faithful performance and observance by Tenant thereafter of the terms, provisions, and conditions of this Lease, and may use, apply, or retain the whole or any part of said Cash Security to the extent required for payment of Base Rent, Additional Rent, or any other sum as to which Tenant is in Default or for any sum which Landlord may expend or be required to expend by reason of Tenant’s Default in respect of any of the terms, covenants, and conditions of this Lease. In the event Landlord uses, applies or retains any portion or all of the proceeds of the Letter of Credit, Tenant shall forthwith within 5 Business Days of demand by Landlord restore the amount so used, applied or retained (at Landlord’s option, either by the deposit with Landlord of cash or the provision of a replacement Letter of Credit) so that at all times the amount of the amount represented by the Letter of Credit and the Cash Security (if any) shall be not less than the amount of collateral, required by Section 6.01 hereof, failing which Tenant shall be in Default of its obligations under this Article 6 and Landlord shall have the same rights and remedies as for the non-payment of Base Rent beyond the applicable grace period.

Cash Security. Upon the occurrence of a Default by Tenant in respect of any of the terms22.3.1 If Bluewater Energy has provided cash security under clause 22.1.1(b)(iii) or clause 22.2, provisions, covenants and conditions of this Lease beyond notice Bluewater Energy and the expiration Lessor agree that they shall, without obligation, discuss in good faith for a period not exceeding thirty days the possibility of any applicable cure periods substituting an alternative form of Additional Security for such cash security. 22.3.2 It is acknowledged that the Initial L/C Bank has insisted upon having the right, in certain contractually specified circumstances (except which are only expected to arise exceptionally), to make payment under the extent that such notice and cure periods are not applicable pursuant to Section 6.02 hereof) and Landlord utilizes all or any part of the security represented by the Initial Letter of Credit but does not terminate this Lease prior to any demand being made thereunder by the Lessor. In order to assist PPC in reorganising the security arrangements in these circumstances, the Lessor hereby agrees that during the Primary Period only and for so long as provided in Article 18 hereofno Termination Event has occurred which is continuing, Landlord may, in addition to exercising its rights as provided in Section 6.02 hereof, retain the unapplied and unused balance of moneys payable under the portion of the Initial Letter of Credit drawn down by Landlord (herein called or under any Supplemental Letter of Credit or Replacement Letter of Credit if such circumstances may arise thereunder) in such exceptional circumstances (the “Cash Security”"Enforced Payment") as security shall be paid to the Contingency Account which shall earn interest at LIBID from the date of such deposit until the next Adjustment Date and thereafter from Adjustment Date to Adjustment Date and which shall, subject to clause 22.3.3, constitute acceptable Additional Security for a period (the "Holding Period") ending on the first Adjustment Date falling at least twenty (20) Business Days after the date upon which the Enforced Payment is credited to the Contingency Account. 22.3.3 If an Enforced Payment is made into the Contingency Account at any time, PPC shall on an Adjustment Date during the Holding Period, provide to the Lessor either a Letter of Credit or Additional Security (other than cash) which has, in either case, a Value for the faithful performance and observance by Tenant thereafter Adjustment Date at least equal to the Termination Requirement for that Adjustment Date. The Lessor agrees that it will release moneys standing to the credit of the terms, provisions, Contingency Account (provided that no Termination Event has occurred which is continuing and conditions of this Lease, and may use, apply, or retain the whole or less any part of said Cash Security to the extent required for payment of Base Rent, Additional Rent, or any other sum as to which Tenant is in Default or for any sum which Landlord may expend or be required to expend by reason of Tenant’s Default in respect of any of the terms, covenants, and conditions of this Lease. In the event Landlord uses, applies or retains any portion or all of the proceeds of the Letter of Credit, Tenant shall forthwith within 5 Business Days of demand by Landlord restore the amount so used, applied or retained (at Landlord’s option, either by the deposit with Landlord of cash or Broken Funding Costs) against the provision of a replacement Letter of Credit) so that at all times such Additional Security acceptable to the amount of the amount represented by the Letter of Credit Lessor and the Cash Security (if any) shall give such instructions as shall be not less than the amount of collateral, required by Section 6.01 hereof, failing which Tenant shall be in Default of its obligations under this Article 6 and Landlord shall have the same rights and remedies as for the non-payment of Base Rent beyond the applicable grace periodorder to permit such release.

Cash Security. Upon (a) Subtenant shall deliver to Sublandlord a security deposit in the occurrence Required Security Deposit Amount, in the amount of a Default $735,724.02 (the “Required Security Deposit Amount”), in order to secure the faithful observance and performance by Tenant in respect of any Subtenant of the terms, provisions, covenants terms and conditions of this Lease beyond notice Sublease. The Required Security Deposit Amount shall be paid to Sublandlord in three equal installments as follows: (i) First installment, in the amount of $245,241.34, due on or before December 1, 2023; (ii) Second installment, in the amount of $245,241.34, due on or before January 1, 2024; and (iii) Third installment, in the expiration amount of $245,241.34, due on or before January 15, 2024. If Subtenant defaults in the observance or performance of any applicable cure periods (except to the extent that of such notice terms and cure periods are not applicable pursuant to Section 6.02 hereof) and Landlord utilizes conditions, Sublandlord may use or apply all or any part of such security deposit for the payment of any amounts not paid when due or for the payment of any other amounts due Sublandlord by reason of such default, including any costs of Sublandlord’s observing or performing such terms or conditions on Subtenant’s behalf and any deficiencies in reletting or damages incurred by Sublandlord. If Sublandlord shall use or apply all or any part of such security deposit, Subtenant shall be liable for such deficiency, and immediately upon notice from Sublandlord, deliver to Sublandlord additional funds so as to restore the security represented by deposit to the Letter of Credit but does not terminate this Lease as provided in Article 18 hereof, Landlord may, in addition to exercising its rights as provided in Section 6.02 hereof, retain the unapplied Required Security Deposit Amount. If Subtenant shall faithfully observe and unused balance perform all of the portion of the Letter of Credit drawn down by Landlord (herein called the “Cash Security”) as security for the faithful performance and observance by Tenant thereafter of the terms, provisions, terms and conditions of this LeaseSublease, the security deposit, or so much thereof as shall not have been used or applied in accordance with this Sublease (or is not eligible to be applied), shall be returned to Subtenant after the expiration or sooner termination of this Sublease and the surrender of the Sublease Premises to Sublandlord, vacant, and may use, apply, or retain when the whole or any part of said Cash Security to the extent required for payment of Base Rent, Additional Rent, or any other sum as to which Tenant is in Default or for any sum which Landlord may expend or be required to expend by reason of Tenant’s Default in respect of any of the terms, covenants, and conditions of this Lease. In the event Landlord uses, applies or retains any portion or Sublandlord shall have determined that all of the proceeds of the Letter of Credit, Tenant shall forthwith within 5 Business Days of demand by Landlord restore the amount so used, applied or retained (at LandlordSubtenant’s option, either by the deposit with Landlord of cash or the provision of a replacement Letter of Credit) so that at all times the amount of the amount represented by the Letter of Credit and the Cash Security (if any) shall be not less than the amount of collateral, required by Section 6.01 hereof, failing which Tenant shall be in Default of its obligations under this Article 6 Sublease have been fulfilled, and Landlord in accordance with this Sublease. If Sublandlord shall have transfer the same rights security deposit to an assignee of Sublandlord’s interest under the ▇▇▇▇▇▇▇▇▇, the Sublandlord making such transfer and remedies as for assignment shall be deemed released from all liability to Subtenant with respect to the non-payment security deposit or the return thereof, and Subtenant agrees to look solely to the transferee and assignee with respect thereto. Subtenant shall not assign (other than to an assignee of Base Rent beyond this Sublease) or encumber its interest in the applicable grace periodsecurity deposit and no such assignment or encumbrance shall be valid or binding upon Sublandlord.

Cash Security. Upon At any time following the occurrence full execution of this Amendment Tenant shall have the right to deposit a Default cash security deposit (the “Security Deposit”) in lieu of the LC, in the then current LC Stated Amount, which amount shall be subject to reduction as and when the LC Stated Amount would have otherwise been reduced in accordance with the terms of Section 6(b) of the Office Lease (as amended by Section 13.2, above). Landlord will reasonably cooperate with Tenant to cause the LC to be returned to Tenant upon Landlord’s receipt of the Security Deposit. The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant in of all of its obligations under the Lease, as hereby amended. If Tenant defaults with respect of to any provisions of the termsLease, provisionsas hereby amended, covenants and conditions of this Lease beyond Landlord may, without notice and the expiration of any applicable cure periods (except to the extent that such notice and cure periods are Tenant, but shall not applicable pursuant be required to Section 6.02 hereof) and Landlord utilizes apply all or any part of the security represented by the Letter of Credit but does not terminate this Lease as provided in Article 18 hereof, Landlord may, in addition to exercising its rights as provided in Section 6.02 hereof, retain the unapplied and unused balance of the portion of the Letter of Credit drawn down by Landlord (herein called the “Cash Security”) as security Security Deposit for the faithful performance and observance by Tenant thereafter of the terms, provisions, and conditions of this Lease, and may use, apply, or retain the whole or any part of said Cash Security to the extent required for payment of Base Rent, Additional Rent, any Rent or any other sum as in default and Tenant shall, upon demand therefor, restore the Security Deposit to which Tenant is in Default or for any sum which Landlord may expend or be required to expend by reason of Tenant’s Default in respect of any its original amount. Any unapplied portion of the termsSecurity Deposit shall be returned to Tenant, covenantsor, and conditions of this Lease. In the event Landlord uses, applies or retains any portion or all of the proceeds of the Letter of Credit, Tenant shall forthwith within 5 Business Days of demand by Landlord restore the amount so used, applied or retained (at Landlord’s option, either by to the deposit with Landlord last assignee of cash or Tenant’s interest hereunder, within forty-five (45) days following the provision of a replacement Letter of Credit) so that at all times the amount expiration of the amount represented by the Letter of Credit and the Cash Security (if any) shall be not less than the amount of collateral, required by Section 6.01 hereof, failing which Lease. Tenant shall not be entitled to any interest on the Security Deposit. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code, or any successor statute and all other provisions of law, now or hereafter in Default of its obligations effect, which (i) establish the time frame by which a landlord must refund a security deposit under this Article 6 and Landlord shall have a lease, and/or (ii) provide that a landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the same rights and remedies as for the non-payment of Base Rent beyond rent, to repair damage caused by a tenant or to clean the applicable grace periodpremises, it being agreed that Landlord may, in addition, claim those sums specified in this Section above and/or those sums reasonably necessary to compensate Landlord for any loss or damage caused by Tenant’s default of this Lease, including, but not limited to, all damages or rent due upon termination of this Lease pursuant to Section 1951.2 of the California Civil Code.

Cash Security. Upon the occurrence of a Default by Tenant in respect of any of the terms, provisions, covenants and conditions (i) Concurrently with Tenant’s execution of this Lease, Tenant shall deposit with Landlord the Security Deposit specified in the Basic Lease beyond notice and the expiration of any applicable cure periods (except to the extent that such notice and cure periods are not applicable pursuant to Section 6.02 hereof) and Landlord utilizes all or any part of the security represented by the Letter of Credit but does not terminate this Lease as provided in Article 18 hereof, Landlord may, in addition to exercising its rights as provided in Section 6.02 hereof, retain the unapplied and unused balance of the portion of the Letter of Credit drawn down by Landlord (herein called the “Cash Security”) Information as security for the full and faithful performance of each and observance by Tenant thereafter of the termsevery term, provisions, covenant and conditions condition of this Lease, and . Landlord may use, apply, apply or retain the whole or any part of said Cash the Security Deposit as may be reasonably necessary (a) to remedy Tenant’s default in the payment of any Rent, (b) to repair damage to the extent Premises caused by Tenant, (c) to clean the Premises upon termination of this Lease, if Tenant fails to surrender the Premises to Landlord in the condition required by this Lease, (d) to reimburse Landlord for the payment of Base Rent, Additional Rent, or any other sum as to which Tenant is in Default or for any sum amount which Landlord may expend reasonably spend or be required to expend spend by reason of Tenant’s Default in respect default, or (e) to compensate Landlord for any other loss or damage which Landlord may suffer by reason of any Tenant’s default. Should Tenant faithfully and fully comply with all of the terms, covenants, covenants and conditions of this Lease, within thirty (30) days following the expiration of the Term, the Security Deposit or any balance thereof shall be returned to Tenant or, at the option of Landlord, to the last assignee of Tenant’s interest in this Lease. Landlord shall not be required to keep the Security Deposit separate from its general funds and Tenant shall not be entitled to any interest on such deposit. If Landlord so uses or applies all or any portion of said deposit, within five (5) days after written demand therefor Tenant shall deposit cash with Landlord in an amount sufficient to restore the Security Deposit to the full extent of the above amount, and Tenant’s failure to do so shall be a Default under this Lease. In the event Landlord usestransfers its interest in this Lease, applies or retains any portion or all of Landlord shall transfer the proceeds of the Letter of Credit, Tenant shall forthwith within 5 Business Days of demand by Landlord restore the amount so used, applied or retained (at Landlord’s option, either by the deposit with Landlord of cash or the provision of a replacement Letter of Credit) so that at all times the then remaining amount of the amount represented by the Letter of Credit Security Deposit to Landlord’s successor in interest, and the Cash Security (if any) shall be not less than the amount of collateral, required by Section 6.01 hereof, failing which Tenant shall be in Default of its obligations under this Article 6 and thereafter Landlord shall have the same rights and remedies as for the non-payment of Base Rent beyond the applicable grace periodno further liability to Tenant with respect to such Security Deposit.