Common use of Development Period Security Clause in Contracts

Development Period Security. In order to secure Seller's obligations prior to Commercial Operation of the Facility, at Seller's expense, Seller shall post and maintain in favor of Buyer the Development Period Security in accordance with the following terms and conditions: (a) The Development Period Security shall be posted within thirty (30) calendar days of the Effective Date of this Agreement; provided, however, that if such Development Period Security is not posted within thirty (30) calendar days of the Effective Date of this Agreement, this Agreement shall become null and void and deemed to be terminated, without liability of either Party to the other Party under this Agreement, as of the thirty-first (315 ') calendar day following the Effective Date of this Agreement. Furthermore, ▇▇▇▇▇ shall have the right to draw and retain the full amount of the Development Period Security in connection with any of the following: 1) The termination of this Agreement pursuant to Section 3.l(b)(i) or Section 3.l(b)(ii); or 2) The termination of this Agreement pursuant to Section 5.3 (c); or 3) The termination of this Agreement pursuant to Section 11.2 by the Buyer as the non-defaulting Party. If this Agreement is terminated pursuant to Section ▇▇.▇▇(c), then the Development Period Security shall be returned to the Seller net of any outstanding balance owed by Seller to Buyer in accordance with the terms of this Agreement. (b) When all or a portion of the Development Period Security is posted in a cash deposit, such deposit shall be held by Buyer, in a form and under terms which are acceptable to Buyer and Seller, to pay claims made by Buyer pursuant to this Agreement. (c) After Seller has provided written notification to Buyer of the satisfaction of the Milestones defined in Section 5.3(c), Seller may change the form of the Development Period Security at any time and from time to time upon reasonable prior written notice to Buyer; provided that the Development Period Security shall at all times satisfy the requirements of this Agreement, including, but not limited to, the requisite approvals of Buyer as required in this Agreement. (d) Seller shall maintain the Development Period Security, and Buyer shall return or release its interest in any of the undrawn Development Period Security, if any, within fifteen (15) days after the earlier of (i) the date on which Seller has posted the Delivery Term Security, and (ii) all payment obligations of the Seller arising under this Agreement, including any Termination Payment, indemnification payments or other damages are paid in full. (e) Seller shall replenish the Development Period Security to the full required amount within thirty (30) days following a draw against the Development Period Security by ▇▇▇▇▇.

Development Period Security. In order to secure Seller's obligations prior to Commercial Operation of the Facility, at Seller's expense, (a) Seller shall post and maintain be required to establish collateral in favor of Buyer by providing Buyer with cash, a Letter of Credit from a Qualified Issuer or a performance and payment bond substantially in the form of Exhibit I from a Qualified Issuer, or any combination thereof, provided that, unless otherwise agreed to by Buyer in writing, in no event may the amount of security posted by Seller in the form of a payment bond exceed forty percent (40%) of Seller’s Developer Period Security requirement, to secure Seller’s obligations under this Agreement for the period between the Execution Date and the Commercial Operation Date (the “Development Period Security in accordance with the following terms and conditions:Security”). (ab) The Development Period Security shall be posted within provided on or prior to thirty (30) calendar days of after the Effective Execution Date of this Agreement; provided, however, that if such Development Period Security is not posted within thirty (30) calendar days of and shall be maintained in full force and effect by Seller until the Effective Date of this Agreement, this Agreement shall become null and void and deemed to be terminated, without liability of either Party to the other Party under this Agreement, as of the thirty-first (315 ') calendar day following the Effective Date of this Agreementreturn date specified in Section 10.4 below. Furthermore, ▇▇▇▇▇ shall have the right to draw and retain the full The amount of the Development Period Security shall be maintained at Nine Hundred Thousand Dollars ($900,000.00); provided, however, in connection the case of any payment of damages associated with any of the following: 1) The termination of this Agreement a delay in a Binding Milestone pursuant to Section 3.l(b)(i7.4, the Seller shall not be required to replenish the Development Period Security to a level in excess of the then- remaining amount of the Damage Payment. (c) or Section 3.l(b)(ii); or 2) The termination of In the event, prior to COD, Buyer terminates this Agreement due to Seller’s Event of Default as set forth in Section 12.1, as applicable, Buyer shall be entitled to any Development Period Security equal to the Settlement Amount payable by Seller to Buyer pursuant to Section 5.3 (c); or 3) The termination of this Agreement pursuant to Section 11.2 by the Buyer as the non-defaulting Party13.2. If this Agreement is terminated pursuant to Section ▇▇.▇▇(c), then the Any excess Development Period Security shall be returned to the Seller net of any outstanding balance owed by Seller to Buyer in accordance with the terms of this Agreement. (b) When all or a portion of the Development Period Security is posted in a cash deposit, such deposit shall be held by Buyer, in a form and under terms which are acceptable to Buyer and Seller, to pay claims made by Buyer pursuant to this Agreementthe provisions of Section 10.4. (c) After Seller has provided written notification to Buyer of the satisfaction of the Milestones defined in Section 5.3(c), Seller may change the form of the Development Period Security at any time and from time to time upon reasonable prior written notice to Buyer; provided that the Development Period Security shall at all times satisfy the requirements of this Agreement, including, but not limited to, the requisite approvals of Buyer as required in this Agreement. (d) Seller shall maintain the Development Period Security, and Buyer shall return or release its interest in any of the undrawn Development Period Security, if any, within fifteen (15) days after the earlier of (i) the date on which Seller has posted the Delivery Term Security, and (ii) all payment obligations of the Seller arising under this Agreement, including any Termination Payment, indemnification payments or other damages are paid in full. (e) Seller shall replenish the Development Period Security to the full required amount within thirty (30) days following a draw against the Development Period Security by ▇▇▇▇▇.

Development Period Security. In order to secure Seller's obligations prior to Commercial Operation of the Facility, at Seller's expense, Seller shall post and maintain in favor of Buyer the Development Period Security in accordance with the following terms and conditions: (a) The Development Period Security shall be posted within thirty sixty (3060) calendar days of the Effective Date of this Agreement; provided, however, that if such Development Period Security is not posted within thirty sixty (3060) calendar days of the Effective Date of this Agreement, this Agreement shall become null and void and deemed to be terminated, without liability of either Party to the other Party under this Agreement, as of the thirtysixty-first (315 '61st) calendar day following the Effective Date of this Agreement. Furthermore, ▇▇▇▇▇ Buyer shall have the right to draw and retain the full amount of the Development Period Security in connection with any of the following: 1) The termination of this Agreement pursuant to Section 3.l(b)(i3.1(b)(i) or Section 3.l(b)(ii3.1(b)(ii); or 2) The termination of this Agreement pursuant to Section 5.3 (c); or 3) The termination of this Agreement pursuant to Section 11.2 by the Buyer as the non-defaulting Party. If this Agreement is terminated pursuant to Section ▇▇.▇▇(c), then the Development Period Security shall be returned to the Seller net of any outstanding balance owed by Seller to Buyer in accordance with the terms of this Agreement. (b) When all or a portion of the Development Period Security is posted in a cash deposit, such deposit shall be held by Buyer, in a form and under terms which are acceptable to Buyer and Seller, to pay claims made by Buyer pursuant to this Agreement. (c) After Seller has provided Buyer with written notification to Buyer of the satisfaction of the Milestones defined in Section 5.3(c), Seller may change the form of the Development Period Security at any time and from time to time upon reasonable prior written notice to Buyer; provided that the Development Period Security shall at all times satisfy the requirements of this Agreement, including, but not limited to, the requisite approvals of Buyer as required in this AgreementBuyer. (d) Seller shall maintain the Development Period Security, and Buyer shall return or release its interest in any of the undrawn Development Period Security, if any, within fifteen (15) days after the earlier of (i) the date on which Seller has posted the Delivery Term Security, and (ii) all payment obligations of the ofthe Seller arising under this Agreement, including any Termination Payment, indemnification payments or other damages are paid in full. (e) Seller shall replenish the Development Period Security to the full required amount within thirty (30) days following a draw against the Development Period Security by ▇▇▇▇▇.