Common use of Financial Security Clause in Contracts

Financial Security. (a) On the Commencement Date of this Lease, Tenant is not required to procure and maintain a corporate security bond or other financial security (“Security”). During the Term of this Lease, State may require Tenant to procure and maintain Security upon any of the events listed in Paragraph 10.4(c)(1). Tenant’s failure to maintain the Security in the required amount during the Term constitutes a breach of this Lease. (b) All Security must be in a form acceptable to State. (1) Bonds must be issued by companies admitted to do business within the State of Washington and have a rating of A-, Class VII or better, in the most recently published edition of A.M. Best’s Insurance Reports, unless State approves an exception in writing. Tenant may submit a request to the Risk Manager for the Department of Natural Resources for an exception to this requirement. (2) Letters of credit, if approved by State, must be irrevocable, allow State to draw funds at will, provide for automatic renewal, and comply with RCW 62A.5-101, et. seq. (3) Savings account assignments, if approved by State, must allow State to draw funds at will. (c) Adjustment in Amount of Security. (1) State may require an adjustment in the Security amount: (i) At the same time as revaluation of the Annual Rent, (ii) As a condition of approval of assignment or sublease of this Lease, (iii) Upon a material change in the condition or disposition of any Improvements, or (iv) Upon a change in the Permitted Use. (2) Tenant shall deliver a new or modified form of Security to State within thirty (30) days after State has required adjustment of the amount of the Security. (d) Upon any default by Tenant in its obligations under this Lease, State may collect on the Security to offset the liability of Tenant to State. Collection on the Security does not (1) relieve Tenant of liability, (2) limit any of State’s other remedies, (3) reinstate the Lease or cure the default or (4) prevent termination of the Lease because of the default.

Financial Security. (a) On the Commencement Date of this LeaseAt its own expense, Tenant is not required to shall procure and maintain during the Term a corporate security bond or provide other financial security that State, at its option, may approve as security for the faithful performance and observance by Tenant of the terms, conditions, and provisions of this Lease (“Security”). During the Term of this Lease, State may require Tenant shall provide Security in an amount equal to procure and maintain Security upon any of the events listed in Paragraph 10.4(c)(1). TenantZero Dollars ($0).Tenant’s failure to maintain the Security in the required amount during the Term constitutes a breach of this Lease. (b) All Security must be in a form acceptable to State. (1) Bonds must be issued by companies admitted to do business within the State of Washington and have a rating of A-, Class VII or better, in the most recently published edition of A.M. Best’s Insurance Reports, unless State approves an exception in writing. Tenant may submit a request to the Risk Manager for the Department of Natural Resources for an exception to this requirement. (2) Letters of credit, if approved by State, must be irrevocable, allow State to draw funds at will, provide for automatic renewal, and comply with RCW 62A.5-101, et. seq. (3) Savings account assignments, if approved by State, must allow State to draw funds at will. (c) Adjustment in Amount of Security. (1) State may require an adjustment in the Security amount: (i) At the same time as revaluation of the Annual Rent, (ii) As a condition of approval of assignment or sublease of this Lease, (iii) Upon a material change in the condition or disposition of any Improvements, or (iv) Upon a change in the Permitted Use. (2) Tenant shall deliver a new or modified form of Security to State within thirty (30) days after State has required adjustment of the amount of the Security. (d) Upon any default by Tenant in its obligations under this Lease, State may collect on the Security to offset the liability of Tenant to State. Collection on the Security does not (1) relieve Tenant of liability, (2) limit any of State’s other remedies, (3) reinstate the Lease or cure the default or (4) prevent termination of the Lease because of the default.. Aquatic Lands Lease (Rev. 7/20/2022) Page 25 of 40 Lease No. 20-B09917

Financial Security. (a) On the Commencement Date of this Lease, Tenant is not required to procure and maintain a corporate security bond or other financial security (“Security”). During the Term of this LeaseTerm, State may require Tenant to procure and maintain Security upon any of the events listed in Paragraph 10.4(c)(1). Tenant’s failure to maintain the Security in the required amount during the Term constitutes a breach of this Lease. (b) All Security must be in a form acceptable to State. (1) Bonds must be issued by companies admitted to do business within the State of Washington and have a rating of A-, Class VII or better, in the most recently published edition of A.M. Best’s Insurance Reports, unless State approves an exception in writing. Tenant may submit a request to the Risk Manager for the Department of Natural Resources for an exception to this requirement. (2) Letters of credit, if approved by State, must be irrevocable, allow State to draw funds at will, provide for automatic renewal, and comply with RCW 62A.5-101, et. seq. (3) Savings account assignments, if approved by State, must allow State to draw funds at will. (c) Adjustment in Amount of Security. (1) State may require an adjustment in the Security amount: (i) At the same time as revaluation of the Annual Rent, (ii) As a condition of approval of assignment or sublease of this Lease, (iii) Upon a material change in the condition or disposition of any Improvements, or (iv) Upon a change in the Permitted Use. (2) Tenant shall deliver a new or modified form of Security to State within thirty (30) days after State has required adjustment of the amount of the Security. (d) Upon any default by Tenant in its obligations under this Lease, State may collect on the Security to offset the liability of Tenant to State. Collection on the Security does not (1) relieve Tenant of liability, (2) limit any of State’s other remediesre medies, (3) reinstate the Lease or cure the default or (4) prevent termination of the Lease because of the default.

Financial Security. (a) On the Commencement Date of this LeaseAt its own expense, Tenant is not required to shall procure and maintain during the Term of this Lease a corporate security bond or provide other financial security that State, at its option, may approve (“Security”). During the Term Tenant shall provide Security in an amount equal to Five Hundred Dollars ($500.00), which is consistent with RCW 79.115.100, and secures Tenant’s performance of its obligations under this Lease, State may require Tenant to procure and maintain Security upon any with the exception of the events listed in Paragraph 10.4(c)(1)obligations under Section 8, Environmental Liability/Risk Allocation. Tenant’s failure to maintain the Security in the required amount during the Term constitutes a breach of this Lease. (b) All Security must be in a form acceptable to the State. (1) Bonds must be issued by companies admitted to do business within the State of Washington and have a rating of A-, Class VII or better, in the most recently published edition of A.M. Best’s Insurance Reports, unless State approves an exception in writingexception. Tenant may submit a request to the Risk Manager risk manager for the Department of Natural Resources for an exception to this requirement. (2) Letters of credit, if approved by State, must be irrevocable, allow State to draw funds at will, provide for automatic renewal, and comply with RCW 62A.5-101, et. seq. (3) Savings account assignments, if approved by State, must allow State to draw funds at will. (c) Adjustment in Amount of Security. (1) State may require an adjustment in the Security amount: (i) At the same time as revaluation of the Annual Rent, (ii) As a condition of approval of assignment or sublease of this Lease, (iii) Upon a material change in the condition or disposition of any Improvements, or (iv) Upon a change in the Permitted Use. (2) Tenant shall deliver a new or modified form of Security to State within thirty (30) days after State has required adjustment of the amount of the Security. (d) Upon any default by Tenant in its obligations under this Lease, State may collect on the Security to offset the liability of Tenant to State. Collection on the Security does not (1) relieve Tenant of liability, (2) limit any of State’s other remedies, (3) reinstate the Lease or cure the default or (4) prevent termination of the Lease because of the default.

Financial Security. (a) On the Commencement Date of this Lease, Tenant is not required to procure and maintain a corporate security bond or other financial security (“Security”). During the Term of this Lease, State may require Tenant to procure and maintain Security upon any of the events listed in Paragraph 10.4(c)(1). Tenant’s failure to maintain the Security in the required amount during the Term constitutes a breach of this Lease. (b) All Security must be in a form acceptable to the State. (1) Bonds must be issued by companies admitted to do business within the State of Washington and have a rating of A-, Class VII or better, in the most recently published edition of A.M. Best’s Insurance Reports, unless State approves an exception in writingexception. Tenant may submit a request to the Risk Manager risk manager for the Department of Natural Resources for an exception to this requirement. (2) Letters of credit, if approved by State, must be irrevocable, allow State to draw funds at will, provide for automatic renewal, and comply with RCW 62A.5-101, et. seq. (3) Savings account assignments, if approved by State, must allow State to draw funds at will. (c) Adjustment in Amount of Security. (1) State may require an adjustment in the Security amount: (i) At the same time as revaluation of the Annual Rent, (ii) As a condition of approval of assignment or sublease of this Lease, (iii) Upon a material change in the condition or disposition of any Improvements, or (iv) Upon a change in the Permitted Use. (2) Tenant shall deliver a new or modified form of Security to State within thirty (30) days after State has required adjustment of the amount of the Security. (d) Upon any default by Tenant in its obligations under this Lease, State may collect on the Security to offset the liability of Tenant to State. Collection on the Security does not (1) relieve Tenant of liability, (2) limit any of State’s other remedies, (3) reinstate the Lease or cure the default or (4) prevent termination of the Lease because of the default.

Financial Security. (a) On the Commencement Date of this LeaseAt its own expense, Tenant is not required to shall procure and maintain during the Term of this Lease a corporate security bond or provide other financial security that State, at its option, may approve (“Security”). During the Term Tenant shall provide Security in an amount equal to Five Hundred Dollars ($500), which is consistent with RCW 79.115.100, and secures Tenant’s performance of its obligations under this Lease, State may require Tenant to procure and maintain Security upon any with the exception of the events listed in Paragraph 10.4(c)(1)obligations under Section 8, Environmental Liability/Risk Allocation. Tenant’s failure to maintain the Security in the required amount during the Term constitutes a breach of this Lease. (b) All Security must be in a form acceptable to the State. (1) Bonds must be issued by companies admitted to do business within the State of Washington and have a rating of A-, Class VII or better, in the most recently published edition of A.M. Best’s Insurance Reports, unless State approves an exception in writingexception. Tenant may submit a request to the Risk Manager risk manager for the Department of Natural Resources for an exception to this requirement. (2) Letters of credit, if approved by State, must be irrevocable, allow State to draw funds at will, provide for automatic renewal, and comply with RCW 62A.5-101, et. seq. (3) Savings account assignments, if approved by State, must allow State to draw funds at will. (c) Adjustment in Amount of Security. (1) State may require an adjustment in the Security amount: (i) At the same time as revaluation of the Annual Rent, (ii) As a condition of approval of assignment or sublease of this Lease, (iii) Upon a material change in the condition or disposition of any Improvements, or (iv) Upon a change in the Permitted Use. (2) Tenant shall deliver a new or modified form of Security to State within thirty (30) days after State has required adjustment of the amount of the Security. (d) Upon any default by Tenant in its obligations under this Lease, State may collect on the Security to offset the liability of Tenant to State. Collection on the Security does not (1) relieve Tenant of liability, (2) limit any of State’s other remedies, (3) reinstate the Lease or cure the default or (4) prevent termination of the Lease because of the default.,