Common use of SECURITY DEPOSIT (SD) Clause in Contracts

SECURITY DEPOSIT (SD). 3.1 The Purchaser shall deposit with the Seller a sum of [Rs. (Indian Rupees )] equivalent to six percent (6%) of the Base Price of such Grade of Coal, as described in Schedule-II to this Agreement, prevalent on the date of deposit multiplied by ACQ, as Security Deposit (SD), in cash / Bank Guarantee on or before the signing of this Agreement. In case of multiple Grades indicated in Schedule-II, the highest Grade shall be considered for the purpose of calculation of SD without any commitment whatsoever to supply such Grade of Coal. Such Security Deposit shall be non-interest bearing. [In case the SD is in the form of a bank guarantee, the same shall be provided in the format enclosed with this Agreement at Schedule-III (“SD Bank Guarantee”)] 3.2 The Purchaser shall deposit at least one half of the amount of Security Deposit before the Effective Date and the balance amount shall be deposited within three (3) months of the Effective Date. Failure to submit the balance amount within three (3) months of the Effective Date, as aforementioned, shall entitle the Seller to adjust the ACQ such that it is commensurate with the Security Deposit submitted by the Purchaser. Accordingly, the Purchaser has furnished Rs. (Indian Rupees ) towards hundred percent (100%) / fifty percent (50%) [strike out which ever not applicable] of the Security Deposit amount stipulated in Clause 3.1 above. 3.3 The SD submitted by the Purchaser, as per Clause 3.2 above, shall remain valid till three (3) months from the expiry of this Agreement. 3.4 The value of the Security Deposit shall be suitably increased / decreased to match the changes in the Base Price notified by the Seller from time to time. In the event of failure of the Purchaser to provide such increased value within thirty (30) days from the date of notification of such change in Base Price, the Seller shall have the right to suspend Coal supplies. If additional SD due to such increase in the Base Price of Coal is submitted by way of additional bank guarantee, the period of validity of such bank guarantee shall be the same as that of the initial SD Bank Guarantee furnished in terms of clauses 3.1 to 3.3 above. Alternatively, the amount of the initial SD Bank Guarantee may be increased by an amendment so as to cover the increased value of SD resulting from the change in the Base Price. 3.5 The Security Deposit shall be refundable to the Purchaser at the end of its validity subject to successful completion of and complete settlement of all claims of Seller arising out of this Agreement. 3.6 The Purchaser shall ensure that the Security Deposit stands replenished within 7 (seven) days of drawl of funds by the Seller in accordance with the provisions of this Agreement. Failure to replenish the Security Deposit within such stipulated period shall entitle the Seller to suspend its Coal supplies without absolving the Purchaser of its obligations under this Agreement. 3.7 In the event of termination of the Agreement by the Seller in accordance with Clause

SECURITY DEPOSIT (SD). 3.1 The Purchaser shall deposit with the Seller a sum of [Rs. (Indian Rupees )] equivalent to six percent (6%) of the Base Price of such Grade of Coal, as described in Schedule-II to this Agreement, prevalent on the date of deposit multiplied by ACQ, as Security Deposit (SD), in cash / Bank Guarantee on or before the signing of this Agreement. In case of multiple Grades indicated in Schedule-II, the highest Grade shall be considered for the purpose of calculation of SD without any commitment whatsoever to supply such Grade of Coal. Such Security Deposit shall be non-interest bearing. [In case the SD is in the form of a bank guarantee, the same shall be provided in the format enclosed with this Agreement at Schedule-III (“SD Bank Guarantee”)’] 3.2 The Purchaser shall deposit at least one half of the amount of Security Deposit before the Effective Date and the balance amount shall be deposited within three (3) months of the Effective Date. Failure to submit the balance amount within three (3) months of the Effective Date, as aforementioned, shall entitle the Seller to adjust the ACQ such that it is commensurate with the Security Deposit submitted by the Purchaser. Accordingly, the Purchaser has furnished Rs. (Indian Rupees ) towards hundred percent (100%) / fifty percent (50%) [strike out which ever not applicable] of the Security Deposit amount stipulated in Clause 3.1 above. 3.3 The SD submitted by the Purchaser, as per Clause 3.2 above, shall remain valid till three (3) months from the expiry of this Agreement. 3.4 The value of the Security Deposit shall be suitably increased / decreased to match the changes in the Base Price notified by the Seller from time to time. In the event of failure of the Purchaser to provide such increased value within thirty (30) days from the date of notification of such change in Base Price, the Seller shall have the right to suspend the Coal supplies. If additional SD due to such increase in the Base Price of Coal is submitted by way of additional bank guarantee, the period of validity of such bank guarantee shall be the same as that of the initial SD Bank Guarantee furnished in terms of clauses 3.1 to 3.3 above. Alternatively, the amount of the initial SD Bank Guarantee may be increased by an amendment so as to cover the increased value of SD resulting from the change in the Base Price. 3.5 The Security Deposit shall be refundable to the Purchaser at the end of its validity subject to successful completion of and complete settlement of all claims of Seller arising out of this Agreement. 3.6 The Purchaser shall ensure that the Security Deposit stands replenished within 7 (seven) days of drawl of funds by the Seller in accordance with the provisions of this Agreement. Failure to replenish the Security Deposit within such stipulated period shall entitle the Seller to suspend its Coal supplies without absolving the Purchaser of its obligations under this Agreement. 3.7 In the event of termination of the Agreement by the Seller in accordance with Clause

SECURITY DEPOSIT (SD). 3.1 The Purchaser shall deposit with the Seller a sum of [Rs. (Indian Rupees )] equivalent to six percent (6%) of the Base Price of such Grade of Coal, as described in Schedule-II to this Agreement, prevalent on the date of deposit multiplied by ACQ, as Security Deposit (SD), in cash / Bank Guarantee on or before the signing of this Agreement. In case of multiple Grades indicated in Schedule-II, the highest Grade shall be considered for the purpose of calculation of SD without any commitment whatsoever to supply such Grade of Coal. Such Security Deposit shall be non-interest bearing. [In case the SD is in the form of a bank guarantee, the same shall be provided in the format enclosed with this Agreement at Schedule-III (“SD Bank Guarantee”)] 3.2 The Purchaser shall deposit at least one half of the amount of Security Deposit before the Effective Date and the balance amount shall be deposited within three (3) months of the Effective Date. Failure to submit the balance amount within three (3) months of the Effective Date, as aforementioned, shall entitle the Seller to adjust the ACQ such that it is commensurate with the Security Deposit submitted by the Purchaser. Accordingly, the Purchaser has furnished Rs. (Indian Rupees ) towards hundred percent (100%) / fifty percent (50%) [strike out which ever not applicable] of the Security Deposit amount stipulated in Clause 3.1 above. 3.3 The SD submitted by the Purchaser, as per Clause 3.2 above, shall remain valid till three (3) months from the expiry of this Agreement. 3.4 The value of the Security Deposit shall be suitably increased / decreased to match the changes in the Base Price notified by the Seller from time to time. In the event of failure of the Purchaser to provide such increased value within thirty (30) days from the date of notification of such change in Base Price, the Seller shall have the right to suspend Coal supplies. If additional SD due to such increase in the Base Price of Coal is submitted by way of additional bank guarantee, the period of validity of such bank guarantee shall be the same as that of the initial SD Bank Guarantee furnished in terms of clauses 3.1 to 3.3 above. Alternatively, the amount of the initial SD Bank Guarantee may be increased by an amendment so as to cover the increased value of SD resulting from the change in the Base Price. 3.5 The Security Deposit shall be refundable to the Purchaser at the end of its validity subject to successful completion of and complete settlement of all claims of Seller arising out of this Agreement. 3.6 The Purchaser shall ensure that the Security Deposit stands replenished within 7 (seven) days of drawl of funds by the Seller in accordance with the provisions of this Agreement. Failure to replenish the Security Deposit within such stipulated period shall entitle the Seller to suspend its Coal supplies without absolving the Purchaser of its obligations under this Agreement. 3.7 In the event of termination of the Agreement by the Seller in accordance with ClauseClause 16.1.4 to 16.1.8, the Seller shall be entitled to forfeit the Security Deposit of the Purchaser in addition to any other rights vested with the Seller upon such termination.

SECURITY DEPOSIT (SD). 3.1 The Purchaser shall deposit with the Seller a sum of [Rs. (Indian Rupees )] equivalent to six percent (6%) of the Base Price of such Grade of Coal, as described in Schedule-II to this Agreement, prevalent on the date of deposit multiplied by ACQ, as Security Deposit (SD), in cash / Bank Guarantee on or before the signing of this Agreement. In case of multiple Grades indicated in Schedule-II, the highest Grade shall be considered for the purpose of calculation of SD without any commitment whatsoever to supply such Grade of Coal. Such Security Deposit shall be non-interest bearing. [In case the SD is in the form of a bank guarantee, the same shall be provided in the format enclosed with this Agreement at Schedule-III (“SD Bank Guarantee”)’] 3.2 The Purchaser shall deposit at least one half of the amount of Security Deposit before the Effective Date and the balance amount shall be deposited within three (3) months of the Effective Date. Failure to submit the balance amount within three (3) months of the Effective Date, as aforementioned, shall entitle the Seller to adjust the ACQ such that it is commensurate with the Security Deposit submitted by the Purchaser. Accordingly, the Purchaser has furnished Rs. (Indian Rupees ) towards hundred percent (100%) / fifty percent (50%) [strike out which ever not applicable] of the Security Deposit amount stipulated in Clause 3.1 above. 3.3 The SD submitted by the Purchaser, as per Clause 3.2 above, shall remain valid till three (3) months from the expiry of this Agreement. 3.4 The value of the Security Deposit shall be suitably increased / decreased to match the changes in the Base Price notified by the Seller from time to time. In the event of failure of the Purchaser to provide such increased value within thirty (30) days from the date of notification of such change in Base Price, the Seller shall have the right to suspend the Coal supplies. If additional SD due to such increase in the Base Price of Coal is submitted by way of additional bank guarantee, the period of validity of such bank guarantee shall be the same as that of the initial SD Bank Guarantee furnished in terms of clauses 3.1 to 3.3 above. Alternatively, the amount of the initial SD Bank Guarantee may be increased by an amendment so as to cover the increased value of SD resulting from the change in the Base Price. 3.5 The Security Deposit shall be refundable to the Purchaser at the end of its validity subject to successful completion of and complete settlement of all claims of Seller arising out of this Agreement. 3.6 The Purchaser shall ensure that the Security Deposit stands replenished within 7 seven (seven7) days of drawl of funds by the Seller in accordance with the provisions of this Agreement. Failure to replenish the Security Deposit within such stipulated period shall entitle the Seller to suspend its Coal supplies without absolving the Purchaser of its obligations under this Agreement. 3.7 3.6 In the event of termination of the Agreement by the Seller in accordance with ClauseClause 15.1.4 to 15.1.8, the Seller shall be entitled to forfeit the Security Deposit of the Purchaser in addition to any other rights vested with the Seller upon such termination.

SECURITY DEPOSIT (SD). 3.1 The Purchaser shall deposit with the Seller a sum of [Rs. (Indian Rupees )] equivalent to six percent (6%) of the Base Price of such Grade of Coal, as described in Schedule-II to this Agreement, prevalent on the date of deposit multiplied by ACQ, as Security Deposit (SD), in cash / Bank Guarantee on or before the signing of this Agreement. In case of multiple Grades indicated in Schedule-II, the highest Grade shall be considered for the purpose of calculation of SD without any commitment whatsoever to supply such Grade of Coal. Such Security Deposit shall be non-interest bearing. [In case the SD is in the form of a bank guarantee, the same shall be provided in the format enclosed with this Agreement at Schedule-III (“SD Bank Guarantee”)] 3.2 The Purchaser shall deposit at least one half of the amount of Security Deposit before the Effective Date and the balance amount shall be deposited within three (3) months of the Effective Date. Failure to submit the balance amount within three (3) months of the Effective Date, as aforementioned, shall entitle the Seller to adjust the ACQ such that it is commensurate with the Security Deposit submitted by the Purchaser. Accordingly, the Purchaser has furnished Rs. (Indian Rupees ) towards hundred percent (100%) / fifty percent (50%) [strike out which ever not applicable] of the Security Deposit amount stipulated in Clause 3.1 above. 3.3 The SD submitted by the Purchaser, as per Clause 3.2 above, shall remain valid till three (3) months from the expiry of this Agreement. 3.4 The value of the ofthe Security Deposit shall Depositshall be suitably increased suitablyincreased / decreased to decreasedto match the changes thechanges in the Base Price notified by the Seller from time to time. In the event of failure of the Purchaser to provide such increased value within thirty (30) days from the date of notification of such change in Base Price, the Seller shall have the right to suspend Coal supplies. If additional SD due to such increase in the Base Price of Coal is submitted by way of additional bank guarantee, the period of validity of such bank guarantee shall be the same as that of the initial SD Bank Guarantee furnished in terms of clauses 3.1 to 3.3 above. Alternatively, the amount of the initial SD Bank Guarantee may be increased by an amendment so as to cover the increased value of SD resulting from the change in the Base Price. 3.5 The Security Deposit shall be refundable to the Purchaser at the end of its validity subject to successful completion of and complete settlement of all claims of Seller arising out of this Agreement. 3.6 The Purchaser shall ensure shallensure that the Security Deposit stands replenished within 7 (seven) days seven)days of drawl of funds by the Seller in accordance with the provisions of this Agreement. Failure to replenish the Security Deposit within such stipulated period shall entitle the Seller to suspend its Coal supplies without absolving the Purchaser of its obligations under this Agreement. 3.7 In the event of termination of the Agreement by the Seller in accordance with ClauseClause 16.1.4 to 16.1.8, the Seller shall be entitled to forfeit the Security Deposit of the Purchaser in addition to any other rights vested with the Seller upon such termination.

SECURITY DEPOSIT (SD). 3.1 The Purchaser shall deposit with the Seller a sum of [Rs. (Indian Rupees )] equivalent to six percent (6%) of the Base Price of such Grade of Coal, as described in Schedule-II to this Agreement, prevalent on the date of deposit multiplied by ACQ, as Security Deposit (SD), in cash / Bank Guarantee on or before the signing of this Agreement. In case of multiple Grades indicated in Schedule-II, the highest Grade shall be considered for the purpose of calculation of SD without any commitment whatsoever to supply such Grade of Coal. Such Security Deposit shall be non-interest bearing. [In case the SD is in the form of a bank guarantee, the same shall be provided in the format enclosed with this Agreement at Schedule-III (“SD Bank Guarantee”)’] 3.2 The Purchaser shall deposit at least one half of the amount of Security Deposit before the Effective Date and the balance amount shall be deposited within three (3) months of the Effective Date. Failure to submit the balance amount within three (3) months of the Effective Date, as aforementioned, shall entitle the Seller to adjust the ACQ such that it is commensurate with the Security Deposit submitted by the Purchaser. Accordingly, the Purchaser has furnished Rs. (Indian Rupees ) towards hundred percent (100%) / fifty percent (50%) [strike out which ever not applicable] of the Security Deposit amount stipulated in Clause 3.1 above. 3.3 The SD submitted by the Purchaser, as per Clause 3.2 above, shall remain valid till three (3) months from the expiry of this Agreement. 3.4 The value of the ofthe Security Deposit shall Depositshall be suitably increased suitablyincreased / decreased to decreasedto match the changes thechanges in the Base Price notified by the Seller from time to time. In the event of failure of the Purchaser to provide such increased value within thirty (30) days from the date of notification of such change in Base Price, the Seller shall have the right to suspend the Coal supplies. If additional SD due to such increase in the Base Price of Coal is submitted by way of additional bank guarantee, the period of validity of such bank guarantee shall be the same as that of the initial SD Bank Guarantee furnished in terms of clauses 3.1 to 3.3 above. Alternatively, the amount of the initial SD Bank Guarantee may be increased by an amendment so as to cover the increased value of SD resulting from the change in the Base Price. 3.5 The Security Deposit shall be refundable to the Purchaser at the end of its validity subject to successful completion of and complete settlement of all claims of Seller arising out of this Agreement. 3.6 The Purchaser shall ensure shallensure that the Security Deposit stands replenished within 7 seven (seven) days 7)days of drawl of funds by the Seller in accordance with the provisions of this Agreement. Failure to replenish the Security Deposit within such stipulated period shall entitle the Seller to suspend its Coal supplies without absolving the Purchaser of its obligations under this Agreement. 3.7 3.6 In the event of termination of the Agreement by the Seller in accordance with ClauseClause 15.1.4 to 15.1.8, the Seller shall be entitled to forfeit the Security Deposit of the Purchaser in addition to any other rights vested with the Seller upon such termination.