Common use of Security Deposit Clause in Contracts

Security Deposit. Tenant has deposited with Landlord the Security Deposit in the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.

Security Deposit. Tenant has deposited with Landlord A deposit (the "SECURITY DEPOSIT") in the form of cash or an unconditional, irrevocable $1,000,000.00 letter of credit issued by a national bank reasonably acceptable to LANDLORD, and in the form of EXHIBIT E attached hereto and incorporated herein by reference, shall be paid by TENANT within five (5) business days after execution of this Lease and shall be held by the holder of the first mortgage on the Building (the "SD HOLDER") without liability for interest and as security for the performance by TENANT of TENANT's covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of rent or a measure of LANDLORD's damages in case of default by TENANT. The SD Holder shall provide TENANT with acknowledgement of the amount receipt thereof and shall from time to time, at TENANT's request, provide TENANT with information with respect to the status thereof. Notwithstanding the deposit of the Security Deposit with the SD Holder, LANDLORD shall retain all obligations with respect thereto set forth above herein. In the event that cash is, at any time, held as the Security Deposit hereunder, the holder thereof shall hold such cash as trustee in a segregated account for the performance property for the benefit of each the TENANT subject only to the terms and every covenant and agreement to be performed by Tenant under provisions of this Lease. Landlord Upon the occurrence of any Event of Default under this Lease by TENANT, LANDLORD may, from time to time, without prejudice to any other remedy and without prior notice, use such portion of the Security Deposit as is necessary to make good any arrearages of any installment of Basic Annual Rent, additional rents, or other amounts or charges payable by TENANT hereunder, or any other damage, injury, expense, or liability caused to LANDLORD by such breach or default. For draws by LANDLORD for damage, injury, expense or liability other than failure by TENANT to pay Basic Annual Rent or additional rents, LANDLORD will not draw an amount in excess of $100,000.00 without five (5) business days notice to TENANT specifying the amount of the intended draw. At any time LANDLORD is holding cash as the Security Deposit hereunder, TENANT shall have the right, but not in accordance with the obligationterms hereof, to apply replace such cash with a letter of credit and upon such replacement, LANDLORD shall return the cash held to TENANT. If LANDLORD shall transfer its interest in the property, LANDLORD shall assign the Security Deposit in whole or in part as payment to the transferee. At the end of such amounts as are reasonably necessary to remedy Tenant's defaults in every Lease Year, TENANT shall have the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to reduce the amount of cash by $100,000.00 or replace the letter of credit comprising the Security Deposit with a letter of credit in an amount reduced by $100,000.00, provided in either instance, at no time during the previous Lease Year has there been a Tenant Event of Default under this Lease. Following any application of the Security Deposit, if the Security Deposit is in the form of a letter of credit TENANT shall have issued to LANDLORD on demand a replacement letter of credit in the full amount of the letter of credit prior to LANDLORD's draw. Landlord shall give Tenant written Failure by TENANT to replace the letter of credit (i) in the full amount within ten (10) days of receipt by TENANT of notice of LANDLORD's draw or (ii) no later than five (5) days prior to the application stated expiration date, shall, in either instance, be an Event of Default under this Lease, and in the case the event described in (ii) occurs, shall permit LANDLORD to draw the entire amount of the letter of credit. Any balance of the Security Deposit or any part thereof remaining at the end of the term shall be returned to TENANT within thirty (30) days after TENANT's compliance with each and every provision of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable lawArticle 19 hereof. In the event of a sale, lease, TENANT exercises its option to acquire all or other transfer part of the Buildingtenth floor, Landlord may transfer or assign said TENANT shall increase the Security Deposit by $1,000,000.00 (subject to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for reduction as set forth in Section 32.1) at the return time of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer exercise of the Building. The option, and thereafter the annual reduction of the total Security Deposit shall not continue to be deemed or construed as advance payment of rent for any month of the lease term$100,000.00.

Security Deposit. Concurrently with Tenant’s execution of this Lease, Tenant has deposited shall pursuant to the terms and conditions of Paragraph 25.20, provide Landlord with a Letter of Credit in the amount of SEVEN HUNDRED THOUSAND AND 00/100 DOLLARS ($700,000.00) as Security. At such time that Tenant is relieved of its obligation to post the Letter of Credit Tenant shall deposit with Landlord the sum of ONE HUNDRED THOUSAND FIVE HUNDRED SIXTY-THREE AND 67/100 DOLLARS ($100,563.67) as a Security Deposit in (the amount set forth above “Security Deposit”). The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of each all of the terms, covenants and every covenant and agreement conditions of this Lease to be performed by Tenant under during the term hereof. If Tenant defaults with respect to any provision of this Lease. Landlord shall have , including the right, but not the obligation, provisions relating to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason Rent, Landlord may (but shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application required to) use, apply or retain all or any part of the Security Deposit to cure such default or to compensate Landlord for any part thereof other loss or damage which Landlord may suffer by reason of Tenant’s default. If any portion of said deposit is so used or applied, Tenant shall, within thirty ten (3010) days of said application. If the application is on account of maintenanceafter written demand therefor, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to deposit cash with Landlord in an amount sufficient to restore the Security Deposit in full. Upon termination to its original amount; Tenant’s failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep the Security Deposit separate from its general funds, full payment and Tenant shall not be entitled to interest on such deposit. If Tenant shall fully and faithfully perform every provision of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15)this Lease to be performed by it, the Security Deposit or any portion balance thereof remaining unapplied shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) upon the expiration of the Lease term and Tenant’s vacating the Premises; provided, however, that Landlord may elect in accordance its reasonable discretion to retain a portion of the Security Deposit in an amount composed of any or all of the following: (i) any unpaid amounts owed to Landlord pursuant to this Lease, (ii) the cost of any damage (excluding normal wear and tear or damage resulting from the approved installation of wall hangings by Landlord) to the Premises, (iii) the costs of removing any personal property refuse or debris left in the Premises at the expiration of the Lease, and (iv) any sums underpaid by Tenant with applicable lawrespect to Operating Costs for the calendar year in which the Lease ends under Paragraph 5 if Landlord determines there will be an increase in Operating Expenses for said calendar year. In the event of a sale, lease, or other transfer termination of the BuildingLandlord’s interest in this Lease, Landlord may shall transfer or assign said the Security Deposit to Landlord's grantee’s successor-in-interest and provided that such successor-in-interest agrees in writing to assume the obligations of Landlord under this Lease, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely shall be released from liability for the return of said the Security DepositDeposit or the accounting therefor. The Tenant hereby waives the provisions hereof shall apply to each and every sale, lease or other transfer of Section 1950.7 of the Building. The Security Deposit shall not be deemed California Civil Code, and all other provisions of any Regulations, now or construed as advance payment hereafter in force, which restricts the amount or types of rent for claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any month obligation with respect to the handling or return of the lease termsecurity deposits.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant has deposited with shall pay to Landlord the Security Deposit, which shall be held by Landlord to secure Tenant’s performance of its obligations under this Lease. The Security Deposit in is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount set forth above for so applied in order to restore the performance Security Deposit to its original amount. Provided that Tenant has performed all of each its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and every covenant Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and agreement to be performed the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease. Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord shall is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the rightcalendar year in which the Term expires if Landlord has not received a Tax xxxx from all applicable taxing authorities at the time of such expiration); provided, but not however, the obligation, to apply portion of the Security Deposit in whole or in part as payment retained by Landlord pursuant to the foregoing shall not exceed 50% of such amounts as are reasonably necessary to remedy Tenant's defaults the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the payment of rent or in Premises and the performance of transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited Security Deposit to the amount transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord shall give and Tenant written notice of the application of under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.

Security Deposit. If a security deposit is specified in Section 1.1 hereof, Tenant has deposited with agrees that the same will be paid upon execution and delivery of this Lease, and that Landlord shall hold the Security Deposit in same throughout the amount set forth above Term of this Lease as security for the performance of each and every covenant and agreement to be performed by Tenant under this Leaseof all obligations on the part of Tenant hereunder. Landlord shall have the rightright from time to time, but not the obligationwithout prejudice to any other remedy Landlord may have on account thereof, to apply the Security Deposit in whole such deposit, or in any part as payment thereof, to Landlord’s damages arising from, or to cure, any Event of Default. If Landlord shall so apply any or all of such amounts deposit, Tenant shall immediately upon demand deposit with Landlord the amount so applied to be held as are reasonably necessary security hereunder. Landlord shall return the deposit, or so much thereof as shall not have theretofore been applied in accordance with the terms of this Section, to remedy Tenant's defaults in Tenant on the payment of rent expiration or in the performance earlier termination of the covenants or agreements contained herein. Landlord's right to Term of this Lease and surrender of possession of the Property for non-payment Premises by Tenant to Landlord at such time, provided that there is then existing no Event of rent Default (nor any circumstance which, with the passage of time or any other reason shall not be affected by the fact that giving of notice, or both, would constitute an Event of Default). While Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. such deposit, Landlord shall give Tenant written notice of have no obligation to pay interest on the application of same and shall have the Security Deposit right to commingle the same with Landlord’s other funds. If Landlord conveys Landlord’s interest under this Lease, the deposit, or any part thereof within thirty (30) days of said application. If the application is on account of maintenancenot previously applied, repairs or replacements necessitated may be turned over by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's ’s grantee, lessee or assignee. Provided said granteeand, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunderif so turned over, Tenant agrees to look solely to such granteegrantee for proper application of the deposit in accordance with the terms of this Section, lessee or assignee solely and the return thereof in accordance herewith. The holder of a mortgage shall not be responsible to Tenant for the return or application of said Security Deposit. The provisions hereof any such deposit, whether or not it succeeds to the position of Landlord hereunder, unless such deposit shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termhave been received in hand by such holder.

Security Deposit. Tenant has deposited or concurrently herewith is depositing with Landlord the Security Deposit in the amount sum set forth above in Article 1.F. of the Basic Lease Provisions as security for the full and faithful performance of each and every covenant and agreement provision of this Lease to be performed by Tenant. If Tenant under breaches any provision of this Lease. Landlord shall have the right, including but not the obligation, limited to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent rent, Landlord may use all or in any part of this security deposit for the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of any rent or any other sums in default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default. If any portion of said deposit is so used or applied, Tenant shall, within five (5) days after written demand therefor, deposit funds with Landlord in a form acceptable under Section 3(b) above and in an amount sufficient to restore the security deposit to its full amount. Tenant agrees that Landlord shall not be affected required to keep the security deposit in trust, segregate it or keep it separate from Landlord's general funds, but Landlord may commingle the security deposit with its general funds and Tenant shall not be entitled to interest on such deposit. At the expiration of the Term, and provided there exists no default by Tenant hereunder, the fact that Landlord holds security. security deposit or any balance thereof shall be returned to Tenant (or, at Landlord's option, to Tenant's liability "Transferee", as such term is not limited defined in Article 15 below), provided that subsequent to the expiration of this Lease, Landlord may retain from said security deposit (i) an amount reasonably estimated by Landlord to cover potential Direct Cost reconciliation payments due with respect to the calendar year in which this Lease terminates or expires (such amount so retained shall not, in any event, exceed ten percent (10%) of estimated Direct Cost payments due from Tenant for such calendar year through the Security Deposit. Landlord date of expiration or earlier termination of this Lease and any amounts so retained and not applied to such reconciliation shall give be returned to Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost after Landlord's delivery of the sameStatement for such calendar year), attaching estimates or paid receipts. Upon receipt of said notice, (ii) any and all amounts reasonably estimated by Landlord to cover the anticipated costs to be incurred by Landlord to remove any signage provided to Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of under this Lease, full payment of all amounts due to remove cabling and performance of all Tenant's covenants other items required to be removed by Tenant under Section 29(b) below and agreements to repair any damage caused by such removal (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or which case any portion thereof remaining unapplied excess amount so retained by Landlord shall be returned to Tenant in accordance with applicable lawwithin thirty (30) days after such removal and repair), and (iii) any and all amounts permitted by law or this Article 4. In Tenant hereby waives the event provisions of a sale, lease, or other transfer Section 1950.7 of the BuildingCalifornia Civil Code and all other provisions of law, now or hereafter in effect, which provide that Landlord may transfer claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant or assign said Security Deposit to clean the Premises, it being agreed that Landlord may, in addition, claim those sums specified in this Article 4 above, and all of Landlord's granteedamages under this Lease and California law including, lessee or assignee. Provided said granteebut not limited to, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return any damages accruing upon termination of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer this Lease under Section 1951.2 of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent California Civil Code and/or those sums reasonably necessary to compensate Landlord for any month other loss or damage, foreseeable or unforeseeable, caused by the acts or omissions of the lease termTenant or any officer, employee, agent, contractor or invitee of Tenant.

Security Deposit. Upon execution of this Lease, Tenant has deposited shall deposit with Landlord the sum of Five Hundred Thousand Dollars ($500,000.00) or a Letter of Credit pursuant to the terms of Paragraph 4 (F)(1) below. Said sum shall be held by Landlord as a Security Deposit in the amount set forth above for the faithful performance by Tenant of each all of the terms, covenants, and every covenant and agreement conditions of this Lease to be kept and performed by Tenant under during the term hereof. If Tenant defaults with respect to any provision of this Lease. Landlord shall have the right, including, but not limited to, the obligation, provisions relating to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance and any of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason monetary sums due herewith, Landlord may (but shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit required to) use, apply or retain all or any part thereof of this Security Deposit for the payment of any other amount which Landlord may spend by reason of Tenant’s default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant’s default. If any portion of said Deposit is so used or applied, Tenant shall, within thirty ten (3010) days of said application. If the application is on account of maintenance, repairs or replacements necessitated after written demand therefor accompanied by tenant, said notice shall include the estimated or actual cost a reasonably detailed written explanation of the samebasis for Landlord’s use of such funds, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to deposit cash with Landlord an in the amount sufficient to restore the Security Deposit in fullto its original amount. Upon termination Tenant’s failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep this Security Deposit separate from its general funds, full payment and Tenant shall not be entitled to interest on such Deposit. If the Tenant fully and faithfully performs every provision of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15)this Lease to be performed by it, the Security Deposit or any portion balance thereof remaining unapplied shall be returned to Tenant in accordance with applicable law(or at Landlord’s option, to the last assignee of Tenant’s interest hereunder) at the expiration of the Lease term and after Tenant has vacated the Premises less amounts retained to cover uncured defaults. In the event of a sale, termination of Landlord’s interest in this lease, or other Landlord shall transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, ’s successor in interest whereupon Tenant agrees to look to such grantee, lessee or assignee solely release Landlord from liability for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease such Deposit or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termaccounting therefor.

Security Deposit. Tenant Lessee has deposited with Landlord Lessor, and Lessor hereby acknowledges receipt of, Twenty One Thousand Two Hundred Seventv-Two and 76/100 Dollars ($21,272.76) (the "Security Deposit") which shall be held by Lessor, without accrual of interest, as security for the faithful performance by Lxxxxx of all of the terms of this Lease and not as an advance rent deposit or a measure of Lessor’s damages in the case of Lxxxxx’s default. Such Security Deposit shall not be mortgaged, assigned, transferred or encumbered by Lxxxxx without the express prior written consent of Lessor. If Lessee shall fail to perform any of the terms of this Lease, then Lessor, at its option and without prejudice to any other remedy which Lessor may have on account thereof, may appropriate and apply all or any part of the Security Deposit in toward the amount set forth above for payment of any Rent or additional sum due hereunder or to any loss or damage sustained by Lessor due to such breach on the performance part of each Lessee; and every covenant and agreement to be performed by Tenant under this Lease. Landlord Lessee shall have the right, but not the obligation, to apply forthwith upon demand restore the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Depositoriginal sum deposited. Landlord shall give Tenant written notice of the application Any funds paid by Lessee to Lessor as part of the Security Deposit or any part thereof within thirty (30) days of said application. If as a deposit or advance pursuant to the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination terms of this Lease, full payment or any exhibit, addendum or modification hereto, may be commingled with other funds of Lessor and need not be placed in trust, deposited in escrow or otherwise held in a segregated account. Should Lessee comply with all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15)terms hereof and promptly pay all of the rentals and all other sums payable by Lessee to Lessor as they become due, the Security Deposit or any portion thereof remaining unapplied shall be returned in full to Tenant in accordance with applicable lawLessee within 30 days after the end of the Term. In the event of a sale, lease, bankruptcy or other transfer of creditor/debtor proceeding against Lxxxxx, the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance to be first applied to the payment of rent Rent and other charges due Lessor for all periods prior to the filing of such proceedings. Lessor may deliver the Security Deposit and any month other deposit made hereunder by Lxxxxx to the purchaser of Lessor’s interest in all or any part of the lease term.Project and thereupon Lessor shall be discharged from any further liability with respect to such deposit; provided that such successor has assumed all of Lessor’s responsibilities and duties hereunder in writing; and this provision shall also apply to any subsequent transferee of Lessor

Security Deposit. Subject to Paragraph 50, concurrently with Tenant's execution of this Lease, Tenant has deposited shall deposit with Landlord the sum of EIGHTY TWO THOUSAND TWO HUNDRED TWENTY NINE AND 70/100 ($82,229.70) Dollars. Said sum shall be held by Landlord as a Security Deposit in the amount set forth above for the faithful performance by Tenant of each all of the terms, covenants, and every covenant and agreement conditions of this Lease to be kept and performed by Tenant under during the term hereof. If Tenant defaults with respect to any provision of this Lease. Landlord shall have the right, including, but not limited to, the obligation, provisions relating to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance and any of the covenants or agreements contained hereinmonetary sums due herewith. Landlord's right to possession of the Property for non-payment of rent or any other reason Landlord may (but shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit required to) use, apply or retain all or any part thereof of this Security Deposit for thc payment of any other amount which Landlord may spend by reason of Tenant's default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default. If any portion of said Deposit is so used or applied, Tenant shall, within thirty ten (3010) days of said application. If after written demand therefor, deposit cash with Landlord in the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in fullto its original amount. Upon termination Tenant's failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep this Security Deposit separate from its general funds, full payment and Tenant shall not be entitled to interest on such Deposit. If Tenant fully and faithfully performs every provision of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), this Lease to be performed by it. the Security Deposit or any portion balance thereof remaining unapplied shall be returned to Tenant in accordance with applicable law(or at Landlord's option, to the last assignee of Tenant's interest hereunder) at the expiration of the Lease term and after Tenant has vacated the Premises. In the event of a sale, lease, or other termination of Landlord's interest in this Lease. Landlord shall transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, successor in interest whereupon Tenant agrees to look to such grantee, lessee or assignee solely release Landlord from liability for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease such Deposit or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termaccounting therefor.

Security Deposit. Tenant has deposited hereby deposits with Landlord the Security Deposit in the amount set forth above sum of $9,955.00 (hereinafter referred to as “Collateral”), as security for the prompt, full and faithful performance by Tenant of each and every covenant provision of this Lease and agreement of all obligations of Tenant hereunder. No interest shall be paid to be performed by Tenant under this Lease. on the Collateral, and Landlord shall have the rightright to commingle the Collateral with Landlord’s other funds. If Tenant fails to perform any of its obligations hereunder, but not Landlord may use, apply or retain the obligation, to apply the Security Deposit in whole or in any part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the Collateral for the payment of (a) any rent or other sums of money which Tenant may not have paid when due, (b) any sum expended by Landlord on Tenant’s behalf in accordance with the performance provisions of this Lease, and/or (c) any sum which Landlord may expend or be required to expend by reason of Tenant’s default, including, without limitation, any damage or deficiency in or from the reletting of the covenants Premises as provided in Paragraph 21. The use, application or agreements contained herein. Landlord's right to possession retention of the Property for non-payment of rent Collateral, or any other reason portion thereof, by Landlord shall not be affected prevent Landlord from exercising any other right or remedy provided by the fact this Lease or by law (it being intended that Landlord holds securityshall not first be required to proceed against the Collateral) and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. Tenant's liability is not limited to the amount If any portion of the Security Deposit. Collateral is used, applied or retained by Landlord shall give Tenant for the purposes set forth above, Txxxxx agrees, within ten days after the written notice of demand therefor is made by Landlord, to deposit cash with the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord in an amount sufficient to restore the Security Deposit in fullCollateral to its original amount. Upon termination If Tenant shall fully and faithfully comply with all of the provisions of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15)Collateral, the Security Deposit or any portion thereof remaining unapplied balance thereof, shall be returned to Tenant in accordance with applicable lawwithout interest after the expiration of the Term or upon any later date after which Txxxxx has vacated the Premises. In the event absence of a sale, leaseevidence satisfactory to Landlord of any permitted assignment of the right to receive the Collateral, or other transfer of the Buildingremaining balance thereof, Landlord may return the same to the original Tenant, regardless of one or more assignments of Tenant’s interest in this Lease or the Collateral. In such event, upon the return of the Collateral, or the remaining balance thereof to the original Tenant, Landlord shall be completely relieved of liability under this Paragraph 24 or otherwise with respect to the Collateral. Tenant acknowledges that Lxxxxxxx has the right to transfer or mortgage its interest in the Land and the Building and in this Lease and Txxxxx agrees that in the event of any such transfer or mortgage, Landlord shall have the right to transfer or assign said Security Deposit the Collateral to Landlord's granteethe transferee or mortgagee. Upon written acknowledgement of transferee’s or mortgagee’s receipt of such Collateral, lessee Landlord shall thereby be released by Tenant from all liability or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely obligation for the return of said Security Depositsuch Collateral and Tenant shall look solely to such transferee or mortgagee for the return of the Collateral. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit Collateral shall not be deemed mortgaged, assigned or construed as advance payment encumbered in any manner whatsoever by Tenant without the prior written consent of rent for any month of the lease termLandlord.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant has deposited shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit in separate from its general funds, and Tenant shall not be entitled to interest on the amount set forth above for Security Deposit. Subject to the performance last sentence of each this Section, the Security Deposit shall be understood and every covenant and agreement agreed to be performed the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord shall have may, in its sole and absolute discretion, use or apply the rightwhole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease including, but not limited to, sums that Landlord may reasonably expend or be required to expend by reason of the obligation, Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit in whole or in part as payment upon an Event of such amounts as are reasonably necessary Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to remedy pay Basic Rent, Tenant's defaults in the payment ’s Share of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent Operating Expenses or any other reason amount due to Landlord pursuant to this Lease, shall not be affected by diminished or altered in any respect due to the fact that Landlord holds security. Tenant's liability is not limited to the amount of holding the Security Deposit. Landlord shall give Tenant written notice of the application If any portion of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated applied by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said noticeLandlord as permitted by this Section, Tenant shall at once pay to within five (5) business days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit in fullto its original amount. Upon termination of If Tenant fully performs its obligations under this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with applicable law. In the event of a salethis Lease have been determined (which determination shall not be unreasonably withheld, lease, conditioned or other transfer of the Building, delayed) and paid in full and Tenant agrees that Tenant shall have no claim against Landlord may transfer or assign said for Landlord’s retaining such Security Deposit to Landlord's grantee, lessee or assigneethe extent provided in this Section. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunderthat no Event of Default has theretofore occurred under any provision of this Lease, Tenant agrees shall have the right to look have the Security Deposit reduced to the amount of One Hundred Twenty-Three Thousand One Hundred Eight Dollars ($123,108.00) by sending written request thereof to Landlord, which request shall be accompanied by Tenant’s audited Statements demonstrating two (2) immediately prior consecutive years of positive net income for Tenant. Following such granteewritten request to Landlord, lessee or assignee solely for Tenant shall be credited in the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer amount of the Building. The difference between the amount of the Security Deposit shall not be deemed or construed as advance payment of rent for any month stated in Item 9 of the lease termBasic Lease Provisions and the reduced amount of Security Deposit set forth above, against Basic Rent and Operating Expenses next coming due under this Lease.

Security Deposit. Not later than December 31, 2007, Tenant has deposited agrees to deposit with Landlord, the sum of $95,000.00 to be held by Landlord the Security Deposit in the amount set forth above as security for the faithful performance of each all the terms and every covenant conditions of this Lease (“Security Deposit”). Should the Tenant breach any of the terms and agreement to be performed by Tenant under conditions of this Lease. Lease which continues beyond any applicable cure period and required notice, Landlord shall have the right, but not the obligationat any time, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason part thereof, for the purpose of curing any such default or for the purpose of reimbursing Landlord for any damage or costs occasioned by such default, but the right of Landlord to apply the Security Deposit shall not be affected by the fact that affect any other remedies available to Landlord holds securityunder this Lease or under applicable law. Tenant's liability is not limited to the amount of If the Security Deposit, or any part thereof, is so applied by Landlord, Tenant shall, within ten (10) days after demand, deposit additional funds with Landlord to restore the Security Deposit, and failure to do so shall constitute an event of default under this Lease. Landlord If the Tenant shall give Tenant written notice have complied with all material terms and conditions of this Lease at the application expiration of this Lease, the Security Deposit or any part thereof (without interest and amounts properly withdrawn by Landlord and not refunded by Tenant) shall be refunded to Tenant within thirty (30) days after the expiration or sooner termination of this Lease (including without limitation permitted terminations hereunder and terminations due to Landlord’s default which continues beyond applicable grace and cure periods following notice where applicable); provided, however, that Tenant first shall have vacated the Leased Space and surrendered possession thereof to the Landlord by delivery of keys, in accordance with the Lease provisions and shall have returned the Leased Space to Landlord in the condition required hereunder. Nothing herein contained shall require Landlord to hold the sums so deposited as a trust fund, nor establish any relationship other than that of debtor and creditor with respect to said applicationfunds so deposited. If the application is on account of maintenanceLandlord shall assign or otherwise transfer its interest in this Lease, repairs or replacements necessitated by tenant, said notice Landlord shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore transfer the Security Deposit in full. Upon termination to the assignee or other transferee of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements such interest (including surrender of the Property in accordance with Paragraph 15like obligation to transfer to any subsequent assignee or other transferee), the and upon such transfer, Landlord shall be released and relieved from all liability and/or responsibility with respect to this Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for and/or the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termapplication thereof.

Security Deposit. Tenant has deposited with Landlord shall pay to Landlord, upon the execution of this Lease, the Security Deposit in the amount set forth in Article 1.13 above as security for the performance by Tenant of each its obligations under this Lease, which amount shall be returned to Tenant after the expiration or earlier termination of this Lease, provided that Tenant shall have fully performed all of its obligations contained in this Lease. The Security Deposit, at the election of Landlord, may be retained by Landlord as and every covenant and agreement to for its full damages or may be performed applied in reduction of any loss and/or damage sustained by Landlord by reason of the occurrence of any breach, nonperformance or default by Tenant under this Lease without the waiver of any other right or remedy available to Landlord at law, in equity or under the terms of this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or If any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application portion of the Security Deposit is so used or any part thereof applied, Tenant shall, within thirty (30five(5) days of said application. If the application is on account of maintenanceafter written notice from Landlord, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to deposit with Landlord immediately available funds in an amount sufficient to restore the Security Deposit in full. Upon termination to its original amount, and Tenant's failure to do so shall be a breach of this Lease. Tenant acknowledges and agrees that in the event Tenant shall file a voluntary petition pursuant to the Bankruptcy Code, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of or if an involuntary petition is filed against Tenant pursuant to the Property in accordance with Paragraph 15)Bankruptcy Code, then Landlord may apply the Security Deposit or any portion thereof remaining unapplied towards those obligations of Tenant to Landlord which accrued prior to the filing of such petition. Tenant acknowledges further that the Security Deposit may be commingled with Landlord's other funds and that Landlord shall be returned entitled to Tenant in accordance with applicable lawretain any interest earnings on the Security Deposit. In the event of a sale, lease, or other transfer termination of the BuildingLandlord's Interest in this Lease, Landlord may shall transfer or assign said the Security Deposit to Landlord's granteesuccessor in interest, lessee or assignee. Provided said grantee, lessee or assignee and Landlord shall be released from liability by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said such deposit or for an accounting of the Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.

Security Deposit. To the extent Landlord holds the Termination Fee pursuant to Section 2.3 above, or Tenant has deposited ever deposits with Landlord a cash security deposit (the “Security Deposit”) as security for the faithful performance by Tenant of all of its obligations under this Lease, the terms of this Article 22 shall apply. If Tenant defaults with respect to any provisions of this Lease beyond notice and cure periods, including, but not limited to, the provisions relating to the payment of Rent, the removal of property and the repair of resultant damage, Landlord may, without notice to Tenant, but shall not be required to apply all or any part of the Security Deposit for the payment of any Rent or any other sum in default and Tenant shall, upon demand therefor, restore the Security Deposit to its original amount. Any unapplied portion of the Security Deposit shall be returned to Tenant, or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder, within sixty (60) days following the expiration of the Lease Term. Tenant shall not be entitled to any interest on the Security Deposit. Tenant hereby irrevocably waives and relinquishes any and all rights, benefits, or protections, if any, Tenant now has, or in the amount set forth above for future may have, under Section 1950.7 of the performance California Civil Code, or any successor statute, and all other provisions of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the rightlaw, now or hereafter in effect, including, but not limited to, any provision of law only to the obligationextent the same (i) establishes the time frame by which a landlord must refund a security deposit under a lease, to apply the Security Deposit in whole or in part as payment of such amounts as are and/or (ii) provides that a landlord may claim from a security deposit only those sums reasonably necessary to remedy Tenant's defaults in the payment of rent rent, to repair damage caused by a tenant or in to clean the performance subject premises. Tenant acknowledges and agrees that (a) any statutory time frames for the return of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected a security deposit are superseded by the fact that express period identified in this Article 22, above, and (b) rather than be so limited, Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of may claim from the Security Deposit (1) any and all sums expressly identified in this Article 22, above, and (2) any additional sums reasonably necessary to compensate Landlord for any and all losses or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated damages caused by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination Tenant’s default of this Lease, full payment including, but not limited to, all damages or rent due upon termination of all amounts due and performance of all Tenant's covenants and agreements (including surrender Lease pursuant to Section 1951.2 of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termCalifornia Civil Code.

Security Deposit. Tenant has deposited Tenaxx xxxees to deposit with Landlord the Security Deposit in the amount set forth above at Section 2.0 upon execution of this Lease, as security for the Tenaxx'x xaithful performance of each and every covenant and agreement to be performed by Tenant its obligations under this Lease. Landlord shall have the right, but not the obligation, to apply and Tenant agree that the Security Deposit in whole may be commingled with funds of Landlord and Landlord shall have no obligation or in part as liability for payment of interest on such amounts as are reasonably necessary deposit. Tenant shall not mortgage, assign, transfer or encumber the Security Deposit without the prior written consent of Landlord and any attempt by Tenant to remedy Tenant's defaults in the payment of rent do so shall be void, without force or in the performance effect and shall not be binding upon Landlord. If Tenant fails to pay any Rent or other amount when due and payable under this Lease, or fails to perform any of the covenants terms hereof, Landlord may appropriate and apply or agreements contained herein. Landlord's right to possession use all or any portion of the Property Security Deposit for non-payment of rent Rent payments or any other reason shall not be affected by the fact that amount then due and unpaid, for payment of any amount for which Landlord holds security. has become obligated as a result of Tenant's liability is not limited default or breach, and for any loss or damage sustained by Landlord as a result of Tenant's default or breach, and Landlord may so apply or use this deposit without prejudice to the amount any other remedy Landlord may have by reason of Tenant's default or breach. If Landlord so uses any of the Security Deposit. Landlord shall give , Tenant written notice of the application of the Security Deposit or any part thereof shall, within thirty ten (3010) days of said application. If the application is on account of maintenanceafter written demand therefor, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit to the full amount originally deposited; Tenant's failure to do so shall constitute an act of default hereunder and Landlord shall have the right to exercise any remedy provided for at Article 27 hereof. Within fifteen (15) days after the Term (or any extension thereof) has expired or Tenant has vacated the Premises, whichever shall last occur, and provided Tenant is not then in full. Upon termination default on any of its obligations hereunder, Landlord shall return the Security Deposit to Tenant, or, if Tenant has assigned its interest under this Lease, full payment to the last assignee of all amounts due and performance of all Tenant's covenants and agreements (including surrender of . If Landlord sells its interest in the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the BuildingPremises, Landlord may transfer or assign said Security Deposit deliver this deposit to the purchaser of Landlord's grantee, lessee interest and thereupon be relieved of any further liability or assignee. Provided said grantee, lessee or assignee by written undertaking addressed obligation with respect to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.

Security Deposit. 5.1 Upon its execution of this Lease, Tenant has deposited shall deposit the sum of $150,000.00 in cash with the Landlord (the “Security Deposit”) which Security Deposit in shall secure the amount set forth above for the faithful performance of each and every covenant and agreement to be performed observance by Tenant under of the terms, covenants, conditions, agreements and provisions of this Lease. If Tenant is in an Event of Default, Landlord shall have may use, apply or retain the right, but not the obligation, to apply the Security Deposit in whole or in any part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit to the extent required for the payment of any Fixed Rent, Additional Rent or any part thereof other sum as to which Tenant is in default (beyond any applicable notice and cure period) or for any sum which Landlord may expend or may be required to expend by reason of Tenant’s default (beyond any applicable notice and cure period) in respect of any of the terms, covenants, conditions, agreements and provisions of this Lease, including, but not limited to, any damages or deficiency in the reletting of the Premises, whether such damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. In the event the Security Deposit is applied by Landlord, Tenant shall promptly restore the Security Deposit to its original amount. The Security Deposit (less any deductions permitted hereunder) shall be returned to Tenant, without interest, within a reasonable period (not to exceed thirty (30) days days) after the expiration of said application. If the application is on account this Lease and after delivery of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost entire possession of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay Premises to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable lawLandlord. In the event of a sale, lease, or other transfer sale of the Buildingland and the building of which the Premises form a part, Landlord may shall either (i) transfer or assign said the Security Deposit to Landlord's grantee, lessee Tenant and Landlord shall thereupon be released by Tenant from all liability for the return of such Security Deposit or assignee. Provided said grantee, lessee or assignee by written undertaking addressed (ii) transfer the Security Deposit to the new Landlord assumes all Landlord's obligations hereunder, in which case Tenant agrees to look to such grantee, lessee or assignee the new Landlord solely for the return of said Security Deposit. The provisions hereof Tenant further covenants that it will not assign or encumber or attempt to assign or encumber the monies deposited herein as the Security Deposit and that neither Landlord nor its successors or assigns shall apply to each and every salebe bound by any such assignment, lease encumbrance, attempted assignment or attempted encumbrance. In the event of any bankruptcy or other transfer of insolvency proceeding against Tenant, it is agreed that the Building. The Security Deposit held hereunder shall not be deemed or construed as advance payment of rent to be applied by Landlord to Rent and other charges due to Landlord for any the last month of the lease termLease Term and each preceding month until such Security Deposit is fully applied.

Security Deposit. Tenant has deposited shall, upon execution and delivery of this Lease, deposit with Landlord a cash security deposit in the amount of Two Hundred Thousand and 00/100 Dollars ($200,000.00) (the “Security Deposit”). Tenant shall have the option at any time to provide to Landlord, from a bank reasonably acceptable to Landlord, an irrevocable unconditional letter of credit in the form attached hereto as Exhibit “M” and incorporated herein by this reference or such other form as may be reasonably acceptable to Landlord. The letter of credit shall be in the amount of Two Hundred Thousand and 00/100 Dollars ($200,000.00) (the “Letter of Credit”) and shall thereafter constitute the “Security Deposit” for the full and faithful performance by Tenant of all of the terms, conditions and covenants contained in the Lease on the part of the Tenant to be performed, including but not limited to the payment of rent. In the event the Letter of Credit is delivered as a Security Deposit pursuant to this Article 4, then, upon receipt by Landlord of a Letter of Credit reasonably acceptable to Landlord, Landlord shall promptly return to Tenant the cash Security Deposit. From and after execution of this Lease, if Tenant is in default at any time during the Lease Term (after notice from Landlord and the expiration of any applicable grace, notice or cure periods), then Landlord may, but shall be under no obligation to, from time to time and without prejudice to any other right or remedies, draw upon such Security Deposit to the extent necessary to pay any such amount due Landlord under this Lease as a result of such uncured default, to cure any such breach or to compensate Landlord for its damages actually incurred by reason of such breach and for no other purpose. In the event that Landlord applies the Security Deposit or a portion thereof as provided in the amount set forth above for the performance this Section, Tenant shall immediately upon notice from Landlord of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply such application restore the Security Deposit in whole or in part as payment to its original amount, it being the intent of such amounts as are reasonably necessary the parties that the Security Deposit to remedy Tenant's defaults in be held by Landlord always be the amount stated herein. It is expressly understood and agreed, however, that the Security Deposit shall not be considered an advance payment of rent or a measure of Landlord’s damages in the performance event of a default by Tenant. Landlord shall also be entitled to draw upon the Security Deposit unless, no later than forty-five (45) days prior to the expiration of the covenants Letter of Credit, Tenant delivers to Landlord a renewal or agreements contained hereinreplacement thereof. If such Letter of Credit has not been renewed at least forty-five (45) days prior to the expiration date thereof and Tenant has not caused such renewal or replacement to occur within five (5) business days after the date of Landlord's right ’s notice to possession Tenant, Landlord may immediately draw upon such Letter of Credit and hold the cash proceeds thereof in lieu of such Letter of Credit. Such Letter of Credit shall contain reasonable provisions for automatic renewal on an annual basis and except as otherwise set forth in subparagraph (iv) below, shall not expire less than ninety (90) days after the expiration or earlier termination of this Lease. All sums held by Landlord pursuant to this Article 4 shall be without interest. Any notices delivered with respect to the Letter of Credit shall comply with the notice provisions set forth in Section 16.07 of this Lease and shall include the following parties: General Counsel Chief Financial Officer Duke Realty Corporation Duke Realty Corporation 0000 Xxxxxxxxxxx Xx., Ste. 300 000 Xxxx 00xx Xxxxxx, Xxx. 000 Xxxxxx, XX 00000-0000 Xxxxxxxxxxxx, XX 00000 Notwithstanding anything herein to the contrary, at the times set forth below, upon written request from Tenant, and provided that (i) Tenant is not then and has not been for the twelve (12) month period immediately preceeding such request in default under this Lease, and all amounts due and owing are current and were paid timely under the Lease for the twelve (12) month period immediately preceeding such request, (ii) Landlord has not drawn on all or any portion of the Property for non-payment Security Deposit prior to such date, and (iii) Tenant provides Landlord with a copy of rent or any other reason shall not be affected its most recent financial statement and a certification by the fact Tenant’s chief financial officer that Landlord holds security. Tenant's liability ’s tangible net worth on such date is not limited to materially less than Tenant’s tangible net worth as reflected on Tenant’s financial statements dated June 30,2002 (together, the “Conditions”), the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated held by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for be reduced over the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed Lease Term as advance payment of rent for any month of the lease term.follows:

Security Deposit. Concurrently with Tenant’s execution of this Lease, Tenant has deposited shall deposit with Landlord the sum of THREE THOSAND TWO HUNDRED AND 00/100 DOLLARS ($3,200.00) (the “Security Deposit”). The Security Deposit in the amount set forth above shall be held by Landlord as security for the faithful performance by Tenant of each all of the terms, covenants and every covenant and agreement conditions of this Lease to be performed by Tenant under during the term hereof. If Tenant defaults with respect to any provision of this Lease. Landlord shall have , including the right, but not the obligation, provisions relating to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason Rent, Landlord may (but shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application required to) use, apply or retain all or any part of the Security Deposit to cure such default or to compensate Landlord for any part thereof other loss or damage which Landlord may suffer by reason of Tenant’s default. If any portion of said deposit is so used or applied, Tenant shall, within thirty ten (3010) days of said application. If the application is on account of maintenanceafter written demand therefor, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to deposit cash with Landlord in an amount sufficient to restore the Security Deposit in full. Upon termination to its original amount; Tenant’s failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep the Security Deposit separate from its general funds, full payment and Tenant shall not be entitled to interest on such deposit. If Tenant shall fully and faithfully perform every provision of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15)this Lease to be performed by it, the Security Deposit or any portion balance thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In (or, at Landlord’s option, to the event last assignee of a sale, lease, or other transfer Tenant’s interest hereunder) upon the expiration of the BuildingLease term and Tenant’s vacating the Premises; provided, however, that Landlord may transfer or assign said elect in its reasonable discretion to retain a portion of the Security Deposit in an amount composed of any or all of the following: (i) any unpaid amounts owed to Landlord's grantee, lessee (ii) the cost of any damage (excluding normal wear and tear or assignee. Provided said granteedamage resulting from the approved installation of wall hangings by Landlord) to the Premises, lessee and (iii) the costs of removing any personal property refuse or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for debris left in the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer Premises at the expiration of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termLease.

Security Deposit. Tenant has deposited with Landlord the Security Deposit in the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination execution of this Lease, full payment Tenant shall provide the following amount to Landlord, to be held as a security deposit for the reasonable cleaning or repair of damages to the Property upon the expiration or termination of this lease or in case of default by Tenant: $ ( dollars). The security deposit shall not exceed one month's rent for tenancies lasting a year or more and for unfurnished apartments. For month-to-month tenancies or rentals of furnished units, there shall be no limit on the security deposit Landlord may collect. The security deposit will be held at the following financial institution: Tenant hereby agrees to be liable to Landlord at the expiration or termination of this Lease for all amounts damages to the Property, except ordinary wear and tear. Landlord may hold the security deposit in a non-interest-bearing account. In such case, no interest is due to Tenant and performance Tenant may not use the security deposit to cover Rent. Landlord may otherwise elect to hold security deposit in an interest-bearing account and allow Tenant to receive certain interest funds, if applicable. Tenant shall still not be permitted to use the security deposit to cover any Rent. In case of all sale or assignation of the Lease by Landlord, Tenant's covenants security deposit shall be transferred to the new owner or assignee and agreements (including surrender Landlord shall be released from liability to Tenant for return of the Property in accordance security deposit. Deductions from the security deposit may be made for the following reasons (this list constitutes examples only and is not intended to be exhaustive): unpaid rent or utilities, late fees, cleaning, key replacement, removing abandoned property, and/or attorneys' fees for proceedings against Tenant. Landlord shall return Tenant's security deposit or provide an itemized list of deductions along with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer remainder of the Buildingsecurity deposit, if applicable, within 20 (twenty) days after Tenant has surrendered the Property. If Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunderrequires deductions which exceed the security deposit, Tenant agrees to look pay Landlord any overage amount within ten days after receiving a written demand from Landlord. Landlord will first apply the security deposit to any non-rent obligations, such granteeas damages, lessee utilities, or assignee solely for late fees, and will then apply the return of said Security Deposit. The provisions hereof shall apply security deposit to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termunpaid rent.

Security Deposit. Tenant has deposited shall deposit with Landlord upon signing this Lease and, throughout the Term shall keep on deposit with Landlord, the Security Deposit in the amount Amount set forth above in Article 1 as security for the payment by Tenant of the Rent and for the faithful performance of each all the terms, conditions and every covenant and agreement to be performed by Tenant under covenants of this LeaseLease (the “Security Deposit”). Landlord shall have the right, but not the obligation, be obligated to apply keep the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in a separate fund, but may commingle the payment of rent or Security Deposit with Landlord’s own funds. If at any time during the Term Tenant shall default in the performance of the covenants or agreements contained herein. Landlord's right to possession any provisions of the Property for non-payment of rent or any other reason this Lease beyond applicable notice and cure periods, Landlord may, but shall not be affected required to, use the Security Deposit, or so much thereof as necessary, in payment of any Rent in default, or in reimbursement of any expense incurred by Landlord or in payment of the fact that damages incurred by Landlord holds securityby reason of Tenant’s default. Tenant's In such event, Tenant shall, upon written demand from Landlord, promptly remit to Landlord a sufficient amount in cash to restore the Security Deposit to equal the Security Deposit Amount. Within 30 days after the expiration of this Lease and surrender of the Demised Premises in accordance with the terms and conditions of this Lease, the Security Deposit, or as much thereof as has not been utilized for such purposes, shall be refunded to Tenant without interest. Landlord may deliver the Security Deposit to the purchaser of Landlord’s interest in the Demised Premises in the event such interest is sold, and, in such instance, Landlord named herein shall be discharged from any further liability is not limited with respect to the Security Deposit and Tenant shall look to Landlord’s successor for the return of the Security Deposit. Notwithstanding the above provisions of this Section 3.4, if any claims of Landlord exceed the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore remain liable for the balance of such claims. Tenant may maintain the Security Deposit in full. Upon termination the form of this Leasea letter of credit so long as (i) the form and terms of said letter of credit and the issuing bank thereunder shall each be reasonably satisfactory to Landlord, full payment and (ii) the letter of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied credit shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit fully transferable without cost to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.

Security Deposit. Tenant has deposited with Landlord Notwithstanding any other provision of this Lease Agreement, the Security Deposit in the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in Lessee may on any date secure the payment of rent or Lease Payments by a deposit of (i) an amount of cash that, as required by the Trust Agreement, together with amounts on deposit in the performance of Lease Payment Fund and the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability Insurance and Condemnation Fund, is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore pay all unpaid Lease Payments and Additional Rent, including the Security Deposit in full. Upon termination of this Leaseprincipal and interest components thereof, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15)the Lease Payment Schedule set forth in Exhibit A hereto, or (ii) Defeasance Obligations, together with cash, if required, in such amount as will, in the Security Deposit opinion of an independent certified public accountant pursuant to the terms of the Trust Agreement, together with interest to accrue thereon but without reinvestment thereof and, if required, all or any a portion thereof remaining unapplied of moneys or Defeasance Obligations then on deposit in the Lease Payment Fund and the Insurance and Condemnation Fund, be fully sufficient to pay all unpaid Lease Payments and Additional Rent on their respective Lease Payment Dates, as the Lessee shall be returned to Tenant in accordance with applicable lawinstruct at the time of said deposit. In the event of a saledeposit pursuant to this Section and upon the defeasance of all the Certificates pursuant to Section 14.1 of the Trust Agreement, leaseall obligations of the Lessee pursuant to this Lease Agreement (except those that survive termination of this Lease Agreement), and all security provided by this Lease Agreement for said obligations, shall cease and terminate, excepting only the obligations of the Lessee to make, or other transfer cause to be made, Lease Payments and Additional Rent from the deposit made by the Lessee pursuant to this Section, and title to the Leased Property shall vest in the Lessee on the date of said deposit automatically and without further action by the Building, Landlord may transfer Lessee or assign said Security Deposit the Lessor. Said deposit shall be deemed to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely be and shall constitute a special fund for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month Lease Payments and Additional Rent in accordance with the provisions of the lease termthis Lease Agreement.

Security Deposit. Concurrently with the execution of this Lease, Tenant has deposited shall deposit with Landlord the Security Deposit amount specified in the amount set forth above Basic Lease Information as the Security Deposit, if any (the “Security Deposit”), as security for the performance of each and every covenant and agreement to be performed by Tenant Tenant’s obligations under this Lease. Landlord may (but shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30no obligation to) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), use the Security Deposit or any portion thereof remaining unapplied shall be returned to cure any breach or default by Tenant in accordance with applicable lawunder this Lease, to fulfill any of Tenant’s obligations under this Lease, or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of Tenant’s obligations hereunder. In such event Tenant shall pay to Landlord on demand an amount sufficient to replenish the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to its original amount. Subject in all cases to Landlord's grantee’s rights to apply the Security Deposit as provided in this Article 4, lessee upon the expiration or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer termination of the Building. The Term, Landlord shall return to Tenant the portion of the Security Deposit then held by Landlord minus (A) any amount applied by Landlord as provided above and not replenished by Tenant and (B) any amount to be applied by Landlord as provided below. Landlord may commingle the Security Deposit with Landlord’s general and other funds. Landlord shall not be deemed required to pay interest on the Security Deposit to Tenant. Tenant hereby waives (i) California Civil Code Section 1950.7, as amended or construed recodified from time to time, and any and all other laws, rules and regulations, now or hereafter in force, applicable to security deposits in the commercial context (“Security Deposit Laws”), and (ii) any and all rights, duties and obligations either party may now or, in the future, will have relating to or arising from the Security Deposit Laws. Notwithstanding anything to the contrary contained herein, the Security Deposit may be retained and applied by Landlord (a) to offset all Rent (as advance payment defined in Section 3.3) which is unpaid either before or after the termination of rent for this Lease, and (b) against other damages suffered by Landlord before or after the termination of this Lease, whether foreseeable or unforeseeable, caused by the act or omission of Tenant or any month officer, employee, agent or invitee of the lease term.Tenant. TENANT HEREBY WAIVES THE PROVISIONS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, AND ALL OTHER SECURITY DEPOSIT LAWS, NOW OR HEREAFTER IN FORCE, WHICH PROVIDE THAT LANDLORD MAY CLAIM FROM A SECURITY DEPOSIT ONLY THOSE SUMS REASONABLY NECESSARY TO REMEDY DEFAULTS IN THE PAYMENT OF RENT, TO REPAIR DAMAGE CAUSED BY TENANT OR TO CLEAN THE PREMISES, IT BEING AGREED THAT LANDLORD MAY, IN ADDITION, CLAIM THOSE SUMS REASONABLY NECESSARY TO COMPENSATE LANDLORD FOR ANY OTHER LOSS OR DAMAGE, FORESEEABLE OR UNFORESEEABLE, CAUSED BY THE ACTS OR OMISSIONS OF TENANT OR ANY OFFICER, EMPLOYEE, AGENT, CONTRACTOR OR INVITEE OF TENANT. Tenant’s Initials:

Security Deposit. The Landlord acknowledges receipt on or before the Commencement Date of the amount set out in Item 6(a) of the Term Sheet (the "Security Deposit") to be held by the Landlord,without any liability whatsoever on the part of the Landlord for the payment of interest thereon, as a security deposit for the faithful performance by the Tenant has deposited with Landlord of the terms, covenants and conditions of this Lease during the Term hereof and not to be applied on account of Rent except as otherwise provided in this Section 4.02. The Security Deposit will not be a limitation on the Landlord's damages or other rights and remedies available under this Lease or at law or equity, nor shall the Security Deposit in the amount set forth above for the performance be either a payment of each and every covenant and agreement to be performed by Tenant under this Leaseliquidated damages or an advance payment of Rent. The Landlord shall have the right, but not the obligation, no fiduciary responsibilities or trust obligations whatsoever with regard to apply the Security Deposit in whole and shall not assume the duties of a trustee for the Security Deposit. The Security Deposit shall not be mortgaged, assigned or in part as payment encumbered by the Tenant and the Landlord shall not be bound by any such mortgage, assignment or encumbrance. It is understood and agreed between the parties that any portion of such amounts as are reasonably necessary to remedy Tenantthe Security Deposit may, at the Landlord's defaults in option, be applied toward the payment of rent overdue or in unpaid Rent and may also be applied as compensation to the performance Landlord for any loss or damage sustained with respect to the breach on the part of the Tenant of any terms, covenants or agreements contained herein. Landlord's right to possession and conditions of this Lease, provided in all cases, however, that the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability hereupder is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of If during the application Term any portion of the Security Deposit or any part thereof within thirty (30) days of said application. If is so applied, then the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay on written demand deliver to the Landlord an a sufficient amount sufficient iflEash or by certified cheque to restore the Security Deposit in fullto the original sum deposited. Upon termination The Landlord shall refund to the Tenant after the expiry date of this Lease any portion of the Security Deposit not used by the Landlord after application by the Landlord to any damage incurred by the Landlord by reason of the default of the Tenant under the terms of this Lease, full payment of . It is further provided that the Landlord will be discharged from all amounts due and performance of all Tenant's covenants and agreements (including surrender of liability to the Property in accordance Tenant with Paragraph 15), respect to the Security Deposit or to the extent that it is transferred to any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer purchaser of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for interest in the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termLeased Premises.

Security Deposit. Tenant has deposited shall deposit with Landlord or Landlord's Agent simultaneously with the Security Deposit in execution of this Lease, the amount set forth above for the performance of each and every covenant and agreement to be performed by stipulated in Section 1.6 as a security deposit. Provided Tenant under this Lease. Landlord shall have the right, but is not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults default in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent Base Annual Rent, Additional Rent or any other reason charges due Landlord, and further provided the Demised Premises are left in good condition, reasonable wear and tear excepted, as described in Section 6.10, said deposit (which shall not be affected by the fact that Landlord holds security. bear interest to Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant within sixty (60) days after the termination of this Lease. Notwithstanding the foregoing, the full or partial return by Landlord to Tenant of the security deposit shall at no time be deemed to constitute a waiver by Landlord of any of Tenant's obligations under this Lease, nor an acknowledgment by Landlord that any such obligations are limited to the amount, if any, of the security deposit retained by Landlord. If Tenant is in accordance default or is otherwise indebted to Landlord hereunder or if the Demised Premises are not left in good condition, or if Tenant has failed or refused to remove Tenant's Property after Landlord's request to do so, then the security deposit shall be applied to the extent available on account of sums due Landlord or the cost of repairing damages to the Demised Premises or to remove Tenant's Property. In the event the funds deposited with applicable lawLandlord as security are applied during the Lease Term on account of sums due Landlord or to the cost of repairing damages or removing Tenant's Property, then Tenant shall, within fifteen (15) days after demand by Landlord, deposit with the Landlord additional funds to restore the security deposit to its original amount. In the event of a sale, lease, the sale or other transfer of Landlord's interest in the Building, Landlord may shall have the right to transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look the security deposit to such granteepurchaser or transferee, lessee or assignee solely in which event Tenant shall look only to the new landlord for the return of said Security Deposit. The provisions hereof the security deposit and Landlord shall apply thereupon be released from all liability to each and every sale, lease or other transfer Tenant for the return of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termsuch security deposit.

Security Deposit. Tenant has deposited Within ten (10) business days after the parties’ execution of this Sublease and receipt of Master Landlord’s consent hereto, Subtenant shall deposit with Landlord Sublandlord upon Subtenant’s execution hereof ($175,000.00) one hundred seventy five thousand dollars (“Security Deposit”) as security for Subtenant’s faithful performance of Subtenant’s obligations hereunder. If Subtenant fails to pay Rent or other charges due hereunder, or otherwise defaults with respect to any provision of this Sublease, in either case beyond applicable notice and cure periods, Sublandlord may use, apply or retain all or any portion of the Security Deposit in the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent Rent or any other charge in default or for the payment of any other sum to which Sublandlord may become obligated by reason shall not be affected by the fact that Landlord holds securityof Subtenant’s default, or to compensate Sublandlord for any loss or damage which Sublandlord may suffer thereby. Tenant's liability is not limited to the amount If Sublandlord so uses or applies all or any portion of the Security Deposit. Landlord , Subtenant shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty ten (3010) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord after written demand therefor deposit cash with Sublandlord in an amount sufficient to restore the Security Deposit in full. Upon termination to its full amount, and Subtenant’s failure to do so shall be a material breach of this Lease, full payment Sublease. Sublandlord shall not be required to keep the Security Deposit separate from its general accounts and the Security Deposit shall not bear interest. At the expiration of all amounts due the Term hereof and following performance of all Tenant's covenants and agreements of Subtenant’s obligations hereunder (including surrender including, without limitation, vacation of the Property Premises in accordance with Paragraph 15the provisions hereof), the Security Deposit Deposit, or any portion so much thereof remaining unapplied as has not theretofore been applied by Sublandlord, shall be returned to Tenant in accordance with applicable law. In the event returned, without payment of a sale, lease, interest or other transfer incurment for its use to Subtenant (or at Sublandlord’s option, to the last assignee, if any, of Subtenant’s interest hereunder). No trust relationship is created herein between Sublandlord and Subtenant with respect to the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof Any deposit under the Master Lease which may be returned by the Master Landlord shall apply to each and every sale, lease or other transfer be the property of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termSublandlord.

Security Deposit. Tenant has deposited with Landlord the The Security Deposit specified in the amount set forth above paragraph 1.14 shall be held by Landlord as security for the full and faithful performance by Tenant of each and every term, covenant and agreement condition of this Lease on the part of Tenant to be performed by Tenant under this Lease. observed and performed, and Landlord shall have no liability to pay interest thereon unless required by law. If any rent or Additional Rent herein reserved or any other sums payable by Tenant hereunder shall be overdue and unpaid or should Landlord make payments on behalf of Tenant, or should Tenant fail to perform any of the rightterms of this Lease, but not the obligationthen Landlord may, at its option, and without prejudice to any other remedy which Landlord may have on account thereof, apply the Security Deposit in whole or in part so much thereof as payment of such amounts as are reasonably may be necessary to remedy Tenant's defaults in compensate Landlord toward the payment of rent the rents or other sums due from Tenant, or towards any loss, damage or expense sustained by Landlord resulting from such default on the part of Tenant; and in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason such event Tenant shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of forthwith upon demand restore the Security Deposit or any part thereof to its original amount, and the sum required to so restore the Security Deposit shall be Additional Rent hereunder. In the event Tenant shall have fully and faithfully complied with all of the terms, covenants and conditions of this Lease, the Security Deposit shall be returned in full to Tenant within thirty (30) days of said application. If following the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost end of the same, attaching estimates Term or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon earlier termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a salethat any bankruptcy, leaseinsolvency, reorganization or other transfer of the Buildingcreditor/debtor proceedings shall be instituted by or against Tenant or its successors or assigns, Landlord may transfer or assign said apply the Security Deposit first to the payment of any rent, Additional Rent, and other amounts due Landlord hereunder, and the balance, if any, of the Security Deposit may be retained by Landlord in partial Liquidation of Landlord's damages. Landlord may deliver the Security Deposit to the purchaser of Landlord's granteeinterest in the Premises, lessee or assignee. Provided said granteein the event that such interest is sold, lessee or assignee by written undertaking addressed and Landlord shall thereupon be discharged from any further liability with respect to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.

Security Deposit. Concurrently with Tenant's execution of this Lease, Tenant has deposited shall deposit with Landlord the sum of Two Thousand Seven hundred Thirty-Eight Dollars ($2,738.00) (hereinafter the "Security Deposit"). The Security Deposit in the amount set forth above shall be held by Landlord for the faithful performance by Tenant of each all of the terms, covenants, and every covenant and agreement conditions of this Lease to be kept and performed by Tenant under during the term of this Lease. Landlord shall have the rightIf Tenant defaults with respect to any provision of this Lease, including but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount provisions relating to the payment of Monthly Base Rent, and any costs, expenses, and charges payable under the Security Deposit. provisions of this Lease, Landlord may, but shall give Tenant written notice of the application not be obligated to use, apply or retain all or a part of the Security Deposit for the payment of any amount which Landlord may spend by reason of Tenant's default or to compensate Landlord for any part thereof other loss or damage which Landlord may suffer by reason of Tenant's default. If any portion of the Security Deposit is so used or applied, Tenant shall, within thirty ten (3010) days of said application. If the application is on account of maintenanceafter written demand, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to deposit with Landlord an amount sufficient to restore the Security Deposit in full. Upon termination to its original amount; and Tenant's failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep the Security Deposit separate from Landlord's general funds, full payment and Tenant shall not be entitled to interest on the Security Deposit. If Tenant shall fully and faithfully perform every provision of all amounts due and performance of all this Lease to be performed by Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion balance thereof remaining unapplied shall be returned to Tenant in accordance with applicable lawor, at Landlord's option, to the last permitted assignee of Tenant's interest under this Lease within thirty (30) days of the expiration of the term of this Lease and after Tenant or Tenant's permitted assignee has vacated the Premises or within fifteen (15) days of receipt of Tenant's new mailing address, whichever is later. In the event of a sale, lease, or other transfer termination of the BuildingLandlord's interest in this Lease, Landlord may shall transfer or assign said the Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, successor in interest whereupon Tenant agrees to look to such grantee, lessee or assignee solely release Landlord from liability for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termaccounting therefore.

Security Deposit. On or before the Execution Date of this Lease, Tenant has deposited shall deposit the sum in cash set forth in Section 2.2 (the "Security Deposit"), which sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with Landlord other funds of Landlord. Upon distribution of any portion of the Holdback Escrow Amount to any party in accordance with the terms of the Holdback Escrow Agreement, the Security Deposit shall increase by [***] Dollars for every [***] Dollars ($[***]) of Holdback Escrow Amount so released. For illustration purposes only, if the full [***] Dollars ($[***]) of the Holdback Escrow Amount is disbursed in accordance with the amount set forth above Holdback Escrow Agreement, then the Security Deposit shall increase by [***] Dollars ($[***]). If Tenant defaults with respect to any provision of this Lease, then without notice to Tenant, Landlord may (but shall not be required to) apply all or any part of the Security Deposit for the performance payment of each any Rent or any other sum in default. If any portion of the Security Deposit is so used or applied, then Tenant shall, upon demand therefor, restore the Security Deposit to its original amount. If Tenant shall fully and faithfully perform every covenant and agreement provision of this Lease to be performed by Tenant under this Lease. Landlord shall have it, then the right, but not the obligation, to apply unapplied portion of the Security Deposit in whole shall be returned to Tenant, or, at Landlord's option, to the last assignee of Tenant's interest hereunder, within sixty (60) days following the expiration of the Term. Tenant shall not be entitled to any interest on the Security Deposit. Tenant hereby irrevocably waives and relinquishes any and all rights, benefits, or protections, if any, Tenant now has, or in part as payment the future may have under any provision of such amounts as are law which (i) establishes the time frame by which a landlord must refund a security deposit under a lease, or (ii) provides that a landlord may claim from a security deposit only those sums reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right rent, to possession of the Property for non-payment of rent or any other reason shall not be affected repair damage caused by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by a tenant, said notice shall include or to clean the estimated or actual cost of the same, attaching estimates or paid receiptssubject premises. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due acknowledges and performance of all Tenant's covenants and agreements agrees that (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or A) any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely statutory time frames for the return of said Security Deposit. The provisions hereof shall apply to each a security deposit are superseded by the express period identified in this Section 6.4, and every sale(B) rather than be so limited, lease or other transfer of Landlord may claim from the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for (i) any month of the lease term.and all sums expressly identified in this Section 6.4, and (ii) any additional

Security Deposit. Upon execution of this Lease, Tenant has deposited with Landlord shall provide the Security Deposit in the following amount set forth above to Landlord, to be held as a security deposit for the performance reasonable cleaning or repair of each damages to the Property upon the expiration or termination of this lease or in case of default by Tenant: $________ (________ dollars). The security deposit shall not exceed two times the monthly rent if the Tenant is under 62 years of age and every covenant and agreement shall not exceed one month's rent if the Tenant is 62 years of age or older. The security deposit will be held at the following financial institution: ________________________________ Tenant hereby agrees to be performed liable to Landlord at the expiration or termination of this Lease for all damages to the Property, except ordinary wear and tear. Landlord may hold the security deposit in a non-interest-bearing account. In such case, no interest is due to Tenant and Tenant may not use the security deposit to cover Rent. Landlord may otherwise elect to hold security deposit in an interest-bearing account and allow Tenant to receive certain interest funds, if applicable. Tenant shall still not be permitted to use the security deposit to cover any Rent. In case of sale or assignation of the Lease by Landlord, Tenant's security deposit shall be transferred to the new owner or assignee and Landlord shall be released from liability to Tenant under for return of the security deposit. Deductions from the security deposit may be made for the following reasons (this Leaselist constitutes examples only and is not intended to be exhaustive): unpaid rent or utilities, late fees, cleaning, key replacement, removing abandoned property, and/or attorneys' fees for proceedings against Tenant. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty 30 (30thirty) days in which to return the security deposit and/or an itemized list of said applicationdeductions, if applicable. If Landlord requires deductions which exceed the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereundersecurity deposit, Tenant agrees to look pay Landlord any overage amount within ten days after receiving a written demand from Landlord. Landlord will first apply the security deposit to any non-rent obligations, such granteeas damages, lessee utilities, or assignee solely for late fees, and will then apply the return of said Security Deposit. The provisions hereof shall apply security deposit to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termunpaid rent.

Security Deposit. Concurrently with Tenant's execution of this Lease, Tenant has deposited with Landlord the sum of Seven Hundred Forty Thousand Four Hundred Thirty and No/100 Dollars ($740,430.00) ("Security Deposit in the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant under this Lease"Deposit"). Landlord shall have not be deemed a trustee of the rightSecurity Deposit, but not the obligation, to apply may use the Security Deposit in whole or in part as business, and shall not be required to segregate it from its general accounts. Tenant shall not be entitled to interest on the Security Deposit. If Tenant defaults with respect to any provisions of the Lease, including but not limited to the provisions relating to payment of such amounts as are Base Monthly Rent or other charges, Landlord may, to the extent reasonably necessary to remedy Tenant's defaults in the payment of rent default, use any or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application all of the Security Deposit towards payment of the following: (i) Base Monthly Rent or other charges in default; (ii) any part thereof other amount which Landlord may spend or become obligated to spend by reason of Tenant's default including, but not limited to Tenant's failure to restore or clean the Premises following vacation thereof. If any portion of the Security Deposit is so used or applied, Tenant shall, within thirty ten (3010) days of said application. If the application is on account of maintenanceafter written demand from Landlord, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its full original amount, and shall pay to Landlord such other sums as necessary to reimburse Landlord for any sums paid by Landlord. If Tenant shall be in full. Upon termination of this Leaseeither monetary default or material non- monetary default more than four (4) times in any twelve (12) month period, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), then the Security Deposit shall, within ten (10) days after demand by Landlord, be increased by Tenant to an amount equal to three (3) times the Base Monthly Rent. Tenant may not assign or any portion thereof remaining unapplied encumber the Security Deposit without the consent of Landlord. Any attempt to do so shall be void and shall not be binding on Landlord. The Security Deposit shall be returned to Tenant within thirty (30) days after the Expiration Date and surrender of the Premises to Landlord, less any amount deducted in accordance with applicable lawthis Section, together with Landlord's written notice itemizing the amounts and purposes for such deduction. In the event of a sale, lease, or other transfer termination of the BuildingLandlord's interest in this Lease, Landlord may transfer deliver or assign said credit the Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed successor in interest in the Premises and thereupon be relieved of further responsibility with respect to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof Landlord agrees that in lieu of a cash Security Deposit, Tenant may deposit a letter of credit ("Letter of Credit") substantially in the form attached hereto as Exhibit "B". Landlord shall apply be entitled to each and every sale, lease or other transfer draw against the Letter of Credit ----------- at any time provided only that Landlord certifies to the issuer of the BuildingLetter of Credit that Tenant is in default under the Lease. The Tenant shall keep the letter of credit in effect during the entire Lease Term, as the same may be extended, plus a period of four (4) weeks after expiration of the Lease Term. At least thirty (30) days prior to expiration of any Letter of Credit, the term thereof shall be renewed or extended for a period of at least one (1) year. Tenant's failure to so renew or extend the Letter of Credit shall be a material default of this Lease by Tenant. In the event Landlord draws against the Letter of Credit, Tenant shall replenish the existing Letter of Credit or cause a new Letter of Credit to be issued such that the aggregate amount of letters of credit available to Landlord at all times during the Lease Term is the amount of the Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termoriginally required.

Security Deposit. Concurrently with Tenant’s execution of this Lease, Tenant has deposited shall deposit with Landlord, or secure at its option by a Letter of Credit (defined below, the sum of One Hundred Twenty Thousand and 00/100 ($120,000.00) Dollars. If the deposit begins as a cash deposit, Tenant may subsequently change it to a Letter of Credit. If Tenant elects to use a Letter of Credit, then Landlord shall return any cash deposit to Tenant within five (5) business days of the delivery of the Letter of Credit to Landlord. Said sum or Letter of Credit shall be held by Landlord as a Security Deposit for the faithful performance by Tenant of all the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the term hereof. If Tenant defaults with respect to any provisions of this Lease, including, but not limited to, the provisions relating to the payment of rent and any of the monetary sums due herewith, Landlord may (but shall not be required to ) use, apply or retain all or any part of this Security Deposit for the payment of any other amount which Landlord may spend by reason of Tenant’s default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant’s default. If any portion of said Deposit is so used or applied, Tenant shall, within ten (10) days after written demand therefor, deposit cash with Landlord in the amount sufficient to restore the Security Deposit in the amount set forth above for the performance to its original amount. Tenant’s failure to do so shall be a material breach of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, be required to apply the keep this Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason separate from its general funds, and Tenant shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited entitled to the amount of the Security interest on such Deposit. Landlord shall give If Tenant written notice fully and faithfully performs every provision of the application of this Lease to be performed by it, the Security Deposit or any part balance thereof shall be returned to Tenant (or at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost expiration of the same, attaching estimates or paid receipts. Upon receipt of said notice, Lease term and after Tenant shall at once pay to Landlord an amount sufficient to restore has vacated the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable lawPremises. In the event of a sale, lease, or other transfer termination of the BuildingLandlord’s interest in this Lease, Landlord may shall transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, ’s successor in interest whereupon Tenant agrees to look to such grantee, lessee or assignee solely release Landlord from liability for the return of said Security Depositsuch Deposit or the accounting therefor. If Tenant chooses to use a letter of credit, then Tenant shall provide to Landlord an unconditional, clean, irrevocable Letter of Credit (“Letter of Credit”) in the amount specified above in favor of Landlord and issued by a bank (which accepts deposits, maintains accounts and will negotiate a letter of credit, and whose deposits are insured by the FDIC) located in the Bay Area and reasonably acceptable to Landlord (“Issuer”). The provisions hereof Letter of Credit shall apply (1) be fully transferable by Landlord without payment of transfer fees, (2) permit multiple drawings, and (3) provide that draws, including partial draws, at Landlord’s election, will be honored upon the delivery to each and every salethe Issuer a certificate signed by Landlord, lease or other transfer its authorized agent, that Landlord is entitled to make the requested draw pursuant to the terms of the BuildingLease. The Security Deposit Letter of Credit is to be issued pursuant to ISP98 rather than UCP 500. If Tenant fails to pay Basic Rent or any other sums as and when due hereunder, or otherwise defaults with respect to any provision of this Lease, Landlord may (but shall not be deemed obligated to) use, apply or construed as advance retain all or any portion of the Letter of Credit for payment of rent any sum for which Tenant is obligated or which will compensate Landlord for any month loss or damage which Landlord may suffer thereby. Any draw or partial draw of the lease termLetter of Credit shall not constitute a waiver by Landlord of its right to enforce its other remedies hereunder, at law or in equity. If any portion of the Letter of Credit is drawn upon, Tenant shall, within ten (10) days after delivery of written demand from Landlord, restore said Letter of Credit to its original amount. The Letter of Credit shall be in effect for the entire Term plus thirty (30) days beyond the expiration of the Term. The parties agree that the provisions of Civil Code Sections 1950.7 and 1951.7 do not apply to the Letter of Credit or any proceeds from the Letter of Credit.

Security Deposit. Tenant has deposited shall deposit with Landlord the Security Deposit in the amount set forth above Deposit, as security for the prompt, full and faithful performance by Tenant of each and every covenant provision of this Lease and agreement to of all obligations of Tenant hereunder. The Security Deposit shall be performed by Tenant under this Leasein the form of cash. If an Event of Default occurs, Landlord shall have may use, apply or retain the right, but not the obligation, to apply whole or any part of the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in for the payment of rent (i) any Base Rent or Additional Rent which Tenant shall not have paid or which may become due after the occurrence of such Event of Default, (ii) any sum expended by Landlord on Tenant's behalf in accordance with the provisions of this Lease or (iii) any other sum which Landlord may expend or be required to expend by reason of Tenant's default, including damages or deficiency in the performance reletting of the covenants Premises. The use, application or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount retention of the Security Deposit. , or any portion thereof, by Landlord shall give Tenant written notice of the application not prevent Landlord from exercising any other right or remedy provided by this Lease or by law and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. If any portion of the Security Deposit is used, applied or any part thereof retained by Landlord for the purposes set forth above, Tenant agrees, within thirty fifteen (3015) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to deposit cash with Landlord in an amount sufficient to restore the Security Deposit in fullto the amount held by Landlord prior to Landlord's exercising any of its rights to use or apply the Security Deposit hereunder. Upon termination If Tenant shall fully and faithfully comply with all of the provisions of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit Deposit, or any portion thereof remaining unapplied balance thereof, shall be returned to Tenant within Thirty (30) days after the expiration of the Term, with interest accruing at three percent (3%) per annum. In the absence of evidence satisfactory to Landlord of any permitted assignment of the right to receive the Security Deposit, or the remaining balance thereof, Landlord may return the same to Tenant, regardless of one or more assignments of Tenant's interest in accordance with applicable lawthis Lease or the Security Deposit. In such event, upon the return of the Security Deposit (or balance thereof) to Tenant, Landlord shall be completely relieved of liability under this Article. In the event of a sale, lease, or other transfer of Landlord's interest in the BuildingPremises, Landlord may shall transfer or assign said the Security Deposit to the transferee thereof. In such event, upon the delivery by Landlord to the transferee of Landlord's granteeinterest of the Security Deposit, lessee Landlord shall be deemed to have been released by Tenant from all liability or assignee. Provided said granteeobligation for the return of such Security Deposit, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, and Tenant agrees to look solely to such grantee, lessee or assignee solely transferee for the return of said the Security Deposit. The Deposit and the transferee shall be bound by all provisions hereof shall apply of this Lease relating to each and every sale, lease or other transfer the return of the BuildingSecurity Deposit provided however that Landlord's lender is not responsible for the Security Deposit unless actually received by Landlord's lender or its affiliate. The Security Deposit shall not be deemed mortgaged, assigned or construed as advance payment encumbered in any manner whatsoever by Tenant without the prior written consent of rent for any month of the lease termLandlord to be granted or withheld in Landlord's sole and absolute discretion.

Security Deposit. Tenant has deposited or concurrently herewith is depositing with Landlord the Security Deposit in the amount set forth above in Article 1.F. of the Basic Lease Provisions as security for the full and faithful performance of each and every covenant and agreement provision of this Lease to be performed by Tenant. If Tenant under materially breaches, after notice and failure to cure as provided herein, any provision of this Lease. Landlord shall have the right, including but not the obligation, limited to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent rent, Landlord may use all or in any part of this security deposit for the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of any rent or any other sums in default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason shall not be affected by the fact that Landlord holds securityof Tenant’s default. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application If any portion of the Security Deposit is so used or any part thereof applied, Tenant shall, within thirty five (305) days of said application. If the application is on account of maintenanceafter written demand therefor, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to deposit cash with Landlord in an amount sufficient to restore the Security Deposit to the amount identified above. Tenant agrees that Landlord shall not be required to keep the Security Deposit in fulltrust, segregate it or keep it separate from Landlord’s general funds, but Landlord may commingle Tenant’s Security Deposit with its general funds and Tenant shall not be entitled to interest on its Security Deposit. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender At the expiration of the Property in accordance with Paragraph 15)Term, and provided there exists no default by Tenant hereunder, the Security Deposit or any portion balance, if any thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer within ninety (90) days of the Building, termination date. Landlord may transfer or assign retain from said Security Deposit (i) any and all amounts incurred by Landlord to Landlord's granteecover the costs to be incurred by Landlord to remove any items required to be removed by Tenant under Section 29(b) below and to repair any damage caused by such removal (in which case any excess amount so retained by Landlord shall be returned to Tenant within thirty (30) days after such removal and repair), lessee and (ii) any and all amounts permitted by law or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termthis Article 4.

Security Deposit. (a) Tenant has deposited agrees to deposit with Landlord upon execution of this Lease, the “Security Deposit” as stated in the Basic Lease Information. The Security Deposit in the amount set forth above shall be held and owned by Landlord, without obligation to pay interest, as security for the performance of each Tenant’s covenants and every covenant and agreement to be performed by Tenant obligations under this Lease. Landlord shall have the right, but not the obligation, to apply the The Security Deposit is not an advance rental deposit or a measure of damages incurred by Landlord in whole case of Tenant’s Event of Default. Upon the occurrence of any Event of Default by Tenant, Landlord may from time to time, without prejudice to any other remedy provided herein or in part by law, use such fund as payment of such amounts as are reasonably a credit to the extent necessary to remedy Tenant's defaults in the payment credit against any arrears of rent Rent or in the performance of the covenants or agreements contained herein. other payments due to Landlord's right to possession of the Property for non-payment of rent or , and any other reason damage, injury, expense or liability caused by such Event of Default, and Tenant shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited pay to Landlord, within 15 days of demand, the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient so applied in order to restore the Security Deposit in fullto its original amount. Upon Although the Security Deposit shall be deemed the property of Landlord, any remaining balance of the Security Deposit shall be returned by Landlord to Tenant at such time after the termination of this Lease that all of Tenant’s obligations under this Lease have been fulfilled, reduced by such amounts as may be required by Landlord to remedy defaults on the part of Tenant in the payment of Rent or other obligations of Tenant under this Lease, full payment of all amounts due to repair damage to the Premises, Building, or Site caused by Tenant or any Tenant’s Parties and performance of all Tenant's covenants to clean the Premises. Landlord may use and agreements (including surrender of the Property in accordance with Paragraph 15), co-mingle the Security Deposit or any portion thereof remaining unapplied shall be returned to with other funds of Landlord. Tenant in accordance with applicable law. In hereby waives the event of a sale, lease, or other transfer provisions of the BuildingCalifornia Civil Code section 1950.7, Landlord and all other provisions of any Laws, now or hereinafter in force, which restricts the amount or types of claim that a landlord may transfer make upon a security deposit or assign said Security Deposit imposes upon a landlord (or its successors) any obligation with respect to Landlord's grantee, lessee the handling or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termsecurity deposits.

Security Deposit. Tenant has deposited with Landlord Subject to the Security Deposit in provisions herein, as long as ALZA or an ALZA Affiliate is the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. , Tenant shall not be required to deposit with Landlord a security deposit ("Security Deposit") under this Lease; however, Landlord shall have require a Security Deposit in an amount equal to two times the rightlast month's Basic Rent in this Lease in the event this Lease is assigned to an Unaffiliated Assignee and ALZA is released from liability for said Lease, in which case, said sum shall be held by Landlord as a Security Deposit for the faithful performance by Tenant of all of the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the Lease Term. If Tenant defaults with respect to any provision of this Lease and such default is not cured within any applicable cure period, including, but not limited to, the obligationprovisions relating to the payment of Rent or any other monetary sums due hereunder, to Landlord may (but shall not be required to) use, apply the or retain all or any part of this Security Deposit in whole or in part as for the payment of such amounts as are reasonably necessary to remedy Tenant's defaults amount in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent default, or any other amount which Landlord may spend by reason shall not be affected by the fact that Landlord holds security. of Tenant's liability is not limited default or to the amount compensate Landlord for any other loss or damage which Landlord may suffer by reason of the Security DepositTenant's default. Landlord shall give Tenant written notice of the application If any portion of the Security Deposit is so used or any part thereof applied, Tenant shall, within thirty ten (3010) days of said application. If after written demand therefor, deposit cash with Landlord in the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in fullto its original amount. Upon termination Tenant's failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep this Security Deposit separate from its general funds, full payment and Tenant shall not be entitled to interest on such Deposit. If Tenant fully and faithfully performs every provision of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15)this Lease to be performed by it, the Security Deposit or any portion balance thereof remaining unapplied shall be returned to the last party recognized by Landlord as Tenant in accordance with applicable lawhereunder (or at Landlord's option, to the last assignee of Tenant's interest hereunder) at the expiration of the Lease Term and after Tenant has vacated the Premises. In the event of a sale, lease, or other transfer termination of the BuildingLandlord's interest in this Lease, Landlord may shall transfer or assign said the Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, successor in interest whereupon Tenant agrees to look to such grantee, lessee or assignee solely release Landlord from liability for the return of said Security Depositsuch Deposit or the accounting therefor. The provisions hereof Notwithstanding the above, Tenant shall apply have the right, at Tenant's sole election, to each and every sale, lease or other transfer substitute for one-half of the Building. The cash Security Deposit to be held by Landlord, an irrevocable letter of credit, drawn upon an institutional lender reasonably acceptable and accessible to Landlord in form and content reasonably satisfactory to Landlord and for a term equal to at least one year (with the letter of credit required to be renewed or replaced by Tenant so as to be available to be drawn on at any time during the Lease Term plus a period of sixty (60) days). Said financial institution must agree that the presentment for demand may be made in at least one of the following locations: San Jose, Santa Clara, San Francisco or Palo Alto, Californix. Xuch irrexxxxxle letter of credit shall be renewed by the issuer (or replaced with a similarly qualifying letter of credit reasonably acceptable to Landlord) at least twenty (20) days prior to the expiration date thereof from time to time during the Lease Term, and shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants and conditions of this Lease to be kept and performed by Tenant. If, for any reason, Tenant fails to cause the irrevocable letter of credit to be so renewed or replaced at least twenty (20) days prior to its expiration date, Landlord shall have the right to immediately draw upon the letter of credit in full and hold the proceeds thereof as a cash Security Deposit hereunder. If Tenant has theretofore funded the Security Deposit entirely in cash, one half of the cash Security Deposit held by Landlord shall be refunded to Tenant upon Landlord's receipt of an acceptable irrevocable letter of credit. If Tenant defaults with respect to any provisions of this Lease and such default is not cured within any applicable cure period, including but not limited to provisions relating to the payment of Rent, Landlord may (but shall not be deemed or construed as advance required to) draw down on the irrevocable letter of credit for payment of rent any sum which Landlord may spend or become obligated to spend by reason of Tenant's default, or to compensate Landlord for any month loss or damage which Landlord may suffer by reason of Tenant's default. Landlord and Tenant acknowledge that such irrevocable letter of credit will be treated as if it were a cash Security Deposit, and such irrevocable letter of credit may be drawn down upon by Landlord in the amount then due to Landlord upon demand and presentation of evidence of the lease termidentity of Landlord to the issuing bank, in the event that Tenant defaults with respect to any provision of this Lease and such default is not cured within any applicable cure period. Landlord acknowledges that it is not entitled to and shall not draw down such irrevocable letter of credit unless Landlord would have been entitled to draw upon a cash Security Deposit pursuant to the terms of this Paragraph 4G. Concurrently with the delivery of the required information to the issuing bank, Landlord shall deliver to Tenant written evidence of the default upon which the draw down was based, together with evidence that Landlord has provided to Tenant the written notice of such default which was required under the applicable provision of the Lease, and evidence of the failure of Tenant to cure such default within the applicable grace period following receipt of such notice of default. If any portion of the irrevocable letter of credit is used or applied pursuant hereto, Tenant shall, within ten (10) days after receipt of a written demand therefor from Landlord, restore and replace the value of such security by either (i) depositing cash with Landlord in the amount equal to the sum drawn down under the irrevocable letter of credit, or (ii) increasing the irrevocable letter of credit to its value immediately prior to such application. Tenant's failure to replace the value of the security as provided in the preceding sentence shall be a material breach of its obligation under this Lease. The letter of credit shall further provide to the effect: (i) that it shall automatically renew for additional periods of one (1) year each from the expiry date or future expiry date, unless at least twenty (20) days prior to any expiry date the issuer notifies Landlord by registered mail of the issuer's election not to renew the letter of credit and (ii) if the issuer is unable or unwilling to so renew the letter of credit, the issuer shall deem such to automatically constitute a draw request from Landlord upon the letter of credit without further demand, and with the issuer on or before the expiration of such letter of credit to deposit for Landlord's account an amount equal to the amount remaining committed but undrawn under the letter of credit (unless issuer has sought and obtained from Landlord prior thereto a written acknowledgment by Landlord of the termination of the requirement of this Lease for such letter of credit to be so renewed, in which event issuer shall not be required to make such a deposit for Landlord's account).

Security Deposit. Upon signing this Lease, Tenant has deposited shall immediately deposit with Landlord Landlord, in cash, the Security Deposit in the amount set forth above as security for the performance by Tenant of each and every covenant and agreement the terms of this Lease to be performed by Tenant, and not as prepayment of Rent. At Tenant's option, at any time following execution of this Lease by Landlord and Tenant under and Tenant's initial deposit with Landlord of the cash Security Deposit as required in the preceding sentence, the cash Security Deposit may be replaced with an unconditional, clean, irrevocable, standby letter of credit complying with the terms of this LeaseSection 3.7 and the terms and conditions set forth in Exhibit D attached hereto and incorporated herein by reference (the "Letter of Credit"). Landlord shall have the right, but not the obligation, to may apply such portion or portions of the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary for the following purposes: (i) to remedy Tenant's defaults any default (after applicable notice and cure periods) by Tenant in the payment of rent Base Monthly Rent or Additional Rent or a late charge or interest on defaulted Rent; (ii) to repair damage to the Premises caused by Tenant; (iii) to clean and repair the Premises following their surrender to Landlord if not surrendered in the performance condition required pursuant to the provisions of the covenants or agreements contained herein. Landlord's right Article 2; and (iv) to possession of the Property for non-payment of rent or remedy any other reason shall not be affected default (after applicable notice and cure periods) of Tenant to the extent permitted by the fact that Landlord holds security. Law including, without limitation, paying in full on Tenant's liability is not limited behalf any sums claimed by material men or contractors of Tenant to be owing to them by Tenant for work done or improvements made at Tenant's request to the amount of Premises. In this regard, Tenant hereby waives any restriction on the Security Deposit. Landlord shall give Tenant written notice of the application of uses to which the Security Deposit or any part thereof within thirty (30may be applied as contained in Section 1950.7(c) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receiptsCalifornia Civil Code and/or any successor statute. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore In the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), event the Security Deposit or any portion thereof remaining unapplied is so used, Tenant shall pay to Landlord, promptly upon demand, an amount in cash sufficient to restore the Security Deposit to the full original sum. Landlord shall not be returned to Tenant in accordance with applicable law. In the event of deemed a sale, lease, or other transfer trustee of the BuildingSecurity Deposit. Landlord may use the Security Deposit in Landlord's ordinary business and shall not be required to segregate it from its general accounts. Tenant shall not be entitled to any interest on the Security Deposit. If Landlord transfers the Building during the Term, Landlord may transfer or assign said the Security Deposit to Landlord's granteeany subsequent owner in conformity with the provisions of Section 1950.7 of the California Civil Code and/or any successor statute, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to in which event Landlord assumes shall be released from all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely liability for the return of said the Security Deposit. The Tenant specifically grants to Landlord (and hereby waives the provisions hereof shall apply of California Civil Code Section 1950.7 to each and every sale, lease or other transfer the contrary) a period of thirty (30) days following a surrender of the Building. The Premises by Tenant to Landlord in accordance with the terms of this Lease within which to return the Security Deposit (less permitted deductions) to Tenant, it being agreed between Landlord and Tenant that thirty (30) days is a reasonable period of time within which to inspect the Premises, make required repairs, receive and verify workmen's xxxxxxxx therefore, and prepare a final accounting with respect to such deposit. In no event shall not the Security Deposit, or any portion thereof, be deemed or construed as advance payment of rent for any month of the lease termconsidered prepaid Rent.

Security Deposit. (a) Concurrently with the execution of this Lease, Tenant shall deliver to Landlord a security deposit in the amount of Two Million One Hundred Fifty Thousand and xx/100 ($2,150,000.00) Dollars (the "Security Deposit"). The Security Deposit shall be in the form of either cash (a "Cash Security Deposit") or an irrevocable letter of credit (the "Letter of Credit") and issued by a bank (or bank subsidiary or other financial institution issuing the Letter of Credit) reasonably acceptable to Landlord and having a long-term unsecured debt rating of not less than "AA" from Standard & Poor's Corporation and otherwise in form and substance satisfactory to Landlord. The Security Deposit shall remain in full force and effect during the Term as security for the payment by Tenant of the Rent and all other charges or payments to be paid hereunder and the performance of the covenants and obligations contained herein, and if the Security Deposit is in the form of a Letter of Credit, same shall be renewed at least thirty(30) days prior to any expiration thereof (and may be in the form of a one year automatically renewable or "evergreen" letter of credit). If Tenant fails to timely renew any Letter of Credit, time being of the essence, Landlord shall have the right at any time after the thirtieth(30th) day before such expiration date to draw on such Letter of Credit and to deposit the proceeds of such Letter of Credit as a cash security deposit in any account for the benefit of Landlord or to declare an Event of Default. The Cash Security Deposit shall not be commingled with other funds of Landlord and shall be deposited in an interest bearing account in a bank selected by Landlord. Provided that an Event of Default has deposited not occurred and is not then continuing, any interest earned on such Cash Security Deposit shall be paid to Tenant annually, less any administrative fee that Landlord is required to pay in connection with the maintenance or servicing of such account, which annual administrative fee shall not exceed one(1%) percent of the amount of such Cash Security Deposit. Provided that no Event of Default has occurred and is then continuing, Tenant shall have the right at anytime during the Term, upon not less than thirty(30) days prior written notice to Landlord, to tender a Letter of Credit to Landlord meeting the requirements of this Paragraph 35 in substitution of a Cash Security Deposit. Notwithstanding the foregoing provisions of this Paragraph 35(a), Landlord has agreed that it shall, concurrently with the execution of this Lease, advance and deposit on behalf of Tenant the Security Deposit in the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the $2,150,000.00 which Security Deposit shall be assigned to and held by Lender in whole or in part as payment accordance with provisions of Paragraph 35(d) below. In consideration of such amounts as are reasonably necessary advance by Landlord, Tenant covenants and agrees that it shall reimburse to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Deposit so advanced by Landlord in two installments; the first installment in the amount of One Million and xx/100 ($1,000,000.00) Dollars shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay be due and payable to Landlord an on or before March 31,2005, and the second installment the amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts One Million One Hundred Fifty Thousand and xx/100 ($1,150,000.00) Dollars shall be due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed payable to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee on or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termbefore March 31,2006.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant has deposited with shall pay to Landlord the Security Deposit in the amount set forth above for the Deposit, which shall be held by Landlord to secure Tenant's performance of each and every covenant and agreement to be performed by Tenant its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord's damages upon an Event of Default (defined in Section 17). Landlord shall have the rightmay, but not the obligationfrom time to time following an Event of Default and without prejudice to any other remedy, to apply use all or a part of the Security Deposit in whole or in part as payment to perform any obligation Tenant fails to perform hereunder with respect to such Event of Default. Following any such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. After applying all sums necessary to cure any Event of Default, Landlord shall give shall, within 30 days after the Term ends, return to Tenant written notice of the application portion of the Security Deposit which was not properly applied to satisfy Tenant's obligations. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord's obligations under this Lease, then Landlord shall assign the Security Deposit to the transferee and the transferor Landlord thereafter shall have no further liability for the return of the Security Deposit, but the transferee Landlord, by accepting any such transfer, shall be deemed to have assumed all obligations of Landlord with respect to the Security Deposit. In lieu of a cash Security Deposit, simultaneously with the execution and delivery of this Lease, or any from time to time during the Term, Tenant may deliver to Landlord an irrevocable and unconditional standby letter of credit made payable to Landlord, its successors and assigns, in the sum of $464,000.00 (the "LETTER OF CREDIT"), in the form of the sample letter of credit attached hereto as EXHIBIT H or in such other form as is reasonably acceptable to Landlord, which shall secure the performance by Tenant of all obligations on the part thereof within of Tenant hereunder. The issuer of the Letter of Credit shall be a banking institution with at least a rating of A and otherwise reasonably acceptable to Landlord. Although Landlord shall only have the right to draw under the Letter of Credit as set forth herein, under the terms of the Letter of Credit, the sole condition to Landlord's draw upon the Letter of Credit shall be presentment to the issuer thereof, prior to or on the expiration date, of a demand for payment, together with a statement or certification that an Event of Default has occurred under this Lease or that Landlord has received a notice of the failure to extend or renew the Letter of Credit. The Letter of Credit shall be self-renewing from year to year during the Term of this Lease so as to expire no earlier than thirty (30) days following the Lease expiration date and shall contain such other customary terms as Landlord requires in its reasonable discretion. It is agreed: (i) that the Letter of said application. If the application is Credit may be drawn upon to cure any Event of Default that may exist, without prejudice to any other remedy or remedies which Landlord may have on account of maintenancethereof, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said noticeand upon Landlord's demand, Tenant shall reimburse the issuer for the amount so drawn so that the Letter of Credit will be restored to its original amount; (ii) subject to the provisions of clause (iv) below, that the Letter of Credit may be drawn upon if the Letter of Credit has not been extended or renewed without amendment at once pay least forty-five (45) days prior to any then-current expiration date thereof; (iii) that if the rating of the issuer of the Letter of Credit at any time drops below A, then, within sixty (60) days of Landlord's written demand, Tenant shall replace the Letter of Credit with another Letter of Credit in a form reasonably acceptable to Landlord and with an amount sufficient issuer with a rating of at least an A and otherwise reasonably acceptable to restore Landlord; upon receipt of such substitute Letter of Credit, Landlord shall promptly return the Security Deposit previous Letter of Credit to Tenant; and Landlord may draw on the existing Letter of Credit if, after Landlord requests that Tenant replace the Letter of Credit as aforesaid, Landlord is not provided with a substitute Letter of Credit in full. Upon termination a form, and from an issuer, satisfactory to Landlord as provided above upon the earlier of this Lease, full payment (X) the expiration of all amounts due and performance of all Tenant's covenants and agreements said sixty-day period or (including surrender Y) at least forty-five (45) days prior to the then-current expiration date of the Property Letter of Credit; (iv) at any time, but in accordance with Paragraph 15)any event, at least sixty (60) days prior to the Security Deposit expiration of the Letter of Credit, Tenant may seek Landlord's consent to switch issuers of the Letter of Credit provided the prospective issuer has a rating of at least an A and is otherwise reasonably acceptable to Landlord and the new form of Letter of Credit satisfies the requirements of Landlord hereunder and is otherwise reasonably acceptable to Landlord; and upon receipt of such substitute Letter of Credit, Landlord shall promptly return the previous Letter of Credit to Tenant; (v) that should the Premises be conveyed by Landlord, the, Letter of Credit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit assigned and delivered to Landlord's grantee, lessee and if the same be assigned and delivered as aforesaid, Tenant hereby releases Landlord from any and all liability with respect to the Letter of Credit and its application or assignee. Provided said granteereturn, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, and Tenant agrees to look to such granteegrantee for such application or return; provided, lessee however, that, by accepting any such conveyance, such grantee shall be deemed to have assumed Landlord's obligations under this Lease (including this Section 6); and (vi) that the Letter of Credit shall be returned to Tenant upon the later of (a) thirty (30) days after the expiration of the Term or assignee solely for any renewal or extension thereof, or (b) the return date Tenant has vacated the Premises and surrendered possession thereof to Landlord at the expiration of said the Term or any extension thereof as provided herein and has paid Landlord all sums due and owing under this Lease. If Tenant initially provides Landlord with a cash Security Deposit. The , Tenant may replace such cash Security Deposit with a Letter of Credit in accordance with the provisions hereof shall apply to each and every sale, lease or other transfer of the Buildingpreceding paragraph. The Upon Landlord's receipt of a Letter of Credit satisfying the terms and conditions of the preceding paragraph, Landlord shall promptly return the cash Security Deposit to Tenant. If Tenant initially delivers a Letter of Credit to Landlord, Tenant may replace the Letter of Credit with a cash Security Deposit under the terms of this Section 6. Upon receipt of such cash Security Deposit, Landlord shall promptly return the Letter of Credit to Tenant. For the purposes of this Section 6, a rating of at least A (or its equivalent) shall mean that such issuer has a rating of at least A (or its equivalent) from two (2) of the following four (4) rating agencies: Fitch Investors Service, Moodx'x Xxxestor Service, Standard & Poor's Corporation and Duff & Phelxx. Notwithstanding any other provisions of this Section 6, the Security Deposit (or the applicable Letter of Credit) shall be reduced further by $50,000.00 on each anniversary of the Commencement Date commencing on the second anniversary of the Commencement Date (individually, a "REDUCTION DATE" and collectively the "REDUCTION DATES"), provided Tenant or a Permitted Transferee (as hereinafter defined) has a Tangible Net Worth (as hereinafter defined) of at least $20,000,000.00 on such anniversary date and on the preceding anniversary of the Commencement Date, and further provided that on the applicable Reduction Date (i) the Lease is in full force and effect, (ii) no Event of Default exists, (iii) no Event of Default has occurred more than twice during the Term, and (iv) Tenant has not assigned this Lease to anyone other than a Permitted Transferee. If on any of the Reduction Dates the Security Deposit (or the applicable Letter of Credit) shall not be deemed reduced because one or construed as advance payment of rent for any month more of the lease termconditions set forth in clauses (i), (ii) or (iii) above cease to exist on the applicable Reduction Date, the Security Deposit (or applicable Letter of Credit) shall not be reduced during any succeeding calendar year. If on any of the Reduction Dates the Security Deposit (or applicable Letter of Credit) shall not be reduced because Tenant or Permitted Transferee, as applicable, does not have a Tangible Net Worth of $20,000,000.00 on such anniversary date and on the preceding anniversary of the Commencement Date or only the condition set forth in clause (iv) above (as opposed to the conditions set forth in any of clauses (i), (ii) or (iii) above) ceases to exist on the applicable Reduction Date, the Security Deposit (or applicable Letter of Credit) shall be so reduced on the next Reduction Date, provided the conditions set forth in clauses (i), (ii), (iii) and (iv) above exist on that Reduction Date, and provided further that Tenant or Permitted Transferee, as applicable, has a Tangible Net Worth of $20,000,000.00 on that Reduction Date and on the preceding anniversary of the Commencement Date, and provided further that the Security Deposit (or applicable Letter of Credit) shall be reduced only by the amount which the Security Deposit (or applicable Letter of Credit) would have been reduced in the preceding Reduction Date year if all of the conditions set forth in clauses (i), (ii), (iii) and (iv) above existed. If the Security Deposit (or applicable Letter of Credit) is reduced pursuant to the foregoing provisions, Landlord shall return the amount of each such applicable reduction if Tenant paid the Security Deposit in cash or Tenant may replace and/or amend the Letter of Credit accordingly.

Security Deposit. Upon execution of this Lease, Tenant has deposited shall deposit with Landlord the amount of the Security Deposit specified on [Page One], of this Lease. The Security Deposit will be returned to Tenant without interest upon the expiration of the Term of the Lease, provided that Xxxxxx has paid all amounts due under this Lease and has otherwise performed all obligations hereunder. In the event that Tenant defaults under any provision of this Lease, and after the expiration of any applicable cure period, Landlord may apply all, or any part of the Security Deposit to amounts owed by Tenant. In the event Landlord elects to apply the Security Deposit as provided for above, Tenant shall promptly restore such Security Deposit to the original amount. Landlord may, at its discretion, commingle such funds with its other funds, Upon any sale or other conveyance of the Building, Landlord may transfer the Security Deposit (or any amount of the Security Deposit remaining) to a successor/owner, and Xxxxxx agrees to look solely at the successor/owner for repayment of the same. Notwithstanding anything to the contrary in the paragraph above, in lieu of a cash Security Deposit, Tenant may deliver the Security Deposit in the amount set forth above for form of an unconditional, clean, irrevocable standby letter of credit, in a form acceptable to Landlord, and issued by a bank reasonably acceptable to Landlord (the performance “Letter of each and every covenant and agreement Credit”) as security, provided the Letter of Credit shall be delivered to be performed by Tenant under Landlord with executed copies of this Lease. The Letter of Credit shall (i) be unconditional, irrevocable, transferable, payable to Tenant upon presentment of original to the issuer in person or by courier, in partial or full draws, and (ii) contain an “evergreen” provision which provides that it is automatically renewed on an annual basis (subject to the permitted date of termination set forth below) unless the issuer delivers thirty (30) days’ prior written notice of cancellation to Landlord shall have and Tenant. Without limiting any of Landlord’s rights or remedies hereunder, if the rightbank issuing the Letter of Credit provides Landlord with a cancellation notice, but not the obligation, to apply the Security Deposit in whole Landlord may immediately draw upon all or in any part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants Letter of Credit and Tenant shall provide Landlord with an additional irrevocable stand-by letter of credit as provided below. Any and all fees or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected costs charged by the fact issuer in connection with the Letter of Credit shall be paid by Xxxxxx. The irrevocable stand-by Letter of Credit shall remain effective through the date that Landlord holds securityis sixty (60) days following the expiration date this Lease. Tenant's liability is If Tenant defaults with respect to any provision of this Lease beyond applicable notice and cure periods, including but not limited to the amount provisions relating to the payment of the Security DepositRent, Landlord may draw upon all or any part of Tenant’s Letter of Credit. Landlord shall give Tenant written notice of the application If any portion of the Security Deposit is so used, applied, or any part thereof retained, Tenant will within thirty ten (3010) days of said application. If the application is on account of maintenanceafter written demand from Landlord, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay provide to Landlord an additional irrevocable, stand-by letter of credit, which shall be in form and substance satisfactory to Landlord, issued by a bank reasonably acceptable to Landlord, in an amount sufficient to restore the Security Deposit in fullto its required amount pursuant to this Section 8. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), ’s failure to replenish the Security Deposit or any portion thereof remaining unapplied shall be returned constitute a failure to pay Additional Rent and Tenant in accordance with applicable law. In shall have ten (10) days from the event date of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit notice to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to cure such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termdefault.

Security Deposit. Landlord hereby acknowledges receipt from Tenant has deposited of the sum of $ , paid prior hereto, to be held as security for the faithful performance by the Tenant of the covenants, conditions, rules and regulations contained herein. The Security Deposit, or any portion thereof, may be withheld for unpaid rent, damage due to breach of this Lease or for damage by Tenant or the Tenant’s family, agents, employees, guests or invitees in excess of ordinary wear and tear to the Premises, common areas, major appliances and furnishings owned by the Landlord. It is understood and agreed, however, that irrespective of said Security Deposit, rent shall be paid when due, in accordance with the terms hereof. The Tenant shall have the right to be present when the Landlord, or the Landlord’s agent, inspects the Premises in order to determine if any damage was done to the Premises, if the Tenant notifies the Landlord by certified mail of the Security Deposit Tenant's intention to move, the date of moving, and the Tenant’s new address. The notice to be furnished by the Tenant shall be mailed to the Landlord at least fifteen (15) days prior to the date of moving. Upon receipt of the notice, the Landlord shall notify the Tenant by certified mail of the time and date when the Premises is to be inspected. The date of inspection shall occur within five (5) days before or five (5) days after the date of moving as designated in the amount set forth above for Tenant's notice. In the performance event of each and every covenant and agreement to be performed the sale or transfer of the Premises by Tenant under this Lease. Landlord, the Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenancetransfer, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In , the event of a sale, leaseSecurity Deposit to the vendee, or other transfer transferee, and Landlord shall be considered released by Tenant for all liability for the return of the Building, Landlord may transfer or assign said such Security Deposit and Tenant shall look to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee ’s transferee solely for the return of said Security Deposit. The provisions hereof It is agreed that this shall apply to each and every sale, lease transfer or other transfer assignment made of the BuildingSecurity Deposit to any such transferee. The Security Deposit shall not be deemed mortgaged, assigned or construed as advance payment encumbered by Tenant without the prior written consent of rent for Landlord and any month attempt to do so shall be void. The Tenant shall have a right to receive, by first class mail, delivered to the last known address of the lease termTenant, a written list of the charges against the Security Deposit claimed by the Landlord and the actual costs, within forty-five (45) days after the termination of the tenancy. The Landlord shall be further obligated to return any unused portion of the Security Deposit, by first class mail, addressed to the Tenant’s last known address within forty-five (45) days after the termination of the tenancy. Failure of the Landlord to comply with Maryland’s Security Deposit Law may result in the Landlord being liable to the Tenant for a penalty of up to three (3) times the Security Deposit withheld, plus reasonable attorney’s fees.

Security Deposit. Upon execution of this Lease, Tenant has deposited shall deposit with Landlord the Security Deposit. The Security Deposit in the amount set forth above shall be held by Landlord as security for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and faithful performance of all the terms of this Lease to be observed and performed by Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed mortgaged, assigned, transferred or construed encumbered by Tenant and any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. If the Annual Fixed Rent or Additional Rent payable hereunder shall be overdue and unpaid or should Landlord make any payment on behalf of the Tenant, or Tenant shall fail to perform any of the terms of this Lease, then Landlord may, at its option, upon not less than three (3) days' prior notice to Tenant, but without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply the entire Security Deposit or so much thereof as advance may be necessary to compensate Landlord toward the payment of rent for any month Annual Fixed Rent, Additional Rent or other sums or loss or damage sustained by Landlord due to such breach by Tenant; and Tenant shall forthwith upon demand restore the Security Deposit to the original sum deposited. So long as Tenant shall not be in default of its obligations under this Lease, Landlord shall return the Security Deposit, or so much thereof as shall have not theretofore been applied in accordance with the terms of this Section 4.9, to Tenant promptly following the expiration or earlier termination of the lease termterm of this Lease and the surrender of possession of the Premises by Tenant to Landlord in accordance with the terms of this Lease. While Landlord holds the Security Deposit, Landlord shall have no obligation to pay interest on the same and shall have the right to commingle the same with Landlord's other funds. If Landlord conveys Landlord's interest under this Lease, the Security Deposit, or any part thereof not previously applied, shall be turned over by Landlord to Landlord's grantee, and Tenant shall look solely to such grantee for proper application of the Security Deposit in accordance with the terms of this Section 4.9 and the return thereof in accordance herewith. The holder of a mortgage on the Property shall not be responsible to Tenant for the return or application of the Security Deposit, whether or not it succeeds to the position of Landlord hereunder, unless such holder actually receives the Security Deposit. In addition, at the expiration of the term of the Other Lease, Tenant shall deliver to Landlord a letter of credit (the "Letter of Credit"), which shall (a) be unconditional and irrevocable and otherwise in form and substance satisfactory to Landlord; (b) be at all times in the amount of $150,000, and shall permit multiple draws without a corresponding reduction in the amount of the Letter of Credit; (c) be issued by a commercial bank reasonably acceptable to Landlord from time to time; (d) be made payable to, and expressly transferable and assignable at no charge by, the owner from time to time of the Property (which transfer/assignment shall be conditioned only upon the execution by such owner of a written document in connection with such transfer/assignment; (e) be payable at sight upon presentment to a local branch of the issuer of a simple sight draft accompanied by a certificate of Landlord stating that Tenant is in default under this Lease, and the amount that Landlord is owed (or is permitted to draw) in connection therewith; and (f) shall either expire sixty (60) days following the expiration of the term of this Lease, or be replaced not less than thirty (30) days prior to the expiration of the then current Letter of Credit so that the original Letter of Credit or a replacement thereof shall be in full force and effect throughout the Term of this Lease and for a period of sixty (60) days thereafter. Tenant shall deliver to Landlord any replacement Letter of Credit not less than thirty (30) days prior to the expiration of the then current Letter of Credit. Notwithstanding anything in this Lease to the contrary, any grace period or cure periods which are otherwise applicable under Section 8.1, hereof, shall not apply to any of the foregoing, and, specifically, if Tenant fails to comply with the requirements of subsection (f) above, Landlord shall have the immediate right to draw upon the Letter of Credit in full and hold the proceeds thereof as a cash security deposit until such breach or default shall be cured by Tenant. Each Letter of Credit shall be issued by a commercial bank that has a credit rating with respect to certificates of deposit, short term deposits or commercial paper of at least P-2 (or equivalent) by Moodx'x Xxxestor Service, Inc., or at least A-2 (or equivalent) by Standard & Poor's Corporation. If the issuer's credit rating is reduced below P-2 (or equivalent) by Moodx'x Xxxestor Service, Inc., or at least A-2 (or equivalent) by Standard & Poor's Corporation, or if the financial condition of the issuer changes in any other materially adverse way, then Landlord shall have the right to require that Tenant obtain from a different issuer a substitute Letter of Credit that complies in all respects with the requirements of this Section, and Tenant's failure to obtain such substitute Letter of Credit within ten (10) days after Landlord's written demand therefor (with no other notice, or grace or cure period being applicable thereto) shall entitle Landlord to immediately draw upon the existing Letter of Credit in full, without any further notice to Tenant until such substitute Letter of Credit is provided.

Security Deposit. Tenant has deposited with Landlord the Security Deposit agrees that a security deposit in the amount set forth above of [ ] (the “Security Deposit”) will be paid in cash within three (3) business days of Tenant’s execution and delivery of this Lease to Landlord, and that Landlord shall hold the same throughout the Term of this Lease in an interest bearing account as security for the performance of each and every covenant and agreement to be performed by Tenant under this Leaseof all obligations on the part of Tenant hereunder. Landlord shall have the right, but not the obligationright from time to time without prejudice to any other remedy Landlord may have on account thereof, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent Deposit, or any other reason part thereof, to Landlord’s damages arising from, or to cure, any Event of Default of Tenant. If Landlord shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount so apply any or all of the Security Deposit, Tenant shall promptly deposit with Landlord, after written notice thereof to Tenant, the amount so applied to be held as security hereunder. If no Event of Default exists upon the expiration or earlier termination of the Term of this Lease, Landlord shall give Tenant written notice return the Security Deposit plus any interest earned thereon, or so much thereof as shall have theretofore not been applied in accordance with the terms of this Section, to Tenant, within sixty (60) days after surrender of possession of the Premises by Tenant to Landlord so long as the Premises are in the condition required by this Lease. If Landlord conveys Landlord’s interest under this Lease, the Security Deposit, or any part thereof not previously applied, may be turned over by Landlord to Landlord’s grantee, and, if so turned over, Tenant agrees to look solely to such grantee for proper application of the Security Deposit or any part in accordance with the terms of this Section, and the return thereof within thirty (30) days of said application. If the application is on account of maintenancein accordance herewith, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost provided that such grantee acknowledges receipt of the same, attaching estimates or paid receipts. Upon and Tenant’s rights thereto, in writing at the time of such transfer and a copy of such receipt of said notice, Tenant shall at once pay is provided to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.

Security Deposit. Upon the Lease Commencement Date, Tenant has deposited with shall pay to Landlord the Security Deposit in the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of Four Hundred Fifty Thousand ($450,000.00) Dollars, the “Security Deposit”, which shall be held as security for Tenant’s performance as herein provided and refunded to Tenant at the end of this Lease or any extensions thereto, subject to Tenant’s satisfactory compliance with the conditions hereof. Three Hundred Thousand ($300,000.00) Dollars initially deposited (the “PSA Deposit”) per the Purchase and Sale Agreement between Landlord and Tenant (MassGrow, LLC) dated January 9, 2019 (“PSA”), and herein attached as Exhibit C, shall be applied towards the Security Deposit. Landlord shall give Tenant written notice of may use, apply, or retain the application whole or any part of the Security Deposit to the extent required for the payment of any rent or other payment due to Landlord hereunder or other sum which Landlord may expend or incur by reason of Tenant’s default in any of the terms of this Lease, including, but not limited to, any damages or deficiency in the re-letting of the Premises, whether such damages or deficiencies accrued before or after summary proceedings or other re-entry by Landlord. If all or any part thereof of the Security Deposit is applied to an obligation of Tenant hereunder, Tenant shall immediately upon the request by Landlord restore the Security Deposit to its original amount. Landlord shall return any unapplied balance of the Security Deposit to Tenant within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost end of the sameterm of this Lease. Thirty (30) days prior to Tenant’s scheduled demolition of the approximate 3,500 square foot rear portion of the Premises, attaching estimates or paid receipts. Upon receipt of said noticeidentified in Exhibit A, and further identified in the construction plans and construction schedule outlined in Exhibit B, provided by Tenant and reviewed and approved by Landlord, Tenant shall at once pay to Landlord an additional security in the amount sufficient to restore of Five Hundred Fifty Thousand ($550,000.00) Dollars for the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due performance and performance of all Tenant's covenants and agreements (including surrender completion of the Property in accordance with Paragraph 15)construction process, the Security Deposit “Completion Guarantee”. Prior to the Completion Guarantee deposit, in no event shall Tenant demolish or any structurally alter the back approximate 3,500 square foot portion thereof remaining unapplied of the Premises without Landlord’s prior written consent. The Completion Guarantee shall be returned refunded to Tenant in accordance with applicable law. In the event full within Five (5) days after notice of a sale, lease, or other transfer Store Opening and release of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee mechanical liens by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termTenant’s contractors.

Security Deposit. Tenant has deposited with Landlord shall pay to Landlord, immediately upon execution of this Lease, the Security Deposit in the amount set forth above Deposit, which shall be held by Landlord as security for the faithful performance by Tenant of each all of the terms, covenants and every covenant and agreement conditions of this Lease to be kept and performed by Tenant under this during the Term hereof. If Tenant defaults with respect to any provision of the Lease. Landlord shall have the right, including but not limited to, the obligation, provisions relating to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason Rent, Landlord may (but shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any part thereof within thirty (30) days other sum in default, or for the payment of said applicationany other amount which Landlord may spend or become obligated to spend by reason of Tenant's default or to compensate Landlord for any other loss or damage which landlord may suffer by reason of Tenant's default. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost any portion of the same, attaching estimates Security Deposit is so used or paid receipts. Upon receipt of said noticeapplied, Tenant shall at once pay to shall, upon demand therefor, deposit with Landlord cash, in an amount sufficient to restore the Security Deposit in full. Upon termination to its original amount and Tenant's failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep the Security Deposit separate from its general funds, full payment and Tenant shall not be entitled to interest on the Security Deposit. If Tenant shall fully and faithfully perform every provision of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15)this Lease to be performed by it, the Security Deposit or any portion balance thereof remaining unapplied shall be returned to Tenant (or at Landlord's option to the last assignee of Tenant's interest hereunder) within thirty (30) days following expiration of the Term, provided that Landlord may retain the Security Deposit until such time as any amount due from Tenant in accordance with applicable lawhereof has been determined paid in full. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.Initials /s/ EJC -------- Initials --------

Security Deposit. Tenant has deposited Lessee shall, deposit with Landlord Lessor the Security Deposit in the amount set forth above as security for the full and faithful payment and performance by Lessee of each and every covenant and agreement to be performed by Tenant its obligations under this Lease, and not as a prepayment of Rent. Landlord The Security Deposit shall have be deposited with Lessor simultaneously with the rightexecution and delivery of this Lease. For purposes of this Lease, but not the obligation, term “Security Deposit” shall mean and include all cash security deposited with Lessor pursuant to apply this Section. Any cash security held by Lessor pursuant to this section may be commingled with Lessor’s other funds. Lessor shall assign and deliver the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance any transferee of the covenants Building and thereafter Lessor shall have no further responsibility therefor. Upon the expiration (or agreements contained herein. Landlord's right to possession earlier termination) of the Property for non-payment Term of rent or any other reason this Lease, Lessor shall not be affected by inspect the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of Premises, make such deductions from the Security Deposit or as may be required to cure any part thereof default by Lessee hereunder, and, if Lessee is not then in default hereunder, return the cash security then held by Lessor to Lessee within thirty (30) days of said applicationsuch expiration or termination. If Lessee is in default at the application is on account time of maintenancesuch expiration or termination, repairs or replacements necessitated by tenant, said notice the Lessor shall include the estimated or actual cost be entitled to retain so much of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of as Lessor reasonably estimates to be Lessee’s liability to Lessor under this LeaseLease and shall pay the balance, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15)if any, the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable lawLessee within such 30-day period. In the event of a sale, lease, that Lessor applies all or other transfer any portion of the Buildingcash security, Landlord may transfer towards the cure of an Event of Default by Lessee hereunder or assign said towards damages payable by Lessee to Lessor by reason of the occurrence of an Event of Default by Lessee hereunder, Lessee shall pay to Lessor, as Additional Rent, the amount so expended by Lessor within thirty (30) business days of notice given by Lessor so that at all times (subject to the thirty (30)-business day grace period herein referenced) Lessor shall be entitled to hold the full cash security required to be deposited with Lessor hereunder. Any failure of Lessee to deliver to Lessor the cash security as prescribed herein or any amounts expended from the cash security within the time and manner specified in this Section shall constitute an Event of Default under the Lease and Lessor shall retain such cash amounts (or the cash security, as appropriate) as a Security Deposit pursuant to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return provisions of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termthis Section.

Security Deposit. Tenant has deposited with Landlord the Security Deposit in the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in To secure the performance of the covenants Licensee under this Licence the Licensee must pay the Security Deposit to the School Council on or agreements contained hereinbefore the Commencement Date. Landlord's right to possession If the Licensee breaches any of the Property for non-payment of rent Licensee’s obligations under this Licence and the School Council incurs any Losses (or acquires any other reason shall not be affected by entitlement to payment from the fact that Landlord holds security. Tenant's liability is not limited Licensee), the School Council may, if the default remains unremedied 10 Business Days after Default Notice has been given to the amount of Licensee, draw on the Security Deposit without further Notice to the Licensee to make good such Loss. If the School Council draws on the Security Deposit. Landlord shall give Tenant written notice of , the application of Licensee must replace the amount drawn down within 10 Business Days to maintain the Security Deposit or at the level specified in Item 16 of Schedule 1. Subject to any part thereof within thirty (30) days of said application. If right the application is School Council has to draw on account of maintenancethe Security Deposit, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore School Council must return the Security Deposit in full. Upon to the Licensee when each of the following criteria have been satisfied: 60 days have elapsed since the expiry or termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of Licence; the Property Licensee has vacated the Licensed Area in accordance with Paragraph 15this Licence, including satisfying all of its reinstatement obligations; and the Licensee has no outstanding obligations under this Licence or subsisting breach of this Licence or any actual or potential liability for any breach or non-performance of any of the Licensee’s obligations under this Licence. Use of Licensed Area The Licensee: must only use and occupy the Licensed Area; may only use the Licensed Area during the Term during the Hours of Use and on the Dates and/or Days of Use (as applicable); may access other parts of the School in common with others and being solely those parts of the School required for the purpose of accessing the Licensed Area; acknowledges that if the Licensed Area includes external areas (for example, playgrounds and ovals), School amenities, kitchen facilities, carparks and/or staff facilities, these areas will be used and occupied together with other occupiers of the Security Deposit School; acknowledges that the School Council may grant its consent, which consent will be at the absolute discretion of the School Council, for the Licensee to use other areas of the School in addition to those listed in clauses 9(a)(i) to 9(a)(iii) solely for the purposes of the Licensee's use of the Licensed Area; must comply with all Department, School and School Council policies and/or guidelines which deal with the safety or health of persons on the Licensed Area or otherwise under its control; must observe fire precautions, including taking any portion thereof remaining unapplied shall fire precautionary measures required by Law; must ensure that all external doors and windows are secured and locked and all lights, heating and/or cooling is extinguished daily at the end of its use of the Licensed Area; must ensure the Licensed Area is kept secure, clean and free from debris and rubbish; and acknowledges that no promise, representation, warranty or undertaking has been given by or on behalf of the School Council regarding the suitability of the Licensed Area for the conduct of the Permitted Use otherwise than as expressly contained in this Licence, or for any other use. The Licensee must not: use or allow the Licensed Area to be returned used for any purpose other than the Permitted Use; erect, display, affix or exhibit on or at the Licensed Area any signs except for signs that comply with all Laws and then only after obtaining the School Council’s approval (which approval is at the absolute discretion of the School Council) and all necessary planning and building permits from the relevant Government Agency; install any fixtures or fittings, except those necessary for the Permitted Use, without the School Council’s written consent (which consent is at the absolute discretion of the School Council); keep or use chemicals, inflammable liquids, acids or other hazardous things on the Licensed Area except for the Permitted Use, or create fire hazards; do anything in or near the Licensed Area or the Land which is noxious, offensive or a nuisance and not cause any injury or nuisance to Tenant neighbours or other occupiers of the, or surrounding the, Licensed Area; or overload the floor of the Licensed Area. Licensee’s Obligations Operation of Education and Care Service The Licensee must: conduct the Permitted Use in a proper, timely and efficient manner using that standard of care, skill, diligence, prudence and foresight that would reasonably be expected from a prudent, expert and experienced provider of an Education and Care Service; carry on the Permitted Use to the reasonable satisfaction of, and in accordance with applicable lawthe requirements of, the School Council; ensure that all its Associates engaged by the Licensee in connection with the Permitted Use are suitably qualified and experienced, and act to the best of their skill and ability and in accordance with the accepted professional standards for persons having those qualifications and experience; act in good faith and in the best interests of the School Council; ensure that the Permitted Use is compliant with the National Quality Standard; provide a reasonable selection and quantity of nutritional and wholesome foodstuffs which comply with the requirements of publications issued by the Department from time to time (or its successor) and the reasonable requirements of the School Council; and not provide any foodstuffs which the School Council has previously required the Licensee not to provide. In Education and Care Service Fees The Licensee may charge the event Education and Care Service Fees. The Licensee must not vary the Education and Care Service Fees except in accordance with the mechanism set out in Item 2 of a saleSchedule 2. Compliance with Laws The Licensee must: at its own expense in all respects, leaseobserve and comply with all Laws that apply to this Licence and all directions, notices and Requirements of any Government Agency relating to the development, construction, use and occupation of the Licensed Area, and any other use or development which the Licensee may undertake on the Licensed Area; keep in force and available for inspection by the School Council upon request, all licences, permits and registrations required for the carrying on of any business use or other transfer activity conducted by the Licensee in or upon the Licensed Area within the terms of this Licence; strictly observe and comply with the Building, Landlord may transfer or assign said Security Deposit Occupational Health and Safety Xxx 0000 (Vic) and any other Law relating to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each Permitted Use; and every sale, lease or other transfer of not use the Building. The Security Deposit shall not be deemed or construed as advance payment of rent Licensed Area for any month of the lease termillegal purpose.

Security Deposit. Tenant has deposited Each Coop shall deposit with Landlord the Security Deposit in the amount set forth above University upon execution hereof, as security for the Coop's faithful performance of the Coop's obligations hereunder, the dollar amount as provided in Addenda X-0, X-0, X, C and D, respectively as to each and every covenant and agreement Coop. If a Coop fails to be performed by Tenant under pay rent or other charges due hereunder, or otherwise defaults with respect to any provision of this Lease. Landlord shall have Space Agreement, the rightUniversity may use, but not the obligation, to apply the Security Deposit in whole or in part as payment retain all or any portion of such amounts as are reasonably necessary to remedy Tenant's defaults in said deposit for the payment of any rent or other charge in default or for the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other sum to which the University may become entitled by reason shall not be affected by of that Coop's default, or to compensate the fact that Landlord holds security. Tenant's liability is not limited to University for any loss or damage which the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said applicationUniversity may suffer thereby. If the application is on account of maintenance, repairs University so uses or replacements necessitated by tenant, said notice shall include the estimated applies all or actual cost of the same, attaching estimates or paid receipts. Upon receipt any portion of said noticedeposit, Tenant that Coop shall at once pay to Landlord within ten (10) days after written demand therefore, deposit cash with the University in an amount sufficient to restore said deposit to the Security Deposit in full. Upon termination full amount hereinabove stated, and that Coop's failure to do so shall be a material breach of this Lease, full payment Space Agreement as to that Coop. If the monthly rent increases during the Term of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15)this Space Agreement, the Security Deposit or any portion thereof remaining unapplied Coops to whom such increase applies shall thereupon deposit with the University an additional security deposit so that the amount of security deposit held by the University shall at all times bear the same proportion to current rent as the original security deposit bears to the original monthly rent set. The University shall not be returned required to Tenant in accordance with applicable lawkeep said deposit separate from its general accounts. In the event If each Coop performs all of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's its respective obligations hereunder, Tenant agrees said deposit, or so much thereof as has not theretofore been applied by the University, shall be returned, without payment of interest or other increment for its use, to look that Coop (or, at the University's option, to such granteethe last assignee, lessee or assignee solely for if any, of the return Coop's interest hereunder) at the expiration of the Term hereof, and after the Coop has vacated the Premises. No trust relationship is created herein between the University and the Coops with respect to said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termDeposits.

Security Deposit. 11.1 Simultaneously with Tenant’s execution of this Lease, Tenant has deposited shall deposit with Landlord the Security Deposit in the amount set forth above Amount as a security deposit for the performance of each and every covenant and agreement to be performed by Tenant of all of Tenant’s obligations, covenants, conditions and agreements under this Lease. Landlord shall not be required to maintain such security deposit in a separate account. Tenant shall not be entitled to interest on the security deposit. Within forty-five (45) days after the later of the expiration or earlier termination of the Lease Term or Tenant’s vacating the Premises, Landlord shall return such security deposit to Tenant, less such portion thereof as Landlord shall have appropriated to satisfy any of Tenant’s obligations under this Lease or to satisfy an Event of Default (or such other event which, with the giving of notice or the passage of time or both, would constitute an Event of Default) under this Lease. If Tenant fails to pay rent or other charges due hereunder, or otherwise defaults with respect to any provision of this Lease, Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited obligated, to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application use, apply or retain all or any portion of the Security Deposit for the payment of any rent or other charge in default or for the payment of any part thereof within thirty (30) days other sum to which Landlord may become obligated by reason of said applicationTenant’s default, to repair damages to the Premises caused by Tenant, to clean the Premises upon expiration or termination, or to compensate Landlord for any loss or damage which Landlord may suffer thereby, including, but not limited to, damages recoverable following termination of this Lease by reason of an Event of Default as herein provided, and any and all amounts Landlord may spend or become obligated to spend, or for the compensation of Landlord for any losses incurred, by reason of such event. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost any portion of the samesecurity deposit (in whatever form) is so used or applied, attaching estimates then within three (3) business days after Landlord gives written notice to Tenant of such use or paid receipts. Upon receipt of said noticeapplication, Tenant shall at once pay to deposit with Landlord cash in an amount sufficient to restore the security deposit to the original Security Deposit in full. Upon termination Amount, and Tenant’s failure to do so shall constitute an Event of Default under this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.

Security Deposit. Upon execution of this Lease, Tenant has deposited shall deposit with Landlord the Security Deposit. The Security Deposit in the amount set forth above shall be held by Landlord as security for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and faithful performance of all the terms of this Lease to be observed and performed by Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed mortgaged, assigned, transferred or construed encumbered by Tenant and any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. Tenant shall cause the Security Deposit to be maintained throughout the term in the amount set forth in Section 1.1. If the Annual Fixed Rent or Additional Rent payable hereunder shall be overdue and unpaid or should Landlord make any payment on behalf of the Tenant, or Tenant shall fail to perform any of the terms of this Lease, then Landlord may, at its option and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply the entire Security Deposit or so much thereof as advance may be necessary to compensate Landlord toward the payment of rent Annual Fixed Rent, Additional Rent or other sums or loss or damage sustained by Landlord due to such breach by Tenant, provided that Landlord shall not appropriate and apply the Security Deposit on account of any breach of this Lease by Tenant unless Tenant’s breach of this Lease shall have ripened into a Default of Tenant (i.e. after any applicable notice and expiration of any applicable cure period); and Tenant shall forthwith upon demand restore the Security Deposit to the amount stated in Section 1.1 upon written demand by Landlord, and until Tenant shall have so restored the Security Deposit to the amount required by Section 1.1, Tenant shall be deemed to be in default in the payment of Additional Rent for any month purposes of Section 8.1(a)(I) hereof. So long as Tenant shall not be in default of its obligations under this Lease, Landlord shall return the Security Deposit, or so much thereof as shall have not theretofore been applied in accordance with the terms of this Section 4.7, to Tenant promptly following the expiration or earlier termination of the lease termterm of this Lease and the surrender of possession of the Premises by Tenant to Landlord in accordance with the terms of this Lease. While Landlord holds the Security Deposit, Landlord shall have no obligation to pay interest on the same and shall have the right to commingle the same with Landlord’s other funds. If Landlord conveys Landlord’s interest under this Lease, the Security Deposit, or any part thereof not previously applied, shall be turned over by Landlord to Landlord’s grantee, and Tenant shall look solely to such grantee for proper application of the Security Deposit in accordance with the terms of this Section 4.7 and the return thereof in accordance herewith. The holder of a mortgage on the Property shall not be responsible to Tenant for the return or application of the Security Deposit, whether or not it succeeds to the position of Landlord hereunder, unless such holder actually receives the Security Deposit.

Security Deposit. Concurrently with Tenant's execution of this Lease, Tenant has deposited shall deposit with Landlord the sum of Four Hundred Ninety Three Thousand Five Hundred Sixteen and 80/100 ($493,516.80) Dollars. Said sum shall be held by Landlord as a Security Deposit in the amount set forth above for the faithful performance by Tenant of each all of the terms, covenants, and every covenant and agreement conditions of this Lease to be kept and performed by Tenant under during the term hereof. If Tenant defaults with respect to any provision of this Lease. Landlord shall have the right, including, but not limited to, the obligation, provisions relating to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance and any of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason monetary sums due herewith, Landlord may (but shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit required to) use, apply or retain all or any part thereof of this Security Deposit for the payment of any other amount which Landlord may spend by reason of Tenant's default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default. If any portion of said Deposit is so used or applied. Tenant shall, within thirty ten (3010) days of said application. If after written demand therefor, deposit cash with Landlord in the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in fullto its original amount. Upon termination Tenant's failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep this Security Deposit separate from its general funds, full payment and Tenant shall not be entitled to interest on such Deposit. If Tenant fully and faithfully performs every provision of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15)this Lease to be performed by it, the Security Deposit or any portion balance thereof remaining unapplied shall be returned to Tenant in accordance with applicable law(or at Landlord's option, to the last assignees of Tenant's interest hereunder) at the expiration of the Lease term and after Tenant has vacated the Premises. In the event of a sale, lease, or other transfer termination of the BuildingLandlord's interest in this Lease, Landlord may shall transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, successor in interest whereupon Tenant agrees to look to such grantee, lessee or assignee solely release Landlord from liability for the return of said Security Depositsuch Deposit or the accounting therefor. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termSee Paragraph 57.

Security Deposit. Concurrently with Tenant's delivery of this Lease, Tenant has deposited shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant's obligations under this Lease (the "SECURITY DEPOSIT"). Landlord shall not be required to keep this Security Deposit in separate from its general funds, and Tenant shall not be entitled to interest on the amount set forth above for Security Deposit. Subject to the performance last sentence of each this Section, the Security Deposit shall be understood and every covenant and agreement agreed to be performed the property of Landlord upon Landlord's receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall have the right, but not the obligation, Landlord be obligated to apply the Security Deposit in whole or in part as payment upon an Event of such amounts as are reasonably necessary to remedy Default and Landlord's rights and remedies resulting from an Event of Default, including without limitation, Tenant's defaults in the payment failure to pay Basic Rent, Tenant's Share of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent Operating Expenses or any other reason amount due to Landlord pursuant to this Lease, shall not be affected by diminished or altered in any respect due to the fact that Landlord holds security. Tenant's liability is not limited to the amount of holding the Security Deposit. Landlord shall give Tenant written notice of the application If any portion of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated applied by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said noticeLandlord as permitted by this Section, Tenant shall at once pay to within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit in fullto its original amount. Upon termination of If Tenant fully performs its obligations under this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant (or, at Landlord's option, to the last assignee of Tenant's interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord may transfer or assign said for Landlord's retaining such Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termextent provided in this Section.

Security Deposit. Tenant has deposited with Landlord shall pay to Landlord, immediately upon execution of this Lease, the Security Deposit sum specified in the amount set forth above Basic Lease Provisions as security for the full and faithful performance of each and every covenant and agreement provision of this Lease to be performed by Tenant. If Tenant under defaults with respect to any provisions of this Lease. Landlord shall have the right, including, but not limited to, the obligation, provisions relating to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent rent, Landlord may (but shall not be required to) use, apply or in retain all or any part of this security deposit for the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of any rent or any other sum in default, or for the payment of any other amount which Landlord may spend or become obligated to spend by reason shall not be affected by the fact that Landlord holds security. of Tenant's liability default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default. If any portion of said deposit is not limited to the amount of the Security Deposit. Landlord shall give so used or applied, Tenant written notice of the application of the Security Deposit or any part thereof shall, within thirty five (305) days of said application. If the application is on account of maintenanceafter written demand therefor, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to deposit cash with Landlord in an amount sufficient to restore the Security Deposit in fullsecurity deposit to its original amount and Tenant's failure to do so shall be a material breach of this Lease. Upon termination At Landlord's election, if the monthly Base Rent shall from time to time increase during the term of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements Tenant shall, within ten (including surrender 10) days after request by Landlord, deposit with Landlord additional money as a security deposit so that the total amount of the Property security deposit held by Landlord shall bear the same proportion to the then current Base Rent as the initial security deposit bears to the initial Base Rent as set forth in accordance the Basic Lease Provisions. Landlord shall not be required to keep this security deposit separate from its general funds, and Tenant shall not be entitled to interest on such deposit. No trust relationship is created hereby with Paragraph 15)respect to such security deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit security deposit or any portion balance thereof remaining unapplied shall be returned to the Tenant (or at the Landlord's option, to the last assignee of Tenant's interests hereunder) at the expiration of the Term, provided that Landlord may retain the security deposit until such time as any amount due from the Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each has been determined and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termpaid in full.

Security Deposit. Promptly after the full execution of the Lease (with a copy thereof delivered to Tenant), Tenant has deposited will provide Landlord with an amount equal to six (6) months of the Base Annual Rent, Seventy-Three Thousand Eight Hundred Forty-Five and 45/100 dollars ($73,845.45) to be held as Security Deposit. Provided that Landlord reasonably approves the Security Deposit form and substance of such, Tenant may provide a Letter of Credit in lieu of cash. Any such Letter of Credit shall be irrevocable, unconditional, payable to the amount set forth above order of Landlord, from an issuer reasonably approved by Landlord, in place for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance Term of the covenants or agreements contained herein. Landlord's right to possession of Lease and any Renewal Terms hereof, and be for the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the full amount of the Security Deposit. Landlord shall give Tenant written notice of the application will not be required to apply all or any portion of the Security Deposit with respect to any particular violation or default by Tenant but Landlord may apply all or any portion (as reasonably required to effect a cure) of the Security Deposit to any violation, breach, or default by Tenant hereunder. Landlord will be entitled to hold the Security Deposit in an account maintained by Landlord for such funds from all tenants of Landlord. Any interest paid on such an account will become a part thereof of the Security Deposit, accrue to the benefit of the Tenant (less any customary bank fees or charges for maintaining such account), and be delivered to Tenant upon termination of this Lease provided that the Security Deposit and interest thereon have not been applied by Landlord to an event of default hereunder. Tenant will reimburse Landlord for such portions of the Security Deposit as Landlord will from time to time apply with respect to any violation, breach, or default by Tenant hereunder promptly upon written notice of such application by Landlord. Any portion of the Security Deposit which has not been appropriated by Landlord in accordance with the provisions hereof will be returned to Tenant within thirty (30) days of said application. If after the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15). If Landlord conveys Landlord’s interest under this Lease, the Security Deposit Deposit, or any portion part thereof remaining unapplied not previously applied, shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, released by Landlord may transfer or assign said Security Deposit to Landlord's grantee’s grantee (to the extent not applied to any default by Tenant hereunder), lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunderand if so released, Tenant agrees to look solely to such granteegrantee for the proper application and return thereof in accordance with the Lease provided that Tenant receives written notice of such conveyance. Tenant agrees that Tenant will not assign, lessee and that neither Landlord, nor its successors and assigns, will be bound by any such assignment, encumbrance or assignee solely pledge, attempted assignment, attempted pledge, or attempted encumbrance of the Security Deposit. Any mortgagee or ground lessor will not be responsible to Tenant for the return or application of said the Security Deposit, whether or not it succeeds to the position of Landlord hereunder, unless the security deposit will have been received in hand by such mortgagee or ground lessor. Any unperformed obligations of Landlord or Tenant under this Section will survive the termination of the Lease, for whatever reason, or any extension or renewal hereof. Notwithstanding the foregoing and provided there is no default or event of default hereunder by Tenant (or if Tenant has committed a default or event of default more than one (1) time in any twelve (12) month period, then regardless of whether same has been cured), Landlord shall reduce the Security Deposit by the equivalent of one (1) month's Base Annual Rent, Twelve Thousand Three Hundred Seven and 58/100 dollars ($12,307.58) every three (3) months during the Lease Term commencing upon the later of (i) the satisfactory repayment of Tenant’s loan as reported on Precision BioSciences, Inc. Balance Sheet dated January 8, 2010, or (ii) December 31, 2011, until such time that the equivalent of one (1) month's Base Annual Rent, Twelve Thousand Three Hundred Seven and 58/100 dollars ($12,307.58), remains as Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer With the third reduction of the BuildingSecurity Deposit, if paid as aforesaid, Landlord shall remit to Tenant the net interest that has accrued on the Security Deposit. The Landlord shall provide Tenant written notice of any reduction in the Security Deposit and within five (5) business days thereafter, Tenant will be responsible for the re-issuance of an approved Letter of Credit each time that Security Deposit is eligible for reduction and until Tenant provides a re-issued Letter of Credit, Landlord shall not be deemed or construed as advance payment have the right to use and draw upon the currently provided Letter of rent for any month of the lease termCredit.

Security Deposit. If Tenant has deposited does not elect to deposit the L-C, then Tenant shall, concurrent with Tenant’s execution of this Lease, deposit with Landlord a security deposit (the “Security Deposit Deposit”) in the amount set forth above in Section 10 of the Summary. The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of each all the terms, covenants, and every covenant and agreement conditions of this Lease to be kept and performed by Tenant under during the Lease Term. If Tenant defaults (beyond any applicable notice and cure periods) with respect to any provisions of this Lease. Landlord shall have the right, including, but not limited to, the obligation, provisions relating to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason Rent, Landlord may, but shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application required to, use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any part thereof within thirty (30) days of said applicationother sum in default, or to compensate Landlord for any other actual loss or damage caused by Tenant’s default. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost any portion of the same, attaching estimates Security Deposit is so used or paid receipts. Upon receipt of said noticeapplied, Tenant shall at once pay to shall, within ten (10) business days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit in full. Upon termination of to its original amount, and Tenant’s failure to do so shall be a default under this Lease. The Security Deposit, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied balance thereof, shall be returned to Tenant within sixty (60) days following the expiration of the Lease Term; provided Tenant has cured any outstanding defaults or, if not, Landlord shall return the Security Deposit less amounts required to cure outstanding defaults. Tenant shall not be entitled to any interest on the Security Deposit. Tenant hereby waives all provisions of law, now or hereafter in accordance with applicable lawforce, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage to which Landlord is entitled to under the Lease, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant to the extent permitted under the Lease. In the event of a sale, lease, bankruptcy or other transfer debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. Notwithstanding anything to the contrary contained in this Article 20 or Section 10 of the BuildingSummary, in the event that Tenant, at the expiration of the twenty-fourth (24th) month of the initial Lease Term (“Reduction Date”), is not in default of any of its obligations under this Lease (beyond the expiration of all applicable notice and cure periods) and Landlord has not made any application of the Security Deposit prior to the Reduction Date, Landlord may transfer or assign said shall reduce the amount of the Security Deposit to Landlord's granteean amount equal to One Million Five Hundred Thirty-Four Thousand Two Hundred Seven and 50/100 Dollars ($1,534,207.50) and Landlord shall, lessee or assignee. Provided said granteewithin ten (10) days after the Reduction Date, lessee or assignee by written undertaking addressed refund to Landlord assumes all Landlord's obligations hereunder, Tenant agrees an amount equal to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each Seven Hundred Sixty-Seven Thousand One Hundred Three and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term70/100 Dollars ($767,103.70).

Security Deposit. Tenant has deposited shall, upon the execution of this Lease, deposit with Landlord as security for the Security Deposit in the amount set forth above for payment of rent and the performance of each and every covenant and agreement all other covenants to be performed by Tenant, the sum of One Thousand, Eight Hundred and Fifty and no/100 dollars ($1,850.00). Said security deposit shall be non-interest bearing. If Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent any monthly rental installment, or in fails to perform any other covenant within three (3) days after receipt of written demand therefor, Landlord, at its option, may apply sufficient sums from the performance security deposit towards payment thereof. If Landlord elects to so apply the security deposit, Tenant shall be obligated to immediately replenish the security deposit for the amount so applied by Landlord. The total security deposit shall be held by Landlord until expiration of the covenants initial term or agreements contained herein. Landlord's right to possession until expiration of any renewal term if any renewal option which exists is exercised, and the unused portion of the Property for non-payment security deposit shall be refunded by Landlord to Tenant at the end of rent the Term of this Lease or any other reason shall not be affected by renewal thereof. Provided, however, the fact that Landlord holds security. Tenant's liability is not limited to may hold the amount security deposit for a period of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including following surrender of the Property in accordance with Paragraph 15)possession of the Premises, and may deduct from the amount refunded any rental due and payable, the costs of repairing any damage or replacing any damaged portion of the Premises or of the Building or other real estate of which the Premises form a part and the costs of cleaning the same if the Tenant fails to do so prior to surrender of possession. Provided, however, said Security Deposit does not constitute a limitation of any kind to a claim by Landlord against Tenant for nonpayment of rentals or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable lawother sums under this Lease or for costs of repair, replacement and cleaning of the Premises as discussed herein. In the event of a sale, lease, or other transfer of proceedings begin it is agreed that the Building, Landlord may transfer or assign said Security Deposit held hereunder shall be deemed to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed be applied first to rent and other charges first due to Landlord assumes for all Landlord's obligations hereunder, Tenant agrees periods prior to look to the filing of any such grantee, lessee or assignee solely for the return of said Security Depositproceedings. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit security deposit shall not be deemed or construed as advance payment applied to rent except upon approval of rent for any month of the lease termLandlord.

Security Deposit. Tenant has deposited with The sum stated in Item 9 of the Basic Lease Provisions shall be deducted and transferred to Landlord from the Security Deposit in the amount set forth above currently being held by Landlord pursuant to its Industrial Lease with Tenant for the premises located at 340 and 000 Xxxxxxxx, Xxxxxx, Xxxxxxxxxx. Such sum shall be held by Landlord as security for the full and faithful performance of each Tenant's obligations under this Lease (the "Security Deposit"). Subject to the last sentence of this Section, the Security Deposit shall be understood and every covenant and agreement agreed to be performed the property of Landlord upon Landlord's receipt thereof, and may be utilized by Landlord in its discretion towards the payment of all prepaid expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including, without limitation, brokerage commissions and Tenant Improvement costs. Upon any default by Tenant after expiration of the applicable cure period, including specifically Tenant's failure to pay rent or to abide by its obligations under Sections 7.1 and 15.3 below, whether or not Landlord shall have is informed of or has knowledge of the rightdefault, but not the obligation, to apply the Security Deposit in whole shall be deemed to be automatically and immediately applied, without waiver of any rights Landlord may have under this Lease or at law or in part equity as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance a result of the covenants default, as a setoff for full or agreements contained hereinpartial compensation for that default. Landlord's right to possession of the Property for non-payment of rent or If any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application portion of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated applied after a default by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said noticeTenant, Tenant shall at once pay to within fifteen (15) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit in fullto its original amount. Upon termination of Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. If Tenant fully performs its obligations under this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant (or, at Landlord's option, to the last assignee of Tenant's interest in this Lease) within fifteen (15) days after the expiration of the Term, provided that Landlord may retain the Security Deposit to the extent and until such time as all amounts then due from Tenant in accordance with applicable lawthis Lease have been determined and paid in full. In The obligation of Landlord to return the event of a sale, lease, or other transfer unapplied balance of the Building, Landlord may transfer or assign said Security Deposit to Tenant in accordance with the terms of this Lease shall be personal to Landlord and shall survive as an obligation of Landlord notwithstanding any transfer of Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to interest in this Lease unless and until such time as Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for has complied with the return provisions of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer Section 1950.7 of the Building. The Security Deposit shall not be deemed California Civil Code or construed as advance payment of rent for any month of the lease termsuccessor statute thereto.

Security Deposit. (a) Simultaneously with the execution of this Lease by Tenant, Tenant has deposited shall deliver to Landlord a security deposit in an amount equal to Eighty Thousand and 00/100 Dollars ($80,000.00), in the form of an irrevocable and unconditional letter of credit, in accordance with Landlord the requirements more fully set forth in subsection 3.1(b), below (the “Security Deposit”). The Security Deposit in the amount set forth above shall constitute security for payment of Base Rent and additional rent and for the performance of each any and every covenant all other covenants, agreements and agreement to be performed by obligations of Tenant under this Lease. Landlord shall have the rightIf Tenant defaults with respect to any covenant or condition of this Lease, including but not the obligation, limited to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of Base Rent, additional rent or any other reason shall not be affected by payment due under this Lease, and the fact that obligation of Tenant to maintain the Premises and deliver possession thereof back to Landlord holds security. at the expiration or earlier termination of the Lease Term in the condition required herein, then Landlord may (without any waiver of Tenant's liability is not limited ’s default being deemed to have occurred) draw upon such letter of credit and apply all or any part of the proceeds thereof to the payment of any sum in default, or any other sum which Landlord may be required or deem necessary to spend or incur by reason of Tenant’s default, or to satisfy in part or in whole any damages suffered by Landlord as a result of Tenant’s default. In the event of such application, Tenant shall promptly deposit with Landlord (either in cash or in the form of an additional letter of credit) the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of necessary to restore the Security Deposit to the full amount set forth above. The parties expressly acknowledge and agree that the Security Deposit is not an advance payment of Base Rent or additional rent, nor a measure of Landlord’s damages in the event of any part thereof default by Tenant. If Tenant shall have fully complied with all of the covenants and conditions of this Lease, but not otherwise, the Security Deposit then held by Landlord shall be released to Tenant within thirty (30) days of said application. If after the application is on account of maintenance, repairs expiration or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon sooner termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), . If Landlord transfers the Security Deposit to any transferee of the Building or any portion thereof remaining unapplied Landlord’s interest therein, then such transferee shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely liable for the return of said the Security Deposit. The provisions hereof , and Landlord shall apply to each and every sale, lease or other transfer of be released from all liability for the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termreturn thereof.

Security Deposit. Tenant has deposited Within five (5) business days after the date on which this Lease is executed by Lessee and Lessor, Lessee shall deposit with Landlord the Lessor a Security Deposit equal to twelve (12) months of Base Rent estimated in the amount set forth above of Twenty Five Million Seven Hundred Forty Thousand Dollars and no Cents ($25,740,000.00) in the form of cash or an unconditional, irrevocable standby letter of credit, with Lessor as beneficiary and providing for the performance payment on presentation of each Lessor's drafts on sight without documents and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit drawable in whole or in part as payment on a money center bank in San Francisco approved by Lessor and otherwise in a form acceptable to Lessor, all in its sole discretion, with a term of such amounts as are reasonably necessary to remedy Tenant's defaults in at least twelve (12) months and with a term during the payment of rent or in the performance last year of the covenants or agreements contained hereinLease Term which includes at least one full month following the Expiration Date (the "Security Deposit"). Landlord's right to possession The Security Deposit shall be held by Lessor as security for the faithful performance by Lessee of all of the Property for non-payment terms, covenants, and conditions of rent or this Lease applicable to Lessee. If Lessee defaults with respect to any other reason provision of this Lease, including but not limited to, the provisions relating to the construction of Tenant Improvements and the condition of the Premises upon Lease Termination, Lessor may (but shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application required to) use, apply or retain all or any part of the Security Deposit for the payment of any amount which Lessor may spend by reason of Lessee's default or to compensate Lessor for any loss or damage which Lessor may suffer by reason of Lessee's default and if all or any part thereof of the Security Deposit is in the form a of a letter of credit, Lessor may draw on all or any part of same and thereafter retain any unapplied portion as a cash Security Deposit. If any portion of the Security Deposit is so used or applied, Lessee Shall, within thirty ten (3010) days of said application. If the application is on account of maintenanceafter written demand therefor, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord deposit cash with Lessor in an amount sufficient to restore the Security Deposit in fullto its original amount. Upon termination Lessee's failure to do so shall be a material default and breach of this Lease, full payment Lease by Lessee. The rights of all amounts due Lessor pursuant to this Section 4.06. are in addition to any rights which Lessor may have pursuant to Article XII below. If Lessee fully and performance faithfully performs every provision of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15)this Lease to be performed by it, the Security Deposit or any portion balance thereof remaining unapplied shall be returned (without interest) to Tenant Lessee (or, at Lessor's option, to the last assignee of Lessee's interests hereunder) at Lease expiration or termination and after Lessee has vacated the Premises. Lessor shall not be required to keep the Security Deposit separate from Lessor's general funds or be deemed a trustee of same. If the Security Deposit is in accordance with applicable law. In whole or in part in the event form of a saleLetter of Credit, lease, or other transfer failure of Lessee to deliver a replacement Letter of Credit to Lessor at least forty-five (45) business days prior to the Building, Landlord may transfer or assign said Security Deposit expiration date of any current Letter of Credit shall constitute a separate default entitling Lessor to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for draw down immediately and entirely on the return current Letter of said Credit and the proceeds shall constitute a cash Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer amount of the Building. The Security Deposit shall not be deemed or construed as advance payment reduced to a cash amount equal to three months of rent Base Rent at the rate scheduled for any month the final year of the lease terminitial Lease Term, in cash, upon Lessee's achievement of four (4) consecutive calendar quarters of an annualized run rate of $750,000,000.00 in revenue and $100,000,000.00 in net income.

Security Deposit. (a) In addition to the security deposit currently held by Landlord under the Lease, concurrently with execution and delivery of this Amendment, Tenant has deposited with shall deliver to Landlord a letter of credit (the Security Deposit "Second Additional Letter of Credit") in the amount set forth above of $450,000 for the benefit of Landlord, issued by a major banking institution, and in form and substance reasonably acceptable to Landlord. The Second Additional Letter of Credit shall be held by Landlord as security for the faithful performance by Tenant of each and every covenant and agreement all of the provisions of the Lease to be performed by Tenant. If Tenant fails to pay rent or other sums due hereunder, or otherwise defaults with respect to any provision of the Lease, Landlord may draw on the Second Additional Letter of Credit and use, apply or retain all or any portion of the proceeds thereof for the payment of any rent or other sum in default or for the payment of any other sum to which Landlord may become obligated by reason of Tenant's default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby. If Landlord so uses or applies all or any portion of the proceeds of the Second Additional Letter of Credit, Tenant shall within ten (10) days after demand therefor either deposit with Landlord a substitute Second Additional Letter of Credit in the amount of the Second Additional Letter of Credit prior to such draw by Landlord hereunder, or deposit with Landlord as a security deposit cash equal to the amount drawn by Landlord under this the Second Additional Letter of Credit, and Tenant's failure to do so shall be a material breach of the Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited required to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, leaseinterest on, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee keep any cash deposited by written undertaking addressed to Landlord assumes all Landlord's obligations Tenant hereunder, Tenant agrees to look to such granteeor drawn by Landlord under the Second Additional Letter of Credit, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termseparate from its general accounts.

Security Deposit. Tenant has deposited with Landlord the Security Deposit in the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination execution of this Lease, full payment Tenant shall provide the following amount to Landlord, to be held as a security deposit for the reasonable cleaning or repair of damages to the Property upon the expiration or termination of this lease or in case of default by Tenant: $________ (________ dollars). The security deposit shall not be in excess of two months' Rent, unless the Rent exceeds $2,000 per month. The security deposit will be held at the following financial institution: ________________________________ Tenant hereby agrees to be liable to Landlord at the expiration or termination of this Lease for all amounts damages to the Property, except ordinary wear and tear. Landlord may hold the security deposit in a non-interest-bearing account. In such case, no interest is due to Tenant and performance Tenant may not use the security deposit to cover Rent. Landlord may otherwise elect to hold security deposit in an interest-bearing account and allow Tenant to receive certain interest funds, if applicable. Tenant shall still not be permitted to use the security deposit to cover any Rent. In case of all sale or assignation of the Lease by Landlord, Tenant's covenants security deposit shall be transferred to the new owner or assignee and agreements (including surrender Landlord shall be released from liability to Tenant for return of the Property in accordance with Paragraph 15)security deposit. Deductions from the security deposit may be made for the following reasons (this list constitutes examples only and is not intended to be exhaustive): unpaid rent or utilities, late fees, cleaning, key replacement, removing abandoned property, and/or attorneys' fees for proceedings against Tenant. If Tenant has provided proper notice to terminate the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Buildingtenancy, Landlord may transfer or assign said Security Deposit shall have 14 (fourteen) days in which to Landlord's granteereturn the security deposit. Otherwise, lessee or assigneeLandlord shall have 30 (thirty) days. Provided said grantee, lessee or assignee by written undertaking addressed to If Landlord assumes all Landlord's obligations hereunderrequires deductions which exceed the security deposit, Tenant agrees to look pay Landlord any overage amount within ten days after receiving a written demand from Landlord. Landlord will first apply the security deposit to any non-rent obligations, such granteeas damages, lessee utilities, or assignee solely for late fees, and will then apply the return of said Security Deposit. The provisions hereof shall apply security deposit to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termunpaid rent.

Security Deposit. Tenant has deposited with will pay Landlord on the date this Lease is executed by Tenant the Security Deposit in the amount set forth above in Item 8 of the Basic Lease Provisions as security for the performance of each and every covenant and agreement to be performed the terms hereof by Tenant. Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that entitled to interest thereon and Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the may commingle such Security Deposit or with any part thereof within thirty (30) days other funds of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as considered an advance payment of rent rental or a measure of Landlord's damages in case of default by Tenant. If Tenant defaults with respect to any provision of this Lease, Landlord may, but shall not be required to, from time to time, without prejudice to any other remedy, use, apply or retain all or any part of this Security Deposit for the payment of any Rent or any other sum in default or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of Tenant's default or to compensate Landlord for any month other loss or damage which Landlord may suffer by reason of Tenant's default, including, without limitation, costs and attorneys' fees incurred by Landlord to recover possession of the lease term.Premises. If Tenant shall fully and faithfully perform every material provision of this Lease to be performed by it, the Security Deposit shall be returned to Tenant within thirty (30) days after the Expiration Date. Tenant agrees that it will not assign or encumber or attempt to assign or encumber the monies deposited herein as the Security Deposit and that Landlord and its successors and assigns shall not be bound by any such actual or attempted assignment or encumbrance. Regardless of any assignment of this Lease by Tenant, Landlord may return the Security Deposit to the original Tenant, in the absence of evidence satisfactory to Landlord of an assignment of the right to receive the Security Deposit or any part of the balance thereof. In the alternative to a cash Security Deposit, contemporaneously with the execution of this Lease, Tenant shall cause an American bank or financial institution located in Austin, Texas reasonably acceptable to Landlord to issue an irrevocable letter of credit in the amount of the Security Deposit set forth in Item 8 of the Basic Lease Provisions (the "Letter of Credit"), naming Landlord as beneficiary to partially secure the performance of Tenant under the Lease. The Letter of Credit shall be for a term of not less than twelve (12) months. If all or any portion of the Letter of Credit is drawn against by Landlord, Tenant shall within thirty (30) days after demand by Landlord, order the issuer of the Letter of Credit to issue to Landlord at Tenant's expense replacement or supplementary Letters of Credit such that at all times during the term of this Lease (other than such thirty (30) day period), Landlord shall have the ability to draw on one or more Letters of Credit totaling the Security Deposit amount set forth in Item 8 of the Basic Lease Provisions. Landlord shall be entitled to draw on the Letter of Credit one or more times for the reasons and uses provided above applicable to the Security Deposit. Any amount drawn by Landlord shall not be deemed to fix or determine the amounts to which Landlord is entitled under this Lease or otherwise, and Landlord shall be entitled to pursue any remedies provided for in this Lease to the extent Landlord is unable or elects, in its sole and absolute discretion, not to obtain complete or partial satisfaction by drawing upon the Letter of Credit. Tenant shall cause the issuance of a replacement Letter of Credit at least thirty (30) days prior to the expiration date of the then issued Letter of Credit (such date, the "Reissuance Date"). If Tenant fails to cause the issuance of a replacement Letter of Credit prior to the Reissuance Date, then Landlord shall have the right to draw the full amount of the then issued and outstanding Letter of Credit; provided that such drawing shall not be an Event of Default hereunder and Landlord shall hold such funds as security for the performance of Tenant's obligations under this Lease. Landlord shall refund such funds to Tenant upon the earlier to occur of (i) Tenant's delivery of a replacement Letter of Credit and (ii) sixty (60) days after the expiration of this Lease and satisfaction of Tenant's obligations hereunder. If the issuer of the Letter of Credit shall admit in writing its inability to pay its debts generally as they become due, shall file a petition in bankruptcy

Security Deposit. Prior to March 1, 2005, Tenant has deposited shall deposit with Landlord the sum of Seven Hundred Fifty One Thousand Eight Hundred Ninety Four and No/100 Dollars ($751,894.00) ("Security "Deposit"). Landlord shall not be deemed a trustee of the Security Deposit, may use the Security Deposit in business, and shall not be required to segregate it from its general accounts. Tenant shall not be entitled to interest on the amount set forth above for Security Deposit. If Tenant defaults with respect to any provisions of the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, including but not limited to the obligationprovisions relating to payment of Base Monthly Rent or other charges, Landlord may, after the expiration of all applicable notice and cure periods, to apply the Security Deposit in whole or in part as payment of such amounts as are extent reasonably necessary to remedy Tenant's defaults in the payment of rent default, use any or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application all of the Security Deposit towards payment of the following: (i) Base Monthly Rent or other charges in default; (ii) any part thereof within thirty (30) days other amount which Landlord may spend or become obligated to spend by reason of said applicationTenant's default including, but not limited to Tenant's failure to restore or clean the Premises following vacation thereof. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost any portion of the same, attaching estimates Security Deposit is so used or paid receipts. Upon receipt of said noticeapplied, Tenant shall at once pay to shall, within ten (10) business days after written demand from Landlord, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its full original amount, and shall pay to Landlord such other sums as necessary to reimburse Landlord for any sums paid by Landlord. If Tenant shall default more than three (3) times in full. Upon termination any twelve (12) month period, irrespective of this Leasewhether or not such default is cured, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), then the Security Deposit shall, within ten (10) days after demand by Landlord, be increased by Tenant to an amount equal to three (3) times the Base Monthly Rent. Tenant may not assign or any portion thereof remaining unapplied encumber the Security Deposit without the consent of Landlord. Any attempt to do so shall be void and shall not be binding on Landlord. The Security Deposit shall be returned to Tenant within thirty (30) days after the Expiration Date and surrender of the Premises to Landlord, less any amount deducted in accordance with applicable lawthis Section, together with Landlord's written notice itemizing the amounts and purposes for such deduction. In the event of a sale, lease, or other transfer termination of the BuildingLandlord's interest in this Lease, Landlord may transfer deliver or assign said credit the Security Deposit to Landlord's granteesuccessor in interest in the Premises and thereupon be relieved of further responsibility with respect to the Security Deposit provided such successor assumes, lessee or assignee. Provided said granteein writing, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look with respect to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof Landlord agrees that in lieu of a cash Security Deposit, Tenant may deposit a letter of credit ("Letter of Credit") substantially in the form attached hereto as Exhibit "B". Landlord shall apply be entitled to each and every sale, lease or other transfer draw against the Letter of Credit at any time provided only that Landlord certifies to the issuer of the BuildingLetter of Credit that Tenant is in default under the Lease. The Tenant shall keep the letter of credit in effect during the entire Lease Term, as the same may be extended, plus a period of four (4) weeks after expiration of the Lease Term. At least thirty (30) days prior to expiration of any Letter of Credit, the term thereof shall be renewed or extended for a period of at least one (1) year. Tenant's failure to so renew or extend the Letter of Credit shall be a material default of this Lease by Tenant. In the event Landlord draws against the Letter of Credit, Tenant shall replenish the existing Letter of Credit or cause a new Letter of Credit to be issued such that the aggregate amount of letters of credit available to Landlord at all times during the Lease Term is the amount of the Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termoriginally required.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant has deposited with shall pay to Landlord the amount of Security Deposit specified in Section 1.11, which shall be held by Landlord to secure the amount set forth above payment by Tenant of any and all present and future debts and liabilities of Tenant to Landlord and for the Tenant’s performance of each and every covenant and agreement to be performed by Tenant its obligations under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application No portion of the Security Deposit shall be considered an advance by Tenant of the last month’s rent. If Tenant defaults with respect to any provision of this Lease, including, without limitation, the provisions relating to the payment of Rent, Landlord may, but shall not be required to, reasonably use, apply or retain all or any part thereof within thirty of the Security Deposit (30i) days for the payment of said applicationany Rent or any other sum in default, (ii) for the payment of any other amount which Landlord may spend or become obligated to spend by reason of such default by Tenant, and (iii) to compensate Landlord for any other loss or damage which Landlord may suffer by reason of such default by Tenant. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost any portion of the same, attaching estimates Security Deposit is so used or paid receipts. Upon receipt of said noticeapplied, Tenant shall at once pay to shall, upon demand therefor by Landlord, deposit with Landlord cash in an amount sufficient to restore the Security Deposit to the amount required to be maintained by Tenant hereunder. Landlord shall return to Tenant the remaining portion of the Security Deposit within thirty (30) days after the date that Landlord receives possession of the Premises, unless a determination of the amount Landlord is entitled to retain reasonably takes more than thirty days, in fullwhich case the remaining portion of the Security Deposit shall be returned to tenant within thirty days after such determination. Upon termination Landlord shall not be required to keep the Security Deposit separate from its general funds, and any interest paid thereon shall become funds of the Landlord, and shall not accrue to the benefit of Tenant. If Landlord conveys, assigns or otherwise disposes of its interest in this Lease, full payment of all amounts due Landlord shall deliver or credit the Security Deposit to its successor, and performance of all Tenant's covenants shall give Tenant notice thereof as required by California Civil Code Section 1950.7 or any successor statute, and agreements (including surrender Landlord thereafter shall have no further liability for the return of the Property Security Deposit. So long as Tenant is not then in accordance with Paragraph 15default under this Lease (beyond any applicable notice and cure period), and has paid rent not later than five (5) days after the Due Date for each of the preceding twelve calendar months, as of the first anniversary, second anniversary and third anniversary of the Commencement Date, the Security Deposit or any portion thereof remaining unapplied shall be reduced by $32,932.50 (for a total reduction of $98,797.50), and the reduced amount held by Landlord shall be promptly returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termTenant.

Security Deposit. Tenant has deposited with Landlord hereby acknowledges receipt from tenant the Security Deposit in the amount set forth above sum of , to be held as security for the faithful performance by the Tenant of each the covenants, conditions, rules and every covenant regulations contained herein. The security deposit shall be placed by the Landlord in an interest-bearing account with High Country Bank of Xxxxx, Xxxxx Xxxxxxxx 00000, and agreement any interest thereon shall be the property of the Landlord. The Security Deposit, or any portion thereof, may be withheld for unpaid rent, cleaning charges, damages due to breach of this Lease or for damage by Tenant or the Tenant’s agents, employees, guests or invitees in excess of ordinary wear and tear to the Premises, common areas and major appliances owned by the Landlord. It is understood and agreed, however, that irrespective of said Security Deposit, rent shall be paid when due, in accordance with the terms hereof. The Tenant shall have the right to be performed present when the Landlord, or the Landlord’s agent, inspects the Premises in order to determine if any damage was done to the Premises. In the event of sale or transfer of the Premises by Tenant under this Lease. Landlord, the Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenancetransfer, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In , the event of a sale, leaseSecurity Deposit to the vendee, or other transfer transferee, and Landlord shall be released by Tenant from all liability for the return of the Building, Landlord may transfer or assign said such Security Deposit and Tenant shall look to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely ’s transferee for the return of said Security Deposit. The provisions hereof It is agreed that this shall apply to each and every sale, lease transfer or other transfer assignment made of the BuildingSecurity Deposit to any such transferee. The Security Deposit shall not be deemed mortgaged, assigned or construed as advance payment encumbered by Tenant without the prior written consent of rent Landlord and any attempt to do so shall be void. Tenant fully understands that should he/she for any month reason decide not to take possession of the lease termPremises and/or break this lease, the Security Deposit remains the property of the Landlord and is not refundable. The tenant shall have the right to receive, by first class mail, delivered to the last known address of the Tenant, a written list of the charges against the Security Deposit claimed by the Landlord, within thirty (30) days after the termination of the tenancy and delivery of possession by Tenant. The Landlord shall be further obligated to return any unused portion of the Security Deposit, by first class mail, addressed to the Tenant’s last known address with thirty (30) days after the termination of the tenancy.

Security Deposit. Concurrently with Tenant's execution of this Lease, Tenant has deposited shall deposit with Landlord the sum of ONE HUNDRED NINETY THREE THOUSAND FOUR HUNDRED EIGHTY FOUR AND 80/100 Dollars ($ 193,484.80). Said sum shall be held by Landlord as a Security Deposit in the amount set forth above for the faithful performance by Tenant of each all of the terms, covenants, and every covenant and agreement conditions of this Lease to be kept and performed by Tenant under during the term hereof. If Tenant defaults with respect to any provision of this Lease. Landlord shall have the right, including, but not limited to, the obligation, provisions relating to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance and any of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason monetary sums due herewith, Landlord may (but shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit required to) use, apply or retain all or any part thereof of this Security Deposit for the payment of any other amount which Landlord may spend by reason of Tenant's default or to compensate Landlord for Initials: [ILLEGIBLE] any other loss or damage which Landlord may suffer by reason of Tenant's default. If any portion of said Deposit is so used or applied, Tenant shall, within thirty ten (3010) days of said application. If after written demand therefor, deposit cash with Landlord in the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in fullto its original amount. Upon termination Tenant's failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep this Security Deposit separate from its general funds, full payment and Tenant shall not be entitled to interest on such Deposit. If Tenant fully and faithfully performs every provision of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15)this Lease to be performed by it, the Security Deposit or any portion balance thereof remaining unapplied shall be returned to Tenant in accordance with applicable law(or at Landlord's option, to the last assignee of Tenant's interest hereunder) at the expiration of the Lease term and after Tenant has vacated the Premises. In the event of a sale, lease, or other transfer termination of the BuildingLandlord's interest in this Lease, Landlord may shall transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, successor in interest whereupon Tenant agrees to look to such grantee, lessee or assignee solely release Landlord from liability for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease such Deposit or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termaccounting therefor.

Security Deposit. Tenant has deposited shall, upon the execution of this Lease, deposit with Landlord as security for the Security Deposit in the amount set forth above for payment of rent and the performance of each and every covenant and agreement all other covenants to be performed by Tenant, the sum of zero ($0) dollars. Said security deposit shall be non-interest bearing. If Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent any monthly rental installment, or in fails to perform any other covenant within three (3) days after receipt of written demand therefor, Landlord, at its option, may apply sufficient sums from the performance security deposit towards payment thereof. If Landlord elects to so apply the security deposit, Tenant shall be obligated to immediately replenish the security deposit for the amount so applied by Landlord. The total security deposit shall be held by Landlord until expiration of the covenants initial term or agreements contained herein. Landlord's right to possession until expiration of any renewal term if any renewal option which exists is exercised, and the unused portion of the Property for non-payment security deposit shall be refunded by Landlord to Tenant at the end of rent the Term of this Lease or any other reason shall not be affected by renewal thereof. Provided, however, the fact that Landlord holds security. Tenant's liability is not limited to may hold the amount security deposit for a period of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including following surrender of the Property in accordance with Paragraph 15)possession of the Premises, and may deduct from the amount refunded any rental due and payable, the costs of repairing any damage or replacing any damaged portion of the Premises or of the Building or other real estate of which the Premises form a part and the costs of cleaning the same if the Tenant fails to do so prior to TENANT INITIALS /s/ JH 3 surrender of possession. Provided, however, said Security Deposit does not constitute a limitation of any kind to a claim by Landlord against Tenant for nonpayment of rentals or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable lawother sums under this Lease or for costs of repair, replacement and cleaning of the Premises as discussed herein. In the event of a sale, lease, or other transfer of proceedings begin it is agreed that the Building, Landlord may transfer or assign said Security Deposit held hereunder shall be deemed to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed be applied first to rent and other charges first due to Landlord assumes for all Landlord's obligations hereunder, Tenant agrees periods prior to look to the filing of any such grantee, lessee or assignee solely for the return of said Security Depositproceedings. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit security deposit shall not be deemed or construed as advance payment applied to rent except upon approval of rent for any month of the lease termLandlord.

Security Deposit. Tenant has deposited with Landlord Subtenant shall pay Sublandlord the sum of Thirteen Thousand Eight Hundred Thirteen and 04/100 Dollars ($13,813.04) at the time of the execution of the Sublease (“Security Deposit”) as security for Subtenant’s full and faithful performance of all covenants and conditions contained in the Sublease. Sublandlord shall have no obligation to maintain the Security Deposit in a separate account. If Subtenant defaults in respect of any of the terms, provisions, covenants and conditions of this Sublease, subject to applicable notice and cure periods, Sublandlord may use, apply, or retain the whole or any part of the Security Deposit for the payment of any Base Rent or other Rent (as defined herein) in default, or for any other sum which the Sublandlord may expend or be required to expend by reason of Subtenant’s default, including, without limitation, any damages or deficiency which shall have been incurred by Sublandlord before or after re-entry by Sublandlord. The Security Deposit may not be used or applied by Subtenant as a substitute for any Rent due, but may be so applied by Sublandlord at any time at Sublandlord’s sole option. The use, application or retention of the Security Deposit, or any portion thereof, by Sublandlord shall not prevent Sublandlord from exercising any other right or remedy provided by this Sublease or by law (it being intended that the Sublandlord shall not first be required to proceed against the Security Deposit) and shall not operate as a limitation on any recovery to which Sublandlord may otherwise be entitled. If any of the Security Deposit shall be so used, applied or retained by Sublandlord at any time or from time to time, Subtenant shall promptly, in each such instance, on written demand therefor by Sublandlord, pay the Sublandlord such additional sum in cash as may be necessary to restore the Security Deposit to the original amount set forth above for in the performance first sentence of each and every covenant and agreement to be performed by Tenant under this Leaseparagraph. Landlord To the extent such Security Deposit is not applied as set forth in this paragraph, Sublandlord shall have return the rightSecurity Deposit, but not the obligationor any balance thereof, to apply Subtenant after the later of thirty (30) days after: (a) the Expiration Date or earlier termination of the Term of this Sublease or (b) the date by which Subtenant has vacated the Premises in accordance with the terms hereof (“Outside Deposit Expiration Date”). Except as otherwise required by law, Subtenant shall not be entitled to any interest on the Security Deposit. In the event of a transfer of Sublandlord’s interest in the Prime Lease, Sublandlord shall transfer the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount transferee, whereupon Sublandlord shall be released from all liability for the return of the Security Deposit. Landlord shall give Tenant written notice Subtenant waives the provisions of California Civil Code Section 1950.7, and all other provisions of law now in force or that become in force after the date of execution of this Sublease, that restrict Sublandlord’s use or application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost that provide specific time periods for return of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.

Security Deposit. On the Date of Lease, Tenant has deposited with shall deliver to Landlord a security deposit ("Security Deposit") in an amount equal to One Million Dollars ($1,000,000), to be held in an interest bearing account requiring authorization by both Landlord and Tenant for withdrawal. On the Lease Commencement Date, the Security Deposit in plus all interest earned thereon shall be released to Landlord, and Tenant shall deliver to Landlord an amount sufficient to increase the Security Deposit to an amount set forth above equal to the Equity Funded Amount as of such date; provided that Tenant shall receive a credit for any interest earned on the Security Deposit prior to the Lease Commencement Date. The Security Deposit shall be held by Landlord as security solely for the performance payment of each Base Rent and every covenant and agreement to be performed Additional Rent by Tenant under pursuant to this Lease. Landlord shall have the right, but not the obligation, to apply One-fifth of the Security Deposit shall bear interest from the Lease Commencement Date at the rate of 6.75% per annum, simple interest, paid by Landlord to Tenant in whole or in part as payment cash on an annual basis on each anniversary of such amounts as are reasonably necessary the Lease Commencement Date; and the remainder of the Security Deposit shall not bear interest. If at any time during the Term any Base Rent shall be overdue, then Landlord may at its election (but shall not be required to) appropriate and apply any portion of the Security Deposit to remedy Tenant's defaults in the payment of rent or in any such overdue Base Rent; provided, however, that Landlord shall use the performance non-interest bearing portion of the covenants or agreements contained herein. Landlord's right to possession Security Deposit first, before appropriating any portion of the Property for non-payment of rent Security Deposit that shall bear interest pursuant hereto. Should the entire Security Deposit, or any other reason portion thereof, be appropriated and applied by Landlord as provided herein, then Tenant shall not be affected immediately, after receipt of written demand by Landlord, pay to Landlord a sufficient sum in cash to restore the fact that Landlord holds security. Tenant's liability is not limited Security Deposit to the amount original sum of the Security Deposit. Landlord shall give Tenant written notice have no obligation to segregate the Security Deposit from other funds. In the event that the Equity Funded Amount is reduced for any reason, including without limitation by reason of a sale of any portion of the Premises or the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event proceeds of a sale, lease, or other transfer of condemnation award to reduce the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.Equity Funded Amount (it being

Security Deposit. Tenant has deposited with Landlord the Security Deposit in the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination execution of this Lease, full payment Tenant shall provide the following amount to Landlord, to be held as a security deposit for the reasonable cleaning or repair of damages to the Property upon the expiration or termination of this lease or in case of default by Tenant: $________ (________ dollars). The security deposit will be held at the following financial institution: ________________________________ Tenant hereby agrees to be liable to Landlord at the expiration or termination of this Lease for all amounts damages to the Property, except ordinary wear and tear. Landlord may hold the security deposit in a non-interest-bearing account. In such case, no interest is due to Tenant and performance Tenant may not use the security deposit to cover Rent. Landlord may otherwise elect to hold security deposit in an interest-bearing account and allow Tenant to receive certain interest funds, if applicable. Tenant shall still not be permitted to use the security deposit to cover any Rent. In case of all sale or assignation of the Lease by Landlord, Tenant's covenants security deposit shall be transferred to the new owner or assignee and agreements (including surrender Landlord shall be released from liability to Tenant for return of the security deposit. Deductions from the security deposit may be made for the following reasons (this list constitutes examples only and is not intended to be exhaustive): unpaid rent or utilities, late fees, cleaning, key replacement, removing abandoned property, and/or attorneys' fees for proceedings against Tenant. Landlord shall return the security deposit within 30 (thirty) days after the Tenant has moved out, so long as Tenant has delivered proper written notice of Tenant's intention to surrender the Property in accordance with Paragraph 15), at the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer end of the Building, Lease term. If Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunderrequires deductions which exceed the security deposit, Tenant agrees to look pay Landlord any overage amount within ten days after receiving a written demand from Landlord. Landlord will first apply the security deposit to any non-rent obligations, such granteeas damages, lessee utilities, or assignee solely for late fees, and will then apply the return of said Security Deposit. The provisions hereof shall apply security deposit to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termunpaid rent.

Security Deposit. Section 30.1 Tenant has deposited with Landlord the Security Deposit in the amount set forth above sum of Five Hundred Thousand and 00/100 Dollars ($500,000.00) as security for the full and faithful performance of each and every covenant and agreement to be performed by all of the obligations of Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole Lease (all or in any part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in amount, the payment “Security Deposit”). If an Event of rent Default shall occur under this Lease, Landlord may use, apply or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent retain all or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application part of the Security Deposit for the payment of any Fixed or Additional Rent or any part thereof other sum in default or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of such Event of Default, or to compensate Landlord for any other loss, cost or damage which Landlord may suffer by reason of such Event of Default. Tenant shall, within thirty five (305) days Business Days after notice from Landlord, deposit with Landlord cash or a letter of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord credit in an amount sufficient to restore the Security Deposit in fullto the amount then required pursuant to the terms of this Article 30. Upon termination Tenant’s obligation to make such payment shall be deemed a requirement that Tenant pay an item of Additional Rent, and Tenant’s failure to do so shall be a breach of this Lease. Landlord shall not, full payment unless otherwise required under applicable Law, pay interest to Tenant on the Security Deposit, and if Landlord is required to maintain the Security Deposit in an interest bearing account, Landlord will retain the maximum amount permitted under applicable Laws as a bookkeeping and administrative charge. Tenant shall not assign or encumber any part of the Security Deposit, and no assignment or encumbrance by Tenant of all amounts due and performance of all Tenant's covenants and agreements (including surrender any part of the Property Security Deposit shall be binding upon Landlord, whether made prior to, during, or after the Term. Landlord shall not be required to exhaust its remedies against Tenant or against the Security Deposit before having recourse to any other form of security held by Landlord, and recourse by Landlord to any portion of the Security Deposit shall not affect any remedies of Landlord provided in accordance with Paragraph 15)this Lease or available to Landlord under applicable Laws. So long as no Event of Default shall then have occurred and be continuing, the Security Deposit or any portion balance thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In reasonably promptly after the event of expiration or sooner termination (other than a sale, lease, or other transfer termination pursuant to Article 16) of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed Term and Tenant’s surrender to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termPremises.

Security Deposit. Tenant has deposited with Upon the later of execution of this Amendment and Landlord's receipt of Tenant's deposit in the amount of $150,000.00 (the "Security Deposit"), Landlord agrees to waive the requirement of a letter of credit as security for Tenant's obligations under the Lease. Landlord may apply all or part of the Security Deposit in to any unpaid Rent or to cure any other defaults of Tenant. If Landlord uses any part of the amount set forth above for the performance of each and every covenant and agreement to be performed by Security Deposit, Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply restore the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. its original amount within 1O business days after Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds securitywritten request. Tenant's liability is not limited failure to do so shall be a default under the Lease and the overdue amount shall accrue interest as any delinquent payment. If twice within any 12 month period, late charges are assessed against Tenant by Landlord, Landlord may, by written notice to Tenant, require Tenant to pay Landlord an amount equal to two months Base Rent as an increase in the Security Deposit, due within 5 business days after Tenant's receipt of the notice. If Landlord transfers its interest in the Premises, Landlord shall transfer the Security Deposit to its successor in interest, and notify Tenant in writing of such transfer, including the date of the transfer, the amount transferred, and the name and address of the transferee, whereupon Landlord shall be automatically released from any liability for the return of the Security Deposit. Landlord shall give Tenant written notice If, at the end of the application of Term, Tenant has fully complied with all obligations under the Lease, then the remaining Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant after Landlord has verified that Tenant has fully vacated the Premises, removed all of its property and surrendered the Premises in accordance with applicable law. In the event of condition required; provided that Landlord may hold back a sale, lease, or other transfer reasonable portion of the Building, Landlord may transfer or assign said Security Deposit until final determination of Tenant's Share of Common Expenses due hereunder, which shall be made no later than 6 months following the expiration of the Term or earlier termination of the Lease, whereupon any final adjustment shall be made and any remaining Security Deposit shall be returned to Landlord's grantee, lessee or assigneeTenant. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunderwith respect to the Security Deposit are those of a debtor and not of a trustee, and Landlord can commingle the Security Deposit with Landlord's general funds and no interest shall be paid to Tenant agrees to look to such grantee, lessee or assignee solely for on the return of said Security Deposit. The provisions hereof shall apply If the Premises is further increased in size due to each and every saleany option Tenant exercises or otherwise, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment increased to an amount to be determined by Landlord at the time of rent for any month of the lease termexpansion.

Security Deposit. Upon the execution of this Lease, Tenant has deposited shall deposit with Landlord a Letter of Credit as described in this Section (the Security Deposit in the amount set forth above “Letter of Credit”), as security for the punctual performance of each and every covenant and agreement to be performed by obligation of Tenant under this Lease. Landlord In no event shall have the right, but not the obligation, to apply the Security Deposit be deemed to be a prepayment of Rent nor shall it be considered a measure of liquidated damages. The Letter of Credit shall be an irrevocable standby letter of credit, in whole form and content and issued by a commercial bank satisfactory to Landlord in its reasonable discretion, which Letter of Credit shall provide that it may be drawn upon in Boston, Massachusetts or by facsimile (i) in part or in part as payment whole, upon the presentation of such amounts as are reasonably necessary a sight draft accompanied by a certificate signed by a representative of Landlord, setting forth the amount due to remedy Tenant's defaults in the payment of rent or in the performance Landlord by reason of the covenants occurrence of an Event of Default by Tenant hereunder, or agreements contained herein. (ii) in whole, upon the presentation of a sight draft accompanied by a certificate signed by a representative of Landlord's right to possession , stating that (a) such Letter of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof Credit will expire within thirty (30) days of said applicationsuch certificate, and (b) Tenant has not deposited a substitute Letter of Credit in the form, amount and issued by a bank as required by this Section. Landlord agrees that for purposes of this Section, First Republic Bank shall be an acceptable issuer of the Letter of Credit. Any payment drawn by Landlord under the Letter of Credit pursuant to clause (ii) of the preceding sentence shall be held by Landlord as a cash Security Deposit (“Cash Security”) pursuant to the provisions of this Article. Landlord may commingle any Cash Security with Landlord’s other funds, and no interest shall be due thereon. The Letter of Credit shall remain in full force and effect for a period of at least sixty (60) days beyond the expiration of the Term. Tenant shall deposit the original Letter of Credit with Landlord and shall keep the Letter of Credit in full force and in compliance with the provisions of this Lease throughout the Term. If required by the application is terms of any mortgage, pledge, security agreement or other encumbrance granted on account the Unit or Landlord’s interest therein to secure financing provided to Landlord, Landlord may assign the Letter of maintenanceCredit to the holder of such mortgage, repairs pledge, security agreement or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receiptsother encumbrance. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore may apply the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender towards any default by Tenant which continues beyond the expiration of the Property applicable notice and cure period provided therefor in accordance with Paragraph 15this Lease (if any), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable lawand damages sustained by Landlord as a result thereof. In the event that Landlord so draws upon and applies all or any portion of the proceeds of the Letter of Credit, or so applies all or any portion of the Cash Security, Tenant shall pay to Landlord, as Additional Rent, the amount so expended by Landlord (or shall deliver an amendment to the Letter of Credit increasing the amount of the Letter of Credit by the amount so drawn by Landlord) within five (5) Business Days of written notice given by Landlord so that at all times (subject to the 5-Business Day grace period herein referenced) Landlord shall be entitled to draw down upon the full aggregate amount of the Letter of Credit or hold the full Cash Security, or some combination thereof (in an amount not to exceed the amount of the Security Deposit specified in Article 1 above, as such amount may be reduced in accordance with the provisions of the last two grammatical paragraphs of this Article 14). Notwithstanding anything contained in this Lease to the contrary, any failure of Tenant to restore any amount drawn under the Letter of Credit or expended from the Cash Security within the time and manner specified in this Section shall immediately constitute an Event of Default hereunder (without the necessity of any additional notice or the passage of any additional time) and entitle Landlord to immediately draw down the Letter of Credit then in force or effect and Landlord shall retain such cash amounts as a Security Deposit pursuant to the provisions of this Section. Tenant shall be solely responsible for the payment of all costs associated with obtaining, replacing (as necessary), transferring, extending and maintaining the Letter of Credit in accordance with the terms of this Section. The application of all or any part of the Security Deposit to any obligation or default of Tenant under this Lease shall not deprive Landlord of any other rights or remedies Landlord may have, nor shall such application by Landlord constitute a waiver by Landlord. In addition, in the event of a sale, leasetermination based upon an Event of Default of Tenant under this Lease, or a rejection of the Lease pursuant to the provisions of the Federal Bankruptcy Code, Landlord shall have the right to apply the Security Deposit (from time to time, if necessary) to cover up to the full amount of damages and other transfer amounts due from Tenant to Landlord under the Lease. Any amounts so applied shall, at Landlord’s election, be applied first to any unpaid Rent and other charges which were due prior to the filing of the petition for protection under the Federal Bankruptcy Code. Landlord shall assign the Security Deposit to any purchaser of the Unit, and thereafter Landlord shall have no further responsibility therefor. Upon request of Landlord or any such purchaser of the Building, Tenant shall, at its expense, cooperate with Landlord in obtaining an amendment to or replacement of any Letter of Credit which Landlord is then holding so that the amended or new Letter of Credit reflects the name of the new owner of the Unit. Within sixty (60) days after the expiration or earlier termination of the Term, Landlord shall inspect the Premises, make such draw upon the Letter of Credit or apply all or any portion of the Cash Security as may transfer be required to cure any default by Tenant hereunder or assign said to make payment on account of damages suffered by Landlord, and, if no default is then continuing, Landlord shall redeliver the original Letter of Credit (as may have previously been drawn on by Tenant) or pay the balance of the Cash Security, as the case may be, to Tenant. Notwithstanding the foregoing, provided that (1) this Lease is in full force and effect as of the last day of the third (3rd) Lease Year (the “Reduction Date”), (2) no Event of Default on the part of Tenant has occurred prior to the Reduction Date which is continuing as of the Reduction Date, (3) as of the Reduction Date Tenant has not assigned the Lease or effected a Transfer of an ownership interest (direct or indirect) in Tenant which effects a change in control of Tenant) other than (A) a Related Party Transfer, or (B) as approved by Landlord pursuant to the provisions of Article 12 hereof, and (4) as of the Reduction Date (x) if Tenant is then a publicly-traded company, Tenant has a market capitalization of not less than Five Hundred Million ($500,000,000.00) Dollars, or (y) if Tenant is not then a publicly-traded company, Tenant has an enterprise value of not less than Seven Hundred Fifty Million ($750,000,000.00) Dollars, Landlord agrees to accept a reduction in the amount of the Letter of Credit which it is then holding so as to cause the total Security Deposit to Landlord's grantee, lessee or assigneebe reduced as of the Reduction Date to an amount equal to Six Hundred Eighteen Thousand Three Hundred Thirty-Two ($618,332.00) Dollars. Provided said grantee, lessee or assignee Any reduction in the Letter of Credit held by written undertaking addressed Landlord as the Security Deposit pursuant to the immediately preceding paragraph shall be accomplished by Tenant providing Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely with a substitute Letter of Credit in the reduced amount in exchange for the return existing Letter of said Security DepositCredit which Landlord is then holding, or by an amendment to the existing Letter of Credit then held by Landlord, in form and substance reasonably acceptable to Landlord, which is accepted by Landlord in writing (which acceptance may be evidenced by e-mail). The provisions hereof shall apply to each and every sale, lease or other transfer If Tenant does not satisfy the requirements for a reduction in the amount of the Building. The Security Deposit Letter of Credit on the Reduction Date as specified above, then Tenant shall not be deemed or construed as advance payment of rent for to have irrevocably forfeited its right to any month reduction in the amount of the lease termLetter of Credit during the Term.

Security Deposit. Upon Tenant’s execution of this Lease, Tenant has deposited with shall deliver to Landlord the first Thirty-two Thousand One Hundred No/100 ($32,100.00) installment and on December 1, 2002 the second Thirty-two Thousand One Hundred No/100 ($32,100.00) installment (both installments as per Schedule N), as a Security Deposit in the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant of its obligations under this Lease. If Tenant is in default, Landlord shall have the rightmay, but not without obligation to do so, use the obligationSecurity Deposit, or any portion thereof, to apply cure the default or to compensate Landlord for all damages to the Premises sustained by Landlord resulting from Tenant’s default. Tenant shall, immediately on demand, pay to Landlord a sum equal to the portion of the Security Deposit so applied or used so as to replenish the amount of the Security Deposit held to increase such deposit to the amount initially deposited with Landlord. As soon as practicable after the termination of this Lease (but in whole or in part as payment of no event later than sixty (60) days after such termination). Landlord shall return the Security Deposit to Tenant, less such amounts as are reasonably necessary necessary, to remedy Tenant's defaults in ’s default(s) hereunder (if any), or to otherwise restore the payment of rent or in the performance of the covenants or agreements contained hereinPremises to a clean and safe condition, reasonable wear and tear excepted. Landlord's right to possession of the Property for non-payment of rent or any other reason Landlord shall not be affected required to keep the Security Deposit separate from other funds, and, unless otherwise required by the fact that Landlord holds securitylaw. Tenant's liability is Tenant shall not limited be entitled to the amount of interest on the Security Deposit. Landlord In no event or circumstance shall give Tenant written notice of have the application right to any use of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenanceand, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said noticespecifically, Tenant shall at once pay to Landlord an amount sufficient to restore may not use the Security Deposit in full. Upon termination of this Leaseas a credit or to otherwise offset any payments required hereunder, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15)including, the Security Deposit but not limited to, Rent or any portion thereof remaining unapplied thereof. Without any written notice, Landlord shall be returned refund the first Security Deposit ($32,100.00) to Tenant on December 1, 2003 and second Security Deposit ($32,100.00) to Tenant at expiration of Lease, if Tenant is not then in accordance with applicable law. In the event of a sale, lease, or other transfer default under any material terms of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes Lease and beyond all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each applicable notice and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termperiods.

Security Deposit. Upon execution of this Lease, Tenant has deposited shall deposit with Landlord the Security Deposit. The Security Deposit in the amount set forth above shall be held by Landlord as security for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and faithful performance of all the terms of this Lease to be observed and performed by Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed mortgaged, assigned, transferred or construed encumbered by Tenant and any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. Tenant shall cause the Security Deposit to be maintained throughout the term in the amount set forth in Section 1.1. If the Annual Fixed Rent or Additional Rent payable hereunder shall be overdue and unpaid or should Landlord make any payment on behalf of the Tenant, or Tenant shall fail to perform any of the terms of this Lease, then Landlord may, at its option and without notice or prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply the entire Security Deposit or so much thereof as advance may be necessary to compensate Landlord toward the payment of rent for Annual Fixed Rent, Additional Rent or other sums or loss or damage sustained by Landlord due to such breach by Tenant; and Tenant shall forthwith upon demand restore the Security Deposit to the amount stated in Section 1.1. Notwithstanding the foregoing, upon the application by Landlord of all or any month portion of the lease termSecurity Deposit (with or without notice thereof to Tenant) to compensate Landlord for a failure by Tenant to pay any Annual Fixed Rent or Additional Rent when due or to perform any other obligation hereunder, and until Tenant shall have restored the Security Deposit to the amount required by Section 1.1, Tenant shall be deemed to be in default in the payment of Additional Rent for purposes of Section 8.1(i) hereof. So long as Tenant shall not be in default of its obligations under this Lease, Landlord shall return the Security Deposit, or so much thereof as shall have not theretofore been applied in accordance with the terms of this Section 4.7, to Tenant promptly following the expiration or earlier termination of the term of this Lease and the surrender of possession of the Premises by Tenant to Landlord in accordance with the terms of this Lease. While Landlord holds the Security Deposit, Landlord shall have no obligation to pay interest on the same and shall have the right to commingle the same with Landlord’s other funds. If Landlord conveys Landlord’s interest under this Lease, the Security Deposit, or any part thereof not previously applied, shall be turned over by Landlord to Landlord’s grantee, and Tenant shall look solely to such grantee for proper application of the Security Deposit in accordance with the terms of this Section 4.7 and the return thereof in accordance herewith. The holder of a mortgage on the Property shall not be responsible to Tenant for the return or application of the Security Deposit, whether or not it succeeds to the position of Landlord hereunder, unless such holder actually receives the Security Deposit.

Security Deposit. Concurrently with its execution of this Lease, Tenant has deposited shall deposit with Landlord the Security Deposit in the amount sum set forth above in Item 10 of the Basic Lease Provisions (“Security Deposit”) as security for the full and faithful performance of each and every covenant and agreement to be performed by Tenant of its obligations under this Lease. Landlord shall have the right, but not the obligation, to apply the The Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount an advance payment or prepayment of the Security DepositRent or a measure or limit of Landlord’s damages upon a default or an Event of Default. Landlord shall give Tenant written notice of the Any such application of the Security Deposit is not and shall never be dependent upon an Event of Default. Without waiver of any rights Landlord may have under this Lease or at law or in equity, Landlord may from time to time apply all or a portion of the Security Deposit as is necessary for the following purposes: (i) to remedy any part thereof within thirty Event of Default by Tenant in the payment of Rent, (30ii) days to repair damage to the Premises caused by Tenant, (iii) to clean the Premises upon the expiration or sooner termination of said application. If this Lease, and/or (iv) to the application is payment of any other amount which Landlord may spend or become obligated to spend by reason of an Event of Default and/or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of an Event of Default, to the fullest extent permitted by law (including, without limitation, on account of maintenancedamages owing to Landlord under Section 15.3 below), repairs or replacements necessitated by tenantand, said notice shall include in this regard, Tenant hereby expressly waives any restriction on the estimated or actual cost uses to which the Security Deposit may be put contained in Section 1950.7 of the same, attaching estimates California Civil Code and any present or paid receiptsfuture laws otherwise governing the uses to which the Security Deposit may be put. Upon receipt If any portion of said noticethe Security Deposit is so applied, Tenant shall at once pay to shall, within ten (10) business days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit in fullto its original amount. Upon 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 the Security Deposit. The unused portion of the Security Deposit, if any, shall be returned to Tenant within thirty (30) days of the expiration of this Lease or any sooner termination of this Lease, full payment of so long as Tenant has vacated the Premises in the manner required by this Lease and paid all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15)sums required to be paid under this Lease, provided however that Landlord may retain the Security Deposit until such time as any amounts of Additional Rent due from Tenant have been determined and paid in full (and Tenant hereby expressly waives the provisions of Section 1950.7 of the California Civil Code and any present or future laws otherwise governing the return of the Security Deposit to Tenant to the extent of reasonably anticipated Additional Rent retained by Landlord pursuant to this sentence). If this Lease is terminated following an Event of Default, any unapplied portion thereof of the Security Deposit may be held by Landlord and applied against future rent damages (and, the unapplied portion of the Security Deposit, if any, remaining unapplied following such application shall be returned to Tenant within fifteen (15) days after final determination of all damages due Landlord, and, in accordance with applicable law. In this respect, the event provisions of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee California Civil Code Section 1950.7 are hereby expressly waived by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termTenant).

Security Deposit. If, in Section 1.2 hereof, a security deposit is specified, Tenant has deposited with agrees that the same will be paid upon execution and delivery of this Lease, and that Landlord shall hold the Security Deposit in same throughout the amount set forth above Term of this Lease as security for the performance of each and every covenant and agreement to be performed by Tenant under this Leaseof all obligations on the part of Tenant hereunder. Landlord shall have the right, but not the obligationright from time to time without prejudice to any other remedy Landlord may have on account thereof, to apply the Security Deposit in whole such deposit, or in any part as payment thereof, to Landlord's damages arising from, or to cure, any Default of Tenant. If Landlord shall so apply any or all of such amounts deposit, Tenant shall immediately deposit with Landlord the amount so applied to be held as are reasonably necessary security hereunder. There then existing no Default of Tenant (nor any circumstance which, with the passage of time or the giving of notice, or both, would constitute a Default of Tenant), Landlord shall return the deposit, or so much thereof as shall have theretofore not been applied in accordance with the terms of this Section 14.17, to remedy Tenant's defaults in Tenant on the payment of rent expiration or in the performance earlier termination of the covenants or agreements contained herein. Landlord's right to Term of this Lease and surrender of possession of the Property for non-payment of rent or any other reason shall not be affected Premises by the fact that Tenant to Landlord at such time. While Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. such deposit, Landlord shall give Tenant written notice of have no obligation to pay interest on the application of same and shall have the Security Deposit right to commingle the same with Landlord's other funds. If Landlord conveys Landlord's interest under this Lease, the deposit, or any part thereof within thirty (30) days of said application. If the application is on account of maintenancenot previously applied, repairs or replacements necessitated may be turned over by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said granteeand, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunderif so turned over, Tenant agrees to look solely to such granteegrantee for proper application of the deposit in accordance with the terms of this Section 14.17, lessee or assignee solely and the return thereof in accordance herewith. The holder of a mortgage shall not be responsible to Tenant for the return or application of said Security Deposit. The provisions hereof any such deposit, whether or not it succeeds to the position of Landlord hereunder, unless such deposit shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termhave been received in hand by such holder.

Security Deposit. Tenant has deposited shall deposit with Landlord on the Security Deposit in date Tenant executes this Lease, the amount sum set forth above in Section 1.01(l) to be held by Landlord without interest as security for the performance of each and every covenant and agreement to be performed by Tenant of Tenant's covenants and obligations under this Lease. Landlord shall have the right, but it being expressly understood that such deposit may be commingled with Xxxxxxxx's other funds and is not the obligation, to apply the Security Deposit in whole or in part as an advance payment of rental or a measure of Landlord's damages in case of Default by Tenant. If the Premises are conveyed by Landlord, the security deposit or any balance thereof may be turned over to Landlord's grantee or assignee, and if the same is turned over, Tenant hereby releases Landlord from any and all liability with respect to the security deposit and its application and Tenant agrees to look solely to such amounts as are reasonably grantee or assignee for such application or return. Upon the occurrence of any event of Default by Tenant, Landlord may at its sole discretion, from time to time, without prejudice to any other remedy provided herein or provided by law, use such fund to the extent necessary to remedy Tenant's defaults in the payment make good any arrears of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or Rents and any other reason damage, injury, expense or liability caused to Landlord by such event of Default, and Tenant shall not be affected by pay to Landlord on demand the fact that Landlord holds securityamount so applied in order to restore the security deposit to its original amount. Tenant's liability If Xxxxxx is not limited then in Default hereunder, any remaining balance of such deposit shall be returned by Landlord to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination following expiration of this Lease, full payment Lease (subject to the provisions of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15Section 14.04 above), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.TENANT HEREBY EXPRESSLY WAIVES THE REQUIREMENTS AND APPLICABILITY OF SECTION

Security Deposit. 8.1. Prior to the Term Commencement Date, Tenant has deposited shall deposit with Landlord the Security Deposit in the amount sum set forth above in Section 2.6 (the “Security Deposit”), which sum shall be held by Landlord as security for the faithful performance by Tenant of each all of the terms, covenants and every covenant and agreement conditions of this Lease to be kept and performed by Tenant under during the Term of this Lease. Landlord In addition, Tenant shall, within five (5) days after any upward adjustment in the Basic Annual Rent pursuant to Section 6.2, deposit with Landlord, and the Security Deposit shall have be increased by, an amount equal to the rightincrease in the monthly rental installment of the Basic Annual Rent pursuant to Section 6.2. If Tenant defaults with respect to any provision of this Lease, including, but not the obligationlimited to, any provision relating to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason Rent, then Landlord may (but shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any part thereof other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within thirty ten (3010) days of said application. If the application is on account of maintenancefollowing demand therefor, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to deposit cash with Landlord in an amount sufficient to restore the Security Deposit in full. Upon termination to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the . Landlord shall not be required to keep this Security Deposit or any portion thereof remaining unapplied separate from its general fund, and Tenant shall not be returned entitled to Tenant in accordance with applicable law. In interest on the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof of this Article 8 shall apply to each and every salesurvive the expiration or earlier termination of this Lease. TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termAS THE SAME MAY BE AMENDED FROM TIME TO TIME, WHICH, AMONG OTHER THINGS, (a) ESTABLISH THE TIME FRAME BY WHICH LANDLORD MUST REFUND A SECURITY DEPOSIT UNDER A LEASE, AND/OR (b) PROVIDE THAT LANDLORD MAY CLAIM FROM THE SECURITY DEPOSIT ONLY THOSE SUMS REASONABLY NECESSARY TO REMEDY DEFAULTS IN THE PAYMENT OF RENT, TO REPAIR DAMAGE CAUSED BY TENANT OR TO CLEAN THE PREMISES.

Security Deposit. Tenant has deposited with Landlord A security deposit of $ is due and payable upon execution of this lease. Failure of Lessee to deliver said deposit at the Security Deposit aforesaid time will allow Lessor, at Lessor’s sole discretion, to cancel said lease upon notification of the same delivered to Lessee thereby rendering this lease agreement, null, void, and of no effect. Lessor shall refund said security deposit, less deductions for damages in excess of normal wear and tear and the Standard Deductions listed in paragraph 19 of this lease, within 30 days of Lessee’s vacating of the premises. Lessees shall be entitled to a full refund of this security deposit if they pay the amounts due under this Lease and if they return the Premises in the amount set forth above same condition as it was in when they received possession, except for ordinary wear and tear. Lessees acknowledge that no representations, written or verbal have been made by the performance of each Lessor or his Agent as to any repairs that will be made to the property prior to Lessees’ occupancy. Lessees further acknowledge that they have seen the Leased premises and every covenant and agreement accept it in its present condition. In order to be performed by Tenant under this Lease. Landlord shall have avoid disagreements regarding the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance condition of the covenants or agreements contained hereinPremises, Lessees should prepare inventory checklists of the items furnished, the condition of these furnishings and the condition of the entire Premises. Landlord's right Lessees shall prepare these checklists immediately upon obtaining possession and immediately prior to returning possession of the Property for non-payment Premises. Lessees shall furnish Lessor with a copy of rent or any other reason such checklists within seven (7) days of taking possession. Lessor shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof return Lessees’ security deposit, together with a statement itemizing deductions, if any, within thirty (30) days of said applicationLessees return of possession (including the keys); and Lessor’s receipt of Lessees’ forwarding address and phone number. If the application security deposit is on account of maintenanceinsufficient to compensate Lessor for the damages, repairs or replacements necessitated by tenant, said Lessor shall give written notice shall include the estimated or actual cost to Lessees of the same, attaching estimates or paid receiptsnature and amount of the deficiency. Upon Lessees shall pay the amount of the deficiency to Lessor within thirty (30) days of receipt of said such notice. Should Lessor, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender upon inspection of the Property in accordance with premises conducted pursuant to Paragraph 15)J, subparagraph j, discover damages to the Security Deposit or any portion thereof remaining unapplied premises that exceed normal wear and tear, Lessor shall have the option to demand an additional security deposit from Lessee not to exceed the original security deposit amount. Said additional security deposit shall be returned deposited with Lessor not less than 15 days subsequent to Tenant in accordance with applicable law. In the event Lessees receipt of a sale, lease, or other transfer notification of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termdemand.

Security Deposit. Tenant has deposited Lessee shall deposit with Landlord the Security Deposit in the amount set forth above Lessor upon execution hereof $1,343,00 as security for the Xxxxxx's faithful performance of each and every covenant and agreement Xxxxxx's obligations hereunder. If Lessee fails to be performed by Tenant under pay rent or other charges due hereunder, or otherwise defaults with respect to any provision of this Lease. Landlord shall have the right, but not the obligationLessor may use, to apply the Security Deposit in whole or in part as payment retain all or any portion of such amounts as are reasonably necessary to remedy Tenant's defaults in said deposit for the payment of any rent or other charge in default or for the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent any other sum to which Lessor may become obligated by reason of Xxxxxx's default, or to compensate Lessor for any loss or damage which Lessor may suffer thereby. If Lessor so uses or applies all or any other reason portion of said deposit, Lessee shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty ten (3010) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord after written demand therefor deposit cash with Lessor in an amount sufficient to restore said deposit to the Security Deposit in fullfull amount then required of Lessee. Upon termination If the monthly rent shall, from time to time, increase during the term of this Lease, full payment Lessee shall, at the time of all amounts due and performance of all Tenant's covenants and agreements (including surrender such increase, deposit with Lessor additional money as a security deposit so that the total amount of the Property security deposit held by Lessor shall at all times bear the same proportion to the then current Base Rent as the initial security deposit bears to the initial Base Rent set forth in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied paragraph 4. Lessor shall not be returned required to Tenant in accordance with applicable lawkeep said security deposit separate from its general accounts. In the event If Xxxxxx performs all of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all LandlordXxxxxx's obligations hereunder, Tenant agrees said deposit, or so much thereof as has not theretofore been applied by Lessor, shall be returned, without payment of interest or other increment for its use, to look Lessee (or, at Lessor's option, to such granteethe last assignee, lessee or assignee solely for if any, of Xxxxxx's interest hereunder) at the return expiration of the term hereof, and after Xxxxxx has vacated the Premises. No trust relationship is created herein between Xxxxxx and Xxxxxx with respect to said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.

Security Deposit. Tenant has deposited (a) Contemporaneously with the execution of this Lease, the sum of Seventy Five Thousand Dollars ($75,000.00) shall be delivered to Landlord the as a Security Deposit in (the amount set forth above “Security Deposit”) pursuant to this Lease, as security for the payment and performance of each and every covenant and agreement to be performed by Tenant of all Tenant’s obligations, covenants, conditions and agreements under this Lease. The Security Deposit may, at Tenant’s election, be posted either in cash, or in the form of a letter of credit (“Letter of Credit”) in accordance with the provisions of paragraph 10 (b) below. If the Security Deposit is in the form of cash, it shall bear interest at Crestar Bank’s passbook rate in effect as of the date of execution of this Lease, which interest shall be added to and shall become part of the Security Deposit, subject to disposition as provided herein. Upon the expiration of the Term hereof, or any extension or renewal thereof, Landlord shall, if Tenant is not in default, return such Security Deposit to Tenant, less such portion thereof as Landlord shall have appropriated as provided herein to make good any default by Tenant with respect to Tenant’s obligations within sixty (60) days after such expiration. If Tenant shall default in the performance of any of its obligations under this Lease, Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application portion of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenancereasonably required to remedy such default, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, in which event Tenant shall at once pay to promptly deposit with Landlord an the amount sufficient necessary to restore the Security Deposit to its original amount. In the case of a non-monetary default, Landlord may exercise such right only after providing Tenant with notice of default and opportunity to cure to the extent and in full. Upon termination the manner required under other provisions of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed liquidated damages, and Landlord’s application of said Security Deposit to reduce its damages shall not preclude recovery from Tenant of any additional damages incurred by Landlord. If the Landlord sells or construed as advance payment transfers its interest in the Building, Landlord shall transfer the Security Deposit, and, provided that Landlord has, in fact, done so, the Landlord shall be released from all liability to Tenant for the return of rent for any month of the lease termsuch Security Deposit.

Security Deposit. Tenant has deposited The LICENSEE, prior to the commencement of operations, shall deposit with Landlord COUNTY a security deposit approximately three (3) times the Security Deposit estimated monthly rent, fees and charges as determined by the Airport Director. Concurrently with each revision of the fees and charges pursuant to Section 3.01 in this LICENSE, the amount set forth above for security deposit to be provided by the LICENSEE shall be adjusted to approximately three (3) times the estimated monthly fees and charges as determined by the Airport Director to guarantee the faithful performance by the LICENSEE of its obligations under this LICENSE and the payment of all fees and charges due hereunder. PFCs shall be excluded from the fees and charges used to determine the LICENSEE’s security deposit. The security deposit shall guarantee the LICENSEE's full and faithful performance of each all the terms, covenants, and every covenant conditions of this LICENSE, and agreement shall take the form of an instrument or instruments of credit from one or more financial institutions, subject to regulation by the State of California or federal government, pledging that funds necessary to secure performance of the LICENSE terms, covenants, and conditions are on deposit and guaranteed for payment, and agreeing that said funds shall be performed trust funds securing the LICENSEE's performance and that all or any part shall be paid to the COUNTY, or order upon demand by Tenant under the Airport Director. Both the financial institution(s) and the form of the instrument(s) must be approved by the Airport Director. All or any portion of the security deposit shall be available unconditionally to the COUNTY for correcting any default or breach of this LeaseLICENSE by the LICENSEE, its successors or assigns, or for payment of expenses incurred by the COUNTY as a result of the failure of the LICENSEE, its successors or assigns, to faithfully perform all terms, covenants, and conditions of this LICENSE. Landlord Instrument of Credit to fulfill the security deposit requirements of this LICENSE, shall have the right, but not the obligation, to apply the Security Deposit in whole effect of releasing depository or in part as payment creditor therein from liability on account of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent any or in the performance all of the covenants principal sum due to the COUNTY, or agreements contained hereinorder upon demand by the Airport Director. Landlord's right to possession In the event the Airport Director withdraws all or any portion of the Property for non-payment of rent or any other reason shall not be affected by security deposit as provided herein, the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof LICENSEE shall, within thirty ten (3010) days of said applicationany withdrawal by Airport Director, replenish the security deposit to maintain it at amounts herein required throughout the LICENSE term. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice Failure to do so shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant be deemed a default and shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon be grounds for immediate termination of this LeaseLICENSE, full payment as per Article VIII of this LICENSE. The LICENSEE shall be obligated to maintain the security deposit in effect until the termination of the LICENSE. The security deposit, after deduction of all amounts due and performance of all Tenant's covenants and agreements COUNTY, shall be rebated, reassigned, released or endorsed by the COUNTY to the LICENSEE or order, as applicable, after one hundred twenty (including surrender 120) days have elapsed or at a time to be determined by the Airport Director, following the termination of the Property in accordance with Paragraph 15)LICENSE, the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to provided LICENSEE has fully and faithfully performed each and every saleterm, lease or other transfer covenant, and condition of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termthis LICENSE.

Security Deposit. On or before the Lease Commencement Date, Tenant has deposited with shall pay to Landlord a security deposit (the “Security Deposit Deposit”) in the amount set forth above in Section 8 of the Summary, as security for the faithful performance of each and every covenant and agreement to be performed by Tenant of all of its obligations under this Lease. Landlord acknowledges that it is currently holding under the Existing Lease a security deposit in the form of a letter of credit in the amount of Two Hundred Sixty Thousand Dollars ($260,000). Upon the later of Tenant’s delivery of the Security Deposit and the Lease Commencement Date, Landlord shall have the rightreturn such letter of credit to Tenant. If Tenant defaults with respect to any provisions of this Lease, including, but not limited to, the obligationprovisions relating to the payment of Rent, the removal of property and the repair of resultant damage, Landlord may, without notice to Tenant, but shall not be required to apply all or any part of the Security Deposit for the payment of any Rent or any other sum in whole default and Tenant shall, upon demand therefor, restore the Security Deposit to its original amount. Any unapplied portion of the Security Deposit shall be returned to Tenant, or, if Tenant’s interest in this Lease has been assigned, to the last assignee of Tenant’s interest hereunder, within sixty (60) days following the expiration of the Lease Term. Tenant shall not be entitled to any interest on the Security Deposit. Tenant hereby irrevocably waives and relinquishes any and all rights, benefits, or protections, if any, Tenant now has, or in part as payment the future may have, under Section 1950.7 of such amounts as are the California Civil Code, any successor statute, and all other provisions of law, now or hereafter in effect, including, but not limited to, any provision of law which (i) establishes the time frame by which a landlord must refund a security deposit under a lease, or (ii) provides that a landlord may claim from a security deposit only those sums reasonably necessary to remedy Tenant's defaults in the payment of rent rent, to repair damage caused by a tenant, or in to clean the performance subject premises. Tenant acknowledges and agrees that (A) any statutory time frames for the return of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected a security deposit are superseded by the fact that express period identified in this Article 21, above, and (B) rather than be so limited, Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of may claim from the Security Deposit (x) any and all sums expressly identified in this Article 21, above, and (y) any additional sums reasonably necessary to compensate Landlord for any and all losses or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated damages caused by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination Tenant’s default of this Lease, full payment including, but not limited to, all damages or rent due upon termination of all amounts due and performance of all Tenant's covenants and agreements (including surrender this Lease pursuant to Section 1951.2 of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termCalifornia Civil Code.

Security Deposit. Tenant Lessee has deposited with Landlord Lessor the Security Deposit in the amount set forth above sum of $59,500.00 as security for the full and faithful observance and performance by Lessee of each the terms, covenants and every covenant and agreement to be performed by Tenant under conditions of this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's If Lessee defaults in the payment of rent observance or in the performance of the covenants any term, covenant or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination condition of this Lease, full including without limitation the payment of Rent, Lessor may use, apply or retain the whole or any part of the security so deposited to the extent required for the payment of any Rent or any other sum as to which Lessee is in default or for any sum which Lessor may expend or may be required to expend by reason of Lessee’s default, including without limitation any damages or deficiency accrued before or after summary proceedings or other reentry by Lessor. If Lessee shall fully and faithfully observe and perform all amounts due and performance of all Tenant's the terms, covenants and agreements (including surrender conditions of the Property in accordance with Paragraph 15)this Lease, the Security Deposit or any portion thereof remaining unapplied security, without interest, shall be returned to Tenant in accordance with applicable lawLessee after the end of the Lease Term and after delivery of entire possession of the Demised Premises to Lessor. In the event of a sale, lease, transfer or other transfer leasing of the BuildingDemised Premises by Lessor, Landlord may Lessor shall have the right to transfer the security to the vendee, transferee or assign said Security Deposit to Landlord's granteelessee, lessee or assigneeand Lessor thereupon shall be released by Lessee from all liability for the return of such security. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant Lessee agrees to look solely to such grantee, lessee new owner or assignee solely landlord for the return of said Security Depositsecurity. The provisions hereof of this paragraph shall apply to each and every sale, lease transfer or other transfer assignment of the Buildingsecurity to a new owner or landlord. The Security Deposit Lessee shall not assign or encumber or attempt to assign or encumber the security, and neither Lessor nor the successors or assigns of Lessee shall be deemed bound by any such assignment, encumbrance, or construed as advance payment of rent for attempted assignment or encumbrance. If Lessor applies or retains all or any month portion of the lease termsecurity, Lessee on demand shall pay to Lessor the amount so applied or retained which shall be added to the security so that the same shall be replenished to its former amount and so that at all times the amount deposited shall be $59,500.00.

Security Deposit. Concurrently with Tenant's execution of this Lease, Tenant has deposited with Landlord the sum of Eighty Four Thousand Five Hundred and No/100 Dollars ($84,500.00) ("Cash Security "Deposit"). In addition, on or before January 4, 2002, Tenant shall deposit with Landlord a letter of credit substantially in the form attached hereto as Exhibit "C" ("Letter of Credit") in an initial amount of Three Hundred Twenty Four Thousand Dollars ($324,000.00). The Cash Security Deposit and Letter of Credit are collectively referred to as the Security Deposit. Landlord shall not be deemed a trustee of the Security Deposit, may use the Cash Security Deposit in business, and shall not be required to segregate the amount set forth above for Cash Security Deposit from its general accounts. Tenant shall not be entitled to interest on the performance Security Deposit. If Tenant defaults with respect to any provisions of each and every covenant and agreement to be performed by Tenant under this the Lease. Landlord shall have the right, including but not limited to the obligationprovisions relating to payment of Base Monthly Rent or other charges, Landlord may, to apply the Security Deposit in whole or in part as payment of such amounts as are extent reasonably necessary to remedy Tenant's defaults in the payment of rent default, use any or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application all of the Security Deposit (provided, however, Landlord shall use all of the Cash Deposit prior to drawing on all or any part portion of the Letter of Credit) towards payment of the following: (i) Base Monthly Rent or other charges in default; (ii) any other amount which Landlord actually and reasonably incurs by reason of Tenant's default hereunder including, but not limited to Tenant's failure to restore or clean the Premises following vacation thereof in accordance with the terms of this Lease. If any portion of the Cash Security Deposit is so used or applied, Tenant shall, within ten (10) days after written demand from Landlord, deposit cash with Landlord in an amount sufficient to restore the Cash Security Deposit to its full original amount, and shall pay to Landlord such other sums as may be due pursuant to subsection (ii) of the immediately preceding sentence. Tenant may not assign or encumber the Security Deposit without the consent of Landlord. Any attempt to do so shall be void and shall not be binding on Landlord. The Security Deposit shall be returned to Tenant within thirty (30) days of said application. If after the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due Expiration Date and performance of all Tenant's covenants and agreements (including surrender of the Property Premises to Landlord, less any amount deducted in accordance with Paragraph 15)this Section, together with Landlord's written notice itemizing the amounts and purposes for such deduction. Landlord shall be entitled to draw against the Letter of Credit at any time provided only that Landlord certifies to the issuer of the Letter of Credit that Tenant is in default under the Lease. Landlord shall only draw the amount necessary to cure the default unless such default is the third default that has occurred in any consecutive 18-month period during the Lease Term, in which case Landlord shall be permitted to draw the entire amount of the Letter of Credit and convert it to cash, subject to the provisions of this Lease regulating the handling of the Cash Security Deposit. Tenant shall keep the Letter of Credit in effect during the Lease Term as required herein. At least thirty (30) days prior to expiration of the Letter of Credit, the Security Deposit or any portion term thereof remaining unapplied shall be returned renewed or extended for a period of at least one (1) year in the amount required by this Section 4. Tenant's failure to Tenant in accordance with applicable lawso renew or extend the Letter of Credit shall be a material default of this Lease by Tenant. In the event Landlord draws against the Letter of Credit, Tenant shall replenish the existing Letter of Credit or cause a sale, lease, or other transfer new Letter of Credit to be issued such that the aggregate amount available to Landlord at all times during the Lease Term is the amount of the BuildingLetter of Credit then required. Notwithstanding the foregoing, Landlord may transfer or assign said and provided Tenant is not then in default of the Lease (beyond any applicable notice and cure period) and the Cash Security Deposit to Landlord's granteeis at its required amount, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer amount of the Building. The Security Deposit Letter of Credit shall not be deemed or construed as advance payment reduced annually by $108,000.00, commencing on February 1, 2003, such reduction to continue annually until the Letter of rent for any month of the lease termCredit is entirely eliminated.

Security Deposit. At the signing of this Lease, Tenant has deposited with shall deliver to Landlord the Security Deposit a security deposit in the amount set forth above of $ .00_. This security deposit is paid at the signing of the Lease to hold the Premises until the Tenant occupies the Premises.. The Tenant understands that the Landlord is taking the Premises off the market at this time to reserve the Premises for the performance Tenant. Tenant understands that if Tenant does not move into the Premises, deductions will be made from the deposit to cover expenses in leasing the apartment to new tenants. A rental fee of each and every covenant and agreement to be performed by Tenant under this Lease$300 will apply, plus any additional expenses incurred. The Landlord will keep the security deposit in a separate account that may earn interest. Landlord shall have will retain the rightinterest earned and Tenant agrees that they are not entitled to any interest on their security deposit. Landlord will return the security deposit to the Tenant within 30 (thirty) days from the end of the Lease term if the Tenant has complied with all the terms of this lease and has not otherwise caused economic loss to the Landlord. The Landlord will make appropriate deductions from the security deposit and return the balance, but not the obligationif any, to apply the Security Deposit Tenant together with a written statement detailing the reasons for any deductions. In so doing, the Landlord does not waive any claim against the Tenant in whole or in part as payment excess of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Depositsecurity deposit. Landlord shall give Tenant written notice Appropriate deductions may include, but are not limited to, cleaning of the application of Premises and the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receiptsany necessary repairs which are not considered normal wear and tear. Upon receipt of said notice, The security deposit may not be used for rent. The security deposit may not be transferred to another property. Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall has agreed that one check will be returned to (the “Tenant in accordance with applicable law. In Payee”) reflecting the event of a sale, lease, or other transfer balance of the Buildingsecurity deposit owed to Tenant. The Tenant Payee is responsible for disbursing any returned security deposit to the other tenants listed on this Lease. Return of the security deposit is subject to: full term has expired, Landlord may transfer no damage beyond normal wear and tear, entire premise including range, refrigerator, dishwasher, closets, walls, cabinets, showers, toilets and floors are cleaned, burned out light bulbs are replaced, all keys returned, no holes or assign said Security Deposit to Landlord's granteedents in walls, lessee or assigneeall unpaid late fees are paid, all rubbish are properly disposed of and all items are removed from the Premises. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely The cost of labor is $30.00 per man hour for cleaning and repairs and shall be deducted from the security deposit as well as the cost of matereials. There will be a minimum charge of $100.00 for the return disposal of said Security Depositany items left behind. The provisions hereof shall apply A $10.00 per key charge will be applied to each and every sale, lease or other transfer any keys not returned by the termination date of this lease. Tenants agree to submit the Move In Inspection Form on our website xxxx://xxx.xxxxxxxxxxxxxxx.xxx/move-out-checklist/ within 15 days of the Buildingbeginning of the lease. The Security Deposit shall not be deemed or construed as advance payment of rent Failure to submit the form on time obligates the tenants to take responsibility for any month of and all existing damage to the lease termunit.

Security Deposit. Tenant has deposited shall deposit with Landlord the Security Deposit in the amount set forth above for the performance in Article 1 (“Security Deposit”), upon Tenant’s execution and submission of each and every covenant and agreement to be performed by Tenant under this Lease. The Security Deposit shall serve as security for the prompt, full and faithful performance by Tenant of the provisions of this Lease. If Tenant commits a Default, or owes any amounts to Landlord upon the expiration or earlier termination of this Lease (including estimated amounts under Article 3, which shall have remain subject to reconciliation against actual amounts as further provided therein), Landlord may use or apply the right, but not the obligation, to apply whole or any part of the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in for the payment of rent Tenant’s obligations hereunder. The use or in the performance application of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent Security Deposit or any portion thereof shall not prevent Landlord from exercising any other reason right or remedy provided hereunder or under any Law and shall not be affected construed as liquidated damages. In the event the Security Deposit is reduced by such use or application, Tenant shall deposit with Landlord within ten (10) days after notice, an amount sufficient to restore the fact that Landlord holds security. Tenant's liability is not limited to the full amount of the Security Deposit. Landlord shall give Tenant written notice of not be required to keep the application Security Deposit separate from Landlord’s general funds or pay interest on the Security Deposit. Any remaining portion of the Security Deposit not used or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied applied hereunder shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within sixty (60) days after Tenant (or such assignee) has vacated the Premises in accordance with applicable lawArticle 23. In If the event of a sale, leasePremises shall be expanded at any time, or other transfer if the Term shall be extended at an increased rate of Rent, the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall thereupon be proportionately increased. Tenant shall not assign, pledge or otherwise transfer any interest in the Security Deposit except as part of an assignment of this Lease approved by Landlord under Article 13, and any attempt to do so shall be deemed or construed as advance payment of rent for any month of the lease termnull and void.

Security Deposit. Tenant has deposited with Landlord If an amount is set forth in the Basic Lease Provisions as the Security Deposit, upon execution of this Lease, Landlord acknowledges receipt of Tenant’s Security Deposit in the amount set forth above for the full and faithful performance by Tenant of each all of the covenants and every covenant and agreement terms of this Lease required to be performed by Tenant under this LeaseXxxxxx. Landlord shall have the right, but not the obligation, to apply the Such Security Deposit in whole or in part as payment of such amounts as are reasonably necessary shall be returned to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If after the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination expiration of this LeaseLease provided Xxxxxx has fully and faithfully carried out all of Tenant’s obligations hereunder, full including the payment of all amounts due to Landlord hereunder and performance of all Tenant's covenants and agreements (including the surrender of the Property Premises to Landlord in accordance the condition required herein. However, Landlord, at Xxxxxxxx’s option, may apply such sum on account of the payment of the last month’s Minimum Monthly Rental hereunder. Said sum may be commingled with Paragraph 15)other funds of Landlord and shall not bear interest. Notwithstanding the above, if Xxxxxx becomes obligated to pay a Late Charge or upon the occurrence of any Event of Default described in paragraph 24 below, at Landlord’s option, the Security Deposit shall become immediately due and payable in full to Landlord, to be applied against any Late Charge, damages or any portion thereof remaining unapplied shall be returned losses suffered by Landlord as a result of Xxxxxx’s failure to Tenant in accordance with applicable lawtimely pay Rental or an Event of Default. In the event of a sale, lease, or other transfer sale of the BuildingBuilding subject to this Lease, Landlord may shall transfer or assign said the Security Deposit to Landlord's granteethe purchaser to be held under the terms of this Lease, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to and Landlord assumes shall thereupon be released from all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely liability for the return of said the Security Deposit. The provisions hereof shall apply ; Xxxxxx agrees to each and every sale, lease or other transfer look solely to the new Landlord for the return of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termDeposit.

Security Deposit. Simultaneously with the execution of this Lease, Tenant has deposited with shall deliver to Landlord the Security Deposit in the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the full amount of the Security Deposit. Landlord shall give Tenant written notice Deposit set forth in Section 1(o) of this Lease, as security for the application full and timely performance of the Tenant’s obligations under this Lease, The parties acknowledge and agree that said Security Deposit (or any part thereof within thirty (30pre-paid Rent received from Tenant under this Lease or under any separate agreement in connection therewith) days shall be deposited in Landlord’s general operating account, and not a separate escrow account. Should said Security Deposit and/or pre-paid Rent be placed in an interest bearing account, all interest accruing thereon shall be payable to Landlord. Tenant’s Security Deposit shall not be construed as pre-paid Rent, or as a measure of Landlord’s damages in the event of a Default by Tenant. If Tenant should be placed in Default with respect to any provision of this Lease, Landlord may apply all or a portion of said applicationSecurity Deposit for the payment of any sum in Default or for the payment of any amount which Landlord expends by reason of such Default. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt any portion of said noticeSecurity Deposit is so applied, Tenant shall at once pay to Landlord deposit with Landlord, within five (5) days after receipt of Landlord’s written demand, an amount sufficient to restore the said Security Deposit in fullto its original amount. Upon the expiration of this Lease, Landlord shall return said Security Deposit to Tenant, provided Tenant has paid to Landlord all sums owing to Landlord under this Lease, and Tenant has returned the Premises to Landlord pursuant to the terms of Section 15. If upon the termination of this Lease, full payment there is accrued Additional Rent which as of all amounts due such date has not been invoiced to Tenant, or if Landlord reasonably determines that there is damage to the Premises for which Tenant is responsible under this Lease, Landlord reserves the right to either (a) withhold Tenant’s Security Deposit, or so much of it as Landlord deems reasonable until Tenant’s actual obligation with respect to said Additional Rent have been determined, at which time Landlord shall offset Tenant’s actual obligation for Additional Rent and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), damages against the Security Deposit held by Landlord and return the positive difference, if any, to Tenant; or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale(b) reasonably estimate Tenant’s obligation for Additional Rent and damages, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to and offset such grantee, lessee or assignee solely for the return of amount against said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.

Security Deposit. (a) Concurrently with Xxxxxx's execution of this Lease, Tenant has deposited with shall deliver to Landlord an unconditional, irrevocable, transferable letter of credit in the Security Deposit stated amount of Six Hundred Seventy-Six Thousand One Hundred Dollars ($676,100) issued by a bank approved by Landlord in favor of Landlord as beneficiary, for the term provided for below and otherwise in form and substance satisfactory to Landlord ("Letter of Credit"). The Letter of Credit shall be issued for an initial term of one year following the date of this Lease, and Tenant shall cause the Letter of Credit to be renewed for successive twelve-month periods throughout the Term not less than thirty (30) days prior to each expiration date of the Letter of Credit, until Tenant shall have the right to reduce the amount of the Letter of Credit as provided in subparagraph (b) below. The Letter of Credit shall entitle Landlord to draw the entire stated amount thereof upon presentation of a sight draft in the amount set forth above of the draw. The Letter of Credit shall be held by Landlord as security for the faithful performance by Tenant of each all of the covenants, agreements and every covenant and agreement obligations under this Lease to be performed by Tenant during the Term. If Tenant shall fail to pay Monthly Base Rental or other amounts payable by Tenant to Landlord under this Lease. , or if Tenant shall otherwise default with respect to any provision of this Lease after the expiration of any applicable cure period, Landlord shall have the right, but shall not the obligationbe obligated, to draw the entire stated amount of the Letter of Credit and to hold the proceeds thereof as a cash security deposit ("Security Deposit"), and to use, apply or retain all or any portion of the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in for the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent rental or any other amount which Landlord may expend or become obligated to expend by reason of Tenant's default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default. If Landlord shall make any draw upon the Letter of Credit and apply such draw to the cure of any default, Tenant shall, within ten (10) days after Landlord's written demand therefor, deposit with Landlord a replacement, additional or amended Letter or Letters of Credit in the same form (including total stated amount and issuer) as the Letter of Credit drawn upon by Landlord. If Landlord shall so use or apply any portion of any cash Security Deposit held by Landlord. Tenant shall, within ten (10) days after Landlord's written demand therefor, deposit cash with Landlord in the amount so used or applied by Landlord. Landlord shall not be affected by the fact that Landlord holds security. Tenantrequired to keep any Security Deposit separate from Landlord's liability is other funds, and Tenant shall not limited be entitled to the amount of the any interest on any Security Deposit. Landlord shall give return the Letter of Credit, any Security Deposit, and/or any balance thereof not applied in accordance with the provisions of this Lease, to Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days following the expiration of said application. If this Lease and after Xxxxxx has surrendered the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay Premises to Landlord an amount sufficient to restore in the Security Deposit in full. Upon termination of condition required under this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other that Landlord shall transfer of its interest in the BuildingPremises, Landlord may shall transfer or assign said the Letter of Credit (to the extent transferable) and/or any funds then held by Landlord on account of any cash Security Deposit to Landlord's granteetransferee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed and Landlord shall thereupon be released from all liability to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said the Letter of Credit and/or cash Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.

Security Deposit. Tenant has deposited shall deposit with Landlord as a security deposit under this Lease the Security Deposit following amounts: (a) an amount equal to one month’s Minimum Rent payable upon Lease execution; (b) an amount equal to one month’s Minimum Rent payable upon Landlord obtaining a building permit for Landlord’s Work (provided no Tenant default exists, after any applicable notice and opportunity to cure, this amount shall be applied at the commencement of the term in payment of the first month’s Minimum Rent); and (c) an amount set forth above equal to one month’s Minimum Rent payable upon delivery by Landlord of a written notice of completion of Landlord’s Work (provided no Tenant default exists, this amount shall be applied by Landlord to Tenant’s Minimum Rent for the last month of the term), as the same may be extended pursuant to the terms hereof. Such security deposit shall be held by Landlord, without interest, as security for the faithful performance by Tenant of all the terms of this Lease to be observed and performed by Tenant unless Landlord applies it to the Minimum Rent as provided above. The security deposit shall not be mortgaged, assigned, transferred, or encumbered by Tenant without the written consent of Landlord; and any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. If any Minimum Rent or other sum payable by Tenant to Landlord is overdue and unpaid, or if Landlord makes any payments on behalf of Tenant, or if Tenant fails to perform any of the terms of this Lease, then Landlord, at its option and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply such deposit or so much thereof as may be necessary toward the payment of the rent or other sum due Landlord by reason of such breach on the part of Tenant or toward the performance of each and every covenant and agreement to be performed by any other overdue obligation of Tenant under this Lease. ; and Tenant forthwith upon demand by Landlord shall have the right, but not the obligation, restore such deposit to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance its original amount. If Tenant complies with all of the covenants or agreements contained herein. Landlord's right to possession terms of the Property for non-payment of rent or any this Lease and pays all Minimum Rent and other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of sums payable under this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements then such deposit (including surrender of or the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied not applied by Landlord to cure a default by Tenant) shall be returned to Tenant in accordance with applicable lawwithin sixty (60) days following the end of the Term and Xxxxxxxx's determination of all amounts owing by Tenant pursuant to the provisions hereof. In the event of a sale, lease, bankruptcy or other transfer of the Buildingcreditor proceedings against Tenant, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof security deposit shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance to be applied first to the payment of rent and other sums due Landlord for periods prior to the commencement of such proceedings. Landlord may deliver such security deposit to the purchaser of Landlord's interest in the Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any month of the lease termfurther liability with respect to such deposit.

Security Deposit. A Security Deposit of $11,186.66 will be paid by the Tenant has deposited with upon the Commencement Date and held by the Landlord at all times while this Lease is in effect. The parties acknowledge that this amount is already in the possession of Landlord, being the Security Deposit in amount from the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, previous lease or other transfer of the Buildingterm. The Security Deposit shall be held by Landlord without liability for interest and as security for the full and timely performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be deemed or construed as considered an advance payment of rent for rental or a measure or limitation of Landlord’s damages in case of default by Tenant. Unless otherwise provided by mandatory non-waivable law or regulation, Landlord may co-mingle the Security Deposit with Landlord’s other funds. If the Landlord must apply any month part of the lease termSecurity Deposit to cure any default of Tenant hereunder, but the Lease remains in effect, the Tenant shall promptly pay to the Landlord upon demand such amount as will restore the full balance of the Security Deposit to its original $11,186.66 amount. If the leased premises are in substantially as good a condition, reasonable and normal wear and tear excepted, as exists upon the commencement of this tenancy, and Tenant is not in default under any other provisions of this Lease and is current in all payments owed to Landlord, the entire Security Deposit, or balance thereof after any such application to cure any default, shall be returned without interest to Tenant within a reasonable time after the expiration or termination of this Lease. Landlord may, however, retain an amount from the Security Deposit as is reasonably estimated to cover any projected shortfall in Tenant’s Triple Net payments as have not been reconciled at the time of the termination of this Lease.

Security Deposit. Tenant has deposited Upon Lessee's execution of this Lease, Lessee shall ---------------- deposit with Landlord Lessor the sum set forth in Article 1.i. as the security deposit ("Security Deposit"). The Security Deposit in the amount set forth above shall be held by Lessor as security for the faithful performance by Lessee of each all the terms, covenants and every covenant and agreement conditions of this Lease to be kept and performed by Tenant under Lessee during the Term. If Lessee defaults with respect to any provision of this Lease. Landlord shall have the right, including, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount provisions relating to the payment of Rentals or relating to the condition of the Security Deposit. Landlord Premises at Lease Termination, Lessor may (but shall give Tenant written notice of the application not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rental or any part thereof other sum in default, or for the payment of any amount which Lessor may spend or become obligated to spend by reason of Lessee's default, or to compensate Lessor for any other loss or damage which Lessor may suffer by xxxxx of Lessee's default. If any portion of the Security Deposit is so used or applied, Lessee shall within thirty five (305) days of said application. If the application is on account of maintenanceafter written demand therefor, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord deposit cash with Lessor in an amount sufficient to restore the Security Deposit in full. Upon termination to its original amount and Lessee's failure to do so shall be a material breach of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), . Lessor shall not be required to keep the Security Deposit separate from its general funds, and Lessee shall not be entitled to interest on the Security Deposit. Lessor is not a trustee of the Security Deposit and may use it in ordinary business, transfer it or assign it, or use it in any combination of such ways. Any remaining portion thereof remaining unapplied of the Security Deposit shall be returned to Tenant in accordance with applicable law. In Lessee (or, at Lessor's option, to the event last assignee of a sale, lease, or other transfer Lessee's interest hereunder) within two (2) weeks after Lease Termination and vacation of the BuildingPremises by Lessee or its last assignee; provided, Landlord however if any portion of the Security Deposit is to be applied to repair damages to the Premises caused by Lessee or Lessee's Agents or to clean the Premises, then the balance of the Security Deposit shall be returned to Lessee (or, at Lessor's option to the last assignee of Lessee's interests hereunder) no later than thirty (30) days from the date Lessor receives possession of the Premises. Lessee shall not transfer or encumber the Security Deposit nor shall Lessor be bound by Lessee's attempt to do so. If Lessor's interest in this Lease is terminated, Lessor may transfer or assign said the Security Deposit to LandlordLessor's granteesuccessor in interest, lessee or assignee. Provided said granteeand upon such transfer, lessee or assignee by written undertaking addressed Lessor shall be released from any liability to Landlord assumes all Landlord's obligations hereunder, Tenant agrees Lessee with respect to the Security Deposit and Lessee shall look only to such grantee, lessee or assignee solely the transferee for the any return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not to which Lessee may be deemed or construed as advance payment of rent for any month of the lease termentitled.

Security Deposit. Tenant has deposited Upon the date this Lease is executed by Lessee, Lessee shall deposit with Landlord the Lessor a Security Deposit equal to twelve (12) month’s estimated Base Rent in the amount set forth above for of Five Million, Nine Hundred Sixty-Four Thousand, Six Hundred Thirty and no cents ($6,051,864.00) in the performance form of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the rightcash or an unconditional, but not the obligationirrevocable letter of credit without documents, to apply the Security Deposit with Lessor as beneficiary, drawable in whole or in part part, and providing for payment in San Francisco on presentation of Lessee’s drafts on sight, drawable and otherwise from a bank and in a form acceptable to Lessor (the “Security Deposit”). The Security Deposit shall be held by Lessor as payment security for the faithful performance by Lessee of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance all of the covenants or agreements contained terms, covenants, and conditions of this Lease applicable to Lessee. If Lessee is in breach of this Lease (beyond any applicable cure period provided herein. Landlord's right ) with respect to possession any provision of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is this Lease, including but not limited to the amount provisions relating to the condition of the Security Deposit. Landlord Premises upon Lease Termination, Lessor may (but shall give Tenant written notice of the application not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any amount which Lessor may spend by reason of Lessee’s default or to compensate Lessor for any part thereof within thirty (30) days loss or damage which Lessor may suffer by reason of said applicationLessee’s default. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost any portion of the sameSecurity Deposit is so used or applied, attaching estimates or paid receipts. Upon receipt of said noticeLessee shall, Tenant shall at once pay to Landlord within ten days after written demand therefor, deposit cash with Lessor in an amount sufficient to restore the Security Deposit to its original amount. Lessee’s failure to do so shall be a Default by Lessee. The rights of Lessor pursuant to this Section 4.06. are in fulladdition to any rights which Lessor may have pursuant to Article 12 below. Upon termination If Lessee fully and faithfully performs every provision of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15)Lease to be performed by it, the Security Deposit or any portion balance thereof remaining unapplied shall be returned (without interest) to Tenant Lessee (or, at Lessor’s option, to the last assignee of Lessee’s interests hereunder) at Lease expiration or termination and after Lessee has vacated the Premises. Lessor shall not be required to keep the Security Deposit separate from Lessor’s general funds or be deemed a trustee of same. Subject to the prior written approval of Lessor and Lessor’s lender(s), the letter of credit may be reduced to an amount not less than the total of three (3) months of Base Rent at the then current rate, if Lessee establishes through financial statements prepared in accordance with applicable lawgenerally accepted accounting principles and in a form acceptable to Lessor that Lessee has achieved annual revenue for a period of at least one (1) fiscal year of at least Seven Hundred Fifty Million Dollars ($750,000,000) and has further achieved quarterly operating profit of at least One Hundred Million Dollars ($75,000,000) for not less than four (4) consecutive calendar quarters. In If the event Security Deposit is in whole or in part in the form of a saleLetter of Credit, lease, or other transfer failure of Lessee to deliver a replacement Letter of Credit to Lessor at least forty-five (45) days prior to the Building, Landlord may transfer or assign said Security Deposit expiration date of any current Letter of Credit shall constitute a separate default entitling Lessor to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for draw down immediately and entirely on the return current Letter of said Credit and the proceeds shall constitute a cash Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.

Security Deposit. Concurrently with Tenant's execution of this Lease, Tenant has deposited will deposit with Landlord the Security Deposit designated in the amount set forth above Subparagraph 1(o). The Security Deposit will be held by Landlord as security for the full and faithful performance by Tenant of each all of the terms, covenants, and every covenant and agreement conditions of this Lease to be kept and performed by Tenant during the Term hereof. If Tenant fully and faithfully performs its obligations under this Lease. Landlord shall have , including, without limitation, surrendering the rightPremises upon the expiration or sooner termination of this Lease in compliance with Subparagraph 11(a) below, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part balance thereof will be returned to Tenant (or, at Landlord's option, to the last assignee of Tenant's interest hereunder) within thirty (30) days following the expiration of said applicationthe Lease Term or as required under applicable law, provided that Landlord may retain the Security Deposit until such time as any outstanding rent or additional rent amount has been determined and paid in full. The Security Deposit is not, and may not be construed by Tenant to constitute, rent for the last month or any portion thereof. If Tenant defaults with respect to any provisions of this Lease including, but not limited to, the application is on account provisions relating to the payment of maintenancerent or additional rent, repairs Landlord may (but will not be required to) use, apply or replacements necessitated by tenant, said notice shall include the estimated retain all or actual cost any part of the sameSecurity Deposit for the payment of any rent or any other sum in default, attaching estimates or paid receiptsfor the payment of any other amount which Landlord may spend or become obligated to spend by reason of Tenant's default or to compensate Landlord for any loss or damage which Landlord may suffer by reason of Tenant's default. Upon receipt If any portion of said noticethe Security Deposit is so used or applied, Tenant shall at once pay agrees, within ten (10) days after Landlord's written demand therefor, to deposit cash with Landlord in an amount sufficient to restore the Security Deposit in full. Upon termination of to its original amount and Tenant's failure to do so shall constitute a default under this Lease, full payment of all amounts due and performance of all . Landlord is not required to keep Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned separate from its general funds, and Tenant is not entitled to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to interest on such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions Should Landlord sell its interest in the Premises during the Term hereof shall apply to each and every sale, lease or other transfer of deposit with the Building. The purchaser thereof the then unappropriated Security Deposit shall not funds, Landlord will be deemed or construed as advance payment of rent for discharged from any month of the lease termfurther liability with respect to such Security Deposit.

Security Deposit. Tenant has deposited Concurrent with Landlord the Security Deposit in the amount set forth above its execution of this Sublease Agreement, Subtenant shall deliver to Sublandlord, as security for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the Subtenant’s faithful payment of rent or in the and performance of all Subtenant’s other obligations hereunder, a security deposit in an amount equal to One Hundred Four Thousand Nine Hundred Ninety-Four and No/100 Dollars ($104,994.00) (the covenants or agreements contained herein“Security Deposit”). Landlord's right to possession of the Property for non-payment of rent or any other reason Sublandlord shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited required to the amount of pay any interest on the Security Deposit. Landlord Sublandlord shall give Tenant written notice of the application of be entitled to draw upon the Security Deposit Deposit, and use, apply and retain the proceeds thereof, to satisfy any of Subtenant’s unperformed monetary and/or non-monetary obligations under the Sublease in cases where the Subtenant has failed to remedy or cure such obligation within any part thereof applicable cure periods provided under this Sublease or the Master Lease (as the case may be). If Sublandlord so draws upon the Security Deposit, or uses, applies or retains the proceeds thereof, Subtenant shall, within thirty ten (3010) days of said application. If the application is on account of maintenancefollowing demand, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay tender to Landlord Sublandlord cash in an amount sufficient to restore the Security Deposit in fullto the full amount required under this Section 4.05. Upon Sublandlord shall return any unapplied proceeds of the Security Deposit to Subtenant within thirty (30) days after the expiration or earlier termination of this LeaseSublease. Subtenant shall have the right to deliver to Sublandlord an unconditional, full payment irrevocable letter of credit (the “Letter of Credit”) in substitution for the cash Security Deposit, subject to the following terms and conditions. Such letter of credit shall be (a) in form and substance substantially in the form attached hereto as Exhibit C; (b) at all amounts due and performance of all Tenant's covenants and agreements (including surrender times in the amount of the Property Security Deposit, and shall permit multiple draws without a corresponding reduction in accordance the aggregate amount of the Letter of Credit; (c) issued by a commercial bank reasonably acceptable to Sublandlord from time to time and located in the New York, New York metropolitan area; (d) payable at sight upon presentment to a local branch of the issuer of a simple sight draft or certificate stating that Subtenant is in default under this Sublease beyond the applicable cure period (provided, however that in the event that a notice of default to Subtenant may not be lawfully given by Sublandlord, then Sublandlord shall be entitled to draw thereunder upon presentment of a certificate stating that a notice of default cannot be lawfully given and that Subtenant has failed to timely pay or perform an obligation of the Subtenant under this Sublease); (e) of a term not less than one year; and (f) at least thirty (30) days prior to the then-current expiration date of such letter of credit, either (1) renewed (or automatically and unconditionally extended) from time to time through the thirtieth (30th) day after the expiration of the Sublease Term, or (2) replaced with Paragraph 15), cash in the amount of the Security Deposit Deposit. Notwithstanding anything in this Sublease to the contrary, any cure or grace periods set forth in this Sublease shall not apply to any portion thereof remaining unapplied of the foregoing, and, specifically, if Subtenant fails to timely comply with the requirements of subsection (f) above, then Sublandlord shall have the right to immediately draw upon the letter of credit without notice to Subtenant and apply the proceeds to the Security Deposit. Each Letter of Credit shall be returned issued by a commercial bank that has a credit rating with respect to Tenant certificates of deposit, short term deposits or commercial paper of at least P-2 (or equivalent) by Xxxxx’x Investor Service, Inc., or at least A-2 (or equivalent) by Standard & Poor’s Corporation, and shall be otherwise acceptable to Sublandlord in accordance its sole and absolute discretion. Each Letter of Credit contemplated hereunder shall be issued by a commercial bank that has a credit rating with respect to certificates of deposit, short term deposits or commercial paper of at least P-2 (or equivalent) by Xxxxx’x Investor Service, Inc., or at least A-2 (or equivalent) by Standard & Poor’s Corporation, and shall be otherwise acceptable to Sublandlord in its reasonable discretion. If the issuer’s credit rating is reduced below P-2 (or equivalent) by Xxxxx’x Investors Service, Inc. or below A-2 (or equivalent) by Standard & Poor’s Corporation, or if the financial condition of such issuer changes in any other materially adverse way, then Sublandlord shall have the right to require that Subtenant obtain from a different issuer a substitute letter of credit that complies in all respects with the requirements of this section, and Subtenant’s failure to obtain such substitute Letter of Credit within ten (10) days following Sublandlord’s written demand therefor (with no other notice or cure or grace period being applicable lawthereto, notwithstanding anything in this Sublease to the contrary) shall entitle Sublandlord to immediately draw upon the then-existing Letter of Credit in whole or in part, without notice to Subtenant. In the event the issuer of a sale, leaseany Letter of Credit held by Sublandlord is placed into receivership or conservatorship by the Federal Deposit Insurance Corporation, or other transfer any successor or similar entity, then, effective as of the Buildingdate such receivership or conservatorship occurs, Landlord may transfer said Letter of Credit shall be deemed to not meet the requirements of this section, and, within ten (10) days thereof, Subtenant shall replace such Letter of Credit with a Letter of Credit issued by an institution which satisfies the foregoing requirements (and Subtenant’s failure to do so within said ten (10) days shall, notwithstanding anything in this Sublease to the contrary, constitute a Default under the Sublease without the requirement for any further notice hereunder). Any failure or assign said Security Deposit refusal of the issuer to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed honor the Letter of Credit shall be at Subtenant’s sole risk and shall not relieve Subtenant of its obligations hereunder with respect to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof Notwithstanding anything in this Sublease to the contrary (including, without limitation, any cure or grace periods set forth in this Sublease), any failure by Subtenant to timely renew or replace said Letter of Credit and any failure by Subtenant to timely deliver to Sublandlord in writing proof of such renewal or replacement shall apply be deemed a Default hereunder by Subtenant, without the necessity for further notice to each Subtenant, entitling Sublandlord to immediately draw upon such Letter of Credit in the full amount thereof. At all times during the Sublease Term, Sublandlord shall be entitled to draw upon the entire amount of such Letter of Credit to cure any outstanding Default. In the event that Sublandlord draws upon the Letter of Credit by reason of Subtenant’s failure to timely renew or replace the Letter of Credit, the proceeds thereof (except for any portion thereof necessary to cure any other Default by Subtenant, if any) shall constitute a cash Security Deposit hereunder, and every sale, lease or other transfer shall be held in accordance with the terms of the Buildingforegoing provisions. The Security Deposit In the event Sublandlord transfers or assigns the Sublease, Sublandlord shall not be deemed simultaneously transfer the security deposit to the transferee or construed as advance payment assignee along with such transfer or assignment. In the event the security deposit is in the form of rent for any month a Letter of Credit, Subtenant shall pay all transfers costs imposed by the lease termissuer of such Letter of Credit.

Security Deposit. Tenant has deposited with Landlord shall pay to Landlord, upon the execution of this Lease, the Security Deposit in the amount set forth in Article 1.13 above as security for the performance by Tenant of each its obligations under this Lease, which amount shall be returned to Tenant after the expiration or earlier termination of this Lease, provided that Tenant shall have fully performed all of its obligations contained in this Lease. The Security Deposit, at the election of Landlord, may be retained by Landlord as and every covenant and agreement to for its full damages or may be performed applied in reduction of any loss and/or damage sustained by Landlord by reason of the occurrence of any breach, nonperformance or default beyond applicable cure periods by Tenant under this Lease without the waiver of any other right or remedy available to Landlord at law, in equity or under the terms of this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or If any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application portion of the Security Deposit is so used or any part thereof applied, Tenant shall, within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said after written notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon and receipt of said noticeinvoices for the expenses incurred in relation to the loss and/or damage sustained from Landlord, Tenant shall at once pay to deposit with Landlord immediately available funds in an amount sufficient to restore the Security Deposit in full. Upon termination to its original amount, and Tenant’s failure to do so shall be a breach of this Lease. Tenant acknowledges and agrees that in the event Tenant shall file a voluntary petition pursuant to the Bankruptcy Code or any successor thereto, full payment of all amounts due or if an involuntary petition is filed against Tenant pursuant to the Bankruptcy Code or any successor thereto and performance of all Tenant's covenants and agreements not dismissed within sixty (including surrender of the Property in accordance with Paragraph 15)60) days, then Landlord may apply the Security Deposit or any portion thereof remaining unapplied shall towards those obligations of Tenant to Landlord which accrued prior to the filing of such petition. Tenant acknowledges further that the Security Deposit may be returned to Tenant in accordance commingled with applicable lawLandlord’s other funds. In the event of a sale, lease, or other transfer termination of the BuildingLandlord’s interest in this Lease, Landlord may shall transfer or assign said the Security Deposit to Landlord's grantee’s successor in interest, lessee or assignee. Provided said grantee, lessee or assignee whereupon Landlord shall be released from liability by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease such deposit or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termaccounting therefore.

Security Deposit. Tenant LESSEE has deposited with Landlord LESSOR the Security Deposit sum of $ to be held by LESSOR as security for the faithful performance and observance by LESSEE of the terms, covenants and condition of this LEASE. It is agreed that in the amount set forth above for event LESSEE defaults in respect to any of the performance terms, covenants and conditions of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the rightLEASE, including, but not the obligationlimited to, any repairs due to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent LESSEE damage, cleaning charges, key charges, or any other reason costs from damages or deficiency accrued before or after re-entry by LESSOR, those costs will be deducted from the security deposit. In the event that LESSEE fully and faithfully complies with all terms, covenants and conditions of this LEASE, the security deposit shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited returned to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof LESSEE without interest within thirty (30) days after the end lease term and after delivery of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost entire possession of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay Apartment to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable lawLESSOR. In the event of a sale, lease, or other transfer sale of the Buildingland and building, Landlord may LESSOR reserves the right to transfer or assign said Security Deposit the security deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee the new owner and LESSOR shall thereupon be released by written undertaking addressed to Landlord assumes LESSEE from all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely liability for the return of said Security Depositsecurity, and LESSEE agrees to look to the new LESSOR, solely, for return of said security. If the LESSOR uses all or any part of security to remedy a default on the part of the LESSEE, LESSEE shall deposit with LESSOR the sum of money necessary to replenish the security deposit to the original amount set forth above within ten (10) days demand of such funds. PET DEPOSIT/PET CLEANING: Animals such as birds, dogs, cats or other animal will not be allowed or permitted in, upon or about the premises without the express written consent of the LESSOR. If such consent has been given, LESSEE will give the LESSOR a pet security deposit in the amount of $ which will be held by LESSOR as a guarantee that LESSEE will return the premises without damages and in original condition. The provisions hereof shall apply LESSEE agrees to each allow LESSOR to deduct the full cost of carpet cleaning, pest extermination and every saleair freshener from the deposit. LESSOR reserves the right to inspect LESSEE’s apartment for damages that may have been caused by LESSEE’s pet(s) and if any damage or unnecessary disturbance has occurred because of pet(s), lease or other transfer of the BuildingLESSEE will agree to vacate premises and LEASE will be considered broken. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.PET TYPE AND SIZE

Security Deposit. On the execution of this Lease, Tenant has deposited with shall pay to Landlord the as a Security Deposit in the amount set forth above for the performance of each the obligations of Tenant hereunder the amount specified in Section 1.1 in the form of cash or, if the amount specified in Section 1.1 equals or exceeds One Hundred Thousand Dollars ($100,000), an irrevocable letter of credit in accordance with the provisions of this Section 8.18. Tenant shall deliver to Landlord a letter of credit containing all of the following terms and satisfying all of the following conditions (which terms and conditions are hereinafter referred to as the “Letter of Credit Terms and Conditions”): (i) the letter of credit shall be irrevocable, (ii) the letter of credit shall only require the presentation to the issuer of a duly authorized certificate of the holder of the letter of credit stating that Landlord is entitled to draw upon the Letter of Credit under the terms of this Section 8.18, and stating the amount of the requested draw, (iii) the letter of credit shall be payable to Landlord or its successors in interest as the Landlord under this Lease and shall be freely transferable without cost to Landlord or to any such successor or any lender holding a collateral assignment of Landlord’s interest in the Lease, (iv) the letter of credit shall be in the amount required under Section 1.1, (v) the letter of credit shall be for an initial term of not less than one year and contain a provision that such term shall be automatically renewed for successive one-year periods unless the issuer shall, at least thirty (30) days prior to the scheduled expiration date, give Landlord notice of such nonrenewal, (vi) the letter of credit shall be in form and substance reasonably acceptable to Landlord, and (vii) the letter of credit shall be drawn on a commercial bank or savings and loan association which is reasonably acceptable to Landlord which can be drawn at such institution’s counter Xxx Xxxx, Xxx Xxxx xxx/xx Xxxxxx, Xxxxxxxxxxxxx (said initial letter of credit security deposit and every covenant renewal thereof and agreement every new letter of credit in replacement or substitution thereof, are hereinafter referred to as the “Letter of Credit Security Deposit”). Not less than thirty (30) days before the expiration of the initial Letter of Credit Security Deposit and every renewal thereof, Tenant shall deliver to Landlord a renewal of the Letter of Credit Security Deposit or a new Letter of Credit Security Deposit, in either case, except as otherwise expressly provided herein, containing and satisfying the Letter of Credit Security Deposit Terms and Conditions. Notwithstanding the foregoing, the Letter of Credit Security Deposit to be performed delivered by Tenant under for the final period of twelve (12) or fewer months before the expiration of the Term of this Lease shall be for a term ending not sooner than forty-five (45) days after the expiration of the Term of this Lease. Landlord shall have be entitled to draw upon the rightLetter of Credit Security Deposit for its full amount or any portion thereof if (a) Tenant shall fail to surrender the Premises as required under this Lease on or before the expiration of the Term, or shall otherwise fail to perform any of its obligations under the Lease after the expiration of any applicable notice and cure period, or shall fail to perform any of its obligations under the Lease and transmittal of a default notice is barred by applicable law, or (b) not less than thirty (30) days before the scheduled expiration of the Letter of Credit Security Deposit, Tenant has not delivered to Landlord a new Letter of Credit Security Deposit in accordance with this Section 8.18. Landlord may, but shall not be obligated to, draw on the obligationLetter of Credit Security Deposit from time to time in the event of a bankruptcy filing by or against Tenant and/or to compensate Landlord, in such order as Landlord may determine, for all or any part of any unpaid rent, any damages arising from any termination of the Lease in accordance with the terms of the Lease, and/or any damages arising from any rejection of the Lease in a bankruptcy proceeding commenced by or against Tenant. Landlord may, but shall not be obligated to, apply the amount so drawn to apply the extent necessary to pay any amount due Landlord hereunder. Landlord’s application of the Letter of Credit Security Deposit shall not contribute to the cure of any default unless and until Tenant reinstates the Security Deposit in whole or in part as payment of the full amount required under this Lease at such amounts as are reasonably necessary to remedy Tenant's defaults time (either in the payment form of rent cash or a new Letter of Credit Security Deposit compliant with the provisions of this Section 8.18). Any amount of the Letter of Credit Security Deposit drawn in excess of the amount applied by Landlord to cure any such failure shall be held by Landlord as a cash Security Deposit for the performance by Tenant of its obligations under the covenants or agreements contained hereinLease. Landlord's right Any cash Security Deposit may be mingled with other funds of Landlord and no fiduciary relationship shall be created with respect to possession such deposit, nor shall Landlord be liable to pay Tenant interest thereon. If Tenant shall fail to perform any of the Property for non-payment of rent or any other reason its obligations under this Lease, Landlord may, but shall not be affected obliged to, apply the cash Security Deposit to the extent necessary to pay any amount due Landlord hereunder. Landlord’s application of such a cash Security Deposit shall not contribute to the cure of any default unless and until Tenant reinstates the Security Deposit to the full amount required under this Lease at such time (either in the form of cash or a new Letter of Credit Security Deposit compliant with the provisions of this Section 8.18). After any such application by Landlord of the Letter of Credit Security Deposit or cash Security Deposit, as the case may be, within twenty (20) days after written demand from Landlord Tenant shall reinstate the Security Deposit to the amount originally required under this Lease at such time (either in the form of cash of a new Letter of Credit Security Deposit compliant with the provisions of this Section 8.18). Provided that Tenant is not then in default under the Lease, and no condition exists or event has occurred which after the expiration of any applicable notice or cure period would constitute such a default, within forty-five (45) days after the expiration or sooner termination of the Term the Letter of Credit Security Deposit and any cash Security Deposit, to the extent not applied, shall be returned to the Tenant, without interest. Tenant shall not have the right to call upon Landlord to apply all or any part of the Security Deposit to cure any default or to fulfill any obligation of Tenant, but such use shall be solely in the discretion of Landlord. Upon any conveyance by Landlord of its interest under this Lease, the Security Deposit then held by Landlord shall be delivered by Landlord to Landlord’s grantee or transferee. Upon any such delivery and the written acknowledgment by such grantee or transferee of its receipt and that it shall continue to hold such Security Deposit as required by the fact that terms and provisions of this Lease, Tenant hereby releases Landlord holds securityherein named (and each subsequent grantor or transferor) of any and all liability with respect to the Security Deposit, its application and return, and Tenant agrees to look solely to such grantee or transferee. Tenant's liability is not limited to Except as set forth below, effective as of the first (1st) day of the second (2nd) Lease Year, the amount of the Security Deposit. Landlord Deposit shall give Tenant written notice be reduced to $1,628,000 by an amendment to the Letter of Credit Security Deposit or a replacement of the application Letter of Credit Security Deposit reflecting such reduced amount. On the first (1st) day of the third (3rd) Lease Year and on the first (1st) day of each Lease Year thereafter, the amount of the Security Deposit or any part thereof within thirty shall be reduced by ten percent (3010%) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the samethen-current amount of the Security Deposit by further amendment to the Letter of Credit Security Deposit or a replacement of the Letter of Credit Security Deposit in reflecting such reduced amount. Notwithstanding any provisions in this paragraph providing such reductions in the Security Deposit, attaching estimates or paid receiptssuch reductions shall not be permitted if Tenant is in default (after expiration of all applicable cure periods) under this Lease at the time of such reduction. Upon receipt Notwithstanding anything to the contrary contained herein, any draw by Landlord of said noticethe Letter of Credit shall only be for the amount necessary to cure the default; if Landlord draws more than the amount necessary to cure the default, then any cash excess shall constitute a cash security deposit and Tenant shall at once pay to Landlord an amount sufficient only be obligated to restore the Letter of Credit to the then applicable Security Deposit in full. Upon termination less the amount of this Lease, full payment of all amounts due and performance of all cash held by Landlord unless Landlord delivers the cash to Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease term.

Security Deposit. Tenant has deposited Upon the execution of this Lease, Lessee shall deposit with Landlord Lessor the Security Deposit in sum of $21,826.00 (the amount set forth above "SECURITY DEPOSIT") as security for the punctual performance of each and every covenant and agreement to be performed by Tenant obligation of Lessee under this LeaseLease and not as a prepayment of rent hereunder. Landlord shall have the right, but not the obligation, to apply Lessor may commingle the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary with Lessor's other funds, and no interest shall be due thereon. Lessor may use the Security Deposit to remedy Tenant's defaults cure any default by Lessee and, in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent event that Lessor so applies all or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount portion of the Security Deposit, Lessee shall pay to Lessor, as Additional Rent, the amount so expended by Lessor within (i) ten (10) days of notice given by Lessor in the case of amounts of more than $500 so expended, or (ii) fifteen (15) days of notice given by Lessor in the case of amounts of not more than $500 so expended, so that at all times (subject to the grace periods hereinabove referenced) Lessor shall be entitled to hold the full Security Deposit. Landlord shall give Tenant written notice Any failure of the application of Lessee to restore any amount expended from the Security Deposit within the applicable grace period specified in this Section shall immediately constitute an Event of Default hereunder without the necessity of any further notice or passage of time. Lessor shall assign the Security Deposit to any part thereof within successor or assign of Lessor under this Lease, and thereafter Lessor shall have no further responsibility therefor. Within thirty (30) days of said application. If after the application is on account of maintenance, repairs expiration or replacements necessitated by tenant, said notice shall include the estimated or actual cost earlier termination of the sameLease Term, attaching estimates or paid receipts. Upon receipt of said noticeLessor shall inspect the Leased Premises, Tenant shall at once pay to Landlord an amount sufficient to restore make such deductions from the Security Deposit as may be required to cure any defaults by Lessee hereunder, and, if Lessee is not then in full. Upon termination default hereunder, pay the balance of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the lease termLessee.