Common use of Security Deposit Clause in Contracts

Security Deposit. Tenant has deposited with Landlord the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental 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 during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security deposit.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant has deposited with shall pay to Landlord the sum amount of Security Deposit specified in Section 1(a)(12). Said deposit shall constitute advance rental and 1.11, which shall be held by Landlord as security for to secure the faithful performance payment by Tenant of any and all present and future debts and liabilities of Tenant to Landlord and for Tenant’s performance of its obligations under this Lease. No portion of the terms, covenants and conditions 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 to be kept and performed by Tenant during the Lease Term. IfLease, at any time during the Lease Termincluding, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaidwithout limitation, the Landlord may, at its option, appropriate and apply any portion of said security deposit provisions relating to the payment of any such overdue rent Rent, Landlord may, but shall not be required to, reasonably use, apply or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply retain all or any part of the Security Deposit to cure (i) for the payment of any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform Rent or any other itemssum in default, covenants and conditions (ii) for the payment of the Lease any other amount which Landlord may spend or become obligated to be kept and performed spend by reason of such default by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, (iii) to compensate Landlord for any other loss or damage sustained or suffered which Landlord may suffer by Landlord due to reason of such breach default by Tenant. Should the entire security deposit, or If any portion thereofof the Security Deposit is so used or applied, Tenant 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 appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord maintained by Tenant hereunder, then . Landlord shall return to Tenant shall remit to Landlord, within ten (10) days the remaining portion of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant Security Deposit within thirty (30) days after the date that Landlord receives possession of the Expiration Date or earlier termination Premises, unless a determination of the Term amount Landlord is entitled to retain reasonably takes more than thirty days, in which case the remaining portion of the Security Deposit shall be returned to tenant within thirty days after such determination. 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. , Landlord shall deliver or credit the Security Deposit to its successor, and shall give Tenant notice thereof as required by California Civil Code Section 1950.7 or any successor statute, and Landlord thereafter shall have no right to direct further liability for the application of any part return of the Security Deposit. Landlord may deliver the funds deposited hereunder by So long as Tenant to the purchaser of Landlord's interest is not then in the building and/or the Leased Premises in the event that such interest is solddefault under this Lease (beyond any applicable notice and cure period), and thereupon 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 shall be reduced by $32,932.50 (for a total reduction of $98,797.50), and the reduced amount held by Landlord shall be discharged from any further liability with respect promptly returned to such security depositTenant.

Security Deposit. Tenant has deposited A. In addition, upon the execution hereof by Subtenant, Subtenant shall deposit with Landlord Sublandlord a check in the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental amount of Sixty Six Thousand One Hundred and shall be held by Landlord No/100 Dollars ($66,100.00) (“Security Deposit”) as security for the faithful performance and observance by Tenant Subtenant of all the terms of this Sublease. If Subtenant defaults in the full and prompt payment or performance of any of Subtenant’s covenants and obligations under this Sublease (beyond any applicable notice and period of cure), including, but not limited to, the payment of Fixed Rent and Additional Rent, Sublandlord may, but shall not be required to, use, apply or retain the whole or any part of the security so deposited and the interest accrued thereon, if any, including for any sum which Sublandlord shall have expended by reason of Subtenant’s default in respect of any of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Lease Term. IfSublease, at any time during the Lease Term, any payment of Minimum Annual Rent whether accruing before or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent after summary proceedings or other sumre-entry by Sublandlord. Landlord If Sublandlord shall have so use, apply or retain the unrestricted right (but not the obligation) to apply whole or any part of the security or the interest accrued thereon, if any, Subtenant shall within ten days of written demand immediately deposit with Sublandlord a sum equal to the amount so used, applied or retained, as security as aforesaid failing which Sublandlord shall have the same rights and remedies as for the non-payment of Fixed Rent beyond the applicable notice and cure period. If Subtenant shall fully and faithfully comply with all of Subtenant’s covenants and obligations under this Sublease, the security or any balance thereof, with the interest actually earned thereon, shall be returned or paid over to Subtenant within thirty (30) days after the date fixed as the end of this Sublease. B. Provided the following has occurred during the first two (2) years after the Sublease Commencement Date (the “Reduction Event”): (x) Subtenant has reimbursed Sublandlord for all amounts payable pursuant to Paragraph 4(b) hereof, and (y) No event of default shall have occurred and is then continuing hereunder, the amount of the Security Deposit shall be reducible on a one-time basis by the sum of Sixteen Thousand Five Hundred Twenty Five Dollars ($16,525.00) from Sixty Six Thousand One Hundred ($66,100.00) to cure any Default th sum of Forty Nine Thousand Five Hundred Seventy Five Dollars (as described $49,575.00). Upon the occurrence of the Reduction Event, Subtenant may notify sublandlord in Section 20 hereofwriting that the Security Deposit should be reduced (a “Reduction Notice”). For the sake of certainty, the Reduction Notice may not be given before the second anniversary of the Commencement Date. In the event of the failure of Tenant to keep and perform any other itemsReduction Event has occurred, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to LandlordSublandlord shall, within ten (10) business days after receipt of a Reduction Notice, return to Subtenant the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part appropriate portion of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositas set forth above.

Security Deposit. Tenant has deposited with Landlord the sum The Security Deposit, if any, specified in Section 1(a)(12). Said deposit shall constitute advance rental and 1.16 shall be held by Landlord as security for the full and faithful performance by Tenant of each and every term, covenant and condition of this Lease on the part of Tenant to be observed and performed, and Landlord shall have no liability to pay interest thereon nor shall Landlord be required to keep the Security Deposit separate from its general funds. 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 terms of this Lease, then Landlord may, at its option, and without prejudice to any other remedy which Landlord may have on account thereof, apply the Security Deposit or so much thereof as may be necessary to compensate Landlord toward the payment of 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 such event Tenant shall forthwith upon demand restore the Security Deposit to its original amount, and the sum required to so restore the Security Deposit shall be additional rent hereunder. If Tenant shall have fully and faithfully complied with all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Lease Term. IfLease, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, full to Tenant within thirty (30) days following the end of the Expiration Date Term or earlier termination of the Term of this Lease. If any bankruptcy, insolvency, reorganization or other creditor-debtor proceedings shall be instituted by or against Tenant shall have no right or its successors or assigns, Landlord may apply the Security Deposit first to direct the application payment of any part rent, additional rent and other amounts due Landlord hereunder, and the balance, if any, of the Security DepositDeposit may be retained by Landlord in partial liquidation of Landlord's damages. Landlord may deliver the funds deposited hereunder by Tenant Security Deposit to the purchaser of Landlord's interest in the building and/or the Leased Premises Premises, in the event that such interest is sold, and thereupon Landlord shall thereupon be discharged from any further liability with respect to such security depositthe Security Deposit.

Security Deposit. Tenant has deposited Upon the execution of this Sublease, Subtenant shall deposit with Landlord Sublandlord $31,875, representing the sum specified in Section 1(a)(12Basic Rent for the first month of the Term, and $131,586.39 (the "Security Deposit"). Said deposit shall constitute advance rental and shall be held by Landlord , as security for the faithful performance and observance by Tenant Subtenant of all the terms, provisions, agreements, covenants and conditions of this Lease to Sublease. The Security Deposit shall not be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any considered an advance payment of Minimum Annual Basic Rent or Additional Rent herein reserved Charges, and the Security Deposit shall not be overdue considered a measure of Sublandlord's damages in case of the occurrence of any default under this Sublease. Subtenant shall not be entitled to receive any interest on the Security Deposit and unpaidSublandlord may commingle the same with other monies of Sublandlord. In the event Subtenant defaults in respect to any of the terms, provisions, agreements, covenants and conditions of this Sublease including, but not limited to, the Landlord payment of Basic Rent or Additional Charges, and provided Subtenant fails to cure such default after notice from Sublandlord, Sublandlord may, at its Sublandlord's option, appropriate and from time to time, without prejudice to any other remedy, use, apply any portion of said security deposit to or retain the payment of any such overdue rent whole or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit not theretofore applied to cure Basic Rent or Additional Charges to the extent necessary to make good any Default (as described in Section 20 hereof). In the event arrears of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, Basic Rent or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, Additional Charges or any portion thereofdamage, be appropriated injury, expense or liability caused by such default. If Sublandlord shall ever use the Security Deposit not theretofore applied to Basic Rent to pay the sums described above, and applied by Landlord for if this Sublease has not terminated, Subtenant shall immediately deposit with Sublandlord additional monies equal to the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, amount so used within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sumafter request therefore. Tenant's failure to do so If Subtenant shall constitute a breach of the Lease. Should Tenant fully and faithfully comply with all of said the terms, provisions, agreements, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls duethis Sublease, then the security deposit Security Deposit (or such amount as shall not have been applied by Sublandlord) shall be returned in full, without interest, to Tenant Subtenant within thirty (30) days of after the Expiration Date termination or earlier termination of the Term expiration of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositSublease.

Security Deposit. Concurrent with the execution and delivery of this Lease, Tenant has deposited with Landlord shall deposit the sum Security Deposit specified in Section 1(a)(12). Said deposit 1.1 hereof and Landlord shall constitute advance rental and shall be held by Landlord hold the same throughout the Term of this Lease as security for the faithful performance by Tenant of all obligations on the terms, covenants and conditions part of Tenant hereunder. Subject to the terms of this Lease to be kept and performed by Tenant during the Lease Term. IfLease, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) from time to time without prejudice to any other remedy Landlord may have on account thereof, to apply such deposit, or any part thereof to Landlord's damage arising from or to cure any default beyond applicable notice and cure periods of Tenant. If Landlord shall so apply any or all of such deposit, Tenant shall promptly deposit with Landlord the amount so applied to be held as security hereunder and any failure on the part of Tenant to so restore the Security Deposit to cure any Default within five (as described in Section 20 hereof). In the event 5) days of the failure Landlord's demand shall constitute a default of Tenant to keep and perform any other items, covenants and conditions under the Lease. Within thirty (30) days after the expiration or earlier termination of the Lease to be kept and performed surrender of possession of the Premises by Tenant, provided that Tenant is not then Landlordin default, at its option, may appropriate and apply Landlord shall return the entire security deposit, or so much thereof as may be necessary, shall not have been applied in accordance with the terms of this Section 13.18 or as otherwise required to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by cure any existing default of Tenant. Should While Landlord holds such deposit Landlord shall have no obligation to pay interest on the entire security 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 deposit, or any portion thereofpart thereof not previously applied, may be appropriated and applied turned over by Landlord to Landlord's grantee, and, if so turned over, Tenant agrees to look solely to such grantee for proper application and return of the deposit. The holder of a mortgage shall not be responsible to Tenant for the payment of overdue rent, to cure any default, return or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant such deposit, whether or not it succeeds to the purchaser position of Landlord's interest Landlord hereunder, unless such deposit shall have been received in the building and/or the Leased Premises in the event that hand by such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositholder.

Security Deposit. Contemporaneously with the execution of this Lease by Tenant, Tenant has deposited shall deposit with Landlord the sum specified in Section 1(a)(12of Eleven Thousand Four Hundred andThirty Four Dollars and 00/100 Dollars ($11,434.00). Said deposit shall constitute advance rental and shall be held by Landlord Landlordwithout liability for interest as security for the faithful performance by Tenant of all of the terms,conditions, and covenants and conditions of this Lease to be kept and performed Lease. If any of the rents herein reserved or any other sumpayable by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved to Landlord shall be overdue and unpaidunpaid or should Landlord make paymentson behalf of the Tenant, or Tenant shall fail to perform any of the Landlord terms of this Lease, thenLandlord may, at its optionoption and without prejudice to any other remedy which Landlord may have on account thereof, appropriate the entire amount of said deposit and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, amount or so much thereof as may be necessary, necessary to compensate Landlord for toward the payment of rent or additional rent or loss or damage sustained or suffered by Landlord due to such breach by on the part of Tenant. Should ; if only part of said funds are needed to be applied toward such payment(s), then the entire rest of said funds shall be held as a security deposit, or any portion thereof, be appropriated ; and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written forthwith upon demand of Landlord, a sufficient amount in cash to restore the security said deposit to the original sum. Tenant's failure to do so shall constitute a breach sum of the Leasesuch fund which are still available. Should Tenant comply with all of said terms, covenants and conditions of the Lease terms and promptly pay all Minimum Annual Rent of the rentals as they fall due and Additional Rent herein provided as it falls dueall other sums payable by Tenant to Landlord, then the security said deposit shall be returned in full, without interest, full to Tenant within thirty (30) days at the end of the Expiration Date Term. In the event of bankruptcy or earlier termination other debtor-creditor proceedings against Tenant, such amounts from the deposit may be appropriated and shall be deemed to be applied first to the payment of the Term rent and other charges due to Landlord for all periods prior to filing of this Lease. Tenant shall have no right to direct the application of any part of the Security Depositsuch documents. Landlord shall not be required to keep such deposit in a separate account, but may deliver the commingle such deposit with other funds deposited hereunder by Tenant to the purchaser of Landlord's interest Landlord as Landlord deems appropriate in the building and/or the Leased Premises in the event that such interest is sold, its sole and thereupon Landlord shall be discharged from any further liability with respect to such security depositabsolute discretion.

Security Deposit. Tenant has deposited with Landlord shall deposit upon the sum execution of this Lease as a security deposit the Deposit specified in Section 1(a)(121.11, provided, however, the obligation of Tenant to pay the Deposit to Landlord shall be deferred until such time under this Lease (if at all) that Tenant fails to pay Rent when due or otherwise is in default under this Lease (each without regard to any applicable cure periods). Said deposit After the occurrence of such default by Tenant and without regard to whether such default was cured, Tenant shall constitute advance rental and pay the Deposit within five (5) days written notice of Landlord’s demand. The Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions provisions of this Lease to be kept and performed or observed by Tenant. If Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual fails to pay Rent or Additional Rent herein reserved shall be overdue and unpaidother charges due hereunder, the or otherwise defaults with respect to any provision of this Lease, Landlord maymay use, at its option, appropriate and apply or retain all or any portion of said security deposit to the Deposit for the payment of any such overdue rent Rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part charge incurred as a result of the Security Deposit to cure any Default (as described in Section 20 hereof). In the such an event of default, or for the failure payment of Tenant to keep and perform any other items, covenants and conditions sum to which Landlord may become obligated by reason of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit’s default, or so much thereof as may be necessary, to compensate Landlord for any loss or damage sustained which Landlord may suffer thereby. If Landlord so uses or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, applies all or any portion thereofof the Deposit, be appropriated Landlord shall notify Tenant of such use or application, and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten (10) days of the written demand of after Landlord’s demand, a deposit cash with Landlord in an amount sufficient amount in cash to restore the security deposit Deposit to the original sum. full amount thereof and Tenant's ’s failure to do so shall constitute be a material breach of the this Lease. Should Landlord shall not be required to keep the Deposit separate from its general accounts. If Tenant comply with performs all of said termsTenant’s obligations hereunder, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided Deposit, or so much thereof as it falls duehas not theretofore been applied by Landlord, then the security deposit shall be returned in fullreturned, without interestpayment of interest or other increment for its use, to Tenant within thirty (30or, at Landlord’s option, to the last assignee, if any, of Tenant’s interest hereunder) days of at the Expiration Date expiration or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is soldTerm, and thereupon after Tenant has vacated the Premises. No trust relationship is created herein between Landlord shall be discharged from any further liability and Tenant with respect to such security depositthe Deposit.

Security Deposit. Tenant has deposited shall deposit with Landlord as a security deposit under this Lease the sum specified 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 Section 1(a)(12payment of the first month’s Minimum Rent); and (c) an amount 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. Said Such security deposit shall constitute advance rental and shall be held by Landlord Landlord, without interest, as security for the faithful performance by Tenant of all the terms, covenants and conditions terms of this Lease to be kept observed and performed by Tenant during unless Landlord applies it to the Lease TermMinimum Rent as provided above. IfThe security deposit shall not be mortgaged, at assigned, transferred, or encumbered by Tenant without the written consent of Landlord; and any time during such act on the Lease Term, part of Tenant shall be without force and effect and shall not be binding upon Landlord. If any payment of Minimum Annual Rent or Additional Rent herein reserved shall be other sum payable by Tenant to Landlord is overdue and unpaid, the or if Landlord maymakes any payments on behalf of Tenant, at its option, appropriate and apply or if Tenant fails to perform any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event terms of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenantthis Lease, then Landlord, at its optionoption and without prejudice to any other remedy which Landlord may have on account thereof, may appropriate and apply the entire security deposit, such deposit or so much thereof as may be necessary, to compensate necessary toward the payment of the rent or other sum due Landlord for loss by reason of such breach on the part of Tenant or damage sustained or suffered toward the performance of any other overdue obligation of Tenant under this Lease; and Tenant forthwith upon demand by Landlord due shall restore such deposit to its original amount. If Tenant complies with all of the terms of this Lease and pays all Minimum Rent and other sums payable under this Lease, then such breach by Tenant. Should deposit (or the entire security deposit, or any portion thereof, be appropriated and thereof not applied by Landlord for the payment of overdue rent, to cure any default, a default by Tenant) shall be returned to Tenant within sixty (60) days following the end of the Term and ▇▇▇▇▇▇▇▇'s determination of all amounts owing by Tenant pursuant to the provisions hereof. In the event of bankruptcy or other sums due and payable to Landlord by Tenant hereundercreditor proceedings against Tenant, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the such security deposit shall be returned in full, without interest, deemed to Tenant within thirty (30) days be applied first to the payment of rent and other sums due Landlord for periods prior to the Expiration Date or earlier termination commencement of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Depositsuch proceedings. Landlord may deliver the funds deposited hereunder by Tenant such security deposit to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security deposit.

Security Deposit. Tenant has deposited shall deposit with Landlord or Landlord's Agent simultaneously with the sum specified execution of this Lease, the amount stipulated in Section 1(a)(12)1.6 as a security deposit. Said deposit shall constitute advance rental and shall be held by Landlord as security for the faithful performance by Provided Tenant of all the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to is not in default in the payment of Base Annual Rent, Additional Rent or any such overdue rent or other sum. Landlord shall have charges due Landlord, and further provided the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (Demised Premises are left in good condition, reasonable wear and tear excepted, as described in Section 20 hereof)6.10, said deposit (which shall not bear interest to Tenant) shall be returned to Tenant within sixty (60) days after the termination of this Lease. In Notwithstanding the event of foregoing, the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, full or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered partial return by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment Tenant of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore 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 original sumamount, if any, of the security deposit retained by Landlord. If Tenant is in 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 failure Property after Landlord's request to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls dueso, then the security deposit shall be returned in full, without interest, applied to Tenant within thirty (30) days the extent available on account of sums due Landlord or the Expiration Date cost of repairing damages to the Demised Premises or earlier termination of to remove Tenant's Property. In the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver event the funds deposited hereunder by Tenant with Landlord as security are applied during the Lease Term on account of sums due Landlord or to the purchaser 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 the sale or transfer of Landlord's interest in the building and/or the Leased Premises in the event that such interest is soldBuilding, and thereupon Landlord shall have the right to transfer the security deposit to such purchaser or transferee, in which event Tenant shall look only to the new landlord for the return of the security deposit and Landlord shall thereupon be discharged released from any further all liability with respect to Tenant for the return of such security deposit.

Security Deposit. On execution of this Lease, Tenant has deposited shall deposit with Landlord the sum amount specified in the Basic Lease Information and the letter of credit identified in Section 1(a)(1236 below as the Security Deposit (collectively, the "Security Deposit", which term shall include amounts drawn on the letter of credit). Said deposit shall constitute advance rental and shall be held by Landlord , as security for the faithful performance of Tenant's obligations under this Lease. Landlord may (but shall have no obligation to) use the Security Deposit or any portion thereof to cure any breach or default by Tenant under this Lease, to fulfill any of all Tenant's obligations under the termsLease, covenants and conditions or to compensate Landlord for any damage it incurs as a result of this Lease Tenant's failure to be kept and performed by perform any of Tenant's obligations hereunder. In such event, Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the pay to Landlord may, at its option, appropriate and apply any portion of said security deposit on demand an amount sufficient to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of replenish the Security Deposit to cure any Default the full amount of the cash specified in the Basic Lease Information and the applicable Face Amount (as described defined in Section 20 hereof). In the event 36 below) of the failure letter of Tenant to keep and perform any other items, covenants and conditions of credit. If at the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, expiration or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. , Tenant is not in default, has otherwise fully performed all of Tenant's obligations under this Lease, and there are no outstanding Claims (defined in Section 10.1 below, and including all existing and potential Claims) for which Tenant is responsible, Landlord shall have no right return to direct the application of any part of Tenant the Security DepositDeposit or the balance thereof then held by Landlord and not applied as provided above. Landlord may deliver commingle the funds deposited hereunder by Tenant to the purchaser of Security Deposit with Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, general and thereupon other funds. Landlord shall not be discharged from any further liability with respect required to such security depositpay interest on the Security Deposit to Tenant. Tenant acknowledges that Landlord has agreed to accept a letter of credit in lieu of an additional cash deposit as an accommodation to Tenant and Tenant agrees that the letter of credit and all amounts drawn thereunder shall be treated for all purposes under this Lease as if a cash deposit had been tendered to Landlord upon the execution of this Lease.

Security Deposit. Concurrent with the execution of this Lease, Tenant has deposited shall deposit with Landlord the sum specified amount set forth in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord Article 1 as the “Security Deposit” as security for the faithful performance by Tenant of all the terms, covenants and conditions terms of this Lease to be kept and performed by Tenant, and not as prepayment of rent. Landlord may apply such portion or portions of the Security Deposit as are reasonably necessary for the following purposes: (i) to remedy any default by Tenant during in the Lease Termpayment of Base Monthly Rent or Additional Rent or a late charge or interest on defaulted rent; (ii) the reasonable cost to repair damage to the Leased Premises, the Building or the Outside Areas caused by Tenant; (iii) the reasonable cost to clean and repair the Leased Premises, the Building or the Outside Areas following their surrender to Landlord if not surrendered in the condition required pursuant to the provisions of Article 2; and (iv) the reasonable cost to remedy any other default of Tenant to the extent permitted by Law including, without limitation, paying in full on Tenant’s 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 Leased Premises. IfIn this regard, at Tenant hereby waives any time restriction on the uses to which the Security Deposit may be applied as contained in Section 1950.7(c) of the California Landlord Initials W Tenant Initials NH Civil Code and/or any successor statute. In the event the Security Deposit or any portion thereof 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. If Tenant fails to promptly restore the Security Deposit and if Tenant shall have paid to Landlord any sums as “Last Month’s Prepaid Rent”, Landlord may, in addition to any other remedy Landlord may have under this Lease, reduce the amount of Tenant’s Last Month’s Prepaid Rent by transferring all or portions of such Last Month’s Prepaid Rent to Tenant’s Security Deposit until such Security Deposit is restored to the amount set forth in Article 1. Landlord shall not be deemed a trustee of the Security 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 or the Property during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of may pay the Security Deposit to cure any Default subsequent owner in conformity with the provisions of Section 1950.7 of the California Civil Code and/or any successor statute, in which event the transferring landlord shall be released from all liability for the return of the Security Deposit. Tenant specifically grants to Landlord (as described in and Tenant hereby waives the provisions of California Civil Code Section 20 hereof)1950.7 to the contrary) a period of sixty days following a surrender of the Leased Premises by Tenant to Landlord within which to return the Security Deposit (less permitted deductions) to Tenant and provide Tenant with an itemized list of proposed Security Deposit deductions, it being agreed between Landlord and Tenant that sixty days is a reasonable period of time within which to inspect the Leased Premises, make required repairs, receive and verify workmen’s ▇▇▇▇▇▇▇▇ therefore, and prepare a final accounting with respect to such deposit. In no event shall the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security depositSecurity Deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue considered prepaid rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security deposit.

Security Deposit. Tenant Tenant, contemporaneously with the execution ---------------- of this Lease, has deposited with Landlord the sum specified set forth in paragraph (F) of Section 1(a)(12)I of this Lease, the receipt of which is hereby acknowledged by Landlord. Said deposit shall constitute advance rental and shall be held by Landlord Landlord, without liability for interest, as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease by said Tenant to be kept and performed during the Term hereof. Said deposit may be commingled with other funds of Landlord. In the event of the failure of Tenant to keep and perform any of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then at the option of Landlord, at its option, Landlord may appropriate and apply the said entire security deposit, or so much thereof as may be necessary, to compensate Landlord for all loss or damage sustained or suffered by Landlord due to such breach by on the part of Tenant. Should the entire security deposit, or any portion thereof, be so appropriated and or so applied by Landlord for the payment of overdue rent, to cure any default, rent or other sums sum due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten (10) days of upon the written demand of Landlord, forthwith remit to Landlord a sufficient amount in cash to restore the said security deposit to the original sum. sum deposited, and Tenant's failure to do so within five (5) days after receipt of such demand shall constitute a breach of the this Lease. Should Tenant comply with all of said the terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent of the rental herein provided for as it falls due, then the security and all other sums payable by Tenant hereunder, said deposit shall be returned in full, without interest, full to Tenant within thirty (30) days at the end of the Expiration Date Term, or upon the earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security deposit; provided, however, that the purchaser shall agree to assume Landlord's obligations hereunder with respect to said deposit.

Security Deposit. Upon execution of this Lease, Tenant has deposited shall deposit with Landlord the sum specified in Section 1(a)(12)Security Deposit. Said deposit shall constitute advance rental and The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants and conditions terms of this Lease to be kept observed and performed by Tenant. The Security Deposit shall not be mortgaged, assigned, transferred or encumbered by Tenant during and any such act on the Lease Termpart of Tenant shall be without force and effect and shall not be binding upon Landlord. If, at any time during Tenant shall cause the Lease Term, any payment of Minimum 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 herein reserved payable hereunder shall be overdue and unpaidunpaid 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, appropriate option and apply any portion of said security deposit without notice or prejudice to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other itemsremedy which Landlord may have on account thereof, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, Security Deposit or so much thereof as may be necessary, necessary to compensate Landlord for toward the payment of Annual Fixed Rent, Additional Rent or other sums or loss or damage sustained or suffered 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. Should Notwithstanding the entire security depositforegoing, upon the application by Landlord of all or any portion thereof, be appropriated and applied by of the Security 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 overdue rentAdditional Rent for purposes of Section 8.1(i) hereof. So long as Tenant shall not be in default of its obligations under this Lease, to cure any defaultLandlord shall return the Security Deposit, or other sums due and payable to Landlord by Tenant hereunder, then Tenant so much thereof as shall remit to Landlord, within ten (10) days have not theretofore been applied in accordance with the terms of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interestthis Section 4.7, to Tenant within thirty (30) days of promptly following the Expiration Date expiration or earlier termination of the Term term of this Lease and the surrender of possession of the Premises by Tenant to Landlord in accordance with the terms of this Lease. Tenant While Landlord holds the Security Deposit, Landlord shall have no obligation to pay interest on the same and shall have the right to direct 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 any part 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. Landlord may deliver the funds deposited hereunder by Tenant , whether or not it succeeds to the purchaser position of Landlord's interest in Landlord hereunder, unless such holder actually receives the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositSecurity Deposit.

Security Deposit. Tenant has deposited In addition to the payments set forth herein for rent, LESSEE shall, upon execution hereof, deposit with Landlord LESSOR the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental 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 during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit applied against damage to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the premises, including the furnishings and appliances within said unit, common hallways, stairwells and other common areas contiguous to LESSEE’s apartment, and any other expense caused by LESSEE to LESSOR including, but not limited to: repair, reset or replacement of fire alarms; damage to windows and doors in building halls and entry ways, laundry facilities, carpet/vinyl in halls, mailboxes; expense of breaking up parties in halls, entry way or parking lot; removal of garbage, trash, and discarded furniture not placed in dumpster, and any other expense including past due rent, charges, damages, utility bills and attorney’s fees incurred by LESSOR. Said Security Deposit shall be applied to cure any Default (as described in Section 20 hereof)of the aforesaid losses related to the aforesaid unit unless said expense is paid for prior to the end of the term of said lease. In that event or in the event there is no such damage, a refund of said deposit shall be made at the end of the failure term pursuant to statute. LESSOR and/or AGENTS assessment of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sumpremises or furnishings therein caused by LESSEE or its guests shall be binding upon the LESSEE herein. Tenant's Upon repair of and billing for such damage by LESSOR or its AGENT, the LESSEE agrees to pay LESSOR immediately upon receipt of such ▇▇▇▇ for repairs. Upon termination of said Lease, the unit including furnishings and appliances shall be left by LESSEE in a sanitary, clean condition, suitable for immediate lease to another tenant and any loss, costs or expenses occasioned by LESSEE’S failure to do so shall constitute a breach be charged against the aforesaid security deposit. LESSEE further agrees that upon his failure to vacate the leased premises at the termination date of the Lease. Should Tenant comply with all of said termsthis lease, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit LESSEE shall be returned in fullliable for double the amount of rent per month until such time as they vacate the premises. A self addressed stamped envelope must be given to LESSOR upon vacating the premises. If not given, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the a postage and handling fee will be deducted from LESSEE’s Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security deposit.

Security Deposit. Tenant has deposited with Landlord the sum The Security Deposit specified in Section 1(a)(12). Said deposit shall constitute advance rental and 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 condition of this Lease on the part of Tenant to be 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 terms of this Lease, then Landlord may, at its option, and without prejudice to any other remedy which Landlord may have on account thereof, apply the Security Deposit or so much thereof as may be necessary to compensate Landlord toward the payment of 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 such event Tenant shall forthwith upon demand restore the Security Deposit 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 to be kept and performed by Tenant during the Lease Term. IfLease, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, full to Tenant within thirty (30) days following the end of the Expiration Date Term or earlier termination of the Term of this Lease. In the event that any bankruptcy, insolvency, reorganization or other creditor/debtor proceedings shall be instituted by or against Tenant shall have no right or its successors or assigns, Landlord may apply the Security Deposit first to direct the application payment of any part rent, Additional Rent, and other amounts due Landlord hereunder, and the balance, if any, of the Security DepositDeposit may be retained by Landlord in partial Liquidation of Landlord's damages. Landlord may deliver the funds deposited hereunder by Tenant Security Deposit to the purchaser of Landlord's interest in the building and/or the Leased Premises Premises, in the event that such interest is sold, and thereupon Landlord shall thereupon be discharged from any further liability with respect to such security depositthe Security Deposit.

Security Deposit. Concurrently with Tenant's execution of this Lease, Tenant has deposited shall deposit with Landlord the sum specified in Section 1(a)(12of Two Thousand Seven hundred Thirty-Eight Dollars ($2,738.00) (hereinafter the "Security Deposit"). Said deposit shall constitute advance rental and The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants covenants, and conditions of this Lease to be kept and performed by Tenant during the Lease Termterm of this Lease. IfIf Tenant defaults with respect to any provision of this Lease, at any time during including but not limited to the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit provisions relating to the payment of Monthly Base Rent, and any such overdue rent costs, expenses, and charges payable under the provisions of this Lease, Landlord may, but shall not be obligated to use, apply or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any retain all or a part of the Security Deposit to cure for the payment of any Default (as described in Section 20 hereof). In the event amount which Landlord may spend by reason of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, 's default or so much thereof as may be necessary, to compensate Landlord for any other loss or damage sustained or suffered which Landlord may suffer by Landlord due to such breach by reason of Tenant's default. Should the entire security deposit, or If any portion thereofof the Security Deposit is so used or applied, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten (10) days of the after written demand of Landlorddemand, a deposit with Landlord an amount sufficient amount in cash to restore the security deposit Security Deposit to the its original sum. amount; and Tenant's failure to do so shall constitute be a material breach of the this Lease. Should Landlord shall not be required to keep the Security Deposit separate from Landlord's general funds, and Tenant comply with all shall not be entitled to interest on the Security Deposit. If Tenant shall fully and faithfully perform every provision of said termsthis Lease to be performed by Tenant, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit Security Deposit or any balance thereof shall be returned in fullto Tenant or, without interestat Landlord's option, to Tenant the last permitted assignee of Tenant's interest under this Lease within thirty (30) days of the Expiration Date or earlier termination expiration of the Term term of this LeaseLease 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. Tenant shall have no right to direct In the application event of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser termination of Landlord's interest in the building and/or the Leased Premises in the event that such interest is soldthis Lease, and thereupon Landlord shall be discharged transfer the Security Deposit to Landlord's successor in interest whereupon Tenant agrees to release Landlord from liability for the return of the Security Deposit or any further liability with respect to such security depositaccounting therefore.

Security Deposit. Tenant Tenant, contemporaneously with the execution of this Lease, has deposited with Landlord the sum specified in Section 1(a)(12). Said 1.10 hereof, the receipt of which is hereby acknowledged by Landlord, said deposit shall constitute advance rental and shall be held by Landlord as security for being given to secure the faithful performance by the Tenant of all the terms, covenants covenants, and conditions of this Lease by the Tenant to be kept and performed by Tenant during the Lease Termterm hereof. If, at any time during Tenant agrees that if the Lease Term, any payment of Minimum Annual Rent or Additional Rent Tenant shall fail to pay the rent herein reserved shall be overdue and unpaidor any other sum required hereby promptly when due, the Landlord said deposit may, at its option, appropriate and apply the option of the Landlord be applied to any portion of said security deposit to the payment of any such overdue rent or other sum. sum due and unpaid (provided that the Landlord shall have not be required to do so), and if the unrestricted right (but not the obligation) to apply Tenant violates any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other itemsterms, covenants covenants, and conditions of the Lease to be kept and performed by Tenantthis Lease, then Landlordsaid deposit may, at its Landlord's option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, applied to compensate Landlord for loss or damage sustained or any damages suffered by Landlord due as a result of Tenant's default to such breach the extent of the amount of the damages suffered. Nothing contained in this Section 33.26, shall in any way diminish or be construed as waiving any of the Landlord's other remedies as provided in Section 23 hereof, or by Tenantlaw or in equity. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, rent or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten (10) days of on the written demand of Landlord, forthwith remit to Landlord a sufficient amount in cash to restore the said security deposit to the its original sum. amount, and Tenant's failure to do so within five (5) days after receipt of such demand shall constitute a breach of the this Lease. Should Tenant comply with all of said the terms, covenants covenants, and conditions of the this Lease and promptly pay all Minimum Annual Rent and Additional Rent of the rental herein provided for as it falls due, then the and all other sums payable by Tenant to Landlord hereunder, said security deposit shall be returned in full, without interest, full to Tenant within thirty (30) days at the end of the Expiration Date term of this Lease, or upon the earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant Lease pursuant to the purchaser provisions of Landlord's interest in the building and/or the Leased Premises Section 21 hereof, except in the event that such interest is soldthe Demised Premises are sold as a result of the exercise of any power of sale under any mortgage or deed of trust, in which event, this Lease shall be automatically amended to delete any reference to this Section 33.26, and thereupon Landlord Tenant shall be discharged entitled to immediate reimbursement of its security deposit from any further liability with respect the party then holding said deposit. Within five (5) days following the increase of the GMMR pursuant to such the terms contained herein, Tenant shall deliver to Landlord an amount equal to the percentage increase in GMMR times the amount of security depositdeposit Landlord is then entitled to hold hereunder.

Security Deposit. Tenant has deposited herewith deposits with Landlord the sum specified referenced in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord the Basic Terms as security a Security Deposit for the faithful performance by Tenant of all the terms, covenants every covenant and conditions condition of this Lease Lease. Said deposit may be commingled with other funds of Landlord and shall bear no interest. If Tenant shall default with respect to be kept and performed by Tenant during any covenant or condition of this Lease, Landlord may apply the Lease Term. If, at whole or any time during the Lease Term, any payment part of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit such Security Deposit to the payment of any such overdue rent sum in default or other sum. any sum which Landlord shall have the unrestricted right (may be required to spend by reason of Tenant’s default, including, but not the obligation) to apply any part of limited to, applying the Security Deposit first to cure the costs of any Default (as described in Section 20 hereof). In the event restoration and/or cleanup made necessary by reason of above normal wear and tear of the failure of Tenant to keep and perform any other items, covenants and conditions of Premises. It is agreed that the Lease Security Deposit is not to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply considered as the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the last month’s Rent under this Lease. Should Tenant comply with all of said terms, the covenants and conditions of this Lease, the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit Security Deposit or any balance thereof shall be returned in full, without interest, to Tenant within thirty (30) days of a reasonable time after the Expiration Date or earlier termination expiration of the Term hereof. If Landlord uses or applies all or any portion of the deposit, Tenant shall within ten (10) days after written demand therefore deposit cash with Landlord in an amount sufficient to restore the deposit to the full amount hereinabove stated and Tenant’s failure to do so shall be a material breach of this Lease. If the Base Rent shall, from time to time, increase during the term of this Lease, Tenant shall have no right thereupon deposit with Landlord additional sums so that the amount of Security Deposit held by Landlord shall at all times bear the same proportion to direct current Base Rent as the application of any part of the original Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant Deposit bears to the purchaser of Landlord's interest original Base Rent set forth in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositSection 1.01I hereof.

Security Deposit. A. Tenant has deposited with Landlord the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall Item 11 of the Definitions to be held retained by Landlord without liability for interest, as security for the payment of all Rent and other sums of money which shall or may be payable for the full stated term of this Lease, and any extension or renewal thereof, and for the faithful performance of all the terms of this Lease to be observed and performed by Tenant. B. The Security Deposit shall not be mortgaged, assigned, transferred or encumbered by Tenant without the prior written consent of Landlord and any such act on the part of Tenant shall be without force or effect and shall not be binding upon Landlord. If any of the Rent herein reserved or any other sum payable by Tenant to Landlord shall be overdue and unpaid or should Landlord make payments on behalf of Tenant, or if 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 said entire deposit or so much thereof as may be necessary to compensate Landlord toward the payment of Rent or Additional Rent or loss or damage sustained by Landlord due to breach on the part of Tenant; and Tenant shall promptly upon demand restore said security to the original sum deposited. If Tenant should be overdue in the payment of monthly Rent or other sums payable to Landlord on at least two or more occasions during a year, Landlord, at its option, may require Tenant to increase the amount of Security Deposit now held by Landlord by an amount sufficient to cover at least two months Rent or greater amount to be determined at the sole discretion of Landlord. In this event, upon receipt of the additional security sum, Landlord and Tenant shall evidence such receipt by a letter signed and acknowledged by both Landlord and Tenant to be incorporated as part of this Lease amending Section A. hereof, stating the "New Total Amount" so held without liability for any interest. Within Sixty (60) days after the expiration of the tenancy hereby created, whether by lapse of time or otherwise, provided Tenant shall not be in default hereunder and shall have complied with all the terms, covenants and conditions of this Lease to be kept and performed by Tenant during Lease, including the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part yielding up of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit immediate possession to Landlord, within ten (10) days Landlord shall, upon being furnished with affidavits and other satisfactory evidence by Tenant that Tenant has paid all bills incurred by it in connection with its performance of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls duethis Lease, then the security deposit shall be returned in full, without interest, return to Tenant within thirty (30) days of said sum on deposit or such portion thereof then remaining on deposit with Landlord as set forth herein. In the Expiration Date event Tenant has not complied with all the obligations provided for hereunder, Landlord may appropriate a part or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part a of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant Deposit as liquidated damages to the purchaser of Landlordsatisfy Tenant's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositobligations.

Security Deposit. Tenant has deposited shall maintain on deposit with Landlord the sum of $458,496.00 (or such lower amount as specified for the Letter of Credit in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord 7.2 below) as security (the “Security Deposit”) for the faithful performance and observance by Tenant of all the terms, covenants covenants, conditions and conditions provisions of this Lease to be kept Lease. It is agreed that in the event Tenant defaults in respect of any of the terms, covenants, conditions and performed by Tenant during the Lease Term. Ifprovisions of this Lease, at any time during the Lease Termincluding, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaidbut not limited to, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent Fixed Rent and Additional Rent, Landlord may use, apply or other sum. Landlord shall have retain the unrestricted right (but not the obligation) to apply whole or any part of the Security Deposit to cure the extent required for the. payment of any Default (Fixed Rent, Additional Rent or any other sum as described to which Tenant is in Section 20 hereof)default or for any sum which Landlord may expend or may be required to expend by reason of Tenant’s default in respect of any of the terms, covenants, conditions 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 that Tenant shall fully and faithfully comply with all of the terms, covenants, conditions and provisions of this Lease, the Security Deposit shall be returned to Tenant, without interest, after the date fixed as the end of this Lease and after delivery of entire possession of the Premises to Landlord. In the event of a sale of the failure land and the building of which the Premises form a part, Landlord shall have the right to either (i) transfer the Security Deposit to Tenant and Landlord shall thereupon be released by Tenant from all liability for the return of such Security Deposit or (ii) transfer the Security Deposit to keep the new Landlord in which case Tenant agrees to look solely to the new Landlord for the return of said Security Deposit; provided, however, that the new Landlord has given Tenant written notice of receipt of said Security Deposit. 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 perform that neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance. In the event of any bankruptcy or other itemsinsolvency proceeding against Tenant, covenants it is agreed that the Security Deposit held hereunder shall be deemed to be applied by Landlord to Rent and conditions other charges due to Landlord for the last month of the Lease to be kept Term and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to each preceding month until such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest Deposit is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositfully applied.

Security Deposit. Upon execution of this Lease, Tenant has deposited shall deposit with Landlord the sum specified in Section 1(a)(12)Security Deposit. Said deposit shall constitute advance rental and The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants and conditions terms of this Lease to be kept observed and performed by Tenant. The Security Deposit shall not be mortgaged, assigned, transferred or encumbered by Tenant during and any such act on the Lease Termpart of Tenant shall be without force and effect and shall not be binding upon Landlord. If, at any time during If the Lease Term, any payment of Minimum Annual Fixed Rent or Additional Rent herein reserved payable hereunder shall be overdue and unpaidunpaid 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, appropriate and apply any portion of said security deposit upon not less than three (3) days' prior notice to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (Tenant, but not the obligation) without prejudice to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other itemsremedy which Landlord may have on account thereof, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, Security Deposit or so much thereof as may be necessary, necessary to compensate Landlord for toward the payment of Annual Fixed Rent, Additional Rent or other sums or loss or damage sustained or suffered by Landlord due to such breach by Tenant; and Tenant shall forthwith upon demand restore the Security Deposit to the original sum deposited. Should So long as Tenant shall not be in default of its obligations under this Lease, Landlord shall return the entire security depositSecurity 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 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 portion thereofpart thereof not previously applied, shall be appropriated and applied 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 payment return or application of overdue rentthe Security Deposit, whether or not it succeeds to cure any defaultthe 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 other sums due 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 payable 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 hereunderTenant. 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 Mood▇'▇ ▇▇▇estor 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 Mood▇'▇ ▇▇▇estor 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 shall remit 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 Landlord, obtain such substitute Letter of Credit within ten (10) days of the 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 Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned Credit in full, without interest, any further notice to Tenant within thirty (30) days until such substitute Letter of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest Credit is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositprovided.

Security Deposit. Section 15.01. Tenant has deposited with Landlord the sum specified stipulated in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord the Basic Lease Provisions, as security for the full and faithful performance by Tenant of all the terms, covenants and conditions every provision of this Lease to be kept and performed by Tenant. If Tenant during defaults with respect to any provision of this Lease (after notice and the Lease Term. Ifexpiration of any applicable cure period), at any time during including but not limited to the Lease Term, any provisions relating to the payment of Minimum Annual Basic Rent and Additional Rent, Landlord may use, apply or retain all or any part of this security deposit for the payment of any Basic Rent or Additional Rent herein reserved shall be overdue and unpaidor other sum in default, or for the payment of any other amount which Landlord maymay spend or become obligated to spend by reason of Tenant’s default, at its option, appropriate and apply 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 cash with Landlord in amount sufficient to restore the security deposit to the payment its original amount and Tenant’s failure to do so shall be an Event of any such overdue rent or other sumDefault under this Lease. Landlord shall have not be required to keep this security deposit separate from its funds, and Tenant shall not be entitled to interest on such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the unrestricted right security deposit or any balance thereof shall be returned to Tenant (but not or, at Landlord’s option, to the obligationlast assignee of Tenant’s interest hereunder) to apply any part at the expiration of the Security Deposit to cure any Default (as described in Section 20 hereof)Term. In the event of the failure insolvency of Tenant or in the event of the entry of a judgment in bankruptcy in any court against Tenant which is not discharged within thirty (30) days after entry, or in the event a petition is filed by or against Tenant under any chapter of the bankruptcy laws of the State of New Jersey or the United States of America, then and in such event Landlord may require the Tenant to deposit additional security in an amount which in Landlord’s sole judgment would be sufficient to adequately assure Tenant’s performance of all of its obligations under this Lease, including all payments subsequently accruing. Failure of Tenant to keep and perform any other items, covenants and conditions of deposit the Lease to be kept and performed security required by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, this Section within ten (10) days of the after Landlord’s written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a material breach of the Leasethis Lease by Tenant. Should Tenant comply with all The security deposit is being made by means of said termsan irrevocable “evergreen” letter of credit, covenants which shall be in form and conditions substance, and drawn on a bank which is a member of the Lease and promptly pay all Minimum Annual New York clearinghouse, satisfactory to Landlord. It shall have a final expiry of not less than six (6) months after the Expiration Date. In the event that the “Guarantor Loan” (hereinafter defined) shall be accepted by Landlord, then, provided that Tenant shall not be in default in the performance or observance of any of its obligations hereunder, not later than ninety (90) days after the Rent and Additional Rent herein provided as it falls dueCommencement Date, then the security deposit shall be returned reduced by an amount equal to two (2) months Basic Rent and a new letter of credit, in fullsuch reduced amount (but otherwise conforming to the provisions hereof) shall be substituted therefor. As the Basic Rent increases throughout the Term, without interest, to Tenant within thirty (30) days the amount of the Expiration Date or earlier termination of the Term of this Lease. Tenant security shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event be increased accordingly, so that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect at all times have a security deposit letter of credit in an amount equal to such security depositten (10) or twelve (12) months Basic Rent, as the case may be.

Security Deposit. Tenant has deposited with Landlord the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental of [*] and shall be held by Landlord [*]/100 Dollars ($[*]) as security for the full and faithful performance by Tenant of all of the terms, covenants and conditions obligations of Tenant under this Lease to be kept and performed by Tenant during the Lease Term. If, at (all or any time during the Lease Term, any payment part of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaidsuch amount, the “Security Deposit”). If an Event of Default shall occur under this Lease, Landlord maymay use, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply retain all or any part of the Security Deposit to cure for the payment of any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform Fixed or Additional Rent or any other items, covenants and conditions sum in default or for the payment of the Lease any other amount which Landlord may spend or become obligated to be kept and performed spend by Tenant, then Landlord, at its option, may appropriate and apply the entire security depositreason of such Event of Default, or so much thereof as may be necessary, to compensate Landlord for loss any other loss, cost or damage sustained or suffered which Landlord may suffer by Landlord due to reason of such breach by TenantEvent of Default. Should the entire security depositTenant shall, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to within five (5) Business Days after notice from Landlord, within ten (10) days deposit with Landlord cash or a letter of the written demand of Landlord, a credit in an amount sufficient amount in cash to restore the security deposit Security Deposit to the original sumamount then required pursuant to the terms of this Article 30. Tenant's ’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 constitute be a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Landlord shall not, 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 have not assign or encumber any part of the Security Deposit, and no right to direct the application assignment or encumbrance by Tenant of all of any part of the Security DepositDeposit shall be binding upon Landlord, whether made prior to, during, or after the Term. Landlord may deliver shall not be required to exhaust its remedies against Tenant or against the funds deposited hereunder Security Deposit before having recourse to any other form of security held by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon recourse by Landlord to any portion of the Security Deposit shall not affect any remedies of Landlord provided in 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 balance thereof shall be discharged from any further liability with respect returned to such security depositTenant reasonably promptly after the expiration or sooner termination (other than a termination pursuant to Article 16) of the Term and Tenant’s surrender to Landlord of the Premises. * CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

Security Deposit. (a) Tenant has deposited shall deposit with Landlord upon ▇▇▇▇▇▇'s execution hereof the sum specified Security Deposit set forth in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord Paragraph 1.6 of this lease as security for the Tenant's faithful performance by of Tenant's obligations under this lease. If Tenant of all the terms, covenants and conditions of this Lease fails to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual pay Base Rent or Additional Rent herein reserved shall be overdue or otherwise defaults under this lease, and unpaidsuch failure or default by Tenant continues after the giving of all required notices by Landlord and the expiration of all applicable cure periods, then and in any such event, Landlord may use the Landlord may, at its option, appropriate and apply any portion of said security deposit to Security Deposit for the payment of any such overdue rent amount due Landlord or other sumto reimburse or compensate Landlord for any liability, cost, expense, loss or damage (including reasonable attorney's fees) which Landlord may suffer or incur by reason thereof. Tenant shall on demand pay Landlord the amount so used or applied so as to restore the Security Deposit to the amount set forth in Paragraph 1.6 of this lease. Landlord shall have the unrestricted right (but not the obligation) be required to apply keep all or any part of the Security Deposit to cure any Default (as described in Section 20 hereof)an interest bearing account. In Landlord shall, at the event expiration or earlier termination of the failure of Term and after ▇▇▇▇▇▇ has vacated the demised premises, return to Tenant to keep and perform any other items, covenants and conditions that portion of the Lease Security Deposit not used or applied by Landlord. No part of the Security Deposit shall be considered to be kept and performed prepayment for any monies to be paid by TenantTenant under this lease. (b) Tenant shall have the right to deliver to Landlord an unconditional, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord irrevocable letter of credit in substitution for the payment cash Security Deposit required in Paragraph 5(a) above, subject to the following terms and condition. Such letter of overdue rent, credit shall be: (i) in the form attached to cure any default, or other sums due and hereby made a part of this lease as Exhibit B; (ii) at all times in the amount of the Security Deposit set forth in Paragraph 1.6 of this lease and shall permit multiple draws without a corresponding reduction in the amount of the letter of credit; (iii) issued by a commercial bank reasonably acceptable to Landlord from time to time and located in the United States of America; (iv) made payable to Landlord and expressly transferable and assignable at no charge, which transfer/assignment shall be conditioned only upon delivery of notice to the issuer of the letter of credit; (v) payable at sight upon presentment to a local branch of the issuer of a sight draft stating only that Landlord is entitled to draw on the letter of credit pursuant to this lease; (vi) for a term not less than one year; and (vii) contain an "evergreen" provision which provides that the letter of credit will be automatically renewed on an annual basis unless the issuer delivers at least 30 days prior written notice of cancellation to Landlord and Tenant, such that the letter of credit remains in existence through the date occurring 90 days after the expiration of the Term. At least 30 days prior to the then current expiration date of such letter of credit, Tenant shall either: (A) cause such letter of credit to be renewed (or automatically and unconditionally extended) from time to time for a period of one year through the 90th day after the expiration of the Term; or (B) cause such letter of credit to be replaced with cash in the amount of the Security Deposit. Notwithstanding anything in this lease to the contrary, any cure or grace period set forth in Paragraph 13.1 of this lease shall not apply to any of the foregoing, and, specifically, if Tenant fails to timely comply with the foregoing terms of this Paragraph, then Landlord shall have the right to immediately draw upon the letter of credit without notice to Tenant and hold the proceeds as the Security Deposit. Each letter of credit shall be issued by Tenant hereundera commercial bank that has a credit rating with respect to certificates of deposit, short term deposits or commercial paper of at least A-3 (or equivalent) by Moody's Investment Service, Inc., or at least AA (or equivalent) by Standard & Poor's, a division of McGraw Hill, and shall be otherwise acceptable to Landlord, in its reasonable discretion. If the issuer's credit rating is reduced below A-3 (or equivalent) by Moody's Investment Service, Inc. or below AA (or equivalent) by Standard & Poor's, a division of McGraw Hill, or if the financial condition of such issuer changes in any other materially adverse way, then Tenant shall remit obtain from a different issuer a substitute letter of credit that complies in all respects with the requirements of this paragraph, and ▇▇▇▇▇▇'s failure to Landlord, obtain such substitute letter of credit within ten (10) 10 days of the written demand following its receipt of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. 's demand therefor (and Tenant's failure to do so shall shall, notwithstanding anything in this lease to the contrary, constitute a breach Default for which there shall be no notice or grace or cure period applicable thereto other than the aforesaid 10 day period) shall entitle Landlord to immediately draw upon the then existing letter of credit in whole or in part, without notice to Tenant and to hold the proceeds thereof as the Security Deposit. If the issuer of the Lease. Should Tenant comply with all letter of said termscredit is insolvent or placed into receivership or conservatorship by the Federal Deposit Insurance Corporation or Resolution Trust Corporation, covenants and conditions of or any successor or similar entity, or if a trustee, receiver or liquidator is appointed for the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls dueissuer, then Tenant shall obtain from a different issuer a substitute letter of credit that complies in all respects with the security deposit requirements of this paragraph, and ▇▇▇▇▇▇'s failure to obtain such substitute letter of credit within 10 days following its receipt of Landlord's demand therefor (and ▇▇▇▇▇▇'s failure to do so shall, notwithstanding anything in this lease to the contrary, constitute a Default for which there shall be returned no notice or grace or cure periods applicable thereto other than the aforesaid 10 day period) shall entitle Landlord to immediately draw upon then existing letter of credit in fullwhole or in part, without interest, notice to Tenant within thirty (30) days of and to hold the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of proceeds thereof as the Security Deposit. Landlord may deliver shall have the funds deposited hereunder right to assign its interest (including, without limitation, a collateral assignment thereof) in any letter of credit delivered to it by Tenant pursuant to this paragraph to the purchaser holder of any Mortgage and Landlord shall give notice of any such assignment to Tenant. If requested by any such Mortgagee, Tenant shall obtain an amendment to such letter of credit which names such Mortgagee as the beneficiary thereof in lieu of Landlord's interest in . Any failure or refusal of the building and/or issuer to honor the Leased Premises in the event that such interest is sold, and thereupon Landlord letter of credit shall be discharged from any further liability at Tenant's sole risk and shall not relieve Tenant of its obligations hereunder with respect to such security depositthe Security Deposit.

Security Deposit. The Security Deposit shall be delivered to Landlord upon the execution of this Lease by Tenant has deposited with Landlord the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord without liability for interest (except as required by law) and as security for the faithful performance by Tenant of Tenant's obligations under this Lease. The Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant's liability for damages. Landlord may, from time to time, without prejudice to any other remedy, use all or a portion of the termsSecurity Deposit to make good any arrearage of Rent, covenants and conditions to repair damages to the Premises, to clean the Premises upon termination of this Lease or otherwise to be kept satisfy any other covenant or obligation of Tenant hereunder. Following any such 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. If Tenant is not in default at the termination of this Lease, after Tenant surrenders the Premises to Landlord in accordance with this Lease and performed all amounts due Landlord from Tenant are finally determined and paid by Tenant during or through application of the Lease TermSecurity Deposit, the balance of the Security Deposit remaining after any such application shall be returned to Tenant. If, at any time If Landlord transfers its interest in the Premises during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of may assign the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep transferee and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant thereafter shall have no right further liability for the return of such Security Deposit. Tenant agrees to direct look solely to such transferee or assignee for the application of any part return of the Security Deposit. Landlord may deliver and its successors and assigns shall not be bound by any actual or attempted assignment or encumbrance of the funds deposited hereunder Security Deposit by Tenant to the purchaser of LandlordTenant, provided, however, if Tenant's interest in this Lease has been assigned, Landlord shall, provided that Landlord has been furnished with a fully executed copy of the building and/or agreement assigning such Security Deposit, return the Leased Premises Security Deposit to such assignee in accordance with the event that such interest is soldterms and conditions hereof. If Landlord return the Security Deposit to Tenant's assignee as aforesaid, and thereupon Landlord will have no further obligation to any party with respect thereto. Landlord shall not be discharged required to keep the Security Deposit separate from any further liability with respect to such security depositits other accounts.

Security Deposit. Tenant has deposited shall deposit with Landlord the sum specified set forth in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord Article 1.F. of the Basic Lease Provisions (the “Security Deposit”) as security for the full and faithful performance by Tenant of all the terms, covenants and conditions every provision of this Lease to be kept and performed by Tenant. If Tenant during breaches any provision of this Lease, including but not limited to the Lease Termpayment of rent, Landlord may use all or any part of this security deposit for the 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. IfIf any portion of said deposit is so used or applied, at any time during Tenant shall, within five (5) days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its full amount. Tenant agrees that Landlord shall not be 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 Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord provided there exists no default by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit or any balance thereof shall be returned to Tenant (or, at Landlord’s option, to Tenant’s Transferee (as such term is defined in fullArticle 15 below)), without interestprovided 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 date of expiration or earlier termination of this Lease and any amounts so retained and not applied to such reconciliation shall be returned to Tenant within thirty (30) days after Landlord’s delivery of the Expiration Date Statement for such calendar year), (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 under this Lease, to remove cabling and other items required to be removed by Tenant under Article 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), and (iii) any and all amounts permitted by law or earlier termination this Article 4. Tenant hereby waives the provisions of Section 1950.7 of the Term California Civil Code and all other provisions of law, now or hereafter in effect, 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 specified in this LeaseArticle 4 above and/or 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. Notwithstanding the above, provided that Tenant is not in default as of the last day of the twenty-fourth (24th) month and the last day of the thirty-sixth (36th) month of the Term, respectively, on each of the first day of the twenty-fifth (25th) and thirty-seventh (37th) full months of the Term, Landlord shall have no right to direct the application of any part apply one-third (1/3) of the Security DepositDeposit (Le., $11,695.20) to the monthly Basic Rental payable by Tenant for such 25th and 37th months of the Term, and Tenant shall pay when due any deficiency in the monthly Basic Rentals due and payable for such 25th and 37th months of the Term. Landlord may deliver shall retain the funds deposited hereunder by Tenant balance of the Security Deposit (i.e., $11,695.20) to the purchaser of Landlord's interest be used, if at all, as set forth in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositpreceding paragraph.

Security Deposit. Contemporaneously with the execution of this Lease by ▇▇▇▇▇▇, Tenant has deposited with shall pay to Landlord the sum specified in Section 1(a)(12)Security Deposit, which shall be held by Landlord to secure Tenant’s performance of its obligations under this Lease. Said deposit shall constitute advance rental and The Security Deposit shall be held by Landlord as security for the faithful performance by of Tenant of all the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Lease Term. If, If at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved other sum payable by Tenant to Landlord under this Lease shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit the Security Deposit to the payment of any such overdue rent Rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other itemsall of the terms, covenants and conditions of the this Lease to be kept and performed by Tenant, subject to all applicable notice and cure periods, then at Landlord, at its ’s option, Landlord may appropriate and apply the entire security depositSecurity Deposit, or so much thereof as may be necessary, to pay past due Rent, lost future Rent, and/or to compensate Landlord for any and all loss or damage sustained or suffered by Landlord Landlord, due to such any breach by TenantTenant under this Lease. Should the entire security depositSecurity Deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure Rent or any default, or other sums due and payable to Landlord by payable, Tenant hereundershall, then Tenant shall remit to Landlord, within ten (10) days of upon the written demand of Landlord, immediately remit to Landlord a sufficient amount of funds in cash to restore the security deposit Security Deposit to the original sum. Tenant's , and ▇▇▇▇▇▇’s failure to do so within five (5) business days after receipt of such demand shall constitute a breach of the Leasedefault by Tenant. Should Tenant comply with all of said termsLandlord shall, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty forty-five (3045) days of the Expiration Date or earlier termination after expiration of the Term or early termination of this Lease. , return to Tenant shall have no right to direct the application of any part portion of the Security Deposit. Landlord may deliver the funds deposited hereunder Deposit remaining after deducting all damages, charges and other amounts (including, without limitation, Rent) not paid by Tenant to the purchaser extent required under this Lease. Landlord and Tenant agree that such deductions shall include, without limitation, all damages and losses that Landlord has suffered or that Landlord reasonably estimates that it will suffer to the extent caused by any breach of Landlord's this Lease by ▇▇▇▇▇▇. Tenant acknowledges that this Security Deposit is not prepaid Rent and shall not be applied by Tenant to the payment of Rent. Unless required otherwise by applicable Law, the Security Deposit may be commingled with other funds, and no interest in the building and/or the Leased Premises in shall be paid thereon. In the event that such interest is soldLandlord transfers the Security Deposit to Landlord’s successor in interest, and thereupon Landlord shall be discharged from any further liability with respect to the Security Deposit, provided such security depositsuccessor in interest has assumed, in writing, all of Landlord’s obligations under this Lease from and after the effective date of such transfer. It is expressly agreed that the Security Deposit is to secure the obligations under this Lease, including without limitation the payment of Rent for the balance of the Term, and the Security Deposit is not subject to return as a deposit pursuant to California Civil Code Section 1950.7.

Security Deposit. Simultaneously with the execution of this Lease, Tenant has deposited with shall deliver to Landlord the sum specified full amount of the Security Deposit set forth in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord 1(o) of this Lease, as security for the faithful full and timely performance of Tenant’s obligations under this Lease, The parties acknowledge and agree that said Security Deposit (or any pre-paid Rent received from Tenant under this Lease or under any separate agreement in connection therewith) 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 of all the terms, covenants and conditions should be placed in Default with respect to any provision of this Lease to be kept and performed by Tenant during Lease, Landlord may apply all or a portion of said Security Deposit for the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent any sum in Default or Additional Rent herein reserved shall be overdue and unpaid, for the payment of any amount which Landlord may, at its option, appropriate and apply expends by reason of such Default. If any portion of said security Security Deposit is so applied, Tenant shall deposit with Landlord, within five (5) days after receipt of Landlord’s written demand, an amount sufficient to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the restore said Security Deposit to cure any Default (as described in Section 20 hereof)its original amount. In Upon the event expiration of the failure of Tenant this Lease, Landlord shall return said Security Deposit to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlordprovided Tenant has paid to Landlord all sums owing to Landlord under this Lease, at its optionand Tenant has returned the Premises to Landlord pursuant to the terms of Section 15. If upon the termination of this Lease, may appropriate and apply there is accrued Additional Rent which as of such date has not been invoiced to Tenant, or if Landlord reasonably determines that there is damage to the entire security depositPremises for which Tenant is responsible under this Lease, Landlord reserves the right to either (a) withhold Tenant’s Security Deposit, or so much thereof of it as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by deems reasonable until Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability ’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 damages against the Security Deposit held by Landlord and return the positive difference, if any, to Tenant; or (b) reasonably estimate Tenant’s obligation for Additional Rent and damages, and offset such security depositamount against said Security Deposit.

Security Deposit. Upon execution of this Lease, Tenant has deposited shall deposit with Landlord the sum specified in Section 1(a)(12)Security Deposit. Said deposit shall constitute advance rental and The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants and conditions terms of this Lease to be kept observed and performed by Tenant. The Security Deposit shall not be mortgaged, assigned, transferred or encumbered by Tenant during and any such act on the Lease Termpart of Tenant shall be without force and effect and shall not be binding upon Landlord. If, at any time during Tenant shall cause the Lease Term, any payment of Minimum 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 herein reserved payable hereunder shall be overdue and unpaidunpaid 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, appropriate option and apply any portion of said security deposit without prejudice to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other itemsremedy which Landlord may have on account thereof, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, Security Deposit or so much thereof as may be necessary, necessary to compensate Landlord for toward the payment of Annual Fixed Rent, Additional Rent or other sums or loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should , provided that Landlord shall not appropriate and apply the entire security depositSecurity 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, or any portion thereofand until Tenant shall have so restored the Security Deposit to the amount required by Section 1.1, Tenant shall be appropriated and applied by Landlord for deemed to be in default in the payment of overdue rentAdditional Rent for purposes of Section 8.1(a)(I) hereof. So long as Tenant shall not be in default of its obligations under this Lease, to cure any defaultLandlord shall return the Security Deposit, or other sums due and payable to Landlord by Tenant hereunder, then Tenant so much thereof as shall remit to Landlord, within ten (10) days have not theretofore been applied in accordance with the terms of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interestthis Section 4.7, to Tenant within thirty (30) days of promptly following the Expiration Date expiration or earlier termination of the Term term of this Lease and the surrender of possession of the Premises by Tenant to Landlord in accordance with the terms of this Lease. Tenant While Landlord holds the Security Deposit, Landlord shall have no obligation to pay interest on the same and shall have the right to direct 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 any part 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. Landlord may deliver the funds deposited hereunder by Tenant , whether or not it succeeds to the purchaser position of Landlord's interest in Landlord hereunder, unless such holder actually receives the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositSecurity Deposit.

Security Deposit. Concurrent with ▇▇▇▇▇▇’s execution and tendering of this Lease to Landlord, Tenant has deposited with Landlord shall deposit the sum specified in Section 1(a)(12of $[***] (the “Security Deposit”). Said , which amount Tenant shall thereafter at all times maintain on deposit shall constitute advance rental and shall be held by with Landlord as security for Tenant’s full and faithful observance and performance of its obligations under this Lease (expressly including, without limitation, the faithful performance payment as and when due of the Fixed Monthly Rent, Additional Rent and any other sums or damages payable by Tenant of all the terms, covenants hereunder and conditions of this Lease to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent and all other damages for which Tenant shall be liable by reason of any act or other sumomission contrary to any of said covenants or agreements). Landlord shall have the unrestricted right to commingle the Security Deposit with its general assets and shall not be obligated to pay Tenant interest thereon. If at any time Tenant defaults in the performance of any of its obligations under this Lease, after the expiration of notice and the opportunity to cure (but not if a notice and cure period is provided for under this Lease for the obligationparticular default), then, Landlord may: (a) to apply any part as much of the Security Deposit as may be necessary to cure Tenant’s non-payment of the Fixed Monthly Rent, Additional Rent and/or other sums or damages due from Tenant; and/or; (b) if Tenant is in default of any Default of the covenants or agreements of this Lease; apply so much of the Security Deposit as may be necessary to reimburse all expenses incurred by Landlord in curing such default; or (as described c) if the Security Deposit is insufficient to pay the sums specified in Section 20 hereof3.7 (a) or (b). In the event of the failure of Tenant , elect to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire Security Deposit in partial payment thereof, and proceed against Tenant pursuant to the provisions of Article 17 and Article 18 herein. [***] = CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THIS OMITTED INFORMATION. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code, and all other laws, statutes, ordinances or other governmental rules, regulations or requirements now in force or which may hereafter be enacted or promulgated, which (i) establish the time frame by which Landlord must refund a security depositdeposit under a lease, and/or (ii) 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 so much thereof as may be necessaryto clean the Premises, it being agreed that Landlord may, in addition, claim those sums specified in Article 18 below, and/or those sums reasonably necessary to compensate Landlord for any loss or damage sustained or suffered caused by Landlord due to such ▇▇▇▇▇▇’s breach of this Lease beyond all applicable notice and cure periods by Tenant. Should the entire security depositIf, or as a result of ▇▇▇▇▇▇▇▇’s application of any portion thereofor all of the Security Deposit as may be expressly permitted hereunder, be appropriated and applied the amount held by Landlord for the payment of overdue rentdeclines to less than $[***], to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten (10) days of after demand therefor, deposit with Landlord additional cash sufficient to bring the written demand of Landlord, a sufficient amount in cash to restore then-existing balance held as the security deposit Security Deposit to the original sumamount specified hereinabove. Tenant's ’s failure to do so deposit said amount shall constitute a material breach of the this Lease. Should At the expiration or earlier termination of this Lease, Landlord shall deduct from the Security Deposit being held, as may be expressly permitted hereunder, on behalf of Tenant comply with all any unpaid sums, costs, expenses or damages payable by Tenant pursuant to the provisions of said termsthis Lease; and/or any costs required to cure Tenant’s default or performance of any other covenant or agreement of this Lease, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls dueshall, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of after the Expiration Date expiration or earlier termination of the Term of this Lease. Tenant shall have no right , return to direct the application of any Tenant, without interest, all or such part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Deposit as then remains on deposit with Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security deposit.

Security Deposit. Tenant has deposited with Landlord the sum specified shall not be required to pay a security deposit, except if and as expressly provided in Section 1(a)(12this subsection (d). Said If Tenant shall be required to pay a security deposit shall constitute advance rental and (the “Security Deposit”) as provided below, same shall be held by Landlord as security for the faithful prompt and complete performance by Tenant of all the terms, covenants and conditions every provision of this Lease to be kept and performed by Tenant during the Lease TermLease. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved No interest shall be overdue and unpaidpaid to Tenant on the Security Deposit. If Tenant fails to perform any of its obligations hereunder, Landlord may use, apply or retain the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent whole or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security deposit for the payment of (i) any rent or other sums of money which Tenant may not have paid when due, (ii) any sum expended by Landlord in accordance with the provisions of this Lease, and/or (iii) any sum which Landlord may expend or be required to expend by reason of Tenant’s default. The use of the Security Deposit by Landlord shall not prevent Landlord from exercising any other remedy provided by this Lease or by law and shall not operate as either liquidated damages or as a limitation on any recovery to which Landlord may otherwise be entitled. If any portion of the Security Deposit is used, applied or retained by Landlord, Tenant agrees, within five (5) days after the written demand therefor is made by Landlord, to deposit cash with the Landlord in an amount sufficient to restore the Security Deposit to cure its original amount. In addition to the foregoing, if Tenant defaults (irrespective of the fact that Tenant cured such default) more than once in its performance of a monetary obligation and such monetary defaults aggregate in excess of $ under this Lease, Landlord may require Tenant to pay a Security Deposit in an amount equal to twice the Fixed Rent then paid monthly. If Tenant shall fully comply with all of the provisions of this Lease, the Security Deposit, or any Default (balance thereof, shall be returned to Tenant within a reasonable time after the later of the expiration of the Term or Tenant’s surrender of the Premises as described in Section 20 hereof)required hereunder. Upon the return of the Security Deposit to the original Tenant hereunder, or the remaining balance thereof, Landlord shall be completely relieved of liability with respect to the Security Deposit. In the event of the failure of Tenant to keep and perform any other items, covenants and conditions a transfer of the Lease Building, Landlord shall have the right to transfer the Security Deposit and Landlord shall thereupon be kept and performed released by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord Tenant from all liability for the payment return of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the such Security Deposit. Landlord may deliver Upon the funds deposited hereunder assumption of such Security Deposit by the transferee, Tenant agrees to look solely to the purchaser new landlord for the return of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositsaid Security Deposit.

Security Deposit. Upon Tenant's execution of this Lease, Tenant has deposited with Landlord the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord deliver to Landlord, as security a Security Deposit for the faithful performance by Tenant of all the terms, covenants and conditions of its obligations under this Lease to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaidLease, the amount specified in the Basic Lease Information. If Tenant is in default, Landlord may, at its optionbut without obligation to do so, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of use the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security depositDeposit, or any portion thereof, be appropriated and applied to cure the default or to compensate Landlord for all damages sustained by Landlord resulting from Tenant's default, including, but not limited to the Enforcement Expenses. 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 die Security Deposit held to increase such deposit to the amount initially deposited with Landlord. At any time after Tenant has defaulted hereunder, Landlord may require an increase in the amount of the Security Deposit required hereunder for the payment then balance of overdue rentthe Lease Term and Tenant shall, immediately on demand, pay to Landlord additional sums in the amount of such increase. As soon as practicable after the termination of this Lease, Landlord shall return the Security Deposit to Tenant, less such amounts as arc reasonably necessary, as determined solely by Landlord, to cure any defaultremedy Tenant's default(s) hereunder or to otherwise restore the Premises to a clean and safe condition, or other sums due reasonable wear and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of tear excepted. If the written demand of Landlord, a sufficient amount in cash cost to restore the security deposit to Premises exceeds the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part amount of the Security Deposit, Tenant shall promptly deliver to Landlord any and all of such excess sums as reasonably determined by Landlord. Landlord shall not be required to keep the Security Deposit separate from other funds, and, unless otherwise required by law, Tenant shall not be entitled to interest on the Security Deposit. In no event or circumstance shall Tenant have the right to any use of the Security Deposit and, specifically, Tenant may deliver not use the funds deposited hereunder by Tenant Security Deposit as a credit or to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is soldotherwise offset any payments required hereunder, and thereupon Landlord shall be discharged from including, but not limited to, Rent or any further liability with respect to such security depositportion thereof.

Security Deposit. Tenant has deposited with Landlord hereby acknowledges receipt from tenant the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall of , to be held by Landlord as security for the faithful performance by the Tenant of all the termscovenants, covenants conditions, rules and conditions of this Lease to be kept and performed by Tenant during the Lease Termregulations contained herein. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved The security deposit shall be overdue and unpaid, placed by the Landlord mayin an interest-bearing account with High Country Bank of ▇▇▇▇▇, at its option▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, appropriate and apply any portion of said security deposit to interest thereon shall be the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part property of the Landlord. The Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security depositDeposit, or any portion thereof, may be appropriated and applied by Landlord withheld for the payment of overdue unpaid rent, cleaning charges, damages due to cure 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 present when the Landlord, or the Landlord’s agent, inspects the Premises in order to determine if any defaultdamage was done to the Premises. In the event of sale or transfer of the Premises by Landlord, the Landlord shall have the right to transfer, in accordance with applicable law, the Security Deposit to the vendee, or other sums due transferee, and payable to Landlord shall be released by Tenant hereunder, then from all liability for the return of such Security Deposit and Tenant shall remit look to Landlord, within ten (10) days ’s transferee for the return of said Security Deposit. It is agreed that this shall apply to every transfer or assignment made of the Security Deposit to any such transferee. The Security Deposit shall not be mortgaged, assigned or encumbered by Tenant without the prior written demand consent of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure Landlord and any attempt to do so shall constitute a breach be void. Tenant fully understands that should he/she for any reason decide not to take possession of the Lease. Should Tenant comply with all of said termsPremises and/or break this lease, covenants and conditions the Security Deposit remains the property of the Lease Landlord and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls dueis not refundable. The tenant shall have the right to receive, then by first class mail, delivered to the security deposit shall be returned in fulllast known address of the Tenant, without interesta written list of the charges against the Security Deposit claimed by the Landlord, to Tenant within thirty (30) days of after the Expiration Date or earlier termination of the Term tenancy and delivery of this Leasepossession by Tenant. Tenant The Landlord shall have no right be further obligated to direct the application of return any part unused portion of the Security Deposit. Landlord may deliver the funds deposited hereunder , by Tenant first class mail, addressed to the purchaser Tenant’s last known address with thirty (30) days after the termination of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security deposittenancy.

Security Deposit. Tenant has deposited with Landlord the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental execution and shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants and conditions delivery of this Lease to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then LandlordTenant shall deliver to Landlord an unconditional, at its optionirrevocable and renewable standby letter of credit (the “Letter of Credit”) naming Landlord as beneficiary, may appropriate in favor of Landlord and apply in the entire security depositform attached hereto as Appendix 5, or so much thereof as other form reasonably acceptable to Landlord. The Letter of Credit shall be issued by a bank reasonably satisfactory to Landlord with a branch located in California in the principal amount of $179,697.00 (hereinafter, the “Stated Amount”). The form and content of the Letter of Credit shall conform to International Standby Practices 1998 International Chamber of Commerce Publication No. 590. The Letter of Credit shall state that an authorized officer or other representative of Landlord may be necessary, to compensate Landlord make demand on Landlord’s behalf for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security depositStated Amount, or any portion thereof, be appropriated upon certifying that such sum is due and applied owing to Landlord under this Lease, and that the issuing bank must immediately honor such demand, without qualification or satisfaction of any conditions, except the proper identification of the party making such demand. In addition, the Letter of Credit shall indicate that it is freely transferable in its entirety by Landlord as beneficiary to any person or entity to whom Landlord’s leasehold interest in the Building is transferred by Landlord, and that upon receiving written notice of transfer certifying that Landlord’s leasehold interest in the Building has been transferred to such transferee, and upon presentation to the issuing bank of the original Letter of Credit together with Landlord’s payment of the issuing bank’s fee required for transfer of the Letter of Credit from Landlord to such transferee, the issuer or confirming bank will reissue the Letter of Credit naming such transferee as the beneficiary. The Letter of Credit may be re-issued or renewed provided that except as provided herein, the Letter of Credit amount shall not be reduced below the Stated Amount at any time during the Term of the Lease. Each renewal or replacement Letter of Credit shall be in substantially the same form as the original Letter of Credit or such form as is otherwise reasonably acceptable to Landlord. In the event that Tenant fails to renew or re-issue the Letter of Credit at least twenty (20) days prior to the expiration of the then existing Letter of Credit, Landlord shall be entitled to make demand for the Stated Amount of said Letter of Credit and, thereafter, to hold such funds as a cash security deposit in accordance with Section 2.6.5 of the Lease. Once deposited with Landlord, the Letter of Credit (or a replacement thereof reasonably acceptable to Landlord) shall remain in effect for a period of at least sixty (60) days following the Term Expiration. Upon any Default by Tenant beyond the applicable cure period, Landlord may (but shall not be required to) draw upon all or any portion of the Stated Amount of the Letter of Credit, and Landlord may then hold such proceeds as a cash security deposit and/or use, apply or retain all or any part of the proceeds for the payment of overdue rent, to cure any sum which is in default, or for the payment of any other sums due and payable 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. If any portion of the Letter of Credit proceeds is so used or applied, Tenant hereunder, then Tenant shall remit to Landlordshall, within ten (10) days after demand therefor, post an additional Letter of Credit in an amount to cause the aggregate amount of the written demand unused proceeds and such new Letter of Landlord, a sufficient amount Credit to equal the Stated Amount required in cash this Section 2.6. Landlord shall not be required to restore keep any proceeds from the security deposit to the original sum. Tenant's failure to do so shall constitute a breach Letter of the LeaseCredit separate from its general funds. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's transfer its interest in the building and/or Premises during the Leased Premises in Lease Term Landlord shall deposit with the event that purchaser thereof the Letter of Credit and all proceeds of the Letter of Credit required under this Lease to be held by Landlord immediately prior to such interest is soldtransfer, and thereupon Landlord shall be discharged from any further liability with respect to such security depositthe Letter of Credit and said proceeds. Any remaining proceeds of the Letter of Credit held by Landlord after expiration of the Lease Term, after any deductions described in this Section 2.6.1, shall be returned to Tenant or, if there has been an assignment of the Lease, to the last assignee of Tenant’s interest hereunder, after all of Tenant’s obligations have been fulfilled.

Security Deposit. Tenant has deposited with Landlord the sum specified If, in Section 1(a)(12). Said 1.2 hereof, a security deposit is specified, Tenant agrees that the same will be paid upon execution and delivery of this Lease, and that Landlord shall constitute advance rental and shall be held by Landlord hold the same throughout the Term of this Lease as security for the faithful performance by Tenant of all obligations on the terms, covenants and conditions part of this Lease to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sumhereunder. Landlord shall have the unrestricted right (but not the obligation) from time to time without prejudice to any other remedy Landlord may have on account thereof, to apply such deposit, or any part of the Security Deposit thereof, to cure Landlord's damages arising from, or to cure, any Default (of Tenant. If Landlord shall so apply any or all of such deposit, Tenant shall immediately deposit with Landlord the amount so applied to be held as described in Section 20 hereof)security hereunder. In the event of the failure There then existing no Default of Tenant to keep and perform (nor any other itemscircumstance which, covenants and conditions with the passage of time or the Lease to be kept and performed by giving of notice, or both, would constitute a Default of Tenant), then Landlord, at its option, may appropriate and apply Landlord shall return the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should shall have theretofore not been applied in accordance with the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment terms of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interestthis Section 14.17, to Tenant within thirty (30) days of on the Expiration Date expiration or earlier termination of the Term of this LeaseLease and surrender of possession of the Premises by Tenant to Landlord at such time. Tenant While Landlord holds such deposit, Landlord shall have no obligation to pay interest on the same and shall have the right to direct commingle the same with Landlord's other funds. If Landlord conveys Landlord's interest under this Lease, the 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 deposit in accordance with the terms of this Section 14.17, and the return thereof in accordance herewith. The holder of a mortgage shall not be responsible to Tenant for the return or application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant such deposit, whether or not it succeeds to the purchaser position of Landlord's interest Landlord hereunder, unless such deposit shall have been received in the building and/or the Leased Premises in the event that hand by such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositholder.

Security Deposit. Tenant has deposited with shall upon execution of this Lease pay to Landlord the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental of Twenty-Two Thousand Nine Hundred Seventy-Three Dollars and shall Fifty-Eight Cents ($22,973.58) to be held by Landlord as security for the faithful performance by Tenant of all obligations imposed on Tenant hereunder. If Tenant shall perform all such obligations, said sum shall be refunded to Tenant, without interest, at the terms, covenants and conditions end of this Lease to be kept and performed by Tenant during the Lease Term. IfIf Tenant shall default in any such obligation, Landlord shall be entitled to apply such sum, pro tanto, toward Landlord's damages. Notwithstanding the above Tenant shall have the right to replace the cash earlier delivered to Landlord or to initially substitute for same by delivery to Landlord of an unconditional and irrevocable Letter of Credit from an area banking institution approved by Landlord in the amount of Twenty-Two Thousand Nine Hundred Seventy-Three Dollars and Fifty-Eight Cents ($22,973.58) to be held by Landlord as a guaranty for the performance by Tenant of all those covenants and obligations of Tenant as set forth in the Lease. Said Letter of Credit shall contain terms whereby it can be drawn on by Landlord at sight on any time date during the Term of the Lease Termon which issuer shall receive from Landlord a certification signed by Landlord stating that Tenant is in material default under the terms of the Lease. Landlord shall after five (5) days written notice first given to Tenant have the right to make such certification upon any material breach of any provision of this Lease by Tenant and to apply said sum against all amounts then due and owing by Tenant hereunder and/or against sums required to be and actually expended by Landlord hereunder to correct existing defaults by Tenant. Any balance left of the sum received from drawing on the Letter of Credit, any payment after the correction of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to defaults by Tenant and/or the payment of any such overdue rent or other sum. Landlord amounts due by Tenant, shall have be credited against the unrestricted right (but not the obligation) next Rent payment due to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof)Landlord. In the event Landlord shall draw on any Letter of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed Credit as provided by Tenant, then Landlordall as set forth herein, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within replace same no later than thirty (30) days after the date of such drawing, and if same is not replaced it shall constitute a default under the terms of the Expiration Date Lease and Landlord shall have the benefit of all remedies permitted pursuant to the terms of the Lease and the laws of the State of Maryland. Tenant acknowledges and agrees that it shall keep the Letter of Credit in full force and effect throughout the Term of this Lease and any extension or renewal thereof. In the event the term of the Letter of Credit is not coterminous with the Term of this Lease, then not more than forty-five (45) days prior to any expiration date of the Letter of Credit, Tenant shall provide Landlord with the appropriate documentation that said Letter of Credit has been extended and provide Landlord with the new expiration date of same. Should Tenant fail to provide Landlord with such documentation on or before the expiration date of the Letter of Credit, Landlord shall have the right to draw on the entire amount of said Letter of Credit and hold it, without interest, for the benefit of Landlord as security for the faithful performance of the Lease until the Letter of Credit is reinstated or the Term of the Lease expires. If the Letter of Credit is not reinstated, the amount drawn by Landlord shall be returned to Tenant, less all costs incurred by Landlord in correcting or satisfying any default of the Lease, within a reasonable time after the execution or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security deposit.

Security Deposit. Tenant has deposited (a) Contemporaneously with Landlord the execution of this Lease, the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and of Seventy Five Thousand Dollars ($75,000.00) shall be held by delivered to Landlord as a Security Deposit (the “Security Deposit”) pursuant to this Lease, as security for the faithful payment and performance by Tenant of all the termsTenant’s obligations, covenants covenants, conditions and conditions of agreements under this Lease to be kept and performed by Tenant during the Lease TermLease. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord The Security Deposit may, at its optionTenant’s election, appropriate and apply any portion be posted either in cash, or in the form of said security deposit to a letter of credit (“Letter of Credit”) in accordance with the payment provisions of any such overdue rent or other sumparagraph 10 (b) below. Landlord shall have the unrestricted right (but not the obligation) to apply any part of If the Security Deposit to cure any Default (is in the form of cash, it shall bear interest at Crestar Bank’s passbook rate in effect as described in Section 20 hereof). In the event of the failure date of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term execution of this Lease. Tenant , which interest shall have no right be added to direct the application of any 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 portion of the Security Deposit reasonably required to remedy such default, in which event Tenant shall promptly deposit with Landlord the amount necessary to restore the Security Deposit to its original amount. In the case of a non-monetary default, Landlord may deliver the funds deposited hereunder by exercise such right only after providing Tenant with notice of default and opportunity to cure to the purchaser extent and in the manner required under other provisions of this Lease. The Security Deposit shall not be deemed liquidated damages, and Landlord's ’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 transfers its interest in the building and/or Building, Landlord shall transfer the Leased Premises 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 such Security Deposit. (b) Any Letter of Credit tendered as and for the Security Deposit shall be (i) unconditional; (ii) irrevocable; (iii) issued by a financial institution reasonably approved by Landlord in Landlord’s reasonable discretion; (iv) in a form permitting partial and multiple drawings; (v) for either multiple terms of one (I) year each in duration, renewed at least sixty (60) days prior to the expiration thereof, the entire term extending until the date which is ninety (90) days after the expiration of the Lease Term, as such Lease Term may be extended pursuant to the provisions of the Lease, or at Tenant’s option for a single term extending until the date which is ninety (90) days after the expiration of the Lease Term, as such Lease Term may be extended pursuant to the provisions of the Lease; and (vi) be in a form and substance acceptable to the Landlord, in its reasonable discretion. Tenant shall provide Landlord with a replacement Letter of Credit at least sixty (60) days prior to the expiration of the immediately preceding Letter of Credit. If a partial drawing occurs under the Letter of Credit, the Tenant shall, upon demand but not more than five (5) days after such partial drawing, cause the financial institution to reissue the Letter of Credit in the amount then currently required under the terms of this Lease. Notwithstanding the foregoing, the Landlord shall be entitled to draw down on the Letter of Credit, without any notice, at any time on or after the earlier of (i) the occurrence of an Event of Default by Tenant under this Lease; or (ii) the thirtieth (30th) day preceding the expiration date of the Letter of Credit in the event that Tenant is required to and fails to timely replace the Letter of Credit. Landlord shall provide Tenant with written notice of any draws made on the Letter of Credit. (c) Subject to the conditions set forth below, the Security Deposit shall be reduced (i) at the end of the twenty-fourth full calendar month of the Lease Term to Sixty Thousand Dollars ($60,000.00); (ii) at the end of the forty-eighth full calendar month of the Lease Term to Forty Thousand Dollars ($40,000.00); and (iii) at the end of the sixtieth (60th) full calendar month of the Lease Term to Twenty Thousand ($20,000.00), where it shall remain for the balance of the Lease Term, as such interest Lease Term may be extended pursuant to the provisions of this Lease. If the Security Deposit is soldin the form of a Letter of Credit, the Letter of Credit may be replaced by a new Letter of Credit or cash in the amount of the reduced Security Deposit; however, any replacement Letter of Credit shall otherwise be in accordance Paragraph 10 (b) hereof. No reduction of the Security Deposit as provided herein shall occur unless as of the date set forth for each reduction: (x) this Lease shall be in full force and effect, (y) there shall have been no material adverse change in Tenant’s financial condition between the date of execution of this Lease and the date set forth for such reduction, and thereupon (z) Tenant shall not have committed more than two monetary defaults as to which Landlord has issued a notice in accordance with the provisions of Paragraph 17 hereof, nor committed more than two non-monetary defaults as to which Landlord has issued a notice in accordance with the provisions of Paragraph 17 hereof, in the two year period preceding the scheduled reduction. Should the Security Deposit not be reduced as a result of Tenant’s failure to satisfy the conditions set forth in (z) above, but should all such conditions be satisfied as of the next scheduled reduction in the Security Deposit as provided herein, the Security Deposit shall then be reduced to the amount set forth in accordance with the schedule, despite the fact that there was no interim reduction. By way of example, should the Security Deposit not be reduced at the end of the twenty-fourth full calendar month of the Lease Term due to Tenant’s failure to satisfy the conditions set forth in (z) above, the Security Deposit shall remain at Seventy Five Thousand Dollars ($75,000.00) between the twenty-fourth and forty-eighth full calendar months of the Term; provided Tenant satisfies the conditions set forth in (z) above between the twenty-fourth and forty-eighth full calendar months of the Lease Term, and should the conditions set forth in (x) and (y) above both be satisfied, at the end of the forty eighth full calendar month, the Security Deposit shall be discharged from any further liability with respect reduced to such security depositForty Thousand Dollars ($40,000.00).

Security Deposit. Concurrently with Tenant’s execution of this Lease, Tenant has deposited shall deposit with Landlord the sum specified in Section 1(a)(12of THREE THOSAND TWO HUNDRED AND 00/100 DOLLARS ($3,200.00) (the “Security Deposit”). Said deposit shall constitute advance rental and The Security Deposit 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 Lease Termterm hereof. IfIf Tenant defaults with respect to any provision of this Lease, at any time during including the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit provisions relating to the payment of any such overdue rent or other sum. Rent, Landlord shall have the unrestricted right may (but shall not the obligationbe required to) to use, apply or retain all or any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, such default or so much thereof as may be necessary, to compensate Landlord for any other loss or damage sustained or suffered which Landlord may suffer by Landlord due to such breach by reason of Tenant’s default. Should the entire security deposit, or If any portion thereofof said deposit is so used or applied, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten (10) days of the after written demand of Landlordtherefor, a deposit cash with Landlord in an amount sufficient amount in cash to restore the security deposit Security Deposit to the its original sum. amount; Tenant's ’s failure to do so shall constitute be a material breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Landlord shall not be required to keep the Security Deposit separate from its general funds, and Tenant shall have no right not be entitled to direct interest on such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the application Security Deposit or any balance thereof shall be returned to Tenant (or, at Landlord’s option, to the last assignee of any part Tenant’s interest hereunder) upon the expiration of the Lease term and Tenant’s vacating the Premises; provided, however, that Landlord may elect in its reasonable discretion to retain a portion of the Security Deposit. Landlord may deliver Deposit in an amount composed of any or all of the funds deposited hereunder following: (i) any unpaid amounts owed to Landlord, (ii) the cost of any damage (excluding normal wear and tear or damage resulting from the approved installation of wall hangings by Tenant Landlord) to the purchaser Premises, and (iii) the costs of Landlord's interest removing any personal property refuse or debris left in the building and/or Premises at the Leased Premises in expiration of the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositLease.

Security Deposit. Landlord acknowledges receipt from the Tenant has deposited with Landlord of the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall of Twelve Thousand, Six Hundred & No/100 Dollars ($ 12,600.00 ) to be held retained by Landlord without responsibility for payment of interest thereon, as security for the faithful performance by Tenant of all the terms, covenants terms and conditions of this Lease Agreement to be kept and performed by Tenant during the Lease Term. IfTenant, at any time during the Lease Term, any including payment of Minimum Annual Rent or Additional Rent herein reserved shall all rent due under the terms hereof. Deductions may be overdue and unpaid, made by Landlord from the Landlord may, at its option, appropriate and apply any portion amount so retained for the reasonable cost of said security deposit repairs to the payment Leased Premises (ordinary wear and tear, acts of God, casualties, condemnation, Hazardous Materials (other than those stored, used or disposed of by Tenant in or about the Leased Premises in violation of Hazardous Materials Laws) and Alterations with respect to which Landlord has not reserved the right to require removal excepted), for any such overdue rent or other sum. Landlord shall have delinquent under the unrestricted right (but not the obligation) to apply terms hereof and/or for any part of the Security Deposit sum used in any manner to cure any Default (as described in Section 20 hereof)default of Tenant under the terms of this Lease. In the event of deductions are so made, the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten (10) days after receipt of notice from the written demand of Landlord, redeposit with the Landlord such amounts so expended so as to maintain the deposit in the amount as herein provided for, and failure to so redeposit shall be deemed a sufficient amount in cash failure to restore pay rent under the security deposit terms hereof. Nothing herein contained shall limit the liability of Tenant as to any damage to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Leased Premises, and Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of responsible for the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application total amount of any part damage and/or loss occasioned by actions of the Security DepositTenant. Landlord may deliver the funds deposited hereunder by Tenant to the any purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is shall be sold, and thereupon Landlord shall be discharged from any further liability with respect to such security deposit. Landlord shall return the Security Deposit or balance thereof to Tenant within thirty (30) days after Tenant vacates the Leased Premises.

Security Deposit. Tenant has deposited with Landlord Any cash Security Deposit, to the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held extent a cash Security Deposit is permitted by Landlord as security for the faithful performance in its sole and absolute discretion, paid by Tenant to Landlord shall remain the sole and separate property of all Landlord until actually repaid to Tenant (or at Landlord’s option the termslast assignee, covenants and conditions if any, of this Lease to be kept and performed Tenant’s interest hereunder), said sum not being earned by Tenant during the Lease Termuntil all conditions precedent for its payment to Tenant have been fulfilled. IfAs this sum both in equity and at law is Landlord’s separate property, at any time during the Lease TermLandlord shall not be required to (1) keep said deposit separate from his general accounts, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid(2) pay interest, the Landlord may, at or other increment for its option, appropriate and apply any portion of said security deposit use. If Tenant fails to the payment of any such overdue pay rent or other sum. Landlord charges when due hereunder, or otherwise defaults with respect to any provision of this Lease, including and not limited to Tenant’s obligation to restore or clean the Leased Premises following vacation thereof, Tenant, at Landlord’s election, shall be deemed not to have earned the unrestricted right (but not the obligation) to apply any part repayment of those portions of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, used or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue any rent or other charges 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. Landlord may retain such portion of the Security Deposit as it reasonably deems necessary to restore or clean the Leased Premises following vacation by Tenant. The Security Deposit is not to be characterized as rent until and unless so applied in respect of a default by Tenant. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code, and all other provisions of law, 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 cure any default, or other sums due and payable to Landlord repair damage caused by Tenant hereunderor to clean the Leased Premises, then 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 act or omission of Tenant or any officer, employee, agent or invitee of Tenant. If Landlord elects to use or apply all or any portion of the Security Deposit as provided in Section 3.5, Tenant shall remit to Landlord, within ten (10) days after written demand therefor pay to Landlord in cash, an amount equal to that portion of the written demand of Security Deposit used or applied by Landlord, a sufficient amount in cash to restore the security deposit to the original sum. and Tenant's ’s failure to so do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term a material breach of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest The ten (10) day notice specified in the building and/or the Leased Premises in the event that such interest is soldpreceding sentence shall insofar as not prohibited by law, and thereupon Landlord shall be discharged from any further liability with respect to such security depositconstitute full satisfaction of notice of default provisions required by law or ordinance.

Security Deposit. Tenant has deposited with Landlord the sum specified If, in Section 1(a)(121.1 hereof, a security deposit is specified, Tenant agrees that the same will be paid upon execution and delivery of this Lease, and that Landlord shall hold the same, throughout the term of this Lease (including any extension thereof). Said deposit shall constitute advance rental and shall be held by Landlord , as security for the faithful performance by Tenant of all obligations on the terms, covenants and conditions part of this Lease Tenant to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sumperformed. Landlord shall have the unrestricted right (but not the obligation) from time to time without prejudice to any other remedy Landlord may have on account thereof, to apply such deposit, or any part thereof, to Landlord's damages arising from any default on the part of Tenant. If Landlord so applies all or any portion of such deposit, Tenant shall within seven (7) days after notice from Landlord deliver cash to Landlord in an amount sufficient to restore such deposit to the Security Deposit to cure any Default (as described full amount stated in Section 20 hereof)1.1. In Tenant not then being in default and having performed all of its obligations under this Lease, including the event payment of all Annual Fixed Rent, Landlord shall return the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should shall not have theretofore been applied in accordance with the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment terms of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interestthis Section 8.20, to Tenant within thirty (30) days of on the Expiration Date expiration or earlier termination of the Term term of this LeaseLease and surrender possession of the Premises by Tenant to Landlord in the condition required in the Lease at such time. Tenant While Landlord holds such deposit, Landlord shall have no obligation to pay interest on the same and shall have the right to direct commingle the same with Landlord's other funds. If Landlord conveys Landlord's interest under this Lease, the 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 deposit in accordance with the terms of this Section 8.20, and the return thereof in accordance herewith. Neither the holder of any mortgage nor the lessor in any ground lease on property which includes the Premises shall ever be responsible to Tenant for the return or application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant such deposit, whether or not it succeeds to the purchaser position of Landlord's interest Landlord hereunder, unless such deposit shall have been received in the building and/or the Leased Premises in the event that hand by such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositholder or ground lessor.

Security Deposit. If so specified in the Basic Lease Information, Tenant has deposited shall deposit with Landlord the sum specified in Section 1(a)(12)Security Deposit upon the execution of this Lease by Tenant. Said deposit shall constitute advance rental and The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all the termsits obligations under this Lease. If Tenant fails to pay any Rent due hereunder, covenants or otherwise commits a default (after applicable notice and conditions cure periods) with respect to any provision of this Lease to be kept and performed by Tenant during the Lease Term. IfLease, at any time during the Lease TermLandlord may use, any payment of Minimum Annual Rent apply or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply retain all or any portion of said security deposit to the Security Deposit for the payment of any such overdue rent Rent or other sum. Landlord shall have for the unrestricted right (but not the obligation) to apply any part payment of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions amounts expended or incurred by Landlord by reason of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit's default, or so much thereof as may be necessary, to compensate Landlord for any loss or damage sustained which Landlord may incur thereby (subject to the provisions of California Civil Code Section 1950.7(c) and any similar or suffered successor statute providing 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). Exercise by Landlord due to such breach by Tenantof its rights hereunder shall not constitute a waiver of, or relieve Tenant from any liability for, any default. Should the entire security deposit, If Landlord so uses or applies all or any portion thereofof the Security Deposit, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten (10) days of the written after demand of by Landlord, a deposit cash with Landlord in an amount sufficient amount in cash to restore the security deposit Security Deposit to the original sumits full amount. If Tenant performs all of Tenant's failure to do obligations hereunder, the Security Deposit, or so shall constitute a breach of the Lease. Should Tenant comply with all of said termsmuch thereof as has not theretofore been applied by Landlord, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in fullreturned, without interest, to Tenant (or, at Landlord's option, to the last assignee, if any, of Tenant's interest under this Lease) within thirty (30) days after the later of (i) the Expiration Date date of expiration or earlier termination of this Lease, or (ii) vacation of the Term of Premises by Tenant if the Premises has been left in the condition specified by this Lease. Tenant shall have no right to direct the application of any part Landlord's receipt and retention of the Security DepositDeposit shall not create any trust or fiduciary relationship between Landlord and Tenant and Landlord need not keep the Security Deposit separate from its general accounts. Landlord may deliver Subject to Section 22.1, upon termination of the funds deposited hereunder by Tenant to the purchaser of original Landlord's (or any successor owner's) interest in the building and/or Premises, the Leased Premises in the event that original Landlord (or such interest is sold, and thereupon Landlord successor) shall be discharged released from any further liability with respect to the Security Deposit upon the original Landlord's (or such security depositsuccessor's) compliance with California Civil Code Section 1950.7(d), or successor statute.

Security Deposit. Section 25.1 Tenant has deposited with Landlord the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord the Definition section of this Lease as security for the faithful return of the Premises in good order and condition and the full performance by Tenant of all the terms, covenants and conditions every provision of this Lease to be kept and performed by Tenant during Tenant. The security deposit shall not be applied to the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent, provided however, that if Tenant defaults with respect to any provision of this Lease, Landlord any use, apply or retain all or any part of this security deposit for the payment of any base Rent or and Additional Rent herein reserved shall be overdue and unpaidin default, or for the payment of any other amount which Landlord maymay spend or become obligated to spend by reason of Tenant's default, at its optionor to compensate Landlord for any other less, appropriate and apply cost or damage which Landlord may suffer by reason of Tenant's default. If any portion of said security deposit to the payment of any such overdue rent is so used or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of applied, Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten (10) days of the after written demand of Landlorddemand, a deposit cash with Landlord in an amount sufficient amount in cash to restore the security deposit to its original amount. For full security deposit reimbursement the original sumfollowing conditions must be met: 1) All walls must be clean and free of holes. 2) Any overhead door must be free of any broken panels, cracked lumber or dented panels. Tenant's failure The overhead door springs, rollers, tracks, motorized door operator, and all other items pertaining to do so the overhead door must also be in good working condition. 3) All floors must be clean and free of excessive dust, dirt, grease, oil and stains. 4) No ceiling tiles shall constitute a breach be missing or damaged. 5) All trash must be removed from both inside and outside of the LeaseBuilding. 6) All lights bulbs and ballast's must be working. 7) The Premises must otherwise be in good conditions, reasonable wear and tear excepted. Should Tenant comply In the event tenant has complied with all of said termsthe above conditions, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then Landlord shall return the security deposit shall be returned in full, (without interest, ) to Tenant within thirty sixty (3060) days of after either the Expiration Date termination or earlier termination of the Term expiration of this Lease. Tenant shall have no right to direct , or the application of any part surrender and acceptance by Landlord of the Security DepositPremises. Notwithstanding the foregoing, Landlord may deliver retain the funds deposited hereunder security deposit for non-payment of Base Rent or Additional Rent, utility charges, costs incurred relating to abandonment of the Premises, repairs, work contracted for by the Tenant or any other charge due under this Lease by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security deposit.

Security Deposit. Tenant has deposited The TENANT, prior to the commencement of operations, shall deposit with Landlord the sum specified COUNTY a security deposit approximately three (3) times the estimated monthly rent, fees and charges as determined by the Airport Director. Concurrently with each revision of the rent pursuant to Section 4.01 in Section 1(a)(12). Said this LEASE, the security deposit shall constitute advance rental and to be provided by the TENANT shall be held adjusted to approximately four (4) times the estimated monthly rent, fees and charges as determined by Landlord as security for the Airport Director to guarantee the faithful performance by Tenant the TENANT of its obligations under this LEASE and the payment of all rent, fees and charges due hereunder. The security deposit shall take one of the forms set out below and shall guarantee the TENANT's full and faithful performance of all the terms, covenants covenants, and conditions of this Lease LEASE: A. 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 LEASE terms, covenants, and conditions are on deposit and guaranteed for payment, and agreeing that said funds shall be trust funds securing the TENANT's performance and that all or any part shall be paid to the COUNTY, or order upon demand by the Airport Director. Both the financial institution(s) and the form of the instrument(s) must be approved by the Airport Director. B. A Faithful Performance Bond executed by a surety company or financial institution qualified and admitted to do business in the State of California and issued in a form approved by the COUNTY. Under the bond, the surety company shall guarantee to the COUNTY full and complete performance of all the terms, conditions and covenants herein to be kept and performed by Tenant during on the Lease Term. Ifpart of the TENANT, at any time during including the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved use fees, charges, rent, as well as any and all other payments. Said bond shall be overdue and unpaidmaintained at the cost of the TENANT throughout the existence of this LEASE. Said Surety shall give the Airport Director a minimum (30) days prior written notice of cancellation or material change in said bond. Such cancellation or material change without the Airport Director's prior written consent shall constitute a default under this LEASE. Regardless of the form in which the TENANT elects to make said security deposit, the Landlord may, at its option, appropriate and apply all or any portion of said the principal sum shall be available unconditionally to the COUNTY for correcting any default or breach of this LEASE by the TENANT, its successors or assigns, or for payment of expenses incurred by the COUNTY as a result of the failure of the TENANT, its successors or assigns, to faithfully perform all terms, covenants, and conditions of this LEASE. Should the TENANT elect to provide either an Instrument of Credit or a Faithful Performance Bond to fulfill the security deposit to requirements of this LEASE, said instrument or bond shall have the effect of releasing depository or creditor therein from liability on account of the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part all of the Security Deposit principal sum to cure any Default (as described in Section 20 hereof)the COUNTY, or order upon demand by the Airport Director. In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, Airport Director withdraws all or any portion thereofof the security deposit as provided herein, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to LandlordTENANT shall, within ten (10) days of any withdrawal by the written demand of LandlordAirport Director, a sufficient amount in cash to restore replenish the security deposit to maintain it at amounts herein required throughout the original sumLEASE term. Tenant's failure Failure to do so shall constitute be deemed a breach default and shall be grounds for immediate termination of the Leasethis LEASE. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then The TENANT shall be obligated to maintain the security deposit in effect until the expiration date of the LEASE. The security deposit, after deduction of all amounts due the COUNTY, shall be returned in fullrebated, without interestreassigned, released or endorsed by the COUNTY to Tenant within thirty the TENANT or order, as applicable, after one hundred twenty (30120) days have elapsed, or at a time to be determined by the Airport Director, following the expiration date of the Expiration Date or earlier termination of LEASE term, provided the Term TENANT has fully and faithfully performed each and every term, covenant, and condition of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositLEASE.

Security Deposit. Tenant has deposited with Landlord the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of Tenant's obligations under this Lease. The Security Deposit is not an advance rental deposit or a measure of Landlord's damages in case of Tenant's default. Upon each occurrence of a Default, Landlord may use all the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure pay delinquent payments due under this Lease, and the cost of any Default (as described in Section 20 hereof)damage, injury, expense or liability caused by such Default, without prejudice to any other remedy provided herein or provided by law. In the event Upon any such use of all or any portion of the failure Security Deposit, Tenant shall pay Landlord on demand the amount that will restore the Security Deposit to its original amount. Upon bankruptcy or other 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 periods prior to the filing of such proceedings. Landlord's obligation respecting the Security Deposit is that of a debtor, not a trustee; no interest shall accrue thereon. The Security Deposit shall be the property of Landlord, but the balance remaining, if any, after Tenant's obligations under this Lease have been completely fulfilled shall be paid to Tenant. Landlord shall be released from any obligation with respect to the Security Deposit upon transfer of this Lease and the Premises to a person or entity assuming Landlord's obligations under this Section 6. Tenant hereby waives the provisions of any law, 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 act or omission of Tenant to keep and or any officer, employee, agent or invitee of Tenant. If Tenant shall fully perform any other items, covenants and conditions every provision of the this Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security depositSecurity Deposit, or any portion balance thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in fullto Tenant (or, without interestat Landlord's option, to Tenant the last assignee of Tenant's interest hereunder) within thirty (30) 60 days of after the Expiration Date expiration or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security deposit.

Security Deposit. Tenant has deposited with Landlord (a) Upon Subtenant’s execution and delivery of this Sublease, Subtenant shall pay to Sublandlord the sum specified of $205,254.60 in Section 1(a)(12cash or irrevocable standby letter of credit (the “Security Deposit”). Said deposit shall constitute advance rental and shall , to be held by Landlord Sublandlord as security for the faithful performance and observance by Tenant Subtenant of all the terms, covenants and conditions of this Lease to Sublease, it being expressly understood that the Security Deposit shall not be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any considered an advance payment of Minimum Annual Rent rent or Additional Rent herein reserved shall be overdue and unpaid, measure of Sublandlord’s damages in case of default by Subtenant. If Subtenant provides cash to fund the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment upon execution of any such overdue rent or other sum. Landlord this Sublease, Subtenant shall have the unrestricted right option to exchange such cash in full for an irrevocable letter of credit within sixty (60) days after execution. Subtenant agrees that any irrevocable letter of credit shall be drawn on a US commercial bank and in a form substantially acceptable to Sublandlord. Upon default by Subtenant, Sublandlord, from time to time, without prejudice to any other remedy, may (but shall not be required to) apply the obligation) Security Deposit against any arrearages of Base Sublease Rent, Additional Rent, or any other damage, injury, loss, cost, expense or liability caused to apply Sublandlord by such default on the part of Subtenant. Should all or any part of the Security Deposit to cure any Default (as be used for the purposes described in Section 20 hereof). In above during the event term of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenantthis Sublease, then LandlordSubtenant shall remit to Sublandlord immediately (and in all events within not more than five days) after Sublandlord’s request therefor, at the amount necessary to restore the Security Deposit to its optionoriginal balance. Subtenant’s failure to restore the Security Deposit upon notice from Sublandlord shall be a material breach of this Sublease. Upon any termination of Sublandlord’s interest in the Premises, may appropriate and apply Sublandlord shall have no further obligation to Subtenant with respect to the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, Security Deposit or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due hereunder and payable to Landlord prepaid by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days Subtenant upon transfer of the written demand of Landlord, a sufficient amount Security Deposit and any other such sums to Sublandlord’s successor in cash interest. No interest shall be payable on the Security Deposit and Sublandlord shall have no obligation to restore keep the security deposit Security Deposit separate from its general funds unless otherwise required by applicable Law. Subject to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said termsrequirements of, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls dueimposed by, then the Laws applicable to security deposit shall be returned in fulldeposits under commercial leases, without interestSublandlord shall, to Tenant within thirty (30) days following the later to occur of the Expiration Date or earlier termination following: (i) the expiration of the Term Sublease, and (ii) the date on which Subtenant surrenders possession of this Lease. Tenant shall have no right the Subleased Premises to direct Sublandlord in the application of any part condition required hereunder, including, without limitation the conditions set forth in Section 11 below, return to Subtenant the portion of the Security DepositDeposit remaining after deducting all damages, charges and other amounts permitted by Law. Landlord Sublandlord and Subtenant agree that such deductions shall include, without limitation, all damages and losses that Sublandlord has suffered or that Sublandlord reasonably estimates that it will suffer as a result of any breach of this Sublease by Subtenant. Subtenant hereby waives the protections of Section 1950.7(c) of the California Civil Code, as it may deliver hereafter be amended, or similar laws of like import. (b) Notwithstanding the funds deposited hereunder by Tenant foregoing provisions of this Section 3.3(a) to the purchaser of Landlord's interest contrary, provided that: (A) Subtenant has not been late in the building and/or payment of any rent due under the Leased Premises in Sublease more than once during the event that immediately preceding twelve (12)-month period, (B) no Event of Default by Subtenant under this Sublease has occurred and is still continuing as of the effective date of reduction with no apparent effort by Subtenant to cure such interest is soldEvent of Default as reasonably determined by Sublandlord, and thereupon Landlord (C) Subtenant has achieved net proceeds from an equity financing transaction equal to or greater than $15,000,000 as evidenced by Subtenant’s most current financial statements which shall be discharged from either: (i) audited financial statements, or (ii) unaudited financial statements certified to be true and correct by a senior officer of Subtenant, then Subtenant shall be permitted to decrease the amount of the Security Deposit to $68,418.20. The amount to be refunded to Subtenant pursuant to the preceding sentence shall be credited against rent next due hereunder within thirty (30) days after Subtenant delivers to Sublandlord the financial statement(s) which evidence satisfaction of the requirement set forth in (C) above. Notwithstanding the foregoing, in no event shall any further liability such reduction be construed as an admission by Sublandlord that Subtenant has performed all of its covenants and obligations hereunder. Moreover, if an Event of Default with respect to such security depositthe payment of Base Sublease Rent or Additional Rent occurs beyond applicable cure periods then, upon Sublandord’s written demand therefor delivered to Subtenant, Subtenant shall be required to restore the Security Deposit to the originally required amount of $205,254.60.

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 sum specified "Second Additional Letter of Credit") in Section 1(a)(12)the amount of $450,000 for the benefit of Landlord, issued by a major banking institution, and in form and substance reasonably acceptable to Landlord. Said deposit shall constitute advance rental and The Second Additional Letter of Credit 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 during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions provisions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit. If Tenant fails to pay rent or other sums due hereunder, or so much 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 as for the payment of any rent or other sum in default or for the payment of any other sum to which Landlord may be necessarybecome obligated by reason of Tenant's default, or to compensate Landlord for any loss or damage sustained which Landlord may suffer thereby. If Landlord so uses or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, applies all or any portion thereofof the proceeds of the Second Additional Letter of Credit, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days after demand therefor either deposit with Landlord a substitute Second Additional Letter of Credit in the amount of the written demand Second Additional Letter of LandlordCredit prior to such draw by Landlord hereunder, or deposit with Landlord as a sufficient amount in cash to restore the security deposit cash equal to the original sum. amount drawn by Landlord under the Second Additional Letter of Credit, and Tenant's failure to do so shall constitute be a material breach of the Lease. Should Landlord shall not be required to pay interest on, or keep any cash deposited by Tenant comply with all hereunder, or drawn by Landlord under the Second Additional Letter of said termsCredit, covenants separate from its general accounts. (b) Provided that Tenant has not been in default under the Lease, the Second Additional Letter of Credit amount shall be reduced to $365,000.00 on February 1, 2001, to $280,000.00 on February 1, 2002, and conditions to $195,000.00 on February 1, 2003. Upon such final reduction, Tenant shall provide to Landlord a Second Additional Letter of Credit in the amount of $195,000.00 for the balance of the Lease term of the Lease. If at any time during the term of the Lease, Tenant shall not have provided to Landlord a substitute Second Additional Letter of Credit or renewal of the Second Additional Letter of Credit at least ten (10) days prior to the expiration date of the Second Additional Letter of Credit held by Landlord hereunder, Landlord may draw the full amount of the Second Additional Letter of Credit, and promptly pay all Minimum Annual Rent and Additional Rent herein provided hold the proceeds thereof as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security deposithereunder.

Security Deposit. Upon execution of this Lease, Tenant has deposited shall deposit with Landlord the sum Security Deposit specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by I. Landlord as security for the faithful performance by Tenant of may apply all the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, unpaid Rent or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to defaults of Tenant. If Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of uses any part of the Security Deposit, Tenant shall restore the Security Deposit to its original amount within 10 days after Landlord’s written request. Tenant’s failure to do so shall be a default under this 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 deliver the funds deposited hereunder may, by written notice to Tenant, require Tenant to pay Landlord an amount equal to two months Base Rent as an increase in the purchaser Security Deposit, due within 5 days after Tenant’s receipt of Landlord's the notice. If Landlord transfers its interest in the building and/or Premises, Landlord shall transfer the Leased Security Deposit to its successor in interest, whereupon Landlord shall be automatically released from any liability for the return of the Security Deposit. If, at the end of the Term, Tenant has fully complied with all obligations under this Lease, then the remaining Security Deposit 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 the event condition required; provided that such interest is soldLandlord may hold back a portion of the Security Deposit until final determination of Tenant’s Share of Common Expenses due hereunder, and thereupon Landlord whereupon any final adjustment shall be discharged from made and any further liability remaining Security Deposit shall be returned to Tenant. Landlord’s obligations with respect to such security depositthe 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 on the Security Deposit.

Security Deposit. 9.1 Tenant has deposited shall deposit with Landlord upon the execution of this Lease the sum specified set forth in Section 1(a)(12). Said deposit shall constitute advance rental and 2.1.8, which sum shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants covenants, and conditions of this Lease to be kept and performed by Tenant during the Lease Termterm hereof. IfIf Tenant defaults with respect to any provision of this Lease, at including but not limited to any time during provision relating to the Lease Term, any payment of Minimum Annual Rent, Landlord may (but shall not be required to) use, apply or retain all or any part of such security deposit for the payment of any Rent or Additional Rent herein reserved shall be overdue and unpaidany other sum in default, the or to compensate Landlord may, at its option, appropriate and apply for any other loss or damage which Landlord may suffer by reason of Tenant's default. If any portion of said security deposit to the payment of any such overdue rent is so used or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of applied, Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten (10) days of the written following demand of Landlordtherefore, a deposit cash with Landlord in an amount sufficient amount in cash to restore the security deposit to the its original sum. amount and Tenant's failure to do so shall constitute be a material breach of the this Lease. Should Landlord shall not be required to keep this security deposit separate from its general fund. Tenant comply with all shall be entitled to interest on such deposit at rates paid from time to time on money market or passbook accounts as quoted by the Bank of said termsAmerica or other financial institutions reasonably acceptable to Landlord. 9.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the such security deposit shall be returned in full, without interest, deemed to Tenant within thirty (30) days be applied first to the payment of Rent and other charges due Landlord for all periods prior to the Expiration Date or earlier termination filing of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. such proceedings. 9.3 Landlord may deliver the funds deposited hereunder by Tenant to the any purchaser of Landlord's interest in the building and/or the Leased Demised Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 9.4 The unapplied security deposit, or any 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 after the expiration or earlier termination of this Lease, except for amounts that Landlord has deducted therefrom in order to cure defaults of Tenant under this Lease or compensate Landlord for damages for which Tenant is liable pursuant to this Lease. 9.5 In lieu of the cash security deposit provided in Section 2.1.8 hereof, Tenant may, prior to the date this Lease is executed by both Parties, deliver to Landlord and maintain throughout the term hereof an irrevocable standby letter of credit (the "Letter of Credit") in favor of Landlord, in form and substance acceptable to Landlord in its sole discretion, and in the amount of the security deposit, with a term of not less than the term of this Lease. The Letter of Credit shall be issued by a bank or other financial institution acceptable to Landlord, in Landlord's sole discretion, and may be drawn upon by Landlord at any time that Landlord is or would be entitled to apply or use the security deposit (or any portion) thereof as provided in Section 9.1 hereof.

Security Deposit. Tenant has deposited shall deposit with Landlord upon execution hereof the sum specified Security Deposit set forth in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord 1.6 of the Basic Lease Provisions as security for the Tenant’s faithful performance by of Tenant’s obligations hereunder. If Tenant fails to pay Rent or other charges due hereunder after the lapse of all the termsany applicable notice and cure periods, covenants and conditions or otherwise defaults with respect to any provision of this Lease to be kept and performed by Tenant during the Lease Term. IfLease, at any time during the Lease TermLandlord may use, any payment of Minimum Annual Rent apply or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply retain all or any portion of said security deposit to Security Deposit for the payment of any such overdue rent Rent or other sum. Landlord shall have charge in default, for the unrestricted right (but not the obligation) to apply any part payment of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other itemssum to which Landlord may become obligated by reason of Tenant’s default, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, and/or to compensate Landlord for any loss or damage sustained which Landlord may suffer thereby. If Landlord so uses or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, applies all or any portion thereofof the Security Deposit, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten (10) days of the after written demand of Landlorddemand, a deposit cash with Landlord in an amount sufficient amount in cash to restore the security deposit Security Deposit to the original sumfull amount set forth in Section 1.6 (as decreased pursuant to the last sentence of this Section 4 below, if applicable). Tenant's failure Landlord shall not be required to do so shall constitute a breach of keep the LeaseSecurity Deposit separate from its general accounts. Should If Tenant comply with performs all of said termsTenant’s obligations hereunder, covenants and conditions the Security Deposit (as decreased pursuant to the last sentence of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided this Section 4 below, if applicable), or so much thereof as it falls duehas not been applied by Landlord, then the security deposit shall be returned in fullreturned, without interestpayment of interest or other increment for its use, to Tenant (or, at Landlord’s option, to the last assignee, if any, of Tenant’s interest hereunder) within thirty (30) days of the Expiration Date or earlier termination of after the Term of this Leaseexpires and Tenant vacates the Premises. No trust relationship is created herein between Landlord and Tenant shall have no right with respect to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant Notwithstanding anything to the purchaser contrary contained in this Section 4, so long as Tenant is not in default of Landlord's interest in any of its obligations under this Lease after the building and/or the Leased Premises in the event that such interest is soldlapse of any applicable cure periods, and thereupon never has been in default of any of its material monetary obligations under this Lease after the lapse of any applicable notice and cure periods, Landlord shall be discharged from any further liability with respect to reduce the amount of the Security Deposit by Sixty-Eight Thousand Seventy-Three and 10/100 Dollars ($68,073.10) on December 31, 2007, and by Seventy-Five Thousand Thirty-Seven and 10/100 Dollars ($75,037.10) on December 31, 2009, and Landlord shall apply such security depositamounts against Tenant’s next Rent obligations coming due hereunder, respectively.

Security Deposit. On the Effective Date, Tenant has deposited shall deposit with Landlord the sum specified Security Deposit as set forth in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord Paragraph 16 of the Summary of Basic Lease Terms as security for the full and faithful performance by Tenant of all the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Lease TermTenant’s obligations hereunder. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved No interest shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of paid upon the Security Deposit nor shall Landlord be required to maintain the deposit in a segregated account. The Security Deposit shall not be construed as prepaid Rent. In the event that Tenant shall fail to cure a default under this Lease within the time allowed for cure, then Landlord may retain the Security Deposit, or a portion thereof, and apply it toward any Default (as described in Section 20 hereof)damages sustained by Landlord, including but not limited to actual damages sustained by the Landlord by reason of the default of Tenant, including any past due Rent. Upon each such application, Tenant shall, on demand, pay to Landlord the sum so applied, which shall be added to the Security Deposit so that the same shall be restored to the amount first set forth above. In the event of bankruptcy or other debtor-creditor proceedings, either voluntarily or involuntarily instituted by or against Tenant, the failure Security Deposit shall be deemed to be applied in the following order: to actual damages caused by Tenant beyond ordinary wear and tear, obligations and other charges, including any damages sustained by Landlord, other than unpaid Rent, due to Landlord for all periods prior to the filing of Tenant such proceedings; to keep accrued and perform any unpaid Rent prior to the filing of such proceeding, and thereafter to actual damages, obligations, other items, covenants charges and conditions damages sustained by Landlord and Rent due the Landlord for all periods subsequent to such filing. In the event of a sale of the Lease Building, Landlord shall have the right to be kept and performed by Tenanttransfer the Security Deposit to the buyer, then Landlordand, at its option, may appropriate and apply assuming the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand buyer assumes all of Landlord, a sufficient amount in cash to restore the security deposit ’s obligations under this Lease and with respect to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said termsSecurity Deposit, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant Landlord shall have no right to direct the application of any part of further obligation regarding the Security Deposit. Landlord may deliver If Tenant is not then in default under this Lease, the funds deposited hereunder by Security Deposit or any balance thereof shall be returned to Tenant to within forty-five (45) days after expiration of the purchaser of Landlord's interest in Lease Term or forty-five (45) days after the building and/or final day Tenant occupies the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositPremises.

Security Deposit. Concurrently with Tenant’s execution of this Lease, Tenant has deposited shall deposit with Landlord the sum Security Deposit specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord the Basic Lease Information as security for the full and faithful performance of each and every term, covenant and condition of this Lease. Landlord may use, apply or retain the whole or any part of the Security Deposit as may be reasonably necessary (a) to remedy any Default by Tenant under this Lease, (b) to repair damage to the Premises caused by Tenant, (c) to clean the Premises upon termination of this Lease, (d) to reimburse Landlord for the payment of any amount which Landlord may reasonably spend or be required to spend by reason of Tenant’s Default, and (e) to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant’s Default. Should Tenant faithfully and fully comply with all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Lease Term. IfLease, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days following the expiration of the Expiration Date Term, the Security Deposit or earlier termination any balance thereof shall be returned to Tenant or, at the option of Landlord, to the Term last assignee of Tenant’s interest in this Lease. Landlord shall not be required to keep the Security Deposit separate from its general funds and Tenant shall not be entitled to any interest on such deposit. If Landlord so uses or applies all or any portion of said deposit, within five (5) business days after written demand therefor Tenant shall deposit cash with Landlord in an amount sufficient to restore the Security Deposit to the full extent of the above amount, and Tenant’s failure to do so shall be a default under this Lease. In the event Landlord transfers its interest in this Lease, Landlord shall transfer the then remaining amount of the Security Deposit to Landlord’s successor in interest, and thereafter Landlord shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability to Tenant with respect to such security depositSecurity Deposit.

Security Deposit. Tenant has deposited with Upon listing below the amount, check number, date, or other appropriate information, the Landlord acknowledges the sum specified in Section 1(a)(12)receipt of the following security deposit: Until receipt of a security deposit of THIRTEEN THOUSAND FOUR HUNDRED AND 001100 DOLLARS ($13,400.00) This lease shall not be binding on the Landlord. Said The security deposit shall constitute advance rental and shall be held by Landlord as security for is given to secure the faithful performance by the Tenant of all of the terms, covenants covenants, and conditions of this Lease lease by Tenant to be kept and performed by Tenant during the Lease Termterm hereof. IfTenant agrees that if the Tenant shall fail to pay the rent herein reserved promptly when due, said deposit may, at the option of the Landlord (but Landlord shall not be required to), be applied to any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue rent due and unpaid, and if the Landlord may, at its option, appropriate and apply Tenant violates any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other itemsterms, covenants covenants, and conditions of the Lease to be kept and performed by Tenantthis lease, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as said deposit may be necessary, applied to compensate Landlord for loss or damage sustained or any damages suffered by Landlord due as a result of Tenant's default to such breach the extent of the amount of damages suffered. Nothing contained in this Article shall in any way diminish or be construed as waiving any of Landlord's other remedies as provided in this lease or by Tenantlaw or in equity. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, rent or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall shall, on the written demand of Landlord, forthwith remit to Landlord, Landlord a sufficient amount of cash within ten (10) days after receipt of the written demand of Landlordsuch demand, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so or it shall constitute a breach of the Leasethis lease. Should Tenant comply with all of said terms, the terms and covenants and conditions of the Lease this lease and promptly pay all Minimum Annual Rent and Additional Rent of the rental herein provided for as it falls due, then the and all other sums payable to Landlord by Tenant hereunder, said security deposit shall be returned in full, without interest, full to Tenant within thirty (30) days after the end of the Expiration Date or earlier termination term of this lease. In no event shall Landlord be deemed to be a trustee of the Term of this Lease. security deposit, and Tenant shall have no right not be entitled to direct the application of interest on any part of the Security Deposit. Landlord may deliver the funds sums deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositunder this section.

Security Deposit. Concurrently with Tenant’s execution of this Lease, Tenant has deposited shall deposit with Landlord the additional sum specified in Section 1(a)(12)of $408,700.00. Said deposit shall constitute advance rental and sum shall be held by Landlord as security a Security Deposit for the full and faithful performance by Tenant of all of the terms, covenants covenants, and conditions of this Lease to be kept and performed by Tenant during the Lease Termterm hereof. IfIf Tenant breaches or defaults with respect to any provision of this Lease, at Landlord may (but shall not be required to) use, apply or retain all or any time during part of this Security Deposit for the Lease Termpayment of any rent, any payment breach or default, or for any amount which Landlord may incur or spend by reason of Minimum Annual Rent Tenant’s breach or Additional Rent herein reserved shall be overdue and unpaiddefault, the or to reimburse or compensate Landlord mayfor any other loss, at its optiondamage, appropriate and apply liability, breach or expense or cost which Landlord may incur or suffer by reason of Tenant’s breach or default, including, without limitation, reimbursement for any real estate commissions paid or costs incurred for preparation for Tenant’s occupancy. If any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other itemsis so used, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, applied or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunderretained, then Tenant shall remit to Landlordshall, within ten (10) days of the after written demand of Landlordtherefor, a deposit cash with Landlord in the amount sufficient amount in cash to restore the security deposit Security Deposit to the its original sumamount. Tenant's ’s failure to do so shall constitute be a material breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. 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. If Tenant fully and faithfully performs and observes every provision of this Lease to be performed and observed by Tenant, the Security Deposit or any then unused balance thereof shall be returned to Tenant (or at Landlord’s option, to the last assignee of Tenant’s interest hereunder) after the expiration of the Lease term and after Tenant has vacated and surrendered the Premises in accordance with the terms hereof. Tenant shall not have no the right to direct apply this Security Deposit or [UNREADABLE] transfer the application unused balance of any part said Deposit to Landlord’s successor in interest whereupon Tenant hereby agrees to release Landlord from liability for the return of the Security such Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security deposit.

Security Deposit. Tenant has deposited with Landlord the sum specified set forth in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord item 10 of the Basic Lease Provisions as security a Security Deposit for the full and faithful performance by Tenant of all the terms, covenants and conditions every provision of this Lease to be kept and performed by Tenant during the Lease TermTenant. IfLandlord may apply, in its sole discretion at any time during the Lease TermTerm of this Lease, any payment of Minimum Annual Rent all or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof)the payment of all prepaid expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation for Broker commissions. In the event Such application of the failure Security Deposit is not and shall never be dependent upon an Event of Tenant Default. Upon an Event of Default, and whether or not Landlord is informed of or has knowledge of the Event of Default, the Security Deposit (if not already applied as hereinabove provided) shall be deemed to keep and perform be automatically applied, without waiver of any rights Landlord may have under this Lease or at law or in equity as a result of an Event of Default, to the payment of any Rent not paid when due, the repair of damage to the Premises or the payment of any other items, covenants and conditions amount which Landlord may spend or become obligated to spend by reason of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security depositan Event of Default, or so much thereof as may be necessary, to compensate Landlord for any other loss or damage sustained or suffered which Landlord may suffer by Landlord due reason of an Event of Default, to such breach the full extent permitted by Tenantlaw. Should the entire security deposit, or If any portion thereofof the Security Deposit is so applied, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten (10) days of the after written demand of Landlordtherefor, a deposit cash with Landlord in an amount sufficient amount in cash to restore the security deposit Security Deposit to its original amount. Landlord shall not be required to keep the original sumSecurity Deposit separate from its general funds. Tenant's failure to do so shall constitute a breach The unused portion of the Lease. Should Tenant comply with all of said termsSecurity Deposit, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls dueif any, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date expiration of this Lease or earlier any termination of this Lease not resulting from an Event of Default, so long as Tenant has vacated the Term of Premises in the manner required by this Lease and paid all 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. Tenant shall have no right to direct hereby waives the application provisions of Section 1950.7(c) of the California Civil Code and any part present or future laws otherwise governing the return of the Security Deposit. Landlord may deliver the funds deposited hereunder by Deposit to Tenant to the purchaser extent of Landlord's interest in reasonably anticipated Additional Rent retained by Landlord pursuant to the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositprevious sentence.

Security Deposit. Subject to the provisions herein, as long as ALZA or an ALZA Affiliate is the Tenant under this Lease, Tenant shall not be required to deposit with Landlord a security deposit ("Security Deposit") under this Lease; however, Landlord shall require a Security Deposit in an amount equal to two times the last 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 provisions relating to the payment of Rent or any other monetary sums due hereunder, Landlord may (but shall not be required to) use, apply or retain all or any part of this Security Deposit for the payment of such amount in default, or 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 the Security 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 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 this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on such Deposit. If Tenant fully and faithfully performs every provision of this Lease to be performed by it, the Security Deposit or any balance thereof shall be returned to the last party recognized by Landlord as Tenant hereunder (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 deposited vacated the Premises. In the event of termination of Landlord's interest in this Lease, Landlord shall transfer the Security Deposit to Landlord's successor in interest whereupon Tenant agrees to release Landlord from liability for the return of such Deposit or the accounting therefor. Notwithstanding the above, Tenant shall have the right, at Tenant's sole election, to substitute for one-half of 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 Landlord the sum specified in Section 1(a)(12letter 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 deposit 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, Californi▇. ▇uch irre▇▇▇▇▇le letter of credit shall constitute advance rental 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 during the Lease TermTenant. If, for any reason, Tenant fails to cause the irrevocable letter of credit to be so renewed or replaced at any time during least twenty (20) days prior to its expiration date, Landlord shall have the Lease Termright 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, any payment one half of Minimum Annual Rent or Additional Rent herein reserved the cash Security Deposit held by Landlord shall be overdue 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 unpaidsuch default is not cured within any applicable cure period, the Landlord may, at its option, appropriate and apply any portion of said security deposit including but not limited to provisions relating to the payment of Rent, Landlord may (but shall not be required to) draw down on the irrevocable letter of credit for payment of any such overdue rent sum which Landlord may spend or other sumbecome 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. Landlord shall have 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 unrestricted right (but not the obligation) amount then due to apply any part Landlord upon demand and presentation of evidence of the identity 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 cure any Default (as described in Section 20 hereof). In the event 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 keep and perform cure such default within the applicable grace period following receipt of such notice of default. If any other items, covenants and conditions portion of the Lease to be kept and performed by Tenantirrevocable letter of credit is used or applied pursuant hereto, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten (10) days after receipt of the a written demand of therefor from Landlord, a sufficient restore and replace the value of such security by either (i) depositing cash with Landlord in the amount in cash to restore the security deposit equal to the original sumsum 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 do 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 breach 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 Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term requirement of this Lease. Tenant Lease for such letter of credit to be so renewed, in which event issuer shall have no right not be required to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of make such a deposit for Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositaccount).

Security Deposit. Tenant has deposited shall be required to deposit with Landlord upon execution of this Lease the sum specified security deposit as set forth in Article I, Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord 8 as security for the Tenant’s faithful performance by of its obligations under this Lease. Notwithstanding the foregoing, Tenant of all the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its optionby written notice to Landlord, appropriate request a deferment of Tenant’s obligation to pay the security deposit as aforesaid, and Landlord may elect to defer such payment in Landlord’s sole and absolute discretion. If Landlord defers such requirement, Tenant shall, within two (2) business days after Landlord’s request therefor, pay the security deposit set forth in Article I, Section 8 to Landlord. If Tenant fails to pay rent, or otherwise defaults under this Lease, Landlord may use, apply or retain all or any portion of said security deposit to for the payment of any such overdue amount already due Landlord, for rent which will be due in the future, and/ or other sumto reimburse or compensate Landlord for any liability, expense, loss or damage which Landlord may suffer or incur by reason thereof. If Landlord shall have the unrestricted right (but not the obligation) to apply uses or applies all or any part portion of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days after written request therefor deposit monies with Landlord sufficient to restore said security deposit to the full amount required by this Lease. If the Basic Rent increases during the Term of this Lease, Tenant shall, upon written request from Landlord, deposit additional monies with Landlord so that the total amount of the written demand security deposit shall at all times bear the same proportion to the increased Basic Rent as the initial security deposit bore to the initial Basic Rent. Should the agreed use be amended to accommodate a material change in the business of LandlordTenant or to accommodate a subtenant or assignee, a sufficient amount in cash Landlord shall have the right to restore increase the security deposit to the original sumextent necessary, in Landlord’s reasonable judgment, to account for any increased wear and tear that the premises may suffer as a result thereof. Tenant's failure If a change in control of Tenant occurs during this Lease and following such change the financial condition of Tenant is, in Landlord’s reasonable judgment, significantly reduced, Tenant shall deposit such additional monies with Landlord as shall be sufficient to do so cause the security deposit to be at a commercially reasonable level based on such change in financial condition. Landlord shall constitute a breach not be required to keep the security deposit separate from its general accounts. Within ninety (90) days after the expiration or termination of this Lease, Landlord shall return that portion of the Leasesecurity deposit not used or applied by Landlord. Should Landlord shall upon written request provide Tenant comply with all of said terms, covenants and conditions an accounting showing how that portion of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then security deposit that was not returned was applied. No part of the security deposit shall be returned considered to be held in full, without interesttrust, to bear interest or to be prepayment for any monies to be paid by Tenant within thirty under this Lease. a California limited liability company a California corporation By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇ By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇ Name: ▇▇▇▇▇▇▇ ▇▇▇▇▇ Name: ▇▇▇▇▇▇▇ ▇▇▇▇ Title (30Print): Authorized Signatory Title (Print): Sole Officer, Director and Authorized Signatory LOTS 15 TO 20 INCLUSVIE IN BLOCK “A’ OF THE SUBDIVISION OF BLOCKS “A” AND “E” OF THE ESTELi.A TRACT, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 55, PAGE 54 OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. The following are Tenant’s insurance requirements. Tenant agrees to present evidence to Landlord that it has fully complied with the insurance requirements. 1. Tenant shall, at its sole cost and expense, commencing on the Commencement Date and continuing during the entire Term, obtain and keep in full force and effect: (i) days a combination of commercial general liability and umbrella liability insurance with respect to the Expiration Date Premises and the operations of or earlier termination on behalf of Tenant in, on or about the Premises, including but not limited to personal injury, owned and non-owned automobile, blanket contractual, independent contractors, broad form property damage, fire legal liability, products liability (if a product is sold from the Premises), and cross liability and severability of interest clauses, which policy(ies) shall be written on a “per occurrence” basis and for not less than $5,000,000 combined single limit (with a $50,000 minimum limit on fire legal liability) per occurrence for bodily injury, death, and property damage liability, or the current limit of liability carried by Tenant, whichever is greater, provided that such liability limit may be subject to increase in an amount reasonably requested by Landlord if and when Tenant renews the Term of this Lease; (ii) workers’ compensation insurance coverage as required by Applicable Law, together with employers’ liability insurance coverage for not less than limits of $1,000,000 each accident, $1,000,000 disease policy limit and $1,000,000 disease each employee; (iii) with respect to improvements, alterations, and the like required or permitted to be made by Tenant under this Lease, builder’s all-risk insurance, in amounts reasonably satisfactory to Landlord; (iv) insurance against fire, vandalism, malicious mischief and such other additional perils as may be included in a standard “all risk” form, insuring the leasehold improvements, trade fixtures, furnishings, equipment and items of personal property in the Premises, in an amount equal to not less than ninety percent (90%) of their actual replacement cost (with replacement cost endorsement); and (v) Property insurance, subject to standard exclusions (but specifically including earthquake coverage), covering the full replacement value of the Premises, and such other risks as Landlord or its mortgagees may from time to time reasonably deem appropriate with commercially reasonable deductible amounts. Tenant In no event shall have no right to direct the application limits of any part policy be considered as limiting the liability of Tenant under this Lease. 2. All policies of insurance required to be carried by Tenant pursuant to this Exhibit shall be written by responsible insurance companies authorized to do business in the Security DepositState of California and with a general policyholder rating of not less than “A-,VIII” in the most current Best’s Insurance Report. Landlord Any insurance required of Tenant may deliver be furnished by Tenant under any blanket policy carried by it or under a separate policy. A certificate of insurance or policy information form, certifying that the funds deposited hereunder policy has been issued, provides the coverage required by this Exhibit and contains the required provisions, and the additional insured provisions required under Section 3 below, shall be delivered by Tenant to Landlord prior to the purchaser date Tenant is given the right of possession of the Premises. Proper evidence of the renewal of any insurance coverage shall also be delivered by Tenant to Landlord not later than three weeks following the expiration of the coverage. 3. Unless otherwise provided below, each policy evidencing insurance required to be carried by Tenant pursuant to this Exhibit shall contain the following provisions and/or clauses satisfactory to Landlord's interest in : (i) with respect to Tenant’s commercial general liability and umbrella liability insurance, a provision that the building and/or policy and the Leased Premises in the event coverage provided shall be primary and that such interest is sold, and thereupon any coverage carried by Landlord shall be discharged from any further liability excess and noncontributory, together with respect to such security deposit.a provision

Security Deposit. 11.1 Simultaneously with Tenant’s execution of this Lease, Tenant has deposited shall deposit with Landlord the sum specified in Section 1(a)(12). Said Security Deposit Amount as a security deposit shall constitute advance rental and shall be held by Landlord as security for the faithful performance 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 termssecurity deposit. Within thirty (30) days after the later of the expiration or earlier termination of the Lease Term or Tenant’s vacating the Premises, covenants and conditions Landlord shall return such security deposit to Tenant, less (a) such portion thereof as Landlord shall have appropriated to satisfy any of Tenant’s obligations under this Lease or to reimburse Landlord for any loss or damage resulting from an Event of Default under this Lease, (b) such amount as Landlord may reasonably determine to be appropriate to secure payment of rentals, charges or adjustments that may become due following expiration or termination provided such amounts future payments are identified in writing by Landlord within said 30-day period, or (c) if Tenant receives a written notice of default prior to the expiration of said 30-day period, amounts reasonably necessary to secure payment of damages arising from an event that, with the giving of notice or the passage of time or both, would constitute an Event of Default. If Tenant fails to pay rent or other charges due hereunder, or otherwise defaults with respect to any provision of this Lease Lease, Landlord shall have the right, but shall not be obligated, to be kept and performed by Tenant during the Lease Term. Ifuse, at any time during the Lease Term, any payment of Minimum Annual Rent apply or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply retain all or any portion of said security deposit to the Security Deposit Amount for the payment of any such overdue rent or other sum. Landlord shall have charge in default or for the unrestricted right (but not the obligation) to apply any part payment of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other itemssum to which Landlord may become obligated by reason of Tenant’s default, covenants and conditions of to repair damages to the Lease to be kept and performed Premises caused by Tenant, then Landlord, at its option, may appropriate and apply to clean the entire security depositPremises upon expiration or termination, or so much thereof as may be necessary, to compensate Landlord for any loss or damage sustained 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 suffered by Landlord due become obligated to such breach by Tenant. Should the entire security depositspend, or for the compensation of Landlord for any losses incurred, by reason of such event. If any portion thereof, be appropriated and applied by Landlord for of the payment of overdue rent, to cure any default, security deposit (in whatever form) is so used or other sums due and payable to Landlord by Tenant hereunderapplied, then Tenant shall remit to Landlord, within ten (10) days Business Days after Landlord gives written notice to Tenant of the written demand of Landlordsuch use or application, a Tenant shall deposit with Landlord cash in an amount sufficient amount in cash to restore the security deposit to the original sum. Security Deposit Amount then in effect in accordance with Section 11.2 below, and Tenant's ’s failure to do so shall constitute a breach an Event of Default under this Lease. Tenant and Landlord acknowledge and agree that their rights and remedies with respect to the Security Deposit Amount shall be as provided in this Lease, and each of Landlord and Tenant hereby waive in its entirety Section 1950.7 of the LeaseCalifornia Civil Code and any and all other similar statutes now existing or hereafter enacted. 11.2 The Security Deposit Amount shall be subject to reduction as provided in this Section upon each of the following dates (each, a “Reduction Date”): (a) July 31, 2019 (the “First Reduction Date”); and (b) July 31, 2022 (the “Second Reduction Date”). Should Provided and on condition that Tenant comply is not in Default beyond all applicable and notice periods as of any Reduction Date, the Security Deposit Amount shall be reduced as follows: (i) as of the First Reduction Date, to $800,000.00 (or if the Security Deposit Amount shall have been increased or decreased by reason of the surrender of space under the Contraction Right or the addition of any ROFO Space, to such higher amount as is equal to two-thirds (2/3) of the amount of the Security Deposit Amount in effect immediately prior to the First Reduction Date); and (ii) as of the Second Reduction Date, to $400,000.00 (or if the Security Deposit Amount shall have been decreased or increased by reason of the surrender of space under the Contraction Right or the addition of any ROFO Space, to such higher amount as is equal to one-half (1/2) of the amount of the Security Deposit Amount in effect immediately prior to the Second Reduction Date). In no event shall the Security Deposit Amount be reduced below $400,000.00 (or such higher amount as may be in effect as of the Second Reduction Date by reason of such an addition). Landlord shall cooperate with all Tenant to effect any modifications or replacements of said termsthe Letter of Credit in order to implement each of the Security Deposit Amount reductions described in Section 11.2 hereof or Section 2.4(b). If the Security Deposit Amount, covenants or any portion thereof, is held in cash as of either of the Reduction Dates, the cash portion thereof up to the reduction amount shall be paid to Tenant by Landlord within fifteen (15) days following the applicable Reduction Date. (a) Tenant may, at its option, deliver to Landlord, in lieu of a cash security deposit, an unconditional, irrevocable stand-by letter of credit in accordance with the terms specified below (the “Letter of Credit”). The Letter of Credit shall: (i) be issued by a bank meeting the requirements herein provided, be upon the terms and conditions herein provided, and in other respects be in form and substance satisfactory to Landlord in its sole discretion; (ii) at all times be in the stated face amount of not less than the Security Deposit Amount (as defined in Section 1.17 and as the same may be reduced in accordance with the provisions of Section 11.2), and state on its face that multiple and partial draws are permitted; (iii) be issued by a commercial bank (the “Issuing Bank”) satisfying the Issuing Bank Requirements set forth below; (iv) permit draws thereunder to be made from an office of the Issuing Bank located in the metropolitan area in which the Building is located, with draws to be made payable to the owner from time to time of the Building or a lender to which such owner may have transferred the Letter of Credit; (v) be transferable and assignable one or more times by the owner from time to time of the Building or its lender, which transfer or assignment shall be conditioned only upon the execution of a reasonable and customary written document in connection therewith and shall be without fee or charge to owner or its lender, whether or not the original account party of the Letter of Credit continues to be the tenant under this Lease by virtue of a change in name or structure, merger, assignment, transfer or otherwise; (vi) be payable, and transferrable and assignable, on the terms herein provided whether or not Tenant and/or any other original account party of the Letter of Credit may have been or continue to be the tenant under this Lease, and notwithstanding any change in name or structure, merger, assignment, transfer or otherwise of Tenant or other account party; (vii) be payable at sight upon presentment of a simple sight draft stating only that Landlord is permitted to draw on the Letter of Credit under the terms of the Lease and promptly pay all Minimum Annual Rent setting forth the amount that Landlord is drawing; (viii) be maintained in effect, whether through renewal or extension, during the period beginning not later than the date of this Lease and Additional Rent herein provided continuing until the date (the “LC Expiration Date”) that is sixty (60) days after the expiration of the Lease Term (as it falls duethe same may be extended); and (ix) in the event that the Letter of Credit at any time in effect shall expire prior to the LC Expiration Date, then the security deposit shall be returned in full, without interest, replaced by delivery to Tenant within Landlord of a new Letter of Credit at least thirty (30) days prior to the LC Expiration Date, without any action whatsoever on the part of Landlord. Tenant shall cooperate with Landlord to effect any modifications, transfers or replacements of the Expiration Date or earlier termination Letter of Credit requested by Landlord in order to assure that Landlord is at all times fully secured by a valid Letter of Credit that may be drawn upon by Landlord, its successors and assigns. (b) The Issuing Bank shall, upon issuance of a Letter of Credit and continuously and without interruption at all times thereafter, satisfy each and all of the Term following requirements (the “Issuing Bank Requirements): (i) the Issuing Bank shall be chartered under the laws of the United States or a state thereof and shall be insured by the Federal Deposit Insurance Corporation (FDIC); (ii) the long-term, unsecured and unsubordinated debt obligations of the Issuing Bank shall be rated in the highest category by at least two of Fitch Ratings Ltd. (Fitch), ▇▇▇▇▇’▇ Investors Service, Inc. (Moody’s) and Standard & Poor’s Ratings Services (S&P) or their respective successors (the Rating Agencies) (such rating categories being, as of the date of this Lease, AAA from Fitch, Aaa from Moody’s, and AAA from S&P); (iii) the Issuing Bank shall have a rating with respect to certificates of deposit, short term deposits and commercial paper in the highest category from at least two Rating Agencies (such rating categories being, as of the date of this Lease, F1 from Fitch, P-1 from Moody’s, and A-1 from S&P); and (iv) the Issuing Bank shall be well capitalized under the prompt corrective action rules of the FDIC, as disclosed by the Issuing Bank’s Report of Condition and Income (Call Report), and the Issuing Bank shall have timely and in complete manner filed each and all of its Call Reports. Notwithstanding the foregoing, Landlord agrees that it will initially accept a Letter of Credit issued by Bank of the West, but such acceptance shall not limit in any manner the rights of Landlord in respect of a Triggering Event as set forth below in subsection (c) of this Section if such bank fails at any time to meet the Issuing Bank Requirements. (c) Landlord may draw upon the Letter of Credit upon any one or more of the following occurrences (a “Triggering Event”): (i) an Event of Default, after applicable notice and cure period, shall have occurred under this Lease; or (ii) Tenant shall not have delivered to Landlord, at the time herein required prior to the expiration of the Letter of Credit then in effect, either cash or a replacement Letter of Credit meeting the requirements of this Lease; or (iii) the Issuing Bank under the Letter of Credit shall have failed at any time to satisfy the Issuing Bank Requirements (without regard to whether the Issuing Bank may have subsequently remedied such failure), or such Issuing Bank is insolvent or is placed into receivership or conservatorship by the FDIC, or any successor or similar entity, or a trustee, receiver or liquidator is appointed for such Issuing Bank, or the financial condition of such Issuing Bank has changed in any other materially adverse way, as determined by Landlord in its sole discretion. Following a Triggering Event, Landlord may make a draw, or decline to do so, as determined by Landlord in its sole discretion, and the amount of any draw may be in such amount, including the full amount of the Letter of Credit, as determined by Landlord in its sole discretion. In no event shall Landlord be required to provide any notice or grant to Tenant any grace or cure period in respect of any Triggering Event (subject, in the case of an Event of Default under this Lease, to such notice and cure periods, if any, as may be provided in this Lease before an occurrence becomes an Event of Default). Within ten (10) Business Days after Landlord has made any partial draw on a Letter of Credit, Tenant shall either deposit cash with Landlord in the amount of the draw, or deliver to Landlord a replacement Letter of Credit or the certificate of the Issuing Bank that the amount of the Letter of Credit has been reinstated to the full Security Deposit Amount, and if Tenant fails to do so, Landlord may, in its sole discretion, draw the full amount of the Letter of Credit. 11.4 If and so long as Landlord transfers the security deposit to any purchaser or other transferee of Landlord’s interest in the Property, then Tenant shall look only to such purchaser or transferee for the return of the security deposit, and Landlord shall be released from all liability to Tenant for the return of such security deposit. Tenant acknowledges that the holder of any Mortgage shall not be liable for the return of any security deposit made by Tenant hereunder unless such holder actually receives such security deposit (or upon such other terms, if any, as may be stated in an executed subordination, non-disturbance and attornment agreement with such holder, if any). Tenant shall have no right to direct not pledge, mortgage, assign or transfer the application of security deposit or any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security deposittherein.

Security Deposit. Tenant has deposited with Landlord the sum The Security Deposit, if any, specified in Section 1(a)(12). Said deposit shall constitute advance rental and 1.14 shall be held by Landlord as security for the full and faithful performance by Tenant of all the termseach and every term, covenants covenant, and conditions condition of this Lease on the part of Tenant to be kept observed and performed performed, and Landlord shall have no liability to pay interest thereon unless required by law. The Security Deposit is not, and may not be construed by Tenant during to constitute Rent for the Lease Termlast month of this Term or any portion thereof. If, at If any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved or any other sums payable by Tenant hereunder shall be overdue and unpaidunpaid or should Landlord make payments on behalf of Tenant, or should Tenant fail to perform any of the terms of this Lease, then Landlord may, at its option, appropriate and without prejudice to any other remedy which Landlord may have on account thereof, apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, necessary to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for toward the payment of overdue rent, to cure any default, the Rent 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 payable to Landlord by Tenant hereunder, then in such event Tenant shall remit to Landlord, within ten (10) days of the written forthwith upon demand of Landlord, a sufficient amount in cash to restore the security deposit Security Deposit to its original amount, and the original sumsum required to so restore the Security Deposit shall be additional Rent hereunder. Tenant's failure to do so In the event Tenant shall constitute a breach of the Lease. Should Tenant comply have fully and faithfully complied with all of said the terms, covenants covenants, and conditions of this Lease, the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit Security Deposit shall be returned in full, without interest, full to Tenant within thirty (30) days following the end of the Expiration Date Term or earlier termination of the Term of this Lease. In the event that any bankruptcy, insolvency, reorganization, or other creditor-debtor proceedings shall be instituted by or against Tenant shall have no right or its successors or assigns, Landlord may apply the Security Deposit first to direct the application payment of any part Rent, and other amounts due Landlord hereunder, and the balance, if any, of the Security DepositDeposit may be retained by Landlord in partial liquidation of Landlord’s damages. Landlord may deliver the funds deposited hereunder by Tenant Security Deposit to the purchaser of Landlord's ’s interest in the building and/or the Leased Premises Premises, in the event that such interest is sold, and thereupon Landlord shall thereupon be discharged from any further liability with respect to such security depositthe Security Deposit.

Security Deposit. Tenant has deposited with Landlord shall pay to Landlord, immediately upon execution of this Lease, the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord the Basic Lease Provisions as security for the full and faithful performance by Tenant of all the terms, covenants and conditions every provision of this Lease to be kept and performed by Tenant. If Tenant during defaults with respect to any provisions of this Lease, including, but not limited to, the Lease Term. If, at any time during provisions relating to the Lease Term, any payment of Minimum Annual Rent rent, Landlord may (but shall not be required to) use, apply or Additional Rent herein reserved shall be overdue and unpaidretain 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 maymay spend or become obligated to spend by reason of Tenant's default, at its option, appropriate and apply 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 cash with Landlord in an amount sufficient to restore the security deposit to its original amount and Tenant's failure to do so shall be a material breach of this Lease. At Landlord's election, if the payment monthly Base Rent shall from time to time increase during the term of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of this Lease, Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten (10) days of the written demand of after request by Landlord, deposit with Landlord additional money as a sufficient security deposit so that the total amount in cash to restore of the security deposit held by Landlord shall bear the same proportion to the original sum. Tenant's failure to do so shall constitute a breach of then current Base Rent as the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the initial security deposit bears to the initial Base Rent as set forth in the Basic Lease Provisions. Landlord shall not be returned in fullrequired to keep this security deposit separate from its general funds, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. and Tenant shall have no right not be entitled to direct the application of any part of the Security Depositinterest on such deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest No trust relationship is sold, and thereupon Landlord shall be discharged from any further liability created hereby with 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 or any balance thereof 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 hereof has been determined and paid in full.

Security Deposit. 8.1. Prior to the Term Commencement Date, Tenant has deposited shall deposit with Landlord the sum specified set forth in Section 1(a)(122.6 (the “Security Deposit”). Said deposit shall constitute advance rental and , 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 Lease TermTerm of this Lease. IfIn addition, at Tenant shall, within five (5) days after any time during upward adjustment in the Lease TermBasic Annual Rent pursuant to Section 6.2, deposit with Landlord, and the Security Deposit shall be increased by, an amount equal to the increase 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 limited to, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit provision relating to the payment of any such overdue rent or other sum. Rent, then Landlord shall have the unrestricted right may (but shall not the obligationbe required to) to use, apply or retain all or any part of the Security Deposit to cure for the payment of any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform Rent or any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security depositsum in default, or so much thereof as may be necessary, to compensate Landlord for any other loss or damage sustained or suffered that Landlord may suffer by Landlord due to such breach by reason of Tenant’s default. Should the entire security deposit, or If any portion thereof, be appropriated and applied by Landlord for of the payment of overdue rent, to cure any default, Security Deposit is so used or other sums due and payable to Landlord by Tenant hereunderapplied, then Tenant shall remit to Landlordshall, within ten (10) days of the written following demand of Landlordtherefor, a deposit cash with Landlord in an amount sufficient amount in cash to restore the security deposit Security Deposit to the its original sum. amount, and Tenant's ’s failure to do so shall constitute be a material breach of the this Lease. Should Landlord shall not be required to keep this Security Deposit separate from its general fund, and Tenant comply with all shall not be entitled to interest on the Security Deposit. The provisions of said terms, covenants and conditions of this Article 8 shall survive the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date expiration or earlier termination of the Term of this Lease. Tenant shall have no right to direct TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, AS 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. 8.2. In the application event of any part of bankruptcy or other debtor-creditor proceedings against Tenant, the Security DepositDeposit 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. 8.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is soldTenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 8.4. The Security Deposit, or any balance thereof after Landlord applies the Security Deposit to the payment of Rent or the amount reasonably necessary to repair damage to the Premises caused by Tenant or to compensate Landlord for any breach by Tenant, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the later of: (a) the expiration or earlier termination of this Lease so long as Tenant is not then in Default under this Lease nor is any event then occurring which with the giving of notice or the passage of time, or both, would constitute a Default hereunder; or (b) the date that Tenant has cured all such Defaults or prospective Defaults under this Lease. 8.5. The Security Deposit may be in the form of cash, a letter of credit or any other security depositinstrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in substantially the form of Exhibit E issued by any national bank that has (x) a branch office within San Diego County where Landlord may present drafts under the L/C Security and (y) an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires; and (iii) in such extended period, Landlord shall not unreasonably refuse to consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s out-of-pocket legal costs not to exceed the sum of Two Thousand Dollars ($2,000) in handling Landlord’s acceptance of L/C Security or its replacement or extension, except with respect to any replacement in accordance with subparagraph (d) of this Section 8.5. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall promptly remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) the date two (2) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord asks the issuer to confirm the current L/C Security expiry date, and the issuer fails to do so within ten (10) business days; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office within San Diego County where Landlord may present drafts under the L/C Security; or (vi) upon the expiration or earlier termination of this Lease, the conditions set forth in Section 8.4 have not been satisfied, and the L/C Security expires in less than thirty (30) days. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Tenant acknowledges that the only effect of a wrongful draw would be to substitute a cash Security Deposit for L/C Security, causing Tenant no legally recognizable damage. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a wrongful draw, the parties shall cooperate to allow Tenant to post replacement L/C Security simultaneously with the return to Tenant of the wrongfully drawn sums, and Landlord shall upon request confirm in writing to the issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within fifteen (15) Business Days after receiving a written request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security. (f) Notwithstanding an election by Tenant during the Term to substitute a cash Security Deposit for L/C Security, Tenant shall nevertheless have the right to replace the L/C Security with a cash Security Deposit, at Tenant’s sole cost and expense. If Tenant delivers the cash Security Deposit to Landlord in place of the L/C Security, Landlord shall promptly cancel or surrender the L/C Security. Tenant may effect such substitutions on multiple occasions during the Term, provided Tenant shall not effect such substitutions more than twice in any calendar year.

Security Deposit. (A) Concurrently with the execution of this Lease, Tenant has deposited shall deposit the Letter of Credit (as defined in Section 8.01(B) hereof) with Landlord as the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord Security Deposit, as security for the payment by Tenant of all Base Rent and Additional Rent and for the faithful performance by Tenant of all the terms, covenants and conditions hereof. Landlord shall not be required to segregate the Security Deposit from other deposits or from other funds of this Lease to be kept and performed Landlord or pay interest thereon, unless required by Tenant during the Lease Termapplicable law. If, at any time during the Lease Term, Tenant does not fulfill any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaidits obligations under this Lease, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of use the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security depositDeposit, or so much thereof as may be necessary, on account of such obligations including, without limitation, any damages to compensate which Landlord for loss is entitled pursuant to Section 7.02 hereof. If any portion of the Security Deposit is used, applied, or damage sustained or suffered retained by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunderas herein permitted, then within five (5) days after written demand therefor, Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a deposit with Landlord an amount sufficient amount in cash to restore the security deposit Security Deposit to the its original sum. or adjusted amount, and Tenant's ’s failure to do so shall constitute be a breach of the this Lease. Should If Tenant comply with all fully and faithfully performs every term, covenant, condition and obligation of said termsthis Lease during the Term, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in fullSecurity Deposit (or any balance thereof), without interest, shall be returned to Tenant within thirty (30) days after the expiration of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security DepositTerm. Landlord may deliver the funds deposited hereunder by Tenant Security Deposit to the any purchaser of Landlord's ’s interest in the building and/or the Leased Premises in the event that if such interest is sold, and thereupon in which event Landlord shall be discharged from any further liability with respect to the Security Deposit. The Security Deposit shall not be construed as liquidated damages, and if Landlord’s claims hereunder exceed the Security Deposit, Tenant shall remain liable for the balance of such security depositclaims. Tenant further covenants that it will not assign or encumber or attempt to assign or encumber the Security Deposit and that Landlord shall not be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance. (B) Upon the execution of this Lease, Tenant shall deposit with Landlord a clean, irrevocable letter of credit issued by a bank which is a member of the New York Clearinghouse Association and which is acceptable to Landlord in its reasonable judgment in the amount of $2,655,172.00 in the form annexed hereto as Exhibit C (the “Letter of Credit”). At any time that Tenant is in default under this Lease beyond any applicable notice and grace period, Landlord shall have the right to draw down the entire Letter of Credit and apply the proceeds or any part thereof in accordance with the provisions of this Section 8.01. Landlord shall also have the right to draw down the entire Letter of Credit in the event Landlord receives notice that the date of expiry of the Letter of Credit will not be extended by the issuing bank, or, if the Letter of Credit does not provide for automatic one-year extensions of the term of such Letter of Credit, and in either case, in the event a replacement letter of credit, issued in accordance with this Lease in form satisfactory to Landlord, is not delivered at least thirty (30) days before the expiration of the Letter of Credit which is then held by Landlord. If Landlord shall have drawn down the Letter of Credit and applied all or a portion thereof in accordance with the terms of this Section 8.01, then Tenant shall deposit with Landlord, within five (5) business days after notice from Landlord, an amount of cash sufficient to bring the balance of the cash then being held by Landlord under this Section 8.01 to the amount of the Security Deposit. The failure by Tenant to deposit such additional amount within the foregoing time period shall be deemed a default pursuant to Section 7.01 of this Lease. (C) The Security Deposit shall be reduced from the amount set forth in Section 1.01(P) hereof to the Reduction Amount (as defined below) on the first day of the month following the month in which the first (1st), fifth (5th) and eighth (8th) anniversaries of the Rent Commencement Date applicable to the Additional Premises shall occur, respectively (each, a “Reduction Date”) provided and upon the condition that (i) this Lease shall be in full force and effect and Tenant shall not then be in monetary default hereunder, (ii) Landlord shall not have delivered more than one written notice of monetary default hereunder, and (iii) Landlord has not previously drawn on the Security Deposit by reason of an Event of Default by Tenant. For the purposes hereof, the “Reduction Amount” for the Security Deposit shall mean (i) $1,991,379 in respect of the Reduction Date occurring on the first (1st) anniversary of the Rent Commencement Date applicable to the Additional Premises, (ii) $1,455,239.00 in respect of the Reduction Date occurring on the fifth (5th) anniversary of the Rent Commencement Date applicable to the Additional Premises and (iii) $970,156.00 in respect of the Reduction Date occurring on the eight (8th) anniversary of the Rent Commencement Date applicable to the Additional Premises. In the event Tenant shall have deposited with Landlord a Letter of Credit, Landlord shall consent to a modification of the Letter of Credit to reduce the amount thereof to the Reduction Amount (the form and substance of such modification to be satisfactory to Landlord in its reasonable discretion) or shall accept a replacement Letter of Credit in the reduced amount of the Security Deposit on the applicable Reduction Date which is in form and substance reasonably satisfactory to Landlord and which otherwise satisfies the requirements hereof and shall thereupon return to Tenant the original Letter of Credit then being held by Landlord. (D) In the event Tenant defaults under the terms of the Existing Lease (or the sublease with respect to the Additional Premises) prior to the Commencement Date or if the Existing Lease is terminated by Landlord or Tenant pursuant to the terms thereof and this Lease is void pursuant to the provisions of Section 1.08(C) hereof, in addition to Tenant’s liability thereunder, Landlord shall be entitled to draw down the Letter of Credit to recover all costs funded by Landlord for Landlord’s Contribution, plus any brokerage commissions paid by Landlord in connection with this Lease. Landlord’s right to draw down the Letter of Credit as aforesaid is a material inducement to Landlord’s agreement to fund Landlord’s Contribution prior to the Commencement Date of this Lease.

Security Deposit. 5.1 Concurrent with the execution of this Lease, Tenant has deposited shall deposit with Landlord the sum specified in Section 1(a)(12)Paragraph 1(c) above. Said deposit shall constitute advance rental and sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions obligations of this Lease to be kept and performed by Tenant. Said deposit shall not be assigned, transferred or encumbered by Tenant, and any attempt to do so by Tenant during the Lease Term. Ifshall not be binding upon Landlord. 5.2 If Tenant defaults with respect to any provision of this Lease, at and such default is not cured within any time during the Lease Termapplicable cure period, or should Landlord make any payment on behalf of Minimum Annual Rent Tenant, Landlord may (but shall not be required to) use, apply or Additional Rent herein reserved shall be overdue and unpaidretain all or any part of said deposit for the payment of any rent or any other sum in default, or for the payment of any other amount which Landlord maymay spend or become obligated to spend by reason of Tenant's default, at its option, appropriate and apply or to compensate Landlord for any other loss or damage which Landlord has suffered or may suffer by reason of Tenant's default. If any portion of said security deposit is so used, applied or retained, Tenant shall, within five (5) days after Landlord's written demand therefor, deposit cash with Landlord in an amount sufficient to restore said deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a material breach of this Lease, and Landlord may, without any further notice, exercise its remedies specified in Article 25 hereof. 5.3 Landlord shall not be required to keep said deposit separate from its general funds and is in no event to be deemed a trustee thereof, and Tenant shall not be entitled to interest on any sums deposited or redeposited under this Article. Tenant acknowledges that said deposit under no circumstances will be applied toward the Leasepayment of Tenant's final monthly rental payment. Should If Tenant comply with shall have fully and faithfully performed all of its obligations under this Lease, said termsdeposit or its then remaining balance, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls dueif any, then the security deposit shall be returned in full, without interest, refunded to Tenant within thirty (30) days of after the Expiration Date or earlier termination of the Term of this Lease. If Tenant shall have no right has not hilly and faithfully performed all of its obligations under this Lease, including but not limited to direct the application requirements of any part Paragraph II.1 herein regarding Tenant's surrender of the Security Deposit. Premises upon expiration or sooner termination, Landlord may deliver apply the funds deposited hereunder by Tenant security deposit towards the costs for the cleaning and/or repair of the Premises or the costs associated with Tenant's failure to perform other obligations. In the purchaser of event Landlord's interest in the building and/or the Leased Premises this Lease is sold or otherwise terminated, Landlord shall transfer said deposit to its successor in the event that such interest is soldinterest, and thereupon Landlord shall be discharged from any further liability with respect thereto. The provisions of the preceding sentence shall likewise apply to such any subsequent transferees. 5.4 If for any reason this Lease is terminated prior to the Rent Commencement Date (other than for nonperformance of Landlord), in addition to any other rights it may have, Landlord shall have the right to retain the security deposit, the prepaid rent amount deposited pursuant to Section 3.2 above.

Security Deposit. Tenant has deposited shall deposit with Landlord one (1) month's rent (the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord "Deposit") as security for the full and faithful performance by of each and every obligation of Tenant of all pursuant to the terms, covenants and conditions provisions of this Lease to be kept and performed by Tenant during Tenant, and any renewals or extensions of this Lease, if any. In each instance when the Lease Term. If, at any time Fixed Rent increases during the Lease Term, Tenant shall, within five (5) business days after written demand therefor, deposit with Landlord an additional sum so that the amount of the Deposit held by Landlord shall at all times be the equivalent of one month's rent. If Tenant defaults with respect to any payment provision of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaidthis Lease, including, without limitation, the Landlord may, at its option, appropriate and apply any portion of said security deposit provisions relating to the payment of Rent, the reimbursement of all costs incurred by Landlord in the enforcement of its remedies under this Lease, including, without limitation, attorneys' fees and expenses, the repair of damage to the Premises or the Common Areas and/or the cleaning of the Premises upon termination of this Lease, Landlord may, to the full extent permitted by law, use, apply or retain all or any such overdue rent portion of the Deposit for payment of any Rent or other sum. Landlord shall have sum in default, for reimbursement of such costs and expenses, the unrestricted right (but not repair of such damage, the obligation) to apply any part cost of such cleaning or the Security Deposit to cure any Default (as described in Section 20 hereof). In the event payment of the failure of Tenant to keep and perform any other items, covenants and conditions amount which Landlord may spend or become obligated to spend by reason of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, 's default or so much thereof as may be necessary, to compensate Landlord for any other loss or damage sustained or suffered which Landlord may suffer by Landlord due to such breach by reason of Tenant's default. Should the entire security deposit, or If any portion thereofof the Deposit is so used or applied, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten five (105) business days of the after written demand of Landlordtherefor, a deposit cash with Landlord in an amount sufficient amount in cash to restore the security deposit Deposit to the its original sum. amount, and Tenant's failure to do so shall constitute a material breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability obligations with respect to such security depositthe Deposit are those of a debtor and not a trustee. Landlord shall not be required to keep the Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Deposit. If Tenant shall fully and faithfully perform each and every provision of this Lease to be performed by it, the Deposit or any balance thereof shall be returned to Tenant (or, at Landlord's option, to the last assignee of Tenant's interest hereunder) within a reasonable period following the expiration of the Lease term. The Deposit shall not constitute advance rent or liquidated damages, nor shall Landlord's application of the Deposit in any way limit or restrict the remedies which would otherwise be available to Landlord. Notwithstanding anything to the contrary contained herein, so long as Tenant is the original tenant named herein, Tenant shall not be required to deposit the Deposit.

Security Deposit. Concurrently with Tenant's execution of this Lease, Tenant has deposited shall deposit with Landlord the sum specified set forth in Section 1(a)(12). Said deposit shall constitute advance rental and 6 of Exhibit A, which sum shall be held by Landlord as security a "Security Deposit" for the faithful performance by Tenant of all the terms, Tenant's covenants and conditions obligations under this Lease, it being expressly understood that the deposit shall not be considered an advance payment of Rent or a measure of Landlord's damage in case of default by Tenant. If Tenant fully and faithfully performs its obligations under this Lease Lease, and delivers possession of the Premises to Landlord, in accordance with this Lease, the Security Deposit, or balance thereof then held by Landlord, shall be kept returned to Tenant at the expiration of the Term and performed after Tenant has delivered and surrendered to Landlord possession of the entire Premises and further provided that no default by Tenant during under the Lease Termshall have occurred and be continuing without cure at such time. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its optionbut shall not be obligated to, appropriate and use or apply any portion of said security deposit to the payment of any such overdue rent all or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit, as necessary, to cure any default of Tenant under this Lease. In the event all or any portion of the Security Deposit is applied by Landlord to cure any default or pay for any cost, expense, damage or loss pursuant to this Lease, Tenant shall, within five (5) days of Landlord's demand, deposit with Landlord such sums as may be necessary to restore the Security Deposit to its original amount. The failure of Tenant to restore the Security Deposit to its full amount shall entitle Landlord to all of the same rights and remedies Landlord has for non-payment of Rent by Tenant. Landlord may deliver shall be free to commingle the funds deposited hereunder Security Deposit with Landlord's own funds. In the event of a transfer by Tenant to the purchaser Landlord of Landlord's interest in the building and/or Premises, Landlord may deliver the Leased Premises in Security Deposit to the event that such interest is sold, transferee of Landlord and thereupon Landlord shall thereupon be discharged from any further liability to Tenant with respect to such security depositSecurity Deposit, provided such transferee assumes Landlord's obligations with respect to such Security Deposit. In the event of an assignment of this Lease by Tenant, the Security Deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility for the return of such Security Deposit to the assignor. Tenant shall not assign or otherwise encumber or pledge the Security Deposit.

Security Deposit. Tenant has deposited with shall pay to Landlord a security deposit (the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord “Security Deposit”) on the date hereof as security for the faithful performance and observance by Tenant of all the terms, provisions and conditions of the Lease in an initial total amount equal to three months’ Base Rent, to be paid in four equal installments commencing on Commencement Date and on the first day of each of the third, sixth and ninth calendar month. On the first anniversary of the Commencement Date occurring after the Option Expiration Date, and on the anniversary of the Commencement Date every three Lease Years thereafter, Tenant shall deposit such additional amounts as required in order that the amount of the Security Deposit shall be equal to three months of Base Rent for the forthcoming year. The Security Deposit shall be in the form of a Letter of Credit or cash, at Tenant’s option. If the deposit is made in cash, it shall be held in an interest-bearing account, with interest thereon distributed to Tenant annually on or around December 31st. If Tenant defaults in the full and prompt payment and performance of any of Tenant’s covenants or obligations under the Lease beyond any applicable notice and cure period, including, without limitation, a default in the payment of Base Rent or Additional Rent, Landlord may use, apply or retain the whole or any part thereof, to the extent required for the payment of any Base Rent, Additional Rent or any other sums owing or which may become due and owing under this Lease. If Landlord shall so apply, use or retain all or any part of the Security Deposit, Tenant shall upon demand by Landlord, deposit, within five (5) business days of such demand, with Landlord a sum of cash equal to the amount used, applied or retained, as security as aforesaid, failing which Landlord shall have the same rights and remedies as under the Lease for non-payment of Base Rent. If Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this Lease to be kept and performed by Tenant during the Lease Term. IfLease, at any time during the Lease Termincluding, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit but not limited to the payment requirements of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of Section 21(A), the Security Deposit shall be promptly returned to cure any Default Tenant after the earlier of (as described in Section 20 hereof). In x) the event of date that the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit Premises is transferred to the original sum. Tenant's failure Tenant pursuant to do so shall constitute a breach of the Lease. Should Tenant comply with all of said termsBuyout Option, covenants if applicable, and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30y) days of the Expiration Date or earlier termination and delivery of possession of the Term of this Lease. Tenant shall have no right Premises to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security deposit.

Security Deposit. Tenant has deposited or concurrently herewith is depositing with Landlord the sum specified set forth in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord 1H of the Basic Lease Provisions as security for the full and faithful performance by Tenant of all the terms, covenants and conditions every provision of this Lease to be kept and performed by Tenant. If Tenant during breaches any provision of this Lease, including but not limited to the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent rent, Landlord may use all or Additional Rent herein reserved shall be overdue and unpaidany part of this security deposit for the payment of any rent or any other sums in default, the or to compensate Landlord may, at its option, appropriate and apply for any other loss or damage which Landlord may suffer by reason of Tenant's default. If any portion of said security deposit to the payment of any such overdue rent is so used or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of applied, Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten five (105) days of the after written demand of Landlordtherefor, a deposit cash with Landlord in an amount sufficient amount in cash to restore the security deposit to the original sumits full amount. Tenant's failure Tenant agrees that Landlord shall not be required to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then 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 security deposit or any balance thereof shall be returned to Tenant (or, at Landlord's option, to Tenant's "Transferee", as such term is defined in fullSection 15 below), without interestprovided 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 date of expiration or earlier termination of this Lease and any amounts so retained and not applied to such reconciliation shall be returned to Tenant within thirty (30) days after Landlord's delivery of the Expiration Date or earlier termination of Statement for such calendar year), (ii) any and all amounts reasonably estimated by Landlord to cover the Term of anticipated costs to be incurred by Landlord to remove any signage provided to Tenant under this Lease, to remove cabling and other items required to be removed by Tenant under Section 29C 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), and (iii) any and all amounts permitted by law or this Section 4. Tenant shall have no right to direct the application hereby waives any provisions of any part of the Security Deposit. law, now or hereafter in effect, which provide that Landlord may deliver claim from a security deposit only those sums reasonably necessary to remedy defaults in the funds deposited hereunder payment of rent, to repair damage caused by Tenant or to clean the purchaser Premises, it being agreed that Landlord may, in addition, claim those sums specified in this Section 4 above, and all of Landlord's interest in damages under this Lease and Arizona law including, but not limited to, any damages accruing upon termination of this Lease and/or termination of Tenant’s right to possession of the building Premises and/or those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the Leased Premises in the event that such interest is soldacts or omissions of Tenant or any officer, and thereupon Landlord shall be discharged from any further liability with respect to such security depositemployee, agent, contractor or invitee of Tenant.

Security Deposit. A. Tenant has upon his/ her execution of this lease deposited with Landlord the sum specified of $2,700. (the “Security”) to secure Tenant’s full and faithful compliance with the obligations on its part t be performed hereunder. Landlord will deposit this Security in Section 1(a)(12)BankUnited (the “Bank”) located at ▇▇▇ ▇ ▇▇▇▇ ▇▇▇▇▇▇ - ▇▇▇ ▇▇▇▇▇. Said deposit shall constitute advance rental and shall be held by If the law states that the security must bear interest then such account will earn interest. If Tenant carries out all of Tenant’s obligations under this Lease at the end of each calendar year comprising the Term, the bank or Landlord as security will pay Tenant the interest earned on the Security for the faithful performance by Tenant of all the termsimmediately previous year, covenants and conditions of this Lease less any sum Landlord is legally permitted to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the keep for its administrative expenses in connection with maintaining such Security account. B. Landlord may, at its Landlord’s option, appropriate and apply all, or any portion, of the Security to any unpaid Rent, Additional Charges, or any other sums due from Tenant under this Lease, or to cure any other default(s) of Tenant hereunder. Should all or any portion of said security deposit the Security be so applied by Landlord, Tenant shall, upon within five (5) days of Landlord’s demand, remit to Landlord a sum in an amount necessary to restore the Security to the amount of the Security originally set forth on Page 1 of this Lease. Tenant’s failure to do so within such five (5) day period shall constitute a material default and breach under this Lease giving Landlord a right to terminate this Lease prior to the End Date. The Security may not be used to satisfy the payment of any such overdue rent Rent or other sum. Additional Charges including, without limitation, to satisfy the payment of Rent or Additional Charges due and payable with respect to the last calendar month of the Term. C. If Tenant carries out all of Tenant’s obligations hereunder and moves out of the Apartment on the Ending Date and delivers the Apartment to Landlord in the same condition existing on the Beginning Date, except for ordinary wear and tear, Landlord shall have return to Tenant the unrestricted right full amount of the Security together with any interest then accrued thereon within fourteen (but 14) days from Ending Date. If Tenant does not carry out all of the obligation) obligations on its part to apply any performed under this Lease, Landlord may keep all or part of the Security Deposit deposit (together with any interest which has not yet been paid to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant Tenant) necessary to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate pay Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied losses incurred by Landlord for the non-payment of overdue rentRent or Additional Charges. D. If Landlord sells or leases the Building to a third party, Landlord will transfer the Security, together with any interest then accrued thereon, to cure any defaultsuch third party. Landlord will then notify Tenant by registered or certified mail, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand name and address of Landlordsuch third party to whom Landlord transferred the Security. In such event, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, Landlord will have no further responsibility to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of for the Security Deposit. Landlord may deliver and new owner or landlord will be responsible to Tenant for the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositSecurity.

Security Deposit. 24.01 Upon execution of this Lease, Tenant has deposited shall deposit with Landlord the sum specified set forth in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord 1.01(I) as security for the faithful performance by Tenant of all the terms, covenants every covenant and conditions condition of this Lease Lease. Said deposit may be commingled with other funds of Landlord. If Tenant shall default with respect to be kept and performed by Tenant during any covenant or condition of this Lease, Landlord may apply the Lease Term. If, at whole or any time during the Lease Term, any payment part of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said such security deposit to the payment of any such overdue rent sum in default or other sumany sum which Landlord may be required to spend by reason of Tenant's default. Landlord shall have This includes, but is not limited to, applying the unrestricted right (but not the obligation) security deposit first to apply any part restoration and/or cleanup costs necessary over and above normal wear and tear of the Security Deposit to cure vacated space. If at any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate time Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, properly applies all or any portion thereofof the security deposit as provided herein, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten thirty (1030) days after written notice of the written demand of Landlordsuch application, a sufficient amount in cash to restore cause the security deposit to be replenished to the original sumfull amount provided for herein. TenantIt is understood that the security deposit is not to be considered as the last month's failure to do so shall constitute a breach of rent under the Lease. Should Tenant comply with all of said terms, the covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls duethis Lease, then the security deposit or any balance thereof shall be returned in fullto Tenant, without interest, at the expiration of the Term hereof. 24.02 In lieu of a cash security deposit, Tenant may furnish Landlord an Irrevocable Letter of Credit (the "LC") for the benefit of Landlord in the amount of the required security deposit, which LC Landlord may draw upon in the event of a default by Tenant hereunder, or on account of Tenant's failure to renew an expiring LC as set forth below. The LC shall be issued by a bank reasonably satisfactory to Landlord and shall include such terms (including, without limitation, the right to assignment of the LC without cost to Landlord to a successor landlord) as Landlord may reasonably request. The LC shall provide that Landlord may draw on the LC by furnishing a sight draft in the amount demanded together with a statement certified by Landlord that then is an outstanding default hereunder and Landlord is entitled to draw upon the LC in the amount being demanded by Landlord as a result of such default. The initial LC shall be valid for at least one (1) year and Tenant shall cause the LC to be renewed no later than sixty (60) days prior to its expiration date and any renewal shall be for at least one (1) year. If Tenant fails to renew an expiring LC (and furnish Landlord the renewal document) at least thirty (30) days prior to an expiration, Landlord, with not less than sixty (60) days prior written notice to Tenant, shall be entitled thereafter to draw upon the LC in the full amount of the LC (unless a renewal or replacement LC is provided during said ten (10) day period) in which event Landlord shall retain said money as a cash security deposit hereunder. If at any time Landlord draws upon the LC (except to the extent the LC is converted to a cash security deposit), Tenant shall, within thirty (30) days thereafter, cause the LC to be replenished to the full amount provided for herein. 24.03 If Tenant has not, at any time prior to the date on which each of the Expiration Date following reductions shall occur, been in monetary default or earlier termination any other default under this Lease, the security deposit required hereunder shall be reduced as follows: (a) at the end of the Term Second Lease Year to Four Hundred Thousand and 00/100 Dollars ($400,000.00), (b) at the end of this Leasethe Fourth Lease Year to Two Hundred Thousand and 00/100 Dollars ($200,000.00), and (c) at the end of the Sixth Lease Year to an amount equal to three (3) months of Base Rent plus Additional Rent. In such event, Landlord shall promptly refund the excess security deposit to Tenant shall have no right (if in the form of cash) or cooperate with Tenant's efforts to direct reduce the application amount available under any LC posted as a security deposit or the return of any part such security deposit and replacement of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest same with an LC in the building and/or correct amount, as the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositcase may be.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant has deposited shall deposit with Landlord the sum specified in Section 1(a)(121(a) (13) (the “Security Deposit”). Said deposit No interest shall constitute advance rental and be payable on the Security Deposit. The Security Deposit 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 during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaidunpaid beyond the applicable notice and cure period set forth in Section 19(a) of this Lease, the then Landlord may, at its option, appropriate and apply any portion of said security deposit Security Deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep is in default beyond applicable notice and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenantcure period, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof of the Security Deposit as may be necessary, to compensate Landlord for the actual loss or damage sustained or suffered by Landlord due to such breach by on the part of Tenant. Should the entire security depositSecurity Deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, rent or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days after Tenant’s receipt of the written demand of Landlord, a sufficient amount in cash to restore the security deposit Security Deposit to the original sum. Tenant's ’s failure to do so shall constitute a breach of this Lease for which, notwithstanding anything in this Lease to the Leasecontrary, the notice and cure period shall be five (5) days. Should If Tenant comply complies with all of said terms, covenants and conditions of the this Lease and promptly pay has paid all installments of Minimum Annual Rent and Additional Rent then due as herein provided as it falls dueprovided, then the security deposit Security Deposit shall be returned in full, without interest, full to Tenant within thirty forty-five (3045) days of the Expiration Date or earlier termination of the Term of Lease Term, less any amount properly applied by Landlord in accordance with this Lease. Tenant Landlord shall have no right to direct the application of any part of deliver the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant Deposit to the purchaser of Landlord's ’s interest in the building Building and/or the Leased Premises in the event that such interest is sold, and thereupon upon confirmation from the purchaser of said interest of receipt of the same, Landlord shall be discharged from any further liability with respect to such security depositSecurity Deposit.

Security Deposit. Tenant has deposited with Landlord the sum specified Security Deposit designated in Section 1(a)(12)Paragraph 20 of the Basic Lease Terms. Said deposit shall constitute advance rental and shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants covenants, and conditions of this Lease to be kept and performed by Tenant during the Lease Term. Ifterm hereof If Tenant defaults with respect to any provision of this Lease, at any time during including but not limited to the Lease Term, any provisions relating to the payment of Minimum Annual Rent rent, Landlord may (but shall not be required to) use, apply or Additional Rent herein reserved shall be overdue and unpaidretain 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, at its option, appropriate and apply 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. If any portion of said security deposit to the payment of any such overdue rent is so used or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of applied, Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlordshall, within ten (10) days of the written after demand of Landlordtherefor, a deposit cash with Landlord in an amount sufficient amount in cash to restore the security deposit Security Deposit to the its original sum. amount and Tenant's failure to do so shall constitute be a material breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall have no right not be entitled to direct the application of any part of the interest on such Security Deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit or any balance thereof shall be returned to Tenant (or at Landlord's option, to the last assignee of Tenant's interests hereunder) at the expiration of the Lease term, provided that Landlord may deliver retain the funds deposited hereunder by Security Deposit until such time as any amount due from Tenant to the purchaser of Landlord's in accordance with Paragraph 4 and 5 hereof has been determined and paid in full. Should Landlord sell its interest in the building and/or Premises during the Leased Premises in term hereof or if Landlord deposits with purchaser thereof the event that such interest is soldthen unappropriated funds deposited by Tenant as aforesaid, and thereupon Landlord shall be discharged from any further liability with respect to such security depositSecurity Deposit.

Security Deposit. a. Landlord acknowledges receipt from Tenant has deposited with Landlord of a security deposit in the sum specified amount set forth in Section 1(a)(12)1.k. Said deposit shall constitute advance rental and shall hereof (the “Security Deposit”) to be held by Landlord during the Term as collateral security (and not prepaid rent), for the payment of Annual Base Rent and Additional Rent and for the faithful performance by Tenant of all the termsother covenants, covenants conditions and conditions agreements of this Lease Lease. Landlord shall not be obligated to be kept and performed hold the Security Deposit in a separate account. The Security Deposit shall not earn interest. If any sum payable by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved to Landlord shall be overdue and unpaid, or if Landlord makes any payments on behalf of Tenant, or if Tenant fails to perform any of the Landlord mayterms of this Lease, then Landlord, at its optionoption and without prejudice to any other remedy which Landlord may have, appropriate and may apply any portion of said security deposit to the payment of any such overdue rent all or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure compensate Landlord for the payment of Annual Base Rent or Additional Rent, or any Default loss or damage sustained by Landlord. Tenant shall restore the Security Deposit to the original sum deposited upon demand. Provided that Tenant shall have made all payments and performed all covenants and agreements of this Lease, Landlord shall return the Security Deposit to Tenant (except to the extent of any portion of the Security Deposit which has been applied by Landlord and not restored by Tenant) within one hundred and twenty (120) days after the expiration of this Lease or the vacation of the Premises by Tenant, whichever is later or as described in Section 20 hereof). soon thereafter as possible. b. In the event of the failure sale or transfer of Landlord’s interest in the Building, Landlord shall have the right to transfer the Security Deposit to the purchaser or assignee, in which event Tenant shall look only to keep and perform any other items, covenants and conditions the new landlord for the return of the Lease Security Deposit, and Landlord shall thereupon be released from all liability to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord Tenant for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part return of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant hereby agrees not to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security deposit.look

Security Deposit. Tenant has deposited with Landlord the sum specified in Section 1(a)(12)Security Deposit. Said deposit shall constitute advance rental and The Security Deposit shall be held by Landlord as a combined cleaning, damage and security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions terms of this Lease to Lease. The Security Deposit shall not be kept and performed mortgaged, assigned, transferred or encumbered by Tenant during without the Lease Termwritten 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, at If any time during the Lease Term, any payment of Minimum Annual Rent Rents or Additional Rent herein reserved other sum due hereunder shall be overdue and unpaidunpaid or should Landlord make payments on behalf of the Tenant, or should Tenant fail to perform any of the terms of this Lease, including and not limited to Tenant’s obligations to restore or clean the Premises following vacation thereof, then Landlord may, at its optionoption and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the entire Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, necessary to compensate Landlord toward the payment of Rent or other sums due Landlord or for the loss or damage sustained or suffered by Landlord due to such breach by on the part of Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then ; Tenant shall remit to Landlord, within ten (10) days of the written after demand of Landlord, a sufficient amount in cash to therefore restore the security deposit said Security Deposit to the original sumsum deposited. Tenant's failure to do so shall constitute a breach Landlord may retain such portion of the LeaseSecurity Deposit without obligation for repayment as is customary to restore, repair or remove debris from the Premises following vacation by Tenant. This Security Deposit is not to be characterized as rent until and unless so applied in respect of a default. The Security Deposit shall not bear interest, nor shall Landlord be required to keep such sum separate from its general funds. Should Tenant comply with all of said termsterms and promptly pay all Rent and all other sums payable by T▇▇▇▇▇ when due to Landlord, covenants and conditions said Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) at the expiration of the term of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days T▇▇▇▇▇’s vacation of the Expiration Date or earlier termination Premises, subject to any expenses that Landlord may incur as a result of T▇▇▇▇▇’s failure to comply with the Term provisions of this Lease. In the event Tenant fails to occupy the Premises in accordance with the terms of this Lease, Landlord’s remedies shall have no right include, without limitation thereto, retention of all sums deposited herewith or otherwise paid pursuant to direct this Lease. In the application event of any part of the Security Deposit. bankruptcy or other debt or creditor proceedings against Tenant, Landlord may deliver elect to apply such Security Deposit first to all attorneys’ fees and costs incurred by Landlord and then either to (i) the funds deposited hereunder by Tenant payment of Rent and other sums due Landlord for all periods prior to the purchaser filing of Landlord's interest in bankruptcy proceedings, or (ii) the building and/or payment of Rent and other sums due to Landlord for all periods after the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositfiling of bankruptcy proceedings.

Security Deposit. Upon execution of this Lease, Tenant has deposited shall deposit with Landlord the sum specified in Section 1(a)(12)Security Deposit. Said deposit shall constitute advance rental and The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants and conditions terms of this Lease to be kept observed and performed by Tenant. The Security Deposit shall not be mortgaged, assigned, transferred or encumbered by Tenant during and any such act on the Lease Termpart of Tenant shall be without force and effect and shall not be binding upon Landlord. If, at any time during Tenant shall cause the Lease Term, any payment of Minimum 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 herein reserved payable hereunder shall be overdue and unpaidunpaid for more than ten (10) business days 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, appropriate option and apply any portion of said security deposit without notice or prejudice to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other itemsremedy which Landlord may have on account thereof, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, Security Deposit or so much thereof as may be necessary, necessary to compensate Landlord for toward the payment of Annual Fixed Rent, Additional Rent or other sums or loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated ; and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit Security Deposit to the original sumamount stated in Section 1.1. Tenant's failure to do so shall constitute a breach Notwithstanding the foregoing, upon the application by Landlord of all or any portion of the Lease. Should Security Deposit (with or without notice thereof to Tenant) to compensate Landlord for a failure by Tenant comply with all of said terms, covenants and conditions of the Lease and promptly to pay all Minimum any Annual Fixed Rent and or Additional Rent herein provided as it falls duewhen due or to perform any other obligation hereunder, then and until Tenant shall have restored the security deposit Security Deposit to the amount required by Section 1.1, Tenant shall be returned deemed to be in fulldefault in the payment of Additional Rent for purposes of Section 8.1(a)(I) hereof. So long as Tenant shall not be in ongoing and continuing default of its obligations under this Lease, without interestLandlord 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 within thirty (30) days of following the Expiration Date 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. Tenant While Landlord holds the Security Deposit, Landlord shall have no right obligation to direct pay interest on the same. 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 any part 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. Landlord may deliver the funds deposited hereunder by Tenant , whether or not it succeeds to the purchaser position of Landlord's interest in Landlord hereunder, unless such holder actually receives the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositSecurity Deposit.

Security Deposit. If a Security Deposit (hereinafter referred to as the “Deposit”) is specified as part of the Reference Data, Tenant has deposited with agrees that the same will be paid upon execution and delivery of this lease, and that Landlord shall hold the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord same throughout the term of this lease as security for the faithful performance by Tenant of all obligations on the terms, covenants and conditions part of this Lease to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sumhereunder. Landlord shall have the unrestricted right (but not the obligation) from time to time, without prejudice to any other remedy Landlord may have on account thereof, to apply the Deposit, or any part of the Security Deposit thereof, as shall be necessary to cure any Default (as described in Section 20 hereof)default of Tenant continuing beyond any applicable grace period and compensate Landlord for all losses, liabilities, damages and other expenses to which Landlord is entitled hereunder, including without limitation reasonable attorneys’ fees, which may be imposed upon, incurred by or asserted against Landlord by reason of such default. In the event If Landlord shall so apply any or all of the failure of Deposit, Tenant to keep and perform any other items, covenants and conditions of shall immediately deposit with Landlord the Lease amount so applied to be kept and performed by held as security hereunder. There then existing no default of Tenant, then Landlord, at its option, may appropriate and apply Landlord shall return the entire security depositDeposit, or so much thereof as shall have theretofore not been applied in accordance with the terms of this Section, to Tenant by means of a credit against the final payment of Yearly Fixed Rent due under this lease, with any excess remaining amount of the Deposit to be returned to Tenant on the expiration or earlier termination of the term of this lease and surrender of possession of the premises by Tenant to Landlord in conformity with the requirements of this lease. The Deposit shall be held in a separate account and any interest earned thereon shall be disbursed to Tenant at the end of each Rent Year, there then existing no default of Tenant, or otherwise added to the Deposit and applied or returned in accordance with the foregoing provisions. If Landlord conveys Landlord’s interest under this lease, the Deposit, or any part thereof not previously applied, shall be turned over by Landlord to Landlord’s grantee (including the holder of a mortgage) and, if so turned over, Tenant agrees to look solely to such grantee for proper application of the Deposit in accordance with the same terms of this Section, and the return thereof in accordance herewith. The holder of a mortgage shall not be responsible to Tenant for the return or application of the Deposit, whether or not it succeeds to the position of Landlord hereunder, unless the Deposit shall have been received in hand by such holder. Tenant shall be entitled to pay the Deposit (either initially or to replace a previous cash payment) in the form of an irrevocable letter of credit subject to the following terms and conditions. Said letter of credit shall be issued by a commercial bank reasonably acceptable to Landlord and shall be in form and content reasonably satisfactory in all respects to Landlord. In the event of any default by Tenant continuing beyond any applicable grace period, Landlord shall be entitled to receive from the issuer of such letter of credit upon demand so much of the amount which may be necessary, drawn therefrom as shall be necessary to cure such default and compensate Landlord for loss all losses, liabilities, damages and other expenses to which Landlord is entitled hereunder, including without limitation reasonable attorneys’ fees, which may be imposed upon, incurred by or damage sustained or suffered asserted against Landlord by Landlord due reason of such default, and Tenant shall thereafter promptly restore such letter of credit to its original amount. If Tenant fails to restore such breach by Tenant. Should the entire security depositletter of credit to its original amount as hereinabove required, or any portion thereof, be appropriated if such letter of credit is about to expire and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent not have been renewed as herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant required within thirty (30) days preceding such expiration, then in any such event Landlord may upon demand withdraw all remaining available funds under such letter of credit and hold the Expiration Date or earlier termination of same as a cash security deposit pursuant to the Term preceding provisions of this LeaseSection. Tenant shall have no right submit to direct Landlord within thirty (30) days following each of Tenant’s quarterly accounting periods a statement prepared in accordance with generally accepted accounting principles and certified as correct by Tenant’s chief financial officer, which statement shall set forth Tenant’s positive net cash flow from operations before non-recurring and/or extraordinary income items, depreciation and amortization (hereinafter referred to as “EBITA”) for such quarter. Following each period after the application of any part second anniversary of the Security Deposit. Rent Commencement Date during which, according to such statements, Tenant’s EBITA has been at least $250,000 for four such quarterly accounting periods in succession, the amount of the Deposit may be reduced by $50,000 so long as there is then existing no default of Tenant, provided however that the amount of the Deposit (excluding accrued interest held by Landlord may deliver thereon) shall in no event be decreased below $150,000 and provided further that Tenant shall immediately restore the funds deposited hereunder by Tenant Deposit to the purchaser of Landlord's interest in the building and/or the Leased Premises its original amount in the event that that, according to any such interest statement, Tenant’s EBITA is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositless than $250,000 for a particular quarterly accounting period.

Security Deposit. 44.01 The Tenant has deposited shall keep on deposit with the Landlord at all times during the sum term of this Lease, the Lease Deposit ("Lease Deposit") specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord on the Facing Page (subject to adjustment pursuant to the provisions of subsection 62.02(d) of the Addendum) hereof as security for the payment by the Tenant of the rent or any other sums due under this Lease and for the faithful performance by Tenant of all the terms, conditions and covenants and conditions of this Lease Lease; provided, however, that Landlord agrees to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions return $20,052.42 of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, Deposit to Tenant within thirty (30) days after the last day of the Expiration Date or earlier termination twenty-second (22nd) month of the Term Term, provided that Tenant has performed all of its obligations under this Lease through and including the last day of such calendar month. If at any time during the term of this Lease. Lease the Tenant shall be in default in the performance of any provision of this Lease after any required notice and expiration of any applicable cure period, the Landlord may (but shall not be required to) use the Lease Deposit, or so much thereof as necessary, in payment of any rent or any other sums due under this Lease in default, in reimbursement of any expense incurred by the Landlord and in payment of the damages incurred by the Landlord by reason of the Tenant's default. In such event, the Tenant shall, on written demand of the Landlord, forthwith remit to the Landlord a sufficient amount in cash to restore any amounts paid from the Lease Deposit. If the Lease Deposit has not been utilized as aforesaid, the Lease Deposit, or as much thereof as has not been utilized for such purposes, shall be refunded to the Tenant, without interest, upon full performance of this Lease by the Tenant. Landlord shall have no the right to direct the application of any part commingle such deposit with other funds of the Security DepositLandlord. Landlord may shall deliver the funds deposited hereunder herein by the Tenant to the any purchaser of the Landlord's interest in the building and/or the Leased Premises in the event that such interest is be sold, and thereupon thereupon, the Landlord shall be discharged from any further liability with respect to the Lease Deposit. Notwithstanding the above provisions of this section, if claims of the Landlord exceed the Lease Deposit provided for therein, the Tenant shall remain liable for the balance of such security depositclaims.

Security Deposit. Tenant has deposited with (a) Landlord the sum specified in Section 1(a)(12). Said shall retain existing security deposit shall constitute advance rental and shall be held by Landlord as security (“Security Deposit”) for the full and faithful performance by Tenant of all the terms, covenants and conditions every provision of this Lease to be kept and performed by Tenant during Tenant. Upon the Lease Term. Ifoccurrence of a continuing Event of Default, at any time during including, but not limited to, the Lease Term, any provisions relating to the payment of Minimum Annual Rent, Landlord may use, apply or retain any part or all of the Security Deposit for the payment of any Rent, Landlord may use, apply or retain any part or all of the Security Deposit for the payment of any Rent or Additional Rent herein reserved shall be overdue and unpaid, for the payment of any other amount which Landlord may, at its option, appropriate and apply may spend or become obligated to spend by reason of an Event of Default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason on an Event of Default. If any portion of said security Security Deposit is to be used or applied, Tenant shall, within five (5) days after written demand therefore, deposit cash with Landlord in an amount sufficient to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of restore the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep its required amount, and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's ’s failure to do so shall constitute a breach be an Event of the Default under this Lease. Should Landlord shall not be required to keep said Security Deposit separate from its general funds, and Tenant comply with all shall not be entitled to interest on any Security Deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit Security Deposit or any balance thereof shall be returned in fullto Tenant (or, without interestat Landlord’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days of after the Expiration Date expiration or earlier termination of this Lease and Tenant’s vacation of the Term Premises. (b) Tenant hereby agrees not to look to any mortgagee as mortgagee, mortgagee-in- possession or successor in title to the Premises for accountability for any Security Deposit required by Landlord hereunder, unless said sums have actually been received by said mortgagee as security for Tenant’s or Landlord’s performance of this Lease. Tenant Landlord shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's ’s interest in the building and/or the Leased Premises Premises, in the event that such interest is sold, and thereupon upon such delivery, such purchaser or assignor shall be deemed to have agreed to hold such funds in accordance with and subject to the terms and condition of Section 8.17 hereof, and Landlord shall be discharged from any further liability with respect to such security depositthe Security Deposit.

Security Deposit. Tenant has deposited A. Tenants shall deposit with Landlord an amount equal to one (1) month’s Monthly Rent as a security deposit (the sum specified “Security”) in accordance with the provisions of this Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord as security 6 for the Tenants’ faithful performance by of his or her obligations under this Lease. B. Tenants agrees and affirms that Landlord is authorized to automatically debit a designated bank account, or to process payment with any other applicable third-party payment processor, for Security. Landlord will notify Tenants of the name and address of the Bank in which the security is deposited. C. If any Tenants or any Tenant of all the termsdoes not pay Monthly Rent on time, covenants and conditions of this Lease to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its optionbut is NOT required to, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof)pay the Monthly Rent then due. In the event of the failure of If Tenants or a Tenant fails to keep and timely perform any other itemsterm contained in this Lease or causes any damage to the Apartment or the Building or to any of Landlord or Landlord’s Agent’s property contained therein, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, Landlord may appropriate and apply the entire security depositSecurity for reimbursement of any sums Landlord may spend, or so much thereof as may be necessary, to compensate damages Landlord for loss or damage sustained or suffered by suffers because of Tenants’ failure. D. If Landlord due to such breach by Tenant. Should the entire security deposit, applies any Security or any portion thereof, be appropriated and then Tenants shall, immediately upon notice from Landlord, send to Landlord an amount equal to the sum so applied by Landlord for Landlord, and that amount shall be due, when billed, as an Additional Rent hereunder. At all times the payment amount of overdue rentSecurity stated above shall be maintained by Landlord. E. If a Tenants fully performs all terms of this Lease, to cure any defaultpay Monthly Rent on time, or other sums due and payable to Landlord by Tenant timely vacates the Apartment and leaves same in good condition as required hereunder, then Tenant shall remit Landlord will return any Security being held to Landlordsuch Tenants as per this section. F. If Landlord sells or assigns the Lease (as defined in this Lease), within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore Landlord may give the security deposit to the original sumbuyer or assignee. Tenant's failure In that event, Tenants will look only to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of buyer or assignee for the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part return of the Security Depositand Landlord will be deemed released. G. Landlord may put the Security in any place permitted by law. The Security will bear interest only if required by law. Landlord may deliver will give Tenants the funds deposited hereunder by interest when ▇▇▇▇▇▇▇▇ is required to return the Allocable Security to a Tenants. Any interest returned to Tenants will be less the sum Landlord is allowed to keep for expenses. Landlord need not give a Tenant’s interest on the Allocable Security if such Tenants is in default. H. No Tenant shall use the Security to pay any portion of the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositMonthly Rent.

Security Deposit. Section 1. Upon execution of this Lease, the Tenant has deposited shall deposit with Landlord the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord of $14,812.20 as security for the full and faithful performance by Tenant of all obligations under this Lease upon the part of Tenant to be performed. Upon the expiration of the term of this Lease, and providing Tenant is not in default hereunder and has performed all of the conditions of this Lease, Landlord shall return the said sum to Tenant. Tenant covenants and agrees that it will not assign, pledge, hypothecate, mortgage or otherwise encumber the aforementioned security during the term of this Lease. It is expressly understood and agreed that the right to co-mingle the security funds with its general funds and said security funds with its general funds and said security shall not be required to be segregated. Section 2. In the event of the failure of Tenant to keep and perform any of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during Tenant, then at the Lease Term. If, at any time during the Lease Term, any payment option of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord said Landlord may, at its optionafter terminating this Lease, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, necessary to compensate the Landlord for all loss or damage sustained or suffered by Landlord due to such breach by on the part of Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, rent or other sums due and payable to Landlord by Tenant hereunder, or should there be any increase in the Fixed Rent then Tenant shall remit to Landlordshall, within ten (10) days of upon the written demand of Landlord, forthwith remit to Landlord a sufficient amount in cash to restore the security deposit equal to the original sum. portion appropriated or applied by Landlord as above provided, and/or the amount of any increase in the Fixed Rent, as the case may be, and Tenant's failure to do so within five (5) days after receipt of such demand shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Section 3. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's reversionary interest in the building and/or the Leased Premises Premises, in the event that such reversionary interest is sold, be sold and thereupon Landlord shall be discharged from any further liability with respect to such security deposit.

Security Deposit. Concurrently herewith Tenant has deposited with Landlord shall deliver to Landlord, in cash, the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord Security Deposit as security for the Tenant's faithful performance by of Tenant's obligations under this Lease. If Tenant of all the terms, covenants and conditions of this Lease fails to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual pay Rent or Additional Rent herein reserved shall be overdue and unpaidany other charges due hereunder before the expiration of any applicable cure period, the or otherwise is in Default under this Lease, Landlord maymay use, at its option, appropriate and apply or retain all or any portion of said security deposit to the Security Deposit for the payment of any amount due Landlord or to reimburse or compensate Landlord for any liability, cost, expense, loss or damage (including reasonable attorneys' fees) which Landlord may suffer or incur by reason thereof. Any such overdue rent use or other sumapplication shall not cause a waiver or cure of any Default under this Lease. If Landlord uses or applies all or any portion of the Security Deposit, Tenant shall within ten (10) days after written request therefor deposit monies with Landlord sufficient to restore the Security Deposit to the full amount thereof set forth in Section 2.8 above. Landlord shall have the unrestricted right (but not the obligation) be required to apply keep all or any part of the Security Deposit to cure any Default (as described in Section 20 hereof)separate from its general account. In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then LandlordLandlord shall, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date expiration or earlier termination of the Term term of this Lease, and after Tenant has vacated the Demised Premises in accordance with the terms of this Lease, return to Tenant (or, at Landlord's option, to the last assignee, if any, of Tenant's interest herein unless Tenant has instructed Landlord in writing to return the Security Deposit to Tenant), that portion of the Security Deposit not used or applied by Landlord together with interest on any portion of the Security Deposit held by Landlord and not applied pursuant to the terms hereof, at a rate equal to six percent (6%) per annum, compounded. Tenant shall have Unless otherwise expressly agreed in writing by Landlord, no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder Deposit shall be considered to be held in trust, or to be prepayment for any monies to be paid by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositunder this Lease.

Security Deposit. Tenant has deposited with Landlord the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental 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 during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said Lessor a security deposit to in the payment amount of any such overdue rent or other sum$ . Landlord Lessor shall have the unrestricted right (right, but not the obligation) , to apply any 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 Security Deposit covenant or agreements contained herein. Lessor’s right to cure any Default (as described in Section 20 hereof). In the event possession of the failure apartment for non-payment of Tenant to keep and perform rent or any other items, covenants and conditions reason shall not be affected by the fact that Lessor holds security. Tenant’s Liability is not limited to the amount of the security deposit. Upon expiration or termination of the Lease to be kept by Lessor, and performed by full payment of all amounts due and performance of all Tenant, then Landlord, at its option, may appropriate ’s covenants and apply agreements (including surrender of the entire apartment in accordance with Paragraph 16) the security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, deposit or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit thereof remaining unapplied shall be returned in full, without interest, to Tenant within thirty (30) days of such expiration or termination by Lessor without interest. In the Expiration Date event of a sale, lease, or earlier termination other transfer of the Term Building, Lessor may transfer or assign said security deposit to Lessor’s grantee, lessee, or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Lessor assumes all Lessor’s obligation 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. Tenant hereby agrees not to look to the mortgagee as mortgagee, mortgagee in possession, or successor in title to the property, for accountability for any security deposit required by the landlord herein under, or unless said sums have actually been received by said mortgagee as security for the tenant’s performance of this Leaselease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositSECURITY DEPOSIT SHALL NOT BE DEEMED OR CONSTRUED AS ADVANCE PAYMENT OR RENT FOR ANY MONTH OF THE LEASE TERM.

Security Deposit. Tenant has deposited with Landlord the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall be held by Landlord as As security for the faithful performance by Tenant throughout the Lease Term, and any extensions or renewals thereof, of all the terms, covenants terms and conditions of this Lease to be kept and performed by Tenant during on the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other itemsbe performed, covenants and conditions Tenant shall deposit with Landlord the sum set forth in Section 4 of Exhibit "J" above upon the execution of this Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient Such amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall will be returned in fullto Tenant, without interest, to Tenant within thirty (30) days after the day set for the expiration of the Expiration Date Lease Term, or earlier termination any extension or renewal thereof, provided Tenant has fully and faithfully observed and performed all of the Term terms, covenants, agreements, warranties and conditions hereof on its part to be observed and performed. Landlord will have the right, at any time, to apply all or any part of said deposit toward the cure of any default of Tenant, the repair of any damage to the Demised Premises or otherwise caused by Tenant, or the amount of any Rent owing under this Lease. Tenant shall have no right to direct the No application of the security deposit should be construed to limit Landlord's right under applicable law to recover additional sums from Tenant for damages to the Demised Premises. If all or any part of the Security Deposit. said security deposit is so applied by Landlord, then Tenant shall immediately pay to Landlord may deliver the funds deposited hereunder by Tenant an amount sufficient to return said security deposit to the purchaser balance on deposit with Landlord prior to said application. In no event will Tenant be entitled to apply the security deposit to any Rent due hereunder. In the event of an act of bankruptcy by or insolvency of Tenant, or the appointment of a receiver for Tenant or a general assignment for the benefit of Tenant's creditors, then the security deposit will be deemed immediately assigned to Landlord. The right to retain the security deposit will be in addition and not alternative to Landlord's other remedies under this Lease or as may be provided by law and will not be affected by summary proceedings or other proceedings to recover possession of the Demised Premises. In the event of a sale or transfer of Landlord's interest in the building and/or Demised Premises or the Leased Premises in Building or a lease by Landlord of the event that such interest is soldBuilding, Landlord will have the right to transfer the within described security deposit to the purchaser or lessee, as the case may be, and thereupon Landlord shall will be discharged from any further relieved of all liability with respect to Tenant for the return of such security deposit. Tenant shall look solely to the new owner or lessee for the return of said security deposit. The security deposit may not be mortgaged, assigned or encumbered by Tenant. Landlord is not required to keep the security deposit separate from its general accounts.

Security Deposit. Tenant has deposited with shall pay to Landlord the sum specified in Section 1(a)(12). Said deposit shall constitute advance rental and shall Thirty Six Thousand Four Hundred Dollars ($36,400.00) to be held as collateral security for the payment of Base Rent, Additional Rent and any other sums payable by Landlord as security Tenant under this Lease, and for the faithful performance by Tenant of all other covenants, conditions and agreements of this Lease; the terms, covenants and conditions unused portion of the Security Deposit to be repaid to Tenant after the termination of this Lease to or any renewal thereof within sixty (60) days of such termination, provided Tenant shall have made all such payments of this Lease. The Security Deposit shall not be kept and performed mortgaged, assigned, transferred or encumbered by Tenant during without the Lease Termwritten 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, at If any time during of the Lease Term, any payment of Minimum Annual Rent or Additional Rent rents herein reserved or any other sum payable by Tenant to Landlord shall be overdue and unpaid, or should Landlord make payments on behalf of Tenant, or should Tenant fail to perform any of the terms of this Lease, then Landlord may, at its option, appropriate option and apply any portion of said security deposit without prejudice to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (as described in Section 20 hereof). In the event of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its optionremedy that Landlord may have on account thereof, may appropriate and apply the entire security deposit, Security Deposit or so much thereof as may be necessary, necessary to compensate Landlord for toward the payment of Base Rent, Additional Rent or any other sums due Landlord pursuant to this Lease, or loss or damage sustained or suffered by Landlord due to such breach by on the part of Tenant; and Tenant upon demand shall forthwith restore the Security Deposit to the original sum deposited. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, Tenant's failure to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, restore said deficiency within ten (10) business days of the after receiving Landlord’s written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so notice thereof shall constitute a breach Default hereunder. In the event of bankruptcy or other creditor-debtor proceedings against Tenant, the Lease. Should Tenant comply with all Security Deposit shall be deemed to be applied first to the payment of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls dueother charges due Landlord for all periods prior to the filing of such proceedings. In the event of a sale or transfer of Landlord's estate or interest in the Land and Building, then and Landlord’s successor-in-interest assumes Landlord’s obligations under this Lease, Landlord shall have the security deposit right to transfer the Security Deposit to the vendee or transferee, and Landlord shall be returned in full, without interest, to considered released by Tenant within thirty (30) days of from all liability for the Expiration Date or earlier termination of the Term of this Lease. Tenant shall have no right to direct the application of any part return of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant shall look solely to the transferee for the return of the Security Deposit, and it is agreed that all of the foregoing shall apply to every transfer or assignment made of the Security Deposit to a new transferee. No Mortgagee or purchaser of Landlordany or all of the Building at any foreclosure proceeding brought under the provisions of any Mortgage shall (regardless of whether the Lease is at the time in question subordinated to the lien of any Mortgage) be liable to the Tenant or any other person for any or all of such sum (or any other or additional security deposit or other payment made by the Tenant under the provisions of this Lease), unless the Landlord has actually delivered it in cash to such Mortgagee or purchaser, as the case may be. In the event of any rightful and permitted assignment of Tenant's interest in this Lease, the building and/or Security Deposit shall be deemed to be held by Landlord as a deposit made by the Leased Premises in the event that such interest is soldassignee, and thereupon Landlord shall be discharged from any have no further liability to the assignor with respect to such security depositthe return of the Security Deposit. No right or remedy available to Landlord or Tenant as provided in this Section shall preclude or extinguish any other right or remedy to which Landlord or Tenant may be entitled.

Security Deposit. (1) Tenant shall pay to Landlord upon execution of this Lease a Security Deposit in the amount of $372,227.00 for the faithful performance of all terms, covenants, and conditions of this Lease. Tenant agrees that Landlord may apply said Security Deposit to remedy any failure by Tenant to repair or maintain the Premises or to perform any other terms, covenants, and conditions contained herein. If Tenant has deposited kept and performed all terms, covenants, and conditions of this Lease during the term hereof and the Security Deposit has not been applied to Rent as provided below in this Paragraph, Landlord will on the termination hereof, promptly return said sum to Tenant or the last permitted assignee of Tenant's interest hereunder at the expiration of the Lease term. Should Landlord use any portion of said sum to cure any default by Tenant hereunder, Tenant shall forthwith replenish said sum to such original amount. Landlord shall not be required to keep the Security Deposit separate from its general funds. Tenant shall be entitled to interest on any such deposit in an amount equal to one-half of the interest accruing thereon from time to time. Landlord shall deposit the Security Deposit in a money market account with such depository as Landlord and Tenant may mutually agree upon from time to time. Tenant's share of interest on the sum specified Security Deposit shall accrue and be added to the Security Deposit, and shall be disbursed from time to time at the time and in Section 1(a)(12the manner the Security Deposit is disbursed in accordance with the terms of this Paragraph. Landlord's share of such interest shall be paid to Landlord from time to time as Landlord may direct and shall be retained by Landlord (not as security, but for its own account) in consideration for the execution of this Lease and the administration of the account in which the Security Deposit is deposited. Upon the occurrence of any events of default described in Paragraph 21 of this Lease (subject to any applicable notice, grace and cure periods), the Security Deposit shall become due and payable to Landlord for application of the proceeds thereof against Tenant's obligations hereunder in such manner as Landlord may direct. (2) Subject to other terms and conditions contained in this Lease, if the Building is conveyed by Landlord voluntarily or involuntarily, said Security Deposit shall be turned over to (or credited to the account of) the Landlord's grantee or successor and, if so, Tenant hereby releases Landlord from any and all liability with respect to said deposit and its application or return. Said deposit Should Landlord fail or refuse to so transfer or credit any voluntary or involuntary transferee of the Property with the Security Deposit (or any portion of the Security Deposit then held by Landlord), Tenant shall constitute advance rental nonetheless be entitled to a credit against Rent accruing from time to time hereunder (in the amount of any such undisbursed portion of the Security Deposit so held by Landlord) at the time and in the manner the Security Deposit is required to be applied toward payment of Rent under this Paragraph, until such Security Deposit is so applied in full. (3) A portion of the Security Deposit in the amount of $279,170.00 (the "Principal Deposit") shall be held by Landlord as security for hereinabove provided until such time as Tenant has established to the faithful performance reasonable satisfaction of Landlord that Tenant has (i) actually received $10,000,000.00 or more in cash from the issuance and sale of stock in Tenant as a result of one or more public offerings in a recognized stock exchange, or through the private placement and sale of stock in Tenant, and (ii) taking into account receipt of such $10,000,000.00 in cash, Tenant has a net worth of not less than $10,000,000.00 according to generally accepted accounting principles consistently applied. At such time as Tenant has satisfied each of the foregoing conditions (but not otherwise), Landlord shall thereafter apply the Principal Deposit against Rent and other charges due and payable under this Lease at the time the same become due and payable hereunder. At such time as the Principal Deposit has been fully applied against Rent or other obligations of Tenant hereunder, Tenant shall resume payment of Rent and such other charges at the time and in the manner the same become due and payable as contemplated by Tenant of all the terms, covenants terms and conditions of this Lease to be kept and performed by Tenant during the Lease Term. If, at any time during the Lease Term, any payment of Minimum Annual Rent or Additional Rent herein reserved shall be overdue and unpaid, the Landlord may, at its option, appropriate and apply any Lease. (4) The remaining portion of said security deposit to the payment of any such overdue rent or other sum. Landlord shall have the unrestricted right (but not the obligation) to apply any part of the Security Deposit to cure any Default (other than the Principal Deposit) in the amount of $93,057.00 (the "Additional Deposit") shall be held by Landlord as described in Section 20 hereof). In hereinabove provided until the event third anniversary of the failure of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then LandlordCommencement Date, at its option, may appropriate and which time Landlord shall apply the entire security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated Additional Deposit against Rent and applied by Landlord for the payment of overdue rent, to cure any default, or other sums charges due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of the written demand of Landlord, a sufficient amount in cash to restore the security deposit to the original sum. Tenant's failure to do so shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of under the Lease at the time the same become due and promptly pay all Minimum Annual Rent payable hereunder so long as no event of default has occurred and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term of is continuing under this Lease. Tenant shall have no right to direct the application of any part of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser of Landlord's interest in the building and/or the Leased Premises In addition, in the event that such interest is soldthe conditions described in the foregoing subparagraphs 33(c)(i) and (ii) are satisfied as a result of the issuance and sale of stock in Tenant in connection with one or more initial public offerings in a recognized stock exchange (but not from the private sale of stock pursuant to a private placement memorandum, or otherwise) on or before the third anniversary of the Commencement Date, Landlord shall thereafter apply the Additional Deposit against Rent and other charges due and payable under this Lease at the time the same become due and payable hereunder. If, and thereupon only if, at the time Landlord is required under this subparagraph to apply the Additional Deposit against Rent or other Tenant obligations Landlord is at the same time then required to apply the Principal Deposit against such obligations (or vice versa, as the case may be), Landlord is nonetheless authorized and directed to hold the Additional Deposit and apply the same against Rent and other obligations at such time as the Principal Deposit has been fully applied thereto. At such time as the Additional Deposit has been fully applied against Rent or other obligations of Tenant hereunder, Tenant shall be discharged from any further liability with respect to resume payment of Rent and such security depositother charges at the time and in the manner the same become due and payable as contemplated by the terms and conditions of this Lease.

Security Deposit. 5.1 Upon the execution hereof, and prior to the commencement of the lease term under Article II hereof, Tenant has deposited shall pay to and deposit with Landlord the sum specified in Section 1(a)(12of Four Thousand Seven Hundred Twenty-Five Dollars ($4,725). Said deposit shall constitute advance rental and shall be held by Landlord , as security for the full and faithful performance by Tenant of all the termsterms of this Lease required to be performed by Tenant. Landlord may use, covenants apply, or retain the whole or any part of the money deposited as security hereunder to the extent required for the payment of any rent and additional rent or other sum(s) as to which Tenant is in default or for any sum(s) which Landlord may expend or may be required to expend by reason of Tenant's default in respect of any of the conditions of this Lease to be kept and performed by Tenant during the Lease Term. IfLease, at any time during the Lease Termincluding, but not limited to, any payment damages or deficiency in reletting of Minimum Annual Rent the Leased Premises whether such damages or Additional Rent herein reserved deficiency accrued before or after summary proceedings or other reentry by Landlord. In the event of Landlord's sale or lease of the Leased Premises of which the Leased Premises forms apart, Landlord shall be overdue and unpaid, have the Landlord may, at its option, appropriate and apply any portion of right to transfer said security deposit to the payment of any such overdue rent purchaser or other sum. lessee, and Landlord shall have thereupon be released from all liability for the unrestricted right (but not the obligation) to apply any part return of the Security Deposit to cure any Default (as described in Section 20 hereof)such security deposit. In the event of such a transfer, Tenant shall look solely to said transferee for the failure return of Tenant to keep and perform any other items, covenants and conditions of the Lease to be kept and performed by Tenant, then Landlord, at its option, may appropriate and apply the entire said security deposit, or so much thereof as may be necessary, to compensate Landlord for loss or damage sustained or suffered by Landlord due to such breach by Tenant. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent, to cure any default, or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall remit to Landlord, within ten (10) days of not assign or encumber the money deposited as security without the prior written demand consent of Landlord, a sufficient amount in cash and Tenant agrees that neither Landlord nor its successors and assigns shall be bound by any such assignment or encumbrance. Tenant agrees that the money deposited as security hereunder will not be used to restore pay the Rent for the last month of the term hereof without the prior written consent of Landlord. Tenant shall not be entitled to any interest on the money deposited as security deposit hereunder. Subject to the original sum. Tenant's failure to do so terms of this Section, in the event that Tenant shall constitute a breach of the Lease. Should Tenant comply with all of said terms, covenants and conditions of the Lease and promptly pay all Minimum Annual Rent and Additional Rent herein provided as it falls due, then the security deposit shall be returned in full, without interest, to Tenant within thirty (30) days of the Expiration Date or earlier termination of the Term terms of this Lease. , the money deposited as security hereunder will be returned to Tenant shall have no right to direct at the application of any part expiration of the Security Deposit. Landlord may deliver the funds deposited hereunder by Tenant to the purchaser term hereof and after delivery of Landlord's interest in the building and/or possession of the Leased Premises in the event that such interest is sold, and thereupon Landlord shall be discharged from any further liability with respect to such security depositLandlord.