Common use of Security Deposit Clause in Contracts

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached hereto.

Security Deposit. The Security Deposit tenant agrees to pay the Landlord a deposit of . It is agreed between the Tenant and the Landlord that interest on the deposit shall be deposited compounded annually and be paid to the Tenant at the termination of tenancy in accordance with Landlord by Tenant contemporaneously with current statutory requirements. At the delivery by Tenant to Landlord time of the signing of this Leaseagreement, the interest rate paid on security deposits is 0%. The Security Deposit shall be held by Landlord, without liability for interest, as Landlord may deduct from the security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood deposit any amounts that the Security Deposit Landlord seems necessary to provide for: (a) repairing any damage or loss to the premises, fixtures, furniture, appliances and any other items leased pursuant to the Lease which damages may have been cause by the Tenant (any damage or residual odor left by pets; ▇▇▇▇▇ and other marks on carpets, furnishings and walls shall not be considered an advance normal wear and tear) (b) cleaning the premises and any property rented with it, (including but not limited to professional cleaning of carpet and drapery) if the Tenant gives up possession of the premises in such condition that the premises require cleaning; (c) payment of Rent rent or a measure other fees owing to the Landlord by the Tenant upon the termination of Tenant’s liability this Lease and; (d) the discharge of any other obligations or liabilities of the Tenant to the Landlord (e) recovery of lost revenue or expenditures incurred for the time that the suite is unavailable for rent while outstanding issues cause by the Tenant are being addressed (ie the property is being cleaned or damages are being repaired) The Tenant is responsible for the amount of any damages or cleaning costs in case excess of default the deposit. It is further agreed and understood that the Tenant cannot apply the security deposit against any rent owing to the Landlord during the tenancy. The Tenant agrees that any security deposit refundable to the Tenant may be paid by Tenant. the Landlord may, from time to time, without prejudice to any other remedy, use of the Security Deposit to the extent necessary to make good any arrearages of Rent tenants or to satisfy any other covenant or obligation of Tenant hereunder following all names shown by the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretotenants.

Security Deposit. The Upon the Execution Date, Tenant shall deposit with Landlord the Security Deposit shall be deposited as security for Tenant’s faithful performance of Tenant’s obligations hereunder. If Tenant fails to timely pay rent or other charges due hereunder, or otherwise defaults with Landlord by Tenant contemporaneously with the delivery by Tenant respect to Landlord any provisions of this Lease. The Lease beyond applicable notice and cure periods hereunder, Landlord may use, apply, or retain all or any portion of the Security Deposit for the payment of any rent or other charge in default or for the payment of any 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 shall be held have no obligation to apply the Security Deposit against any amount due or owing from Tenant under this Lease or against any Advance made by Landlord, without liability for interest, as security for nor shall the performance by Tenant rights and remedies of Tenant’s covenants and obligations Landlord under this Lease, it being expressly understood Lease be affected in any manner by the fact that Landlord holds the Security Deposit shall not be considered an advance payment of Rent Deposit. If, however, Landlord so uses or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to applies all or any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application portion of the Security Deposit, Tenant shall pay to within ten (10) business days after written demand therefor, deposit with Landlord on demand the an amount so applied in order sufficient to restore the Security Deposit to the full amount stated above, and Tenant’s failure to do so shall constitute a default under this Lease. Landlord shall not be required to keep the security deposit separate from its general accounts or to pay interest thereon, unless otherwise required by applicable law. If Tenant performs all of Tenant’s obligations hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, or so much thereof after application thereof by Landlord in accordance with this Section 3.7, as has not been applied by Landlord, shall have no further liability be returned, in cash, without payment of interest or other increment for its use, to Tenant at the return of such Security Deposit. Upon application of all or any part expiration of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to timeLease Term. No application of the Security Deposit by trust relationship is created herein between Landlord will be deemed to have cured Tenant’s default. and Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoDeposit.

Security Deposit. The Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the Security Deposit Deposit, which shall be deposited with held by Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord secure Tenant’s performance of its obligations under this Lease. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall is not be considered an advance payment of Rent or a measure or limit of TenantLandlord’s liability for damages in case upon an Event of default by TenantDefault (as defined herein). Landlord may, from time to time, time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to the extent necessary perform any obligation Tenant fails to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodsperform 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 the amount required its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to timethe foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Complex during Premises and the term of transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord thereafter shall have no further liability for the return of such the Security Deposit. Upon application The rights and obligations of all or Landlord and Tenant under this Section 6 are subject to any part of other requirements and conditions imposed by Laws applicable to the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached hereto.

Security Deposit. The Security Deposit shall be 12.1 Tenant has deposited with Landlord the sum set forth in Section 2.6 the (“Security Deposit”), which sum shall be held by Landlord as security for the faithful performance by Tenant contemporaneously with of all of the delivery terms, covenants and conditions of this Lease to be kept and performed by Tenant to Landlord during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. The If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit shall be held by Landlord, without liability for interest, as security for the performance payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by Tenant reason of Tenant’s covenants and obligations under this Lease, it being expressly understood that default. If any portion of the Security Deposit shall not be considered is so used or applied, then Tenant shall, within ten (10) business days following demand therefor, deposit cash with Landlord in an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order 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. The provisions of this Article 12 shall survive the expiration or earlier termination of this Lease. TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, AS THE SAME MAY BE AMENDED FROM TIME TO TIME. 12.2 In the event of 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 all periods prior to the tiling of such proceedings. 12.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 12.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the 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. 12.5 [Intentionally omitted] 12.6 If the Security Deposit shall be in cash. Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 12.7 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. 12.7.1 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 the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount required hereunderof 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 timetime 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 legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. 12.7.2 If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. 12.7.3 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 (as defined below) exists; (ii) as of the date forty-five (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) six (6) 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; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. 12.7.4 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. 12.7.5 If Landlord transfers its interest in the Complex during Premises, then Tenant shall at Tenant’s expense, within five (5) Business Days after receiving a request from Landlord, deliver (and, if the term of this Lease, issuer requires. Landlord may assign the Security Deposit shall consent to) an amendment to the transferee and upon assumption by such transferee of liability for L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security Depositchanges while L/C Security is in force, then reliant shall deliver (and, if the issuer requires, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit consent to) a corresponding amendment to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoL/C Security.

Security Deposit. The Security Deposit shall be deposited with delivered to Landlord upon the execution of this Lease by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit and shall be held by Landlord, Landlord without liability for interest, interest (except as required by law) and as security for the performance by Tenant of Tenant’s covenants and 's obligations under this Lease, it being expressly understood that the . The Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s 's liability for damages in case of default by Tenantdamages. Landlord may, from time to time, without prejudice to any other remedy, use all or a portion of the Security Deposit to the extent necessary to make good any arrearages arrearage of Rent Rent, to repair damages to the Premises, to clean the Premises upon termination of this Lease or otherwise to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodshereunder. 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 amount required hereundertermination of this Lease, after Tenant surrenders the Premises to Landlord in accordance with this Lease and all amounts due Landlord from time Tenant are finally determined and paid by Tenant or through application of the Security Deposit, the balance of the Security Deposit remaining after any such application shall be returned to timeTenant. If Landlord transfers its interest in the Complex Premises during the term of this LeaseLease Term, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord thereafter shall have no further liability for the return of such Security Deposit. Upon application of all Tenant agrees to look solely to such transferee or any part assignee for the return of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application Landlord and its successors and assigns shall not be bound by any actual or attempted assignment or encumbrance of the Security Deposit by Tenant, provided, however, if Tenant's interest in this Lease has been assigned, Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Lawsshall, now or hereinafter in force, which restrict the amount or types of claim provided that Landlord has been furnished with a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days fully executed copy of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained hereinagreement assigning such Security Deposit, Tenant shall provide return the Security Deposit in the form of a Letter of Credit to such assignee in accordance with Exhibit “M” attached heretothe terms and conditions hereof. If Landlord return the Security Deposit to Tenant's assignee as aforesaid, Landlord will have no further obligation to any party with respect thereto. Landlord shall not be required to keep the Security Deposit separate from its other accounts.

Security Deposit. The Security Deposit shall be Tenant has deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, set forth in the Basic Provisions as security for the full and faithful performance of every provision of this Lease to be performed by Tenant. If Tenant fails to pay Base Rent, Additional Rent or other charges due hereunder or otherwise defaults with respect to any provision of the Lease, Landlord may use, apply or retain all or any portion of the Security Deposit for the payment of any Base Rent, Additional Rent or other charge in default or for the payment of any other sum to which Landlord may become entitled by reason of Tenant’s covenants default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby. Tenant acknowledges and obligations under this Lease, it being expressly understood agrees that the Security Deposit shall is not be considered an advance payment of Rent or Rent, nor a measure of Tenantor limit on the amount of Landlord’s liability for damages in case the event of any default by Tenant. If Landlord may, from time to time, without prejudice to uses or applies all or any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application portion of the Security Deposit, Tenant shall pay to within ten (10) days after written demand, deposit cash with Landlord on demand the in an amount so applied in order sufficient to restore the Security Deposit to the full amount required hereunder, from time stated above and Tenant’s failure to time. If Landlord transfers its interest in the Complex during the term do so shall be a material breach of this Lease, . Landlord may assign shall not be required to keep the Security Deposit separate from its general accounts or to the transferee and upon assumption by such transferee of liability for pay interest on the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application The balance of the Security Deposit after deducting any amounts applied by Landlord will as provided above, shall be deemed returned, without payment of interest for its use, to have cured Tenant (or at Landlord’s option, to the last assignee, if any, of Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successorsinterest hereunder) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender later of (i) the last day of the Premises to Term, (ii) the date Tenant vacated the Premises, or (iii) the date Tenant has fulfilled all its obligations hereunder. No trust relationship is created between Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, and Tenant shall provide regarding the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoDeposit.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord Upon Tenant’s execution of this Lease. The , Tenant shall deposit with Landlord, cash in the amount of the Security Deposit shall be held by Landlordset forth in the Principal Lease Provisions, without liability for interest, as security for to secure the performance by Tenant of Tenant’s covenants and its obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of including without limitation Tenant’s liability for obligations (i) to pay Basic Monthly Rent and Additional Rent (as defined below), (ii) to repair damages to the Premises and/or the Project caused by Tenant or Tenant’s agents, employees, contractors, licensees, and invitees (collectively, “Tenant’s Invitees”), (iii) to surrender the Premises in case the condition required by Paragraph 24, below, and (iv) to remedy any other Event of default Default by TenantTenant in the performance of any of its obligations under this Lease. If Tenant commits an Event of Default under this Lease, Landlord may, from time to time, without prejudice to any other remedyat its election, use the Security Deposit to the extent necessary cure such Event of Default, and to make good any arrearages compensate Landlord for all damage suffered by Landlord which are directly attributable to such Event of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodsDefault, including, without limitation, reasonable attorneys’ fees and costs incurred by Landlord. Following any such application of the Security DepositUpon demand by Landlord, Tenant shall promptly pay to Landlord on demand the amount so applied in order a sum equal to restore the Security Deposit to the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application portion of the Security Deposit so used by Landlord will be deemed Landlord, in order to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide maintain the Security Deposit in the form amount set forth in the Principal Lease Provisions. Following the Expiration Date, and within the earlier of a Letter 30 days or the time frame otherwise required by applicable law, Landlord shall deliver to Tenant, at Tenant’s last known address, any portion of Credit the Security Deposit not used by Landlord, as provided in accordance this Paragraph. Landlord may commingle the Security Deposit with Exhibit “M” attached heretoLandlord’s other funds and Landlord will not pay interest on such Security Deposit to Tenant.

Security Deposit. The If so specified in the Basic Lease Information, Tenant shall deposit with Landlord the Security Deposit shall be deposited with Landlord by Tenant contemporaneously with upon the delivery by Tenant to Landlord execution of this LeaseLease by Tenant. The Security Deposit shall be held by Landlord, without liability for interest, Landlord as security for the performance by Tenant of Tenant’s covenants and all its obligations under this Lease. If Tenant fails to pay any Rent due hereunder, it being expressly understood that or otherwise commits a default (after applicable notice and cure periods) with respect to any provision of this Lease, Landlord may use, apply or retain all or any portion of the Security Deposit for the payment of any such Rent or for the payment of any other amounts expended or incurred by Landlord by reason of Tenant's default, or to compensate Landlord for any loss or damage which Landlord may incur thereby (subject to the provisions of California Civil Code Section 1950.7(c) and any similar or 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 of its rights hereunder shall not be considered an advance payment of Rent constitute a waiver of, or a measure of Tenant’s relieve Tenant from any liability for damages in case of default by Tenantfor, any default. If Landlord may, from time to time, without prejudice to so uses or applies all or any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application portion of the Security Deposit, Tenant shall pay to shall, within ten (10) days after demand by Landlord, deposit cash with Landlord on demand the in an amount so applied in order sufficient to restore the Security Deposit to the amount required its full amount. If Tenant performs all of Tenant's obligations hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord or so much thereof as has not theretofore been applied by Landlord, shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Depositbe returned, without interest, to Tenant must upon demand restore the Security Deposit (or, at Landlord's option, to the amount required hereunderlast assignee, from time to time. No application if any, of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors's interest under this Lease) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days after the later of (i) the surrender date of expiration or earlier termination of this Lease, or (ii) vacation of the Premises to Landlord subject to any deductions made by Landlord pursuant to Tenant if the terms of Premises has been left in the condition specified by this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide Landlord's receipt and retention of the Security Deposit 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. Subject to Section 22.1, upon termination of the original Landlord's (or any successor owner's) interest in the form of a Letter of Credit in accordance Premises, the original Landlord (or such successor) shall be released from further liability with Exhibit “M” attached heretorespect to the Security Deposit upon the original Landlord's (or such successor's) compliance with California Civil Code Section 1950.7(d), or successor statute.

Security Deposit. The Tenant shall deposit the Security Deposit with Landlord on the date this Lease is executed by Tenant, which, in the manner described in and subject to the provisions of ,Section (M) of the Basic Lease Terms, shall be deposited with held by Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of secure Tenant’s obligations under this Lease. The Security Deposit shall be held by is not an advance rental deposit or a measure of Landlord, without liability ’s damages for interest, as security for an Event of Default (defined below). Landlord may use any portion of the performance by Tenant of Security Deposit to satisfy Tenant’s covenants and unperformed obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent to reimburse Landlord for performing any such obligations or a measure of to compensate Landlord for its damages arising from Tenant’s liability for damages in case of default by Tenant. Landlord may, from time failure to timeperform its obligations, without prejudice to any of Landlord’s other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodsremedies. Following any such application of the Security DepositIf so used, Tenant shall shall, upon request, pay to Landlord on demand the an amount so applied in order to that will restore the Security Deposit to its original amount. The Security Deposit shall be Landlord’s property. The Security Deposit shall be maintained by Landlord in a segregated, non-interest bearing account. The unused portion of the amount required hereunderSecurity Deposit will be returned to Tenant within forty-five (45) days following the Expiration Date (or the date on which Tenant surrenders the Premises, from time to time. If Landlord transfers its interest in the Complex during the term if later) or sooner termination of this Lease, provided that Tenant has vacated the Premises. In the event of a sale or other transfer of the Building, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee shall be relieved of all liability for the Security Deposit, Deposit provided that Landlord shall have no further liability for transfers the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit same to the amount required hereunderpurchaser or transferee, from time to time. No application of and provided that the Security Deposit by Landlord will purchaser or transferee assumes Landlord’s obligations under this Lease in writing (which may be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretogeneral assignment).

Security Deposit. The Security Deposit shall be Tenant has deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord sum of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, Ten Thousand Six Hundred Fifty Dollars US ($10,650.00) as security for the full, timely and faithful performance by Tenant of Tenant’s its covenants and obligations under this Lease, it being expressly understood that the Security Deposit hereunder. Such security deposit shall not bear interest. If Tenant defaults in the performance of any of the covenants and obligations to be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default performed by Tenant. it, Landlord may, may from time to time, time without prejudice to any other remedy, use the Security Deposit such security deposit to the extent necessary to make good any arrearages of Rent in rent or any sum as to satisfy which Tenant is in default and any other covenant damage, injury, expense or obligation liability caused to Landlord by such default. This would include any damages or deficiency in the reletting of Tenant hereunder following the expiration Premises, whether such damages or deficiency may accrue before or after termination of any applicable cure periodsthis Lease. Following any such application of the Security Depositsecurity deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit security deposit to the amount required its original amount. If Tenant is not then in default hereunder, from time Landlord shall return any remaining balance of security deposit to timeTenant upon termination of this Lease and after delivery of possession of the Premises to Landlord in accordance with this Lease. If Landlord transfers assigns its interest in the Complex Premises during the term of this LeaseLease Term, Landlord may assign the Security Deposit security deposit to the transferee assignee and upon assumption by such transferee of liability for the Security Deposit, thereafter Landlord shall have no further liability for the return of such Security Depositsecurity deposit and Tenant agrees to look solely to the new Landlord for the return of such security deposit. Upon application of all This provision shall apply to every transfer or any part assignment made of the Security Deposit, Tenant must upon demand restore the Security Deposit security deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s defaulta new Landlord. Tenant waives all provisions of Laws, now agrees that it will not assign or hereinafter in force, which restrict encumber or attempt to assign or encumber the amount monies deposited as security and that Landlord and its successors and assignees shall not be bound by any such actual or types of claim that a landlord may make upon a security deposit attempted assignment or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoencumbrance.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant due and payable to Landlord within ten (10) business days after the execution of this Lease (but in no event later than the commencement of any Early Occupancy), and shall be held by Landlord as security for the performance of Tenant’s obligations. The Security Deposit is not an advance rental deposit, or a measure of Landlord’s damages in an Event of Default (as hereinafter defined). Upon any Event of Default, Landlord may use all, or part of, the Security Deposit to pay delinquent payments due under this Lease, and the cost of any damage, injury, expense or liability caused by such Event of Default, without prejudice to any other remedy provided herein or provided by law. Tenant shall pay Landlord within ten (10) business days of Landlord’s demand the amount that will restore the Security Deposit to its original amount. ▇▇▇▇▇▇▇▇’s obligation respecting the Security Deposit is that of a debtor, not a trustee. The Security Deposit shall be held by the property of Landlord, without liability for interest, as security for the performance by Tenant and any remaining amount of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall be paid to Tenant when Tenant’s obligations under this Lease have been fulfilled. Landlord shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time required to time, without prejudice to any other remedy, use keep the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodsseparate from its general accounts, and no interest shall accrue thereon. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, be released from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling Security Deposit upon transfer of this Lease and the Premises to a person or return of security depositsentity assuming Landlord’s obligations. The Security Deposit will under the Lease shall be released to Tenant within thirty (30) days USD$150,000.00, in the form of the surrender an unconditional, irrevocable letter of the Premises credit from a bank reasonably acceptable to Landlord subject and in compliance with the material terms shown in Exhibit G attached hereto (“Letter of Credit”). The Letter of Credit shall either provide that it does not expire until 60 days following the Expiration Date or, if it is for less than the full Lease Term, shall be renewed by Tenant at least 60 days prior to its expiration during the Lease Term. The Letter of Credit shall provide that it may be drawn down upon by Landlord at any deductions made time Landlord delivers its site draft to the bank. If Landlord sells or conveys the Premises, Tenant shall, at ▇▇▇▇▇▇▇▇’s request, cooperate in having the Letter of Credit transferred to the purchaser and Landlord agrees to notify Tenant in the event of such transfer. If the Letter of Credit is ever drawn upon by Landlord pursuant to the terms of this the Lease, Tenant shall within ten (10) business days thereafter cause the Letter of Credit to be restored to the then existing amount at the time immediately prior to the draw down. Notwithstanding anything contained herein to the contrary contained hereincontrary, Tenant shall provide the Security Deposit in the form of a event Tenant fails to renew the Letter of Credit in accordance with Exhibit “M” attached heretothe terms and conditions as set forth in this Paragraph 7, or in the event that Tenant shall commence any proceeding for relief, as defined in Paragraph 24(b) of the Lease, an immediate Event of Default shall be deemed to have occurred, without the requirement of notice or opportunity to cure, in which case Landlord may immediately draw down on the Letter of Credit.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with If LICENSEE defaults under any of the delivery by Tenant to Landlord terms or conditions of this Lease. The Agreement more than two times during any twelve consecutive months during the term of this Agreement, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit shall Deposit"), which will be held by Landlord, LICENSOR without liability for interest, interest as security for the full and faithful performance by Tenant LICENSEE of Tenant’s LICENSEE's covenants and obligations under this LeaseAgreement, it being expressly understood that the Security Deposit shall such deposit is not be considered an advance payment of Rent license fees or a measure of Tenant’s liability for LICENSOR's damages in case if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by Tenant. Landlord LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedyremedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of Rent payment owed by LICENSEE to LICENSOR or any amount as to satisfy which LICENSEE is in default or for any other covenant damage, injury, expense, or obligation liability caused to LICENSOR by such event of Tenant hereunder following the expiration default, regardless whether such damages or deficiency accrue before or after termination of any applicable cure periodsthis Agreement. Following any such application of the Security Deposit, Tenant shall LICENSEE agrees to pay to Landlord LICENSOR on demand the amount so applied in order to restore the Security Deposit to its original amount and LICENSEE's failure to do so within ten days of the amount required hereunderdate of demand will be, from time to timeat LICENSOR's election, a material default under this Agreement. If Landlord transfers its interest LICENSEE is not in the Complex during the term default of this LeaseAgreement upon the termination of this Agreement, Landlord may assign LICENSOR agrees to return any remaining balance of such Security Deposit to LICENSEE within thirty days of the date of the termination of this Agreement. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have will in no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, event release LICENSEE from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter being in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to default under the terms of this LeaseAgreement. Notwithstanding anything LICENSOR will not be required to the contrary contained herein, Tenant shall provide the keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign or encumber, or attempt to assign or encumber, the monies deposited under this Agreement as security, and that LICENSOR and its successors and assigns will not be bound by any such actual or attempted assignment or encumbrance. If LICENSEE cures the event of default that triggered the obligation to put up the $25,000 Security Deposit and is not then in default, LICENSOR agrees to refund the form $25,000 amount put as a Security Deposit within ten days of a Letter the date of Credit in accordance with Exhibit “M” attached heretoLICENSEE's request.

Security Deposit. The (a) Tenant shall deposit with Landlord upon ▇▇▇▇▇▇'s execution hereof the Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord set forth in Paragraph 1.6 of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, lease as security for the Tenant's faithful performance by Tenant of Tenant’s covenants and 's obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of lease. If Tenant fails to pay Base Rent or a measure of Tenant’s liability for damages in case of Additional Rent or otherwise defaults under this lease, and such failure or default by Tenant. Tenant continues after the giving of all required notices by Landlord mayand the expiration of all applicable cure periods, from time to timethen and in any such event, without prejudice to any other remedy, Landlord may use the Security Deposit to for the extent necessary to make good payment of any arrearages of Rent amount due Landlord or to satisfy reimburse or compensate Landlord for any other covenant liability, cost, expense, loss or obligation of Tenant hereunder following the expiration of any applicable cure periodsdamage (including reasonable attorney's fees) which Landlord may suffer or incur by reason thereof. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand pay Landlord the amount so used or applied in order so as to restore the Security Deposit to the amount required hereunder, from time to time. If Landlord transfers its interest set forth in the Complex during the term Paragraph 1.6 of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, lease. Landlord shall have no further liability for the return of such Security Deposit. Upon application of not be required to keep all or any part of the Security DepositDeposit in an interest bearing account. Landlord shall, at the expiration or earlier termination of the Term and after ▇▇▇▇▇▇ has vacated the demised premises, return to Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application that portion of the Security Deposit not used or applied by Landlord. No part of the Security Deposit shall be considered to be prepayment for any monies to be paid by Tenant under this lease. (b) Tenant shall have the right to deliver to Landlord an unconditional, irrevocable letter of credit in substitution for the cash Security Deposit required in Paragraph 5(a) above, subject to the following terms and condition. Such letter of credit shall be: (i) in the form attached to 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 deemed automatically renewed on an annual basis unless the issuer delivers at least 30 days prior written notice of cancellation to have cured Landlord and Tenant’s default, 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 waives all provisions shall either: (A) cause such letter of Laws, now credit to be renewed (or hereinafter 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 force, which restrict the amount of the Security Deposit. Notwithstanding anything in this lease to the contrary, any cure or types grace period set forth in Paragraph 13.1 of claim 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 a commercial bank that has a landlord may make upon a security deposit credit rating with respect to certificates of deposit, short term deposits or imposes upon a landlord 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 successorsreasonable 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 obligation other materially adverse way, then Tenant shall 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 obtain such substitute letter of credit within 10 days following its receipt of Landlord's demand therefor (and Tenant's failure to do so shall, notwithstanding anything in this lease to the contrary, constitute a 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 letter of credit is insolvent or placed into receivership or conservatorship by the Federal Deposit Insurance Corporation or Resolution Trust Corporation, or any successor or similar entity, or if a trustee, receiver or liquidator is appointed for the issuer, then Tenant shall 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 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 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 whole or in part, without notice to Tenant and to hold the proceeds thereof as the Security Deposit. Landlord shall have the 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 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. Any failure or refusal of the issuer to honor the letter of credit shall be at Tenant's sole risk and shall not relieve Tenant of its obligations hereunder with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoDeposit.

Security Deposit. The To the extent that the unapplied amount of the security deposit held by Existing Landlord under the Existing Lease (such amount, the “Original Security Deposit”) is less than the amount of the Security Deposit specified in the Basic Provisions, on the Commencement Date, Tenant shall deposit with Landlord the difference between such amount of the Security Deposit and the Original Security Deposit, which, when combined with the Original Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by Tenant of Tenant’s covenants and obligations its obligation under this Lease. Tenant agrees that if Tenant defaults in its performance of this Lease, it being expressly understood that or in the Security Deposit payment of any sums owing to Landlord, or in the payment of any other sums required from Tenant under the provisions of this Lease, then Landlord may, but shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedyobligated to, use the Security Deposit Deposit, or any portion thereof, to cure such default or to compensate Landlord for any damage, including Rent that is unpaid either before or after the termination of this Lease, late charges and costs of enforcement, and any other damages suffered by Landlord before or after the termination of this Lease which Landlord is entitled to recover pursuant to the extent necessary to make good terms of this Lease, and which are sustained by Landlord resulting from Tenant's default or nonpayment. If Landlord does so apply any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application portion of the Security Deposit, Tenant shall immediately pay to Landlord on demand the amount so applied in order sufficient cash to restore the Security Deposit to the amount required hereunder, from time to timeof the then current Minimum Monthly Rent. If Landlord transfers its interest Tenant is not in default at the Complex during the term expiration or termination of this Lease, Landlord may assign shall return the unexpended portion of the Security Deposit to Tenant within sixty (60) days following expiration or termination of this Lease, without interest. Landlord's obligations with respect to the transferee Security Deposit shall be those of debtor, and upon assumption by such transferee not of liability for a trustee, and Landlord shall be entitled to commingle the Security Deposit with the general funds of Landlord. With the understanding that it is the parties’ intent that the terms of this Lease control their obligations regarding the Security Deposit, Landlord shall have no further liability for to the return of such Security Deposit. Upon application of all or any part maximum extent permitted by applicable law (it being the specific intent of the Security Depositparties that, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time extent applicable law permits Landlord to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation reserve greater rights with respect to the handling or return of security deposits. The Security Deposit will under the terms of this Lease than would otherwise be released available under applicable law, Landlord be allowed to reserve such greater rights), Tenant within thirty hereby waives (30a) days any and all terms of applicable law, including, without limitation, California Civil Code Section 1950.7, applicable to security deposits in the surrender of commercial context to the Premises to Landlord subject to any deductions made by Landlord pursuant to extent inconsistent with the terms of this Lease. Notwithstanding anything , including, without limitation, any laws that 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 (“Security Deposit Laws”), and (b) to the contrary contained hereinextent inconsistent with the terms of this Lease, Tenant shall provide any and all rights, duties and obligations either Party may now or, in the future, will have under, relating to or arising from the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoLaws.

Security Deposit. The Section 29.1 Tenant has deposited the Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, as security for the full and faithful performance of every provision of this Lease to be performed by Tenant through the Term and all renewals thereto. If an Event of Tenant’s covenants Default shall have occurred with respect to any provision of this Lease, including but not limited to the provisions relating to the payment of Fixed Rent and obligations Additional Rent, Landlord may use, apply or retain all or any part of this Security Deposit for the payment of any Fixed or Additional Rent or any other sum as to which Tenant is in default or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of such Event of Default, or to compensate Landlord for any other loss, cost or damage which Landlord may suffer by reason of such Event of Default to the extent permitted under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, shall give Tenant notice contemporaneously with such use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration application of any applicable cure periods. Following any such application portion of the Security Deposit. Tenant shall, Tenant shall pay to within ten (10) Business Days after the giving of such notice, deposit with Landlord on demand the cash (or other suitable collateral such as an additional letter of credit) in an amount so applied in order sufficient to restore the Security Deposit to the amount then required hereunder, from time pursuant to time. If Landlord transfers its interest in the Complex during the term terms of this Article 29 and Tenant’s failure to do so shall be a breach of this Lease. Landlord shall not, Landlord may assign the Security Deposit unless otherwise required by Laws, pay interest to the transferee and upon assumption by such transferee of liability for 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 Laws as a bookkeeping and administrative charge. Tenant shall have no further liability for the return of such Security Deposit. Upon application of all not assign or encumber any part of the Security Deposit, and no assignment or encumbrance by Tenant must of all of any part of the Security Deposit shall be binding upon demand restore Landlord, whether made prior to, during, or after the Term. Landlord shall not be required to exhaust its remedies against Tenant or against the Security Deposit before having recourse to any other form of security held by Landlord and recourse by Landlord to any Security Deposit shall not affect any remedies of Landlord which are provided in this Lease or which are available to Landlord in law or in equity. If Tenant shall fully and faithfully perform every covenant and provision of this Lease to be performed and observed by Tenant, the Security Deposit or any balance thereof shall be returned to Tenant reasonably promptly after the expiration or sooner termination (other than a termination pursuant to Article 17) of the Term and Tenant’s surrender to Landlord of the Premises, but in no event later than sixty (60) days after such expiration or termination. In the event the Building is sold, Landlord shall transfer the Security Deposit to the amount required hereundernew owner and Landlord shall thereupon be released by Tenant from all liability for the return of said Security Deposit; and Tenant agrees to look to the new owner solely for the return of the Security Deposit. A lease of the entire Building shall be deemed a transfer within the meaning of the foregoing sentence. Landlord shall notify or cause Tenant to be notified in the event of any transfer of the Building. Section 29.2 Landlord agrees to reduce the Security Deposit as set forth below. Landlord shall have no obligation to reduce and Tenant shall have no right to request a reduction in the Security Deposit unless all of the following conditions have been satisfied on the date of the scheduled reduction to the Security Deposit: (a) No Event of Default shall have occurred and be continuing under this Lease; and (b) there shall not have occurred any material adverse change in the financial condition of Tenant from the condition described in the financial statements submitted by Tenant to Landlord in connection with this Lease. Notwithstanding the foregoing, from time to time. No application if an Event of Default existed on the date of the scheduled reduction of the Security Deposit and Tenant subsequently cures said Event of Default without Landlord having terminated this Lease, Tenant shall then be entitled to an immediate reduction of said Security Deposit at the time of said cure by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict by the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect as to the handling or return of security deposits. The which said Security Deposit will be released to Tenant within thirty would have been reduced had such Event of Default not existed. Section 29.3 (30a) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant Subject to the terms of this Lease. Notwithstanding anything to the contrary contained hereinin Section 29.2, Tenant shall provide the Security Deposit in shall be reduced from the form original Two Hundred Ninety-Five Thousand and no/100 Dollars ($295,000.00): (i) on the first day of a Letter December 2006, the Security Deposit shall be reduced by Seventy-Two Thousand Four Hundred Forty-Six and 80/100 Dollars ($72,446.80) and such amount shall be credited towards the monthly Rent for December 2006 and January 2007; (ii) on the first day of Credit in accordance with Exhibit “M” attached heretoDecember 2007, the Security Deposit shall be reduced by Seventy-Two Thousand Four Hundred Forty-Six and 80/100 Dollars ($72,446.80) and such amount shall be credited towards the monthly Rent for December 2006 and January 2008; and (iii) on the first day of December 2008, the Security Deposit shall be reduced by Seventy-Two Thousand Four Hundred Forty-Six and 80/100 Dollars ($72,446.80) and such amount shall be credited towards the monthly Rent for December 2008 and January 2009.

Security Deposit. The Security Deposit 40.01. Tenant shall be deposited deposit with Landlord by Tenant contemporaneously with on the delivery by Tenant to Landlord signing of this Lease. The Lease the Security Deposit shall be held by Landlord, without liability for interestDeposit, as security for the faithful performance and observance by Tenant of Tenant’s covenants the terms, provisions and conditions of this Lease. Tenant agrees that in the event Tenant has defaulted in the performance of any of its obligations under this Lease, it being expressly understood that including the Security Deposit shall not be considered an advance payment of Rent any item of rental, and whether or not the transmittal of a measure of Tenant’s liability for damages in case Notice of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any is barred by applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Leaselaw, Landlord may assign use, apply or retain the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all whole or any part of the Security Deposit, to the extent required for the payment of any basic annual rent or additional rent as to which Tenant must upon demand is in default, or for any sum that Landlord may expend or may be required to expend by reason of the default (including any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord). If Landlord applies or retains any portion or all of the Security Deposit, Tenant shall forthwith restore the Security Deposit to amount so applied or retained by delivering additional cash so that, at all times, the amount required hereunder, from time to time. No application of the Security Deposit shall be the amount set forth on the Reference Page. Provided there is no uncured default, any balance of the Security Deposit held by Landlord will and not used, applied or retained by Landlord as above provided shall be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released returned to Tenant within thirty (30) days after the Expiration Date and after delivery of possession of the surrender of the Premises entire demised premises to Landlord subject to any deductions made by Landlord pursuant to in accordance with the terms of this Lease. Notwithstanding anything Tenant shall not be entitled to any interest on the contrary contained hereinSecurity Deposit. 40.02. At Landlord’s sole option, Tenant shall provide give Landlord, upon its demand, a Letter(s) of Credit (as defined and further described in this Section). After Landlord’s receipt from Tenant of the Letter(s) of Credit, if so requested by Landlord, Landlord shall return to Tenant any cash Security Deposit then held by Landlord as security under this Lease. “Letter of Credit” shall mean a clean irrevocable and unconditional standby letter of credit issued and drawn upon any commercial bank approved by Landlord having a net worth of at least One Billion U.S. Dollars and with offices for banking purposes in the continental United States of America (“Issuing Bank”). Tenant shall cause each Letter of Credit to have a term of not less than one year, be in form and content satisfactory to Landlord, be for the account of Landlord and be in the amount of the Security Deposit set forth in the form of a Reference Page. Landlord, at its sole option, may at any time require Tenant to deliver more than one (1) (as determined by Landlord in its absolute discretion) Letter of Credit from different Issuing Banks, each having a net worth of at least One Billion U.S. Dollars and each meeting the other requirements set forth in accordance with Exhibit “M” attached hereto.this Article 40 that an Issuing Bank must satisfy. Landlord, in its sole judgment, shall determine the dollar amount of each Letter of Credit, but in no event shall the combined Letters of Credit exceed the Security Deposit. Tenant shall cause the Letter(s) of Credit to provide that:

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord Within 10 banking days after execution of this LeaseSublease, Subtenant shall deposit with Sublandlord a security deposit (“Security Deposit”) in the amount of $175,840.00 (the “Deposit Amount”). The Security Deposit shall be held by Landlord, without liability for interest, Sublandlord as security for the Subtenant’s performance by Tenant of Tenant’s covenants and its obligations under this LeaseSublease and may be applied, it being expressly understood at Sublandlord’s sole discretion, against any obligation incurred by Subtenant in connection with this Sublease that is not timely paid or performed (as the Security Deposit shall not be considered an advance case may be), including the payment of Basic Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord mayand Additional Rent, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration repair of any applicable cure periodsdamage that is Subtenant’s responsibility, and all other obligations of Subtenant under this Sublease. Following any such application of If Sublandlord debits the Security Deposit, Tenant Sublandlord shall notify Subtenant of the occurrence and amount of the debit, and Subtenant shall promptly pay to Landlord on demand Sublandlord the amount so applied in order necessary to restore the Security Deposit to the amount required hereunder, from time full Deposit Amount. A. Subtenant may elect to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of provide all or any part portion of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of cash or in the form of a Letter letter of Credit credit (the “LOC”). If Subtenant elects to satisfy all or any portion of the Security Deposit with cash, Sublandlord, Sublandlord is not required to keep the Security Deposit separate from its general funds and Subtenant is not entitled to interest on the Security Deposit. B. If Subtenant elects to satisfy all or any portion of the Security Deposit with an LOC, the LOC will be an irrevocable and unconditional standby letter of credit, issued by a financial institution (other than Subtenant) satisfactory to Sublandlord in accordance its discretion, with a term of at least one year, drawable by Sublandlord upon presentation, and substantially in the form of Exhibit “M” L attached heretoto the Prime Lease (except that the references to Landlord as beneficiary and Sublandlord as applicant shall be changed to Sublandlord as beneficiary and Subtenant as applicant). Sublandlord may draw upon the LOC under the same terms and conditions as Sublandlord may apply a cash security deposit. In addition, Sublandlord may draw upon the LOC if Subtenant fails to deliver to Sublandlord no later than 30 days prior to the expiration date of the existing LOC a renewal or extension of the LOC for a term of not less than one year. Notwithstanding the foregoing, and unless a renewal or extension of the LOC has not been delivered to Sublandlord 30 days prior to the expiration date of the existing LOC, Sublandlord will give Subtenant 5 business days prior written notice before drawing upon the LOC. C. If Subtenant performs each of its obligations under this Sublease, then the Security Deposit, or any then-remaining balance thereof, shall be returned to Subtenant (or the LOC cancelled, as the case may be) within thirty (30) days after the later of (i) the expiration of the Sublease Term or termination of this Sublease, and (ii) the date on which Subtenant surrenders the Subleased Premises to Sublandlord in the condition required by this Sublease (unless Subtenant retains possession of the Subleased Premises pursuant to the Recognition Agreement (defined below), in which case clause (i) will apply).

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with As of the delivery by Tenant to Landlord parties’ execution of this Lease. The , Tenant shall deliver the Security Deposit shall be held by Landlordin the amount of $20,000 to Landlord paid over twelve months beginning September 1, without liability for interest, 2015 as $1,666.67 consistent with Section 1.01 as partial security for the performance by Tenant of Tenant’s covenants and obligations the provisions of this Lease. In the event of any Default by Tenant under this Lease, it being expressly understood that Landlord shall have the Security Deposit shall not be considered an advance payment right to apply all or any portion of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to cure the extent necessary to make good any arrearages of Rent Default and reinstate this Lease, or to satisfy any other covenant otherwise compensate Landlord for all damages sustained by Landlord resulting from or obligation in connection with such Default. In the event of Tenant hereunder following the expiration of any applicable cure periods. Following any such application of the Security DepositDeposit by Landlord, Tenant shall pay upon demand deliver to Landlord on demand the amount so applied in order sum required to restore the Security Deposit to the amount required hereunder, from time to timeset forth in Section 1.01. If Landlord transfers its interest Provided that Tenant is not in Default at the Complex during the term expiration or termination of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application remaining portion of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days after the date of the surrender of the Premises such expiration or termination. Landlord's rights with respect to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form are those of a Letter trustee. Landlord shall be entitled to commingle the Security Deposit with Landlord's general funds and shall have no obligation to pay Tenant interest on the Security Deposit. In the event of Credit a transfer of Landlord's interest in accordance this Lease during the Term hereof, provided Landlord transfers the then unapplied Security Deposit to the transferee and the transferee agrees and actually does deposit the check to a trust account held for the sole use of this provision, Landlord shall be discharged from any further liability with Exhibit “M” attached heretorespect to the Security Deposit.

Security Deposit. The Security Deposit Upon signing this Lease, Tenant shall be deposited immediately deposit with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The amount set forth in Article 1 as the “Security Deposit shall be held by Landlord, without liability for interest, Deposit” as security for the performance by Tenant of the terms of this Lease to be performed by Tenant’s covenants , and obligations under this Lease, it being expressly understood that not as prepayment of rent. Landlord may apply such portion or portions of the Security Deposit shall not be considered an advance as are reasonably necessary for the following purposes: (i) to remedy any default by Tenant in the payment of Base Monthly Rent or Additional Rent or a measure late charge or interest on defaulted rent; (ii) to repair damage to the Leased Premises caused by Tenant; (iii) to clean and repair the Leased Premises following their surrender to Landlord if not surrendered in the condition required pursuant to the provisions of Article 2; and (iv) to remedy any other default of Tenant to the extent permitted by Law including, without limitation, paying in full on Tenant’s liability behalf any sums claimed by materialmen or contractors of Tenant to be owing to them by Tenant for damages in case of default by work done or improvements made at Tenant’s request to the Leased Premises. Landlord mayIn this regard, from time Tenant hereby waives any restriction on the uses to time, without prejudice to any other remedy, use which the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application may be applied as contained in Section 1950.7(c) of the California Civil Code and/or any successor statute. In the event the Security DepositDeposit or any portion thereof is so used, Tenant shall pay to Landlord on demand the Landlord, promptly upon demand, an amount so applied in order cash sufficient to restore the Security Deposit to the amount full original sum. 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 hereunder, to segregate it from time its general accounts. Tenant shall not be entitled to timeany interest on the Security Deposit. If Landlord transfers its interest in the Complex Building during the term of this LeaseLease Term, Landlord may assign shall pay the Security Deposit to any subsequent owner in conformity with the transferee and upon assumption by such transferee provisions of liability for Section 1950.7 of the Security DepositCalifornia Civil Code and/or any successor statute, Landlord in which event the transferring landlord shall have no further be released from all liability for the return of such the Security Deposit. Upon application Tenant specifically grants to Landlord (and hereby waives the provisions of all or any part California Civil Code Section 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, 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 Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunderor any portion thereof, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoconsidered prepaid rent.

Security Deposit. The Security Deposit shall be Section 15.01. Tenant has deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, without liability for interestsum stipulated in the Basic Lease Provisions, as security for the full and faithful performance by Tenant of Tenant’s covenants and obligations under every provision of this Lease, it being expressly understood that the Security Deposit shall not Lease to be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default performed by Tenant. Landlord may, from time to time, without prejudice If Tenant defaults with respect to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages provision of Rent or to satisfy any other covenant or obligation of Tenant hereunder following this Lease (after notice and the expiration of any applicable cure periods. Following any such application of the Security Depositperiod), Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit including but not limited to the amount required hereunder, from time provisions relating to time. If Landlord transfers its interest in the Complex during the term payment of this LeaseBasic Rent and Additional Rent, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposituse, Landlord shall have no further liability for the return of such Security Deposit. Upon application of apply or retain all or any part of this security deposit for the Security Depositpayment of any Basic Rent or Additional Rent or other sum in default, Tenant must upon demand restore or for the Security Deposit payment of any other amount which Landlord may spend or become obligated to the amount required hereunderspend by reason of Tenant’s default, from time or to time. No application compensate Landlord for any other loss or damage which Landlord may suffer by reason of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. If any portion of said deposit is so used or applied, Tenant waives all provisions shall within five (5) days after written demand therefor deposit cash with Landlord in amount sufficient to restore the security deposit to its original amount and Tenant’s failure to do so shall be an Event of LawsDefault under this Lease. Landlord shall not be required to keep this security deposit separate from its funds, now or hereinafter in forceand 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, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord any balance thereof shall be returned to Tenant (or its successors) any obligation with respect or, at Landlord’s option, to the handling last assignee of Tenant’s interest hereunder) at the expiration of the Term. In the event of the insolvency of Tenant or return in the event of security deposits. The Security Deposit will be released to 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 surrender bankruptcy laws of the Premises State of New Jersey or the United States of America, then and in such event Landlord may require the Tenant to Landlord subject deposit additional security in an amount which in Landlord’s sole judgment would be sufficient to any deductions adequately assure Tenant’s performance of all of its obligations under this Lease, including all payments subsequently accruing. Failure of Tenant to deposit the security required by this Section within ten (10) days after Landlord’s written demand shall constitute a material breach of this Lease by Tenant. The security deposit is being made by Landlord pursuant means of an irrevocable “evergreen” letter of credit, which shall be in form and substance, and drawn on a bank which is a member of the 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 Commencement Date, the security deposit shall be reduced by an amount equal to two (2) months Basic Rent and a new letter of credit, in such reduced amount (but otherwise conforming to the terms provisions hereof) shall be substituted therefor. As the Basic Rent increases throughout the Term, the amount of this Lease. Notwithstanding anything the security shall be increased accordingly, so that Landlord shall at all times have a security deposit letter of credit in an amount equal to ten (10) or twelve (12) months Basic Rent, as the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretocase may be.

Security Deposit. The Upon the Execution Date, Tenant shall deposit with Landlord the Security Deposit shall be deposited as security for Tenant’s faithful performance of Tenant’s obligations hereunder. If Tenant fails to timely pay rent or other charges due hereunder, or otherwise defaults with Landlord by Tenant contemporaneously with the delivery by Tenant respect to Landlord any provisions of this Lease. The Lease beyond applicable notice and cure periods hereunder, Landlord may use, apply, or retain all or any portion of the Security Deposit for the payment of any rent or other charge in default or for the payment of any 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 shall be held have no obligation to apply the Security Deposit against any amount due or owing from Tenant under this Lease or against any Advance made by Landlord, without liability for interest, as security for nor shall the performance by Tenant rights and remedies of Tenant’s covenants and obligations Landlord under this Lease, it being expressly understood Lease be affected in any manner by the fact that Landlord holds the Security Deposit shall not be considered an advance payment of Rent Deposit. If, however, Landlord so uses or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to applies all or any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application portion of the Security Deposit, Tenant shall pay to within ten (10) days after written demand therefor, deposit with Landlord on demand the an amount so applied in order sufficient to restore the Security Deposit to the full amount stated above, and Tenant’s failure to do so shall constitute a default under this Lease. Landlord shall not be required to keep the security deposit separate from its general accounts or to pay interest thereon, unless otherwise required by applicable law. If Tenant performs all of Tenant’s obligations hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, or so much thereof after application thereof by Landlord in accordance with this Section 3.7, as has not been applied by Landlord, shall have no further liability be returned, in cash, without payment of interest or other increment for its use, to Tenant at the return of such Security Deposit. Upon application of all or any part expiration of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to timeLease Term. No application of the Security Deposit by trust relationship is created herein between Landlord will be deemed to have cured Tenant’s default. and Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoDeposit.

Security Deposit. The Security Deposit shall be deposited with Tenant hereby agrees to pay to Landlord a security deposit of eight thousand four hundred forty dollars and fifty cents ($8,440.50), which is equal to first month’s Base Rental, on the day this Lease is executed by Tenant contemporaneously with (the delivery by Tenant to Landlord “Security Deposit”). Upon the occurrence of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by Tenant any Event of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default Default by Tenant. , Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages arrears of Rent Base Rental or to satisfy Additional Rental or any other covenant payment obligation hereunder, including, but not limited to, the cost of any damage, injury, expense, or obligation liability caused by any Event of Default by Tenant hereunder following hereunder. Any remaining balance of the Security Deposit shall be returned by Landlord to Tenant within a reasonable period of time after the termination or expiration of this Lease and the satisfaction of Tenant’s obligations hereunder. The Security Deposit shall not be considered an advance payment of rental or a measure of Landlord’s damages in case of default by Tenant. Tenant shall not be entitled to receive and shall not receive any applicable cure periodsinterest on the Security Deposit, and Landlord may commingle the same with other monies of Landlord. Following In the event Landlord applies the Security Deposit or any portion thereof to the payment of any sum described above and this Lease is not terminated, Tenant shall immediately deposit with Landlord an amount of money equal to the amount so applied, and such amount shall be deemed to be part of the Security Deposit. In the event of a sale or transfer of Landlord’s interest in the Premises, Landlord shall have the right to transfer the Security Deposit to the purchaser or lessor, as the case may be, and upon any such application transfer and acknowledgement of receipt of Security Deposit by such transferee, Landlord shall be relieved of all liability to Tenant for the return of the Security Deposit, and Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit look solely to the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability new owner or lessor for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached hereto.

Security Deposit. The (a) Tenant shall deliver to Heritage Title Company of Austin, Inc. (“Escrow Agent”) upon execution and delivery of this Lease by Tenant the Security Deposit shall be deposited with Landlord as security for the full and faithful performance of each of the terms hereof by Tenant contemporaneously with the delivery by Tenant to Landlord of this LeaseTenant. The Security Deposit shall be held delivered to Landlord by the Escrow Agent upon Landlord, without liability for interest, as security for ’s achievement of the performance by Delivery Date Milestone and delivery to the Escrow Agent and Tenant of Tenant’s covenants the evidence of completion for such Milestone as set forth in Section 2.3 above. Landlord and obligations under Tenant shall execute a commercially reasonable escrow agreement regarding the escrow of the Security Deposit promptly after execution of this Lease, it being expressly understood agreed that the Escrow Agent’s standard escrow agreement is commercially reasonable. Landlord shall be required to keep the Security Deposit separate from its general funds and Tenant shall be entitled to interest thereon. If an Event of Default occurs, Landlord may, but shall not be considered required to, use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of such Event of Default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of such Event of Default, including, without limitation, costs and attorneys’ fees incurred by Landlord to recover possession of the Premises. If any portion of the Security Deposit is so used or applied, Tenant shall, upon 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 constitute an Event of Default. The Security Deposit is not an advance payment of Rent or a measure or limit of TenantLandlord’s liability for damages upon an Event of Default. (b) Except as expressly set forth in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application of the Security Depositthis Lease, Tenant shall pay acknowledges that Landlord has the right to Landlord on demand the amount so applied in order to restore the Security Deposit to the amount required hereunder, from time to time. If Landlord transfers transfer or mortgage its interest in the Complex during the term of Building and in this Lease, and Tenant agrees that in the event of any such transfer or mortgage, Landlord may shall have the right to transfer or assign the Security Deposit to the transferee and upon assumption by or mortgagee. Upon such transferee transfer or assignment of liability for the Security Deposit, Landlord shall have no further be deemed released by Tenant from all liability or obligation for the return of the Security Deposit and Tenant shall look solely to such Security Deposit. Upon application of all transferee or any part mortgagee for the return of the Security Deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, Tenant must upon demand restore the Security Deposit or any balance thereof shall be returned to Tenant (or, at Landlord’s option, to the amount required last assignee of Tenant’s interest hereunder, from time to time. No application ) within sixty (60) days following the expiration of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions Term and surrender of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender possession of the Premises to Landlord subject to any deductions made by Landlord pursuant to in compliance with the terms provisions of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached hereto.

Security Deposit. The Security Deposit shall be deposited Concurrently with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord Subtenant’s execution of this LeaseSublease, Subtenant shall deposit with Sublandlord the sum of $20,512.89 (the “Security Deposit”). The Security Deposit shall be held by Landlord, without liability for interest, Sublandlord as security for the faithful performance by Tenant Subtenant of Tenant’s covenants and obligations under all the provisions of this LeaseSublease to be performed or observed by Subtenant. If Subtenant fails to pay rent or other sums due hereunder, it being expressly understood that or otherwise defaults with respect to any provisions of this Sublease after all applicable cure periods, Sublandlord may use, apply or retain all or any portion of the Security Deposit shall not be considered an advance for the payment of Rent any rent or a measure other sum in default or for the payment of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedysum to which Sublandlord may become obligated by reason of Subtenant’s default, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy compensate Sublandlord for any other covenant loss or obligation of Tenant hereunder following the expiration of damage which Sublandlord may suffer thereby. If Sublandlord so uses or applies all or any applicable cure periods. Following any such application portion of the Security Deposit, Tenant Subtenant shall pay to Landlord on demand the within ten (10) business days after receipt of written notice therefor deposit cash with Sublandlord in an amount so applied in order sufficient to restore the Security Deposit to the full amount required hereunder, from time thereof and Subtenant’s failure to time. If Landlord transfers its interest in the Complex during the term do so shall be a material breach of this Lease, Landlord may assign Sublease. Sublandlord shall not be required to keep the Security Deposit to the transferee and upon assumption by such transferee separate from its general accounts. If Subtenant performs all of liability for Subtenant’s obligations hereunder, the Security Deposit, Landlord or so much thereof as has not theretofore been applied by Sublandlord, shall be returned, without interest, to Subtenant (or, at Sublandlord’s option, to the last assignee, if any, of Subtenant’s interest hereunder) following the expiration of the Term, and after Subtenant has vacated the Subleased Premises; in addition to any other deductions Sublandlord is entitled to make pursuant to the terms hereof, Sublandlord shall have no further liability for the return right to make a good faith estimate of such any unreconciled Operating Costs as of the date of expiration and to deduct any anticipated shortfall from the Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must Such estimate shall be final and binding upon demand restore the Security Deposit to the amount required hereunder, from time to timeSubtenant. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation trust relationship is created herein between Sublandlord and Subtenant with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoDeposit.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, Landlord as security for the performance by Tenant of Tenant’s covenants and 's obligations under this Lease, it being expressly understood that the . The Security Deposit shall is not be considered an advance payment of Rent rental deposit or a measure of Tenant’s liability for Landlord's damages in case of default Tenant's default. Upon each occurrence of a Default, Landlord may use all or part of the Security Deposit to pay delinquent payments due under this Lease, and the cost of any damage, injury, expense or liability caused by Tenant. Landlord may, from time to timesuch Default, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent remedy provided herein or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodsprovided by law. Following Upon any such application use of all or any portion of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to that will restore the Security Deposit to the amount required hereunderits original amount. Upon bankruptcy or other debtor-creditor proceedings against Tenant, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit shall be deemed to be applied first to the transferee payment of Rent and upon assumption by such transferee of liability other charges due Landlord for periods prior to the Security Deposit, Landlord shall have no further liability for the return filing of such Security Depositproceedings. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore Landlord's obligation respecting the Security Deposit to the amount required hereunderis that of a debtor, from time to timenot a trustee; no interest shall accrue thereon. No application of the The Security Deposit by 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 will shall be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) released from any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days upon transfer of the surrender 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 subject 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 deductions made other loss or damage, foreseeable or unforeseeable, caused by Landlord pursuant the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. If Tenant shall fully perform every provision of this Lease to be performed by Tenant, the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord's option, to the terms last assignee of Tenant's interest hereunder) within 60 days after the expiration or earlier termination of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached hereto.

Security Deposit. The Security Deposit shall be deposited Concurrently with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord its execution of this Lease. The , Tenant shall deliver to Landlord the amount identified in the Basic Lease Information as the Security Deposit shall to be held by Landlord, Landlord without liability for interest, interest (unless required by Law) as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the obligations. The Security Deposit shall is not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenantdamages. Landlord may, may from time to time, without prejudice to any other remedyremedy provided in this Lease or by Law, use all or a portion of the Security Deposit to the extent necessary to make good any arrearages of satisfy past due Rent or to satisfy Tenant’s Default under this Lease or to reimburse or compensate Landlord for any other covenant liability, expense, loss or obligation damage which Landlord may suffer or incur and has a right of Tenant hereunder following recovery for the expiration of same from Tenant. If Landlord so uses or applies all or any applicable cure periods. Following any such application portion of the Security Deposit, then within fifteen (15) days after demand therefore, Tenant shall pay deposit cash with Landlord in an amount sufficient to restore the deposit to the full amount thereof, and Tenant’s failure to do so shall constitute a Default under this Lease. If there are no payments to be made from the Security Deposit as set out in this paragraph, or if there is any balance of the Security Deposit remaining after all payments have been made, the Security Deposit, or such balance thereof remaining, will be refunded to the Tenant after the expiration or earlier termination of this Lease. Tenant hereby waives the benefit of the provisions of California Civil Code Section 1950.7. In the event of an act ▇▇▇▇▇▇▇▇.v9 of bankruptcy by or insolvency of Tenant or the appointment of a receiver for Tenant or general assignment for the benefit of ▇▇▇▇▇▇’s creditors, the Security Deposit shall be deemed immediately assigned to Landlord. Except in the event of a current unresolved Tenant Default, at the end of the Term the Landlord will deliver the Security Deposit to Tenant within forty five (45) days following the Landlord’s acceptance of the surrender of the Premises upon the expiration date of this Lease delivered by Tenant in accordance with the surrender conditions set forth herein. Provided that Tenant is not in default under the terms and conditions of this Lease, Tenant will have the right to substitute the cash Security Deposit described in the Basic Lease Information for a clean, irrevocable, unconditional and transferable standby letter of credit in the same amount (“Letter of Credit”) issued by and drawn upon a reputable commercial bank or financial institution (the “Issuing Bank”), which Letter of Credit shall have a term of not less than one year, and, be in the amount of $188,023.50. If in accordance with the terms of Section 4.1(a) above, Tenant has not provided the Letter of Credit to Landlord on demand with the amount so applied in order to restore delivery of the Lease and has delivered the Security Deposit to the Landlord then upon delivery to Landlord of an approved original Letter of Credit the Landlord shall deliver to Tenant the cash Security Deposit within ten (10) business days of receipt of the approved original Letter of Credit. The Letter of Credit shall provide that: (i) the Issuing Bank shall pay to Landlord an amount required hereunderup to the face amount of the Letter of Credit upon presentation of a signed draw down demand form acceptable to Issuing Bank delivered either by electronic mail or facsimile to cure a default by Tenant after notice of default from Landlord and certification from Landlord that a default has occurred under the Lease and is continuing; (ii) the Letter of Credit shall be automatically renewed, from time without amendment, for consecutive periods of one year each during the Term of this Lease not to time. If extend beyond the Expiration Date; (iii) the Issuing Bank will retain the right to deliver written notice (the “Non-Renewal Notice”) to Landlord transfers its interest not less than thirty (30) days preceding the then expiration date of the Letter of Credit, that it elects not to renew such Letter of Credit and in the Complex during event that the term Issuing Bank sends a Non-Renewal Notice, Tenant shall have thirty (30) days to provide Landlord with a substitute Letter of this Lease, Credit acceptable to Landlord may assign in the commercially reasonable exercise of its judgment or to post the cash Security Deposit Deposit. In the event that ▇▇▇▇▇▇ fails within said thirty (30) day period to the transferee and upon assumption by such transferee provide Landlord with a substitute Letter of liability for the Credit or cash Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part right to draw the full amount of the Security Deposit, Tenant must upon demand restore the Letter of Credit (which moneys shall be held by Landlord as a cash Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this LeaseSection 7). Notwithstanding anything If Landlord makes a draw upon the Letter of Credit then any balance of the drawn monies received by Landlord not applied to the contrary contained herein, Tenant shall provide the cure a default will be held by Landlord as Security Deposit in for the form remainder of the Term. If a draw upon the Letter of Credit is made by Landlord due to a default of Tenant the right to provide Landlord a Letter of Credit as alternative security to delivery of the cash Security Deposit shall be suspended for the remainder of the Term unless, in accordance Landlord’s sole and absolute discretion without any obligation to approve the same, ▇▇▇▇▇▇▇▇ agrees to permit Tenant to provide a replacement clean, irrevocable, unconditional and transferable standby letter of credit upon the terms described in this Section 7 with Exhibit “M” attached hereto.any other commercially reasonable conditions required by Landlord. Tenant acknowledges and agrees that the Letter of Credit shall be at all times a third party obligation of the Issuing Bank to the Landlord and independent of the terms of this Lease. The terms of this Section 7 shall expressly survive the expiration or earlier termination of the Lease. 60447235.v9

Security Deposit. The Security Deposit shall be 9.1. Tenant has deposited with Landlord the sum set forth in Section 2.6 (the “Security Deposit”), which sum shall be held by Landlord as security for the faithful performance by Tenant contemporaneously with of all of the delivery terms, covenants and conditions of this Lease to be kept and performed by Tenant to Landlord during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. The If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit shall be held by Landlord, without liability for interest, as security for the performance payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by Tenant reason of Tenant’s covenants and obligations under this Lease, it being expressly understood that default. If any portion of the Security Deposit shall not be considered is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order 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. The provisions of this Article 9 shall survive the expiration or earlier termination of this Lease. TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, AS THE SAME MAY BE AMENDED FROM TIME TO TIME. 9.2. In the event of 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 all periods prior to the filing of such proceedings. 9.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, 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. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the 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. 9.5. Provided that Tenant is not then in default of its obligations under this Lease, upon the expiration of the thirty-sixth (36th) month of the Term, the Security Deposit requirement shall be reduced to $78,889.20 and (a) Landlord shall, on or before the end of the thirty-seventh (37th) month of the Term, refund to Tenant the amount of the Security Deposit held by Landlord in excess thereof or (b) the amount of the L/C Security (as defined below) shall be reduced accordingly, as applicable. 9.6. If the Security Deposit shall be in cash, Landlord shall deposit the Security Deposit into an interest-bearing account at a banking organization selected by Landlord. All interest and/or dividends, if any, accruing on the Security Deposit, less a one percent (1%) per annum charge on the Security Deposit for administrative expenses, shall be added to, held and included within the term Security Deposit and, provided that no Default shall have occurred and be continuing, shall accrue to the account of Tenant. Landlord shall not be required hereunderto credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 9.7. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument 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 the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. Landlord hereby approves of Silicon Valley Bank as the issuer of Tenant’s L/C Security. 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 timetime 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 actual legal costs (as calculated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall 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 30 (thirty) 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) six (6) 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, provided that Tenant shall not be required to pay any such charges earlier than twenty (20) days following Landlord’s demand therefor) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security, and Tenant fails to obtain a replacement letter of credit conforming to the requirements of this Lease at least fifteen (15) business days prior to such cessation. 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. (e) If Landlord transfers its interest in the Complex during Premises, then Tenant shall at Tenant’s expense, within five Business Days after receiving a request from Landlord, deliver (and, if the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Depositissuer requires, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit consent to) an amendment to the amount L/C Security naming Landlord’s grantee as substitute beneficiary. If the required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter changes while L/C Security is in force, which restrict then Tenant shall deliver (and, if the amount or types of claim that issuer requires, Landlord shall consent to) a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect corresponding amendment to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoL/C Security.

Security Deposit. The Tenant acknowledges and agrees that Tenant has delivered to Landlord a Security Deposit (as defined in the 901 Gateway Lease) pursuant to the terms of the 901 Gateway Lease and that Landlord shall be deposited have the right to apply all or any portion of such Security Deposit in connection with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of any Default (as defined in Paragraph 24) under this Lease. The Security Deposit shall be held by is not an advance rental deposit or a measure of Landlord, without liability for interest, as security for the performance by Tenant ’s damages in case of Tenant’s covenants and obligations default. Upon each occurrence of a Default by Tenant under this Lease, it being expressly understood that Landlord may use all or any part of the Security Deposit shall not be considered an advance payment to pay delinquent payments due under this Lease, future rent damages under California Civil Code Section 1951.2, and the cost of Rent any damage, injury, expense or a measure of Tenant’s liability for damages in case of default caused by Tenant. Landlord may, from time to timesuch Default, without prejudice to any other remedy, remedy provided herein or provided by law. Landlord’s right to use the Security Deposit under this Paragraph 7 includes the right to use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder pay future rent damages following the expiration termination of this Lease pursuant to Paragraph 25.5 below. Upon any applicable cure periods. Following use of all or any such application portion of the Security Deposit, Tenant shall pay to Landlord on within twenty (20) days after receipt of written demand the amount so applied in order to that will restore (by the delivery of a replacement or amended Letter of Credit) the Security Deposit to the amount set forth in the definition of “Letter of Credit” set forth in the Basic Lease Information of the 901 Gateway Lease. Tenant hereby waives the provisions of any law, now or hereafter in force, including, without limitation, California Civil Code Section 1950.7, 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 Default of Tenant or any of Tenant’s Agents under this Lease. 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, subject to applicable bankruptcy law. If Tenant shall fully perform every provision of this Lease to be performed by Tenant and Landlord is holding cash in the amount of a bifurcated Letter of Credit (as described below) or cash proceeds therefrom, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all amounts to which Landlord is entitled under the provisions of this Lease), shall be returned to Tenant within ninety (90) days after the expiration or earlier termination of this Lease. If Landlord is holding a bifurcated Letter of Credit upon the expiration or earlier termination of this Lease, Landlord shall comply with the LC Issuer’s requirements necessary to cancel the bifurcated Letter of Credit by the date that is ninety (90) days after the expiration or earlier termination of this Lease. Notwithstanding anything contained in this Paragraph 7 to the contrary, if Landlord draws on the Letter of Credit for any reason, then Tenant shall have the right, upon ten (10) days’ prior written notice to Landlord, to obtain a refund from Landlord of any unapplied proceeds of the Letter of Credit which Landlord has drawn upon, any such refund being conditioned upon Tenant simultaneously delivering to Landlord a replacement Letter of Credit in the amount required hereunderby, from and otherwise meeting the requirements contained in, this Paragraph 7 and Paragraph 7 of the 901 Gateway Lease. Notwithstanding anything to the contrary contained herein or in the 901 Gateway Lease, if requested by Landlord at any time following the date of this Lease, Tenant shall cause the LC Issuing Bank (as defined in the 901 Gateway Lease) to timebifurcate the Letter of Credit (as defined in the 901 Gateway Lease) into two separate letters of credit, one securing Tenant’s obligations under the 901 Gateway Lease and the other securing Tenant’s obligations under this Lease. Such bifurcated letters of credit shall each be in an amount specified by Landlord, provided that the aggregate amount of such letters of credit shall equal the amount of the Letter of Credit immediately prior to such bifurcation. Concurrently with the bifurcation of the Letter of Credit, Landlord and Tenant shall enter into a modification of the 901 Gateway Lease and a modification of this Lease, which modifications shall amend Paragraph 7 of the 901 Gateway Lease and this Paragraph 7 to provide for separate, stand-alone security deposit provisions in the 901 Gateway Lease and this Lease. If Landlord transfers its interest in the Complex during the term of Project or this Lease, Landlord may assign shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this Paragraph 7, or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to such transferee or the return of the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security DepositTenant, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or Security Deposit, and Tenant’s right to the return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in shall apply solely against Landlord’s transferee. Landlord’s obligation respecting the form Security Deposit is that of a Letter of Credit in accordance with Exhibit “M” attached heretodebtor, not a trustee, and no interest shall accrue thereon.”

Security Deposit. The Security Deposit shall be Tenant has deposited with Landlord the Security Deposit in the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant contemporaneously with the delivery by Tenant to Landlord of under this Lease. The Security Deposit Landlord shall be held by Landlordhave the right, without liability for interestbut not the obligation, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be considered an advance payment of Rent or a measure of affected by the fact that Landlord holds security. Tenant’s 's liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit is not limited to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application amount of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part give Tenant written notice of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant part thereof within thirty (30) days of said application. If the surrender application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms same, attaching estimates or paid receipts. Upon receipt of this Lease. Notwithstanding anything to the contrary contained hereinsaid notice, Tenant shall provide at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the form of a Letter of Credit Property in accordance with Exhibit “M” attached heretoParagraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Building.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with Upon the delivery by Tenant to Landlord later of execution of this Lease. The Amendment and Landlord's receipt of Tenant's deposit in the amount of $150,000.00 (the "Security Deposit shall be held by LandlordDeposit"), without liability for interest, Landlord agrees to waive the requirement of a letter of credit as security for the performance by Tenant of Tenant’s covenants and 's obligations under this the Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use may apply all or part of the Security Deposit to the extent necessary to make good any arrearages of unpaid Rent or to satisfy cure any other covenant or obligation defaults of Tenant hereunder following the expiration of Tenant. If Landlord uses any applicable cure periods. Following any such application part 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 within 1O business days after Landlord's written request. Tenant's failure to do so shall be a default under the Lease and the overdue amount required hereundershall accrue interest as any delinquent payment. If twice within any 12 month period, from time late charges are assessed against Tenant by Landlord, Landlord may, by written notice to timeTenant, require Tenant to pay Landlord an amount equal to two months Base Rent as an increase in the Security Deposit, due within 5 business days after Tenant's receipt of the notice. If Landlord transfers its interest in the Complex during the term of this LeasePremises, Landlord may assign shall transfer the Security Deposit to its successor in interest, and notify Tenant in writing of such transfer, including the transferee date of the transfer, the amount transferred, and upon assumption by such transferee the name and address of liability for the Security Deposittransferee, whereupon Landlord shall have no further be automatically released from any liability for the return of such the Security Deposit. Upon application of all or any part If, at the end of the Security DepositTerm, Tenant must upon demand restore has fully complied with all obligations under the Lease, then the remaining Security Deposit shall be returned to Tenant after Landlord has verified that Tenant has fully vacated the amount required hereunderPremises, from time to time. No application removed all of its property and surrendered the Premises in the condition required; provided that Landlord may hold back a reasonable portion of the Security Deposit by Landlord will be deemed to have cured until final determination of Tenant’s default. Tenant waives all provisions 's Share of Laws, now or hereinafter in forceCommon Expenses due hereunder, which restrict shall be made no later than 6 months following the amount expiration of the Term or types earlier termination of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) the Lease, whereupon any obligation final adjustment shall be made and any remaining Security Deposit shall be returned to Tenant. Landlord's obligations with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days are those of the surrender a debtor and not of the Premises to a trustee, and Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide can commingle the Security Deposit with Landlord's general funds and no interest shall be paid to Tenant on the Security Deposit. If the Premises is further increased in size due to any option Tenant exercises or otherwise, the form Security Deposit shall be increased to an amount to be determined by Landlord at the time of a Letter of Credit in accordance with Exhibit “M” attached heretoexpansion.

Security Deposit. (a) Simultaneously with the execution and delivery of this Lease, Tenant shall deliver to Landlord the Security Deposit in cash or immediately available funds. (b) The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, as is security for the faithful performance and observance by Tenant of Tenant’s covenants the terms and obligations under conditions of this Lease, it being expressly understood that the Security Deposit shall Lease and is not be considered an advance payment of Rent rent. If an Event of Default occurs, Landlord may use, apply or a measure retain all or any part of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good required for payment of any arrearages of Base Rent or to satisfy any other covenant sum as to which Tenant is in default or obligation for any sum which Landlord may expend or may be required to expend by reason of Tenant hereunder following the expiration occurrence of an Event of Default, including, but not limited to, any applicable cure periodsdamage or deficiency accrued before or after summary proceedings or other re-entry by Landlord, including the costs of such proceeding or re-entry and further including, without limitation, reasonable attorneys’ fees. Following any such application If an Event of Default occurs, Landlord shall have the right to apply the Security Deposit, or any part thereof, as aforesaid, without additional notice and without prejudice to any other remedy or remedies which Landlord may have, or Landlord may pursue any other such remedy or remedies in lieu of applying the Security Deposit or any part thereof. No interest shall be payable on the Security Deposit and Landlord shall have the right to commingle the Security Deposit with other funds of Landlord. If Landlord applies the Security Deposit in whole or in part, Tenant shall immediately upon demand pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. In the amount required event of a sale or other transfer of Landlord’s Property, or leasing of Landlord’s Property subject to Tenant’s tenancy hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign shall transfer the Security Deposit then remaining to the transferee and upon assumption by such transferee of liability for the Security Depositvendee or lessee, in which event Landlord shall have no further thereupon be released from all liability for the return of such Security DepositDeposit to Tenant; and Tenant shall look solely to the new landlord for the return of the Security Deposit then remaining. Upon The holder of any mortgage on Landlord’s Property shall not be responsible to Tenant for the Security Deposit or its application of all or any part of return unless the Security Deposit shall actually have been received by such holder. Tenant shall not assign or encumber or attempt to assign or encumber the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunderand Landlord shall not be bound by any such assignment, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Lawsencumbrance, now attempted assignment or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoattempted encumbrance.

Security Deposit. The Security Deposit shall be deposited Concurrently with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord Tenant’s execution of this Lease. The Security Deposit , Tenant shall be held by Landlord, without liability for interest, deliver to Landlord a sum equal to the amount stated in Section l(i) as security for the performance by Tenant of Tenant’s covenants every covenant and obligations under condition of this Lease, it being expressly understood that . Landlord’s obligations with respect to the Security Deposit shall are those of a debtor and not be considered an advance a trustee. Landlord may maintain such sums separate and apart from Landlord’s general funds or may commingle them with Landlord’s general or other funds. Landlord is not required to pay Tenant interest on such sums, or any portion thereof. If Tenant defaults with respect to any covenant or condition of this Lease beyond any applicable notice and cure period, including but not limited to the payment of Rent rent, Landlord may apply the whole or a measure part of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good payment of any arrearages of Rent sum in default or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, sum which Landlord may assign the Security Deposit be required to the transferee and upon assumption spend by such transferee reason of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) shall replenish any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made amounts spent by Landlord pursuant to the terms of Section 23 below within thirty (30) days following receipt of notice from Landlord. Within a reasonable period of time (not to exceed thirty (30) days) after expiration of the Lease Term or earlier termination of this Lease, the Security Deposit shall be returned to Tenant, less those amounts that may be required by Landlord under the terms of this Lease (a) to remedy defaults on the part of Tenant in the payment of Rent or otherwise, (b) to repair damages to the Premises caused by Tenant, provided Landlord is entitled to the same under the terms of this Lease, and (c) to restore the Premises to the condition required by this Lease. Notwithstanding anything to If Landlord disposes of its interest in the contrary contained hereinPremises, Tenant Landlord shall provide deliver or credit the Security Deposit to Landlord’s successor in interest in the form Premises and provided such successor assumes Landlord’s obligations hereunder, Landlord shall be relieved of a Letter of Credit in accordance further responsibility with Exhibit “M” attached heretorespect to the Security Deposit.

Security Deposit. The On the Effective Date, Tenant shall deposit with Landlord the Security Deposit as set forth in Paragraph 16 of the Summary of Basic Lease Terms as security for the full and faithful performance by Tenant of all Tenant’s obligations hereunder. No interest shall be deposited with paid upon the Security Deposit nor shall Landlord by Tenant contemporaneously with be required to maintain the delivery by Tenant to Landlord of this Leasedeposit in a segregated account. The Security Deposit shall not be held 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 damages sustained by Landlord, without liability for interest, as security for including but not limited to actual damages sustained by the performance Landlord by Tenant reason of the default of Tenant’s covenants and obligations under this Lease, it being expressly understood 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 Security Deposit shall not be considered an advance payment 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 such proceedings; to accrued and unpaid Rent or prior to the filing of such proceeding, and thereafter to actual damages, obligations, other charges and damages sustained by Landlord and Rent due the Landlord for all periods subsequent to such filing. In the event of a measure sale of Tenant’s liability for damages in case of default by Tenant. the Building, Landlord may, from time shall have the right to time, without prejudice to any other remedy, use transfer the Security Deposit to the extent necessary buyer, and, assuming the buyer assumes all of Landlord’s obligations under this Lease and with respect to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for obligation regarding the return of such Security Deposit. Upon application of all or any part of the Security DepositIf Tenant is not then in default under this Lease, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will or any balance thereof shall be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released returned to Tenant within thirty forty-five (3045) days after expiration of the surrender of Lease Term or forty-five (45) days after the Premises to Landlord subject to any deductions made by Landlord pursuant to final day Tenant occupies the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoLeased Premises.

Security Deposit. The Subtenant shall deposit with Sublandlord the sum of $23,364.84 (the “Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, Deposit”) as security for the performance by Tenant Subtenant of Tenant’s covenants and obligations under the provisions of this LeaseSublease. If Subtenant defaults with respect to any provision of this Sublease, it being expressly understood that the Security Deposit shall not be considered an advance including payment of Rent the Rent, Sublandlord may use, apply, draw upon or a measure retain all or any part of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good for the payment of any arrearages of Rent Rent, or to satisfy compensate Sublandlord for any other covenant loss, cost or obligation damage which Sublandlord may suffer by reason of Tenant hereunder following the expiration of Subtenant’s default. If any applicable cure periods. Following any such application portion of the Security DepositDeposit is so used, Tenant shall pay to Landlord on demand the applied, or drawn upon, Subtenant shall, within ten (10) days after notice thereof, deposit cash with Sublandlord in an amount so applied in order sufficient to restore the Security Deposit to the amount required hereunder, from time its original amount. Subtenant’s failure to time. If Landlord transfers its interest in the Complex during the term do so shall be a breach of this LeaseSublease. Sublandlord shall not, Landlord may assign unless otherwise required by law, be required to keep the Security Deposit separate from its general funds, nor pay interest to the transferee Subtenant. If Subtenant shall fully and upon assumption faithfully perform every provision of this Sublease to be performed by such transferee of liability for the Security Depositit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit or any balance thereof shall be returned to Subtenant (or to the amount required last transferee of Subtenant’s interest hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days after the expiration of the surrender Term (or sooner termination of this Sublease) and upon Subtenant’s vacation of the Premises to Landlord subject to any deductions made by Landlord pursuant to in accordance with this Sublease. If the terms of this Lease. Notwithstanding anything to the contrary contained hereinLease is assigned, Tenant shall provide the Security Deposit in shall be transferred to the form of a Letter of Credit in accordance assignee, and thereupon Sublandlord shall be discharged from further liability with Exhibit “M” attached heretorespect thereto.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, Landlord as security for the performance by Tenant of Tenant’s covenants and 's obligations under this Lease. If Tenant fails to pay Rent, it being expressly understood that the or otherwise an Event of Default occurs under this Lease, Landlord may use, apply or retain all or any portion of said Security Deposit shall not be considered an advance for the payment of Rent any amount already due Landlord, for Rents which will be due in the future, and/or to reimburse or a measure of Tenant’s liability compensate Landlord for damages in case of default any liability, expense, loss or damage which Landlord may suffer or incur by Tenantreason thereof. If Landlord may, from time to time, without prejudice to uses or applies all or any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application portion of the Security Deposit, Tenant shall pay to within 10 days after written request therefor deposit monies with Landlord on demand the amount so applied in order sufficient to restore the said Security Deposit to the full amount required hereunder, from time to timeby this Lease. If Landlord transfers its interest in the Complex Base Rent increases during the term of this Lease, Tenant shall, upon written request from Landlord, deposit additional monies with Landlord may assign so that the total amount of the Security Deposit shall at all times bear the same proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base Rent. Should the Permitted Use be amended to accommodate a material change in the business of Tenant or to accommodate a sublessee or assignee, Landlord shall have the right to increase the Security Deposit to the transferee extent necessary, in Landlord's reasonable judgment, to account for any increased wear and upon assumption by such transferee tear that the Premises may suffer as a result thereof. Landlord may use, apply or retain all or any portion of liability the Security Deposit (i) first, for Tenant's repair obligations, including without limitation, the obligation to restore the Premises to the condition required under this Lease, (ii) second, to the payment of any rent or other sum in default or for the payment of any other sum to which Tenant may become obligated by reason of Tenant's default, and (iii) third, to compensate Landlord for any loss or damage which Landlord may suffer thereby. 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 cause the Security DepositDeposit to be at a commercially reasonable level based on such change in financial condition. Landlord shall not be required to keep the Security Deposit separate from its general accounts. Within 90 days after the expiration or termination of this Lease, Landlord shall have no further liability for return that portion of the return Security Deposit not used or applied by Landlord. Landlord shall upon written request provide Tenant with an accounting showing how that portion of such the Security DepositDeposit that was not returned was applied. Upon application of all or any No part of the Security DepositDeposit shall be considered to be held in trust, to bear interest or to be prepayment for any monies to be paid by Tenant must upon demand restore the Security Deposit to the amount required hereunderunder this Lease (including, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s defaultwithout limitation, Base Rent). Tenant hereby waives California Civil Code Section 1950.7, and all other provisions of Lawslaw, now or hereinafter hereafter in force, which restrict the amount or types of may provide that Landlord can claim that a landlord may make upon from a security deposit or imposes upon a landlord (or its successors) any obligation with respect only those sums reasonably necessary to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit remedy defaults in the form payment of a Letter 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 Credit in accordance with Exhibit “M” attached heretoTenant or any officer, employee or agent of Tenant.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with Owner agrees to pay to the delivery by Tenant to Landlord Marina the amount of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance specified above, to secure the faithful performance of Owner's obligations hereunder. In addition to all remedies that ▇▇▇▇▇▇ ▇▇▇ have under this Agreement, ▇▇▇▇▇▇ ▇▇▇ at its sole option and judgment apply such amounts of said Security Deposit Fee as are reasonably necessary to: (a) remedy Owner's default in payment of Rent the fees and other charges due hereunder; (b) repair damage to Marina property caused by Owner's or a measure of Tenant’s liability for damages Owner's family, guests, agents or other invitees; (c) clean the berth/mooring/storage space; (d) pay attorneys' fees, litigation expenses and costs incurred in case of default by Tenant. Landlord may, from time enforcing the Marina's rights and remedies relating to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or this Agreement; and/or (e) to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application of the Owner's obligations hereunder. In the event this Security DepositDeposit or any portion thereof is applied as provided herein, Tenant shall pay Owner agrees to Landlord on deposit with the Marina, within ten (10) days after written demand the from ▇▇▇▇▇▇, an amount so applied in order sufficient to restore the said Security Deposit to its original sum. If the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit is increased during any term of the Agreement, Owner agrees to pay additional sums as will cause the Security Deposit paid by Landlord will be deemed him/her/it to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict equal the amount or types required by the Marina's then current "Rate Schedule." Failure to do so shall constitute a material breach of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) this Agreement. All Security Deposits are fully earned at the time of payment to Marina. Upon termination of this Agreement any obligation with respect to the handling or return remaining portion of security deposits. The said Security Deposit will be released returned to Tenant Owner within thirty (30) 30 days following the date the Marina has regained possession of the surrender berth/mooring/storage space and is able to determine the amount of the Premises to Landlord subject to any deductions made by Landlord pursuant refund if any, to the terms Owner. Unless the Marina expressly so approves in writing, Owner may not use any portion of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in as payment of the form last month's wharfage fees. ▇▇▇▇▇▇ shall have the right to combine said Security Deposit with other funds of a Letter of Credit in accordance with Exhibit “M” attached heretothe Marina. ▇▇▇▇▇▇ shall not be obligated to, and shall not, pay interest on the Security Deposit.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord Upon execution of this Lease, Tenant shall deposit with Landlord the Security Deposit. The Security Deposit shall be held by Landlord, without liability for interest, Landlord as security for the faithful performance of all the terms of this Lease to be observed and performed by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the . The Security Deposit shall not be considered an advance payment mortgaged, assigned, transferred or encumbered by Tenant and any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. Tenant shall cause the Security Deposit to be maintained throughout the term in the amount set forth in Section 1.1. If the Annual Fixed Rent or a measure Additional Rent payable hereunder shall be overdue and unpaid or should Landlord make any payment on behalf of the Tenant’s liability for damages in case , or Tenant shall fail to perform any of default by Tenant. the terms of this Lease, then Landlord may, from time to time, at its option and without notice or prejudice to any other remedyremedy which Landlord may have on account thereof, use appropriate and apply the entire Security Deposit to the extent or so much thereof as may be necessary to make good any arrearages compensate Landlord toward the payment of Annual Fixed Rent, Additional Rent or other sums or loss or damage sustained by Landlord due to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application of the Security Deposit, breach by Tenant; and Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must forthwith upon demand restore the Security Deposit to the amount required hereunderstated in Section 1.1. Notwithstanding the foregoing, from time to time. No upon the application by Landlord of all or any portion of the Security Deposit (with or without notice thereof to Tenant) to compensate Landlord for a failure by Landlord will Tenant to pay any Annual Fixed Rent or Additional Rent when due or to perform any other obligation hereunder, and until Tenant shall have restored the Security Deposit to the amount required by Section 1.1, Tenant shall be deemed to be in default in the payment of Additional Rent for purposes of Section 8.1(i) hereof. So long as Tenant shall not be in default of its obligations under this Lease, Landlord shall return the Security Deposit, or so much thereof as shall have cured Tenant’s default. Tenant waives all provisions not theretofore been applied in accordance with the terms of Lawsthis Section 4.7, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days 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 subject to any deductions made by Landlord pursuant to in accordance with the terms of this Lease. Notwithstanding anything While Landlord holds the Security Deposit, Landlord shall have no obligation to pay interest on the contrary contained hereinsame and shall have the right to commingle the same with Landlord’s other funds. If Landlord conveys Landlord’s interest under this Lease, the Security Deposit, or any part thereof not previously applied, shall be turned over by Landlord to Landlord’s grantee, and Tenant shall provide look solely to such grantee for proper application of the Security Deposit in accordance with the form terms of this Section 4.7 and the return thereof in accordance herewith. The holder of a Letter mortgage on the Property shall not be responsible to Tenant for the return or application of Credit in accordance with Exhibit “M” attached heretothe Security Deposit, whether or not it succeeds to the position of Landlord hereunder, unless such holder actually receives the Security Deposit.

Security Deposit. The Subject to the terms of Article 35 below, the Security Deposit Deposit, if any, shall be deposited with delivered to Landlord upon the execution of this Lease by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit and shall be held by Landlord, Landlord without liability for interest, interest (unless required by Law) as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the obligations. The Security Deposit shall is not be considered an advance payment of Rent or a measure of Tenant’s liability for damages damages. The amount of the Security Deposit shall be subject to reduction in case the manner and at the times specified as though it were a Letter of default by TenantCredit (as described in Article 35). Landlord may, from time to time, without prejudice to any other remedy, use all or a portion of the Security Deposit to the extent necessary to make good any arrearages of satisfy past due Rent or to satisfy cure any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodsuncured default by Tenant. Following any such application of If Landlord uses 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. At the amount required hereunderlater of (1) termination of this Lease, or (ii) the date Tenant surrenders the Premises to Landlord in accordance with the provisions of this Lease, Landlord shall return any unapplied portion of the Security Deposit (less any amounts retained to reimburse Landlord for any uncured defaults) to Tenant within 10 Business Days after the date this Lease expires or terminates and Tenant surrenders possession of the Premises to Landlord in accordance with this Lease. In addition to any other deductions Landlord is entitled to make pursuant to the terms hereof, Landlord shall have the right to make a good faith estimate of any unreconciled Expenses and/or Taxes as of the Termination Date and to deduct any anticipated shortfall from time to timethe Security Deposit. If Landlord transfers its interest in the Complex during the term of this LeasePremises, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for and, following the Security Depositassignment, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore provided that such transferee has agreed in writing to assume the obligations of Landlord under this Lease with respect to the Security Deposit. Landlord shall not be required to keep the Security Deposit to separate from its other accounts. Tenant hereby waives the amount required hereunder, from time to time. No application provisions of Section 1950.7 of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of LawsCalifornia Civil Code, or any similar or successor Laws now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoeffect.

Security Deposit. The Security Deposit Tenant shall be deposited with deliver to Landlord at the time of execution of this Lease by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, security deposit set forth in Section 1.16 as security for the Tenant’s faithful performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of hereunder. If Tenant fails to pay Base Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord mayother charges due hereunder, from time to time, without prejudice or otherwise defaults with respect to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term provision of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord (but shall have no further liability for the return obligation to), after expiration of such Security Deposit. Upon application of any applicable notice and opportunity to cure, use all or any part portion of said deposit for the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required payment of any Base Rent or other charge due hereunder, from time to time. No application pay any other sum to which Landlord may become obligated by reason of the Security Deposit by Landlord will be deemed to have cured Tenant’s default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby. If Landlord so uses or applies all or any portion of said deposit, Tenant waives all provisions of Laws, now or hereinafter shall within ten (10) days after written demand therefor deposit cash with Landlord in force, which restrict the an amount or types of claim that a landlord may make upon a sufficient to restore said deposit to its full amount. Landlord shall not be required to keep said security deposit separate from its general accounts. If Tenant performs all of Tenant’s obligations hereunder, said deposit, or imposes upon a landlord so much thereof as shall not then have been applied by Landlord, shall be returned, without payment of interest or other amount for its use, to Tenant (or its successors) any obligation with respect or, at Landlord’s option, to the handling or return last assignee, if any, of security deposits. The Security Deposit will be released to Tenant Tenant’s interest hereunder) within thirty (30) days after the expiration of the surrender term hereof, and after Tenant has vacated and delivered the Premises as required hereunder. Landlord may retain an amount reasonably calculated to be sufficient to pay any final amount of Taxes or Operating Expenses for the Comparison Year in which the Term ends. No trust relationship is created herein between Landlord and Tenant with respect to said security deposit. Tenant acknowledges that the security deposit is not an advance payment of any kind or a measure of or limit on Landlord’s damages in the event of Tenant’s default. Any application of the Premises to security deposit by Landlord subject shall be without prejudice to any deductions made other right or remedy. 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 pursuant to Landlord’s grantee, and, when so turned over, Tenant agrees to look solely to such grantee for proper application of the security deposit in accordance with the terms of this LeaseSection 5, and the return thereof in accordance herewith. Notwithstanding anything The holder of a mortgage shall not be responsible to Tenant for the return or application of any such deposit, whether or not it succeeds to the contrary contained hereinposition of Landlord hereunder, unless such deposit shall have been received in hand by such holder. Tenant shall provide hereby waives the Security Deposit in the form provisions of a Letter of Credit in accordance any law which is inconsistent with Exhibit “M” attached heretothis Section 5.

Security Deposit. The Within ten (10) days of the Effective Date, Tenant shall deposit with Landlord the Security Deposit as set forth in Item 13 of the Summary of Basic Lease Terms as security for the full and faithful performance by Tenant of all Tenant’s obligations hereunder. No interest shall be deposited with paid upon the Security Deposit nor shall Landlord by Tenant contemporaneously with be required to maintain the delivery by Tenant to Landlord of this Leasedeposit in a segregated account. The Security Deposit shall not be held construed as prepaid Rent. In the event that Tenant shall default in the full and faithful performance of any of the terms hereof, then Landlord may either retain the Security Deposit as liquidated damages, or a portion thereof, for damages caused by Tenant beyond ordinary wear and tear, or Landlord may retain the same and apply it toward any damages sustained by Landlord, without liability for interest, as security for including but not limited to actual damages sustained by the performance Landlord by Tenant reason of the default of Tenant’s covenants and obligations under this Lease, it being expressly understood 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 Security Deposit shall not be considered an advance payment 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 such proceedings; to accrued and unpaid Rent or prior to the filing of such proceeding, and thereafter to actual damages, obligations, other charges and damages sustained by Landlord and Rent due the Landlord for all periods subsequent to such filing. In the event of a measure sale of Tenant’s liability for damages in case of default by Tenant. the Land and the Building, Landlord may, from time to time, without prejudice to any other remedy, use shall transfer the Security Deposit to the extent necessary buyer, and shall confirm the same to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application of the Security Depositin writing, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee after which transfer and upon assumption by such transferee of liability for the Security Deposit, written confirmation Landlord shall have no further liability for obligation regarding the return of such Security Deposit. Upon application Notwithstanding the foregoing, and so long as Tenant is not in default of all this Lease beyond any applicable cure period, Landlord shall return to Tenant (or, at Tenant’s option, or any part apply to subsequent payments of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required Rent due hereunder, from time to time. No application ) a portion of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim Sixty Thousand and 00/100 Dollars ($60,000.00) upon the first anniversary of the Commencement Date and also upon the date that a landlord may make upon a security deposit or imposes upon a landlord is eighteen (or its successors18) any obligation with respect to months after the handling or return of security depositsCommencement Date. The remaining balance of the Security Deposit will shall be released held until the expiration of the Lease Term. If Tenant fully and faithfully complies with all of the terms hereof, the Security Deposit or any balance thereof shall be returned to Tenant within thirty (30) days after expiration of the surrender of Lease Term or thirty (30) days after the Premises to Landlord subject to any deductions made by Landlord pursuant to final day Tenant occupies the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoPremises.

Security Deposit. The Security Deposit Tenant shall be deposited deposit with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord amount set forth in Article 1 (“Security Deposit”), upon Tenant’s execution and submission of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, serve as security for the prompt, full and faithful performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term provisions of this Lease. If Tenant commits a Default, or owes any amounts to Landlord upon the expiration or earlier termination of this Lease (including estimated amounts under Article 3, which shall remain subject to reconciliation against actual amounts as further provided therein), Landlord may assign use or apply the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all whole or any part of the Security Deposit, Tenant must upon demand restore Deposit for the Security Deposit to the amount required payment of Tenant’s obligations hereunder, from time to time. No The use or application of the Security Deposit or any portion thereof shall not prevent Landlord from exercising any other right or remedy provided hereunder or under any Law and shall not be construed as liquidated damages. In the event the Security Deposit is reduced by such use or application, Tenant shall deposit with Landlord will within ten (10) days after notice, an amount sufficient to restore the full amount of the Security Deposit. Landlord shall not be deemed required to have cured keep the Security Deposit separate from Landlord’s general funds or pay interest on the Security Deposit. Any remaining portion of the Security Deposit not used or applied hereunder shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter interest in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successorsthis Lease) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days after Tenant (or such assignee) has vacated the Premises in accordance with Article 23 and this obligation shall survive termination of the surrender of Lease. If the Premises to Landlord subject to shall be expanded at any deductions made by Landlord pursuant to time, or if the terms Term shall be extended at an increased rate of this Lease. Notwithstanding anything to the contrary contained hereinRent, Tenant shall provide the Security Deposit shall thereupon be proportionately increased. Tenant shall not assign, pledge or otherwise transfer any interest in the form Security Deposit except as part of a Letter an assignment of Credit in accordance this Lease approved by Landlord under Article 13, and any attempt to do so shall be null and void. Landlord shall provide Tenant with Exhibit “M” attached heretowritten notice of the transfer of the Security Deposit to any other party.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord 9.1 Upon execution of this Lease. The Security Deposit , Tenant shall be held by Landlord, without liability for interest, deposit with Landlord cash in the amount of $268,583 as security for the faithful performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application all of the Security Depositterms, covenants, and conditions of this Lease to be kept and performed by Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term and any extension term hereof If Tenant defaults with respect to any provision of this Lease, including but not limited to any provision relating to the payment of Rent, and subject to any notice requirements and cure periods for Tenant’s benefit set forth in Article 24, Landlord may assign (but shall not be required) to use, apply or retain the Security Deposit to the transferee and upon assumption by such transferee of liability security deposit for the Security Deposit, Landlord shall have no further liability for the return payment of such Security Deposit. Upon application of all any Rent or any part other sum in default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Landlord may use the security deposit without giving notice of default to Tenant waives all as otherwise required by Article 24 if Landlord is precluded from giving such notice by any provision of the Bankruptcy Code. Tenant hereby grants to Landlord a security interest in the security deposit in accordance with the applicable provisions of Laws, now the California Commercial Code to secure the obligations of this Lease. 9.2 In the event any or hereinafter in force, which restrict all of the amount or types of claim that a landlord may make upon a security deposit is used to cure a Tenant default, Tenant shall within fifteen (15) days after request therefore replenish the security deposit to the full amount set forth above. 9.3 In the event of bankruptcy or imposes upon a landlord (or its successors) 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 all periods prior to the filing of such proceedings. 9.4 Landlord shall deliver the security deposit to any obligation purchaser of Landlord’s interest in the Premises, and thereupon Landlord shall be discharged from any further liability with respect thereto provided that such purchaser has agreed to assume in writing the handling or return obligations of Landlord hereunder. This provision shall also apply to any subsequent transfers. 9.5 The security deposits. The Security Deposit will deposit shall be released returned to Tenant within thirty (30) days of following the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms expiration of this Lease. Notwithstanding anything , except for amounts which are actually used to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretopay or reimburse Landlord for costs incurred by Landlord to cure any default by Tenant.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with shall, at the delivery by time that Tenant executes and delivers this Lease to Landlord, pay to Landlord of a security deposit (the “Security Deposit”) in the amount set forth in Exhibit 1 securing Tenant’s obligations under this Lease. The In no event shall the Security Deposit be deemed to be a prepayment of rent or a measure of liquidated damages. ▇▇▇▇▇▇ agrees that no interest shall be held by accrue on the Security Deposit and that Landlord shall have the right to commingle the Security Deposit with other funds of Landlord, without liability for interest, as security for . In the performance by event that Tenant shall default in any of Tenant’s covenants and its obligations under this Lease, it being expressly understood that Landlord shall have the right, without prior notice to Tenant, to apply the Security Deposit (or any portion thereof) towards the cure of any such default. Tenant shall not be considered an advance payment promptly, upon notice from Landlord, pay to Landlord any amount so applied by Landlord in order to restore the full amount of Rent the Security Deposit. In addition, in the event of a termination based upon the default of Tenant under this Lease, or a measure rejection of Tenant’s liability for damages in case this Lease pursuant to the provisions of default by Tenant. the Federal Bankruptcy Code, Landlord may, shall have the right to apply the Security Deposit (from time to time, without prejudice if necessary) to cover the full amount of damages and other amounts due from Tenant to Landlord under this Lease. Any amounts so applied shall, at ▇▇▇▇▇▇▇▇’s election, be applied first to any unpaid rent and other remedy, use the Security Deposit charges which were due prior to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application filing of the Security Deposit, Tenant shall pay to Landlord on demand petition for protection under the amount so applied in order to restore the Security Deposit to the amount required hereunder, from time to timeFederal Bankruptcy Code. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon The application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to any obligation or default of Tenant under this Lease shall not deprive Landlord of any other rights or remedies Landlord may have or constitute a waiver by Landlord. Provided that Tenant is not in default of any of its obligations under this Lease at the amount required hereunderexpiration of the Term, from time Landlord shall refund to time. No application Tenant any portion of the Security Deposit by which Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretois then holding.

Security Deposit. The Security Deposit shall Letter of Credit. BLC Holdings shall, upon the execution of this Agreement by BLC Holdings, either (i) cause to be deposited with Landlord PSLT-BLC Holdings cash in the amount of the Security Amount (the "Security Deposit"), or (ii) cause to be delivered to PSLT-BLC Holdings a letter of credit (the "Letter of Credit") issued in favor of PSLT-BLC Holdings in the amount of the Security Amount, as security for the performance and observance by Tenant contemporaneously with BLC Holdings of the delivery by Tenant to Landlord terms, conditions and provisions of this Agreement and as security for the performance and the observance by each of the Brookdale Lessees of the terms, conditions and provisions of the Property Leases, including, without limitation, the surrender of possession of the Facilities by the Brookdale Lessees as provided in the Property Leases. Upon the occurrence and during the continuance of an Event of Default, PSLT-BLC Holdings may draw upon the Letter of Credit or apply any portion of the Security Deposit to the extent required for the payment of any sum as to which BLC Holdings or the Brookdale Lessee(s) under the Property Lease(s) to which the applicable Event of Default relates is in default or for any sum which PSLT-BLC Holdings may have expended or may be required to expend by reason of the occurrence of such Event of Default, including any damages or deficiency accrued before or after summary proceedings or other re-entry by any Provident Lessor pursuant to any Property Lease. Subject to the provisions of Paragraph 10(b) hereof, if PSLT-BLC Holdings draws upon the Letter of Credit and applies or retains any portion or all of the sum received upon such draw, or applies any portion of the Security Deposit, BLC Holdings shall forthwith take such action as is necessary to restore the face amount of the Letter of Credit to the Security Amount or pay any deficiency to PSLT-BLC Holdings such that the Security Deposit is at all times equal to the Security Amount. The Security Deposit shall be held by Landlordin a segregated bank account and shall be invested in Permitted Investments. BLC Holdings or the party posting the Security Deposit in accordance with the terms and conditions set forth in Paragraph 33(d) below shall be responsible for payment of any federal, without liability for interest, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that state or local income or other tax applicable to income earned from Permitted Investments. All interest accruing on the Security Deposit shall not be considered an advance payment held by PSLT-BLC Holdings for the account of Rent BLC Holdings or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any such other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application of party posting the Security Deposit, Tenant and shall pay be distributed to Landlord BLC Holdings or such other party on demand the amount so applied in order to restore fifteenth (15th) day after the Security Deposit to the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term end of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoeach Lease Year.

Security Deposit. The Tenant shall deposit with Landlord upon execution hereof that sum identified in the Summary as the Security Deposit shall be deposited with Landlord by Tenant contemporaneously with (the delivery by Tenant to Landlord of this Lease. The “Security Deposit shall be held by Landlord, without liability for interest, Deposit”) as security for the Tenant’s faithful performance by Tenant of Tenant’s covenants and obligations under this Leasehereunder. If Tenant fails to pay rent or other charges due hereunder (all of which, it being expressly understood that the Security Deposit shall not collectively, are defined to be considered an advance payment of Rent “Rent”), or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice otherwise defaults with respect to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term provision of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposituse, Landlord shall have no further liability for the return of such Security Deposit. Upon application of apply, or retain all or any part portion of said deposit for the Security Depositpayment of any rent or other charge in default or for the payment of any other sum to which Landlord may become obligated by reason of Tenant’s default, Tenant must upon demand restore the Security Deposit or to the amount required hereundercompensate Landlord for any loss or damage which Landlord may suffer thereby. The use, from time to time. No application application, or retention of the Security Deposit by Landlord will shall not prevent Landlord from exercising any other remedy provided hereunder or at law and shall not be deemed construed as liquidated damages. If Landlord so uses or applies all or any portion of said deposit, Tenant shall, within ten (10) days after written demand therefor, deposit cash with Landlord in an amount sufficient to have cured restore said deposit to the full amount then required of Tenant. Landlord shall not be required to keep the Security Deposit separate from its general accounts and Tenant shall not be entitled to, and Tenant hereby specifically waives any requirement that Landlord pay interest on the Security Deposit. If Tenant performs all of Tenant’s defaultobligations hereunder, the Security Deposit, or so much thereof as has not theretofore been applied by Landlord, shall be returned, without payment 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. at the expiration of the Term hereof, and after Tenant waives all provisions of Laws, now has vacated the Leased Premises. No trust or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation fiduciary relationship is created herein between Landlord and Tenant with respect to the handling or return of security depositsSecurity Deposit. The Security Deposit will be released to Tenant within thirty (30) days of If Landlord transfers the surrender of Leased Premises during the Premises to Term hereof, Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide may pay the Security Deposit to Landlord’s successor in the form of a Letter of Credit interest in accordance with Exhibit “M” attached heretoCivil Code § 1950.7 or any successor statute, in which event the transferring Landlord shall be released from all liability for the return of the Security Deposit.

Security Deposit. The Security Deposit shall be deposited Concurrently with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord Subtenant’s execution of this LeaseSublease, Subtenant shall deposit with Sublandlord the sum of $31,160.00 (the “Security Deposit”). The Security Deposit shall be held by Landlord, without liability for interest, Sublandlord as security for the faithful performance by Tenant Subtenant of Tenant’s covenants all the provisions of this Sublease to be performed or observed by Subtenant. If Subtenant defaults in its obligation to pay Rent or other sums due hereunder, or otherwise defaults with respect to any provisions of this Sublease and obligations under this Leasefails to cure such default within the applicable cure period, it being expressly understood that Sublandlord may use, apply or retain all or any portion of the Security Deposit shall not be considered an advance for the payment of Rent any rent or a measure other sum in default or for the payment of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedysum to which Sublandlord may become obligated by reason of Subtenant’s default, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy compensate Sublandlord for any other covenant loss or obligation of Tenant hereunder following the expiration of damage which Sublandlord may suffer thereby. If Sublandlord so uses or applies all or any applicable cure periods. Following any such application portion of the Security Deposit, Tenant Subtenant shall pay to Landlord on within ten (10) days after demand the therefor deposit cash with Sublandlord in an amount so applied in order sufficient to restore the Security Deposit to the full amount required thereof and Subtenant’s failure to do so shall be a material breach of this Sublease. If Subtenant performs all of Subtenant’s obligations hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord or so much thereof as has not theretofore been applied by Sublandlord, shall have no further liability for be returned, without interest, to Subtenant (or, at Sublandlord’s option, to the return last assignee, if any, of such Security Deposit. Upon application of all or any part Subtenant’s interest hereunder) following the expiration of the Security DepositTerm, Tenant must upon demand restore and after Subtenant has vacated the Security Deposit to the amount required hereunder, from time to timeSubleased Premises. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation trust relationship is created herein between Sublandlord and Subtenant with respect to the handling or return of security depositsSecurity Deposit. The Security Deposit will Sublandlord shall not be released required to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide keep the Security Deposit separate from its other accounts. Subtenant hereby waives any and all rights under and the benefits of Section 1950.7 of the California Civil Code, and all other provisions of law now in force or that become in force after the date of execution of this Sublease, to the extent the same provide that Sublandlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the form payment of a Letter Rent, to repair damage caused by Subtenant, or to clean the Subleased Premises. Sublandlord and Subtenant agree that Sublandlord may, in addition, claim those sums reasonably necessary to compensate Sublandlord for any other foreseeable or unforeseeable loss or damage caused by the act or omission of Credit in accordance with Exhibit “M” attached heretoSubtenant or Subtenant’s officers, agents, employees, independent contractors, or invitees.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with On or before the delivery by Tenant to Landlord Execution Date of this Lease. The , Tenant shall deposit with Landlord the initial installment of the Security Deposit as set forth in Section 2.2, which sum shall be held by Landlord, without liability for interest, Landlord as security for the faithful performance by Tenant of Tenant’s all of the terms, covenants and obligations under conditions of this Lease, it being expressly understood that Lease to be kept and performed by Tenant during the Term. Interest shall accrue on the Security Deposit for the benefit of Tenant and shall be paid to Tenant to the extent that Tenant is entitled to the return of the Security Deposit as provided in this Lease. Landlord shall not be considered an advance payment of Rent or required to maintain a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability separate account for the Security Deposit, but may intermingle it with other funds of Landlord; provided however, Landlord shall have no further liability keep the Security Deposit in a federally insured, interest-bearing account for the return benefit of such Security DepositTenant. Upon application If Tenant Defaults with respect to any provision of this Lease, then without notice to Tenant, Landlord may (but shall not be required to), apply all or any part of the Security DepositDeposit for the payment of any Rent or any other sum in Default. If any portion of the Security Deposit is so used or applied, then Tenant must shall, upon demand therefor, restore the Security Deposit to its original amount. So long as no default has occurred and is continuing, the amount required hereunder, from time to time. No application unapplied portion of the Security Deposit by Landlord will shall be deemed returned to have cured Tenant’s default, or, at Landlord's option, to the last assignee of Tenant's interest hereunder, within sixty (60) days following the expiration of the Term. Tenant hereby irrevocably waives and relinquishes any and all provisions rights, benefits, or protections, if any, Tenant now has, or in the future may have under any provision of Lawslaw which (a) establishes the time frame by which a landlord must refund a security deposit under a lease, now or hereinafter in force, which restrict the amount or types of claim (b) provides that a landlord may make upon claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by a tenant, or imposes upon a landlord to clean the subject premises. Tenant acknowledges and agrees that (or its successorsx) any obligation with respect to statutory time frames for the handling or return of a security deposits. The deposit are superseded by the express period identified in this Section 5.4, and (y) rather than be so limited, Landlord may claim from the Security Deposit will be released (i) any and all sums expressly identified in this Section 5.4, and (ii) any additional sums reasonably necessary to Tenant within thirty (30) days compensate Landlord for any and all losses or damages caused by Tenant's default of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms this Lease, including, but not limited to, all damages or rent due upon termination of this Lease. Notwithstanding anything to In the contrary contained hereinevent of bankruptcy or other debtor-creditor proceedings against Tenant, Tenant shall provide the Security Deposit in shall be deemed to be applied first to the form payment of a Letter Rent and other charges due Landlord for all periods prior to the filing of Credit in accordance with Exhibit “M” attached heretosuch proceedings.

Security Deposit. The Tenant agrees to deposit the Security Deposit shall be deposited with Landlord by Tenant contemporaneously with on the delivery by Tenant to Landlord of this Leasedate hereof. The Security Deposit shall be held retained by Landlord, without liability for interest, Landlord as security for the faithful performance and observance by Tenant of Tenant’s covenants and its obligations under this Lease, it being expressly understood agreed that the Security Deposit shall is not be considered an advance payment of Rent rental deposit or a measure of Tenant’s liability for damages Landlord's damages. Except as may otherwise be required by applicable law, (a) Tenant shall not be entitled to any interest on the Security Deposit, (b) Landlord shall not be obligated to hold the Security Deposit in case trust or in a separate account, and (c) Landlord shall have the right to commingle the Security Deposit with its other funds. If Tenant defaults under this Lease and such default extends beyond any applicable grace or cure period (following notice of default by Tenant. Landlord may, from time being given to timeTenant to the extent required hereunder), without prejudice to limiting any other remedyright or remedy of Landlord, use Landlord may also apply the whole or any part of the Security Deposit to the extent necessary to make good required for the payment of any arrearages of Rent or other sums payable under this Lease as to satisfy any other covenant which Tenant is in default or obligation of Tenant hereunder following the expiration on account of any applicable cure periodssum which Landlord may expend or may be required to expend by reason of Tenant's default. Following If any such application portion of the Security DepositDeposit is applied by Landlord for any such purpose, Tenant shall pay to shall, within ten (10) days after demand is made by Landlord, deposit cash with Landlord on demand the in an amount so applied in order sufficient to restore the Security Deposit to the amount required hereunder, from time to timeits original amount. If Landlord transfers its interest in Tenant shall fully and faithfully comply with all of the Complex during the term covenants and conditions of this Lease, Landlord may assign the Security Deposit shall be promptly returned to Tenant after the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part expiration date of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of Term and the surrender of the Premises to Landlord. In no event shall the Security Deposit be applied to the last monthly installment of Base Rent or Additional Rent due prior to the expiration date of the Term. In the event of a sale of the Premises, Landlord shall have the right to transfer the Security Deposit to the purchaser subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to , whereupon Landlord shall be released by Tenant from all liability for the contrary contained herein, Tenant shall provide return of the Security Deposit in and Tenant shall look solely to the form of a Letter of Credit in accordance with Exhibit “M” attached heretonew landlord for its return.

Security Deposit. The Security Deposit shall be deposited Tenant agrees to deposit with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, $198,800.00 as security for the performance by Tenant of every covenant and condition of this Lease by Tenant to be performed (the “Security Deposit”). Notwithstanding the foregoing, Landlord has waived the requirement of Tenant to deposit with Landlord the Security Deposit in the amount set forth in this Section 3.06 concurrently upon the execution of this Lease. Nevertheless, if Tenant defaults in the timely payment of the Base Rent or any Additional Rent required under this Lease on more than two (2) occasions during the Term of this Lease, then Tenant shall be required, within ten (10) days written notice from Landlord to deposit with Landlord the Security Deposit as security for Tenant’s covenants and complete performance of its obligations under this Lease, it being expressly understood that Lease and the remainder of the terms and provisions of this Section 3.06 shall be applicable to the Security Deposit. The failure by Tenant to deposit with Landlord the Security Deposit as required hereunder shall constitute a material default under this Lease and Landlord shall not be considered an advance payment required to deliver to Tenant any further notice of Rent such default or a measure allow any grace period for the cure of Tenant’s liability for damages in case such default. Said deposit may be commingled with other funds of default by TenantLandlord, and shall bear no interest. Landlord may, from time to time, without prejudice to any other remedy, use Upon the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application deposit of the Security Deposit, if Tenant shall pay default with respect to any covenant or condition of this Lease, including, but not limited to, the payment of any sum due hereunder, then Landlord on demand may use such portion of the amount Security Deposit as is necessary to cure such default. In the event Landlord so applied uses the Security Deposit in order to part or in whole, Tenant will restore the Security Deposit to the required amount required hereunder, from time upon notice of said default and failure to timedo so shall be a default under this Lease. If Landlord transfers its interest in Should Tenant comply with all of the Complex during the term covenants and conditions of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part balance thereof shall be returned to Tenant at the expiration of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security depositsTerm thereof. The Security Deposit will shall not be released to Tenant within thirty (30) days deemed an advanced payment of the surrender Rent or measure of the Premises to Landlord subject to Landlord’s damages for any deductions made default hereunder by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoTenant.

Security Deposit. The Security Deposit Tenant shall also pay to Landlord concurrently with the execution of this Lease the sum of $142, 845 to be deposited with retained by Landlord as security ("Deposit") for the faithful performance by Tenant contemporaneously with of all of the delivery by Tenant to Landlord provisions, conditions, and covenants of this Lease. The Security At no time during the Term shall Tenant construe the Deposit shall to be held by Landlord, without liability for interest, as security for rent or elect to apply the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice same to any other remedy, use sums due and payable by Tenant hereunder. In the Security Deposit to the extent necessary to make good any arrearages event of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration a default of any applicable cure periods. Following any such application of the Security Deposit, kind or nature by Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of under this Lease, Landlord may assign elect to retain the Security applicable portion of the Deposit to offset the transferee and upon assumption same against the actual loss or damage sustained, or expend so much thereof as may be necessary to cure any such default, but the liability of Tenant shall only be discharged proportionately should the Deposit be insufficient to satisfy the debts due or damages incurred by such transferee of liability for Landlord. If at any time during the Security Depositterm Landlord should use the Deposit as aforementioned, Landlord shall have no further liability for then Tenant agrees to promptly replace the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must sum expended upon demand restore the Security Deposit to the amount required hereunder, from time to timeby Landlord. No application of the Security Deposit by Landlord will Nothing contained in this Article shall require or be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect require Landlord to resort to the handling Deposit prior to exhausting any and all other rights and remedies available against Tenant nor shall anything contained herein be construed to deprive Landlord of any other remedy, whether at law, in equity, or reserved under this Lease should Landlord resort to the Deposit pursuant to this Section. Landlord shall not pay Tenant any interest on the Deposit nor be required to maintain the same separately from other funds of Landlord. Landlord shall return of security deposits. The Security the Deposit will be released or so much to Tenant within thirty (30) days thereof as has not heretofore been applied by Landlord for the purposes stated herein, without interest or other increment, upon Landlord’s determination that upon expiration of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the Lease Tenant has complied with all terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form without default of a Letter of Credit in accordance with Exhibit “M” attached heretoany nature whatsoever.

Security Deposit. The Security Deposit shall Subject to the provisions of this addendum, in lieu of the cash security deposit required to be deposited with Landlord provided by Tenant contemporaneously under the Lease (referenced in Subsection 1(g) and Section 6 of the Lease), Landlord agrees to accept from Tenant 240,000 common shares of High Plains Gas, Inc. (HPGS.OB) (the “Shares”). Tenant shall transfer ownership of the Shares to Landlord concurrently with the delivery signing of this addendum. Should the value of the Shares ever fall below $240,000 (the “Threshold Value”), as determined by the per share price at the close of trading on the Over-the-Counter Bulletin Board of NASDAQ on the business date immediately preceding the date of determination, Tenant agrees to, within one business day, transfer ownership to Landlord of this Leasesufficient additional Shares or cash to meet the Threshold Value. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by Should Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time fail to time, without prejudice to any other remedy, use the Security Deposit adhere to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Depositforegoing obligation, Landlord shall have no further liability the right to immediately convert the Shares to cash in any manner deemed reasonable by Landlord in its sole and absolute discretion. Tenant agrees that Landlord shall have the right to sell the Shares for cash and apply and use such cash under the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore terms provided for the Security Deposit under the Lease, including Paragraph 6 thereof, and further that, upon Landlord selling the Shares or a portion thereof and applying or using such cash as provided for under the Lease, Tenant shall have the obligation to immediately transfer additional shares to Landlord to meet the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s defaultThreshold Value. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation represents and warrants as follows with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty Shares (30) days of the surrender of the Premises including any Shares transferred to Landlord subject to any deductions made by Landlord pursuant to in the terms of this Lease. Notwithstanding anything to future): (a) Tenant has timely filed each statement, report, registration statement (with the contrary contained herein, Tenant shall provide the Security Deposit prospectus in the form required to be filed pursuant to Rule 424(b) of the Securities Act), definitive proxy statement, and other filing required to be filed with the Securities and Exchange Commission (“SEC”) by Tenant prior to the Effective Date (collectively, the “Tenant SEC Documents”). (b) As of their respective filing dates, the Tenant SEC Documents complied in all material respects with the requirements of the Securities Exchange Act of 1934 and the rules promulgated thereunder (the “Exchange Act”) and the Securities Act of 1933, as amended (the “Securities Act”)and none of the Tenant SEC Documents contained any untrue statement of a Letter material fact or omitted to state a material fact required to be stated therein or necessary to make the statements made therein, in light of Credit the circumstances in which they were made, not misleading, except to the extent corrected by a subsequently filed Tenant SEC Document prior to the date hereof. (c) The financial statements of Tenant, including the notes thereto, included in the Tenant SEC Documents (“Tenant Financial Statements”), complied as to form in all material respects with applicable accounting requirements and with the published rules and regulations of the SEC with respect thereto as of their respective dates, and have been prepared in accordance with Exhibit “M” attached heretogenerally accepted accounting principles applied on a basis consistent throughout the periods indicated and consistent with each other (except as may be indicated in the notes thereto or, in the case of unaudited statements included in Quarterly reports on Form 10-Q, as permitted by Form 10-Q of the SEC). (d) The Tenant Financial Statements fairly present the consolidated financial condition, operating results and cash flow of Tenant and its Subsidiaries at the dates and during the periods presented therein (subject, in the case of unaudited statements, to normal, recurring year-end adjustments). (e) The issuance and delivery of the Shares as consideration in accordance with this addendum shall be, at or prior to the Effective Date (or the date on which such Shares are delivered to Landlord if at a later time to meet the Threshold Value), duly authorized by all necessary corporate action on the part of Tenant, and, when issued at the Effective Time as contemplated hereby, such Shares will be duly and validly issued, fully paid and nonassessable. Such Shares, when so issued and delivered in accordance with the provisions of this addendum, shall be free and clear of all liens and encumbrances and adverse claims, other than restrictions on transfer created by applicable securities laws and will not have been issued in violation of their respective properties or any preemptive rights or rights of first refusal or similar rights.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord Upon execution of this Lease, Tenant shall deposit a security deposit (“Security Deposit”) in the amount set forth in ¶1 with Landlord. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by If Tenant of Tenant’s covenants is in default beyond applicable notice and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenantcure periods. Landlord may, from time can (but without any requirement to time, without prejudice to any other remedy, do so) use the Security Deposit or any portion of it to cure the default or to compensate Landlord for any damages sustained by Landlord resulting from Tenant’s default. Upon demand, Tenant shall immediately pay to Landlord a sum equal to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application portion of the Security Deposit, Tenant shall pay to Deposit expended or applied by Landlord on demand the amount so applied in order to restore the Security Deposit to its full amount. In no event will Tenant have the amount required hereunder, from time right to time. If Landlord transfers its interest in the Complex during the term apply any part of this Lease, Landlord may assign the Security Deposit to any Rent due under this Lease. Landlord’s obligations with respect to the transferee Security Deposit are those of a debtor and upon assumption not a trustee, and Landlord can commingle the Security Deposit with Landlord’s general funds. Landlord shall not be required to pay Tenant interest on the Security Deposit. Tenant hereby waives the provisions of California Civil Code Section 1950.7, and all other provisions of law now in force or which may become in force after the date of execution of this Lease that provide that Landlord may claim from its security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damages caused by such transferee the tenant, or to clean the premises or otherwise limit the application of liability for a security deposit. With respect to the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of and Tenant agree that Landlord may claim and employ the Security DepositDeposit in connection with any and all sums reasonably necessary to compensate Landlord for any loss or damage caused by or resulting from any default by Tenant pursuant to this Lease as well as any loss or damage resulting from any act or omission by Tenant or Tenant’s officers, agents, employees, independent contractors, or invitees. If Tenant must upon demand restore is not in default at the expiration or termination of this Lease and has fully complied with the provisions of ¶9, ¶14 and ¶26, Landlord shall return the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached hereto.

Security Deposit. Tenant shall deposit with Landlord, upon execution of this Lease, an amount equal to one (1) month’s Basic Monthly Rent, which shall be held by Landlord as security for the faithful performance by Tenant of all provisions, covenants and conditions of this Lease to be performed by Tenant. Said Security Deposit shall not bear interest and may be commingled with Landlord’s general funds. The Security Deposit may not be mortgaged, assigned, transferred or encumbered by Tenant and any such attempted act on the part of Tenant shall be deposited with Landlord by Tenant contemporaneously with the delivery without force and effect. If, at any time, any sum payable by Tenant to Landlord shall be overdue and unpaid (beyond applicable notice and cure periods), or if Tenant fails to keep and perform any other provision, covenant or condition of this Lease. The Security Deposit shall be held by LandlordLease (beyond applicable notice and cure periods), without liability for interest, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to timeat its option, without prejudice to appropriate and apply all or any other remedy, use portion of the Security Deposit to the extent necessary to make good payment of any arrearages of Rent such overdue sum or to satisfy compensate Landlord for all loss or damage suffered by Landlord due to such breach. Should any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application portion of the Security DepositDeposit be so appropriated and applied by Landlord, Tenant shall shall, upon written demand by Landlord, pay to Landlord on demand the within ten (10) days an amount so applied in order sufficient to restore the Security Deposit to the amount required hereunderoriginal amount. Should Tenant comply with all of the provisions, from time to time. If Landlord transfers its interest in the Complex during the term covenants, and conditions of this LeaseLease and promptly pay, Landlord may assign when due, all sums payable by Tenant, the Security Deposit to or the transferee balance remaining after the appropriations described herein and upon assumption by such transferee less the standard post move out cleaning charge of liability for the Security Deposit$300.00, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released returned to Tenant within thirty (30) days of after the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms termination of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide Landlord may deliver the Security Deposit to any person acquiring or succeeding to Landlord’s interest in this Lease, and the form original or preceding Landlord shall thereupon be discharged from any further liability with respect to such amount. The rights and remedies granted to Landlord pursuant to this Article are in addition to all other remedies of a Letter of Credit in accordance with Exhibit “M” attached heretoLandlord hereunder.

Security Deposit. The Security Deposit in the form of the Letter of Credit shall be deposited with Landlord by Tenant contemporaneously with the delivery delivered by Tenant to Landlord as specified in Section 6.A and shall be held by Landlord as security for the performance of Tenant’s obligations under this Lease. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall is not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenantdamages. Landlord may, from time to timetime while an event of default by Tenant exists after notice and opportunity to cure (if applicable) and remains uncured, without prejudice to any other remedy, draw on the Letter of Credit as therein provided and use all or a portion of the funds thereby received to satisfy past due Rent, cure any uncured default by Tenant, or repay Landlord for damages and charges for which Tenant is legally liable under this Lease or resulting from Tenant’s breach of this Lease. If Landlord so draws on the Letter of Credit, Tenant shall on demand restore the face amount of the Letter of Credit to its original amount and such use by Landlord of the funds drawn from the Letter of Credit shall not constitute a cure of the existing event of default until such time as the entire amount owing to Landlord is paid in full and the Letter of Credit face amount is fully restored. Provided that Tenant has performed all of its obligations hereunder, Landlord shall return the original Letter of Credit (subject to any prior drafts thereon) to Tenant within 30 days after the later to occur of: (A) the date Tenant surrenders possession of the Premises to Landlord in accordance with this Lease; or (B) the Expiration Date; provided, however, that Tenant does hereby authorize Landlord to withhold from any funds held by Landlord hereunder as the Security Deposit all amounts allowed by Law and the amount reasonably anticipated by Landlord to be owed by Tenant as a result of an underpayment of the OE Payment for the final year of the Term. To the fullest extent necessary to make good any arrearages permitted by applicable Law, Tenant agrees that the provisions of Rent or to satisfy any other covenant or obligation this Article 6 shall supersede and replace all statutory rights of Tenant hereunder following under applicable Law regarding the expiration retention, application or return of any applicable cure periods. 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 the amount required hereunder, from time to timesecurity deposits. If Landlord transfers its interest in the Complex during the term of this LeasePremises, Landlord may shall assign the Security Deposit to the transferee and, following the assignment and upon assumption by such transferee the delivery to Tenant of liability an acknowledgement of the transferee’s responsibility for the Security DepositDeposit if required by Law, Landlord shall have no further liability for the return of such the Security Deposit. Upon application of all or any part of Landlord shall not be required to keep the Security Deposit, Tenant must upon demand restore funds constituting the Security Deposit to the amount required hereunder(i.e., from time to time. No application of the Security Deposit any funds received by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that as a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form result of a draft on the Letter of Credit in accordance with Exhibit “M” attached heretoCredit) separate from its other accounts.

Security Deposit. The ▇▇▇▇▇▇ has paid the sum of $ as a deposit, receipt of which is acknowledged by Landlord as the Security Deposit for this Tenancy and the first monthly installment of rent. [Note: Tenants 62 or over are limited by law to one (1) month’s security deposit plus first month’s rent, Tenants under age 62 are limited by law to two (2) months security deposit plus first month’s rent.]The deposit sums shall be deposited with refundable as permitted by law upon ▇▇▇▇▇▇’s vacating the premises, leaving the premises in broom clean condition and returning the keys to the Landlord by Tenant contemporaneously with at the delivery by Tenant to Landlord of address designated in this Lease. The Landlord shall hold Tenant’s Security Deposit in escrow as may be required by law. Under the law, Tenant may be entitled to interest on such security deposit. If such is the case, interest shall be held paid to Tenant at the prescribed interest rate set forth by Landlord, without liability for interest, as security for the performance by law. If Tenant fails to make any payments of Tenant’s covenants and obligations rent or defaults under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term obligations of this Lease, Landlord may assign use the Security Deposit security in payment of such rent or in payment of any sums Landlord may be forced to spend because of Tenant's default, as permitted by law. If Landlord does so use the transferee security, then he shall notify Tenant in writing of the amount so used along with an itemized list detailing the nature and upon assumption by such transferee dollar amount of liability for the Security Depositdamages. If at the end of the term of the Lease Tenant has made all payments of rent required and fully complied with all the other obligations under the Lease, then Landlord shall return the full amount of the security to Tenant together with any interest that may be required by law within the time frame allowable by law: within 30 days after termination of the tenancy or within 15 days of Landlord receiving Tenant’s written notice of ▇▇▇▇▇▇’s forwarding address, whichever is later. Tenant understands and agrees Tenant shall not have no further liability for the return of such Security Deposit. Upon application of all or option to apply any part of the Security Deposit, Deposit towards ▇▇▇▇▇▇’s obligation to pay the last month’s rent. Tenant must upon demand restore is still obligated to pay the Security Deposit final month’s rental payment to Landlord at the amount required hereunder, from time to timeaddress listed above for paying rent. No application of the Security Deposit by Landlord will be deemed to have cured (Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached hereto.Initials)

Security Deposit. 3.7.1 The Lessee for the due and faithful performance of its obligations hereunder, shall prior to the Commencement Date, submit an interest free Security Deposit to the DMRC for a sum equivalent to one hundred percent of first year’s Lease Fee(i.e. Lease fee + maintenance fee, if any + utility area, if any + Parking area, if any) (as per Clauses of Policy Document ), for the said Leased Space(s) with a validity of one year. The security deposit shall be kept valid on a rolling basis till the end of lease period plus 180 days and the amount of the Security Deposits shall be escalated in accordance with the escalation as per clause Policy Document. Further, security deposit shall also be submitted for advance lease fee of additional area including mezzanine area. This Security Deposit shall be deposited submitted within 30 days of issue of the LOA (excluding the date of issue of LOA). In case successful Applicant fails to submit the same as advised in the LOA within 30 (thirty) days time period (excluding the date of issue of LOA), same can also be submitted with Landlord following Penal interest:- (a) Delay upto 15 days - 15% per annum. (b) Delay beyond 15 days - 20% per annum. The aforementioned interest is excluding GST and shall be charged for the entire period from the date of issue of LOA and on the balance amount remaining unpaid as per the LOA. This amount of penal interest shall be submitted in the form of Demand Draft/ Pay Order/RTGS/NEFT only, in favour of DMRC Ltd. & payable at New Delhi. If the lessee fails to submit the required aforesaid Security Deposit required in terms and conditions of LOA, within 60 days of issue of LOA, the LOA may be cancelled, action shall be taken as per Undertaking for tender Security Declaration and any other amount submitted may be forfeited by Tenant contemporaneously with the delivery by Tenant to Landlord of this LeaseDMRC. The Security Deposit shall be held by Landlordin the form of Bank Guarantee/ Demand Draft/ Pay Order in favour of “Delhi Metro Rail Corporation Ltd.”, without liability drawn on any scheduled commercial bank (except regional, rural & local area bank) acceptable to DMRC and payable at New Delhi. The Bank Guarantee for interest, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment renewed after every year for a sum equivalent to one year’s recurring fee (lease fee + maintenance if any + utility area if any + Parking area, if any)of applicable Lease Fee for that year(i.e. Lease fee + maintenance fee if any+ Parking area, if any) with a validity of Rent or a measure one year. The Bank Guarantee must be issued on the Structured Financial Messaging System (SFMS) platform. A separate copy of Tenantthe BG will invariably sent by the issuing Bank to the Employer’s liability bank through SFMS. The details of Employer’s Bank are as under: The Bank Guarantee issued on the SFMS platform shall only be acceptable to DMRC. Following codes are to be used by issuing bank for damages the purpose of Confirmation and amendment in case Bank Guarantees: - (i) For the purpose of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use issuance and amendment of Bank Guarantee: - (ii) For the purpose of confirmation of issuance and amendment of Bank Guarantee: - 3.7.2 The interest free Electrical Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied be payable by lessee in order to restore the Security Deposit to the amount required hereunder, from time to time. If Landlord transfers its interest accordance with DERC guidelines and it shall be paid in the Complex during the term form of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security depositsDD/BG. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Performa for Electrical Security Deposit in the form o\f Bank Guarantee is enclosed as Schedule-E of a Letter of Credit in accordance with Exhibit “M” attached heretoDLA document.

Security Deposit. The During the Original Term, Subtenant shall maintain a Security Deposit, herein so-called, with Sublandlord in the amount of the LOC Amount (hereinafter defined). No Security Deposit shall be deposited with Landlord by Tenant contemporaneously with required during the delivery by Tenant to Landlord Extension Term. Upon the execution of this Lease. The Security Deposit shall be held by LandlordSublease, without liability for interest, and as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit under this Sublease, Subtenant shall deliver to Sublandlord an executed original irrevocable standby letter of credit (“LOC”) in the LOC Amount, in favor of Sublandlord. The initial LOC shall have a term commencing no later than January 1, 2005 and expiring no earlier than December 31, 2005 (subject to the LOC extension requirement hereinafter specified). The LOC may be drawn upon and used upon each occurrence of any Event of Default (as defined in Section 14 of this Sublease) which remains uncured after applicable notice and cure periods. Sublandlord may use all or part of the LOC to pay past due Basic Rent, Additional Payments or other payments due Sublandlord under this Sublease, or to cure any other defaults of Subtenant under this Sublease without prejudice to any other remedy provided by law or herein. The LOC shall be issued in a form and by a national banking association or other financial institution acceptable to Sublandlord. With respect to any Event of Default occurring during the Original Term of the Sublease and which remains uncured following applicable notice and cure periods, Sublandlord shall have the right to proceed against the total LOC Amount at the sole discretion of Sublandlord regarding items and the amounts to be drawn upon relating to any Event of Default by Subtenant; provided, however, that any drawn amounts not properly applied by Sublandlord in accordance with this Section 3.5 shall be considered promptly paid by Sublandlord to Subtenant, or at Subtenant’s option deposited and maintained by Sublandlord in a separate bank account in the financial institution which issued the LOC on account of Subtenant’s Security Deposit obligations hereunder. Interest shall be paid on any portion of the LOC converted to cash pursuant to the provisions hereof. In the event of the sale of the Leased Premises, Sublandlord shall transfer the Security Deposit, both the LOC and any cash proceeds thereof, to the vendee, provided such vendee agrees in a writing delivered to Subtenant to accept and hold the same in compliance with the terms hereof. Sublandlord shall return the LOC and any amount held in cash by Sublandlord as part of the security deposit promptly upon the expiration of the Original Term; provided, Subtenant is not in default under this Sublease. The “LOC Amount” shall be (i) for Sublease Years 1 through and including Sublease Year 7, an advance payment amount equal to Two Million Six Hundred Sixty-Five Thousand Nine Hundred Sixty-Six Dollars ($2,665,966.00) and (ii) for Sublease Years 8 through the expiration of Rent or a measure the Original Term, an amount equal to One Million Three Hundred Thirty-Two Thousand Nine Hundred Eighty-Three Dollars ($1,332,983.00); provided Subtenant remains in continuous compliance with the financial covenants contained in paragraphs 1, 10 through 13 of Tenant’s liability for damages in case of default the Compliance Certificate attached as Exhibit A to the Seventh Amendment to Second Amended and Restated Credit Agreement dated May 23, 2002 by Tenantand between Horizon Health Corporation and its subsidiaries and ▇.▇. Landlord may▇▇▇▇▇▇ ▇▇▇▇▇ Bank and certain other financial institutions as lenders, as the same may be amended from time to time, without prejudice to or any comparable financial covenants that may be contained in a credit facility that replaces such credit facility or such other remedyfinancial covenants as Subtenant and Sublandlord may agree upon (“Financial Covenants”); and, use in the Security Deposit event at any time after the commencement of Sublease Year 8 Subtenant is not in compliance with the Financial Covenants for two consecutive fiscal quarters, then the LOC Amount will be restored to the extent necessary LOC Amount required pursuant to make good any arrearages clause (i) immediately preceding until Subtenant has achieved four consecutive quarters of Rent compliance with the Financial Covenants. Failure to so restore the LOC Amount shall constitute an Event of Default. The LOC shall contain the following terms and conditions: (a) The LOC shall be extended without further amendment from year to year unless, at least 30 days prior to its then current expiration date, the issuing bank notifies Sublandlord, in writing, that the issuing bank intends not to renew the LOC. (i) In the event the LOC is not extended at least 30 days prior to its then stated expiration date and the Original Term of the Sublease has not expired or will not expire prior to satisfy any other covenant or obligation of Tenant hereunder following the expiration date of any applicable cure periods. Following any such application the then LOC, then (unless Subtenant has, prior to drafting by Sublandlord, deposited with Sublandlord a substitute LOC in the amount of the Security Deposit, Tenant ) such event shall pay constitute an Event of Default under this Sublease and Sublandlord shall be allowed to Landlord on demand draft upon the issuing bank to draw the full amount so applied in order to restore the Security Deposit to the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security DepositLOC, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything and provisions hereinabove set forth. (ii) The LOC shall be subject to the contrary contained herein“Uniform Customs and Practices for Documentary Credits (1993 Revision), Tenant International Chamber of Commerce Publication No. 500. (iii) The amount of the LOC shall provide be payable at sight to Sublandlord within ten (10) business days of presentation of the Security Deposit sight draft, in whole or partial drawings; upon presentation to the issuer of the following documents: (x) Sublandlord’s written demand for payment making reference to the date and number of the LOC; (y) Sublandlord’s signed certificate that the amount drawn is required to satisfy an Event of Default which has remained uncured beyond applicable notice and grace periods, as set forth in the form Sublease, or that Subtenant has failed to deposit cash or a substitute LOC as required under paragraph (ii) above; and (z) The original LOC for endorsement of the amount paid and if the draft is for the full amount the LOC is to be surrendered to the issuer. Sublandlord shall have the right to assign and transfer its right and interests in the LOC only to a Letter purchaser of Credit in accordance with Exhibit “M” attached heretothe Leased Premises; provided such purchaser issues a written receipt therefor delivered to Subtenant.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord Upon ▇▇▇▇▇▇’s execution of this Lease, Tenant shall deposit with Landlord the Security Deposit, as shown on the Lease Summary. The Security Deposit shall be held by Landlord, without liability for interest, serve as security for the prompt, full, and faithful performance by Tenant of Tenant’s covenants and its obligations under this Lease. In the event that ▇▇▇▇▇▇ is in Default hereunder, it being expressly understood or in the event that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Tenant owes any amounts to Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following upon the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign use or apply the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all whole or any part of the Security Deposit, Tenant must upon demand restore Deposit for the Security Deposit to the amount required payment of Tenant’s obligations hereunder, from time to time. No The use or application of the Security Deposit by or any portion thereof shall not prevent Landlord will from exercising any other right or remedy provided hereunder or under any Law and shall not be deemed to have cured Tenant’s defaultconstrued as liquidated damages. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict In the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to event the handling or return of security deposits. The Security Deposit will is reduced by such use or application, Tenant shall deposit with Landlord, within ten (10) days after notice, an amount sufficient to restore the full amount of the Security Deposit. Landlord shall not be released required to keep the Security Deposit separate from Landlord’s general funds or pay interest on the Security Deposit. Provided Tenant has performed all of its obligations under this Lease, any remaining portion of the Security Deposit shall be returned to Tenant within thirty (30) days of subsequent to the surrender of Expiration Date. No trust or fiduciary relationship is created herein between Landlord and Tenant with respect to the Security Deposit. If Landlord transfers the Premises to Landlord subject to any deductions made by Landlord pursuant to during the terms Term of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide Landlord may pay the Security Deposit to Landlord’s successor-in-interest, in which event the form transferring Landlord shall be released from all liability for the return of a Letter of Credit in accordance with Exhibit “M” attached heretothe Security Deposit.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord Upon Tenant’s execution of this Lease. The , Tenant shall deposit with Landlord, cash in the amount of the Security Deposit shall be held by Landlordset forth in the Principal Lease Provisions, without liability for interest, as security for to secure the performance by Tenant of Tenant’s covenants and its obligations under this Lease, it being expressly understood that including without limitation Tenant’s obligations (i) to pay Basic Monthly Rent and Additional Rent (as defined below), (ii) to repair damages to the Premises and/or the Project caused by Tenant or Tenant’s agents, employees, contractors, licensees, and invitees (collectively, “Tenant’s Invitees”), (iii) to surrender the Premises in the condition required by Paragraph 19, below, and (iv) to remedy any other defaults by Tenant in the performance of any of its obligations under this Lease. 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 shall not be considered an advance for the payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. any amount due Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy reimburse or compensate Landlord for any other covenant liability, expense, loss or obligation of Tenant hereunder following the expiration of damage which Landlord may suffer or incur by reason thereof. If Landlord uses or applies all or any applicable cure periods. Following any such application portion of the Security Deposit, Tenant shall pay to within twenty (20) days after written request therefor deposit monies with Landlord on demand the amount so applied in order sufficient to restore said Security Deposit to the full amount required by this Lease. Should the Permitted Use be amended to accommodate a material change in the business of Tenant or to accommodate a subtenant or assignee, Landlord shall have the right to increase the Security Deposit to the amount extent necessary, in Landlord’s reasonable judgment, to account for any increased wear and tear that the Premises may suffer as a result thereof. Landlord shall not be required hereunder, to keep the Security Deposit separate from time to timeits general accounts. If Landlord transfers its interest in Within sixty (60) days after the Complex during the term expiration or termination of this Lease, Landlord may assign shall return that portion of the Security Deposit to the transferee and upon assumption not used or applied by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security DepositLandlord. Upon application of all or any No part of the Security DepositDeposit shall be considered to be held in trust, to earn interest or to be prepayment for any monies to be paid by Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of under this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached hereto.

Security Deposit. The Security Deposit shall be deposited with Landlord paid by Tenant contemporaneously with the delivery by Tenant to Landlord within five (5) business days after execution of this Lease. The Security Deposit Lease and shall be held by Landlord, without liability for interest, Landlord as security for the performance by Tenant of Tenant’s its covenants and agreements under this Lease. In the event that cash is, at any time, held as the Security Deposit hereunder, the holder thereof shall hold such cash in an interest bearing segregated account for the benefit of the Tenant subject only to the terms and conditions of this Lease. Upon the occurrence of any default hereunder and the expiration of any grace period for the cure thereof without such cure, Landlord may use such portion of the Security Deposit as is necessary to cure such default. In the event of any such draw down of the Security deposit, Tenant shall replace the amount drawn down within ten (10) days of receipt of notice thereof, by delivery of a sight draft Letter of credit in substantially the form of the Letter of Credit initially delivered hereunder or cash in the amount drawn. At any time Landlord is holding cash as the Security Deposit hereunder, Tenant shall have the right, in accordance with the terms hereof, to replace such cash with a sight draft Letter of Credit from a bank acceptable to Landlord and which provides that draw downs may be made solely upon submission of a statement from a representative of Landlord stating that Tenant is in default under its Lease beyond any grace period and Landlord is entitled to the amount claimed. Any Letter of Credit shall have a term of not less than one (1) year and a replacement Letter of Credit from a bank acceptable to Landlord shall be delivered to Landlord at least thirty (30) days prior to any expiration of any Letter of Credit or Landlord may draw down the full proceeds of the Letter of Credit and hold the cash as collateral security for Tenant's obligations under this Lease. Upon replacement of cash with a Letter of Credit meeting the Letter of Credit requirements set forth above, it being expressly understood that the Security Deposit Landlord shall not be considered an advance payment of Rent or a measure of return the cash to Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers shall transfer its interest in the Complex during the term of this LeasePremises, Landlord may shall assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposittransferee. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application Any balance of the Security Deposit remaining at the end of the Term after deduction of amounts owed by Landlord will Tenant hereunder shall be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released returned to Tenant within thirty (30) days of after the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms expiration of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached hereto.

Security Deposit. The Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the Security Deposit Deposit, which shall be deposited with held by Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord secure Tenant’s performance of its obligations under this Lease. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall is not be considered an advance payment of Rent or a measure or limit of TenantLandlord’s liability for damages in case upon an Event of default by TenantDefault (as defined herein). Landlord may, from time to time, time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to the extent necessary perform any obligation Tenant fails to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodsperform 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 the amount required its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and T▇▇▇▇▇’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain the Security Deposit until such time after the expiration of the Term that Landlord is able to reconcile and confirm all amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., L▇▇▇▇▇▇▇ cannot reconcile and confirm T▇▇▇▇▇ has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax bill from all applicable taxing authorities at the time to timeof such expiration). The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Complex during Premises and the term of transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord thereafter shall have no further liability for the return of such the Security Deposit. Upon application The rights and obligations of all or Landlord and Tenant under this Section 6 are subject to any part of other requirements and conditions imposed by Laws applicable to the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached hereto.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord Upon execution of this Lease. The , Tenant shall pay to Landlord the Security Deposit shall be held by Landlord, without liability for interest, specified in Paragraph 2.d. above as security for the Tenant's performance by Tenant of all of Tenant’s 's covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord's damages upon Tenant's default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant's failure to perform any of its covenants or obligations hereunder, it being expressly understood that any use of the Security Deposit shall not be considered an advance payment of Rent constitute a bar or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice defense to any other remedyof Landlord's remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, use Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to an amount equal to one hundred ten percent (110%) of the extent necessary amount specified in Paragraph 2.d. as the same may have been increased by prior applications of this Paragraph 6. Tenant's failure to make good any arrearages such payment to Landlord within five (5) days of Rent or to satisfy any other covenant or obligation Landlord's notice shall constitute an Event of Default. If Tenant hereunder following is not in default at the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term or termination of this Lease, Landlord may assign shall return to Tenant the Security Deposit or the balance thereof then held by Landlord; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to the transferee and upon assumption by such transferee of liability Tenant for the Security Deposit, Landlord Deposit unless and only to the extent such holder or purchaser shall have no further liability for actually received the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretosame.

Security Deposit. The Security Deposit Tenant shall pay to Landlord a good-faith deposit in the amount of $ . Parties agree that this entire lease agreement is null and void until good-faith deposit is paid to Landlord. This good-faith deposit shall be retained by Landlord as damages if Tenant (a) fails to submit a properly executed & notarized co-signer responsibility form by an income-earning adult family member or friend within seven days of signing this lease agreement and (b) fails to follow through and lease the Premises according to the terms of this lease agreement. The good-faith deposit shall convert into the Tenant’s security deposit after 1st month’s rent is paid. Landlord shall hold deposit as security for the protection of the Premises from any damages, to be deposited with Landlord by into an account at US Bank, ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇ in account #14580-▇▇▇▇▇▇▇, and as security for Tenant’s other obligations under this Lease (“Security Deposit”). Tenant contemporaneously with the delivery by Tenant shall be responsible to Landlord for a minimum turnover fee of $150 in all cases, which shall be payable out of the Security Deposit. This minimum turnover fee represents an advance-cleaning fee for cleaning the Premises upon expiration of this Leaselease. The cleaning fee is only for normal maid service and normal professional carpet cleaning. Any additional services needed to clean the unit further will be taken out of the Security Deposit. Tenant shall not be entitled to any interest that may accrue on the Security Deposit. The Security Deposit shall bear no interest. Landlord shall be held by Landlord, without liability for interest, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that entitled to co-mingle the Security Deposit with Landlord’s other funds in said account above. If the Premises is rented to more than one person, Tenants agree to work out the details concerning division of any refund among themselves. Landlord may pay the refund to any individual identified as “Tenant” on page 1 of this lease, and in doing so, satisfies its legal obligation for return of the deposit. Tenant shall clean Premises, paying particular attention to the stove, refrigerator, bathrooms, and walls. Move-in inspection sheet will determine condition. All debris, rubbish, and discards are removed and placed in dumpster. No stickers, scratches, or holes in walls, ceilings, or floors. Tenant must return all apartment & mailbox keys to Landlord. There is a $50 charge per key that is not be considered an advance payment of Rent or returned upon moving out. If Tenant fails to perform as stated above, and Landlord is forced to clean and/or repair premises and/or to restore the Premises to a measure of rentable condition, then Landlord shall have the right to charge reasonable fees and amounts specified within this lease agreement to clean, repair and/or restore the Premises, and to retain Tenant’s liability Security Deposit according to the fee schedules set forth herein. Although Landlord may assess these charges against the Security Deposit, nothing in this section shall prohibit landlord from fixing or otherwise repairing damage caused by Tenant and invoicing Tenant for said amounts, plus reasonable charges for Landlord’s time and expense, on a monthly basis. If the Premises are not left in the same or substantially the same condition as reflected in the move-in inspection form, Tenant shall be responsible to Landlord for all charges set forth herein for administrative work, cleaning, painting, and other damages in case to the Premises at the end of default the Lease Term, which shall be due and payable by Tenant. Tenant to Landlord may, from time to time, without prejudice to any other remedy, use at the end of the Term and payable out of the remainder of the Security Deposit (less the minimum turnover fee and minimum painting fee provided for above and herein). Landlord and Tenant acknowledge that the Uniform Residential Landlord and Tenant Act (“Act”) (Fayette County Ordinance #98-84 / KRS 383), in its definition of security deposit, makes mention of “damage” and “ordinary wear and tear” but does not explicitly define either concept. Landlord and Tenant further acknowledge that the Act fails to even offer examples of what findings constitute “damage” and “ordinary wear and tear.” In light of such ambiguity / lack of clarity, Landlord and Tenant desire to avoid potential dispute at the end of the lease term, specifically with respect to the extent necessary Premises’ interior paint, regarding what findings fall within the undefined concept of “ordinary wear and tear” and what findings cross the threshold beyond “ordinary wear and tear.” Thus, Landlord and Tenant agree in advance that, specifically with respect to make good any arrearages the Premises’ interior paint, the following graduated painting fee schedule shall be utilized at the end of Rent the lease term rather than trying to determine wall by wall and room by room what conditions constitute “ordinary wear and tear.” Tenant shall be responsible to Landlord for a minimum painting fee $100 if length of tenancy is one year or less, $175 if tenancy is between one and two years, and $250 if tenancy is greater than two years. In all cases, the minimum painting fee as set forth above shall be payable out of the Security Deposit. Should Tenant be responsible for damage and/or loss of value to satisfy any other covenant or obligation the Premises greater than the value of Tenant hereunder following the expiration of any applicable cure periods. Following any such application remainder of the Security Deposit, less the minimum turnover fee and minimum painting fee provided for above, Tenant shall pay agrees to make payment to Landlord on demand the amount so applied in order to restore the Security Deposit to the amount required hereunder, from time to time. If for such loss within fourteen (14) days after presentation of a ▇▇▇▇ by Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the damage and/or loss. The Security Deposit, Landlord shall have no further liability less the minimum turnover fee and minimum painting fee provided for the return of such Security Deposit. Upon application of all above, less any charges if applicable as set forth above and herein, less rent or other late fees or other charges due and owing, and less any part of the Security Depositunpaid utilities, Tenant must upon demand restore the Security Deposit is to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant refunded within thirty (30) days of after Tenant vacates the surrender of Premises, provided no damage occurs, the Premises to Landlord subject to any deductions made by Landlord pursuant to have been left in good condition, appearance and repair, and all of the terms of this Lease have been fulfilled. Any unpaid late fees, return-check charges, or other fees or charges accumulated over the period of this or any prior Lease on this property by this Tenant, at Landlord’s sole discretion, and without notice by Landlord and without Landlord waiving the right to collect such fees monthly or at the termination of the Lease, may be deducted by Landlord from the Security Deposit at the termination of the Lease instead being collected monthly from Tenant. Notwithstanding anything Tenant authorizes the release of the Security Deposit to Landlord for satisfaction and payment of any and all expenses incurred by Landlord due to Tenant’s non-compliance with the terms and conditions of this Lease, as well as any late fees not paid in advance by Tenant. Once Tenant notifies Landlord of intent to not renew lease agreement, Tenant agrees to show Premises to prospective renters for Landlord over the last 90 days of the lease agreement. Tenant gives Landlord authorization to share contact information (e-mail and/or phone number) to prospective renters for the purpose of arranging a time to show Premises. Over the last 90 days of lease agreement Tenant agrees to set aside 15 minutes one day / week show Premises to prospective renters. No portion of the deposit may be applied as Rent by Tenant for payment of any rent due to Landlord and the full monthly Rent shall be received in hand on or before the 1st day of every month including the last month of occupancy. Tenant shall submit to Landlord a forwarding address within seven (7) days after vacating the premises for the purpose of returning the deposit or for any other reason that might occur. At least seven (7) days prior to the contrary contained hereinTermination Date, Tenant shall provide schedule a move-out walk through with Landlord, which shall occur after Tenant has vacated the Security Deposit in property. Failure to schedule such walk through or appear for the form move-out walk through shall be deemed a waiver o f Tenant’s right to object to Landlord’s assessment of a Letter damages or costs against Tenant and assessment of Credit in accordance with Exhibit “M” attached hereto.the security deposit against such damages or costs; and Tenant shall accept L andlord’s decision of the deposit refund or forfeiture according to the provisions stated herein. Should Tenant be responsible for damage and or loss of value to the premises greater than the value of the deposit, Tenant agrees to make payment to Landlord for such loss within fourteen

Security Deposit. The Security Deposit shall (a) Tenant has deposited with or to be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The sum designated as Security Deposit shall be held by Landlord, without liability for interestin the Lease, as security for the full and faithful performance by Tenant of Tenant’s covenants and all obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following under the expiration of any applicable cure periods. Following any such application of Lease or in connection with the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to the amount required hereunder, from time to timeLease. If Landlord transfers its interest Tenant is in Default under the Complex during the term of this Lease, Landlord may assign use, apply or retain the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all whole or any part of the Security DepositDeposit for the payment of (i) any Rent or any other sums of money which Tenant may not have paid or which may become due after the occurrence of a Default, Tenant must upon demand restore (ii) any sum expended by Landlord on Tenant's behalf in accordance with the Security Deposit provisions of the Lease, or (iii) any sum which the Landlord may expend or be required to expend by reason of such Default, including any ages or deficiency in the amount required hereunderreletting of the Demised Premises in connection with Article XV hereof. The use, from time to time. No application retention of the Security Deposit or portion thereof by Landlord will shall not prevent Landlord from exercising any other right remedy provided for hereunder or at law and shall not operate a limitation on any recovery to which Landlord may otherwise be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord entitled. (or its successorsb) any obligation with respect to the handling or return of security deposits. The Security Deposit will shall bear no interest and Landlord shall be released entitled to commingle the Security Deposit with Landlord's other funds. (c) If Tenant shall fully and faithfully comply with all of the provisions of the Lease, the Security Deposit and any balance thereof shall be returned to Tenant within thirty after the Expiration Date or upon any later date after which Tenant has vacated the Demised Premises. (30d) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of Anything in this Lease. Notwithstanding anything Section 4.04 to the contrary contained hereinnotwithstanding, Tenant in the event any Mortgagee shall provide become mortgagee-in-possession or take title by foreclosure or deed in lieu of foreclosure, then, in either of such events, such Mortgagee obligation to return the Security Deposit in under this Section 4.04 shall be limited to the form amount of a Letter of Credit in accordance with Exhibit “M” attached heretothe Security Deposit which is actually transferred from Landlord to such Mortgagee.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously Simultaneously with the delivery by Tenant to Landlord execution of this LeaseLease by Tenant, Tenant shall provide Landlord with a security deposit in an amount equal to $9,081.83 or an amount to be adjusted per the final measurement of the Premises subject to Section 1.1 (the “Security Deposit”). The Security Deposit shall be held by Landlord, without liability for interest, as constitute security for payment of Base Rent and Additional Rent and for any and all other obligations of Tenant under this Lease. If Tenant defaults, beyond any applicable cure period, with respect to any covenant or condition of this Lease, including but not limited to the performance by Tenant payment of Tenant’s covenants and obligations Base Rent, Additional Rent or any other payment due under this Lease, it being expressly understood that and the Security Deposit shall not be considered an advance payment obligation of Rent Tenant to maintain the Premises and deliver possession thereof back to Landlord at the expiration or a measure earlier termination of the Lease Term in the condition required herein, then Landlord may (without any waiver of Tenant’s liability for damages in case default being deemed to have occurred) apply all or any part of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent payment of any sum in default beyond any applicable cure period, or any other sum which Landlord may be required or deem necessary to make good any arrearages spend or incur by reason of Rent Tenant’s default, or to satisfy in part or in whole any other covenant or obligation damages suffered by Landlord as a result of Tenant hereunder following the expiration of Tenant’s default which continues to exist beyond any applicable cure periodsperiod. Following any In the event of such application of the Security Depositapplication, Tenant shall pay to promptly deposit with Landlord on demand the amount so applied in order necessary to restore the Security Deposit to the full amount required hereunderset forth above. The parties expressly acknowledge and agree that the Security Deposit is not an advance payment of Base Rent or Additional Rent, from time to timenor a measure of Landlord’s damages in the event of any default by Tenant. If Landlord transfers its interest in Tenant shall have fully complied with all of the Complex during the term covenants and conditions of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Depositbut not otherwise, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit then held by Landlord will shall be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released repaid to Tenant within thirty (30) days of after the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms expiration or sooner termination of this Lease. Notwithstanding anything In the event of a sale or transfer of Landlord’s estate or interest in the Building, Landlord shall transfer the Security Deposit to the contrary contained hereinpurchaser or transferee, and upon such transfer Landlord shall be considered released by Tenant shall provide from all liability for the return of the Security Deposit, provided Landlord’s purchaser or transferee acknowledges said transfer of the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretowriting.

Security Deposit. The Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the Security Deposit (as defined in the Basic Lease Information), which shall be deposited with held by Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord secure Tenant’s performance of its obligations under this Lease. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall is not be considered an advance payment of Rent or a measure or limit of TenantLandlord’s liability for damages upon an Event of Default (as defined in case of default by TenantSection 17). Landlord may, at Landlord’s discretion, from time to time, time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to the extent necessary perform any obligation Tenant fails to make good any arrearages of Rent perform hereunder or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodsin connection with Landlord’s remedies under this Lease. 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. Subject to the amount requirements of, and conditions imposed by, Laws applicable to security deposits under commercial leases, Landlord shall, within the time required hereunderby applicable Law, from time return to timeTenant the portion of the Security Deposit remaining after deducting all damages, charges and other amounts permitted by Law. 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 as a result of any breach of this Lease by Tenant. Unless required otherwise by applicable Law, the Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Complex during the term of this LeasePremises, Landlord may assign the Security Deposit to the transferee and, upon such transfer (and upon assumption the delivery to Tenant of an acknowledgement by any such transferee of liability the transferee’s responsibility for the Security Deposit), Landlord thereafter shall have no further liability for the return of such the Security Deposit. Upon application Notwithstanding the foregoing, Landlord and Tenant have agreed that so long as there is no uncured Event of all or any part Default under the terms, covenants and conditions of this Lease after Tenant has paid the Security Depositthirty-six (36) months of full Rent hereunder, Landlord shall provide Tenant must upon demand restore a credit of one-half of the Security Deposit to the amount required hereunderthirty-seventh (37th) installment of full Rent due under this Lease. In the event there is an uncured Event of Default under the terms of this Lease after Landlord has provided Tenant with the credit set forth above, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Lawsshall, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of written demand from Landlord, restore the surrender full amount of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in which shall be retained by Landlord for the form balance of a Letter of Credit in accordance with Exhibit “M” attached heretothe Term.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, Landlord as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease. If Tenant fails to pay Rent, it being expressly understood that the or otherwise an Event of Default occurs under this Lease, Landlord may use, apply or retain all or any portion of said Security Deposit shall not be considered an advance for the payment of Rent any amount already due Landlord, for Rents which will be due in the future, and/or to reimburse or a measure of Tenant’s liability compensate Landlord for damages in case of default any liability, expense, loss or damage which Landlord may suffer or incur by Tenantreason thereof. If Landlord may, from time to time, without prejudice to uses or applies all or any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application portion of the Security Deposit, Tenant shall pay to within 10 days after written request therefor deposit monies with Landlord on demand the amount so applied in order sufficient to restore said Security Deposit to the full amount required by this Lease. Should the Permitted Use be amended to accommodate a material change in the business of Tenant or to accommodate a sublessee or assignee, Landlord shall have the right to increase the Security Deposit to the amount extent necessary, in Landlord’s reasonable judgment, to account for any increased wear and tear that the Premises may suffer as a result thereof. Landlord may use, apply or retain all or any portion of the Security Deposit (i) first, for Tenant’s repair obligations, including without limitation, the obligation to restore the Premises to the condition required hereunderunder this Lease, from time (ii) second, to timethe payment of any rent or other sum in default or for the payment of any other sum to which Tenant may become obligated by reason of Tenant’s default, and (iii) third, to compensate Landlord for any loss or damage which Landlord may suffer thereby. 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 transfers as shall be sufficient to cause the Security Deposit to be at a commercially reasonable level based on such change in financial condition. Landlord shall not be required to keep the Security Deposit separate from its interest in general accounts. Within 60 days after the Complex during the term expiration or termination of this Lease, Landlord shall return that portion of the Security Deposit not used or applied by Landlord. Landlord shall upon written request provide Tenant with an accounting showing how that portion of the Security Deposit that was not returned was applied. No part of the Security Deposit shall be considered to be held in trust, to bear interest or to be prepayment for any monies to be paid by Tenant under this Lease (including, without limitation, Base Rent). Tenant hereby waives California Civil Code Section 1950.7, and all other provisions of law, now or hereafter in force, which may assign provide that Landlord can 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 or any officer, employee or agent of Tenant. Provided that Tenant has not breached any Lease terms and conditions beyond any applicable notice and cure periods and has delivered all rental payments to Landlord not later than the fifth (5th) day of each month, the Landlord shall credit: (i) $99,359.86 towards the Base Rent (and only the Base Rent) due for the twenty-fifth month of the Lease term, which is January 2024 and; (ii) $105,410.88 towards Base Rent (and only the Base Rent) due for the forty-ninth (49th) month of the Lease term, which is January 2026. After such credit, the Security Deposit to be held by Landlord shall be $300,311.94. Notwithstanding the transferee and foregoing, upon assumption by such transferee any monetary Event of liability for Default, Tenant shall be required to immediately replenish the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit by Landlord, to the amount required hereunderoriginal amount, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter as indicated in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached hereto.Section 1.F.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously Contemporaneously with the delivery by Tenant to Landlord execution of this Lease. The , Tenant will deposit a security deposit (the "Security Deposit shall be held by Landlord, without liability for interest, Deposit") with landlord in the amount shown in the Basic Lease Information as security for the performance by Tenant of Tenant’s Tenants covenants and obligations under this Lease, it being expressly understood that the obligations. The Security Deposit shall will not bear interest and will not be considered an advance payment of Rent rental or a measure of Tenant’s liability for Landlord's damages in case of a default by Tenant. If Tenant defaults in the performance of any of its covenants and obligations under this lease, including but not limited to its obligations to pay all rent. Landlord may, from time to time, without prejudice to any other remedy, use . apply the Security Deposit to the extent necessary to make good any arrearages of Rent in rent or to satisfy any other covenant past due sum owing by Tenant or obligation to any damage. injury, expense or liability caused to Landlord by such default, whether such damages accrue before or after termination of Tenant hereunder following the expiration of any applicable cure periodsthis Lease. Following any such application of the Security Deposit, Tenant shall must pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Any remaining balance of the amount required hereunderSecurity Deposit will be returned to Tenant after the termination of this Lease and after delivery of possession of the Premises to Landlord, from time to timeif Tenant is not then in whether actually received or not. If upon first default under this lease if Landlord transfers its assigns its' interest in the Complex Premises during the term of this LeaseTerm, Landlord may assign the Security Deposit to the transferee assignee and upon assumption by such transferee of liability for the Security Deposit, thereafter Landlord shall will have no further liability for the return of such the Security Deposit. Upon application of all or any part , it being agreed that Tenant will look solely to the new Landlord for the return of the Security Deposit. Regardless of any assignment of this Lease by Tenant, Tenant must upon demand restore Landlord may return the Security Deposit to the amount required hereunder, from time original Tenant unless Landlord receives evidence satisfactory to time. No application it of an assignment of the Security Deposit by Landlord will be deemed right to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide receive the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoDeposit.

Security Deposit. The Security Deposit shall be 9.1. Tenant has deposited with Landlord the sum set forth in Section 2.6 (the “Security Deposit”), which sum shall be held by Landlord as security for the faithful performance by Tenant contemporaneously with of all of the delivery terms, covenants and conditions of this Lease to be kept and performed by Tenant to Landlord during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. The If Tenant defaults with respect to any provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit shall be held by Landlord, without liability for interest, as security for the performance payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by Tenant reason of Tenant’s covenants and obligations under this Lease, it being expressly understood that default. If any portion of the Security Deposit shall not be considered is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order 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. The provisions of this Article 9 shall survive the expiration or earlier termination of this Lease. TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, AS THE SAME MAY BE AMENDED FROM TIME TO TIME. 9.2. In the event of 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 all periods prior to the filing of such proceedings. 9.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, 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. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the 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. 9.5. [Intentionally omitted] 9.6. If the Security Deposit shall be in cash, Landlord shall deposit the Security Deposit into an interest-bearing account at a banking organization selected by Landlord. All interest and/or dividends, if any, accruing on the Security Deposit, less a one percent (1%) per annum charge on the Security Deposit for administrative expenses, shall be added to, held and included within the term Security Deposit and, provided that no Default shall have occurred and be continuing, shall accrue to the account of Tenant. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 9.7. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument 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 the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount required hereunderof 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 timetime 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 legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall 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) six (6) 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; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. 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 Complex during Premises, then Tenant shall at Tenant’s expense, within five Business Days after receiving a request from Landlord, deliver (and, if the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Depositissuer requires, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit consent to) an amendment to the amount L/C Security naming Landlord’s grantee as substitute beneficiary. If the required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter changes while L/C Security is in force, which restrict then Tenant shall deliver (and, if the amount or types of claim that issuer requires, Landlord shall consent to) a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect corresponding amendment to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoL/C Security.

Security Deposit. The When delivered to Landlord upon execution of this Lease, the Security Deposit shall remain on deposit with Landlord during the Term of this Lease and any extensions thereof as security for the payment of Rent and the full and faithful performance by Tenant of the covenants and conditions of this Lease. In the event of any default, the Security Deposit shall be deposited with retained by Landlord by Tenant contemporaneously and may be applied toward damages arising from such default. Said deposit shall not be construed as liquidated damages. Upon yielding of the Premises at the termination of this Lease and in compliance with the delivery by Tenant to Landlord terms and provisions of this Lease. The , and provided no default has occurred, the Security Deposit shall be held by Landlord, without liability for interest, as security for returned to the performance Tenant. No interest shall be payable on the Security Deposit. It is understood by Tenant that Landlord shall always have the right to apply the Security Deposit, or a portion thereof, to the curing of Tenant’s covenants and obligations any Tenant default that may exist. Should Landlord convey its interest under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application of the Security Deposit, or the part or portion thereof not previously applied, shall be turned over to Landlord’s grantees or assignees; and Tenant hereby releases Landlord from any liability with respect to the Security Deposit and Tenant agrees to look solely to such grantee or assignee for the return of the Security Deposit and this provision shall pay also apply to subsequent grantees or assignees. Should the entire Security Deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of unpaid Gross Rent or other sums due and payable to Landlord on by Tenant, then Tenant shall, upon written demand the by Landlord, remit to Landlord a sufficient amount so applied in order cash to restore the Security Deposit to the amount required hereunderoriginal sum deposited, from time and Tenant’s failure to time. If Landlord transfers its interest in the Complex during the term do so shall constitute a breach of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee Lease for nonpayment of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoRent.

Security Deposit. The Security Deposit shall be Concurrently with the execution of this Sublease, ▇▇▇▇▇▇ has deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord sum of this Lease$____________________________________ ("Security Deposit"), which shall not exceed one month's rental. The Security Deposit shall be held retained by Landlord, without liability for interest, Landlord as security for the payment by Tenant of the rents herein agreed upon for the faithful performance by Tenant of Tenant’s covenants the terms and obligations under conditions of this Lease, it being expressly understood that and to cover any damage to the Premises or to fixtures and equipment therein for which Tenant is liable. Landlord may apply the total Security Deposit, or any portion thereof, towards the payment of the rents and all other sums payable by Tenant under this Sublease. Tenant shall remain liable for any amount by which the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenantinsufficient. Landlord may, from time to time, without prejudice to may pursue any other remedyappropriate legal or equitable rights and remedies. Any portion of the Security Deposit (including any interest which may be due under applicable law or regulations) which is not applied as aforesaid shall be refunded to the Tenant within forty-five (45) days after Tenant has vacated the Premises (or as otherwise may be required by applicable law or regulations). If there is found to be damage which the Security Deposit would properly defray, use Landlord shall notify Tenant, in writing, or otherwise as required by law, of Landlord's intention to withhold a specified amount of the Security Deposit to defray expenses of correcting the extent necessary damage. Landlord shall provide Tenant with an itemized statement of repairs and other uses to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore which the Security Deposit is to be applied. Security Deposit funds received by Landlord shall be deposited promptly upon receipt in a banking or savings institution within the amount District of Columbia in an account which shall be devoted exclusively to security deposits and which shall accrue interest at a rate not less than that required hereunder, from time to timeby the Housing Regulations of the District of Columbia. If Landlord transfers its interest in Tenant shall not apply the Complex Security Deposit or any portion of it towards the payment of rent for any month during the term of this LeaseSublease or any renewals or extensions thereof. If ▇▇▇▇▇▇ withdraws from this Sublease prior to approval of the Board of Directors of the Cooperative or prior to the commencement of the Term of this Sublease, Landlord may assign the Security Deposit shall be used, to the transferee and upon assumption extent necessary, to cover costs incurred or damages sustained by such transferee of liability for the Security Deposit, Landlord shall have no further liability for in connection with the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretowithdrawal.

Security Deposit. The Security Deposit shall be 9.1. Tenant has deposited with Landlord by Tenant contemporaneously with (in cash or the delivery by Tenant to Landlord Letter of this Lease. The Credit, as defined in Section 43.14 hereof) the sum set forth in Section 2.1.8 (the "Security Deposit") which Security Deposit shall be held by Landlord, without liability for interest, Landlord as security for the performance by Tenant of Tenant’s covenants all of the terms, covenants, and obligations under conditions of this Lease, it being expressly understood that Lease to be kept and performed by Tenant during the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by TenantTerm. Landlord may, from time to time, without prejudice If Tenant defaults with respect to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit(but shall not be required to) use, Landlord shall have no further liability for the return of such Security Deposit. Upon application of apply or retain all or any part of the Security DepositDeposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default. If any portion of the Security Deposit is so used or applied, Tenant must shall, upon 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. Landlord shall keep any cash constituting the amount required hereunder, Security Deposit separate from its general fund in an interest-bearing account. Tenant shall be entitled to any interest on the Security Deposit (to be credited to and added to the Security Deposit) at the rate as may be actually earned thereon by Landlord from time to time. No application Tenant shall provide Landlord or its designee with such information and instruments (including, without limitation, Tenant's taxpayer identification number) as Landlord may reasonably require in order to maintain the Security Deposit in an interest-bearing account. 9.2. In the event that upon Landlord's review of the Hazardous Materials List (as defined in Section 40.1.1 hereof) Landlord or any of Landlord's insurers or lenders reasonably determines that Tenant's use of Hazardous Materials at the Demised Premises increases the risk of damage to or contamination of the Demised Premises, the Building or the Land, then upon Tenant's receipt of written notice of such determination from the Landlord, Tenant shall deposit an additional amount with the Landlord as Landlord may reasonably determine, which amount shall be added to and treated as part of the Security Deposit. 9.3. So long as no default exists or is continuing, on the first day of the first full calendar month which is forty-eight (48) months after the Term Commencement Date, the Security Deposit shall be reduced to any amount equal to the quotient of (a) the Basic Annual Rent then in effect divided by Landlord will (b) 12. 9.4. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to have cured Tenant’s defaultbe applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 9.5. Tenant waives all provisions Landlord may deliver the Security Deposit to any purchaser of Laws, now or hereinafter Landlord's interest in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) Demised Premises and thereupon Landlord shall be discharged from any obligation further liability with respect to the handling Security Deposit. This provision shall also apply to any subsequent transfers. 9.6. If Tenant shall fully perform every provision of this Lease to be performed by Tenant, the Security Deposit, or return of security deposits. The Security Deposit will any balance thereof, shall be released returned to Tenant (or, at Landlord's option, to the last assignee of Tenant's interest hereunder) within thirty forty-five (3045) days of after the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms expiration or earlier termination of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached hereto.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, Landlord as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the . The Security Deposit shall is not be considered an advance payment of Rent rental deposit or a measure of TenantLandlord’s liability for damages in case of default Tenant’s default. Upon each occurrence of an Event of Default (hereinafter defined), Landlord may use all or part of the Security Deposit to pay delinquent payments due under this Lease, and the cost of any damage, injury, expense or liability caused by Tenant. Landlord may, from time to timesuch Event of Default, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent remedy provided herein or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodsprovided by law. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to that will restore the Security Deposit to its original amount. Any such restoration payment which is not paid within ten days after Landlord’s written demand therefor shall bear interest from the amount date of such written demand until paid at the lesser of fifteen percent or the maximum lawful rate of interest. The parties agree that such interest represents a fair and reasonable estimate of the costs that Landlord will incur by reason of such late payment by Tenant. The provision for such interest shall be in addition to all of Landlord’s other rights and remedies hereunder or at law and shall not be construed as a penalty. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee; no interest shall accrue thereon. If Tenant shall perform all of its obligations under this Lease and return the Premises to Landlord at the end of the Lease Term in the condition required hereunderupon surrender pursuant to the terms of this Lease, from time Landlord shall return all of the Security Deposit remaining after deducting all damages, charges and other amounts permitted by law to timeTenant within thirty (30) days after the end of the Lease Term. Landlord and Tenant agree that such deductions shall include all damages and losses that Landlord has suffered or that Landlord reasonably estimates that it will suffer as a result of any breach of this Lease by Tenant. If Landlord transfers its interest in the Complex during the term of this Lease, Premises Landlord may shall assign the Security Deposit to the transferee and, upon such transfer and upon assumption by such transferee the delivery to Tenant of liability an acknowledgement of the transferee’s responsibility for the Security DepositDeposit as provided by law, Landlord thereafter shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached hereto.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord Upon ▇▇▇▇▇▇’s execution of this Lease. The , Tenant shall American Assets Trust – Lease Form 1/31/2023 deposit with Landlord good funds in the amount of the Security Deposit shall be held by Landlord(if any) set forth in the Principal Lease Provisions, without liability for interest, as security for to secure the performance by Tenant of Tenant’s covenants and its obligations under this Lease, it being expressly understood that including without limitation Tenant's obligations (i) to pay Basic Monthly Rent and Additional Rent (as defined below), (ii) to repair damages to the Premises and/or the Project caused by Tenant or Tenant’s Invitees, (iii) to surrender the Premises in the condition required by Paragraph 23.1, below, and (iv) to remedy any other defaults by Tenant in the performance of any of its obligations under this Lease. If Tenant commits any default under this Lease, Landlord may, at its election, use the Security Deposit to cure such default, and to compensate Landlord for all damages actually suffered by Landlord which are directly attributable to such default, including, without limitation, reasonable attorneys' fees and costs incurred by Landlord. Upon demand by Landlord, Tenant shall promptly pay to Landlord a sum equal to any portion of the Security Deposit so used by Landlord, in order to maintain the Security Deposit in the amount set forth in the Principal Lease Provisions above (subject to increase as set forth below). Should Landlord choose to apply the Security Deposit against damages suffered by it, such application shall not be considered establish or signify a waiver of any other rights or remedies of Landlord hereunder, nor shall such application constitute an advance payment of accord and satisfaction. If the Basic Monthly Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord mayshall, from time to time, without prejudice increase during the Term, then, upon demand by Landlord, Tenant shall deposit with Landlord cash in an amount necessary to any other remedy, use increase the Security Deposit such that it shall at all times bear the same proportion to the extent necessary then‑current Basic Monthly Rent as the initial Security Deposit bears to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder the initial Basic Monthly Rent. Within 45 days following the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term Expiration Date or earlier termination of this Lease, Landlord may assign the Security Deposit shall deliver to the transferee and upon assumption by such transferee of liability for the Security DepositTenant, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or at ▇▇▇▇▇▇'s last known address, any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application portion of the Security Deposit not used by Landlord, as provided in this Paragraph. Landlord will be deemed may commingle the Security Deposit (and any advance Rent received by Landlord) with Landlord's other funds and Landlord shall not pay interest on such Security Deposit to have cured Tenant. Tenant waives the provisions of California Civil Code Section 1950.7 (or any successor statute), and any similar principle of Laws with respect to Landlord’s ability to apply the Security Deposit against future rent damages. Furthermore, upon lawful termination of the Lease as a result of Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect Landlord shall be entitled to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide immediately apply the Security Deposit against damages computed under California Civil Code Section 1951.2, without the requirement that Tenant first be given notice and an opportunity to cure, and notwithstanding that the damages have not been finally adjudicated by a court. Tenant may not assign or encumber Tenant's residual rights in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoSecurity Deposit without the consent by Landlord.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, Landlord as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the . The Security Deposit shall is not be considered an advance payment of Rent rental deposit or a measure of TenantLandlord’s liability for damages in case of default Tenant’s default. Upon each occurrence of an Event of Default (hereinafter defined), Landlord may use all or part of the Security Deposit to pay delinquent payments due under this Lease, and the cost of any damage, injury, expense or liability caused by Tenant. Landlord may, from time to timesuch Event of Default, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent remedy provided herein or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodsprovided by law. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to that will restore the Security Deposit to the amount required hereunder, from time to timeits original amount. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign 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 shall be paid to the transferee and upon assumption by such transferee of liability for the Security Deposit, Tenant when Tenant’s obligations under this Lease have been completely fulfilled. Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, be released from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will upon transfer of this Lease and the Premises to a person or entity assuming Landlord’s obligations under this Paragraph 5. Landlord and Tenant hereby acknowledge that Landlord currently holds a certain security deposit in the amount of $53,147 (“Other Security Deposit”) with respect to the Premises under the Prior Lease, and upon the Commencement Date of this Lease, the Other Security Deposit, or portion thereof as described herein, shall be released transferred by Landlord and shall become the Security Deposit under this Lease, except as otherwise provided for herein. Notwithstanding the foregoing, prior to the Commencement Date of this Lease, Landlord and Tenant within thirty (30) days of the surrender shall perform a walkthrough of the Premises for purposes of inspecting the Premises for any damages which are Tenant’s responsibility to repair, at Tenant’s sole cost and expense, under the Other Lease as agreed upon by the parties during such inspection of the Premises. Landlord subject to any deductions made shall require that such damages shall be cured by Landlord pursuant Tenant prior to the terms Commencement Date of this Lease. Notwithstanding anything If Tenant fails to perform such repairs prior to the contrary contained hereinCommencement Date as agreed upon by the parties during such inspection of the Premises, Tenant then Landlord shall provide repair such damage and deduct the costs thereof from the Other Security Deposit. The difference between the remaining balance of the Other Security Deposit and the amount of the Security Deposit in as set forth on the form first page of a Letter the Lease shall be paid by Tenant to Landlord upon demand so that the Security Deposit under this Lease equals the amount as set forth on the first page of Credit in accordance with Exhibit “M” attached heretothe Lease.

Security Deposit. The Security Deposit Tenant shall be deposited deposit with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord amount set forth in Article 1 (“Security Deposit”), upon Tenant’s execution and submission of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, serve as security for the prompt, full and faithful performance by Tenant of Tenant’s covenants the terms and obligations under provisions of this Lease. If Tenant commits a Default, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. owes any amounts to Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following upon the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term or earlier termination of this Lease, Landlord may assign use or apply the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all whole or any part of the Security Deposit, Tenant must upon demand restore Deposit for the Security Deposit to the amount required payment of Tenant’s obligations hereunder, from time to time. No The use or application of the Security Deposit by or any portion thereof shall not prevent Landlord will from exercising any other right or remedy provided hereunder or under any Law and shall not be deemed to have cured Tenant’s defaultconstrued as liquidated damages. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict In the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to event the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made is reduced by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained hereinsuch use or application, Tenant shall provide deposit with Landlord within ten (10) days after notice, an amount sufficient to restore the full amount of the Security Deposit. Landlord shall not be required to keep the Security Deposit separate from Landlord’s general funds or pay interest on the Security Deposit. Any remaining portion of the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within sixty (60) Table of Contents days after Tenant (or such assignee) has vacated the form of a Letter of Credit Premises in accordance with Exhibit “M” attached heretoArticle 23. If the Premises shall be expanded at any time, or if the Term shall be extended at an increased rate of Rent, the Security Deposit shall thereupon be proportionately increased. Tenant shall not assign, pledge or otherwise transfer any interest in the Security Deposit except as part of an assignment of this Lease approved by Landlord under Article 13, and any attempt to do so shall be null and void.

Security Deposit. The Security Deposit shall be deposited Concurrently with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord Tenant's execution of this Lease, Tenant shall deposit the Security Deposit with Landlord. The Security Deposit shall be held by Landlord, without liability for interest, made as security for the faithful performance by Tenant of Tenant’s covenants and all of its obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice If Tenant defaults with respect to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term provisions of this Lease, Landlord may assign including, but not limited to, the Security Deposit provisions relating to the transferee payment of Rent, the removal of property and upon assumption by such transferee the repair of liability for the Security Depositresultant damage, Landlord may, with notice to Tenant, but shall have no further liability for the return of such Security Deposit. Upon application of not be required to, apply all or any part of the Security DepositDeposit for the payment of any Rent or any other sum in default and Tenant shall, Tenant must upon demand therefor, restore the Security Deposit to the amount required hereunder, from time to timeits original amount. No application Any unapplied portion of the Security Deposit by Landlord will shall be deemed returned to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in forceor, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect at Landlord's option, to the handling or return last assignee of security deposits. The Security Deposit will be released to Tenant Tenant's interest hereunder, within thirty (30) days following the expiration of the surrender Occupancy Period. Tenant shall be entitled to interest earned on the Security Deposit. Upon Tenant being entitled to reduce the Security Deposit as provided hereinabove, all interest accrued to date on the Security Deposit shall be paid to Tenant. Thereafter, interest shall accrue on the Security Deposit for the benefit of Tenant and shall be paid to Tenant when Tenant is entitled to the return of the Premises Security Deposit as provided in this Lease. Tenant hereby irrevocably waives and relinquishes any and all rights, benefits, or protections, if any, Tenant now has, or in the future may have under any provision of law which (i) establishes the time frame by which a landlord must refund a security deposit under a lease, or (ii) provides that a landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by a tenant, or to clean the subject premises. Tenant acknowledges and agrees that (A) any statutory time frames for the return of a security deposit are superseded by the express period identified in this Section 2.4, above, and (B) rather than be so limited, Landlord subject may claim from the Security Deposit (i) any and all sums expressly identified in this Section 2.4, above, and (ii) any additional sums reasonably necessary to compensate Landlord for any deductions made and all losses or damages caused by Landlord pursuant to the terms Tenant's default of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form including, but not limited to, all damages or rent due upon termination of a Letter of Credit in accordance with Exhibit “M” attached heretothis Lease.

Security Deposit. The Security Deposit (a) Tenant shall be deposited with pay Landlord upon execution and delivery hereof by Tenant contemporaneously with the delivery by Tenant to Landlord amount of this Lease. The $ (the “Security Deposit shall be held by Landlord, without liability for interest, Deposit”) as security for the full and faithful performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that each of the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default terms hereof by Tenant. Landlord may, from time shall [not] be required to time, without prejudice to any other remedy, use keep the Security Deposit separate from its general funds and Tenant shall [not] be entitled to the extent necessary to make good interest thereon. If an Event of Default occurs, Landlord may, but shall not be required to, use, apply or retain all or any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application part of the Security DepositDeposit for the payment of any Rent or any other sum in default, or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of such Event of Default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of such Event of Default, including, without limitation, costs and attorneys’ fees incurred by Landlord to recover possession of the Premises. If any portion of the Security Deposit is so used or applied, Tenant shall pay to shall, upon demand therefor, deposit cash with Landlord on demand the in an amount so applied in order sufficient to restore the Security Deposit to its original amount and Tenant’s failure to do so shall constitute an Event of Default. (b) Tenant acknowledges that Landlord has the amount required hereunder, from time right to time. If Landlord transfers transfer or mortgage its interest in the Complex during the term of Building and in this Lease, and Tenant agrees that in the event of any such transfer or mortgage, Landlord may shall have the right to transfer or assign the Security Deposit to the transferee and upon assumption by or mortgagee. Upon such transferee transfer or assignment of liability for the Security Deposit, Landlord shall have no further be deemed released by Tenant from all liability or obligation for the return of the Security Deposit and Tenant shall look solely to such Security Deposit. Upon application of all transferee or any part mortgagee for the return of the Security Deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, Tenant must upon demand restore the Security Deposit or any balance thereof shall be returned to Tenant (or, at Landlord’s option, to the amount required last assignee of Tenant’s interest hereunder, from time to time. No application ) within 30 days following the expiration of the Security Deposit by Landlord will be deemed Term and surrender of possession of the Premises to have cured Tenant’s defaultLandlord. Tenant hereby waives all provisions of Lawslaw, now or hereinafter hereafter in force, which restrict the amount or types of provide that Landlord may claim that a landlord may make upon from a security deposit or imposes upon a landlord (or its successors) any obligation with respect only those sums reasonably necessary to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit remedy defaults in the form payment of a Letter Rent, to repair damage caused by Tenant or to clean the Premises; rather, 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 Credit in accordance with Exhibit “M” attached heretoTenant or any officer, employee, agent or invitee of Tenant.

Security Deposit. The Security Deposit shall be SECTION 29.1 Tenant has deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord sum of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, One Million and 00/100 Dollars ($1,000,000.00) as security for the full and faithful performance of every provision of this Lease to be performed by Tenant (all or any part of Tenant’s covenants and obligations under such amount, the "Security Deposit"). If an Event of Default shall have occurred with respect to any provision of this Lease, it being expressly understood that including but not limited to the provisions relating to the payment of Fixed Rent and Additional Rent, Landlord may use, apply or retain all or any part of this Security Deposit shall not be considered an advance for the payment of any Fixed or Additional Rent or a measure any other sum in default or for the payment of Tenant’s liability any other amount which Landlord may spend or become obligated to spend by reason of such Event of Default, or to compensate Landlord for damages in case any other loss, cost or damage which Landlord may suffer by reason of default by Tenantsuch Event of Default. Landlord may, from time to time, without prejudice to any other remedy, shall give Tenant notice contemporaneously with such use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration application of any applicable cure periods. Following any such application portion of the Security Deposit. Tenant shall, Tenant shall pay to within five (5) days after the giving of such notice, deposit with Landlord on demand the cash in an amount so applied in order sufficient to restore the Security Deposit to the amount then required pursuant to the terms of this Article 29 (Tenant's obligation to make such payment shall be deemed a requirement that Tenant pay an item of Additional Rent) and Tenant's failure to do so shall be a breach of this Lease. Landlord shall not, unless otherwise required by Legal Requirements, 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 Legal Requirements as a bookkeeping and administrative charge. Tenant shall not assign or encumber any part of the Security Deposit, and no assignment or encumbrance by Tenant of all of any part of the Security Deposit shall be binding upon Landlord, whether made prior to, during, or after the Term. Landlord shall not be required to exhaust its remedies against Tenant or against the Security Deposit before having recourse to any other form of security held by Landlord and recourse by Landlord to any Security Deposit shall not affect any remedies of Landlord which are provided in this Lease or which are available to Landlord in law or in equity. If Tenant shall fully and faithfully perform every covenant and provision of this Lease to be performed and observed by Tenant, the Security Deposit or any balance thereof shall be returned to Tenant 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. In the event the Building is sold, Landlord shall transfer the Security Deposit to the new owner and Landlord shall thereupon be released by Tenant from all liability for the return of said Security Deposit; and Tenant agrees to look to the new owner solely for the return of the Security Deposit. A lease of the entire Building shall be deemed a transfer within the meaning of the foregoing sentence. Landlord shall use reasonable efforts to notify or cause Tenant to be notified in the event of any transfer of the Building. SECTION 29.2 In lieu of a cash deposit, Tenant may deliver to Landlord a clean, irrevocable, non-documentary and unconditional Letter of Credit issued by and drawn upon any commercial bank, trust company, national banking association or savings and loan association having offices for banking purposes in the City of New York and which is a member of the New York Clearinghouse Association (the "Issuing Bank") and which (or the parent company of which) shall have outstanding unsecured, uninsured and unguaranteed indebtedness, or shall have issued a letter of credit or other credit facility that constitutes the primary security for any outstanding indebtedness (which is otherwise uninsured and unguaranteed), that is then rated, without regard to qualification of such rating by symbols such as "+" or "-" or numerical notation, "Aa" or better by Mood▇'▇ ▇▇▇estors Service and "AA" or better by Standard & Poor's Corporation, and has combined capital, surplus and undivided profits of not less than $500,000,000.00, which Letter of Credit shall have a term of not less than one year, be in form and content satisfactory to Landlord (and substantially as shown on Exhibit D attached hereto and made a part hereof), be for the account of Landlord, be in the amount of the Security Deposit then required to be deposited hereunder, from time and be fully transferable by Landlord to timesuccessor owners of the Building without the payment of any fees or charges, it being agreed that if any such fees or charges shall be so imposed, then such fees or charges, shall be paid by Tenant. If Landlord transfers its interest in the Complex The Letter of Credit shall provide that it shall be deemed automatically renewed, without amendment, for consecutive periods of one year each thereafter during the term of this Lease, unless the Issuing Bank sends notice (the "Non-Renewal Notice") to Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Depositcertified mail, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Depositreceipt requested, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within not less than thirty (30) days next preceding the then expiration date of the surrender Letter of Credit that it elects not to have such Letter of Credit renewed. Additionally, the Letter of Credit shall provide that Landlord shall have the right, exercisable within twenty (20) days of its receipt of the Premises Non-Renewal Notice, by sight draft on the Issuing Bank, to Landlord subject receive the monies represented by the existing Letter of Credit and to any deductions made by Landlord hold such proceeds pursuant to the terms of this Section 29.2 as a cash security pending the replacement of such Letter of Credit. If an Event of Default shall have occurred and be continuing with respect to any provision of this Lease. Notwithstanding anything , including but not limited to the contrary contained hereinprovisions relating to the payment of Fixed Rent and Additional Rent, Tenant shall provide Landlord may apply or retain the Security Deposit in whole or any part of the form of a cash security so deposited or may notify the Issuing Bank and thereupon receive all the monies represented by the Letter of Credit and use, apply, or retain the whole or any part of such proceeds, as provided in accordance with Exhibit “M” attached heretothis Section 29.2. Any portion of the cash proceeds of the Letter of Credit not so used or applied by Landlord in satisfaction of the obligations of Tenant as to which such Event of Default shall have occurred shall be deposited by Landlord and retained in an interest-bearing account as provided in Section 29.

Security Deposit. The Security Deposit shall be Concurrently with the execution of this Lease, Tenant has deposited with Landlord the Security Deposit set forth in Subparagraph l(m) above to secure the full and faithful performance by Tenant contemporaneously with the delivery by Tenant to Landlord of this LeaseTenant's covenants and obligations hereunder. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by Tenant of Tenant’s covenants not bear interest and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent rent or a measure of Tenant’s liability for Landlord's damages in case of default by Tenant. Landlord shall have the right to commingle the Security Deposit with the other funds of Landlord. In the event Tenant defaults in the performance of any of the covenants and obligations to be performed by it hereunder, including, but not limited to the payment of all rent to be paid hereunder, Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent in rent or any sum as to satisfy which Tenant is in default and any other covenant damage, injury, expense or obligation liability caused to Landlord by such default, including any damages or deficiency in the reletting of Tenant hereunder following the expiration Premises, whether such damages or deficiency may accrue before or after termination of any applicable cure periodsthis Lease and including reasonable attorneys' fees incurred by Landlord in connection with such default or damage. 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 the amount required its original amount. If Tenant is not then in default hereunder, from time any remaining balance of the Security Deposit shall be returned by Landlord to timeTenant upon termination of this Lease and after delivery of the entire possession of the Premises to Landlord in accordance with this Lease. If Landlord transfers assigns its interest in the Complex Premises during the term of this LeaseTerm, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Depositassignee and, thereafter, Landlord shall have no further liability for the return of such the Security Deposit, and Tenant agrees to look solely to the new landlord for the return of the Security Deposit. Upon application The provisions of all the preceding sentence shall apply to each and every transfer or assignment made of the Security Deposit to a new landlord. Tenant agrees that it will not assign or encumber or attempt to assign or encumber the moneys deposited herein as security, and that Landlord and its successors and assigns shall not be bound by any such actual or attempted assignment or encumbrance. Regardless of any assignment of this Lease by Tenant, Landlord may return the Security Deposit to the original Tenant in the absence of evidence satisfactory to Landlord to an assignment of the right to receive the Security Deposit or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretobalance thereof.

Security Deposit. The Security Deposit shall be deposited Concurrently with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord Tenant’s execution of this Lease. The , Tenant shall deposit with Landlord a cash sum in the amount of the Security Deposit stated in the Summary of Basic Lease Information. Landlord shall be held by Landlord, without liability for interest, hold the Security Deposit as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease. If Tenant defaults on any provision of this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedyremedy it has, use apply all or part of the Security Deposit to: (a) any Rent or other sum in default; (b) any amount that Landlord may spend or become obligated to spend in exercising Landlord’s rights following a default by Tenant (as provided below); or (c) any expense, loss, or damage that Landlord may suffer because of Tenant’s default. Tenant waives the provisions of California Civil Code Section 1950.7, and all other provisions of law now in force or that become in force after the date of execution of this Lease, that 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. Landlord and Tenant agree that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other foreseeable or unforeseeable loss or damage caused by the act or omission of Tenant or Tenant’s officers, agents, employees, independent contractors, or invitees. If Landlord disposes of its interest in the Premises, Landlord shall deliver or credit the Security Deposit to Landlord’s successor in interest in the extent necessary Premises and thereupon be relieved of further responsibility with respect to make good the Security Deposit. If Landlord applies any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application portion of the Security Deposit, Tenant shall pay to shall, within thirty (30) days after demand by Landlord, deposit with Landlord on demand the an amount so applied in order sufficient to restore the Security Deposit to the amount required hereunder, from time its original amount. Tenant is not entitled to time. If Landlord transfers its any interest in the Complex during the term of this Lease, Landlord may assign on the Security Deposit to the transferee and upon assumption by such transferee of liability for may commingle the Security Deposit, Landlord shall have no further liability for the return Deposit with other funds of such Security DepositLandlord. Upon application of all or any part The unused portion of the Security Deposit, Tenant must upon demand restore the Security Deposit if any, shall be returned to the amount required hereunder, from time to time. No application last known address of Tenant or the Security Deposit by Landlord will be deemed to have cured last assignee of Tenant’s default. Tenant waives all provisions of Lawsinterest under this Lease, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days following the expiration or termination of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoLease Term.

Security Deposit. The Security Deposit in the amount set forth in Section 1.I above shall be deposited with delivered to Landlord upon the execution of this Lease by Tenant contemporaneously with and shall be held by Landlord (without liability for interest, except to the delivery extent required by Tenant to Landlord Law) as security for the performance of Tenant’s obligations under this Lease. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall is not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenantdamages. Landlord may, from time to timetime while an event of default remains uncured, without prejudice to any other remedy, use all or a portion of the Security Deposit to the extent necessary to make good satisfy past due Rent, cure any arrearages uncured default by Tenant, or repay Landlord for damages and charges for which Tenant is legally liable under this Lease or resulting from Tenant’s breach of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodsthis Lease. Following any such application of If Landlord uses 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 and such use by Landlord of the Security Deposit shall not constitute a cure of the existing event of default until such time as the entire amount owing to Landlord is paid in full and the Security Deposit is fully restored. Provided that Tenant has performed all of its obligations hereunder, Landlord shall return any unapplied portion of the Security Deposit to Tenant within thirty (30) days after the later to occur of: (1) the date Tenant surrenders possession of the Premises to Landlord in accordance with this Lease; or (2) the Expiration Date. Tenant does hereby authorize Landlord to withhold from the Security Deposit all amounts allowed by Law and the amount required hereunderreasonably anticipated by Landlord to be owed by Tenant as a result of an underpayment of Tenant’s Pro Rata Share of any Excess Operating Expenses for the final year of the Term. To the fullest extent permitted by applicable Law, from time to timeTenant agrees that the provisions of this Article 6 shall supersede and replace all statutory rights of Tenant under applicable Law regarding the retention, application or return of security deposits. If Landlord transfers its interest in the Complex during the term of this LeasePremises, Landlord may shall assign the Security Deposit to the transferee and, following the assignment and upon assumption by such transferee the delivery to Tenant of liability an acknowledgement of the transferee’s responsibility for the Security DepositDeposit if required by Law, Landlord shall have no further liability for the return of such the Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore Landlord shall not be required to keep the Security Deposit to the amount required hereunder, separate from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoother accounts.

Security Deposit. The Contemporaneously with the execution of this Lease, Tenant shall deposit One Hundred Seven Thousand and No/100 Dollars ($107,000.00) into a Twentieth Century Cash Reserve account in the name of Avax Technologies, Inc. and Tenant shall authorize Landlord's Senior Vice President of Facilities and Real Estate as co-signer with individual authority on such Cash Reserve account ("Security Deposit"). Such Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by Tenant of Tenant’s 's covenants and obligations under this Lease, it being expressly understood that the such Security Deposit shall not be considered an advance payment of Rent rental or a measure of Tenant’s liability for 's damages in case of default by Tenant. Landlord may, from Mom time to time, without prejudice to any other remedy, use withdraw the Security Deposit to the extent necessary to make good any arrearages of Rent rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodshereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord invest in the Cash Reserve account on Landlord's demand the amount so applied in order to restore the Security Deposit to its original amount. All interest and earnings on the amount required hereunderCash Reserve account shall be payable to Tenant. If Tenant is not in default at the termination of this Lease, from time to timethe balance of the Security Deposit remaining after any such application may be withdrawn by Tenant and Landlord's Senior Vice President of Facilities and Real Estate shall no longer be authorized on the Cash Reserve account. If Landlord transfers its interest in the Complex Premises during the term of this Lease, Landlord may assign the Security Deposit to the transferee transferee, and upon assumption by an authorized signer of such transferee shall be authorized on the Cash Reserve account in lieu of liability for the Security Deposit, a representative of Landlord and thereafter Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of Notwithstanding the Security Depositforegoing, Tenant must upon demand restore the Security Deposit to the amount required hereundermay, from time to time. No application at Tenant's option, in lieu of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide providing the Security Deposit in the form of cash invested in a Letter Twentieth Century Cash Reserve account as described above, provide such Security Deposit in the form of Credit an irrevocable letter of credit in accordance a form satisfactory to Landlord from a commercial bank with Exhibit “M” attached heretoa B Rating or better according to Scheshunoff Bank Quarterly or if no longer available, a similar publication satisfactory to Landlord, which will be converted to cash to be retained by Landlord, in the event of a default under this Lease. Such letter of credit may provide for a proportionate reduction in the amount required to be provided by Tenant each year during the Initial Lease Term.

Security Deposit. The Tenant concurrently with the execution of this Lease shall deposit the Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, without liability for interestand will keep on deposit at all times during the Term, and any extensions thereof, the sum set forth in the Basic Lease Information, the receipt of which is hereby acknowledged, as security for the performance payment by Tenant of Tenant’s all sums herein agreed to be paid and for the faithful performance of all the terms, conditions, and covenants and obligations under of this Lease. If, it being expressly understood that at any time during the Term, Tenant shall be in default in the performance of any provision of this Lease (after any applicable notice and cure periods), Landlord shall have the right to use said Security Deposit shall not be considered an advance Deposit, or so much thereof as necessary, in payment of Rent or a measure any sums in default as aforesaid, in reimbursement of any expense incurred by Landlord, and in payment of any damages incurred by Landlord by reason of Tenant’s liability for damages default. In such event, Tenant shall, on written demand of Landlord, forthwith remit to Landlord a sufficient amount in case of default by Tenant. Landlord may, from time cash to time, without prejudice to any other remedy, use restore the Security Deposit to its original amount. In the extent necessary event Security Deposit has not been utilized as aforesaid, the Security Deposit, or as much thereof as has not been utilized for such purposes, shall be refunded to make good any arrearages Tenant, without interest, within sixty (60) days after the later of Rent (i) termination of the Lease or to satisfy any other covenant or obligation (ii) surrender and acceptance of Tenant hereunder following the expiration Premises; provided, however, Landlord may retain the same as security for payment of any applicable cure periodsAdditional Rent attributable to the period prior to such termination until said amounts are calculated and paid in accordance with the provisions hereof. Following any Landlord shall have the right to commingle the Security Deposit with other funds of Landlord. Landlord shall deliver the funds deposited herein by Tenant to the purchaser of Landlord’s interest in the Premises in the event such application interest shall be sold, and thereupon Landlord shall be discharged from further liability with respect to the Security Deposit. If claims of Landlord exceed the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability remain liable for the Security Deposit, Landlord shall have no further liability for the return balance of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoclaims.

Security Deposit. The Security Deposit shall be deposited with delivered to Landlord upon the execution of this Lease by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit and shall be held by Landlord, Landlord without liability for interest, interest (except as required by law) and as security for the performance by Tenant of Tenant’s covenants and 's obligations under this Lease, it being expressly understood that the . The Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s 's liability for damages in case of default by Tenantdamages. Landlord may, from time to time, without prejudice to any other remedy, use all or a portion of the Security Deposit to the extent necessary to make good any arrearages arrearage of Rent Rent, to repair damages to the Premises, to clean the Premises upon termination of this Lease or otherwise to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodshereunder. 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 amount required hereundertermination of this Lease, after Tenant surrenders the Premises to Landlord in accordance with this Lease and all amounts due Landlord from time Tenant are finally determined and paid by Tenant or through application of the Security Deposit, the balance of the Security Deposit remaining after any such application shall be returned to timeTenant. If Landlord transfers its interest in the Complex Premises during the term of this LeaseLease Term, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord thereafter shall have no further liability for the return of such Security Deposit. Upon application of all Tenant agrees to look solely to such transferee or any part assignee for the return of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application Landlord and its successors and assigns shall not be bound by any actual or attempted assignment or encumbrance of the Security Deposit by Tenant, provided, however, if Tenant's interest in this Lease has been assigned, Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Lawsshall, now or hereinafter in force, which restrict the amount or types of claim provided that Landlord has been furnished with a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days fully executed copy of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained hereinagreement assigning such Security Deposit, Tenant shall provide return the Security Deposit in the form of a Letter of Credit to such assignee in accordance with Exhibit “M” attached heretothe terms and conditions hereof. If Landlord returns the Security Deposit to Tenant's assignee as aforesaid, Landlord will have no further obligation to any party with respect thereto. Landlord shall not be required to keep the Security Deposit separate from its other accounts.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord Upon execution of this Lease. The , Tenant shall pay to Landlord the Security Deposit shall be held by Landlord, without liability for interest, specified in Paragraph 2.d. above as security for the Tenant's performance by Tenant of all of Tenant’s 's covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord's damages upon Tenant's default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant's failure to perform any of its covenants or obligations hereunder, it being expressly understood that any use of the Security Deposit shall not be considered an advance payment of Rent constitute a bar or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice defense to any other remedyof Landlord's remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, use Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to an amount equal to one hundred ten percent (110%) of the extent necessary amount specified in Paragraph 2.d. as the same may have been increased by prior applications of this Paragraph 6. Tenant's failure to make good any arrearages such payment to Landlord within five (5) days of Rent or to satisfy any other covenant or obligation Landlord's notice shall constitute an Event of Default. If Tenant hereunder following is not in default at the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term or termination of this Lease, Landlord may assign shall return to Tenant the Security Deposit or the balance thereof then held by Landlord; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to the transferee and upon assumption by such transferee of liability Tenant for the Security Deposit, Landlord Deposit unless and only to the extent such holder or purchaser shall have no further liability for actually received the return same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such Security Deposit. Upon application of waiver, acknowledges that Landlord may use all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, compensate Landlord for damages resulting from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms termination of this Lease. Notwithstanding anything to Lease and the contrary contained hereintenancy created hereunder (including, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretowithout limitation, damages recoverable under California Civil Code Section 1951.2).

Security Deposit. The (a) Tenant shall deposit with Landlord upon Tenant's execution hereof the Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord set forth in Paragraph 1.6 of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, lease as security for the Tenant's faithful performance by Tenant of Tenant’s covenants and 's obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of lease. If Tenant fails to pay Base Rent or a measure of Tenant’s liability for damages in case of Additional Rent or otherwise defaults under this lease, and such failure or default by Tenant. Tenant continues after the giving of all required notices by Landlord mayand the expiration of all applicable cure periods, from time to timethen and in any such event, without prejudice to any other remedy, Landlord may use the Security Deposit to for the extent necessary to make good payment of any arrearages of Rent amount due Landlord or to satisfy reimburse or compensate Landlord for any other covenant liability, cost, expense, loss or obligation of Tenant hereunder following the expiration of any applicable cure periodsdamage (including reasonable attorney's fees) which Landlord may suffer or incur by reason thereof. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand pay Landlord the amount so used or applied in order so as to restore the Security Deposit to the amount required hereunder, from time to time. If Landlord transfers its interest set forth in the Complex during the term Paragraph 1.6 of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, lease. Landlord shall have no further liability for the return of such Security Deposit. Upon application of not be required to keep all or any part of the Security DepositDeposit in an interest bearing account. Landlord shall, at the expiration or earlier termination of the Term and after Tenant must upon demand restore has vacated the Security Deposit demised premises, return to the amount required hereunder, from time to time. No application Tenant that portion of the Security Deposit not used or applied by Landlord. No part of the Security Deposit shall be considered to be prepayment for any monies to be paid by Tenant under this lease. (b) Tenant shall have the right to deliver to Landlord an unconditional, irrevocable letter of credit in substitution for the cash Security Deposit required in Paragraph 5(a) above, subject to the following terms and condition. Such letter of credit shall be: (i) in the form attached to 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 deemed automatically renewed on an annual basis unless the issuer delivers at least 30 days prior written notice of cancellation to have cured Landlord and Tenant’s default, 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 waives all provisions shall either: (A) cause such letter of Laws, now credit to be renewed (or hereinafter 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 force, which restrict the amount of the Security Deposit. Notwithstanding anything in this lease to the contrary, any cure or types grace period set forth in Paragraph 13.1 of claim 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 a commercial bank that has a landlord may make upon a security deposit credit rating with respect to certificates of deposit, short term deposits or imposes upon a landlord commercial paper of at least A-3 (or equivalent) by ▇▇▇▇▇'▇ 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 successorsreasonable discretion. If the issuer's credit rating is reduced below A-3 (or equivalent) by ▇▇▇▇▇'▇ 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 obligation other materially adverse way, then Tenant shall obtain from a different issuer a substitute letter of credit that complies in all respects with the requirements of this paragraph, and Tenant's failure to obtain such substitute letter of credit within 10 days following its receipt of Landlord's demand therefor (and Tenant's failure to do so shall, notwithstanding anything in this lease to the contrary, constitute a 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 letter of credit is insolvent or placed into receivership or conservatorship by the Federal Deposit Insurance Corporation or Resolution Trust Corporation, or any successor or similar entity, or if a trustee, receiver or liquidator is appointed for the issuer, then Tenant shall obtain from a different issuer a substitute letter of credit that complies in all respects with the requirements of this paragraph, and Tenant's failure to obtain such substitute letter of credit within 10 days following its receipt of Landlord's demand therefor (and Tenant's failure to do so shall, notwithstanding anything in this lease to the contrary, constitute a Default for which there shall be 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 whole or in part, without notice to Tenant and to hold the proceeds thereof as the Security Deposit. Landlord shall have the 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 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. Any failure or refusal of the issuer to honor the letter of credit shall be at Tenant's sole risk and shall not relieve Tenant of its obligations hereunder with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoDeposit.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord Upon Tenant’s execution of this Lease. The , Tenant shall deposit with Landlord good funds in the amount of the Security Deposit shall be held by Landlord(if any) set forth in the Principal Lease Provisions, without liability for interest, as security for to secure the performance by Tenant of Tenant’s covenants and its obligations under this Lease, it being expressly understood that including without limitation Tenant's obligations (i) to pay Basic Monthly Rent and Additional Rent (as defined below), (ii) to repair damages to the Premises and/or the Project caused by Tenant or Tenant’s Invitees, (iii) to surrender the Premises in the condition required by Paragraph 24, below, and (iv) to remedy any other defaults by Tenant in the performance of any of its obligations under this Lease. If Tenant commits any default under this Lease, Landlord may, at its election, use the Security Deposit to cure such default, and to compensate Landlord for all damages actually suffered by Landlord which are directly attributable to such default, including, without limitation, reasonable attorneys' fees and costs incurred by Landlord. Upon demand by Landlord, Tenant shall not be considered an advance payment promptly pay to Landlord a sum equal to any portion of the Security Deposit so used by Landlord, in order to maintain the Security Deposit in the amount set forth in the Principal Lease Provisions above (subject to increase as set forth below). If the Basic Monthly Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord mayshall, from time to time, without prejudice increase during the Term, then, upon demand by Landlord, Tenant shall deposit with Landlord cash in an amount necessary to any other remedy, use increase the Security Deposit such that it shall at all times bear the same proportion to the extent necessary then‑current Basic Monthly Rent as the initial Security Deposit bears to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder the initial Basic Monthly Rent. Within 45 days following the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term Expiration Date or earlier termination of this Lease, Landlord may assign the Security Deposit shall deliver to the transferee and upon assumption by such transferee of liability for the Security DepositTenant, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or at Tenant's last known address, any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application portion of the Security Deposit not used by Landlord, as provided in this Paragraph. Landlord will be deemed may commingle the Security Deposit (and any advance Rent received by Landlord) with Landlord's other funds and Landlord shall not pay interest on such Security Deposit to have cured Tenant. Tenant waives the provisions of California Civil Code Section 1950.7 (or any successor statute), and any similar principals of law with respect to Landlord’s ability to apply the Security Deposit against future rent damages. Furthermore, upon lawful termination of the Lease as a result of Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect Landlord shall be entitled to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide immediately apply the Security Deposit in against damages computed under California Civil Code Section 1951.2, without the form of requirement that Tenant first be given notice and an opportunity to cure, and notwithstanding that the damages have not been finally adjudicated by a Letter of Credit in accordance with Exhibit “M” attached heretocourt.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with $16,474.50 payable on the delivery by Tenant to Landlord Effective Date. Upon the occurrence of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, any Event of Default (as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default hereinafter defined) by Tenant. , Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit security deposit paid to Landlord by Tenant as herein provided to the extent necessary to make good any arrearages arrears of Rent or to satisfy (as hereinafter defined) and any other covenant damage, injury, expense or obligation liability caused to Landlord by such Event of Default for which Tenant hereunder following the expiration of any applicable cure periodsis liable hereunder. Following any such application of the Security Depositsecurity deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit security deposit to the amount required hereunder, from time thereof existing prior to timesuch application. If Any remaining balance of the security deposit shall be returned by Landlord transfers its interest in to Tenant within sixty (60) days after the Complex during the term termination of this LeaseLease Agreement and after Tenant provides written notice to Landlord of Tenant’s forwarding address; provided, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposithowever, Landlord shall have no further liability the right to retain and expend such remaining balance (a) to reimburse Landlord for any and all rentals or other sums due hereunder that have not been paid in full by Tenant and/or (b) for cleaning and repairing the return Leased Premises if Tenant shall fail to deliver same at the termination of such Security Deposit. Upon application this Lease Agreement in a neat and clean condition and in as good a condition as existed at the date of all or any part possession of the Security Depositsame by Tenant, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s defaultordinary wear and tear only excepted. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict shall not be entitled to any interest on the amount or types of claim that a landlord may make upon a security deposit. Such security deposit shall not be considered an advance payment of rental or imposes upon a landlord (or its successors) any obligation with respect to the handling or return measure of security deposits. The Security Deposit will be released to Tenant within thirty (30) days Landlord’s damages in case of the surrender an Event of the Premises to Landlord subject to any deductions made Default by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached heretoTenant.

Security Deposit. The A. Subject to the provisions of Section 16B, Subtenant shall deposit with Sublandlord on or before the date hereof, the sum of $226,050.00 (hereinafter referred to as the "Security Deposit") as security for the full and punctual performance by Subtenant of all the terms of this sublease. Such Security Deposit shall be deposited with Landlord retained by Tenant contemporaneously Sublandlord in accordance with the delivery by Tenant to Landlord provisions of this LeaseArticle 16. The Security Deposit security shall be held deposited in a separate interest bearing account segregated from Sublandlord's funds, in a bank selected by Landlord, without liability for interest, as security for Sublandlord and any interest earned thereon (less any administrative fee to which Sublandlord may be entitled pursuant to applicable law) shall be paid to Subtenant annually provided Subtenant is not then in default in the observance or performance by Tenant of Tenant’s covenants and any of its obligations under this Leaselease which continues after notice and the expiration of any applicable cure period. In the event Subtenant defaults in the performance of any of the terms of this Sublease, it being expressly understood that including the Security Deposit shall not be considered an advance payment of Rent Fixed Rent, Additional Rent, or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedysum owing by Subtenant hereunder which continues after any required notice and the expiration of any applicable cure period, use Sublandlord may use, apply or retain the whole or any part of the Security Deposit to the extent necessary required for the payment of any Fixed Rent, Additional Rent, or other sum or for any sum which Sublandlord may expend or may be required to make good expend by reason of Subtenant's default in respect of any arrearages of Rent the terms of this Sublease, including any damages or deficiency in the re-letting of the Sublease Premises, whether accruing before or after summary proceedings or other re-entry by Sublandlord. In the case of every such use, application or retention, Subtenant shall, on demand, pay to satisfy Sublandlord the sum so used, applied or retained which shall be added to the Security Deposit so that the same shall be replenished to its former amount. If Subtenant shall fully and punctually comply with all of the terms of this Sublease, the Security Deposit, with any other covenant interest earned thereon, shall be returned to Subtenant after the termination of this Sublease and delivery of exclusive possession of the Sublet Premises to Sublandlord (subject to the provisions of this Article). In the event of an assignment of the Main Lease by Sublandlord or obligation any attorment by Subtenant to Landlord, Sublandlord shall have the right to transfer the Security Deposit or any letter of Tenant credit provided for in this Article 16 to the assignee or Landlord, as the case may be, and Sublandlord shall ipso facto be released by Subtenant from all liability for the return of the Security Deposit or such letter of credit; and Subtenant agrees to look solely to the new landlord for the return of the Security Deposit or such letter of credit and it is agreed that the provisions hereof shall apply to every transfer or assignment made of the Security Deposit or the letter of credit to a new landlord. Subtenant shall not assign or encumber or attempt to assign or encumber the monies or letter of credit deposited herein as security and neither Sublandlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or encumbrance. B. In lieu of a cash deposit, Subtenant may deliver to Sublandlord a clean, irrevocable transferable (without expense to the beneficiary thereof) and unconditional Letter of Credit issued by and drawn upon any commercial bank which is a member of the New York Clearing House Association (hereinafter referred to as the "Issuing Bank" with offices for banking purposes in the City of New York and having a net worth of not less than Five Hundred Million and 00/100 ($500,0OO,000.00) Dollars, which Letter of Credit shall have a term of not less than one year, be in form and content satisfactory to Sublandlord, be for the account of Sublandlord and be in the amount of $226,050.00. The Letter of Credit shall provide that: (i) The Issuing Bank shall pay to Sublandlord or its duly authorized representative an amount up to the face amount of the Letter of Credit upon presentation of the Letter of Credit and a sight draft in the amount to be drawn; (ii) The Letter of Credit shall be deemed to be automatically renewed, without amendment, for consecutive periods of one year each during the term of this Sublease, unless the Issuing Bank sends written notice (hereinafter referred to as the "Non-Renewal Notice") to Sublandlord by certified or registered mail, return receipt requested, not less than thirty (30) days next preceding the then expiration date of the Letter of Credit, that it elects not to have such Letter of Credit renewed; (iii) Sublandlord, within twenty (20) days of its receipt of the Non-Renewal Notice, shall have the right, exercisable by a sight draft, to receive the monies represented by the Letter of Credit (which moneys shall be held by Sublandlord as a cash deposit pursuant to the terms of this Article 16 pending the replacement of such Letter of Credit or Subtenant's default hereunder); and (iv) Upon Sublandlord's assignment of Sublandlord's interest in the Main Lease, the Letter of Credit shall be transferable by Sublandlord as provided in Article 16A hereof. C. Sublandlord agrees that it will not draw down the proceeds of the Letter of Credit except in the event of a default by Subtenant hereunder following which continues after any required notice and the expiration of any applicable cure periods. Following period or the non-renewal of such Letter of Credit by the Issuing Bank. D. In the event that at 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this LeaseSublease, Landlord may assign Sublandlord, in Sublandlord's reasonable opinion, believes (i) that the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part net worth of the Security DepositIssuing Bank shall be less than the minimum amount specified in Article 16B, Tenant must or (ii) that circumstances have occurred indicating that the Issuing Bank may be incapable of, unable to, or prohibited from honoring the then existing Letter of Credit (hereinafter referred to as the "Existing L/C") in accordance with the terms thereof, then, upon demand restore the Security Deposit happening of either of the foregoing, Sublandlord may send written notice to Subtenant (hereinafter referred to as the amount required "Replacement Notice") requiring Subtenant within ten (10) days to replace the Existing L/C with a new letter of credit (hereinafter referred to as the "Replacement L/C") from an Issuing Bank meeting the qualifications described in Article 16B. Upon receipt of a Replacement L/C meeting the qualifications of Article ▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇ shall forthwith return the Existing L/C to Subtenant. In the event that (a) a Replacement L/C meeting the qualifications of Article 16B is not received by Sublandlord within the time specified or (b) Sublandlord reasonably believes an emergency exists, then in either event, the Existing L/C may be presented for payment by Sublandlord and the proceeds thereof shall be held by Sublandlord in accordance with Section 16A subject, however, to Subtenant's right, at any time thereafter prior to a Subtenant's default hereunder, from time to time. No application replace such cash security with a new letter of credit meeting the Security Deposit by Landlord will qualificatons of Article 16B. E. Subtenant hereby advises Sublandlord that Republic National Bank shall be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Leaseoriginal Issuing Bank. Notwithstanding anything in this Article 16 to the contrary contained hereincontrary, Tenant subject to the provisions of Section 16B hereof, Subtenant may, upon ten (10) days' prior written notice to Sublandlord, request that the Existing L/C be substituted with a new letter of credit (hereinafter referred to as the “Substitution L/C") from an Issuing Bank meeting the qualifications described in Section 16B. The Substitution L/C shall provide accompany said request. Upon receipt of a Substitution L/C meeting the qualifications of ▇▇▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇ shall forthwith return the Existing L/C to Subtenant. F. Notwithstanding anything in this Article 16 to the contrary, subject to the provisions of Section 16G hereof, Subtenant may, upon notice to SublandLord (hereinafter referred to as the “Security Deposit Reduction Notice") request that Sublandlord return to Subtenant portions of the cash security deposited by Subtenant pursuant to Section 16A so as to reduce the cash security to the amounts set forth in Section 16G during the form of periods set forth in Section 16G or, if Subtenant has provided a Letter of Credit, exchange the then existing Letter of Credit for a new Letter of Credit or provide an amendment of the then existing Letter of Credit reasonably acceptable to Landlord in the amounts set forth in Section 16G and otherwise meeting the requirements of Section 16B. (i) Provided Tenant is not in default under this Sublease, which default continues after notice and the expiration of any applicable cure period, both on the date Sublandlord receives the Security Reduction Notice and on the date reimbursement is to be made to Subtenant or the existing Letter of Credit is to be exchanged or the amendment is to be delivered to and accepted by Sublandlord, and Sublandlord has not previously applied any such security in accordance with Exhibit “M” attached hereto.the provisions of this Article 16 which has not been restored by Subtenant, Sublandlord will return to Subtenant portions of the cash security so as to reduce the cash security to the amounts set forth in such Section 16G(ii) below during the periods set forth therein, or exchange the then existing Letter of Credit for the new Letter of Credit or accept an amendment of such existing Letter of Credit (which acceptance must be evidenced in writing by Landlord) as set forth in Section 16F.

Security Deposit. The Security Deposit shall be deposited Concurrently with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord Tenant's execution of this Lease, Tenant shall deposit with Landlord a cash sum in the amount stated in Summary of Basic Lease Information Section 8 (Security Deposit). The Landlord shall hold the Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by Tenant of Tenant’s covenants and 's obligations under this Lease. If Tenant defaults on any provision of this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedyremedy it has, use apply all or part of the Security Deposit to: (a) any Rent or other sum in default; (b) any amount that Landlord may spend or become obligated to spend in exercising Landlord's rights under Article 23; or (c) any expense, loss, or damage that Landlord may suffer because of Tenant's default. Tenant waives the provisions of California Civil Code Section 1950.7, and all other provisions of law now in force or that become in force after the date of execution of this Lease, that 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. Landlord and Tenant agree that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other foreseeable or unforeseeable loss or damage caused by the act or omission of Tenant or Tenant's officers, agents, employees, independent contractors, or invitees. If Landlord disposes of its interest in the Premises, Landlord may deliver or credit the Security Deposit to Landlord's successor in interest in the extent necessary Premises and thereupon be relieved of further responsibility with respect to make good the Security Deposit. Tenant may not assign or encumber the Security Deposit without the consent of Landlord. Any attempt to do so shall be void and shall not be binding on Landlord. If Landlord applies any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application portion of the Security Deposit, Tenant shall pay to shall, within thirty (30) days after demand by Landlord, deposit with Landlord on demand the an amount so applied in order sufficient to restore the Security Deposit to the amount required hereunder, from time its original amount. Tenant is not entitled to time. If Landlord transfers its any interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for on the Security Deposit. If Tenant performs every provision of this Lease to be performed by Tenant, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application unused portion of the Security Deposit by Landlord will shall be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released returned to Tenant or the last assignee of Tenant's interest under this Lease within thirty (30) days following the expiration or termination of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this LeaseLease Term. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached hereto.*SEE ADDENDUM

Security Deposit. The (a) Contemporaneously with the execution of this Lease, Tenant shall deliver to Landlord the Security Deposit (as defined in the Basic Lease Information), which shall be deposited with held by Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord secure Tenant’s performance of its obligations under this Lease. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall is not be considered an advance payment of Rent or a measure or limit of TenantLandlord’s liability for damages upon an Event of Default (as defined in case of default by TenantSection 17). Landlord may, at Landlord’s discretion, from time to time, time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to put the extent necessary Premises in the condition required under this Lease and to make good perform any arrearages of Rent obligation Tenant fails to perform hereunder or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodsin connection with Landlord’s remedies under this Lease. 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. Subject to the amount requirements of, and conditions imposed by, Laws applicable to security deposits under commercial leases, Landlord shall, within thirty (30) days after the expiration of the Term, return to Tenant the portion of the Security Deposit remaining after deducting all damages, charges and other amounts permitted by Law, if any. Landlord and Tenant agree that such deductions shall include, without limitation, all damages and losses that Landlord has suffered as a result of any breach of this Lease by Tenant, but shall not include any costs associated with normal wear and tear to the Premises (including but not limited to normal wear and tear to the Initial Tenant Work (as defined in Exhibit D attached hereto) and/or any Alterations (as defined in Section 8(a) hereof)). Unless required hereunderotherwise by applicable Law, from time to timethe Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Complex during the term of this LeasePremises, Landlord may assign the Security Deposit to the transferee and, upon such transfer (and upon assumption by such transferee the delivery to Tenant of liability an acknowledgment of the transferee’s responsibility for the Security DepositDeposit if required by Law), Landlord thereafter shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord . (or its successorsb) any obligation with respect to the handling or return of security deposits. The Security Deposit will shall be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter letter of Credit credit. The letter of credit shall be issued by a reputable banking institution reasonably acceptable to Landlord. Tenant shall deliver to Landlord at least sixty (60) days prior to the expiration of the letter of credit a replacement letter of credit issued by the same financial institution as issued the expiring letter of credit (or such other reputable banking institution as is reasonably acceptable to Landlord), in accordance with the same form as the expiring letter of credit (or in such other form as is reasonably acceptable to Landlord). If Tenant fails to timely deliver any such replacement letter of credit, such failure shall, without the need for any additional notice from Landlord, constitute an Event of Default under this Lease, and Landlord shall be entitled to draw the full amount of such letter of credit and to hold and/or use such drawn funds as a cash Security Deposit hereunder. The letter of credit shall be irrevocable, shall name Landlord and any successor-in-interest of Landlord as beneficiary, shall be unconditional except as to require a sight draft drawn on the issuing bank to be tendered by the beneficiary at said bank’s office, and shall otherwise be in such form as may be reasonably required by Landlord. Landlord hereby agrees that the form of letter of credit attached hereto and made a part hereof as Exhibit N is acceptable. The term “Mletter of credit” attached heretoshall mean the original letter of credit delivered to Landlord and each replacement thereof delivered to Landlord during the Term of this Lease.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord of this Lease. The Security Deposit shall be held by Landlord, Landlord without liability for interest, interest (except as required by law) and as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the . The Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenantdamages. Landlord may, from time to time, without prejudice to any other remedy, use all or a portion of the Security Deposit to the extent necessary to make good any arrearages arrearage of Rent Rent, to repair damages to the Premises, to clean the Premises upon termination of this Lease or otherwise to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodshereunder. 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 amount required hereundertermination of this Lease, after Tenant surrenders the Premises to Landlord in accordance with this Lease and all amounts due Landlord from time Tenant are finally determined and paid by Tenant or through application of the Security Deposit, the balance of the Security Deposit remaining after any such application shall be returned to timeTenant. If Landlord transfers its interest in the Complex Premises during the term of this LeaseLease Term, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord thereafter shall have no further liability for the return of such Security Deposit. Upon application of all Tenant agrees to look solely to such transferee or any part assignee for the return of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application Landlord and its successors and assigns shall not be bound by any actual or attempted assignment or encumbrance of the Security Deposit by Landlord will be deemed to have cured Tenant, provided, however, if Tenant’s default. Tenant waives all provisions of Lawsinterest in this Lease has been assigned, now or hereinafter in forceLandlord shall, which restrict the amount or types of claim provided that Landlord has been furnished with a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days fully executed copy of the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained hereinagreement assigning such Security Deposit, Tenant shall provide return the Security Deposit in the form of a Letter of Credit to such assignee in accordance with Exhibit “M” attached heretothe terms and conditions hereof. If Landlord returns the Security Deposit to Tenant’s assignee as aforesaid, Landlord will have no further obligation to any party with respect thereto. Landlord shall not be required to keep the Security Deposit separate from its other accounts.

Security Deposit. The Security Deposit shall be Tenant has deposited with Landlord the Security Deposit in the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant contemporaneously with the delivery by Tenant to Landlord of under this Lease. The Security Deposit Landlord shall be held by Landlordhave the right, without liability for interestbut not the obligation, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. ▇▇▇▇▇▇▇▇'s right to possession of the Property for non-payment of rent or any other reason shall not be considered an advance payment of Rent or a measure of affected by the fact that Landlord holds security. Tenant’s 's liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit is not limited to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application amount of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term of this Lease, Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part give Tenant written notice of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant part thereof within thirty (30) days of said application. If the surrender application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms same, attaching estimates or paid receipts. Upon receipt of this Lease. Notwithstanding anything to the contrary contained hereinsaid notice, Tenant shall provide at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the form of a Letter of Credit Property in accordance with Exhibit “M” attached heretoParagraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant in accordance with applicable law. In the event of a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all Landlord's obligations hereunder, ▇▇▇▇▇▇ agrees to look to such grantee, ▇▇▇▇▇▇ 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.

Security Deposit. The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with On the delivery by Tenant to Landlord Effective Date of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the sum of $2,595.00 which represents the amount so applied of one (1) month of Rent under this Lease, as security for the full, faithful, and timely performance of each and every provision of this Lease to be performed by ▇▇▇▇▇▇, including, but not limited to, its obligation to pay Rent (the “Security Deposit”). If Tenant does not pay Rent in order to restore full by the date such payment is due or if Tenant violates any other part of this Lease, then Landlord may use or apply part or all of this Security Deposit to the amount required hereunderunpaid Rent or any part thereof or to any other costs or payments outstanding that result from Tenant's violations under this Lease. At the termination of the lease term, from time Tenant must return the occupied Premises to time. If Landlord transfers its interest in the Complex state in which they were received. Tenant may be allocated the cost of any necessary repairs or cleaning performed by Landlord or third-party contractors in order to return the Premises to the pre-leased state. At any point during the term of this Lease, Landlord may assign if the Security Deposit is not sufficient to the transferee and upon assumption cover all damages or costs incurred by such transferee of liability for the Security Deposit, Landlord shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security DepositLandlord, Tenant must upon demand restore the Security Deposit to shall pay any and all such costs that exceed the amount required hereunder, from time to time. No application of the Security Deposit by Landlord within five (5) days of receipt of written demand from Landlord. Furthermore, in the event that all or a portion of the Security Deposit must be used, Tenant shall fund the Security Deposit such that the total amount is equal to the total amount initially required under this Section. Before the termination date of the lease term, Tenant will have the opportunity to request an end-of-term walk-through inspection with property management to assess any damages to the premises. If Tenant chooses not to participate in the walk-through inspection, they shall be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict accepted the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will be released to Tenant within thirty (30) days condition of the surrender of the Premises premises and agree to Landlord subject to accept any deductions made deposit return amount determined by Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained hereinLandlord, Tenant shall provide the Security Deposit in the form of a Letter of Credit provided it is deemed reasonable in accordance with Exhibit “M” attached heretoapplicable laws.

Security Deposit. The Security Deposit shall be 9.1. Tenant has deposited with Landlord the sum set forth in Section 2.11 (the “Security Deposit”), which sum shall be held by Landlord as security for the faithful performance by Tenant contemporaneously with of all of the delivery terms, covenants and conditions of this Lease to be kept and performed by Tenant to Landlord during the period commencing on the Effective Date and ending upon the expiration or termination of this Lease. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by If Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant’s liability for damages in case of default by Tenant. Landlord may, from time to time, without prejudice defaults with respect to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periods. 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 the amount required hereunder, from time to time. If Landlord transfers its interest in the Complex during the term provision of this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit(but shall not be required to) use, Landlord shall have no further liability for the return of such Security Deposit. Upon application of apply or retain all or any part of the Security DepositDeposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant must upon shall, within ten (10) days following 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. Landlord shall not be required to keep this Security Deposit separate from its general fund, and Tenant shall not be entitled to interest on the amount required hereunderSecurity Deposit. 9.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, from time to time. No application of the Security Deposit by Landlord will shall be deemed to have cured be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 9.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) and thereupon Landlord shall be discharged from any obligation further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 9.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the handling Security Deposit, or return of security deposits. The Security Deposit will any balance thereof, shall be released returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days of after the surrender of the Premises to Landlord subject to any deductions made by Landlord pursuant to the terms expiration or earlier termination of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security Deposit in the form of a Letter of Credit in accordance with Exhibit “M” attached hereto.

Security Deposit. The Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the Security Deposit (as defined in the Basic Lease Information), which shall be deposited with held by Landlord by Tenant contemporaneously with the delivery by Tenant to Landlord secure Tenant’s performance of its obligations under this Lease. The Security Deposit shall be held by Landlord, without liability for interest, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall is not be considered an advance payment of Rent or a measure or limit of TenantLandlord’s liability for damages upon an Event of Default (as defined in case of default by TenantSection 17). Landlord may, at Landlord’s discretion, from time to time, time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to put the extent necessary Premises in the condition required under this Lease and to make good perform any arrearages of Rent obligation Tenant fails to perform hereunder or to satisfy any other covenant or obligation of Tenant hereunder following the expiration of any applicable cure periodsin connection with Landlord’s remedies under this Lease. 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. Subject to the amount requirements of, and conditions imposed by, Laws applicable to security deposits under commercial leases, Landlord shall, within the time required hereunderby applicable Law, from time return to timeTenant the portion of the Security Deposit remaining after deducting all damages, charges and other amounts permitted by Law. 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 as a result of any breach of this Lease by Tenant. Unless required otherwise by applicable Law, the Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Complex during the term of this LeasePremises, Landlord may assign the Security Deposit to the transferee and, upon such transfer (and upon assumption by such transferee the delivery to Tenant of liability an acknowledgment of the transferee’s responsibility for the Security DepositDeposit if required by Law), Landlord thereafter shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The Security Deposit will shall be released in the form of an irrevocable, unconditional letter of credit (the “Letter of Credit”). The Letter of Credit shall be addressed to Tenant within Landlord, issued in a form and substance similar to that attached hereto as Exhibit G and by a financial institution approved by Landlord, in Landlord’s sole discretion, shall be freely transferable without fee, and having an expiration date falling no sooner than ten (10) years and thirty (30) days of after the surrender of the Premises to Landlord subject to Commencement Date. Tenant agrees that upon any deductions made default by Landlord pursuant to Tenant under the terms and provisions of this Lease, Landlord shall have the right to receive payment under any Letter of Credit of the entire amount of such Letter of Credit at such time, and any such amounts received by Landlord shall be held by Landlord and applied in accordance with this Lease in the same manner as for a cash Security Deposit. Notwithstanding anything Provided no Event of Default shall have occurred under this Lease, the amount of the Security Deposit shall be reduced by $11,600.00 as of the second (2nd) anniversary of the Commencement Date, and by$54,800.00 as of each subsequent anniversary of the Commencement; provided, however, that in no event shall the Security Deposit be reduced to the contrary contained hereinan amount less than $127,794.00. Prior to any such reduction, Tenant shall provide the Security Deposit in the form of be required to have furnished to Landlord a replacement Letter of Credit in accordance with Exhibit “M” attached heretothe reduced amount of such Security Deposit.