Common use of Security Deposit Clause in Contracts

Security Deposit. If LICENSEE defaults under any of the terms or conditions of this 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"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to 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 date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's request.

Security Deposit. If LICENSEE defaults under any of Tenant concurrently with the terms or conditions execution of this 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 Lease shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of Landlord in immediately available funds the Security Deposit. The Security Deposit may be applied by Landlord to cure, in whole or part, any default of Tenant under this Lease, and upon the occurrence notice by Landlord of any event of default by LICENSEEsuch application, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use Tenant shall replenish the Security Deposit in full by paying to Landlord within ten (10) days of demand the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreementso applied. Following any such Landlord's application of the Security Deposit, LICENSEE agrees Deposit shall not constitute a waiver of Tenant's default to pay to LICENSOR on demand the amount so applied in order to restore extent that the Security Deposit does not fully compensate Landlord for all losses, damages, costs and expenses incurred by Landlord in connection with such default and shall not prejudice any other rights or remedies available to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default Landlord under this AgreementLease or by Law. If LICENSEE is Landlord shall not in default of this Agreement upon the termination of this Agreement, LICENSOR agrees to return pay 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 interest on the Security Deposit will in no event release LICENSEE from being in default under the terms of this AgreementDeposit. LICENSOR will Landlord shall not be required to keep this the Security Deposit separate from its general fundsaccounts. LICENSEE agrees that The Security Deposit shall not be deemed an advance payment of Rent, nor a measure of damages for any default by Tenant under this Lease, nor shall it will not assign be a bar or encumberdefense of any action which Landlord may at any time commence against Tenant. In the absence of evidence satisfactory to Landlord of an assignment of the right to receive the Security Deposit or the remaining balance thereof, Landlord may return the Security Deposit to the original Tenant, regardless of one or more assignments of this Lease. Upon the transfer of Landlord's interest under this Lease, Landlord's obligation to Tenant with respect to the Security Deposit shall terminate upon transfer to the transferee of the Security Deposit, or attempt to assign or encumberany balance thereof. If Tenant shall fully and faithfully comply with all the terms, provisions, covenants, and conditions of this Lease, the monies deposited under this Agreement as securitySecurity Deposit, and that LICENSOR and its successors and assigns will not or any balance thereof, shall be bound by any such actual or attempted assignment or encumbrance. If LICENSEE cures the event of default that triggered the obligation returned to put up the $25,000 Security Deposit and is not then in default, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit Tenant within ten fifteen (15) business days after Landlord recovers possession of the date Premises. Tenant hereby waives any and all rights of LICENSEE's requestTenant under the provisions of Section 1950.7 of the California Civil Code or other Law regarding security deposits.

Security Deposit. If LICENSEE defaults under any of the terms or conditions Concurrent with Tenant’s execution of this Agreement more than two times during any twelve consecutive months during the term of this AgreementLease, LICENSEE agrees, that in addition to curing such event of default, it Tenant shall pay LICENSOR deposit with Landlord a security deposit equal to $25,000 ("the “Security Deposit")”) in the amount set forth in Section 14 of the Summary, which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE Tenant of LICENSEE's covenants and all of its obligations under this Agreement, it being expressly understood that such deposit is Lease. Tenant grants Landlord a security interest in the Security Deposit. The Security Deposit shall not be considered an advance payment of license fees or rent and is not intended to serve as liquidated damages nor to be a measure of LICENSOR's Landlord’s damages if LICENSEE for any default by Tenant. The Security Deposit may be commingled with other funds of Landlord. If Tenant defaults again. Following with respect to any provisions of this Lease, including, but not limited to, the provisions relating to the payment of Rent, the Security Depositremoval of property and the repair of resultant damage, upon the occurrence of any event of default by LICENSEE, LICENSOR Landlord may, from time without notice to timeTenant, without prejudice but shall not be required to apply all or any other remedy provided in this Agreement or by law, use part of the Security Deposit to for the extent necessary to make good payment of any arrearages of payment owed by LICENSEE to LICENSOR Rent, any damages or any amount as to which LICENSEE is other sum in default or for any other damageand Tenant shall, injuryupon demand therefor, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to 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 amount. Any unapplied portion of the date of demand will beSecurity Deposit shall be returned to Tenant, or, at LICENSOR's electionLandlord’s option, to the last assignee of Tenant’s interest hereunder, within sixty (60) days following the expiration of the Lease Term. Tenant shall not be entitled to any interest on the Security Deposit. In the event of a material default under this Agreement. If LICENSEE is not in default sale, lease, or encumbrance of this Agreement upon the termination Building or any part of this Agreementthe Building, LICENSOR agrees Landlord shall have the right to return any remaining balance of such transfer the Security Deposit to LICENSEE within thirty days the purchaser, landlord, tenant, or Landlord’s Mortgagee and if the Security Deposit is transferred, Landlord shall thereafter be relieved from any liability concerning the Security Deposit. Additionally, Landlord’s use or application of all or any portion of the date Security Deposit shall not preclude or impair any other rights or remedies provided for under this Lease or under applicable Law and shall not be construed as a payment of liquidated damages. Notwithstanding anything to the contrary contained in this Article 21, if Tenant has not exercised the Contingency Termination Option as provided in Section 2.4 above and provided further that no Default of Tenant has occurred and is continuing on the Termination Option Date, the amount of the termination Security Deposit for the Premises shall be reduced to $61,548.12. Provided that Tenant is not then in Default under the Lease, the amount of this Agreementthe Security Deposit then in effect shall be reduced to $41,032.08 on the last day of the second Lease Year and to $20,516.04 on the last day of the third Lease Year for the remainder of the Term. LICENSOR's deduction Provided that the foregoing conditions have been satisfied with respect to each of any amounts owed the three Security Deposit reductions as of the aforementioned dates, Landlord shall return the applicable excess amount then held by LICENSEE to LICENSOR Landlord from the Security Deposit will in no event release LICENSEE from being in default under within thirty (30) days after such conditions have been satisfied and the terms of this Agreement. LICENSOR will not remainder shall thereafter be required to keep this held by Landlord as the 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requesthereunder.

Security Deposit. If LICENSEE defaults under any of Contemporaneously with the terms or conditions execution of this Agreement more than two times during any twelve consecutive months during the term of this AgreementLease by Xxxxxx, LICENSEE agrees, that in addition to curing such event of default, it Tenant shall pay LICENSOR a security deposit equal to $25,000 ("Landlord the Security Deposit"), which will shall be held by LICENSOR without interest Landlord to secure Tenant’s performance of its obligations under this Lease. The Security Deposit shall be held by Landlord as security for the full and faithful performance by LICENSEE of LICENSEE's Tenant of all the terms, covenants and obligations conditions of this Lease to be kept and performed by Tenant during the Term. If at any time during the Term, any Rent or other sum payable by Tenant to Landlord under this AgreementLease shall be overdue and unpaid, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR Landlord may, from time to timeat its option, without prejudice to appropriate and apply any other remedy provided in this Agreement or by law, use portion of the Security Deposit to the extent necessary to make good payment of any arrearages of payment owed by LICENSEE to LICENSOR such overdue Rent or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such sum. In the event of defaultthe failure of Tenant to keep and perform all of the terms, regardless whether such damages or deficiency accrue before or after termination covenants and conditions of this Agreement. Following any such application of Lease to be kept and performed by Tenant, subject to all applicable notice and cure periods, then at Landlord’s option, Landlord may appropriate and apply the entire Security Deposit, LICENSEE agrees or so much thereof as may be necessary, to pay past due Rent, lost future Rent, and/or to LICENSOR on compensate Landlord for any and all loss or damage sustained or suffered by Landlord, due to any breach by Tenant under this Lease. Should the entire Security Deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of Rent or any sums due and payable, Tenant shall, upon the written demand the of Landlord, immediately remit to Landlord a sufficient amount so applied of funds in order cash to restore the Security Deposit to its the original amount sum, and LICENSEE's Xxxxxx’s failure to do so within ten five (5) business days after receipt of such demand shall constitute a default by Tenant. Landlord shall, within forty-five (45) days after expiration of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the Term or early termination of this AgreementLease, LICENSOR agrees return to return Tenant the portion of the Security Deposit remaining after deducting all damages, charges and other amounts (including, without limitation, Rent) not paid by Tenant to the extent required under this Lease. Landlord and Tenant agree that such deductions shall include, without limitation, all damages and losses that Landlord has suffered or that Landlord reasonably estimates that it will suffer to the extent caused by any remaining balance breach of such this Lease by Xxxxxx. Tenant acknowledges that this Security Deposit is not prepaid Rent and shall not be applied by Tenant to the payment of Rent. Unless required otherwise by applicable Law, the Security Deposit may be commingled with other funds, and no interest shall be paid thereon. In the event that Landlord transfers the Security Deposit to LICENSEE within thirty days Landlord’s successor in interest, Landlord shall be discharged from any further liability with respect to the Security Deposit, provided such successor in interest has assumed, in writing, all of Landlord’s obligations under this Lease from and after the effective date of the termination of this Agreementsuch transfer. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from It is expressly agreed that the Security Deposit will in no event release LICENSEE from being in default is to secure the obligations under this Lease, including without limitation the terms payment of this Agreement. LICENSOR will not be required to keep this Rent for the balance of the Term, and the 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 subject to refund the $25,000 amount put return as a Security Deposit within ten days of the date of LICENSEE's requestdeposit pursuant to California Civil Code Section 1950.7.

Security Deposit. If LICENSEE defaults under any of the terms or conditions Concurrently with Tenant's execution of this Agreement more than two times during any twelve consecutive months during Lease, Tenant has deposited with Landlord the term sum of this Agreement, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to Eighty Four Thousand Five Hundred and No/100 Dollars ($25,000 84,500.00) ("Cash Security "Deposit"). In addition, which will on or before January 4, 2002, Tenant shall deposit with Landlord a letter of credit substantially in the form attached hereto as Exhibit "C" ("Letter of Credit") in an initial amount of Three Hundred Twenty Four Thousand Dollars ($324,000.00). The Cash Security Deposit and Letter of Credit are collectively referred to as the Security Deposit. Landlord shall not be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or deemed a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment trustee of the Security Deposit, upon may use the occurrence Cash Security Deposit in business, and shall not be required to segregate the Cash Security Deposit from its general accounts. Tenant shall not be entitled to interest on the Security Deposit. If Tenant defaults with respect to any provisions of any event the Lease, including but not limited to the provisions relating to payment of default by LICENSEEBase Monthly Rent or other charges, LICENSOR Landlord may, from time to time, without prejudice the extent reasonably necessary to any other remedy provided in this Agreement or by lawTenant's default, use any or all of the Security Deposit (provided, however, Landlord shall use all of the Cash Deposit prior to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR drawing on all or any amount as to which LICENSEE is portion of the Letter of Credit) towards payment of the following: (i) Base Monthly Rent or other charges in default or for default; (ii) any other damageamount which Landlord actually and reasonably incurs by reason of Tenant's default hereunder including, injury, expense, but not limited to Tenant's failure to restore or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination clean the Premises following vacation thereof in accordance with the terms of this AgreementLease. Following If any such application portion of the Cash Security DepositDeposit is so used or applied, LICENSEE agrees to pay to LICENSOR on Tenant shall, within ten (10) days after written demand the from Landlord, deposit cash with Landlord in an amount so applied in order sufficient to restore the Cash Security Deposit to its full original amount amount, and LICENSEE's failure shall pay to Landlord such other sums as may be due pursuant to subsection (ii) of the immediately preceding sentence. Tenant may not assign or encumber the Security Deposit without the consent of Landlord. Any attempt to do so shall be void and shall not be binding on Landlord. The Security Deposit shall be returned to Tenant within ten thirty (30) days after the Expiration Date and surrender of the date Premises to Landlord, less any amount deducted in accordance with this Section, together with Landlord's written notice itemizing the amounts and purposes for such deduction. Landlord shall be entitled to draw against the Letter of demand will be, Credit at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon any time provided only that Landlord certifies to the termination of this Agreement, LICENSOR agrees to return any remaining balance of such Security Deposit to LICENSEE within thirty days issuer of the date Letter of the termination of this Agreement. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from the Security Deposit will in no event release LICENSEE from being Credit that Tenant is in default under the terms Lease. Landlord shall only draw the amount necessary to cure the default unless such default is the third default that has occurred in any consecutive 18-month period during the Lease Term, in which case Landlord shall be permitted to draw the entire amount of the Letter of Credit and convert it to cash, subject to the provisions of this AgreementLease regulating the handling of the Cash Security Deposit. LICENSOR will not be Tenant shall keep the Letter of Credit in effect during the Lease Term as required herein. At least thirty (30) days prior to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign or encumber, or attempt to assign or encumberexpiration of the Letter of Credit, the monies deposited under term thereof shall be renewed or extended for a period of at least one (1) year in the amount required by this Agreement as securitySection 4. Tenant's failure to so renew or extend the Letter of Credit shall be a material default of this Lease by Tenant. In the event Landlord draws against the Letter of Credit, Tenant shall replenish the existing Letter of Credit or cause a new Letter of Credit to be issued such that the aggregate amount available to Landlord at all times during the Lease Term is the amount of the Letter of Credit then required. Notwithstanding the foregoing, 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 provided Tenant is not then in default, LICENSOR agrees to refund default of the $25,000 amount put as a Lease (beyond any applicable notice and cure period) and the Cash Security Deposit within ten days is at its required amount, the amount of the date Letter of LICENSEE's requestCredit shall be reduced annually by $108,000.00, commencing on February 1, 2003, such reduction to continue annually until the Letter of Credit is entirely eliminated.

Security Deposit. If LICENSEE defaults under any of Subject to the terms or conditions of Article 35 below, the Security Deposit, if any, shall be delivered to Landlord upon the execution of this 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 Lease by Tenant and shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR Landlord without liability for interest (unless required by Law) as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit Tenant’s obligations. The Security Deposit is not an advance payment of license fees Rent or a measure of LICENSOR's damages if LICENSEE defaults againTenant’s liability for damages. Following the payment The amount of the Security Deposit, upon Deposit shall be subject to reduction in the occurrence manner and at the times specified as though it were a Letter of any event of default by LICENSEE, LICENSOR Credit (as described in Article 35). Landlord may, from time to time, without prejudice to any other remedy provided in this Agreement or by lawremedy, use all or a portion of the Security Deposit to the extent necessary satisfy past due Rent or to make good cure any arrearages of payment owed uncured default by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this AgreementTenant. Following any such application of If Landlord uses the Security Deposit, LICENSEE agrees to pay to LICENSOR Tenant shall 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 amount. At the later of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the (1) termination of this AgreementLease, LICENSOR agrees or (ii) the date Tenant surrenders the Premises to Landlord in accordance with the provisions of this Lease, Landlord shall return any remaining balance unapplied portion of such 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 the Security Deposit. If Landlord transfers its interest in the Premises, Landlord may assign the Security Deposit to LICENSEE within thirty days the transferee and, following the assignment, Landlord shall have no further liability for the return of the date Security Deposit, provided that such transferee has agreed in writing to assume the obligations of the termination of Landlord under this Agreement. LICENSOR's deduction of any amounts owed by LICENSEE Lease with respect to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under the terms of this AgreementDeposit. LICENSOR will Landlord shall not be required to keep this the Security Deposit separate from its general fundsother accounts. LICENSEE agrees that it will not assign or encumberTenant hereby waives the provisions of Section 1950.7 of the California Civil Code, or attempt to assign any similar 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 successor Laws now 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 hereinafter in default, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requesteffect.

Security Deposit. If LICENSEE defaults under any of Tenant shall deposit with Landlord upon execution hereof that sum identified in the terms or conditions of this Agreement more than two times during any twelve consecutive months during Summary as 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 ("the “Security Deposit"), which will be held by LICENSOR without interest ”) as security for the full and Tenant’s faithful performance by LICENSEE of LICENSEE's covenants and Tenant’s obligations under hereunder. If Tenant fails to pay rent or other charges due hereunder (all of which, collectively, are defined to be “Rent”), or otherwise defaults with respect to any provision of this AgreementLease, it being expressly understood that such Landlord may use, apply, or retain all or any portion of said deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following 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. The use, application, or retention of the Security Deposit, upon the occurrence of any event of default Deposit by LICENSEE, LICENSOR may, Landlord shall not prevent Landlord from time to time, without prejudice to exercising any other remedy provided hereunder or at law and shall not be 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 this Agreement or by law, use the Security Deposit an amount sufficient to restore said deposit to the extent necessary to make good any arrearages full amount then required of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this AgreementTenant. Following any such application of the Security Deposit, LICENSEE agrees to pay to 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 date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will Landlord shall not be required to keep this the Security Deposit separate from its general fundsaccounts and Tenant shall not be entitled to, and Tenant hereby specifically waives any requirement that Landlord pay interest on the Security Deposit. LICENSEE agrees that it will not assign or encumberIf Tenant performs all of Tenant’s obligations hereunder, the Security Deposit, or attempt 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 assign or encumberTenant or, at Landlord’s option, to the monies deposited under this Agreement as securitylast assignee, if any, of Tenant’s interest hereunder. at the expiration of the Term hereof, and that LICENSOR after Tenant has vacated the Leased Premises. No trust or fiduciary relationship is created herein between Landlord and its successors and assigns will not be bound by any such actual or attempted assignment or encumbranceTenant with respect to the Security Deposit. If LICENSEE cures Landlord transfers the event of default that triggered Leased Premises during the obligation to put up Term hereof, Landlord may pay the $25,000 Security Deposit and is not then to Landlord’s successor in defaultinterest in accordance with Civil Code § 1950.7 or any successor statute, LICENSOR agrees to refund in which event the $25,000 amount put as a Security Deposit within ten days transferring Landlord shall be released from all liability for the return of the date of LICENSEE's requestSecurity Deposit.

Security Deposit. If LICENSEE defaults under any of the terms or conditions Upon execution of this Agreement more than two times during any twelve consecutive months during Lease, Tenant shall provide the term of this Agreementfollowing amount to Landlord, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR be held as a security deposit equal for the reasonable cleaning or repair of damages to the Property upon the expiration or termination of this lease or in case of default by Tenant: $25,000 ________ ("Security Deposit"________ dollars), which . The security deposit shall not exceed two times the monthly rent if the Tenant is under 62 years of age and shall not exceed one month's rent if the Tenant is 62 years of age or older. The security deposit will be held by LICENSOR without interest as security for at the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees following financial institution: ________________________________ Tenant hereby agrees to be liable to Landlord at the expiration or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this AgreementLease for all damages to the Property, except ordinary wear and tear. Following Landlord may hold the security deposit in a non-interest-bearing account. In such case, no interest is due to Tenant and Tenant may not use the security deposit to cover Rent. Landlord may otherwise elect to hold security deposit in an interest-bearing account and allow Tenant to receive certain interest funds, if applicable. Tenant shall still not be permitted to use the security deposit to cover any such application Rent. In case of sale or assignation of the Security DepositLease by Landlord, LICENSEE Tenant's security deposit shall be transferred to the new owner or assignee and Landlord shall be released from liability to Tenant for return of the security deposit. Deductions from the security deposit may be made for the following reasons (this list constitutes examples only and is not intended to be exhaustive): unpaid rent or utilities, late fees, cleaning, key replacement, removing abandoned property, and/or attorneys' fees for proceedings against Tenant. Landlord shall have 30 (thirty) days in which to return the security deposit and/or an itemized list of deductions, if applicable. If Landlord requires deductions which exceed the security deposit, Tenant agrees to pay to LICENSOR on demand the Landlord any overage 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 after receiving a written demand from Landlord. Landlord will first apply the date of demand will besecurity deposit to any non-rent obligations, at LICENSOR's electionsuch as damages, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign or encumberutilities, or attempt to assign or encumber, the monies deposited under this Agreement as securitylate fees, and that LICENSOR and its successors and assigns will not be bound by then apply the security deposit to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestunpaid rent.

Security Deposit. If LICENSEE defaults under any On the Effective Date, Tenant shall deposit with Landlord the Security Deposit as set forth in Paragraph 16 of the terms or conditions Summary of this 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"), which will be held by LICENSOR without interest Basic Lease Terms as security for the full and faithful performance by LICENSEE Tenant of LICENSEE's covenants and all Tenant’s obligations hereunder. No interest shall be paid upon the Security Deposit nor shall Landlord be required to maintain the deposit in a segregated account. The Security Deposit shall not be construed as prepaid Rent. In the event that Tenant shall fail to cure a default under this AgreementLease within the time allowed for cure, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of then Landlord may retain the Security Deposit, upon or a portion thereof, and apply it toward any damages sustained by Landlord, including but not limited to actual damages sustained by the occurrence Landlord by reason of the default of Tenant, including any past due Rent. Upon each such application, Tenant shall, on demand, pay to Landlord the sum so applied, which shall be added to the Security Deposit so that the same shall be restored to the amount first set forth above. In the event of default bankruptcy or other debtor-creditor proceedings, either voluntarily or involuntarily instituted by LICENSEEor against Tenant, LICENSOR maythe Security Deposit shall be deemed to be applied in the following order: to actual damages caused by Tenant beyond ordinary wear and tear, from time obligations and other charges, including any damages sustained by Landlord, other than unpaid Rent, due to timeLandlord for all periods prior to the filing of such proceedings; to accrued and unpaid Rent prior to the filing of such proceeding, without prejudice and thereafter to any actual damages, obligations, other remedy provided in this Agreement or charges and damages sustained by lawLandlord and Rent due the Landlord for all periods subsequent to such filing. In the event of a sale of the Building, use Landlord shall have the right to 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 payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to LICENSOR on demand the amount so applied in order to restore Landlord shall have no further obligation regarding the Security Deposit to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this AgreementDeposit. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 Tenant is not then in defaultdefault under this Lease, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit or any balance thereof shall be returned to Tenant within ten forty-five (45) days after expiration of the date of LICENSEE's requestLease Term or forty-five (45) days after the final day Tenant occupies the Leased Premises.

Security Deposit. If LICENSEE defaults under any of the terms or conditions Resident shall pay to Lessor upon execution of this Agreement more than two times during any twelve consecutive months during Contract the term sum of this Agreement, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit")$ , which will be held by LICENSOR without interest Lessor may deposit or save with its other funds or deposits from other Residents and which Lessor is to retain as security for the full and faithful performance by LICENSEE Resident of LICENSEE's covenants all the covenants, conditions, and obligations under agreements of this AgreementContract. Lessor may, it being expressly understood that without further notice, apply the security deposit on any charges or on damages for the Resident’s failure to perform the said covenants, conditions, and agreements on this Contract, but in no event shall the Lessor be obligated to apply the security deposit in such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults againmanner. Following the payment The Lessor’s right to possession of the Security Deposit, upon the occurrence Premises for nonpayment of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default Rent or for any other damagereason shall not in any event be affected by reason of the fact that the Lessor holds this security deposit. The security deposit shall accrue no interest payable to Resident. If the security deposit is not applied toward the payment of Rent, injuryutilities, expensecleaning, damages, or liability caused to LICENSOR court costs, including attorneys’ fees suffered by such event Lessor by reason of defaultthe Resident’s breach of the covenants, regardless whether such damages or deficiency accrue before or after termination conditions, and agreements of this AgreementContract, the security deposit, or portions thereof, if any due, shall be returned to Resident pursuant to Wyoming statutes. Following any such application In no event is the said security deposit to be returned until and unless the Resident has fully performed the obligations hereunder and has vacated the Premises, and properly cleaned it and delivered the keys and possession to the Lessor. If Resident vacates the Premises prior to the expiration of the Security Depositthis Contract, LICENSEE Resident agrees to pay Lessor, in addition to LICENSOR on demand all other charges and liabilities provided herein, and in addition to and not in lieu of all rights and remedies of Lessor hereunder, liquidated damages equal to the greater of fifty percent (50%) or two (2) month’s rent of the remaining amounts due under Contract to cover the Lessor’s cost of advertising and re-renting the Premises and for the miscellaneous costs and inconveniences experienced by Lessor. Lessor and Resident agree that: (i) the amount so applied in order of liquidated damages collectible under this Contact constitutes a reasonable amount of actual damages incurred by Lessor allocated to restore the Security Deposit to its original amount administrative costs and LICENSEE's failure to do so within ten days expenses by reason of the date of demand will be, at LICENSOR's election, a material Resident’s default under this Agreement. If LICENSEE is Contract; (ii) actual damages allocated to administrative costs and expenses occasioned by Resident’s default hereunder are difficult to determine; and (iii) such amounts are not in default the imposition of this Agreement upon the termination of this Agreement, 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 a penalty by LICENSEE to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestLessor.

Security Deposit. If LICENSEE defaults under any of the terms or conditions Upon execution of this Agreement more than two times during any twelve consecutive months during Lease, Tenant shall provide the term of this Agreementfollowing amount to Landlord, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR be held as a security deposit equal for the reasonable cleaning or repair of damages to the Property upon the expiration or termination of this lease or in case of default by Tenant: $25,000 ________ ("Security Deposit"________ dollars), which . The security deposit shall not exceed two times the monthly rent for unfurnished apartments or three times the monthly rent for furnished apartments. The security deposit will be held by LICENSOR without interest as security for at the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees following financial institution: ________________________________ Tenant hereby agrees to be liable to Landlord at the expiration or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this AgreementLease for all damages to the Property, except ordinary wear and tear. Following Landlord may hold the security deposit in a non-interest-bearing account. In such case, no interest is due to Tenant and Tenant may not use the security deposit to cover Rent. Landlord may otherwise elect to hold security deposit in an interest-bearing account and allow Tenant to receive certain interest funds, if applicable. Tenant shall still not be permitted to use the security deposit to cover any such application Rent. In case of sale or assignation of the Security DepositLease by Landlord, LICENSEE Tenant's security deposit shall be transferred to the new owner or assignee and Landlord shall be released from liability to Tenant for return of the security deposit. Deductions from the security deposit may be made for the following reasons (this list constitutes examples only and is not intended to be exhaustive): unpaid rent or utilities, late fees, cleaning, key replacement, removing abandoned property, and/or attorneys' fees for proceedings against Tenant. Landlord shall have 21 (twenty-one) days in which to return the security deposit and/or an itemized list of deductions, if applicable. If Landlord requires deductions which exceed the security deposit, Tenant agrees to pay to LICENSOR on demand the Landlord any overage 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 after receiving a written demand from Landlord. Landlord will first apply the date of demand will besecurity deposit to any non-rent obligations, at LICENSOR's electionsuch as damages, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign or encumberutilities, or attempt to assign or encumber, the monies deposited under this Agreement as securitylate fees, and that LICENSOR and its successors and assigns will not be bound by then apply the security deposit to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestunpaid rent.

Security Deposit. If LICENSEE defaults under any of the terms or conditions of this Agreement more than two times during any twelve consecutive months during the term of this Agreement, LICENSEE agrees, that in addition Tenant hereby agrees to curing such event of default, it shall pay LICENSOR to Landlord a security deposit equal to of eight thousand four hundred forty dollars and fifty cents ($25,000 ("Security Deposit"8,440.50), which will be held is equal to first month’s Base Rental, on the day this Lease is executed by LICENSOR without interest as security for Tenant (the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the “Security Deposit, upon ”). Upon the occurrence of any event Event of default Default by LICENSEETenant, LICENSOR Landlord may, from time to time, without prejudice to any other remedy provided in this Agreement or by lawremedy, use the Security Deposit to the extent necessary to make good any arrearages arrears of payment owed by LICENSEE to LICENSOR Base Rental or Additional Rental or any amount as to which LICENSEE is in default or for other payment obligation hereunder, including, but not limited to, the cost of any other damage, injury, expense, or liability caused by any Event of Default by Tenant hereunder. Any remaining balance of the Security Deposit shall be returned by Landlord to LICENSOR 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 interest on the Security Deposit, and Landlord may commingle the same with other monies of Landlord. 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 transfer and acknowledgement of receipt of Security Deposit by such event transferee, Landlord shall be relieved of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application all liability to Tenant for the return of the Security Deposit, LICENSEE agrees and Tenant shall look solely to pay to LICENSOR on demand the amount so applied in order to restore new owner or lessor for the return of the Security Deposit to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestDeposit.

Security Deposit. If LICENSEE defaults under any of the terms or conditions Upon execution of this Agreement more than two times during any twelve consecutive months during Lease, Tenant shall provide the term of this Agreementfollowing amount to Landlord, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR be held as a security deposit equal for the reasonable cleaning or repair of damages to the Property upon the expiration or termination of this lease or in case of default by Tenant: $25,000 ________ ("Security Deposit"________ dollars). The security deposit shall not be in excess of two months' Rent, which unless the Rent exceeds $2,000 per month. The security deposit will be held by LICENSOR without interest as security for at the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees following financial institution: ________________________________ Tenant hereby agrees to be liable to Landlord at the expiration or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this AgreementLease for all damages to the Property, except ordinary wear and tear. Following Landlord may hold the security deposit in a non-interest-bearing account. In such case, no interest is due to Tenant and Tenant may not use the security deposit to cover Rent. Landlord may otherwise elect to hold security deposit in an interest-bearing account and allow Tenant to receive certain interest funds, if applicable. Tenant shall still not be permitted to use the security deposit to cover any such application Rent. In case of sale or assignation of the Security DepositLease by Landlord, LICENSEE Tenant's security deposit shall be transferred to the new owner or assignee and Landlord shall be released from liability to Tenant for return of the security deposit. Deductions from the security deposit may be made for the following reasons (this list constitutes examples only and is not intended to be exhaustive): unpaid rent or utilities, late fees, cleaning, key replacement, removing abandoned property, and/or attorneys' fees for proceedings against Tenant. If Tenant has provided proper notice to terminate the tenancy, Landlord shall have 14 (fourteen) days in which to return the security deposit. Otherwise, Landlord shall have 30 (thirty) days. If Landlord requires deductions which exceed the security deposit, Tenant agrees to pay to LICENSOR on demand the Landlord any overage 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 after receiving a written demand from Landlord. Landlord will first apply the date of demand will besecurity deposit to any non-rent obligations, at LICENSOR's electionsuch as damages, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign or encumberutilities, or attempt to assign or encumber, the monies deposited under this Agreement as securitylate fees, and that LICENSOR and its successors and assigns will not be bound by then apply the security deposit to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestunpaid rent.

Security Deposit. If LICENSEE defaults under any Tenant will pay Landlord on the date this Lease is executed by Tenant the Security Deposit set forth in Item 8 of the terms or conditions of this 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"), which will be held by LICENSOR without interest Basic Lease Provisions as security for the full performance of the terms hereof by Tenant. Tenant shall not be entitled to interest thereon and faithful performance by LICENSEE Landlord may commingle such Security Deposit with any other funds of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is Landlord. The Security Deposit shall not be considered an advance payment of license fees rental or a measure of LICENSORLandlord's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event in case of default by LICENSEETenant. If Tenant defaults with respect to any provision of this Lease, LICENSOR Landlord may, but shall not be required to, from time to time, without prejudice to any other remedy provided in remedy, use, apply or retain all or any part of this Agreement or by law, use the Security Deposit to for the extent necessary to make good payment of any arrearages of payment owed by LICENSEE to LICENSOR Rent or any amount as to which LICENSEE is other sum in default or for the payment of any other damage, injury, expense, amount which Landlord may spend or liability caused become obligated to LICENSOR spend by such event reason of Tenant's default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default, regardless whether such damages or deficiency accrue before or after termination including, without limitation, costs and attorneys' fees incurred by Landlord to recover possession of the Premises. If Tenant shall fully and faithfully perform every material provision of this Agreement. Following any such application of the Security DepositLease to be performed by it, LICENSEE agrees to pay to LICENSOR on demand the amount so applied in order to restore the Security Deposit shall be returned to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, LICENSOR agrees to return any remaining balance of such Security Deposit to LICENSEE Tenant within thirty (30) days of after the date of the termination of this AgreementExpiration Date. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE Tenant agrees that it will not assign or encumber, encumber or attempt to assign or encumber, encumber the monies deposited under this Agreement herein as security, the Security Deposit and that LICENSOR Landlord and its successors and assigns will shall not be bound by any such actual or attempted assignment or encumbrance. If LICENSEE cures Regardless of any assignment of this Lease by Tenant, Landlord may return the event of default that triggered the obligation to put up the $25,000 Security Deposit and is not then to the original Tenant, in default, LICENSOR agrees the absence of evidence satisfactory to refund Landlord of an assignment of the $25,000 amount put as a right to receive the Security Deposit within ten days or any part of the balance thereof. In the alternative to a cash Security Deposit, contemporaneously with the execution of this Lease, Tenant shall cause an American bank or financial institution located in Austin, Texas reasonably acceptable to Landlord to issue an irrevocable letter of credit in the amount of the Security Deposit set forth in Item 8 of the Basic Lease Provisions (the "Letter of Credit"), naming Landlord as beneficiary to partially secure the performance of Tenant under the Lease. The Letter of Credit shall be for a term of not less than twelve (12) months. If all or any portion of the Letter of Credit is drawn against by Landlord, Tenant shall within thirty (30) days after demand by Landlord, order the issuer of the Letter of Credit to issue to Landlord at Tenant's expense replacement or supplementary Letters of Credit such that at all times during the term of this Lease (other than such thirty (30) day period), Landlord shall have the ability to draw on one or more Letters of Credit totaling the Security Deposit amount set forth in Item 8 of the Basic Lease Provisions. Landlord shall be entitled to draw on the Letter of Credit one or more times for the reasons and uses provided above applicable to the Security Deposit. Any amount drawn by Landlord shall not be deemed to fix or determine the amounts to which Landlord is entitled under this Lease or otherwise, and Landlord shall be entitled to pursue any remedies provided for in this Lease to the extent Landlord is unable or elects, in its sole and absolute discretion, not to obtain complete or partial satisfaction by drawing upon the Letter of Credit. Tenant shall cause the issuance of a replacement Letter of Credit at least thirty (30) days prior to the expiration date of LICENSEEthe then issued Letter of Credit (such date, the "Reissuance Date"). If Tenant fails to cause the issuance of a replacement Letter of Credit prior to the Reissuance Date, then Landlord shall have the right to draw the full amount of the then issued and outstanding Letter of Credit; provided that such drawing shall not be an Event of Default hereunder and Landlord shall hold such funds as security for the performance of Tenant's request.obligations under this Lease. Landlord shall refund such funds to Tenant upon the earlier to occur of (i) Tenant's delivery of a replacement Letter of Credit and (ii) sixty (60) days after the expiration of this Lease and satisfaction of Tenant's obligations hereunder. If the issuer of the Letter of Credit shall admit in writing its inability to pay its debts generally as they become due, shall file a petition in bankruptcy

Security Deposit. If LICENSEE defaults under any of Landlord acknowledges that it has received the terms or conditions Security Deposit from Tenant, simultaneously with the execution of this 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 Lease. The Security Deposit shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance and observance by LICENSEE Tenant of LICENSEEthe covenants, terms and conditions of this Lease, including, without limitation, the payment of Total Rent, on the part of Tenant to be kept and performed. No interest shall be payable on the Security Deposit, and the Security Deposit need not be held in a segregated account and may be commingled with Landlord's covenants separate funds. It is agreed and obligations under this Agreement, it being expressly understood acknowledged by Tenant that such deposit the Security Deposit is not an advance payment of license fees rent or a measure of LICENSORLandlord's damages if LICENSEE defaults againin the case of default by Tenant. Following the payment of the Security Deposit, upon Upon the occurrence of an Event of Default under this Lease, Landlord may use, apply or retain the whole or any event part of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages required for the payment of payment owed by LICENSEE to LICENSOR all or any amount part or component of Total Rent or any other sum as to which LICENSEE Tenant is in default or for the payment of any other damage, injury, expense, expense or liability caused to LICENSOR resulting from any Event of Default. Use, application or retention of the Security Deposit by such event Landlord shall not prohibit or limit Landlord's exercise of any other remedies Landlord may have for Tenant's default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to Tenant shall pay to LICENSOR Landlord on demand the an amount so applied in order necessary to restore the Security Deposit to its original amount amount. In the event that Tenant shall fully and LICENSEE's failure to do so within ten days faithfully comply with all of the date of demand will beterms, at LICENSOR's electionprovisions, a material default under this Agreement. If LICENSEE is not in default covenants and conditions of this Agreement upon Lease, the termination Security Deposit shall be returned to Tenant within thirty (30) days after the Expiration Date and after delivery of this Agreementpossession of the Premises to Landlord in accordance with the terms hereof. Upon every sale or lease of the Building, LICENSOR agrees Landlord shall be released from all liability for the return of the Security Deposit, and Tenant shall look to return any remaining balance of such the new landlord for its return, so long as the transferring Landlord assigns or transfers the Security Deposit to LICENSEE within thirty days of the date of acquiring landlord or provides the termination of this Agreementacquiring landlord a credit for same. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from the The Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will shall not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign assigned or encumber, or attempt to assign or encumber, the monies deposited under this Agreement as securityencumbered by Tenant, 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestencumbrance shall be void.

Security Deposit. If LICENSEE defaults under any of the terms or conditions of this 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 The Security Deposit shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest Landlord as security for the full and faithful performance by LICENSEE of LICENSEETenant's covenants and obligations under this Agreement, it being expressly understood that such deposit Lease. The Security Deposit is not an advance payment of license fees rental deposit or a measure of LICENSORLandlord's damages if LICENSEE defaults againin case of Tenant's default. Following the payment Upon each occurrence of a Default, Landlord may use all or part of the Security DepositDeposit to pay delinquent payments due under this Lease, upon and the occurrence cost of any event of default damage, injury, expense or liability caused by LICENSEE, LICENSOR may, from time to timesuch Default, without prejudice to any other remedy provided in this Agreement herein or provided by law, . Upon any such use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR all or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application portion of the Security Deposit, LICENSEE agrees to Tenant shall pay to LICENSOR Landlord on demand the amount so applied in order to that will restore the Security Deposit to its original amount amount. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and LICENSEEother charges due Landlord for periods prior to the filing of such proceedings. Landlord's failure obligation respecting the Security Deposit is that of a debtor, not a trustee; no interest shall accrue thereon. The Security Deposit shall be the property of Landlord, but the balance remaining, if any, after Tenant's obligations under this Lease have been completely fulfilled shall be paid to do so within ten days Tenant. Landlord shall be released from any obligation with respect to the Security Deposit upon transfer of this Lease and the date Premises to a person or entity assuming Landlord's obligations under this Section 6. Tenant hereby waives the provisions of demand will beany law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant 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 LICENSORLandlord's electionoption, a material default under this Agreement. If LICENSEE is not in default to the last assignee of this Agreement upon Tenant's interest hereunder) within 60 days after the expiration or earlier termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestLease.

Security Deposit. If LICENSEE defaults under any of The Security Deposit shall be due and payable to Landlord within ten (10) business days after the terms or conditions execution of this Agreement more Lease (but in no event later than two times during the commencement of 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"Early Occupancy), which will and shall be held by LICENSOR without interest Landlord as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit Tenant’s obligations. The Security Deposit is not an advance payment of license fees rental deposit, or a measure of LICENSOR's Landlord’s damages if LICENSEE defaults againin an Event of Default (as hereinafter defined). Following the payment Upon any Event of Default, Landlord may use all, or part of, the Security DepositDeposit to pay delinquent payments due under this Lease, upon and the occurrence cost of any event damage, injury, expense or liability caused by such Event of default by LICENSEE, LICENSOR may, from time to timeDefault, without prejudice to any other remedy provided in this Agreement herein or provided by law, use the Security Deposit to the extent necessary to make good any arrearages . Tenant shall pay Landlord within ten (10) business days of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to LICENSOR on Landlord’s demand the amount so applied in order to that will restore the Security Deposit to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreementamount. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 Xxxxxxxx’s obligation respecting the Security Deposit will in no event release LICENSEE from being in default is that of a debtor, not a trustee. The Security Deposit shall be the property of Landlord, and any remaining amount of the Security Deposit shall be paid to Tenant when Tenant’s obligations under the terms of this AgreementLease have been fulfilled. LICENSOR will Landlord shall not be required to keep this the Security Deposit separate from its general fundsaccounts, and no interest shall accrue thereon. LICENSEE agrees Landlord shall be released from any obligation with respect to the Security Deposit upon transfer of this Lease and the Premises to a person or entity assuming Landlord’s obligations. The Security Deposit under the Lease shall be USD$150,000.00, in the form of an unconditional, irrevocable letter of credit from a bank reasonably acceptable to Landlord 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 will does not assign or encumberexpire until 60 days following the Expiration Date or, or attempt if it is for less than the full Lease Term, shall be renewed by Tenant at least 60 days prior to assign or encumber, its expiration during the monies deposited under this Agreement as security, and Lease Term. The Letter of Credit shall provide that LICENSOR and it may be drawn down upon by Landlord at any time Landlord delivers its successors and assigns will not be bound by any such actual or attempted assignment or encumbrancesite draft to the bank. If LICENSEE cures Landlord sells or conveys the Premises, Tenant shall, at Xxxxxxxx’s request, cooperate in having the Letter of Credit transferred to the purchaser and Landlord agrees to notify Tenant in the event of default that triggered such transfer. If the obligation Letter of Credit is ever drawn upon by Landlord pursuant to put up the $25,000 Security Deposit and is not then in defaultterms of the Lease, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit 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, in the event Tenant fails to renew the Letter of Credit in accordance with the 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 date Lease, an immediate Event of LICENSEE's requestDefault 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. If LICENSEE defaults under any On or before the Commencement Date, Tenant shall deliver to Landlord the Security Deposit described in Article 1 in the form of the terms or conditions of this 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 cash. The Security Deposit shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest Landlord as security for the full and faithful performance of this Lease by LICENSEE Tenant of LICENSEE's all of the terms, covenants and obligations conditions of this Lease. If there is an Event of Default by Tenant with respect to any provisions of this Lease (including but not limited to the payment of Rent); if Tenant files a petition in bankruptcy, insolvency, reorganization, dissolution or liquidation under any law; makes an assignment for the benefit of its creditors; consents to or acquiesces in the appointment of a receiver of itself or the Premises, or if a court of competent jurisdiction enters an order or judgment appointing a receiver of Tenant or the Premises; or if a court of competent jurisdiction enters an order or judgment approving a petition filed against Tenant under any bankruptcy, insolvency or liquidation law, then in any such case Landlord may, without waiving any of Landlord’s other rights or remedies under this AgreementLease, it being expressly understood that such deposit apply the Security Deposit in whole or in part to remedy any failure by Tenant to pay any sums due under this Lease, to repair or maintain the Premises, to perform any other terms, covenants or conditions contained in this Lease, to compensate Landlord for any loss or damages which Landlord may suffer as a result thereof, including without limitation any lost rent to which Landlord is not an advance payment entitled in the event the Lease terminates or is rejected as a result of license fees or a measure any of LICENSOR's damages if LICENSEE defaults againthe foregoing. Following the payment Should Landlord so apply any portion of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use Tenant shall replenish the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to 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 (10) days of the date of after written demand will beby Landlord, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will Landlord shall not be required to keep this the Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. LICENSEE agrees that it will not assign or encumberIf Tenant has fully complied with all of the terms, or attempt to assign or encumbercovenants and conditions of this Lease, the monies deposited under Security Deposit (less any amount applied to cleaning, repairing damage to the Premises caused by Tenant or otherwise applied in accordance with the provisions of this Agreement as security, Lease) shall be returned to Tenant after the Expiration Date and that LICENSOR and its successors and assigns will not be bound after delivery of possession of the Premises to Landlord in the manner required by any such actual or attempted assignment or encumbrancethis Lease. If LICENSEE cures In the event of default that triggered any Assignment of this Lease by Tenant, such Assignment shall be deemed to include an assignment of Tenant’s rights to recover the obligation Security Deposit, and Landlord’s agreement to put up return the $25,000 Security Deposit shall run only to Tenant’s assignee and is not then to the original Tenant. Tenant hereby expressly waives the provisions of California Civil Code Section 1950.7 or under any similar law, statute or ordinance now or hereafter in default, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requesteffect.

Security Deposit. If LICENSEE defaults under any of Tenant shall deposit with Landlord the terms or conditions amount set forth in Article 1 (“Security Deposit”), upon Tenant’s execution and submission of this 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 Lease. The Security Deposit shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest serve as security for the prompt, full and faithful performance by LICENSEE Tenant of LICENSEE's covenants and obligations the provisions of this Lease. If Tenant commits a Default, or owes any amounts to Landlord upon the expiration or earlier termination of this Lease (including estimated amounts under this AgreementArticle 3, it being expressly understood that such deposit is not an advance which shall remain subject to reconciliation against actual amounts as further provided therein), Landlord may use or apply the whole or any part of the Security Deposit for the payment of license fees Tenant’s obligations hereunder. The use or a measure application of LICENSOR's damages if LICENSEE defaults againthe 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. Following In the payment event the Security Deposit is reduced by such use or application, Tenant shall deposit with Landlord within ten (10) days after notice, an amount sufficient to restore the full amount of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to 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 date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will Landlord shall not be required to keep this the Security Deposit separate from its Landlord’s general fundsfunds or pay interest on the Security Deposit. LICENSEE agrees that it will Any remaining portion of the Security Deposit not assign used or encumberapplied hereunder shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after Tenant (or such assignee) has vacated the Premises in accordance with Article 23 and this obligation shall survive termination of the Lease. 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 assign or encumber, do so shall be null and void. Landlord shall provide Tenant with written notice of 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 transfer of 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestany other party.

Security Deposit. If LICENSEE defaults under any Landlord acknowledges receipt from Tenant of the terms or conditions of this Agreement more than two times during any twelve consecutive months during Security Deposit in the term of this Agreement, LICENSEE agrees, that amount set forth in addition to curing such event of default, it Section lh. Landlord shall pay LICENSOR a security deposit equal to $25,000 ("retain the Security Deposit"), which will be held by LICENSOR without interest Deposit as security for the full and faithful performance by LICENSEE Tenant of LICENSEE's covenants all of its Lease obligations. The Security Deposit shall not bear interest and may be commingled with other funds. If Tenant at any time fails to perform any of its obligations under this AgreementLease beyond any applicable cure period, it being expressly understood that such deposit is not an advance including, without limitation, its Rent or other payment of license fees obligations, its restoration obligations, or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Depositits insurance and indemnity obligations, upon the occurrence of any event of default by LICENSEEthen Landlord, LICENSOR may, from time to timeat its option, without prejudice to any other remedy provided in this Agreement or by law, use apply the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR (or any amount as portion) to which LICENSEE is in cure Tenant’s default or to pay for damages caused by Tenant’s default. If the Lease has been terminated, then Landlord may apply the Security Deposit (or any other damage, injury, expense, or liability caused to LICENSOR by such event portion) against the damages incurred as a consequence of default, regardless whether such damages or deficiency accrue before or after termination of this AgreementTenant’s breach. Following any such The application of the Security Deposit, LICENSEE agrees to pay to 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 date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is shall not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in limit Landlord’s remedies for default under the terms of this AgreementLease. LICENSOR will not be If Landlord depletes the Security Deposit, in whole or in part, prior to the Expiration Date or any termination of this Lease, then Tenant shall restore immediately the amount so used by Landlord following receipt of notice. Within 30 days after the expiration or earlier termination date of this Lease, Landlord shall refund to Tenant any unused portion of the Security Deposit after first deducting the amounts, if any, necessary to cure any outstanding default of Tenant, to pay any outstanding damages for Tenant’s breach of the Lease, or to restore the Premises to the condition to which Tenant is required to keep this leave the Premises upon the expiration or termination of the Lease. Landlord shall deliver the unused portion of the 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 encumbranceTenant’s Notice Address set forth in Section 11 above. If LICENSEE cures Tenant’s Notice Address is the event address for the Premises, then Tenant shall notify Landlord in writing of default that triggered a forwarding address to which Landlord should send the obligation to put up Security Deposit. Tenant may not credit any unused portion of the $25,000 Security Deposit and is not then in default, LICENSOR agrees to refund against Rent owed under the $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestLease.

Security Deposit. If LICENSEE defaults under any of the terms or conditions Upon execution of this Agreement more than two times during any twelve consecutive months during Lease, Tenant shall provide the term of this Agreementfollowing amount to Landlord, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR be held as a security deposit equal for the reasonable cleaning or repair of damages to $25,000 ("Security Deposit"the Property upon the expiration or termination of this lease or in case of default by Tenant: $ ( dollars), which . The security deposit shall not be in excess of two months' Rent for an initial year of Tenancy and one month's rent for subsequent years of Tenancy. The security deposit will be held by LICENSOR without interest as security for at the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees following financial institution: Tenant hereby agrees to be liable to Landlord at the expiration or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this AgreementLease for all damages to the Property, except ordinary wear and tear. Following Landlord may hold the security deposit in a non-interest-bearing account. In such case, no interest is due to Tenant and Tenant may not use the security deposit to cover Rent. Landlord may otherwise elect to hold security deposit in an interest-bearing account and allow Tenant to receive certain interest funds, if applicable. Tenant shall still not be permitted to use the security deposit to cover any such application Rent. In case of sale or assignation of the Security DepositLease by Landlord, LICENSEE Tenant's security deposit shall be transferred to the new owner or assignee and Landlord shall be released from liability to Tenant for return of the security deposit. Deductions from the security deposit may be made for the following reasons (this list constitutes examples only and is not intended to be exhaustive): unpaid rent or utilities, late fees, cleaning, key replacement, removing abandoned property, and/or attorneys' fees for proceedings against Tenant. Landlord shall have 30 (thirty) days in which to return the security deposit and/or an itemized list of deductions, if applicable. If Landlord requires deductions which exceed the security deposit, Tenant agrees to pay to LICENSOR on demand the Landlord any overage 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 after receiving a written demand from Landlord. Landlord will first apply the date of demand will besecurity deposit to any non-rent obligations, at LICENSOR's electionsuch as damages, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign or encumberutilities, or attempt to assign or encumber, the monies deposited under this Agreement as securitylate fees, and that LICENSOR and its successors and assigns will not be bound by then apply the security deposit to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestunpaid rent.

Security Deposit. If LICENSEE defaults under any Upon the earlier of (i) execution by Xxxxxx of this Lease, or (ii) before occupying the terms or Premises, Tenant shall deposit with Landlord the sum set forth in the Indenture (the “Security Deposit”) as security for Xxxxxx’s faithful performance of all the terms, covenants and conditions of this 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"), which Lease. Landlord will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of hold the Security Deposit, upon and at Landlord’s option may commingle the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice Security Deposit with other funds. Tenant shall not be entitled to any other remedy provided in this Agreement interest on the Security Deposit. Landlord may apply the Security Deposit or any part thereof to compensate Landlord for any damage, loss, cost or expense incurred due to such default and, within ten (10) days of demand by lawLandlord, use Tenant shall restore the Security Deposit to the extent necessary original sum deposited. In addition to make good any arrearages other rights available to Landlord hereunder, the Security Deposit shall be forfeited if Tenant fails to occupy the Premises and conduct business therein for the full Term of payment owed by LICENSEE this Lease, or if this Lease should for any reason whatsoever be terminated prior to LICENSOR the Expiration Date of the Term or any amount as to which LICENSEE is in default or for any other damage, injury, expenserenewal thereof. The Security Deposit, or liability caused the remaining balance thereof, will be refunded to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after Tenant upon termination of this AgreementLease, provided that Tenant has made all payments and performed all terms required by this Lease. Following any such application of the Security Deposit, LICENSEE agrees to pay to LICENSOR on demand the amount so applied in order to restore Landlord may deliver the Security Deposit to its original amount any purchaser or successor of Xxxxxxxx’s interest in this Lease or to the Premises, and LICENSEE's failure thereafter Landlord will be discharged from any further liability with respect to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this AgreementDeposit. LICENSOR will Landlord shall not be required to keep this pay Tenant interest on the Security Deposit. Tenant and Landlord acknowledge and agree that their rights and remedies with respect to the 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 shall be as provided in this Agreement as securityLease, and that LICENSOR each of Landlord 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 $25,000 amount put as a Security Deposit within ten days Tenant hereby waive Section 1950.7 of the date of LICENSEE's requestCalifornia Civil Code and any and all other similar statutes now existing or hereafter enacted.

Security Deposit. If LICENSEE defaults under any of Tenant shall, at the terms or conditions of time that Tenant executes and delivers this Agreement more than two times during any twelve consecutive months during the term of this AgreementLease to Landlord, LICENSEE agrees, that in addition pay to curing such event of default, it shall pay LICENSOR Landlord a security deposit equal to $25,000 ("the “Security Deposit"), which will be held by LICENSOR without interest as security for ”) in the full and faithful performance by LICENSEE of LICENSEE's covenants and amount set forth in Exhibit 1 securing Tenant’s obligations under this Agreement, it being expressly understood that such deposit is not an advance payment Lease. In no event shall the Security Deposit be deemed to be a prepayment of license fees rent or a measure of LICENSOR's damages if LICENSEE defaults againliquidated damages. Following Xxxxxx agrees that no interest shall accrue on the payment Security Deposit and that Landlord shall have the right to commingle the Security Deposit with other funds of Landlord. In the event that Tenant shall default in any of its obligations under this Lease, 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 promptly, upon notice from Landlord, pay to Landlord any amount so applied by Landlord in order to restore the full amount of the Security Deposit. In addition, in the event of a termination based upon the occurrence default of any event Tenant under this Lease, or a rejection of default by LICENSEEthis Lease pursuant to the provisions of the Federal Bankruptcy Code, LICENSOR may, Landlord 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 Xxxxxxxx’s election, be applied first to any unpaid rent and other remedy provided in this Agreement charges which were due prior to the filing of the petition for protection under the Federal Bankruptcy Code. The application of all or by law, use any part of the Security Deposit to the extent necessary to make good any arrearages obligation or default of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for Tenant under this Lease shall not deprive Landlord of any other damage, injury, expense, rights or liability caused to LICENSOR remedies Landlord may have or constitute a waiver by such event of default, regardless whether such damages or deficiency accrue before or after termination of this AgreementLandlord. Following any such application of the Security Deposit, LICENSEE agrees to pay to 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 date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE Provided that Tenant is not in default of any of its obligations under this Agreement upon Lease at the termination of this Agreement, LICENSOR agrees to return any remaining balance of such Security Deposit to LICENSEE within thirty days expiration of the date Term, Landlord shall refund to Tenant any portion of the termination of this Agreement. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 which Landlord is not then in default, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestholding.

Security Deposit. If LICENSEE defaults under any of Concurrently with the terms or conditions execution of this Agreement more than two times during any twelve consecutive months during the term of this AgreementLease, LICENSEE agrees, that in addition to curing such event of default, it Tenant shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of Landlord the Security Deposit, in immediately available funds. The Security Deposit may be applied by Landlord to cure, in whole or part, any Default of Tenant under this Lease, and upon the occurrence notice by Landlord of any event of default by LICENSEEsuch application, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use Tenant shall replenish the Security Deposit in full by paying to Landlord within ten (10) days following receipt of written demand from Landlord the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreementso applied. Following any such Landlord’s application of the Security Deposit, LICENSEE agrees Deposit shall not constitute a waiver of Tenant’s default to pay to LICENSOR on demand the amount so applied in order to restore extent that the Security Deposit does not fully compensate Landlord for all losses, damages, costs and expenses incurred by Landlord in connection with such default and shall not prejudice any other rights or remedies available to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default Landlord under this AgreementLease or by Law. If LICENSEE is Landlord shall not in default of this Agreement upon the termination of this Agreement, LICENSOR agrees to return pay 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 interest on the Security Deposit will in no event release LICENSEE from being in default under the terms of this AgreementDeposit. LICENSOR will Landlord shall not be required to keep this the Security Deposit separate from its general fundsaccounts. LICENSEE The Security Deposit shall not be deemed an advance payment of Rent or a measure of damages for any default by Tenant under this Lease, nor shall it be a bar or defense of any action that Landlord may at any time commence against Tenant. In the absence of evidence satisfactory to Landlord of an assignment of the right to receive the Security Deposit or the remaining balance thereof, Landlord may return the Security Deposit to the original Tenant, regardless of one or more assignments of this Lease. Upon the transfer of Landlord’s interest under this Lease, Landlord’s obligation to Tenant with respect to the Security Deposit shall terminate upon the date Landlord transfers to the transferee of the Security Deposit, or any balance thereof, and such transferee assumes all of Landlord’s obligations under this Lease in writing, including, without limitation, those relating to the Security Deposit. If Tenant shall fully and faithfully comply with all the terms, provisions, covenants, and conditions of this Lease, the Security Deposit, or any balance thereof, shall be returned to Tenant within thirty (30) days after Landlord recovers possession of the Premises. Tenant hereby waives any and all rights of Tenant under the provisions of Section 1950.7 of the California Civil Code or other Law regarding the uses to which security deposits may be applied. If, upon the expiration of the sixth (6th) Lease Year, all of the following are true: a) all Rent due has been paid, b) Tenant is not in Default hereunder, c) Tenant’s net worth and liquidity, as calculated pursuant to GAAP, are each not materially less than they were as of the Date of Lease, Landlord agrees that it will not assign or encumberthe Security Deposit amount shall be reduced by fifty percent (50%), or attempt to assign or encumber, the monies deposited under this Agreement as securitybecome a revised total of $718,789.00, and that LICENSOR and its successors and assigns will not the difference of $718,789.00 shall be bound by returned to Tenant within ten (10) days following the expiration of the sixth (6th) Lease Year. Failure of any such actual or attempted assignment or encumbrance. If LICENSEE cures of the event above to be true at the end of default that triggered the obligation to put up sixth (6th) Lease Year shall mean the $25,000 Security Deposit and is not then shall remain unchanged in default, LICENSOR agrees to refund amount for the $25,000 amount put as a Security Deposit within ten days balance of the date of LICENSEE's requestLease Term.

Security Deposit. If LICENSEE defaults under any Within ten (10) days of the terms or conditions Effective Date, Tenant shall deposit with Landlord the Security Deposit as set forth in Item 13 of this Agreement more than two times during any twelve consecutive months during the term Summary 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"), which will be held by LICENSOR without interest Basic Lease Terms as security for the full and faithful performance by LICENSEE Tenant of LICENSEE's covenants all Tenant’s obligations hereunder. No interest shall be paid upon the Security Deposit nor shall Landlord be required to maintain the deposit in a segregated account. The Security Deposit shall not be construed as prepaid Rent. In the event that Tenant shall default in the full and obligations under this Agreementfaithful performance of any of the terms hereof, it being expressly understood that such deposit is not an advance payment of license fees then Landlord may either retain the Security Deposit as liquidated damages, or a measure of LICENSOR's portion thereof, for damages if LICENSEE defaults again. Following caused by Tenant beyond ordinary wear and tear, or Landlord may retain the payment same and apply it toward any damages sustained by Landlord, including but not limited to actual damages sustained by the Landlord by reason of the default of Tenant, including any past due Rent. Upon each such application, Tenant shall, on demand, pay to Landlord the sum so applied, which shall be added to the Security Deposit, upon Deposit so that the occurrence of any same shall be restored to the amount first set forth above. In the event of default bankruptcy or other debtor-creditor proceedings, either voluntarily or involuntarily instituted by LICENSEEor against Tenant, LICENSOR maythe Security Deposit shall be deemed to be applied in the following order: to actual damages caused by Tenant beyond ordinary wear and tear, from time obligations and other charges, including any damages sustained by Landlord, other than unpaid Rent, due to timeLandlord for all periods prior to the filing of such proceedings; to accrued and unpaid Rent prior to the filing of such proceeding, without prejudice and thereafter to any actual damages, obligations, other remedy provided in this Agreement or charges and damages sustained by lawLandlord and Rent due the Landlord for all periods subsequent to such filing. In the event of a sale of the Land and the Building, use Landlord shall transfer the Security Deposit to the extent necessary buyer, and shall confirm the same to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to Tenant in writing, after which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of transfer and written confirmation Landlord shall have no further obligation regarding the Security Deposit. Notwithstanding the foregoing, LICENSEE agrees to pay to LICENSOR on demand the amount and 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 date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE long as Tenant is not in default of this Agreement Lease beyond any applicable cure period, Landlord shall return to Tenant (or, at Tenant’s option, or apply to subsequent payments of Rent due hereunder) a portion of the Security Deposit in the amount of Sixty Thousand and 00/100 Dollars ($60,000.00) upon the termination first anniversary of this Agreement, LICENSOR agrees to return any the Commencement Date and also upon the date that is eighteen (18) months after the Commencement Date. The 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 will in no event release LICENSEE from being in default under shall be held until the expiration of the Lease Term. If Tenant fully and faithfully complies with all of the terms of this Agreement. LICENSOR will not be required to keep this hereof, the Security Deposit separate from its general funds. LICENSEE agrees that it will not assign or encumber, or attempt any balance thereof shall be returned 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 $25,000 amount put as a Security Deposit Tenant within ten thirty (30) days after expiration of the date of LICENSEE's requestLease Term or thirty (30) days after the final day Tenant occupies the Premises.

Security Deposit. If LICENSEE defaults under any of Tenant does not elect to deposit the terms or conditions L-C, then Tenant shall, concurrent with Tenant’s execution of this Agreement more than two times during any twelve consecutive months during the term of this AgreementLease, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR deposit with Landlord a security deposit equal to $25,000 ("the “Security Deposit"), which will ”) in the amount set forth in Section 10 of the Summary. The Security Deposit shall be held by LICENSOR without interest Landlord as security for the full and faithful performance by LICENSEE Tenant of LICENSEE's covenants all the terms, covenants, and obligations under conditions of this AgreementLease to be kept and performed by Tenant during the Lease Term. If Tenant defaults (beyond any applicable notice and cure periods) with respect to any provisions of this Lease, it being expressly understood that such deposit is including, but not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following limited to, the provisions relating to the payment of the Security DepositRent, upon the occurrence of any event of default by LICENSEE, LICENSOR Landlord may, from time to timebut shall not be required to, without prejudice to use, apply or retain all or any other remedy provided in this Agreement or by law, use part of the Security Deposit to for the extent necessary to make good payment of any arrearages of payment owed by LICENSEE to LICENSOR Rent or any amount as other sum in default, or to which LICENSEE is in default or compensate Landlord for any other damage, injury, expense, actual loss or liability damage caused to LICENSOR by such event of Tenant’s default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following If any such application portion of the Security DepositDeposit is so used or applied, LICENSEE agrees to pay to LICENSOR on Tenant shall, within ten (10) business days after written demand the therefor, deposit cash with Landlord in an amount so applied in order sufficient to restore the Security Deposit to its original amount amount, and LICENSEE's Tenant’s failure to do so within ten days of the date of demand will be, at LICENSOR's election, shall be a material default under this AgreementLease. If LICENSEE The Security Deposit, or any balance thereof, shall be returned to Tenant within sixty (60) days following the expiration of the Lease Term; provided Tenant has cured any outstanding defaults or, if not, Landlord shall return the Security Deposit less amounts required to cure outstanding defaults. Tenant shall not be entitled to any interest on the Security Deposit. Tenant hereby waives all provisions of law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage to which Landlord is entitled to under the Lease, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant to the extent permitted under the Lease. In the event of 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. Notwithstanding anything to the contrary contained in this Article 20 or Section 10 of the Summary, in the event that Tenant, at the expiration of the twenty-fourth (24th) month of the initial Lease Term (“Reduction Date”), is not in default of any of its obligations under this Agreement upon Lease (beyond the termination expiration of this Agreementall applicable notice and cure periods) and Landlord has not made any application of the Security Deposit prior to the Reduction Date, LICENSOR agrees to return any remaining balance Landlord shall reduce the amount of such the 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 an amount equal to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign or encumberOne Million Five Hundred Thirty-Four Thousand Two Hundred Seven and 50/100 Dollars ($1,534,207.50) and Landlord shall, 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 $25,000 amount put as a Security Deposit within ten (10) days of after the date of LICENSEE's requestReduction Date, refund to Tenant an amount equal to Seven Hundred Sixty-Seven Thousand One Hundred Three and 70/100 Dollars ($767,103.70).

Security Deposit. If LICENSEE defaults under Tenant shall receive a comprehensive Move-­‐In and Move-­‐Out Inspection Report (The “Inspection Report” -­‐ attached hereto as Exhibit “A”) which lists for Tenant’s permanent retention any existing damages. Tenant is entitled to inspect the Residence to ascertain the accuracy of the terms Inspection Report prior to taking occupancy, and Tenant shall either sign the Inspection Report or conditions state specifically in writing the items listed therein to which Tenant dissents, and Tenant shall sign such statement of this Agreement more than two times during any twelve consecutive months during dissent. No such written report shall constitute a request for repairs within the term meaning of this AgreementParagraph 17 of the Lease. Upon Tenant's receipt of the Inspection Report, LICENSEE agrees, that in addition the Reservation Fee will automatically be converted to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 (the "Security Deposit"), which will be held by LICENSOR without interest ) in the amount stated above as security for the full and faithful performance and observance by LICENSEE Tenant of LICENSEEeach and every term and covenant of this Lease, including, without limitation, the payment of Rent. The Security Deposit is being held in Escrow Account No. 0000000 at The National Bank of Georgia, Athens, Georgia maintained by Agent. Agent may, but is not obligated to, maintain such funds in an interest bearing account. Any interest accruing shall become the property of Agent. In the event of a sale or other conveyance of the Residence, Landlord shall be entitled to transfer the Security Deposit (or Reservation Fee) to the party who acquires the Residence, and from and after such transfer, Landlord shall be released of any liability with respect thereto. Before Tenant may occupy the Residence, the full Security Deposit and first month's covenants Rent indicated above must have been received by Landlord. The Security Deposit is not part of Rent and obligations under consequently cannot be deducted from the final month’s Rent due hereunder. The provisions relating to the Security Deposit are for the protection of Landlord, and are in addition to and not in limitation of Landlord’s other remedies set forth in this AgreementLease or at law, it being expressly understood that Tenant is completely responsible for Rent for the entire Lease Term and for any and all damages to the Residence or otherwise, all as provided herein, and that the Security Deposit may be set off against the total claims of Landlord and shall not constitute Landlord’s exclusive remedy. Further, Landlord can retain as much of the Security Deposit as is necessary to return the Residence to its original state when occupancy began, ordinary wear and tear excepted, in accordance with § 410 of the South Carolina Residential Landlord and Tenant Act, S.C. Code §27-­‐40-­‐10, et seq. Upon Tenant’s surrendering possession of the Residence upon the termination or expiration of this Lease, Tenant and Landlord shall jointly inspect the Residence and complete the Move-­‐Out Inspection portion of the Inspection Report, listing any damage done to the Residence during the Lease Term which is the basis for any charge against the Security Deposit, and the estimated dollar value of such deposit is not damage. Landlord shall provide to Tenant, either prior to move-­‐out inspection or at the time of move-­‐out inspection, an advance payment itemized list of license fees anticipated costs for damage repair and work related to making the Residence ready for new occupancy. Tenant acknowledges that the extent of any necessary repairs or a measure work may vary within reason and such variations could increase or reduce the final cost of LICENSOR's damages or work billed to Tenant’s Security Deposit. Tenant agrees to leave all power, water and gas (if LICENSEE defaults againapplicable) on until the Termination Date, and the cost of having such utilities turned on to perform the inspection shall be borne by Tenant. Following Landlord and Tenant shall sign the payment Inspection Report; however, if Tenant refuses to sign the Inspection Report, Tenant must state specifically in writing the items on the Inspection Report to which Tenant dissents and shall sign the statement of dissent and deliver the same to Landlord in person or via certified United States Postal Service. Landlord shall deduct from the Security Deposit sums sufficient to compensate Landlord for the following items prior to returning the Security Deposit or any portion thereof to Tenant: (i) any failure to comply with the move-­‐out procedures (outlined in Paragraph 7 the “Move-­‐Out Procedures”), (ii) any damages to the Residence in excess of normal wear and tear, (iii) any damages to the Residence due to the negligence, carelessness, accident or abuse of Tenant, (iv) any unpaid sums due to Landlord under the terms of this Lease, including without limitation, Rent, late charges, utilities, returned or dishonored check charges, unpaid damage claims, pet fines, key replacement charges, charges for removing, packing and storing abandoned, seized or lawfully removed property, court costs and any actual damages caused by any breach of this Lease by Tenant, and (v) any noncompliance by Tenant with § 510 of the South Carolina Residential Landlord and Tenant Act. After deduction of the items specified in the immediately preceding sentence, the balance of the Security Deposit, upon if any, together with a written, itemized accounting of deductions shall be mailed by first class mail to Tenant no later than thirty (30) days after the occurrence termination of this Lease or the surrender and acceptance of the Residence, whichever occurs later. Tenant shall notify Landlord in writing at the time of move-­‐out inspection of Tenant’s forwarding address in order to enable Landlord to return the statement required with respect to the Security Deposit and any appropriate return of any event portion of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to Tenant. In the extent necessary to make good any arrearages event that Tenant is comprised of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damagemore than one individual, injury, expense, or liability caused to LICENSOR by such event the refund of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application the portion of the Security Deposit, LICENSEE agrees Deposit shall be returned to pay each resident equally without regard to LICENSOR on demand the amount so applied in order to restore which Tenant paid the Security Deposit and without regard to its original amount and LICENSEE's failure which Tenant’s conduct resulted in any deductions there from. Refunds shall be mailed to do so within ten days of each Tenant at the date of demand will be, at LICENSOR's election, a material default under this Agreementforwarding address given to Landlord. If LICENSEE is Tenant has not supplied Landlord with the correct forwarding address, Tenant shall pay all costs incurred by Landlord in default of this Agreement upon the termination of this Agreement, 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 reissuing the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestDeposit.

Security Deposit. If LICENSEE defaults under any of the terms or conditions Tenant shall, concurrently with its execution and delivery of this Agreement more than two times during any twelve consecutive months during First Amendment, pay to Landlord, in cash, the term amount of this Agreement, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR $33,000.00 as and for a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE Tenant of LICENSEE's covenants each and obligations under this Agreementevery term, it being covenant and condition of the Lease, as amended hereby. Tenant shall not be entitled to any interest on the security deposit. It is expressly understood and agreed that such deposit is will not be deemed to be an advance payment of license fees rental deposit or a measure of LICENSOR's Landlord’s damages if LICENSEE defaults againin case of Tenant’s default. Following Actions by Landlord against Tenant for breach of the Lease, as amended hereby, shall in no way be limited or restricted by the amount of the security deposit and neither the payment of such security deposit to Landlord nor Landlord’s election to resort to such deposit in the Security Depositevent of a default hereunder shall be deemed a waiver of any other rights, upon or constitute an election of remedies, by Landlord. Upon the occurrence of any event of default by LICENSEETenant, LICENSOR may, from time to timeLandlord shall have the right, without prejudice to any other remedy provided in this Agreement or by lawremedy, to use the Security Deposit security deposit, or portions thereof, to the extent necessary to make good pay any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for Rent, and any other damage, injury, injury or expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of all or any portion of the Security Depositsecurity deposit, LICENSEE agrees to Tenant shall pay to LICENSOR Landlord, on demand demand, the amount so applied in order to restore the Security Deposit security deposit to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreementamount. If LICENSEE Tenant is not in default at the expiration of this Agreement upon the Term or the termination of this AgreementLease, LICENSOR agrees to return any remaining balance of the security deposit not so used by Landlord shall be applied, first, to the Note “A” Accrued Amount payable by Tenant, if any such Security Deposit amount then remains payable, second, to LICENSEE within thirty days any other Rent payable under the Lease, as amended hereby, that is then outstanding, and, third, to any other liabilities of Tenant to Landlord. If Landlord transfers an interest in the Premises during the Term, Landlord may assign the security deposit to the transferee, and, in such event, Landlord shall thereafter have no further liability to Tenant for the security deposit. Notwithstanding the foregoing, so long as no event of default is then subsisting (and no event or circumstance that would become an event of default with the giving of notice or the passage of time has then occurred), then at such time as the aggregate of the date Payable Amount and the Note “A” Accrued Amount remaining to be paid by Tenant is equal to or less than the security deposit then held by Landlord, Tenant may apply the security deposit to such Payable Amount and Note “A” Accrued Amount remaining to be paid. At the expiration of the termination Term of this Agreement. LICENSOR's deduction the Lease and the surrender of the Premises to Landlord in accordance with the applicable terms and provisions of the Lease, Landlord shall refund to Tenant any amounts owed by LICENSEE portion of the security deposit not then applied pursuant to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's request.Section

Security Deposit. If LICENSEE defaults under any of the terms or conditions Tenant shall deposit concurrently with Tenant’s execution of this Agreement more than two times during any twelve consecutive months during Lease, with Landlord the term of this Agreement, LICENSEE agrees, that amount set forth in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Article 1 as the “Security Deposit"), which will be held by LICENSOR without interest ” as security for the full and faithful performance by LICENSEE Tenant of LICENSEE's covenants the terms of this Lease to be performed by Tenant, and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment as prepayment of license fees or rent. Tenant hereby grants to Landlord a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of security interest in the Security Deposit, upon the occurrence including but not limited to replenishments thereof. Landlord may apply such portion or portions of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit 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 late charge or interest on defaulted rent, or any other monetary payment obligation of Tenant under this Lease; (ii) to repair damage to the extent necessary Leased Premises, the Building or the Outside Areas caused or permitted to make good occur by Tenant; (iii) to clean and restore and repair the Leased Premises, the Building or the Outside Areas following their surrender to Landlord if not surrendered in the condition required pursuant to the provisions of Article 2, (iv) to remedy any arrearages other default of payment owed Tenant including, without limitation, paying in full on Tenant’s behalf any sums claimed by LICENSEE materialmen or contractors of Tenant to LICENSOR be owing to them by Tenant for work done or improvements made at Tenant’s request to the Leased Premises, and (v) to cover any other expense, loss or damage which Landlord may at any time suffer due to Tenant’s default. In this regard, Tenant hereby waives any restriction on the uses to which the Security Deposit 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 Deposit or any amount as to which LICENSEE portion thereof is in default or for any other damageso used, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to Tenant shall pay to LICENSOR on demand the Landlord, promptly upon demand, an amount so applied in order cash sufficient to restore the Security Deposit to its the full original amount and LICENSEE's failure to do so within ten days sum. Landlord shall not be deemed a trustee of the date of demand will be, at LICENSOR's election, a material default under this AgreementSecurity Deposit. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 Landlord may use the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will Landlord’s ordinary business and shall not be required to keep this segregate it from Landlord’s general accounts. Tenant shall not be entitled to any interest on the Security Deposit. If Landlord transfers the Building or the Property during the Lease Term, Landlord may pay the Security Deposit separate to any subsequent owner in conformity with the provisions of Section 1950.7 of the California Civil Code and/or any successor statute, in which event the transferring landlord shall be released from its general fundsall liability for the return of the Security Deposit. LICENSEE agrees that it will not assign or encumberTenant specifically grants to Landlord (and Tenant hereby waives the provisions of California Civil Code Section 1950.7 to the contrary) a period of thirty days following a surrender of the Leased Premises by Tenant to Landlord within which to inspect the Leased Premises, or attempt to assign or encumbermake required restorations and repairs, the monies deposited under this Agreement as securityreceive and verify workmen’s xxxxxxxx therefor, cure any other defaults, deduct any damages, and that LICENSOR and its successors and assigns will not be bound by any such actual or attempted assignment or encumbranceprepare a final accounting with respect to the Security Deposit. If LICENSEE cures In no event shall the event of default that triggered the obligation to put up the $25,000 Security Deposit and is not then in defaultor any portion thereof, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestbe considered prepaid rent.

Security Deposit. If LICENSEE defaults under any of Tenant does not elect to deposit the terms or conditions L-C, then Tenant shall, concurrent with Tenant’s execution of this Agreement more than two times during any twelve consecutive months during the term of this AgreementLease, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR deposit with Landlord a security deposit equal to $25,000 ("the “Security Deposit"), which will ”) in the amount set forth in Section 10 of the Summary. The Security Deposit shall be held by LICENSOR without interest Landlord as security for the full and faithful performance by LICENSEE Tenant of LICENSEE's covenants all the terms, covenants, and obligations under conditions of this AgreementLease to be kept and performed by Tenant during the Lease Term. If Tenant defaults (beyond any applicable notice and cure periods) with respect to any provisions of this Lease, it being expressly understood that such deposit is including, but not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following limited to, the provisions relating to the payment of the Security DepositRent, upon the occurrence of any event of default by LICENSEE, LICENSOR Landlord may, from time to timebut shall not be required to, without prejudice to use, apply or retain all or any other remedy provided in this Agreement or by law, use part of the Security Deposit to for the extent necessary to make good payment of any arrearages of payment owed by LICENSEE to LICENSOR Rent or any amount as other sum in default, or to which LICENSEE is in default or compensate Landlord for any other damage, injury, expense, actual loss or liability damage caused to LICENSOR by such event of Tenant’s default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following If any such application portion of the Security DepositDeposit is so used or applied, LICENSEE agrees to pay to LICENSOR on Tenant shall, within ten (10) business days after written demand the therefor, deposit cash with Landlord in an amount so applied in order sufficient to restore the Security Deposit to its original amount amount, and LICENSEE's Tenant’s failure to do so within ten days of the date of demand will be, at LICENSOR's election, shall be a material default under this AgreementLease. If LICENSEE The Security Deposit, or any balance thereof, shall be returned to Tenant within sixty (60) days following the expiration of the Lease Term; provided Tenant has cured any outstanding defaults or, if not, Landlord shall return the Security Deposit less amounts required to cure outstanding defaults. Tenant shall not be entitled to any interest on the Security Deposit. Tenant hereby waives all provisions of law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage to which Landlord is entitled to under the Lease, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant to the extent permitted under the Lease. In the event of 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. Notwithstanding anything to the contrary contained in this Article 20 or Section 10 of the Summary, in the event that Tenant, at the expiration of the twenty-fourth (24th) month of the initial Lease Term (“Reduction Date”), is not in default of any of its obligations under this Agreement upon Lease (beyond the termination expiration of this Agreementall applicable notice and cure periods) and Landlord has not made any application of the Security Deposit prior to the Reduction Date, LICENSOR agrees to return any remaining balance Landlord shall reduce the amount of such the 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 an amount equal to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign or encumberOne Million Five Hundred Thirty-Four Thousand Two Hundred Seven and 50/100 Dollars ($1,534,207.50) and Landlord shall, 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 $25,000 amount put as a Security Deposit within ten (10) days of after the date of LICENSEE's request.Reduction Date, refund to Tenant an amount equal to Seven Hundred Sixty-Seven Thousand One Hundred Three and 70/100 Dollars ($767,103.70). 908728.01/SD 374622.00146/4-30-21/MLT/bp ActiveUS 186012966v.2

Security Deposit. If LICENSEE defaults under any of the terms or conditions of this Agreement more than two times during any twelve consecutive months during the term of this Agreement, LICENSEE agrees, that in addition Tenant agrees to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit")in the amount of $ , which will must be paid by cashier’s check or money order, to be held by LICENSOR without interest as security Landlord for the full and faithful performance by LICENSEE Tenant of LICENSEEthis Lease, and for the cleaning and repairing of the Premises after surrender by Tenant. The deposit, with an itemized disposition, will be mailed to Tenant's covenants last known address within twenty-one (21) days after Tenant vacates the Premises, less amounts necessary to compensate Landlord for Tenant’s default in any payment including but not limited to unpaid rent, liquidated damage charges and obligations unpaid water charges; to repair damage to the Premises (exclusive of ordinary wear and tear) caused by Tenant, his/her guests, other household members, or by pets; to clean the Premises; the cost of replacing unreturned keys and garage door openers; the removal of unauthorized locks or fixtures installed by Tenant; removing abandoned property or vehicles; to remedy future defaults by Tenant in any obligation under the rental agreement including the obligation to restore, replace or return personal property or appurtenances, exclusive of ordinary wear and tear; and any other items that Tenant is responsible to pay under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults againLease. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use If the Security Deposit is insufficient to satisfy the extent necessary total charges, we will send to make good any arrearages you an itemized xxxx payable on demand. The twenty-one (21) day period for return of payment owed the security deposit shall not begin to run until all tenants have vacated the premises. Any security deposit returned by LICENSEE check will be made payable to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expenseall Tenants named on this Lease, or liability caused as subsequently modified, unless notarized written instructions signed by all named tenants to LICENSOR issue the check in a single name are received by such event Landlord. Tenant may not pay last month's rent from the security deposit. Tenant has the right to request an initial inspection of default, regardless whether such damages or deficiency accrue the Premises to occur no earlier than two weeks before or after termination of the tenancy. If requested, Landlord will inspect the Premises and provide Tenant with a list of repairs to be made at the Tenant’s expense. The purpose of this Agreement. Following inspection is to allow the Tenant the opportunity to identify and correct any such application of deficiencies in the Security Deposit, LICENSEE agrees to pay to LICENSOR on demand the amount so applied Premises in order to restore avoid security deposit deductions. Tenant has the Security Deposit right to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees present during 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestinspection.

Security Deposit. If LICENSEE defaults under any of the terms or conditions Upon execution of this Agreement more than two times during any twelve consecutive months during Lease, Tenant shall deposit with Landlord the term of this Agreement, LICENSEE agrees, that Security Deposit defined in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit")Section 1(K) above, which will shall be held by LICENSOR without interest Landlord as security for the full and faithful performance by LICENSEE Tenant of LICENSEE's all terms, covenants and obligations under conditions of this Agreement, it being Lease. It is expressly understood and agreed that such deposit Security Deposit is not an advance payment of license fees rental deposit or a measure of LICENSORLandlord's damages if LICENSEE in case of Tenant's default. If Tenant defaults again. Following with respect to any provision of this Lease, including, but not limited to, the provisions relating to the payment of rent or the Security Depositobligation to repair and maintain the Premises or to perform any other term, upon the occurrence of any event of default by LICENSEEcovenant or condition contained herein, LICENSOR may, from time to timeLandlord may (but shall not be required to), without prejudice to any other remedy provided in this Agreement herein or provided by lawlaw and without notice to Tenant, use the Security Deposit Deposit, or any portion of it, to cure the default or to compensate Landlord for all damages sustained by Landlord resulting from Tenant's default. Tenant shall immediately on demand pay to Landlord a sum equivalent to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application portion of the Security Deposit, LICENSEE agrees Deposit so expended or applied by Landlord as provided in this Section so as to pay to LICENSOR on demand the amount so applied in order to restore maintain the Security Deposit to its original amount and LICENSEE's failure to do so within ten days in the sum initially deposited with Landlord. Although the Security Deposit shall be deemed the property of the date of demand will beLandlord, at LICENSOR's election, a material default under this Agreement. If LICENSEE if Tenant is not in default of this Agreement upon at the expiration or termination of this AgreementLease, LICENSOR agrees to Landlord shall 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 will in no event release LICENSEE from being in default under the terms of this Agreement(or applicable portion thereof) to Tenant. LICENSOR will Landlord shall not be required to keep this the Security Deposit separate from its general funds. LICENSEE agrees that it will funds and Landlord, not assign or encumberTenant, or attempt shall be entitled to assign or encumberall interest, the monies deposited under this Agreement as securityif any, and that LICENSOR and its successors and assigns will not be bound by accruing on any such actual Security Deposit. Upon any sale or attempted assignment or encumbrance. If LICENSEE cures transfer of its interest in the event of default that triggered Building, Landlord shall transfer the obligation to put up the $25,000 Security Deposit to its successor in interest and is not then in defaultthereupon, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestLandlord shall be released from any liability or obligation with respect thereto.

Security Deposit. If LICENSEE defaults under any of Tenant concurrently with the terms or conditions execution of this 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 Lease shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of Landlord in immediately available funds the Security Deposit. The Security Deposit may be applied by Landlord to cure, in whole or part, any default of Tenant under this Lease, and upon the occurrence notice by Landlord of any event of default by LICENSEEsuch application, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use Tenant shall replenish the Security Deposit in full by paying to Landlord within ten (10) days of demand the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreementso applied. Following any such Landlord's application of the Security Deposit, LICENSEE agrees Deposit shall not constitute a waiver of Tenant's default to pay to LICENSOR on demand the amount so applied in order to restore extent that the Security Deposit does not fully compensate Landlord for all losses, damages, costs and expenses incurred by Landlord in connection with such default and shall not prejudice any other rights or remedies available to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default Landlord under this AgreementLease or by Law. If LICENSEE is Landlord shall not in default of this Agreement upon the termination of this Agreement, LICENSOR agrees to return pay 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 interest on the Security Deposit will in no event release LICENSEE from being in default under the terms of this AgreementDeposit. LICENSOR will Landlord shall not be required to keep this the Security Deposit separate from its general fundsaccounts. LICENSEE agrees that The Security Deposit shall not be deemed an advance payment of Rent, nor a measure of damages for any default by Tenant under this Lease, nor shall it will not assign be a bar or encumberdefense of any action which Landlord may at any time commence against Tenant. In the absence of evidence satisfactory to Landlord of an assignment of the right to receive the Security Deposit or the remaining balance thereof, Landlord may return the Security Deposit to the original Tenant, regardless of one or more assignments of this Lease. Upon the transfer of Landlord's interest under this Lease, Landlord's obligation to Tenant with respect to the Security Deposit shall terminate upon transfer to the transferee of the Security Deposit, or attempt to assign or encumberany balance thereof. If Tenant shall fully and faithfully comply with all the terms, provisions, covenants, and conditions of this Lease, the monies deposited under this Agreement as securitySecurity Deposit, and that LICENSOR and its successors and assigns will not or any balance thereof, shall be bound by any such actual or attempted assignment or encumbrance. If LICENSEE cures the event of default that triggered the obligation returned to put up the $25,000 Security Deposit and is not then in default, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit Tenant within ten thirty (30) days after Landlord recovers possession of the date Premises or such longer time as may be permissible under Law. Tenant hereby waives any and all rights of LICENSEE's requestTenant under the provisions of Section 1950.7 of the California Civil Code or other Law regarding security deposits.

Security Deposit. If LICENSEE defaults under any The Landlord acknowledges receipt on or before the Commencement Date of the terms or conditions amount set out in Item 6(a) of this 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 Term Sheet (the "Security Deposit"), which will ) to be held by LICENSOR the Landlord,without interest as security any liability whatsoever on the part of the Landlord for the full and payment of interest thereon, as a security deposit for the faithful performance by LICENSEE the Tenant of LICENSEE's the terms, covenants and obligations conditions of this Lease during the Term hereof and not to be applied on account of Rent except as otherwise provided in this Section 4.02. The Security Deposit will not be a limitation on the Landlord's damages or other rights and remedies available under this AgreementLease or at law or equity, it being expressly understood that such deposit is not nor shall the Security Deposit be either a payment of liquidated damages or an advance payment of license fees Rent. The Landlord shall have no fiduciary responsibilities or trust obligations whatsoever with regard to the Security Deposit and shall not assume the duties of a measure trustee for the Security Deposit. The Security Deposit shall not be mortgaged, assigned or encumbered by the Tenant and the Landlord shall not be bound by any such mortgage, assignment or encumbrance. It is understood and agreed between the parties that any portion of LICENSORthe Security Deposit may, at the Landlord's damages if LICENSEE defaults again. Following option, be applied toward the payment of overdue or unpaid Rent and may also be applied as compensation to the Landlord for any loss or damage sustained with respect to the breach on the part of the Tenant of any terms, covenants and conditions of this Lease, provided in all cases, however, that the Tenant's liability hereupder is not limited to the amount of the Security Deposit. If during the Term any portion of the Security Deposit is so applied, upon then the occurrence Tenant shall on written demand deliver to the Landlord a sufficient amount iflEash or by certified cheque to restore the Security Deposit to the original sum deposited. The Landlord shall refund to the Tenant after the expiry date of this Lease any event portion of default the Security Deposit not used by LICENSEE, LICENSOR may, from time to time, without prejudice the Landlord after application by the Landlord to any other remedy damage incurred by the Landlord by reason of the default of the Tenant under the terms of this Lease. It is further provided in this Agreement or by law, use that the Landlord will be discharged from all liability to the Tenant with respect to the Security Deposit to the extent necessary that it is transferred to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application purchaser of the Security Deposit, LICENSEE agrees to pay to LICENSOR on demand Landlord's interest in 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 date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestLeased Premises.

Security Deposit. If LICENSEE defaults under any of the terms or conditions Concurrently with Tenant’s execution of this Agreement more than two times during any twelve consecutive months during the term of this AgreementLease, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR Tenant has deposited with Landlord a security deposit in an amount equal to $25,000 $ .00 as set forth in Section 2 above ("the “Security Deposit")”) to secure Tenant’s performance of the terms, which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's conditions, covenants and obligations under provisions of this AgreementLease. Landlord shall have the right, it being expressly understood that such deposit is but not an advance payment of license fees the obligation, to apply the Security Deposit in whole or a measure of LICENSOR's damages if LICENSEE defaults again. Following in part to the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, unpaid Rent or other sums due from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to 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 date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default Tenant under the terms of this AgreementLease or for damages suffered by Landlord due to non-performance or breach of any term, condition, covenant or provision of this Lease by Tenant or Tenant’s guests or invitees. LICENSOR will Upon expiration or earlier termination of this Lease, and upon surrender of the Apartment Unit to Landlord pursuant to the conditions set forth in Sections 16 and 22 below, and upon full payment of all sums due Landlord hereunder, the Security Deposit or any portion remaining unapplied (without any interest) shall be returned to Tenant. Tenant is responsible for furnishing Landlord, upon termination of Tenant’s occupancy of the Apartment Unit, with a forwarding address for all communications regarding the Security Deposit. Landlord’s right to possession of the Apartment Unit for nonpayment of Rent or for any other breach of this Lease by Tenant shall not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees affected by the fact 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 Landlord holds a Security Deposit and is not then in default, LICENSOR agrees to refund payment of the $25,000 amount put as a Security Deposit within ten days of shall in no way be interpreted to limit Tenant’s liability hereunder. Tenant acknowledges and agrees that the date of LICENSEE's requestSecurity Deposit and any charges applied against same are joint and several obligations with the other tenants in the Apartment Unit and that Landlord may refund any remaining Security Deposit by a check made payable to Tenant and such other tenants in the Apartment Unit who actually paid money toward the Security Deposit.

Security Deposit. If LICENSEE defaults under any of the terms or conditions of this Agreement more than two times during any twelve consecutive months during the term of this Agreement, LICENSEE agrees, that in addition Tenant hereby agrees to curing such event of default, it shall pay LICENSOR to Landlord a security deposit equal to of forty-six thousand five hundred eight dollars and forty-five cents ($25,000 ("Security Deposit"46,508.45), which will be held is equal to first month’s Base Rental, on the day this Lease is executed by LICENSOR without interest as security for Tenant (the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the “Security Deposit, upon ”). Upon the occurrence of any event Event of default Default by LICENSEETenant, LICENSOR Landlord may, from time to time, without prejudice to any other remedy provided in this Agreement or by lawremedy, use the Security Deposit to the extent necessary to make good any arrearages arrears of payment owed by LICENSEE to LICENSOR Base Rental or Additional Rental or any amount as to which LICENSEE is in default or for other payment obligation hereunder, including, but not limited to, the cost of any other damage, injury, expense, or liability caused by any Event of Default by Tenant hereunder. Any remaining balance of the Security Deposit shall be returned by Landlord to LICENSOR 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 interest on the Security Deposit, and Landlord may commingle the same with other monies of Landlord. 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 transfer the Security Deposit to the purchaser or lessor, as the case may be, and upon any such transfer and acknowledgement of receipt of Security Deposit by such event transferee, Landlord shall be relieved of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application all liability to Tenant for the return of the Security Deposit, LICENSEE agrees and Tenant shall look solely to pay to LICENSOR on demand the amount so applied in order to restore new owner or lessor for the return of the Security Deposit to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestDeposit.

Security Deposit. If LICENSEE defaults under any of the terms or conditions of this 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"), which will be held by LICENSOR without interest as As additional security for the full and faithful prompt performance by LICENSEE Tenant of LICENSEE's the terms and covenants of this Lease, Tenant has deposited with Landlord the Security Deposit, which shall be held in a segregated, interest bearing and obligations under federally insured account. The Security Deposit shall not constitute rent for any month (unless so applied by Landlord on account of Tenant’s default hereunder). Tenant shall, upon demand, restore any portion of the Security Deposit which may be applied by Landlord to cure any default by Tenant hereunder. Tenant shall be entitled to interest thereon and Landlord shall not commingle such Security Deposit with any other funds of Landlord. To the extent that Landlord has not applied the Security Deposit or any portion thereof on account of a default, the Security Deposit plus any applicable interest earned thereon, or such remaining portion of the Security Deposit plus any applicable interest earned thereon, shall be returned to Tenant, promptly following the termination of this Agreement, it being expressly understood that such deposit is Lease. The Security Deposit shall not be considered an advance payment of license fees rent or a measure of LICENSOR's Landlord’s damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event in case of default by LICENSEETenant. If Tenant defaults with respect to any provision of this Lease, LICENSOR Landlord may, but shall not be required to, from time to time, without prejudice to any other remedy provided in remedy, use, apply or retain all or any part of this Agreement or by law, use the Security Deposit to for the extent necessary to make good payment of any arrearages of payment owed by LICENSEE to LICENSOR rent or any amount as to which LICENSEE is other sum in default or for the payment of any other damageamount which Landlord may spend or become obligated to spend by reason of Tenant’s default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant’s default, injuryincluding, expensewithout limitation costs and reasonable attorneys’ fees incurred by Landlord to recover possession of the Premises. In the event Landlord or any of its successors or assigns sells, assigns, or liability caused to LICENSOR by otherwise transfers its interests in this Lease, then such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of party shall have the Security Deposit, LICENSEE agrees obligation to pay to LICENSOR on demand the amount so applied in order to restore or give control of the Security Deposit to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign successor 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestassign.

Security Deposit. If LICENSEE defaults under any of the terms or conditions Tenant shall pay to Landlord concurrently with Tenant’s execution of this Agreement more than two times during any twelve consecutive months during Lease the term of this Agreement, LICENSEE agrees, that Security Deposit (as defined in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"the Basic Lease Information), which will shall be held by LICENSOR without interest Landlord as security for the full and faithful performance of all of the terms, covenants, and conditions of this Lease to be kept and performed by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit Tenant during the term hereof. The Security Deposit is not an advance payment of license fees Rent or a measure or limit of LICENSOR's Landlord’s damages if LICENSEE defaults againupon an Event of Default. Following If an Event of Default occurs with respect to any provision of this Lease, including, without limitation, the provisions relating to the payment of the Security DepositRent and other sums due hereunder, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to timeLandlord may at Landlord’s discretion, without prejudice to any other remedy provided in this Agreement remedy, use, apply or by law, use retain all or any part of the Security Deposit to for the extent necessary to make good any arrearages payment of payment owed by LICENSEE to LICENSOR Rent or any other amount as which Landlord may spend or become obligated to which LICENSEE is in spend by reason of Tenant’s default or to compensate Landlord for any other damage, injury, expense, loss or liability caused to LICENSOR damage which Landlord may suffer by such event reason of Tenant’s default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following If any such application portion of the Security DepositDeposit is so used or applied, LICENSEE agrees to pay to LICENSOR on Tenant shall, within ten (10) days after written demand the therefor, deposit cash with Landlord in an amount so applied in order sufficient to restore the Security Deposit to its original amount and LICENSEE's Tenant’s failure to do so within ten days of the date of demand will be, at LICENSOR's election, shall be a material default under this Agreement. If LICENSEE is not in default breach of this Agreement upon the termination of this AgreementLease. Unless required otherwise by applicable Law, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will Landlord shall not be required to keep any deposit under this Section separate from Landlord’s general funds, and Tenant shall not be entitled to interest thereon. Subject to the requirements of, and conditions imposed by, Laws applicable to security deposits under commercial leases, Landlord shall, within the time required by applicable Law, return to Tenant the portion of the Security Deposit separate from remaining after deducting all damages, charges and other amounts permitted by Law. If Landlord transfers its general fundsinterest in the Premises, Landlord shall assign the Security Deposit to the transferee and, upon such transfer, Landlord thereafter shall have no further liability for the return of the Security Deposit. LICENSEE agrees that it will not assign or encumber, or attempt to assign or encumber, Tenant hereby waives the monies deposited under this Agreement as securityprovisions of Section 1950.7(c) of the California Civil Code, and all other provisions of law, now or hereafter in force, which provide that LICENSOR and its successors and assigns will not be bound 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 such actual other loss or attempted assignment damage, foreseeable or encumbrance. If LICENSEE cures unforeseeable, caused by the event act or omission of default that triggered the obligation to put up the $25,000 Security Deposit and is not then in defaultTenant or any officer, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit within ten days employee, agent or invitee of the date of LICENSEE's requestTenant.

Security Deposit. If LICENSEE defaults under any of the terms or conditions Upon execution of this Agreement more than two times during any twelve consecutive months during Lease by Txxxxx, Tenant shall deposit with Landlord the term of this Agreement, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR amount specified as a security deposit equal to $25,000 in the Summary of Basic Lease Terms ("the “Security Deposit"”). The amount of the Security Deposit shall be decreased by $100,000 every twelve (12) months following the Commencement Date (i.e., date of first $100,000 reduction would be October 1, 2020), which will so long as Tenant has not had any uncured event of default during the prior twelve (12) month period. The Security Deposit shall be held retained by LICENSOR Landlord and may be applied by Lxxxxxxx, to the extent necessary, to pay and cover any loss, cost, damage or expense, including attorneys’ fees, sustained by Landlord by reason of the failure of Tenant to comply with any provisions, covenant or agreement of Tenant contained in this Lease. To the extent not necessary to cover such loss, cost, damage or expense, the Security Deposit, without any interest thereon, shall be returned to Tenant within 60 days after expiration of the Lease Term or the date Tenant surrenders the Premises to Landlord in the condition required hereunder, whichever is later; provided, however, that Landlord may also deduct any amount from the Security Deposit Landlord estimates may be required to cover any shortfall in Monthly Deposits made by Tenant in the final year of the Lease until such time as security Landlord has completed its annual Additional Rent reconciliation for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is year. The Security Deposit shall not be considered as an advance payment of license fees rent or as a measure of LICENSOR's damages if LICENSEE defaults againthe loss, cost, damage or expense which is or may be sustained by Landlord. Following In the payment event all or any portion of the Security DepositDeposit is applied by Landlord to pay any such loss, upon the occurrence of any event of default by LICENSEEcost, LICENSOR maydamage or expense, Tenant shall, from time to time, without prejudice to any other remedy provided in this Agreement or by lawwithin five (5) business day of receipt of Landlord’s written demand, use the Security Deposit to the extent deposit with Landlord such amounts as may be necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to LICENSOR on demand the amount so applied in order to restore replenish the Security Deposit to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestamount.

Security Deposit. On Tenant's execution of this Lease, Tenant shall pay the Security Deposit as security for tile payment of Rent and Tenant's performance and observance of this Lease. If LICENSEE Tenant defaults under this Lease, or defaults under any other lease or agreement between Tenant and Landlord or an affiliate of the terms or conditions of this Agreement more than two times during any twelve consecutive months during the term of this AgreementLandlord, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR Landlord may, from time to time, without prejudice to any other remedy provided in this Agreement or by lawavailable remedy, use apply the Security Deposit to towards curing the extent necessary to make good any arrearages default and compensating Landlord for loss or damage arising from the default. At the expiration of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE this Lease, if Tenant is not in default or for otherwise liable to Landlord, the unapplied balance of the Security Deposit shall be returned to Tenant. Tenant expressly agrees that Tenant shall have no right to apply any other damageportion of tile Security Deposit against any of Tenant's obligations to pay any Rent hereunder and, injuryif Tenant shall seek to so apply such Security Deposit, expense, or liability caused Tenant shall on demand pay liquidated damages to LICENSOR by such event Landlord in a sum equal to two (2) times the amount of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application unpaid Rent. If at any time Landlord applies part or all of the Security Deposit, LICENSEE agrees to Tenant shall pay to LICENSOR on demand Landlord the amount so applied in order applied, thereby increasing the amount of the Security Deposit, so Landlord shall have on hand the full original Security Deposit at all times. If Landlord transfers this Lease and Security Deposit to restore a transferee, the transferor shall be released from liability with respect to the Security Deposit or its return to its original amount and LICENSEE's failure Tenant; Tenant shall look only to do so within ten days of the date of demand will besuch transferee with respect thereto. Tenant shall not mortgage, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not assign (except in default connection with an assignment of this Agreement upon the termination of this Agreement, 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 Lease by LICENSEE to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under Tenant which is otherwise expressly permitted by the terms of this AgreementLease) or encumber its interest in the Security Deposit, and any attempt to do so shall be void. LICENSOR will not be required to keep On any transfer by Tenant of its interest in this Lease, the Security Deposit separate from its general fundsshall be deemed transferred to the assignee. LICENSEE agrees that it will not assign In case of Tenant's bankruptcy, reorganization or encumber, or attempt to assign or encumberother similar proceeding, 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 shall be deemed applied first to refund the $25,000 amount put as a Security Deposit within ten days payment of unpaid Rent for periods prior to institution of the date of LICENSEE's requestproceedings.

Security Deposit. If LICENSEE defaults under any of Tenant shall deposit with Landlord, upon the terms or conditions execution of this Agreement more than two times during any twelve consecutive months during Lease, the term sum of this Agreement, LICENSEE agrees, that in addition Five Thousand Four Hundred Thirty-One and 50/100 ($5,431.50) Dollars to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest Landlord as a security for deposit. (11Security Deposit”) to insure the full and faithful performance by LICENSEE Xxxxxx of LICENSEE's covenants each and every term, provision, covenant and condition of this Lease. At the termination of this Lease for whatever cause, Landlord may use, apply or retain all or any portion of the Security Deposit for any obligations of Tenant arising under the terms of this AgreementLease or as liquidated damages for Tenant’s premature termination of the Term; providing, it being expressly understood however, that in any such deposit is not an advance payment of license fees or a measure of LICENSOR's event, Landlord may seek redress against Tenant for any damages if LICENSEE defaults again. Following the payment suffered by Landlord in excess of the Security Deposit. The Security Deposit or any portion not so used, applied or retained, shall be refunded to Tenant within forty-five (45) days after termination of tenancy and delivery or possession of the Leased Premises to Landlord. Tenant shall not utilize the Security Deposit as Base Rent or Additional Rent, deduct the same from the last month’s Base Rent or Additional Rent or require Landlord to indemnify itself by resort to the Security Deposit with respect to any violations or default by Tenant. In the event that any part of the Security Deposit shall have been utilized by Landlord in accordance with the terms hereunder, Tenant shall, upon demand, deposit with Landlord a sum equal to the occurrence of amount spent by Landlord so that Landlord shall have the full Security Deposit on hand at all times during the Term, any extensions, renewals, or holding over. In the event of default a sale, transfer, or assignment by LICENSEELandlord of its interests in the Leased Premises or this Lease, LICENSOR may, from time Landlord shall have the right to time, without prejudice to any other remedy provided in this Agreement or by law, use deliver the Security Deposit to the extent necessary grantee, whereupon Landlord shall be released from the liability for the return of the Security Deposit and Tenant shall look solely to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or the new Landlord for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application the return of the Security Deposit. In the event Landlord consents to an assignment or sublease of this Lease by Xxxxxx, LICENSEE agrees to pay to LICENSOR on demand the amount so applied in order to restore the Security Deposit shall be deemed to its original amount be held by Landlord as a deposit made by Xxxxxx’s assignee or sublessee and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, LICENSOR agrees Landlord shall have no further liability 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign assignor 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestsublessor.

Security Deposit. If LICENSEE defaults under any of the terms or conditions Upon execution of this Agreement more than two times during any twelve consecutive months during Lease, Tenant shall provide the term of this Agreementfollowing amount to Landlord, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR be held as a security deposit equal for the reasonable cleaning or repair of damages to $25,000 ("Security Deposit"the Property upon the expiration or termination of this lease or in case of default by Tenant: $ ( dollars), which . The security deposit shall not exceed two times the monthly rent for unfurnished apartments or three times the monthly rent for furnished apartments. The security deposit will be held by LICENSOR without interest as security for at the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees following financial institution: Tenant hereby agrees to be liable to Landlord at the expiration or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this AgreementLease for all damages to the Property, except ordinary wear and tear. Following Landlord may hold the security deposit in a non-interest-bearing account. In such case, no interest is due to Tenant and Tenant may not use the security deposit to cover Rent. Landlord may otherwise elect to hold security deposit in an interest-bearing account and allow Tenant to receive certain interest funds, if applicable. Tenant shall still not be permitted to use the security deposit to cover any such application Rent. In case of sale or assignation of the Security DepositLease by Landlord, LICENSEE Tenant's security deposit shall be transferred to the new owner or assignee and Landlord shall be released from liability to Tenant for return of the security deposit. Deductions from the security deposit may be made for the following reasons (this list constitutes examples only and is not intended to be exhaustive): unpaid rent or utilities, late fees, cleaning, key replacement, removing abandoned property, and/or attorneys' fees for proceedings against Tenant. Landlord shall have 21 (twenty-one) days in which to return the security deposit and/or an itemized list of deductions, if applicable. If Landlord requires deductions which exceed the security deposit, Tenant agrees to pay to LICENSOR on demand the Landlord any overage 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 after receiving a written demand from Landlord. Landlord will first apply the date of demand will besecurity deposit to any non-rent obligations, at LICENSOR's electionsuch as damages, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign or encumberutilities, or attempt to assign or encumber, the monies deposited under this Agreement as securitylate fees, and that LICENSOR and its successors and assigns will not be bound by then apply the security deposit to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestunpaid rent.

Security Deposit. If LICENSEE defaults under any of Tenant shall pay to Landlord, upon the terms or conditions execution of this Agreement more than two times during any twelve consecutive months during Lease, the term of this Agreement, LICENSEE agrees, that Security Deposit set forth in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest Article 1.13 above as security for the full and faithful performance by LICENSEE Tenant of LICENSEE's covenants and its obligations under this AgreementLease, it being expressly understood which amount shall be returned to Tenant within thirty (30) days after the expiration or earlier termination of this Lease, provided that such deposit Tenant shall have fully performed all of its obligations contained in this Lease. The Security Deposit, at the election of Landlord, may be retained by Landlord as and for its full damages or may be applied in reduction of any loss and/or damage sustained by Landlord by reason of the occurrence of any breach, nonperformance or default by Tenant under this Lease without the waiver of any other right or remedy available to Landlord at law, in equity or under the terms of this Lease. If any portion of the Security Deposit is not so used or applied, Tenant shall, within five (5) days after written notice from Landlord (which notice shall include an advance payment accounting of license fees all applications of all or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment any part of the Security Deposit), upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided deposit with Landlord immediately available funds in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any an amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to LICENSOR on demand the amount so applied in order sufficient to restore the Security Deposit to its original amount amount, and LICENSEETenant's failure to do so within ten days of the date of demand will be, at LICENSOR's election, shall be a material default under this Agreement. If LICENSEE is not in default breach of this Agreement upon Lease. Tenant acknowledges and agrees that in the event Tenant shall file a voluntary petition pursuant to the Bankruptcy Code or any successor thereto, or if an involuntary petition is filed against Tenant pursuant to the Bankruptcy Code or any successor thereto, then Landlord may apply the Security Deposit towards those obligations of Tenant to Landlord which accrued prior to the filing of such petition. Tenant acknowledges further that the Security Deposit may be commingled with Landlord's other funds and that Landlord shall be entitled to retain any interest earnings thereon. In the event of termination of Landlord's interest in this AgreementLease, LICENSOR agrees to return any remaining balance of such Landlord shall transfer the Security Deposit to LICENSEE within thirty days Landlord's successor in interest, whereupon Landlord shall be released from liability by Tenant for the return of such deposit or the date of the termination of this Agreement. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestaccounting therefore.

Security Deposit. If LICENSEE defaults under any Xxxxxx has delivered to Landlord the sum of the terms or conditions of this Agreement more than two times during any twelve consecutive months during the term of this Agreement, LICENSEE agrees, that in addition $ (not to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 exceed one ("Security Deposit"), which will be held by LICENSOR without interest 1) month’s rent) as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment Tenant of the Security Depositterms of the Lease. Such security will be deposited by Landlord in an interest bearing account at located at . If the rent is increased by reason of an order of the Commissioner, upon tenant shall deliver to the occurrence Landlord, on or before the effective date of such increase, as additional security, a sum equal to the monthly increase. It is agreed that if Xxxxxx fails to obey any event part of default by LICENSEEthe Lease, LICENSOR mayLandlord may apply or keep all or any part of said security which shall also include any interest earned on such sum, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good for the payment of any arrearages rent or damage of payment owed Landlord resulting from the breach of the Lease by LICENSEE to LICENSOR or Xxxxxx. Landlord may not retain any amount as of the security deposit for costs relating to which LICENSEE is in default or for any other damage, injury, expenseordinary wear and tear of occupancy, or liability caused due to LICENSOR by such event of defaultany condition, regardless whether such damages defect, or deficiency accrue before or after termination of this Agreementdamage noted in apartment prior to the tenant taking possession. Following any such application Where Landlord and Tenant conduct an inspection of the Security Depositpremises prior to tenant’s taking possession thereof, LICENSEE agrees the parties shall execute a written agreement before the tenant begins occupancy of the unit attesting to pay the condition of the property and specifically noting any existing defects or damages. Upon the Tenant's vacating of the premises, the Landlord may not retain any amount of the deposit or advance due to LICENSOR on demand any condition, defect, or damage noted in such agreement. Such security, in addition to any interest accumulated thereof, minus any part kept by Landlord based upon any breach of Tenant of the Lease, and minus 1% of the security deposit to be keptas administration expenses, shall be returned by Landlord to Tenant, along with an itemized statement indicating the basis for the amount so applied in order to restore of the Security Deposit to its original amount deposit retained, if any, after the end of the Lease and LICENSEE's failure to do so within ten 14 days of Tenant vacating the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's request.Apartment..

Security Deposit. If LICENSEE defaults under any of On the terms or conditions of this Agreement more than two times during any twelve consecutive months during the term of this AgreementCommencement Date, LICENSEE agrees, that in addition to curing such event of default, it Tenant shall pay LICENSOR a security deposit equal to Landlord the sum of $25,000 _____ (the "Security Deposit"), ) which will shall be held by LICENSOR without interest as security Landlord for the full and faithful performance by LICENSEE of LICENSEETenant's covenants and obligations under this AgreementLease, it being expressly understood that such deposit is the Security Deposit shall not be considered an advance payment of license fees Rent or a measure of LICENSORLandlord's damages if LICENSEE defaults again. Following the damage in case of Default hereunder by Tenant, and shall be held by Landlord without payment of the Security Deposit, upon any interest thereon. Upon the occurrence of any event Event of default Default by LICENSEE, LICENSOR may, from time to timeTenant under this Lease, without prejudice to any other remedy provided in this Agreement or by lawremedy, Landlord from time to time may use the Security Deposit to the extent necessary to make good any arrearages arrears of payment owed by LICENSEE Rents or to LICENSOR repair any damage or injury or pay any amount as to which LICENSEE is in default or for any other damage, injury, expense, expense or liability caused incurred by Landlord as a result of an Event of Default or breach of covenant, and any remaining balance of the Security Deposit shall be returned by Landlord to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after Tenant upon the termination of this AgreementLease. Following If any such application portion of the Security DepositDeposit is so used or applied, LICENSEE agrees to pay to LICENSOR on demand the Tenant shall deposit with Landlord, upon ten (10) days' Notice from Landlord, by cash or cashier's check an amount so applied in order sufficient to restore the Security Deposit to its original amount amount. The Security deposit may be assigned and LICENSEE's failure transferred by Landlord to do so within ten days the Successor Landlord, and upon acknowledgment by such Successor Landlord of receipt of such security and its assumption of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not obligation to account to Tenant for such security in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under accordance with the terms of this Agreement. LICENSOR will not Lease, Landlord shall thereby be required to 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 discharged of any such actual or attempted assignment or encumbrance. If LICENSEE cures the event of default that triggered the further obligation to put up the $25,000 Security Deposit and is not then in default, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestrelating thereto.

Security Deposit. If LICENSEE defaults under any of the terms or conditions Upon execution of this Agreement more than two times during any twelve consecutive months during Lease, Tenant shall deposit the term sum of this Agreement, LICENSEE agrees, that in addition ($ ) to curing such event of default, it shall pay LICENSOR be held by Landlord as a security deposit equal to $25,000 ("Security Deposit")for reasonable cleaning of, which will be held by LICENSOR without interest as security for and repair of damages to, the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, premises upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement expiration or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this AgreementLease, or other reasonable damages resulting from a default by Tenant. Following any such application of Tenant shall be liable to Landlord for all damages to the Security Deposit, LICENSEE agrees to pay to 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 date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement leased premises upon the termination of this AgreementLease, LICENSOR agrees ordinary wear and tear excepted. Tenant is entitled to interest on the security deposit in accordance with the provisions of the laws of the state of Maryland. Tenant may not apply the security deposit to any rent due under this Lease. If Landlord sells or assigns the leased premises, Landlord shall have the right to transfer Tenant’s security deposit to the new owner or assignee to hold under this Lease, and upon so doing Landlord shall be released from all liability to Tenant for return of said security deposit. Landlord shall refund a security deposit to the tenant on or before the 45th day after the date the tenant surrenders the premises. Before returning a security deposit, the landlord may deduct from the deposit damages and charges for which the tenant is legally liable under the lease or as a result of breaching the lease. The landlord may not retain any portion of a security deposit to cover normal wear and tear. If the landlord retains all or part of a security deposit under this section, the landlord shall give to the tenant the balance of the security deposit, if any, together with an itemized list of all deductions. The landlord is not required to give the tenant a description and itemized list of deductions if (1) the tenant owes rent when he surrenders possession of the premises and (2) there is no controversy concerning the amount of rent owed. The landlord is not obligated to return any remaining balance a tenant's security deposit or give the tenant a written description of such Security Deposit to LICENSEE within thirty days damages and charges until the tenant gives the landlord a forwarding address for the purpose of refunding the date of the termination of this Agreementsecurity deposit. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will The 45 day period following Lease Expiration does not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestcommence until ALL keys have been returned.

Security Deposit. If LICENSEE defaults under any Concurrent with the execution of this Lease, Tenant shall pay to Landlord the sum of $7,440.00 ("Security Deposit") as security for the performance by Tenant of the terms or terms, covenants and conditions of this Agreement more than two times during any twelve consecutive months Lease. If the base rent due under Paragraph 3 hereof is increased during the term of this AgreementLease, LICENSEE agreesthen within fifteen (15) days of notification by Landlord of said increase in base rent, that in addition to curing such event of defaultwithout further notice, it Tenant shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will Landlord an additional amount to be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment part of the Security DepositDeposit so that the total Security Deposit held by Landlord 15 in the same proportion to the increased base rent due pursuant to Paragraph 3 hereof as tile original Security Deposit bore to the original base rent due under Paragraph 3 hereof Should Tenant faithfully perform all of the terms, upon covenants and conditions of this Lease, the occurrence Security Deposit shall be repaid by Landlord to Tenant at the end of any event the term of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, Lease. Tenant shall not use the Security Deposit to pay the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR last or any month's rent, or any other charges due hereunder. This sum, both in equity and at law, is Landlord's separate property. In the event Tenant defaults in any amount as payable hereunder or fails to which LICENSEE is in perform any of the other obligations of Tenant hereunder, then Landlord shall have the right to apply said Security Deposit, or any portion thereof, toward the curing of such default or for failure. The use or application or the Security Deposit or any portion thereof shall not prevent Landlord from exercising any other damageright or remedy provided hereunder, injury, expense, at law or liability caused to LICENSOR by such in equity7 and shall not be construed as liquidated damages. Ii' the event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application by Landlord, Tenant shall, upon demand of the Security DepositLandlord, LICENSEE agrees to pay to LICENSOR on demand the forthwith deposit with Landlord a sufficient amount so applied in order of cash to restore the said Security Deposit to its the original amount thereof, and LICENSEETenant's failure to do so within ten five (5) days after such demand by Landlord shall carry with it the same consequences as failure to pay any installment of the date of demand will be, at LICENSOR's election, a material default rental due under this Agreementlease. If LICENSEE is The five (5) day notice specified in the previous sentence shall insofar as not prohibited by law, constitute full satisfaction of notice of default provision required by law or ordinance. Tenant acknowledges that Landlord has the right to transfer or mortgage its interest in default the Project4 or any portion thereof, and Tenant agrees that in the event of this Agreement upon any such transfer or assign, Landlord shall have the termination right to transfer or assign the Security Deposit to the transferee or mortgagee. Upon, and only upon, written acknowledgement of this AgreementTransferees or mortgagee's receipt of such Security Deposit, LICENSOR agrees to Landlord shall thereby be released by Tenant from all liability or obligation for the return any remaining balance of such Security Deposit and Tenant shall look solely to LICENSEE within thirty days such transferee or mortgagee for the return of the date of the termination of this Agreement. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestDeposit.

Security Deposit. If LICENSEE defaults under any of the terms Tenant agrees to deposit with Landlord on or conditions of this Agreement more than two times during any twelve consecutive months during the term of this Agreementprior to February 1 2001, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 as stated in the Basic Lease Information ("the “Security Deposit"”), which will sum shall be held and owned by LICENSOR Landlord, without interest obligation to pay interest, as security for the full and faithful performance by LICENSEE of LICENSEE's Tenant’s covenants and obligations under this Agreement, it being expressly understood that such deposit Lease. The Security Deposit is not an advance payment of license fees rental deposit or a measure of LICENSOR's damages if LICENSEE defaults againincurred by Landlord in case of Tenant’s default. Following the payment of the Security Deposit, upon Upon the occurrence of any event of default by LICENSEETenant, LICENSOR may, Landlord may from time to time, without prejudice to any other remedy provided in this Agreement herein or by law, use the Security Deposit such fund as a credit to the extent necessary to make good credit against any arrearages arrears of payment owed by LICENSEE Rent or other payments due to LICENSOR or any amount as to which LICENSEE is in default or for Landlord hereunder, and any other damage, injury, expense, expense or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to and Tenant shall pay to LICENSOR Landlord, on demand 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 itsoriginal amount. Although the Security Deposit shall be deemed the property of the date of demand will beLandlord, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, LICENSOR agrees to return any remaining balance of such Security Deposit deposit shall be returned by Landlord to LICENSEE within thirty days of the date of the Tenant at such time after termination of this AgreementLease that all of Tenant’s obligations under this Lease have been fulfilled, reduced by such amounts as may be required by Landlord to remedy defaults on the part of Tenant in the payment of Rent or other obligations of Tenant under this Lease, to repair damage to the Premises, Building or Project caused by Tenant or any Tenant’s Parties and to clean the Premises. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from Landlord is hereby granted a security interest in the Security Deposit will in no event release LICENSEE from being in default under accordance with applicable provisions of the terms of this AgreementCalifornia Commercial Code. LICENSOR will not be required to keep this Landlord may use and commingle the Security Deposit separate from its general fundswith other funds of Landlord. LICENSEE agrees that it will not assign or encumber, or attempt to assign or encumber, Tenant hereby waives the monies deposited under this Agreement as securityprovisions of Section 1950.7 of the California Civil Code, and all other provisions of any Regulations, now or hereinafter in force, which restricts the amount or types of claim that LICENSOR and a landlord may make upon a security deposit or imposes upon a landlord (or its successors and assigns will not be bound by successors) any such actual obligation with respect to the handling or attempted assignment or encumbrance. If LICENSEE cures the event return 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestsecurity deposits.

Security Deposit. If LICENSEE defaults under any Landlord hereby acknowledges receipt from Tenant of the terms or conditions sum of this 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 Five Hundred Dollars ($25,000 ("Security Deposit"), which will be held by LICENSOR without interest 500.00) as security for the full and faithful performance by LICENSEE Tenant of LICENSEE's covenants and all obligations under this Agreement, it being expressly understood that such deposit Lease (the “Security Deposit”). This Security Deposit is not an advance payment prepaid rent, but, rather is a good faith deposit for Tenant’s fulfillment of license fees Tenant’s Lease obligations, as well as a contingency against damages to the Unit, Apartment, Amenities and Complex. You are not entitled to apply any part of your Security Deposit against Rent, Additional Rent or a measure of LICENSOR's damages if LICENSEE defaults againother Lease obligations during the time you are occupying the Unit and Apartment. Following the payment Tenant shall forfeit all or part of the Security Deposit, upon and Landlord shall charge against the occurrence Security Deposit, for any damage, loss or expense, including but not limited to the cost of cleaning and any event damages resulting from moving out, resulting from Tenant's use or occupancy of the Unit, the Apartment or the Amenities, or necessary to cure any default by LICENSEETenant. This security deposit shall be deposited with a financial institution of Landlord’s selection, LICENSOR may, from time to time, without prejudice to in an account bearing interest at the prevailing rate for such accounts. Without limiting the foregoing and any other remedy provided rights of Landlord against the Security Deposit. Landlord will inspect the condition of the Unit, Apartment and Amenities after you move out and charge, against the Security Deposit, for any damages beyond ordinary wear and tear, excessive cleaning and trash and other removal charges, as well as any outstanding balances owed by Tenant under this Lease. After deducting from such security deposit any administrative fee permitted by law and any amounts applied by Landlord in accordance with this Agreement Lease, the balance of the security deposit, if any, plus accrued interest, if any, shall be returned to Tenant after the expiration or by lawearlier termination of this Lease. If Landlord uses the Security Deposit (or any portion thereof), use then Landlord shall notify Tenant in writing of the amount used, and Tenant shall immediately forward a like amount to Landlord to replenish the funds deducted from the Security Deposit. If Landlord sells, leases or otherwise transfers its interest in the Complex, Landlord shall turn over the Security Deposit to the extent necessary transferee. If a receiver is appointed in an action to make good any arrearages of payment owed by LICENSEE to LICENSOR foreclose a mortgage or any amount as to which LICENSEE is in default or for any other damagelien on the Complex, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to LICENSOR on demand the amount so applied in order to restore then Landlord shall turn over the Security Deposit to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreementreceiver. If LICENSEE the Complex is not sold by a referee in default of this Agreement upon an action to foreclose a mortgage or other lien on the termination of this AgreementComplex, LICENSOR agrees to return any remaining balance of such then Landlord shall turn over the Security Deposit to LICENSEE within thirty days the buyer. In any such case Landlord shall notify Tenant by registered or certified mail of the date of the termination of this Agreement. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from fact that the Security Deposit will in no event release LICENSEE from being in default under has been so transferred and give the terms name and address of this Agreementthe party to whom it has been transferred. LICENSOR will not be required to keep this Once the Security Deposit separate from its general fundsis transferred, Landlord shall be relieved of any further liability hereunder. LICENSEE agrees that it will not assign or encumber, or attempt The party to assign or encumber, whom 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 turned over will be responsible for repayment to refund the $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestTenant.

Security Deposit. If LICENSEE defaults under Tenant shall receive a comprehensive Move-­‐In and Move-­‐Out Inspection Report (The “Inspection Report” -­‐ attached hereto as Exhibit “A”) which lists for Tenant’s permanent retention any existing damages. Tenant is entitled to inspect the Residence to ascertain the accuracy of the terms Inspection Report prior to taking occupancy, and Tenant shall either sign the Inspection Report or conditions state specifically in writing the items listed therein to which Tenant dissents, and Tenant shall sign such statement of this Agreement more than two times during any twelve consecutive months during dissent. No such written report shall constitute a request for repairs within the term meaning of this AgreementParagraph 17 of the Lease. Upon Xxxxxx's receipt of the Inspection Report, LICENSEE agrees, that in addition the Reservation Fee will automatically be converted to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 (the "Security Deposit"), which will be held by LICENSOR without interest ) in the amount stated above as security for the full and faithful performance and observance by LICENSEE Tenant of LICENSEEeach and every term and covenant of this Lease, including, without limitation, the payment of Rent. The Security Deposit is being held in Escrow Account No. 1511070 at The National Bank of Georgia, Athens, Georgia maintained by Agent. Agent may, but is not obligated to, maintain such funds in an interest bearing account. Any interest accruing shall become the property of Agent. In the event of a sale or other conveyance of the Residence, Landlord shall be entitled to transfer the Security Deposit (or Reservation Fee) to the party who acquires the Residence, and from and after such transfer, Landlord shall be released of any liability with respect thereto. Before Tenant may occupy the Residence, the full Security Deposit and first month's covenants Rent indicated above must have been received by Landlord. The Security Deposit is not part of Rent and obligations under consequently cannot be deducted from the final month’s Rent due hereunder. The provisions relating to the Security Deposit are for the protection of Landlord, and are in addition to and not in limitation of Landlord’s other remedies set forth in this AgreementLease or at law, it being expressly understood that Tenant is completely responsible for Rent for the entire Lease Term and for any and all damages to the Residence or otherwise, all as provided herein, and that the Security Deposit may be set off against the total claims of Landlord and shall not constitute Landlord’s exclusive remedy. Further, Landlord can retain as much of the Security Deposit as is necessary to return the Residence to its original state when occupancy began, ordinary wear and tear excepted, in accordance with § 410 of the South Carolina Residential Landlord and Tenant Act, S.C. Code §27-­‐40-­‐10, et seq. Upon Xxxxxx’s surrendering possession of the Residence upon the termination or expiration of this Lease, Tenant and Landlord shall jointly inspect the Residence and complete the Move-­‐Out Inspection portion of the Inspection Report, listing any damage done to the Residence during the Lease Term which is the basis for any charge against the Security Deposit, and the estimated dollar value of such deposit is not damage. Landlord shall provide to Tenant, either prior to move-­‐out inspection or at the time of move-­‐out inspection, an advance payment itemized list of license fees anticipated costs for damage repair and work related to making the Residence ready for new occupancy. Tenant acknowledges that the extent of any necessary repairs or a measure work may vary within reason and such variations could increase or reduce the final cost of LICENSOR's damages or work billed to Tenant’s Security Deposit. Tenant agrees to leave all power, water and gas (if LICENSEE defaults againapplicable) on until the Termination Date, and the cost of having such utilities turned on to perform the inspection shall be borne by Tenant. Following Landlord and Tenant shall sign the payment Inspection Report; however, if Xxxxxx refuses to sign the Inspection Report, Xxxxxx must state specifically in writing the items on the Inspection Report to which Tenant dissents and shall sign the statement of dissent and deliver the same to Landlord in person or via certified United States Postal Service. Landlord shall deduct from the Security Deposit sums sufficient to compensate Landlord for the following items prior to returning the Security Deposit or any portion thereof to Tenant: (i) any failure to comply with the move-­‐out procedures (outlined in Paragraph 7 the “Move-­‐Out Procedures”), (ii) any damages to the Residence in excess of normal wear and tear, (iii) any damages to the Residence due to the negligence, carelessness, accident or abuse of Tenant, (iv) any unpaid sums due to Landlord under the terms of this Lease, including without limitation, Rent, late charges, utilities, returned or dishonored check charges, unpaid damage claims, pet fines, key replacement charges, charges for removing, packing and storing abandoned, seized or lawfully removed property, court costs and any actual damages caused by any breach of this Lease by Tenant, and (v) any noncompliance by Tenant with § 510 of the South Carolina Residential Landlord and Tenant Act. After deduction of the items specified in the immediately preceding sentence, the balance of the Security Deposit, upon if any, together with a written, itemized accounting of deductions shall be mailed by first class mail to Tenant no later than thirty (30) days after the occurrence termination of this Lease or the surrender and acceptance of the Residence, whichever occurs later. Tenant shall notify Landlord in writing at the time of move-­‐out inspection of Xxxxxx’s forwarding address in order to enable Landlord to return the statement required with respect to the Security Deposit and any appropriate return of any event portion of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to Tenant. In the extent necessary to make good any arrearages event that Tenant is comprised of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damagemore than one individual, injury, expense, or liability caused to LICENSOR by such event the refund of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application the portion of the Security Deposit, LICENSEE agrees Deposit shall be returned to pay each resident equally without regard to LICENSOR on demand the amount so applied in order to restore which Xxxxxx paid the Security Deposit and without regard to its original amount and LICENSEE's failure which Xxxxxx’s conduct resulted in any deductions there from. Refunds shall be mailed to do so within ten days of each Tenant at the date of demand will be, at LICENSOR's election, a material default under this Agreementforwarding address given to Landlord. If LICENSEE is Tenant has not supplied Landlord with the correct forwarding address, Tenant shall pay all costs incurred by Landlord in default of this Agreement upon the termination of this Agreement, 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 reissuing the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestDeposit.

Security Deposit. If LICENSEE defaults under any Section 36.01 Tenant has deposited with Landlord the sum of the terms or conditions of this Agreement more than two times during any twelve consecutive months during the term of this Agreement, LICENSEE agrees, that in addition $18,987.50 (if by check subject to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest collection) as security for the full and faithful punctual performance by LICENSEE Tenant of LICENSEE's covenants and obligations under all of the terms of this AgreementLease. Landlord shall deposit such security deposit in an interest bearing account in a financial institution to be selected by Landlord in its sole discretion. Landlord shall be entitled to receive as an administrative expense, it being expressly understood that a sum equal to one (1%) percent per annum upon such deposit is not an advance payment security deposit, the interest to be credited to Tenant annually. In the event Tenant defaults in the performance of license fees or a measure any of LICENSOR's damages if LICENSEE defaults again. Following the terms of this lease, including the payment of rent, Landlord may use, apply or retain the Security Deposit, upon whole or any part of the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit security so deposited to the extent necessary to make good required for the payment of any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default rent or for any other damagesum which landlord may expend or may be required to expend by reason of Tenant's default in respect of any of the terms of this lease, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such including any damages or deficiency accrue in the re-letting 51 52 of the Premises, whether accruing before or after termination summary proceedings or other re-entry by Landlord. In the case of this Agreement. Following any every such use, application of the Security Depositor retention, LICENSEE agrees to pay to 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 Tenant shall, within ten days of demand, pay to Landlord the date of demand will besum so used, at LICENSOR's election, a material default under this Agreementapplied or retained which shall be added to the security deposit so that the same shall be replenished to its former amount. If LICENSEE is not in default Tenant shall fully and punctually comply with all of the terms of this Agreement upon Lease, the security, together with any accrued interest thereon, less any administrative expenses to which Landlord is entitled pursuant to this Article 36, shall be returned to Tenant 30 days after the termination of this AgreementLease and delivery of the exclusive possession of the Premises to Landlord. In the event of a sale or lease of the Building, LICENSOR Landlord shall have the right to transfer the security to the vendee or lessee and landlord shall ipso factor be released by Tenant from all liability for the return of such security; and Tenant agrees to look solely to the new landlord for the return any remaining balance of such Security Deposit said security; and it is agreed that the provisions hereof shall apply to LICENSEE within thirty days every transfer or assignment made of the date of the termination of this Agreementsecurity to a new landlord. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will Tenant shall not assign or encumber, encumber or attempt to assign or encumber, encumber the monies deposited under this Agreement herein as security, security and that LICENSOR and neither Landlord nor its successors and or assigns will not shall be bound by any such actual assignment, encumbrance 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's request.

Security Deposit. If LICENSEE defaults under any of the terms or conditions Upon execution of this Agreement more than two times during any twelve consecutive months during the term of this AgreementLease, LICENSEE agrees, that in addition to curing such event of default, it each Tenant shall pay LICENSOR a security deposit equal to in the amount of $25,000 ("Security Deposit"), which will 500.00 per individual tenant. Tenant may not use the security deposit as payment for any rent due. The security deposit shall be held by LICENSOR without interest the Landlord as a security to make certain that the Tenant performs in accordance with the Tenant's obligations as contained in this Lease, as well as to pay for any damages or repairs necessitated by the conduct of the Tenant, the Tenant's guest or the Tenant's family. The deposit is non-refundable if Tenant does not occupy leased premises. An inspection form shall be provided to each unit on move-in. The form is to report the condition of the Residential Property and is not a request of maintenance or repairs. Within Forty-eight (48) hours after move-in, Tenant shall note any defects or damages on the form, and deliver the form to Levent and Xxxx Xxxx Xxxxx, 000 Xxxxx Xxxxxx, Indiana, Pennsylvania, 15701. Failure of Tenant to return this form shall be deemed as Tenant's acceptance of the Residential Property to be in good and clean condition. The Landlord shall have the right to deduct from the security deposit any amount due and owing to the Landlord, including any costs to professionally clean the rental unit or carpets. Any charges assessed for damages shall be divided equally among all Tenants, and deducted from the total security deposit for the full and faithful performance by LICENSEE rental unit. The Landlord shall not be responsible for returning any portion of LICENSEEthe security deposit to the Tenant unless the Tenant provides to the Landlord in writing at the termination of the Lease, the Tenant's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults againforwarding address. Following the payment of The Landlord shall forward to each Tenant the Security Deposit, upon the occurrence of less any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to 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 deductions within ten thirty (30) days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon following the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestLease.

Security Deposit. If LICENSEE defaults under any The Landlord acknowledges receipt on or before the Commencement Date of the terms or amount set out in Item 6(a) of the Term Sheet (the “Security Deposit”) to be held by the Landlord, without any liability whatsoever on the part of the Landlord for the payment of interest thereon, as a security deposit for the faithful performance by the Tenant of the terms, covenants and conditions of this Agreement more than two times during any twelve consecutive months Lease during the term Term hereof and not to be applied on account of Rent except as otherwise provided in this Agreement, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR Section 4.02. The Security Deposit will not be a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for limitation on the full Landlord’s damages or other rights and faithful performance by LICENSEE of LICENSEE's covenants and obligations remedies available under this AgreementLease or at law or in equity, it being expressly understood that such deposit is not nor shall the Security Deposit be either a payment of liquidated damages or an advance payment of license fees Rent. The Landlord shall have no fiduciary responsibilities or trust obligations whatsoever with regard to the Security Deposit and shall not assume the duties of a measure trustee for the Security Deposit. The Security Deposit shall not be mortgaged, assigned or encumbered by the Tenant and the Landlord shall not be bound by any such mortgage, assignment or encumbrance. It is understood and agreed between the parties that any portion of LICENSOR's damages if LICENSEE defaults again. Following the Security Deposit may, at the Landlord’s option, be applied toward the payment of overdue or unpaid Rent and may also be applied as compensation to the Landlord for any loss or damage sustained with respect to the breach on the part of the Tenant of any terms, covenants and conditions of this Lease, provided in all cases, however, that the Tenant’s liability hereunder is not limited to the amount of the Security Deposit. If during the Term any portion of the Security Deposit is so applied, upon then the occurrence Tenant shall on written demand deliver to the Landlord a sufficient amount by certified cheque to restore the Security Deposit to the original sum deposited. The Landlord shall refund to the Tenant after the expiry date of this Lease any event portion of default the Security Deposit not used by LICENSEE, LICENSOR may, from time to time, without prejudice the Landlord after application by the Landlord to any other remedy damage incurred by the Landlord by reason of the default of the Tenant under the terms of this Lease. It is further provided in this Agreement or by law, use that the Landlord will be discharged from all liability to the Tenant with respect to the Security Deposit to the extent necessary that it is transferred to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application purchaser of the Security Deposit, LICENSEE agrees to pay to LICENSOR on demand Landlord’s interest in 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 date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestLeased Premises.

Security Deposit. If LICENSEE defaults under any Pursuant to Paragraph 1.11 and Section 5 of the terms or conditions Original CCB Lease, Landlord currently holds a Security Deposit in the amount of this 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 One Hundred Twelve Thousand Eight Hundred Fifty-Five and 58/100 Dollars ($25,000 112,855.58) ("CCB Lease Security Deposit"). On the Commencement Date of this Lease, which will Eighty Two Thousand Five Hundred and 00/100 Dollars ($82,500.00) of the CCB Lease Security Deposit shall be released from obligations with respect to the CCB Lease and transferred to this Lease to be held by LICENSOR without interest Landlord as security for the full and faithful performance Security Deposit described in Paragraph 1.12 herein. The balance of the CCB Lease Security Deposit shall be released to Tenant as provided in the CCB Fifth LMA. The Security Deposit shall be held by LICENSEE of LICENSEELandlord to secure Tenant's covenants and obligations under this AgreementLease; however, it being expressly understood that such deposit the Security Deposit is not an advance payment of license fees or rental deposit nor a measure of LICENSORLandlord's damages if LICENSEE defaults againfor a default by Tenant under this Lease. Following Landlord may commingle the payment of Security Deposit with its funds and shall have no obligation to pay any interest on the Security Deposit. Landlord shall have the right to offset against the Security Deposit any sums owing from Tenant to Landlord and not paid when due, upon any damages caused by Tenant's default, the occurrence cost of curing any event of default by LICENSEETenant should Landlord elect to do so, LICENSOR mayand the cost of performing any repair, from time to timemaintenance or cleanup that is the responsibility of Tenant under this Lease. Offset against the Security Deposit shall not be an exclusive remedy in any of the above cases but may be invoked by Landlord, without prejudice at its option, in addition to any other remedy provided in by law or this Agreement or by law, use the Security Deposit Lease for Tenant's nonperformance. Landlord shall give notice to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE Tenant each time an offset is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of claimed against the Security Deposit, LICENSEE agrees and unless the Lease is terminated, Tenant shall within ten (10) days after such notice deposit with Landlord a sum equal to pay to LICENSOR on demand the amount of the offset so applied in order to restore that the Security Deposit to its original amount and LICENSEEtotal deposit amount, net of offset, shall remain constant throughout the Lease Term. Tenant's failure to do so within ten days of the date of demand will be, at LICENSOR's election, make such deposit after offset shall be a material default under this AgreementLease. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, LICENSOR agrees to return any Any remaining balance of such Security Deposit to LICENSEE within thirty days (together with a reasonable accounting and supporting evidence of the date of the termination of this Agreement. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR amounts, if any, withheld from the Security Deposit will in no event release LICENSEE from being in default under Deposit) shall be returned by Landlord to Tenant (or, at Landlord's option, to the terms last assignee of this Agreement. LICENSOR will not be required to 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 Tenant) when Tenant's obligations 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestLease have been fulfilled.

Security Deposit. If LICENSEE defaults Tenant has deposited with Landlord on the signing of this Lease the sum set forth in Section 1(i) above as security for the performance of Tenant’s obligations under this Lease. Landlord shall have the right to use, apply or retain any part or all of said security deposit to remedy any default of Tenant hereunder which remain uncured after any applicable notice and/or cure period, including, but not limited to, payment of any fixed rent, additional rent, holdover rent, services, fees, or other debts of Tenant due to Landlord, repair of all damage to Premises or repair or replacement of damage to other Property of Landlord caused by Tenant, or any of its agents, employees, invitees or licensee s, or expenses of re-renting and redecorating the terms or conditions Premises in the event Tenant vacates same prior to the expiration of this Agreement more than two the term. If Landlord applies any part of said security deposit to remedy any default of Tenant, Tenant shall, within ten (10) days after demand, deposit with Landlord the amount so applied so that Landlord shall have the full deposit on hand at all times during any twelve consecutive months during the term of this Agreement, LICENSEE agrees, that Lease. Tenant’s failure to replenish the security deposit shall be a default under this Lease. The remedy herein provided shall be in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other right or remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to 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 date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default Landlord may be entitled under the terms of this AgreementLease, and at law or in equity. LICENSOR will The entry of any judgment in any dispossess or other summary proceedings, or the re-entry by the Landlord for any reason shall not diminish the right of the Landlord to the use of said fund above mentioned, but his right thereto shall survive such judgment or re-entry. Anything herein to the contrary notwithstanding, at the end of Lease Year 3, provided Tenant is not in default following any applicable notice and cure period, the required amount of Security Deposit shall reduce by 25% to $150,000.00 and any excess then held by Landlord shall be refunded to Tenant within thirty (30) days after the commencement of Lease Year 4. Xxxxxxxx shall return the said security deposit to Tenant, without interest, and less any amounts due and owing Landlord hereunder or required to keep return the Premises to the condition required herein, on the later of the date set forth for the expiration of the Term of this Security Deposit separate Lease or sixty (60) days after the surrender of the Premises by Xxxxxx. Landlord may deliver the security deposit to the purchaser or other transferees of the Landlord’s interest in the Premises in the event that such interest is sold or otherwise transferred, and thereupon Landlord shall be discharged from its general fundsany further liability with respect to said security deposit. LICENSEE agrees It is expressly understood and agreed that the Tenant shall not and the Tenant represents that it will not assign mortgage, pledge, hypothecate, assign, convey or encumberotherwise encumber the security deposited with the Landlord hereunder. Tenant xxxxxx agrees not to look to the mortgagee of the Property, as mortgagee, mortgagee in possession, or attempt successor in title to assign or encumberthe Premises, for accountability for any security deposit required by the monies deposited under Landlord hereunder, unless said sums have actually been received by said mortgagee as security for the Tenant’s performance of 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestLease.

Security Deposit. Tenant has deposited with Landlord the Security Deposit. The Security Deposit shall be held by Landlord as a combined cleaning, damage and security deposit for the faithful performance by Tenant of all of the terms of this Lease. The Security Deposit shall not be mortgaged, assigned, transferred or encumbered by Tenant without the written consent of Landlord and any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. If LICENSEE defaults under any Rents or other sum due hereunder shall be overdue and unpaid or should Landlord make payments on behalf of the Tenant, or should Tenant fail to perform any of the terms or conditions of this Agreement more than two times during any twelve consecutive months during Lease, including and not limited to Tenant’s obligations to restore or clean the term of this AgreementPremises following vacation thereof, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR then Landlord may, from time to time, at its option and without prejudice to any other remedy provided in this Agreement which Landlord may have on account thereof, appropriate and apply said entire Security Deposit or so much thereof as may be necessary to compensate Landlord toward the payment of Rent or other sums due Landlord or for the loss or damage sustained by law, use Landlord due to such breach on the part of Tenant; Tenant shall within ten (10) days after demand therefore restore said Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by original sum deposited. Landlord may retain such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application portion of the Security DepositDeposit without obligation for repayment as is customary to restore, LICENSEE agrees repair or remove debris from the Premises following vacation by Tenant. This Security Deposit is not to pay to LICENSOR on demand the amount be characterized as rent until and unless so applied in order to restore the respect of a default. The Security Deposit to its original amount and LICENSEE's failure to do so within ten days of the date of demand will beshall not bear interest, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not nor shall Landlord be required to keep this Security Deposit such sum separate from its general funds. LICENSEE agrees Should Tenant comply with all of said terms and promptly pay all Rent and all other sums payable by Txxxxx when due to Landlord, said Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) at the expiration of the term of the Lease and Txxxxx’s vacation of the Premises, subject to any expenses that it will not assign Landlord may incur as a result of Txxxxx’s failure to comply with the provisions of this Lease. In the event Tenant fails to occupy the Premises in accordance with the terms of this Lease, Landlord’s remedies shall include, without limitation thereto, retention of all sums deposited herewith or encumber, or attempt otherwise paid pursuant 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 encumbranceLease. If LICENSEE cures In the event of default that triggered the obligation bankruptcy or other debt or creditor proceedings against Tenant, Landlord may elect to put up the $25,000 apply such Security Deposit first to all attorneys’ fees and is not costs incurred by Landlord and then in defaulteither to (i) the payment of Rent and other sums due Landlord for all periods prior to the filing of bankruptcy proceedings, LICENSOR agrees or (ii) the payment of Rent and other sums due to refund Landlord for all periods after the $25,000 amount put as a Security Deposit within ten days filing of the date of LICENSEE's requestbankruptcy proceedings.

Security Deposit. If LICENSEE defaults under any of On or before the terms or conditions of this Agreement more than two times during any twelve consecutive months during the term of this AgreementCommencement Date, LICENSEE agrees, that in addition to curing such event of default, it Tenant shall pay LICENSOR to Landlord a security deposit equal to $25,000 (the "Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not ) in an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults againamount equal to $3,875.00. Following the payment of the Security Deposit, upon Upon the occurrence of any event of default by LICENSEETenant, LICENSOR Landlord may, from time to time, without prejudice to any other remedy provided in this Agreement or by lawremedy, use the Security Deposit to the extent necessary to make good pay any arrearages arrears of payment owed by LICENSEE rent, or to LICENSOR or any amount as to which LICENSEE is in default or for pay any other sums owed to Landlord, or to pay the cost of any damage, injury, expense, or liability caused by any default by Tenant hereunder. Any remaining balance of (he Security Deposit shall be returned by Landlord to LICENSOR Tenant within a reasonable period of time after the termination or expiration of this Lease. The Security Deposit shall not be considered an advance payment of rent or a measure of Landlord's damages in case of default by Tenant. Tenant shall not be entitled to receive, and shall not receive, any interest on the Security Deposit, and Landlord may commingle the same with other monies of Landlord. In the event Landlord applies the Security Deposit or any portion thereof to the payment of any sum described above without this Lease terminating contemporaneously therewith, 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 defaulta sale or transfer of Landlord's interest hereunder, regardless whether Landlord shall have the right to transfer the Security Deposit to such damages purchaser or deficiency accrue before transferee, in which event Tenant shall look only to such purchaser or after termination of this Agreement. Following any such application transferee for the return of the Security Deposit, LICENSEE agrees and Landlord shall thereupon be released from all liability to pay to LICENSOR on demand Tenant for the amount so applied in order to restore return of the Security Deposit to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestDeposit.

Security Deposit. If LICENSEE defaults under any of Concurrently with the terms or conditions execution of this Agreement more than two times during any twelve consecutive months during the term of this AgreementLease, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR Tenant will give Landlord a security deposit equal to $25,000 ("Security Deposit"), (see page 14) which will be held by LICENSOR without interest Landlord shall retain as security for the full and faithful performance by LICENSEE Tenant of LICENSEE's all the terms, covenants and obligations under conditions of this AgreementLease. The Security Deposit may be placed in an interest bearing account and any interest that accrues shall be the sole property of the Landlord. The Security Deposit, it being expressly understood that such deposit is if and to the extent not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following applied toward the payment of damages or costs, including attorney’s fees suffered or incurred by Landlord as a result of Tenant’s breach of the Security Depositterms hereof, or otherwise not applied as permitted herein, shall be returned to tenant upon surrender and acceptance of the occurrence of any event of default by LICENSEE, LICENSOR may, from time leased premises. Landlord shall not be required to time, without prejudice to any other remedy provided in this Agreement or by law, use the apply Tenant’s Security Deposit to any charges or damages for Tenant’s failure to perform the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damageterms, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination covenants and conditions of this AgreementLease, but may do so at Landlord’s option. Following any In such application of the Security Depositevent, LICENSEE agrees to pay to LICENSOR on Tenant shall, upon written demand the from Landlord, deposit with Landlord an amount so applied in order sufficient to restore the Security Deposit to its original amount and LICENSEE's failure amount. Landlord’s right to do so within ten days possession of the date leased premises for non-payment of demand will be, at LICENSOR's election, a material default rent or for any other reason shall not be affected by reason of the fact that Landlord holds Tenant’s Security Deposit. Holding or applying the Security Deposit shall not limit Landlord’s right to exercise all remedies under this AgreementLease and/or provide by law, nor shall Landlord’s recovery of damages be limited to the amount of the Security Deposit (if Landlord’s damages exceed that amount. If LICENSEE Landlord reserves the right, in the event there is not in default more than one person as Tenant hereunder, to return the amount of this Agreement upon the Security Deposit, less appropriate charges, if any, by dividing the amount equally among all such persons unless otherwise specified by written notice signed by all persons and received by Landlord prior to the termination of this Agreement, LICENSOR agrees Lease. Landlord shall disburse the security deposit to return any remaining balance tenant or provide tenant with an accounting of such Security Deposit to LICENSEE funds withheld by landlord for damages or monies owed within thirty 60 days of from the expiration date of the termination of this Agreement. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestlease.

Security Deposit. If LICENSEE defaults under any of Tenant concurrently with the terms or conditions execution of this 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 Lease shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of Landlord in immediately available funds the Security Deposit. The Security Deposit may be applied by Landlord to cure, in whole or part, any default of Tenant under this Lease, and upon the occurrence notice by Landlord of any event of default by LICENSEEsuch application, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use Tenant shall replenish the Security Deposit in full by paying to Landlord within ten (10) days of demand the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreementso applied. Following any such Landlord's application of the Security Deposit, LICENSEE agrees Deposit shall not constitute a waiver of Tenant's default to pay to LICENSOR on demand the amount so applied in order to restore extent that the Security Deposit does not fully compensate Landlord for all losses, damages, costs and expenses incurred by Landlord in connection with such default and shall not prejudice any other rights or remedies available to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default Landlord under this AgreementLease or by Law. If LICENSEE is Landlord shall not in default of this Agreement upon the termination of this Agreement, LICENSOR agrees to return pay 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 interest on the Security Deposit will in no event release LICENSEE from being in default under the terms of this AgreementDeposit. LICENSOR will Landlord shall not be required to keep this the Security Deposit separate from its general fundsaccounts. LICENSEE agrees The Security Deposit shall not be deemed an advance payment of Rent or a measure of damages for any default by Tenant under this Lease, nor shall it be a bar or defense of any action that it will not assign Landlord may at any time commence against Tenant. In the absence of evidence satisfactory to Landlord of an assignment of the right to receive the Security Deposit or encumberthe remaining balance thereof, Landlord may return the Security Deposit to the original Tenant, regardless of one or more assignments of this Lease. Upon the transfer of Landlord's interest under this Lease, Landlord's obligation to Tenant with respect to the Security Deposit shall terminate upon transfer to the transferee of the Security Deposit, or attempt to assign or encumberany balance thereof. If Tenant shall fully and faithfully comply with all the terms, provisions, covenants, and conditions of this Lease, the monies deposited under this Agreement as securitySecurity Deposit, and that LICENSOR and its successors and assigns will not or any balance thereof, shall be bound by any such actual or attempted assignment or encumbrance. If LICENSEE cures the event of default that triggered the obligation returned to put up the $25,000 Security Deposit and is not then in default, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit Tenant within ten thirty (30) days after Landlord recovers possession of the date Premises or such longer time as may be permissible under Law. Tenant hereby waives any and all rights of LICENSEE's requestTenant under the provisions of Section 1950.7 of the California Civil Code or other Law regarding security deposits.

Security Deposit. If LICENSEE defaults under any of Tenant shall deposit with Landlord on the terms or conditions of date this 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 Third Amendment is executed by Tenant a security deposit equal to in the amount of $25,000 34,683.98 (the "Security Deposit"), which will ) to be held by LICENSOR Landlord, without interest obligation for interest, as security for the full and faithful Tenant's performance by LICENSEE of LICENSEE's covenants and obligations under this Agreementhereunder, it being expressly understood that such deposit the Security Deposit is not an advance payment of license fees rental deposit or a measure of LICENSORLandlord's damages if LICENSEE defaults againin case of Tenant's default. Following the payment of the Security Deposit, upon Upon the occurrence of any event of default hereunder by LICENSEETenant, LICENSOR Landlord may, from time to time, without prejudice to any other remedy provided in this Agreement herein or by law, use the Security Deposit to the extent necessary to make good pay any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is arrears in default or for Rent and any other damage, injury, expense, expense (including legal expenses) or liability caused to LICENSOR by such event default. If any or all of defaultsuch Security Deposit is so used, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE Tenant agrees to pay to LICENSOR on promptly following demand the amount so applied in order by Landlord to restore the such Security Deposit to its original amount. Landlord also may require Tenant to provide Landlord with an additional amount and LICENSEE's failure to do so within ten days be held as part of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in if Tenant commits a default under or if the terms of this AgreementLease is modified. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE Tenant agrees that it will not assign or encumber, encumber or attempt to assign or encumber, encumber the monies deposited under this Agreement with Landlord as security, the Security Deposit and that LICENSOR Landlord and its successors and assigns will shall 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 The Security Deposit and shall be Landlord's property. If Tenant is not then in default hereunder, any remaining balance of such Security Deposit shall be returned by Landlord to Tenant within a reasonable time (not to exceed sixty days) after the Expiration Date, or otherwise in compliance with applicable laws, provided that Tenant has fully and timely performed its obligations under this Lease, less the cost of restoring the Premises to its original condition, normal wear and tear excluded. If Landlord sells or transfers the Premises, or a substantial part thereof, Landlord shall have the right to transfer such Security Deposit to the transfee, and Landlord shall be thereupon released from all liability for return of such Security Deposit, and Tenant shall look solely to such transferee for the return and thereof. Additionally, Landlord acknowledges receipt of a calendar year 2003 Operating Expense reconciliation credit in the amount of $45,818.85 (the "Secondary Security Deposit") (the Security Deposit and Secondary Security Deposit shall be referred to collectively herein as the "Security Deposit") to be held by Landlord, without obligation for interest, as security for Tenant's performance hereunder, it being expressly understood that the Security Deposit is not an advance rental deposit or measure of Landlord's damages in case of Tenant's default. All of the terms and provisions set forth in the above paragraph of this Section 8, LICENSOR agrees shall apply to refund the Secondary Security deposit, except as otherwise noted below. Notwithstanding any of the foregoing provisions of this Section 8, upon the occurrence of any default hereunder by Tenant from July 1, 2004 through June 30, 2007, Landlord may, without prejudice to any other remedy provided herein or by law, use the Security Deposit and/or Secondary Security Deposit (at Landlord's sole discretion) to pay any arrears in Rent and any other damage, injury, expense (including legal expenses) or liability caused by such default. Commencing July 1, 2007, provided that Tenant has fully and timely performed its obligations under this Lease and there has not been an occurrence of any default hereunder by Tenant from July 1, 2004 through June 30, 2007, then the entire unused Secondary Security Deposit in the amount of $25,000 amount put 45,818.85 shall not be refunded to Tenant, but shall be credited against Tenant's next accruing months' Base Rental payments. Prior to July 1, 1007, if any or all of the Secondary Security Deposit is used by Landlord as provided herein, Tenant agrees: (a) promptly following demand by Landlord to restore such Secondary Security Deposit to its original amount, (b) no portion of the Secondary Security Deposit shall be available to Tenant as a credit against any Base Rental due and owing to Landlord under the Lease as set forth in the immediately preceding sentence of this paragraph, and (c) no portion of the Secondary Security Deposit within ten days of shall be available for refund to Tenant until after the date of LICENSEE's requestExpiration Date.

Security Deposit. If LICENSEE defaults under any of (a) Simultaneously with the terms or conditions execution of this Agreement more than two times during any twelve consecutive months during the term of this AgreementLease by Tenant, LICENSEE agrees, that in addition to curing such event of default, it Tenant shall pay LICENSOR provide Landlord with a security deposit in an amount equal to Thirty Eight Thousand, Nine Hundred Eighty-Eight and 93/100 Dollars ($25,000 38,988.93) (which, together with interest accrued thereon is hereinafter referred to as the "Security Deposit"), which will be held by LICENSOR without interest as . The Security Deposit shall 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 with respect to any covenant or condition of this Lease, including but not limited to the payment of Base Rent, additional rent or any other payment due under this Lease, and/or the obligation of Tenant to maintain the Premises and deliver possession thereof back to Landlord at the expiration or earlier termination of the Lease Term in the condition required herein, then Landlord may (without any waiver of Tenant's default being deemed to have occurred) apply all or any part of the Security Deposit to the payment of any sum in default, or any other sum which Landlord may be required or deem necessary to spend or incur by reason of Tenant's default, or to satisfy in part or in whole any damages suffered by Landlord as a result of Tenant's default. In the event of such application, Tenant shall promptly deposit with Landlord the amount necessary to restore the Security Deposit to the full amount set forth above. The parties expressly acknowledge and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood agree that such deposit the Security Deposit is not an advance payment of license fees Base Rent or additional rent, nor a measure of LICENSORLandlord's damages if LICENSEE defaults againin the event of any default by Tenant. Following If Tenant shall have fully complied with all of the payment covenants and conditions of this Lease, but not otherwise, the amount of the Security Deposit then held by Landlord shall be repaid to Tenant within thirty (30) days after the expiration or sooner termination of this Lease. In the event of a sale or transfer of Landlord's estate or interest in the Building, Landlord shall have the right to transfer the Security Deposit to the purchaser or transferee, and Landlord shall be considered released by Tenant from all liability for the return of the Security Deposit, upon if said purchaser or transferee acknowledges and accepts the occurrence Security Deposit (or a credit in respect thereof), and assumes Landlord's obligations under this Lease in writing, inclusive of any event Landlord's obligation to comply with the terms of default by LICENSEE, LICENSOR may, from time this Section 3.1 in relation to time, without prejudice to any other remedy provided in this Agreement or by law, use the return of the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to 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 date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestTenant.

Security Deposit. If LICENSEE defaults under any of Sublessee shall upon the terms or conditions execution of this Agreement more than two times during any twelve consecutive months during the term of this Agreement, LICENSEE agrees, that in addition ---------------- Sublease pay to curing such event of default, it shall pay LICENSOR Sublessor a security deposit in the amount of Sixteen Thousand Four Hundred Seventy-Two Dollars ($16,472.00), equal to $25,000 ("Security Deposit")one month's Base Rent, which will sum shall be held retained by LICENSOR without interest Sublessor as security for the full full, faithful and faithful timely performance of every provision of this Sublease to be performed by LICENSEE Sublessee. If Sublessee defaults with respect to any provision of LICENSEE's covenants and obligations under this AgreementSublease, it being expressly understood that such deposit is including but not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following limited to the provisions relating to the payment of the Security DepositBase Rent, upon the occurrence Sublease Operating Expenses, or Shared Building Expenses, Sublessor may use, apply or retain all or any part of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to for the extent necessary to make good payment of any arrearages of payment owed by LICENSEE to LICENSOR Base Rent, Sublease Operating Expenses, or Shared Building Expenses or any other sum in default, or for the payment of any other amount as which Sublessor may spend or become obligated to which LICENSEE is in default spend by reason of Sublessee's default, or to compensate Sublessor for any other damage, injury, expense, loss or liability caused to LICENSOR damage which Sublessor may suffer by such event reason of Sublessee's default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following If any such application portion of the Security DepositDeposit is so used, LICENSEE agrees to pay to LICENSOR on applied or retained Sublessee will within ten (10) days after written demand the deposit cash with Sublessor in an amount so applied in order sufficient to restore the Security Deposit to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreementamount. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR Sublessor will not be required to keep this the 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, funds and that LICENSOR and its successors and assigns Sublessee will not be bound by any such actual entitled to interest on the Security Deposit. The Security Deposit will not be deemed a limitation on Sublessor's damages or attempted assignment a payment of liquidated damages or encumbrancea payment of the Base Rent, Sublease Operating Expenses, or Shared Building Expenses for the last month of the Sublease Term. If LICENSEE cures Sublessee fully, faithfully and in a timely manner performs every provision of this Sublease to be performed by it, 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 or any balance of the $25,000 amount put as a Security Deposit will be returned to Sublessee within ten sixty (60) days of after the date of LICENSEE's requestSublease Expiration Date.

Security Deposit. If LICENSEE defaults under any of the terms or conditions of this Agreement more than two times during any twelve consecutive months during the term of this Agreement8. SIMULTANEOUSLY WITH THE EXECUTION OF THIS LEASE, LICENSEE agrees, that in addition to curing such event of default, it TENANT SHALL DEPOSIT WITH LANDLORD THE SUM OF $71,992.20 which shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest Landlord as security for the full and faithful performance by LICENSEE Tenant of LICENSEE's all the terms, covenants and obligations under conditions of this Agreement, it being expressly understood Lease. Provided that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following at the payment end of the Security Depositterm Tenant shall have delivered up the Premises to Landlord, upon broom clean, and in the occurrence of any event of default by LICENSEEsame condition as at the commencement date, LICENSOR mayreasonable wear excepted, from time said sum held as security shall be returned to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this AgreementTenant. Following any such application of the Security Deposit, LICENSEE agrees to pay to LICENSOR on demand the amount so applied in order to restore the Security Deposit to its original amount No interest shall be payable thereon and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will Landlord shall not be required to keep this Security Deposit said sum in a separate from its general fundsaccount. LICENSEE agrees that it will not assign If Tenant fails to pay any Rent or encumberother charges due hereunder, or attempt otherwise defaults with respect to assign any provision of this Lease, Landlord may at its option apply or encumberretain all or any portion of the deposit for the payment of any Rent or other charge in default or the payment of any other sum to which Landlord may become obligated by Tenant’s default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby. If Landlord so uses or applies all or any portion of the monies deposited deposit, then within 10 days after demand therefor Tenant shall 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 be a material breach of this Lease. Landlord’s application or retention of the deposit shall not constitute a waiver of Tenant’s default to the extent that the deposit does not fully compensate Landlord for all losses or damages incurred by Landlord in connection with such default and shall not prejudice any other rights or remedies available to Landlord under this Agreement as securityLease or by law. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, 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 defaultand, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit within ten days without limitation of the date scope of LICENSEE's requestsuch waiver, acknowledges that Landlord may use all or any part of the security deposit to compensate Landlord for damages resulting from termination of this Lease and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2). No security or guaranty which may now or hereafter be furnished Landlord for the payment of the rent herein reserved or for performance by Tenant of the other covenants or conditions of this Lease shall in any way be a bar or defense to any action in unlawful detainer, or for the recovery of the premises, or to any action which Landlord may at any time commence for a breach of any of the covenants or conditions of this Lease.

Security Deposit. If LICENSEE defaults under any of the terms or conditions of this 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 ("Holding/Security Deposit"): Resident shall supply Security Deposit of one month’s rent. If upon the applying for the Lease Resident deposited with Landlord a Holding Deposit, which of one month’s rent, the Holding Deposit shall become the Security Deposit. The Holding Deposit will secure the unit until all Residents have signed and returned (and co-signed by co-signer when applicable) all lease documents. Failure of all Residents to execute the lease and other paperwork within 7 days of initial agent signing shall permit the Landlord to declare the Lease terminated and the Holding Deposit forfeited as liquidated damages for the Landlord’s anticipated lost rent. The Security Deposit shall be held by LICENSOR without interest as security for used to secure the full and faithful performance by LICENSEE Resident of LICENSEE's covenants each and obligations under every term, provision, covenant and condition of this Agreement, it being expressly understood that such deposit is not an advance payment Lease and the duties of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or Resident required by law, use including Resident’s duty to leave the premises clean (carpet cleaned, otherwise in “broom clean” condition, no holes or damage to walls (other than small nail holes for picture-hanging). At the termination of this Lease for whatever cause, Landlord may use, apply or retain all or any portion of the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or pay for any other damageunpaid or unfulfilled obligation of Resident arising under this Lease or by law. The Security Deposit may be applied at Landlord’s sole option, injuryas partial damages for Resident's premature termination of the Lease including by vacating and failing to pay rent obligations. In addition, expenseLandlord may recover any damages suffered in excess of the unused Security Deposit. Any portion not so used, applied or liability caused retained shall be refunded to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or Resident in accordance with applicable law after termination of this Agreement. Following any such application the tenancy and delivery of possession of the Security DepositPremises to Landlord with interest, LICENSEE agrees if any, required by law. Landlord will send an itemized list of deductions to pay the designated resident (designated by residents) with the remainder of funds. It is the responsibility of the residents to LICENSOR on demand disburse the amount so applied in order to restore funds accordingly. Resident shall not utilize the Security Deposit as rent, deduct the same from the last month's rent, or require Landlord to its original amount and LICENSEE's failure indemnify itself by resort to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in with respect to any violation or default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's request.by

Security Deposit. If LICENSEE defaults under any of the terms or conditions 11.1 Simultaneously with Tenant’s execution of this Agreement more than two times during any twelve consecutive months during Lease, Tenant shall deposit with Landlord the term of this Agreement, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR Security Deposit Amount as a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE Tenant of LICENSEE's covenants all of Tenant’s obligations, covenants, conditions and agreements under this Lease. Landlord shall not be required to maintain such security deposit in a separate account. Tenant shall not be entitled to interest on the security deposit. Within thirty (30) days after the later of the expiration or earlier termination of the Lease Term or Tenant’s vacating the Premises, Landlord shall return such security deposit to Tenant, less such portion thereof as Landlord shall have appropriated to satisfy any of Tenant’s obligations under this AgreementLease or to satisfy an Event of Default (or such other event which, it being expressly understood that with the giving of notice or the passage of time or both, would constitute an Event of Default) under this Lease, and subject to retention of such deposit is not an advance amount as Landlord may determine to be appropriate to secure payment of license fees any rentals or a measure charges or adjustments thereof which may become due following expiration or termination. If Tenant fails to pay rent or other charges due hereunder, or otherwise defaults with respect to any provision of LICENSOR's damages if LICENSEE defaults again. Following this Lease, Landlord shall have the right, but shall not be obligated, to use, apply or retain all or any portion of the Security Deposit for the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any rent or other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is charge in default or for the payment of any other damagesum to which Landlord may become obligated by reason of Tenant’s default, injuryto repair damages to the Premises caused by Tenant, expenseto clean the Premises upon expiration or termination, or liability caused to LICENSOR by such event of defaultcompensate Landlord for any loss or damage which Landlord may suffer thereby, regardless whether such including, but not limited to, damages or deficiency accrue before or after recoverable following termination of this AgreementLease by reason of an Event of Default as herein provided, and any and all amounts Landlord may spend or become obligated to spend, or for the compensation of Landlord for any losses incurred, by reason of such event. Following If any such application portion of the Security Depositsecurity deposit (in whatever form) is so used or applied, LICENSEE agrees then within five (5) business days after Landlord gives written notice to pay to LICENSOR on demand the Tenant of such use or application, Tenant shall deposit with Landlord cash in an amount so applied in order sufficient to restore the security deposit to the original Security Deposit to its original amount Amount, and LICENSEE's Tenant’s failure to do so within ten days shall constitute an Event of the date of demand will be, at LICENSOR's election, a material default Default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestLease.

Security Deposit. If LICENSEE defaults under any of the terms or conditions Upon execution of this Agreement more than two times during any twelve consecutive months during Lease, Tenant shall provide the term of this Agreementfollowing amount to Landlord, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR be held as a security deposit equal for the reasonable cleaning or repair of damages to $25,000 ("Security Deposit"the Property upon the expiration or termination of this lease or in case of default by Tenant: $ ( dollars), which . The security deposit shall not be in excess of two months' Rent for an initial year of Tenancy and one month's rent for subsequent years of Tenancy. The security deposit will be held by LICENSOR without interest as security for at the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees following financial institution: Tenant hereby agrees to be liable to Landlord at the expiration or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this AgreementLease for all damages to the Property, except ordinary wear and tear. Following Landlord may hold the security deposit in a non-interest-bearing account. In such case, no interest is due to Tenant and Tenant may not use the security deposit to cover Rent. Landlord may otherwise elect to hold security deposit in an interest-bearing account and allow Tenant to receive certain interest funds, if applicable. Tenant shall still not be permitted to use the security deposit to cover any such application Rent. In case of sale or assignation of the Security DepositLease by Landlord, LICENSEE Xxxxxx's security deposit shall be transferred to the new owner or assignee and Landlord shall be released from liability to Tenant for return of the security deposit. Deductions from the security deposit may be made for the following reasons (this list constitutes examples only and is not intended to be exhaustive): unpaid rent or utilities, late fees, cleaning, key replacement, removing abandoned property, and/or attorneys' fees for proceedings against Xxxxxx. Landlord shall have 30 (thirty) days in which to return the security deposit and/or an itemized list of deductions, if applicable. If Landlord requires deductions which exceed the security deposit, Xxxxxx agrees to pay to LICENSOR on demand the Landlord any overage 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 after receiving a written demand from Landlord. Landlord will first apply the date of demand will besecurity deposit to any non-rent obligations, at LICENSOR's electionsuch as damages, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign or encumberutilities, or attempt to assign or encumber, the monies deposited under this Agreement as securitylate fees, and that LICENSOR and its successors and assigns will not be bound by then apply the security deposit to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestunpaid rent.

Security Deposit. Upon execution of this Lease, Tenant agrees to deposit with Landlord a Security Deposit in the amount set forth in Section 2.15. as security for Tenant’s performance of its obligations under this Lease. Landlord and Tenant agree that the Security Deposit may be commingled with funds of Landlord and Landlord shall have no obligation or liability for payment of interest on such deposit. Tenant shall not mortgage, assign, transfer or encumber the Security Deposit without the prior written consent of Landlord and any attempt by Tenant to do so shall be void, without force or effect and shall not be binding upon Landlord. If LICENSEE defaults Tenant fails to timely pay any Rent or other amount due under this Lease, or fails to perform any of the terms or conditions of this Agreement more than two times during any twelve consecutive months during the term of this Agreementhereof, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR Landlord may, from time to time, at its option and without prejudice to any other remedy provided in this Agreement which Landlord may have, appropriate and apply or use all or any portion of the Security Deposit for Rent payments or any other amount then due and unpaid, for payment of any amount for which Landlord has become obligated as a result of Tenant’s default or breach, and for any loss or damage sustained by lawLandlord as a result of Tenant’s default or breach. If Landlord so uses any of the Security Deposit, use Tenant shall, within ten (10) days after written demand therefor, restore the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any full amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreementoriginally deposited. Following any such application of the Security Deposit, LICENSEE agrees to pay to LICENSOR on demand the amount so applied in order to restore the Security Deposit to its original amount and LICENSEE's Tenant’s failure to do so within ten days shall constitute an act of default hereunder and Landlord shall have the right to exercise any remedy provided for in Section 19. hereof. If Tenant defaults under this Lease more than two (2) times during any calendar year, irrespective of whether such default is cured, then, without limiting Landlord’s other rights and remedies, Landlord may, in Landlord’s sole discretion, modify the amount of the date required Security Deposit. Within ten (10) days after Notice of demand will besuch modification, at LICENSOR's electionTenant shall submit to Landlord the required additional sums. Tenant’s failure to do so shall constitute an act of default, a material default under this Agreementand Landlord shall have the right to exercise any remedy provided for in Section 19. hereof. If LICENSEE Tenant complies with all of the terms and conditions of this Lease, and Tenant is not in default on any of this Agreement its obligations hereunder, then within the time period statutorily prescribed after Tenant vacates the Premises, Landlord shall return to Tenant (or, at Landlord’s option, to the last subtenant or assignee of Tenant’s interest hereunder) the Security Deposit less any expenditures made by Landlord to repair damages to the Premises caused by Tenant and to clean the Premises upon the expiration or earlier termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestLease.

Security Deposit. If LICENSEE Tenant shall maintain on deposit with Landlord the sum of $3,823,990.00 (or such lower amount as specified for the Letter of Credit in Section 7.2(a) below) as security (the “Security Deposit”) for the faithful performance and observance by Tenant of the terms, covenants, conditions, agreements and provisions of this Lease. It is agreed that in the event Tenant defaults under (beyond any applicable grace or cure period) in respect of any of the terms terms, covenants, conditions, agreements or conditions provisions of this Agreement more than two times during any twelve consecutive months during the term of this AgreementLease, LICENSEE agreesincluding, that in addition to curing such event of defaultbut not limited to, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of Fixed Rent and Additional Rent, Landlord may use, apply or retain the Security Deposit, upon the occurrence whole or any part of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages required for the payment of payment owed by LICENSEE to LICENSOR Fixed Rent, Additional Rent or any amount other sum as to which LICENSEE Tenant is in default or for any other damagesum which Landlord may expend or may be required to expend by reason of Tenant’s default in respect of any of the terms, injurycovenants, expenseconditions, agreements and provisions of this Lease, including, but not limited to, any damages or liability caused to LICENSOR by such event deficiency in the reletting of defaultthe Premises, regardless whether such damages or deficiency accrue accrued before or after termination summary proceedings or other re-entry by Landlord. In the event that Tenant shall fully and faithfully comply with all of the terms, covenants, conditions, agreements and provisions of this Agreement. Following any such application Lease, the Security Deposit shall be returned to Tenant, without interest, within sixty (60) days after the date fixed as the end of this Lease and after delivery of entire possession of the Security DepositPremises to Landlord. In the event of a sale of the Land and the Building, LICENSEE agrees Landlord shall have the right to pay to LICENSOR on demand the amount so applied in order to restore either (i) transfer the Security Deposit to its original amount Tenant and LICENSEE's failure to do so within ten days of Landlord shall thereupon be released by Tenant from all liability for the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 Deposit, or (ii) transfer the Security Deposit will to the new landlord in no event release LICENSEE from being in default under which case Tenant agrees to look solely to the terms new landlord for the return of this Agreementsaid Security Deposit. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees Tenant further covenants that it will not assign or encumber, encumber or attempt to assign or encumber, encumber the monies deposited under this Agreement herein as security, the Security Deposit and that LICENSOR and neither Landlord nor its successors and or assigns will not shall be bound by any such actual or assignment, encumbrance, attempted assignment or attempted encumbrance. If LICENSEE cures In the event of default any bankruptcy or other insolvency proceeding against Tenant, it is agreed that triggered the obligation to put up the $25,000 Security Deposit held hereunder shall be deemed to be applied by Landlord to Rent and is not then in default, LICENSOR agrees other charges due to refund Landlord for the $25,000 amount put as a last month of the Lease Term and each preceding month until such Security Deposit within ten days of the date of LICENSEE's requestis fully applied.

Security Deposit. If LICENSEE defaults under any of Tenant concurrently with the terms or conditions execution of this 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 Lease shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of Landlord in immediately available funds the Security Deposit. The Security Deposit may be applied by Landlord to cure, in whole or part, any default of Tenant under this Lease, and upon the occurrence notice by Landlord of any event of default by LICENSEEsuch application, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use Tenant shall replenish the Security Deposit in full by paying to Landlord within ten (10) days of demand the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreementso applied. Following any such Landlord’s application of the Security Deposit, LICENSEE agrees Deposit shall not constitute a waiver of Tenant’s default to pay to LICENSOR on demand the amount so applied in order to restore extent that the Security Deposit does not fully compensate Landlord for all losses, damages, costs and expenses incurred by Landlord in connection with such default and shall not prejudice any other rights or remedies available to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default Landlord under this AgreementLease or by Law. If LICENSEE is Landlord shall not in default of this Agreement upon the termination of this Agreement, LICENSOR agrees to return pay 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 interest on the Security Deposit will in no event release LICENSEE from being in default under the terms of this AgreementDeposit. LICENSOR will Landlord shall not be required to keep this the Security Deposit separate from its general fundsaccounts. LICENSEE agrees The Security Deposit shall not be deemed an advance payment of Rent or a measure of damages for any default by Tenant under this Lease, nor shall it be a bar or defense of any action that it will not assign Landlord may at any time commence against Tenant. In the absence of evidence satisfactory to Landlord of an assignment of the right to receive the Security Deposit or encumberthe remaining balance thereof, Landlord may return the Security Deposit to the original Tenant, regardless of one or more assignments of this Lease. Upon the transfer of Landlord’s interest under this Lease, Landlord’s obligation to Tenant with respect to the Security Deposit shall terminate upon transfer to the transferee of the Security Deposit, or attempt to assign or encumberany balance thereof. If Tenant shall fully and faithfully comply with all the terms, provisions, covenants, and conditions of this Lease, the monies deposited under this Agreement as securitySecurity Deposit, and that LICENSOR and its successors and assigns will not or any balance thereof, shall be bound by any such actual or attempted assignment or encumbrance. If LICENSEE cures the event of default that triggered the obligation returned to put up the $25,000 Security Deposit and is not then in default, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit Tenant within ten thirty (30) days after Landlord recovers possession of the date of LICENSEE's request.Premises or such longer time as may be permissible under Law. ​

Security Deposit. If LICENSEE defaults under any of Concurrently with the terms or conditions execution of this Agreement more than two times during any twelve consecutive months during the term of this AgreementLease, LICENSEE agrees, that in addition to curing such event of default, it Tenant shall pay LICENSOR deposit with Landlord a security deposit equal in the sum specified in provision 1.9 of the Basic Provisions by either a check or letter of credit issued by a financial institution in California acceptable to $25,000 ("Landlord and in form and substance satisfactory to Landlord as the Security Deposit"), which will . The Security Deposit shall be held by LICENSOR without interest Landlord as security for the full and faithful performance by LICENSEE of LICENSEETenant's covenants and obligations under this Agreement, it being expressly understood that such deposit Lease. The Security Deposit is not an advance Basic Rent deposit, an advance payment of license fees any other kind, or a measure of LICENSORLandlord's damages if LICENSEE defaults againin case of Tenant's default. Following If Tenant fails to comply with the payment of the Security Deposit, upon the occurrence full and timely performance of any event or all of default by LICENSEETenant's covenants and obligations set forth in this Lease, LICENSOR then Landlord may, from time to time, without prejudice to waiving any other remedy provided in this Agreement or by lawavailable to Landlord, use the Security Deposit Deposit, or any portion of it, to the extent necessary to make good any arrearages of payment owed cure or remedy such failure or to compensate Landlord for all damages sustained by LICENSEE Landlord resulting from Tenant's failure to LICENSOR or any amount as comply fully and timely with its obligations pursuant to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this AgreementLease. Following any such application of the Security Deposit, LICENSEE agrees to Tenant shall immediately pay to LICENSOR Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount amount, and LICENSEETenant's failure to immediately do so within ten shall constitute a default under the Lease. If Tenant is in compliance with the covenants and obligations set forth in this Lease at the time which is thirty (30) days following the time of both the expiration or termination of the date Lease and Tenant's vacating of demand will bethe Premises as provided in California Civil Code Section 1950.7, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon Landlord shall return the termination of this Agreement, LICENSOR agrees to return any remaining balance of such Security Deposit to LICENSEE within thirty days Tenant after the expiration or termination of the date Lease and Tenant's vacating of the termination of this AgreementPremises. LICENSORLandlord's deduction of any amounts owed by LICENSEE obligations with respect to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under the terms are those of this Agreementa debtor and not a trustee. LICENSOR will Landlord shall not be required to keep this maintain the Security Deposit separate and apart from its Landlord's general or other funds, and Landlord may commingle the Security Deposit with any of Landlord's general or other funds. LICENSEE agrees that it will Tenant shall not assign or encumber, or attempt at any time be entitled to assign or encumber, interest on 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestDeposit.

Security Deposit. If LICENSEE defaults under any Tenant will pay Landlord on the date this Lease is executed by Tenant the Security Deposit set forth in Item 9 of the terms or conditions of this 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"), which will be held by LICENSOR without interest Basic Lease Provisions as security for the full performance of the terms hereof by Tenant. Tenant shall not be entitled to interest thereon and faithful performance by LICENSEE Landlord may commingle such Security Deposit with any other funds of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is Landlord. The Security Deposit shall not be considered an advance payment of license fees rental or a measure of LICENSORLandlord's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event in case of default by LICENSEETenant. If Tenant defaults with respect to any provision of this Lease, LICENSOR Landlord may, but shall not be required to, from time to time, without prejudice to any other remedy provided in remedy, use, apply or retain all or any part of this Agreement or by law, use the Security Deposit to for the extent necessary to make good payment of any arrearages of payment owed by LICENSEE to LICENSOR Rent or any amount as to which LICENSEE is other sum in default or for the payment of any other damage, injury, expense, amount which Landlord may spend or liability caused become obligated to LICENSOR spend by such event reason of Tenant's default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default, regardless whether such damages or deficiency accrue before or after termination including, without limitation, costs and reasonable attorneys' fees incurred by Landlord to recover possession of the Premises. If Tenant shall fully and faithfully perform every provision of this Agreement. Following any such application of the Security DepositLease to be performed by it, LICENSEE agrees to pay to LICENSOR on demand the amount so applied in order to restore the Security Deposit shall be returned to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, LICENSOR agrees to return any remaining balance of such Security Deposit to LICENSEE Tenant within thirty (30) days of after the date of the termination of this AgreementExpiration Date. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE Tenant agrees that it will not assign or encumber, encumber or attempt to assign or encumber, encumber the monies deposited under this Agreement herein as security, the Security Deposit and that LICENSOR Landlord and its successors and assigns will shall not be bound by any such actual or attempted assignment or encumbrance. If LICENSEE cures Regardless of any assignment of this Lease by Tenant, Landlord may return the event of default that triggered the obligation to put up the $25,000 Security Deposit and is not then to the original Tenant, in default, LICENSOR agrees the absence of evidence satisfactory to refund Landlord of an assignment of the $25,000 amount put as a right to receive the Security Deposit within ten days or any part of the date of LICENSEE's requestbalance thereof.

Security Deposit. If LICENSEE defaults Landlord and Tenant acknowledge that Landlord is currently holding Tenant's security deposit in the amount of $63,208.90 under any the prior existing lease(s) by and between Landlord and Tenant. The parties agree that Landlord shall retain the deposit described in the foregoing sentence as the "Security Deposit" under this Lease notwithstanding anything to the contrary contained in the prior lease(s) regarding return of the terms or conditions of this Agreement more than two times during security deposit upon lease termination. Tenant shall not be required to deposit any twelve consecutive months during the term of this Agreement, LICENSEE agrees, that sum in addition to curing such event the Security Deposit with Landlord upon execution of default, it this Lease. The Security Deposit shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest Landlord as security for the full and faithful performance by LICENSEE Tenant of LICENSEE's covenants all the terms, covenants, and obligations under conditions of this AgreementLease to be kept and performed by Tenant during the Lease Term. The Security Deposit shall not be mortgaged, it being expressly understood that such deposit is assigned or encumbered in any manner whatsoever by Tenant without the prior written consent of Landlord. If an Event of Default by Tenant occurs with respect to any provisions of this Lease, including, but not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following limited to, the provisions relating to the payment of the Security DepositRent, upon the occurrence of any event of default by LICENSEE, LICENSOR Landlord may, from time to timebut shall not be required to, without prejudice to use, apply or retain all or any other remedy provided in this Agreement or by law, use part of the Security Deposit to for the extent necessary to make good payment of any arrearages of payment owed by LICENSEE to LICENSOR Rent or any other sum in default, or for the payment of any amount as that Landlord may spend or become obligated to which LICENSEE is in default spend by reason of Tenant's default, or to compensate Landlord for any other damage, injury, expense, loss or liability caused to LICENSOR damage that Landlord may suffer by such event reason of Tenant's default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following If any such application portion of the Security DepositDeposit is so used or applied, LICENSEE agrees to pay to LICENSOR on Tenant shall, within fifteen (15) days after written demand the therefor, deposit cash with Landlord in an amount so applied in order sufficient to restore the Security Deposit to its original amount and LICENSEE's failure to do so within ten days amount. The use, application or retention of the date Security Deposit, or any portion thereof, by Landlord shall not (a) prevent Landlord from exercising any other right or remedy provided by this Lease or by law, it being intended that Landlord shall not first be required to proceed against the Security Deposit, nor (b) operate as a limitation on any recovery to which Landlord may otherwise be entitled. Tenant acknowledges that Landlord has the right to transfer or mortgage its interest in the Real Property and the Building and in this Lease and Tenant and Landlord agree that in the event of demand will beany such transfer or mortgage, at LICENSOR's electionLandlord shall transfer the Security Deposit to the transferee or mortgagee. Upon such transfer or assignment of the Security Deposit, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon Landlord shall thereby be released by Tenant from all liability or obligation for the termination of this Agreement, LICENSOR agrees to return any remaining balance of such Security Deposit and Tenant shall look solely to LICENSEE within thirty days such transferee or mortgagee for the return of the date Security Deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit, or any balance thereof, shall be returned to Tenant, or, at Landlord's option, to the last assignee of Tenant's interest hereunder, within sixty (60) days following the expiration of the termination of this AgreementLease Term. LICENSOR's deduction of Tenant shall not be entitled to any amounts owed by LICENSEE to LICENSOR from interest on the Security Deposit will in no event release LICENSEE from being in default under Deposit. Tenant hereby waives the terms provisions of this Agreement. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign or encumber, or attempt to assign or encumber, Section 1950.7 of the monies deposited under this Agreement as securityCalifornia Civil Code, and all other provisions of law, now or hereafter in force, which provide that LICENSOR and its successors and assigns will not be bound 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 such actual other loss or attempted assignment damage, foreseeable or encumbrance. If LICENSEE cures unforeseeable, caused by the event act or omission of default that triggered the obligation to put up the $25,000 Security Deposit and is not then in defaultTenant or any officer, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit within ten days employee, agent or invitee of the date of LICENSEE's requestTenant.

Security Deposit. If LICENSEE defaults under any of Concurrently with the terms or conditions execution of this Agreement more than two times during any twelve consecutive months during Lease, Tenant has deposited with Landlord or its beneficiaries the term of this Agreement, LICENSEE agrees, that sums as provided in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest Section 1 as security for the full and faithful performance of every provision of this Lease to be performed by LICENSEE Tenant, such sums to be held by Landlord without any obligation on Landlord's part to pay or credit any interest thereon. If Tenant defaults with respect to any provision of LICENSEE's covenants and obligations under this AgreementLease, it being expressly understood that such deposit is including but not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following limited to the provisions relating to the payment of Rent, and improper removal of property from the Security DepositPremises upon termination of either the Lease or Tenant's right to possession, upon Landlord, at Landlord's option, may use, apply or retain any part of said security deposit for the occurrence payment of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to Rent and any other remedy provided sum in this Agreement default, or for the payment of any other amount which Landlord may spend or become obligated to spend by law, use the Security Deposit to the extent necessary to make good any arrearages reason of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in Tenant's default or to compensate Landlord for any other damageloss or damage which Landlord may suffer reason or Tenant's default. If any portion of said security deposit is so used or applied, injury, expense, Tenant shall within TEN (10) days after written demand therefor deposit cash with Landlord or liability caused to LICENSOR by such event of default, regardless whether such damages its beneficiaries or deficiency accrue before other designee or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to LICENSOR on demand the Landlord in an amount so applied in order sufficient to restore the Security Deposit security deposit to its original the amount required by the lease, and LICENSEETenant's failure to do so within ten days shall be a material breach of this Lease. The use, application or retention of the date of demand will besecurity deposit, or any portion thereof, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by law or at LICENSOR's electionequity (it being intended that Landlord shall not first be required to proceed against the security deposit) and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. Except to the extend required by law, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will Landlord and its beneficiaries shall not be required to keep this Security Deposit said security deposit separate from its their general fundsfunds and Tenant shall not be entitled to interest on any security deposit. LICENSEE agrees that it will not assign In no event shall the security deposit held hereunder be used or encumbercredited to the final months' Rent hereunder. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, said security deposit or any balance thereof shall be returned to Tenant within thirty (30) days after the expiration of the Lease Term and Tenant's vacation of the Premises. In Absence of evidence satisfactory to the Landlord of permitted assignments of the right to receive the security deposit, or attempt of the remaining balance thereof, Landlord may return the same to assign the original Tenant, regardless of one or encumbermore assignments of Tenant's interest in this Lease or the security deposit. In the event, upon the return of the security deposit, or the remaining balance thereof, to the original Tenant, Landlord shall be completely relieved of liability with respect to the security deposit. Landlord may deliver the security deposit funds deposited hereunder by Tenant to the purchaser of Landlord's interest in Building, in the event that such interest is sold, and thereupon Landlord and its beneficiaries shall be discharged from any further liability with respect to said security deposit, although such purchaser shall be liable to Tenant hereunder. Notwithstanding anything to the contrary contained herein, so long as Tenant has not been in default in the payment of any monies deposited due under this Agreement as security, Lease the thirty seventh month Base Rent and that LICENSOR and its successors and assigns will not the forty ninth month Base Rent can be bound satisfied by any such actual or attempted assignment or encumbrance. If LICENSEE cures reducing 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestsecurity deposit accordingly.

Security Deposit. If LICENSEE defaults under any of Tenant concurrently with the terms or conditions execution of this 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 Lease shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of Landlord in immediately available funds the Security Deposit. The Security Deposit may be applied by Landlord to cure, in whole or part, any default of Tenant under this Lease, and upon the occurrence notice by Landlord of any event of default by LICENSEEsuch application, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use Tenant shall replenish the Security Deposit in full by paying to Landlord within ten (10) days of demand the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreementso applied. Following any such Landlord’s application of the Security Deposit, LICENSEE agrees Deposit shall not constitute a waiver of Tenant’s default to pay to LICENSOR on demand the amount so applied in order to restore extent that the Security Deposit does not fully compensate Landlord for all losses, damages, costs and expenses incurred by Landlord in connection with such default and shall not prejudice any other rights or remedies available to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default Landlord under this AgreementLease or by Law. If LICENSEE is Landlord shall not in default of this Agreement upon the termination of this Agreement, LICENSOR agrees to return pay 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 interest on the Security Deposit will in no event release LICENSEE from being in default under the terms of this AgreementDeposit. LICENSOR will Landlord shall not be required to keep this the Security Deposit separate from its general fundsaccounts. LICENSEE agrees that The Security Deposit shall not be deemed an advance payment of Rent, nor a measure of damages for any default by Tenant under this Lease, nor shall it will not assign be a bar or encumberdefense of any action which Landlord may at any time commence against Tenant. In the absence of evidence satisfactory to Landlord of an assignment of the right to receive the Security Deposit or the remaining balance thereof, Landlord may return the Security Deposit to the original Tenant, regardless of one or more assignments of this Lease. Upon the transfer of Landlord’s interest under this Lease, Landlord’s obligation to Tenant with respect to the Security Deposit shall terminate upon transfer to the transferee of the Security Deposit, or attempt to assign or encumberany balance thereof and the assumption by the transferee of Landlord’s obligations with respect thereto. If Tenant shall fully and faithfully comply with all the terms, provisions, covenants, and conditions of this Lease, the monies deposited under this Agreement as securitySecurity Deposit, and that LICENSOR and its successors and assigns will not or any balance thereof, shall be bound by any such actual or attempted assignment or encumbrance. If LICENSEE cures the event of default that triggered the obligation returned to put up the $25,000 Security Deposit and is not then in default, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit Tenant within ten thirty (30) days after Landlord recovers possession of the date Premises. Tenant hereby waives any and all rights of LICENSEE's request.Tenant under the provisions of Section 1950.7 of the California Civil Code or other Law regarding security deposits. ARTICLE SIX UTILITIES & SERVICES

Security Deposit. If LICENSEE defaults under any As additional security for the full and prompt performance by Tenant of the terms or conditions all its obligations hereunder, Tenant has upon execution of this Agreement more than two times during any twelve consecutive months during Lease paid to Landlord the term of this Agreement, LICENSEE agrees, that amount set forth in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 Section 1.10 hereof (the "Security Deposit"), which will amount may be held applied by LICENSOR without interest as security Landlord for the full and faithful performance purpose of curing any default by LICENSEE of LICENSEE's covenants and obligations Tenant under this Agreement, it being expressly understood that such deposit is Lease or the Work Letter. Landlord shall be permitted to commingle the Security Deposit with Landlord's general funds. Landlord shall not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults againbe required to pay any interest on the Security Deposit. Following the payment If any portion of the Security Deposit, upon the occurrence of any event of Deposit is applied to cure a default by LICENSEETenant, LICENSOR mayTenant shall, from time to timewithin five (5) days after written demand therefor, without prejudice to any other remedy provided deposit cash with Landlord in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any an amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to LICENSOR on demand the amount so applied in order sufficient to restore the Security Deposit to its original amount amount, and LICENSEETenant's failure to do so within ten days shall be a breach of this Lease. If Tenant has not defaulted hereunder or if Landlord has not applied the full amount of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, LICENSOR agrees to return any remaining balance of such Security Deposit to LICENSEE within thirty days said default, then the Security Deposit, or any portion thereof not so applied by Landlord, shall be paid in cash to Tenant when all Rent payments required under the Lease (including settlement of the date of final Tax Amount and Operating Expense Amount) have been made, Tenant shall have vacated the termination Premises in accordance with the provisions of this AgreementLease and all other outstanding obligations of Tenant under this Lease shall have been satisfied. LICENSORThe Security Deposit is not an advance payment of Rent or an account of Rent, or any part or settlement thereof, or a measure of Landlord's deduction damages. The use or application of any amounts owed by LICENSEE to LICENSOR from the Security Deposit will in no event release LICENSEE or any portion thereof shall not prevent Landlord from being in default exercising any other right or remedy provided hereunder or under the terms of this Agreement. LICENSOR will any Laws and shall not be required construed as liquidated damages. In the event Landlord transfers all or any part of its interest in the Building or this Lease, Landlord shall have the right to keep this transfer the Security Deposit separate to the transferee. Upon such transfer, Landlord shall thereby be released by Tenant from its general funds. LICENSEE agrees that it will not assign all liability or encumber, or attempt to assign or encumber, obligation for 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 $25,000 amount put as a Security Deposit within ten days return of the date of LICENSEE's requestSecurity Deposit.

Security Deposit. If LICENSEE defaults under Within 7 days of signing this Lease and in any event before Tenant takes possession of the terms or conditions of this Agreement more than two times during any twelve consecutive months during the term of this AgreementLeased Premises, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR Tenant will deposit with Landlord a security deposit in an amount equal to $25,000 175 (the "Security Deposit")) to secure Tenant's performance of the terms, conditions, covenants and provisions of this Lease. Tenant shall also pay, at the time of application for residency, a non-refundable administrative fee of $95, which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or shall NOT become a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment part of the Security Deposit, upon . Failure to pay the occurrence administrative fee and/or Security Deposit will not be construed as a release of Tenant's responsibilities and obligations or from the legal and binding nature of this contract. Tenant may not deduct any event portion of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit from Rent or other charges due to Landlord. Landlord shall have the extent necessary right, but not the obligation, to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to LICENSOR on demand the amount so applied in order to restore apply the Security Deposit in whole or in part to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 payment of any amounts owed by LICENSEE to LICENSOR unpaid Rent or other sums due from the Security Deposit will in no event release LICENSEE from being in default Tenant under the terms of this AgreementLease or for damages suffered by Landlord due to non-performance or breach of any term, condition, covenant or provision of this Lease by Tenant or Tenant's guests or invitees, and Tenant shall replace such amounts used within 10 days notice from the Landlord. LICENSOR will Upon expiration or earlier termination of this Lease, and upon surrender of the Leased Premises to Landlord pursuant to the conditions set forth in this Lease, and upon full payment of all sums due Landlord hereunder, the Security Deposit or any portion remaining unapplied (without any interest) shall be returned to Tenant. Tenant is responsible for furnishing Landlord, upon termination of Tenant's occupancy of the Leased Premises, with a forwarding address for all communications regarding the Security Deposit. Landlord's right to repossess the Leased Premises for nonpayment of Rent or for any other breach of this Lease by Tenant shall not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees affected by the fact 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 Landlord holds a Security Deposit and payment of the Security Deposit shall in no way be interpreted to limit Tenant's liability hereunder. Tenant acknowledges and agrees that the Security Deposit and any charges applied against same are joint and several obligations with the other tenants and guarantors in the Dwelling and that Landlord may refund any remaining Security Deposit by a check made payable to Tenant and such other tenants or guarantors in the Dwelling. Each Tenant shall be jointly and severally liable for animal violation charges, missing smoke detector batteries, and damages to the common areas in the Dwelling if we cannot in our sole and exclusive judgment, ascertain the identity of who was at fault. Tenant understands that the Security Deposit is not then separate from, and in defaultaddition to, LICENSOR agrees to refund the $25,000 amount put any applicable pet fee or other fees. Damages, charges and fees due as a result of redecoration, a pet, or otherwise may be deducted from the Security Deposit. The Security Deposit shall be deposited by Landlord in an account used by Landlord for the purpose of depositing its tenants’ Security Deposits. Landlord will deposit Tenant’s Security Deposit in one of its accounts used only for that purpose at . Tenant’s Security Deposit may be retained by the Landlord to the fullest extent allowed by law. Smoking of any kind within ten days the Dwelling will result in an automatic forfeit of the date Security Deposit as well as additional charges to cover cost of LICENSEEsmoke odor removal and other damages. Should Tenant execute a renewal lease or transfer to another Dwelling in the Neighborhood, the Security Deposit will be held until the termination of the final lease term. A walk-through will be performed by a representative of Agent between lease periods or after Tenant has transferred to the new Dwelling. Tenant will be responsible for the immediate payment of any damages at this time. Security Deposit refund checks that have not been deposited by Tenant after 180 days, due to incorrect mailing address, negligence on behalf of the Tenant, or any other reason, will be voided after 180 days. Notwithstanding any other provision of this Lease, in accordance with Tenn. Code Xxx. § 00-00-000, in the event the Tenant leaves not owing rent and having any refund due, the Landlord shall send notification to the last known or reasonable determinable address, of the amount of any refund due the Tenant. In the event the Landlord shall not have received a response from the Tenant within sixty (60) days from the sending of such notification, the Landlord may remove the deposit from the account and retain it free from any claim of the Tenant or any person claiming in the Tenant's requestbehalf.

Security Deposit. Upon execution of this Lease, Tenant agrees to deposit with Landlord a Security Deposit in the amount set forth in Section 2.16. as security for Tenant’s performance of its obligations under this Lease. Landlord and Tenant agree that the Security Deposit may be commingled with funds of Landlord and Landlord shall have no obligation or liability for payment of interest on such deposit. Tenant shall not mortgage, assign, transfer or encumber the Security Deposit without the prior written consent of Landlord and any attempt by Tenant to do so shall be void, without force or effect and shall not be binding upon Landlord. If LICENSEE defaults Tenant fails to timely pay any Rent or other amount due under this Lease, or fails to perform any of the terms or conditions of this Agreement more than two times during any twelve consecutive months during the term of this Agreementhereof, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR Landlord may, from time to time, at its option and without prejudice to any other remedy provided in this Agreement which Landlord may have, appropriate and apply or use all or any portion of the Security Deposit for Rent payments or any other amount then due and unpaid, for payment of any amount for which Landlord has become obligated as a result of Tenant’s default or breach, and for any loss or damage sustained by lawLandlord as a result of Tenant’s default or breach. If Landlord so uses any of the Security Deposit, use Tenant shall, within ten (10) days after written demand therefor, restore the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any full amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreementoriginally deposited. Following any such application of the Security Deposit, LICENSEE agrees to pay to LICENSOR on demand the amount so applied in order to restore the Security Deposit to its original amount and LICENSEE's Tenant’s failure to do so within ten days shall constitute an act of default hereunder and Landlord shall have the right to exercise any remedy provided for in Section 19. hereof. If Tenant defaults under this Lease more than two (2) times during the Lease term, irrespective of whether such default is cured, then, without limiting Landlord’s other rights and remedies, Landlord may, in Landlord’s sole discretion, modify the amount of the date required Security Deposit. Within ten (10) days after Notice of demand will besuch modification, at LICENSOR's electionTenant shall submit to Landlord the required additional sums. Tenant’s failure to do so shall constitute an act of default, a material default under this Agreementand Landlord shall have the right to exercise any remedy provided for in Section 19 . hereof. If LICENSEE Tenant complies with all of the terms and conditions of this Lease, and Tenant is not in default on any of this Agreement its obligations hereunder, then within the time period statutorily prescribed after Tenant vacates the Premises, Landlord shall return to Tenant (or, at Landlord’s option, to the last subtenant or assignee of Tenant’s interest hereunder) the Security Deposit less any expenditures made by Landlord to repair damages to the Premises caused by Tenant and to clean the Premises upon the expiration or earlier termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestLease.

Security Deposit. If LICENSEE defaults under any of the terms On or conditions of this Agreement more than two times during any twelve consecutive months during the term of this Agreementbefore January 1, LICENSEE agrees2021, that in addition to curing such event of default, it Tenant shall pay LICENSOR a security deposit equal to $25,000 ("Landlord the Security Deposit"), which will shall be held by LICENSOR without interest as security for the full and faithful Landlord to secure Tenant's performance by LICENSEE of LICENSEE's covenants and its obligations under this Agreement, it being expressly understood that such deposit Lease. The Security Deposit is not an advance payment of license fees Rent or a measure or limit of LICENSORLandlord's damages if LICENSEE defaults againupon an Event of Default (as defined herein). Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR Landlord may, from time to time, time following an Event of Default and without prejudice to any other remedy provided in this Agreement or by lawremedy, use all or a part of the Security Deposit to the extent necessary perform any obligation Tenant fails to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreementperform hereunder. Following any such application of the Security Deposit, LICENSEE agrees to Tenant shall pay to LICENSOR Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount amount. Subject to the requirements of, and LICENSEE's failure conditions imposed by, Laws applicable to do so security deposits under commercial leases, Landlord shall, within ten days the time required by applicable Law, return to Tenant the portion of the date 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 as a result of demand will beany breach of this Lease by Tenant. The Security Deposit may be commingled with other funds, at LICENSOR's election, a material default under this Agreementand no interest shall be paid thereon. If LICENSEE is not Landlord transfers its interest in default of this Agreement upon the termination of this AgreementPremises, LICENSOR agrees to return any remaining balance of such Landlord shall assign the Security Deposit to LICENSEE within thirty days the transferee and, upon such transfer and the delivery to Tenant of an acknowledgement of the date of the termination of this Agreement. LICENSORtransferee's deduction of any amounts owed by LICENSEE to LICENSOR from responsibility for the Security Deposit will in as provided by this Lease and the Law, Landlord thereafter shall have no event release LICENSEE from being in default under further liability for the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days return of the date of LICENSEE's requestSecurity Deposit.

Security Deposit. If LICENSEE defaults under any of Landlord acknowledges that it has received the terms or conditions Security Deposit from Tenant, simultaneously with the execution of this 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 Lease. The Security Deposit shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance and observance by LICENSEE Tenant of LICENSEEthe covenants, terms and conditions of this Lease, including without limitation, the payment of Rent, on the part of Tenant to be kept and performed. No interest shall be payable on the Security Deposit, and the Security Deposit need not be held in a segregated account and may be commingled with Landlord's covenants separate funds. It is agreed and obligations under this Agreement, it being expressly understood acknowledged by Tenant that such deposit the Security Deposit is not an advance payment of license fees rent or a measure of LICENSORLandlord's damages if LICENSEE defaults againin the case of default by Tenant. Following the payment of the Security Deposit, upon Upon the occurrence of any event of default by LICENSEEunder this Lease, LICENSOR mayLandlord may use, from time to time, without prejudice to apply or retain the whole or any other remedy provided in this Agreement or by law, use part of the Security Deposit to the extent necessary to make good any arrearages required for the payment of payment owed by LICENSEE to LICENSOR all or any amount part or component of Rent or any other sum as to which LICENSEE Tenant is in default or for the payment of any other damage, injury, expense, expenses or liability caused to LICENSOR by such resulting from any event of default. Use, regardless whether such damages application or deficiency accrue before retention of the Security Deposit by Landlord shall not prohibit or after termination limit Landlord's exercise of this Agreementany other remedies Landlord may have for Tenant's default. Following any such application of the Security Deposit, LICENSEE agrees to Tenant shall pay to LICENSOR Landlord on demand the an amount so applied in order necessary to restore the Security Deposit to its original amount amount. In the vent that Tenant shall fully and LICENSEE's failure to do so within ten days faithfully comply with all of the date of demand will beterms, at LICENSOR's electionprovisions, a material default under this Agreement. If LICENSEE is not in default covenants and conditions of this Agreement upon Lease, the termination Security Deposit shall be returned to Tenant within thirty (30) days after the Expiration Date and after delivery of this Agreementpossession of the Premises to Landlord shall be released from all liability for the return of the Security Deposit, LICENSOR agrees and Tenant shall look to return any remaining balance of such the new landlord for its return, so long as the transferring Landlord assigns and transfers the Security Deposit to LICENSEE within thirty days of the date of acquiring landlord or provides the termination of this Agreementacquiring landlord a credit for same. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from the The Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will shall not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign assigned or encumber, or attempt to assign or encumber, the monies deposited under this Agreement as securityencumbered by Tenant, 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestencumbrance shall be void.

Security Deposit. If LICENSEE defaults under any of $16,474.50 payable on the terms or conditions of this 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"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults againEffective Date. Following the payment of the Security Deposit, upon Upon the occurrence of any event Event of default Default (as hereinafter defined) by LICENSEETenant, LICENSOR Landlord may, from time to time, without prejudice to any other remedy provided in this Agreement or by lawremedy, 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 payment owed by LICENSEE to LICENSOR or any amount Rent (as to which LICENSEE is in default or for hereinafter defined) and any other damage, injury, expense, expense or liability caused to LICENSOR Landlord by such event Event of default, regardless whether such damages or deficiency accrue before or after termination of this AgreementDefault for which Tenant is liable hereunder. Following any such application of the Security Depositsecurity deposit, LICENSEE agrees to Tenant shall pay to LICENSOR Landlord on demand the amount so applied in order to restore the Security Deposit security deposit to its original the amount and LICENSEE's failure thereof existing prior to do so within ten days such application. Any remaining balance of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon security deposit shall be returned by Landlord to Tenant within sixty (60) days after the termination of this AgreementLease Agreement and after Tenant provides written notice to Landlord of Tenant’s forwarding address; provided, LICENSOR agrees however, Landlord shall have the right to return any retain and expend such remaining balance of such Security Deposit (a) to LICENSEE within thirty days of 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 date of Leased Premises if Tenant shall fail to deliver same at the termination of this Agreement. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from the Security Deposit will Lease Agreement in no event release LICENSEE from being a neat and clean condition and in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put good a condition as a Security Deposit within ten days of existed at the date of LICENSEE's requestpossession of same by Tenant, ordinary wear and tear only excepted. Tenant shall not be entitled to any interest on the security deposit. Such security deposit shall not be considered an advance payment of rental or a measure of Landlord’s damages in case of an Event of Default by Tenant.

Security Deposit. If LICENSEE defaults under any The Landlord acknowledges receipt of the terms or conditions of this 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 in the amount specified on the Lease Summary to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest the Landlord, as security for the full and faithful performance by LICENSEE the Tenant of LICENSEE's covenants and all of its obligations under this AgreementLease. The Landlord shall be entitled to commingle the security deposit with the Landlord's other funds. If the Tenant defaults in any of its obligations under this Lease, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security DepositLandlord may at its option, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, but without prejudice to any other remedy provided in this Agreement rights which the Landlord may have, apply all or part of the security deposit to compensate the Landlord for any loss, damage, or expense sustained by law, use the Security Deposit to the extent necessary to make good any arrearages Landlord as a result of payment owed by LICENSEE to LICENSOR such default. If all or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application part of the Security Depositsecurity deposit is so applied, LICENSEE agrees to pay to LICENSOR on demand the amount so applied in order to Tenant shall restore the Security Deposit security deposit to its original amount and LICENSEE's failure to do so within ten days on demand of the date Landlord. Subject to the provisions of demand will beSection 2.3, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the within thirty (30) days following termination of this AgreementLease, LICENSOR agrees if the Tenant is not then in default, the security deposit, or applicable portion thereof, will be returned by the Landlord to return any remaining balance of such Security Deposit to LICENSEE within thirty days the Tenant, together with interest thereon calculated on the basis of the date passbook rate of interest of Barnxxx Xxxxx xx South Florida, N.A. (or such other bank as Landlord may select) during the Term of the termination Lease (as such rate may change from time to time during the Term of the Lease). If the Landlord transfers or assigns the Landlord's interest under this AgreementLease, the Landlord shall transfer the security deposit to the transferee or assignee. LICENSOR's deduction Landlord shall also cause the new landlord to acknowledge receipt of any amounts owed the deposit at the time of transfer. Upon such transfer, the Landlord shall be released by LICENSEE the Tenant from all liability for the return of the security deposit, and the Tenant shall look solely to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under new landlord for the terms return of this Agreementthe security deposit. LICENSOR will The preceding sentence shall apply to every transfer or assignment of the security deposit to a new landlord. The Tenant shall not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign transfer, assign, or encumber, or attempt to assign transfer, assign, or encumber, encumber the monies moneys deposited under this Agreement as security, security and that LICENSOR and its successors and assigns will the Landlord shall not be bound by any such actual or attempted assignment transfer, 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's request.

Security Deposit. If LICENSEE defaults Tenant has deposited One Hundred Fifty-two Thousand Two Hundred Fifty and 00/100 dollars ($152,250.00) with Landlord as security for Tenant's payment of rent and performance of its other obligations under this lease, and any renewals or extensions of this Lease. The amount of the terms security deposit represents six months rent at the Base Rent for the first lease year. In each subsequent lease year Tenant shall add to the security deposit so that the then current security deposit equals six months rent at the then current Base Rent. If Tenant defaults in its payment of rent or conditions performance of its other obligations under this Agreement more than two times during Lease, Landlord may use all or part of the security deposit for the payment of rent or any twelve consecutive months during the term of this Agreement, LICENSEE agrees, that other amount in addition to curing such event of default, it shall pay LICENSOR or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of Tenant's default, or for the payment to Landlord of any other loss or damage which Landlord may suffer by reason of Tenant's default. If Landlord so uses any portion of the security deposit, Tenant will restore the security deposit to the required amount within five (5) days after written demand from Landlord so that Landlord shall, at all times, have a security deposit equal to $25,000 six ("Security Deposit"), which will be held by LICENSOR without interest as security for 6) months rent at the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults againBase Rent. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to 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 date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR Landlord will not be required to keep this Security Deposit the 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 Tenant will not be bound by any such actual entitled to interest on the security deposit. The security deposit will not be a limitation on Landlord's damages or attempted assignment other rights under this lease, or encumbrancea payment of liquidated damages, or an advance payment of the rent. If LICENSEE cures Tenant pays the event rent and performs all of default its other obligations under this Lease, Landlord will return the unused portion of the security deposit to Tenant within sixty (60) days after the end of the term; however, if Landlord has evidence that triggered the obligation security deposit has been assigned to put up an assignee of the Lease, Landlord will return the security deposit to the assignee. Landlord may deliver the security deposit to the purchaser of the premises and be discharged from further liability with respect to it. At Tenant's election, in lieu of a cash security deposit as described above, Tenant, simultaneously with the execution of this Lease, shall deliver to Landlord an irrevocable standby letter of credit (the "Letter of Credit") in such form and content satisfactory to Landlord. The Letter of Credit shall be in the initial sum of $25,000 Security Deposit 194,750.00 and is issued by a commercial bank or trust company satisfactory to Landlord. The Letter of Credit shall expire not then in default, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit within ten days of earlier than twelve (12) months after the date of LICENSEEdelivery thereof to Landlord, and shall provide that same shall be automatically renewed for successive twelve (12) month periods through a date which is not earlier than thirty (30) days after the expiration of this Lease, or any renewal or extension thereof, unless notice of non-renewal has been given by the issuing bank to Landlord and Landlord's requestattorney by registered or certified mail, return receipt requested, not less than thirty (30) days prior to the expiration of the current period. If the issuing bank does not renew the Letter of Credit, and if Tenant does not deliver a substitute Letter of Credit at least thirty (30) days prior to the expiration of the current period, then, in addition to its rights granted under this provision, the Landlord shall have the right to draw upon the existing Letter of Credit, in which case the funds received by Landlord shall be considered the security deposit as provided above. At the time of renewal of the Letter of Credit, the amount of the Letter of Credit shall be increased in accordance with the increase in rent for that period, as set forth above.

Security Deposit. If LICENSEE defaults under any Tenant shall deposit with Landlord the sum of $ 500 to be paid upon lease execution for the terms or conditions faithful performance of this Agreement more than two times during any twelve consecutive months during Xxxxxx's promises and duties contained herein (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"). If Tenant provides no Guarantor, which will then the Security Deposit shall be held by LICENSOR without set at $1,000. Landlord shall not be required to pay any interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of to Tenant upon the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use . Landlord shall deposit the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreementwith M&T bank. Following any such application of the Security Deposit, LICENSEE agrees to pay to 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 date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 Landlord may deduct from the Security Deposit will amounts sufficient to pay (1) any damages sustained by Landlord as a result of Xxxxxx's nonpayment of rent or non fulfillment of the term of this Lease Agreement; (2) any damages to the Premises for which Tenant is responsible; (3) any unpaid bills which become a lien against the Premises due to Tenant's occupancy; (4) any costs of re-renting the Premises after a breach of this Agreement by Tenant; (5) any court costs incurred by Landlord in no event release LICENSEE from being in default connection with terminating the tenancy; and (6) any other damages of Landlord which may then be a permitted use of the Security Deposit under the terms laws of this AgreementState. LICENSOR will not be required to keep this If Landlord uses or applies any of the Security Deposit separate from during the Term, Tenant shall immediately replenish it to its general fundsoriginally required amount. LICENSEE agrees that it will not assign or encumberAfter having deducted the above amount, or attempt Landlord shall, if Xxxxxx's address is known to assign or encumberhim, refund to Tenant, within thirty (30) days after the termination of the tenancy and delivery of possession, the monies deposited under this Agreement as security, balance of the Security Deposit along with an itemized statement of any deductions. Landlord shall have no obligation to track Xxxxxx’s post occupancy address and that LICENSOR and its successors and assigns will not it shall be bound the responsibility of the Tenant to provide a valid new address for the Tenant. No security deposit can be returned to Tenant without a valid forwarding address provided by any such actual or attempted assignment or encumbranceXxxxxx. If LICENSEE cures Tenant fails to provide a valid forwarding address within six (6) months of the event Tenant vacating the apartment, the Landlord will surrender the security deposit to the NYS Comptroller pursuant to the New York State Abandoned Property Law and, upon surrender, Landlord shall not thereafter be liable to Tenant for a refund 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 $25,000 amount put as a or any part thereof. The Security Deposit within ten days of shall be payable to Landlord via Check or Money Order and shall be remitted to the date of LICENSEE's requestaddress provided above or such other address as Landlord may provide in writing to Tenant. There will be a $25.00 service charge on all returned checks. Landlord shall also accept Security Deposit payments via ACH. There will be a $30 charge for all ACH transactions.

Security Deposit. Tenant agrees to deposit with Landlord the Security Deposit set forth in Section 2.15. upon execution of this Lease as security for Tenant's faithful performance of its obligations under this Lease. Landlord and Tenant agree that the Security Deposit may be commingled with funds of Landlord and Landlord shall have no obligation or liability for payment of interest on such deposit. Tenant shall not mortgage, assign, transfer or encumber the Security Deposit without the prior written consent of Landlord and any attempt by Tenant to do so shall be void, without force or effect and shall not be binding upon the Landlord. If LICENSEE defaults Tenant fails to pay any Rent or other amount when due and payable under this Lease, or fails to perform any of the terms or conditions of this Agreement more than two times during any twelve consecutive months during the term of this Agreementhereof, LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR Landlord may, from time to time, at its option and without prejudice to any other remedy provided in this Agreement which Landlord may have on account thereof, appropriate and apply or use all or any portion of the Security Deposit for Rent payments or any other amount then due and unpaid, for payment of any amount for which Landlord has become obligated as a result of Tenant's default or breach, and for any loss or damage sustained by lawLandlord as a result of Tenant's default or breach. If Landlord so uses any of the Security Deposit, use Tenant shall, within ten (10) days after written demand therefor, restore the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any full amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreementoriginally deposited. Following any such application of the Security Deposit, LICENSEE agrees to pay to LICENSOR on demand the amount so applied in order to restore the Security Deposit to its original amount and LICENSEETenant's failure to do so within ten days shall constitute an act of default hereunder and Landlord shall have the right to exercise any remedy provided for at Section 19. hereof. If Tenant complies with all of the date terms and conditions of demand will bethis Lease, at LICENSOR's election, a material default under this Agreement. If LICENSEE and Tenant is not in default on any of this Agreement its obligations hereunder, then within the time period statutorily prescribed after Tenant vacates the Premises, Landlord shall return to Tenant (or, at Landlord's option, to the last subtenant or assignee of Tenant's interest hereunder) the Security Deposit less any expenditures made by Landlord to repair damages to the Premises caused by Tenant and to clean the Premises upon the expiration or earlier termination of this AgreementLease. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, LICENSOR agrees to return any remaining balance of such Security Deposit shall be deemed to LICENSEE within thirty days be applied first to the payment of Rent and other sums due Landlord for all periods prior to the date filing of the termination of this Agreement. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestproceedings.

Security Deposit. If LICENSEE defaults under any of Tenant shall deposit with Landlord upon Tenant's execution hereof the terms or conditions of this Agreement more than two times during any twelve consecutive months during the term of this Agreement, LICENSEE agrees, that Security Deposit set forth in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest Paragraph 1.7 as security for the full and Tenant's faithful performance by LICENSEE of LICENSEE's covenants and Tenants obligations under this AgreementLease. If Tenant fails to pay Base Rent or Additional Rent or otherwise defaults under this Lease (as defined in Paragraph 13.1), it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, Landlord may use the Security Deposit to for the extent necessary to make good any arrearages payment of payment owed by LICENSEE to LICENSOR or any amount as due Landlord or to which LICENSEE is in default reimburse or compensate Landlord for any other damageliability, injurycost, expense, loss or liability caused to LICENSOR damage (including attorney's fees) which Landlord may suffer or incur by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreementreason thereof. Following any such application of the Security Deposit, LICENSEE agrees to pay to LICENSOR Tenant shall on demand pay Landlord the amount so used or applied in order so as to restore the Security Deposit to its original the amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreementset forth in Paragraph 1.7. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will Landlord shall not be required to keep this all or any part of the Security Deposit separate from its general fundsaccounts during the Term of the Lease. LICENSEE agrees Notwithstanding the foregoing, Landlord, prior to the Commencement Date of this Lease, shall place the Security Deposit in an interest-bearing account for the period beginning with the full execution of this Lease and terminating on the Commencement Date of this Lease. Upon Lease Commencement, the accrued interest shall be remitted to Tenant upon Landlord's receipt of Tenant's written notice that it will the interest payment is due. Upon the Commencement Date of this Lease, the Security Deposit shall cease to earn interest and Landlord shall have no further obligation to keep the Security Deposit in an interest-bearing account. Landlord shall, at the expiration or earlier termination of the term hereof and after Tenant has vacated the Premises, return to Tenant that portion of the Security Deposit not assign used or encumberapplied by Landlord. No part of the Security Deposit shall be considered to be held in trust, to bear interest, or attempt to assign or encumber, the be prepayment for any monies deposited to be paid by Tenant 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestLease.

Security Deposit. If LICENSEE defaults under any of the terms or conditions of this Agreement more than two times during any twelve consecutive months during the term of this Agreement, LICENSEE agrees, that in addition Tenant hereby agrees to curing such event of default, it shall pay LICENSOR to Landlord a security deposit equal to of nine thousand four hundred fifty-three dollars and no cents ($25,000 ("Security Deposit"9,453.00), which will be held is equal to first month’s Base Rental, on the day this Lease is executed by LICENSOR without interest as security for Tenant (the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the “Security Deposit, upon ”). Upon the occurrence of any event Event of default Default by LICENSEETenant, LICENSOR Landlord may, from time to time, without prejudice to any other remedy provided in this Agreement or by lawremedy, use the Security Deposit to the extent necessary to make good any arrearages arrears of payment owed by LICENSEE to LICENSOR Base Rental or Additional Rental or any amount as to which LICENSEE is in default or for other payment obligation hereunder, including, but not limited to, the cost of any other damage, injury, expense, or liability caused by any Event of Default by Tenant hereunder. Any remaining balance of the Security Deposit shall be returned by Landlord to LICENSOR 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 interest on the Security Deposit, and Landlord may commingle the same with other monies of Landlord. 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 transfer and acknowledgement of receipt of Security Deposit by such event transferee, Landlord shall be relieved of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application all liability to Tenant for the return of the Security Deposit, LICENSEE agrees and Tenant shall look solely to pay to LICENSOR on demand the amount so applied in order to restore new owner or lessor for the return of the Security Deposit to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestDeposit.

Security Deposit. If LICENSEE defaults under any of The Security Deposit shall be delivered to Landlord upon the terms or conditions execution of this 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 Lease by Xxxxxx and shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR Landlord without liability for interest (unless required by applicable Law) as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit Tenant’s obligations. The Security Deposit is not an advance payment of license fees Rent or a measure of LICENSOR's damages if LICENSEE defaults againTenant’s liability for damages. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR Landlord may, from time to time, without prejudice to any other remedy provided in this Agreement or by lawremedy, use all or a portion of the Security Deposit to the extent necessary satisfy past due Rent or to make good cure any arrearages Event of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this AgreementDefault. Following any such After each application of from the Security Deposit, LICENSEE agrees to pay to LICENSOR Tenant shall 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 amount. Landlord shall return any unapplied portion of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, LICENSOR agrees to return any remaining balance of such Security Deposit to LICENSEE Tenant within thirty forty-five (45) days after the latest to occur of: (a) the prompt determination of Tenant’s Share of any Tax Excess and Tenant’s Share of any Expense Excess for the final year of the Lease Term; (b) the date Tenant surrenders possession of the termination Premises to Landlord in accordance with this Lease; or (c) the Lease Expiration Date. The covenants in this Section 21 are personal covenants between Landlord and Tenant and not covenants running with the land. In no event will any Mortgagee or any purchaser at a foreclosure sale or sale in lieu of this Agreementforeclosure be liable to Tenant for the return of the Security Deposit. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from If Landlord transfers its interest in the Premises, Landlord may assign the Security Deposit will in to the transferee and, following the assignment, Landlord shall have no event release LICENSEE from being in default under further liability for the terms return of this Agreementthe Security Deposit and Tenant shall look solely to be new landlord for the return of the Security Deposit. LICENSOR will Landlord shall not be required to keep this the Security Deposit separate from its general fundsother accounts. LICENSEE agrees Subject to the remaining terms of this Article 21, and provided Xxxxxx has timely paid all Rent due under this Lease during the first twenty-four (24) full months of the Lease Term, then as of the first day of the twenty-fifth (25th) full month of the Lease Term (the “Reduction Date”), Tenant shall have the right to reduce the amount of the Security Deposit so that it will not assign or encumberthe new Security Deposit shall equal Sixty Thousand Five Hundred Fifty-Eight and 96/100 Dollars ($60,558.96). Notwithstanding anything to the contrary contained herein, if an Event of Default has occurred at any time prior to the Reduction Date, then Tenant shall have no right to reduce the amount of the Security Deposit as described herein. If Tenant is entitled to a reduction in the Security Deposit, Tenant shall provide Landlord with written notice requesting that the Security Deposit be reduced as provided above (the “Reduction Notice”). If Tenant provides Landlord with a Reduction Notice, and Tenant is entitled to reduce the Security Deposit as provided herein, Landlord shall refund the applicable portion of the Security Deposit to Tenant within 45 days after the later to occur of (a) Landlord’s receipt of the Reduction Notice, or attempt to assign or encumber, (b) 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestReduction Date.

Security Deposit. If LICENSEE defaults under any Upon execution of this Lease, Tenant shall deposit with Landlord the Security Deposit in the amount of $360,000.00 specified in Item 11 of the terms or Basic Lease Provisions for the performance by Tenant of all terms, covenants and conditions of this 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"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this AgreementLease, it being expressly understood and agreed that such deposit is not an advance payment of license fees rental deposit or a measure of LICENSOR's Landlord’s damages if LICENSEE in case of Tenant’s default. If Tenant defaults again. Following with respect to any provision of this Lease, including, but not limited to, the provisions relating to the payment of rent or the Security Depositobligation to repair and maintain the Premises or to perform any other term, upon the occurrence of any event of default by LICENSEEcovenant or condition contained herein, LICENSOR may, from time to timeLandlord may (but shall not be required to), without prejudice to any other remedy provided in this Agreement herein or provided by lawlaw and without notice to Tenant, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR Deposit, or any amount portion of it, to cure the default or to compensate Landlord for all damages sustained by Landlord resulting from Tenant’s default. Tenant shall immediately on demand restore and replenish the portion of the Security Deposit expended or applied by Landlord as provided in this Section so as to which LICENSEE maintain the Security Deposit in the sum initially deposited with Landlord. Although the Security Deposit shall be deemed the property of Landlord, if Tenant is not in default at the expiration or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this AgreementLease, Landlord shall return the Security Deposit to Tenant within sixty (60) days thereafter. Following In the event Landlord withholds any such application funds from the Security Deposit, Landlord shall within said sixty (60) day period provide Tenant with written notice thereof, identifying the specific reasons for the withholding of any portion of the Security Deposit, LICENSEE agrees to pay to LICENSOR on demand together with 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 date of demand will be, at LICENSOR's election, a material default under this Agreementspecific dollar amounts related thereto. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will Landlord shall not be required to keep this the Security Deposit separate from its general fundsfunds and Tenant shall not be entitled to interest on any such deposit. LICENSEE agrees that it will not assign Upon any sale or encumbertransfer of its interest in the Building, or attempt Landlord may transfer the Security Deposit to assign or encumber, the monies deposited under this Agreement as securityits successor-in-interest, and thereupon, Landlord shall be released from any liability or obligation with respect thereto. It is expressly understood that LICENSOR the Security Deposit may only be applied to address Tenant’s defaults hereunder, and its successors and assigns will may not be bound by applied for any such actual deferred maintenance or attempted assignment or encumbrance. If LICENSEE cures other matters with respect to 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 $25,000 amount put as a Security Deposit within ten days condition of the date Premises which are not the result of LICENSEE's requesta Tenant default during the term of this Lease.

Security Deposit. If LICENSEE defaults under any of the terms or conditions of this 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 ("Holding/Security Deposit"): Resident shall supply Security Deposit of one month’s rent. If upon the applying for the lease, which Resident deposited with Landlord a Holding Deposit of one month’s rent, the Holding Deposit shall become the Security Deposit. The Holding Deposit will secure the unit until all Residents have signed and returned (and co-signed by co-signer when applicable) all lease documents. The Security Deposit shall be held by LICENSOR without interest as security for used to secure the full and faithful performance by LICENSEE Resident of LICENSEE's covenants each and obligations under every term, provision, covenant and condition of this Agreementlease and the duties of Resident required by law, it being expressly understood that such deposit is not an advance payment including Resident’s duty to leave the premises clean (carpet cleaned, otherwise in “broom clean” condition, no holes or damage to walls other than small nail holes for picture-hanging). At the termination of license fees this lease for whatever cause, Landlord may use, apply or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment retain all or any portion of the Security Deposit, upon the occurrence Deposit to pay for any unpaid or unfulfilled obligation of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in Resident arising under this Agreement lease or by law. The Security Deposit may be applied at Landlord’s sole option, use as partial damages for Resident's premature termination of the lease including by vacating and failing to pay rent obligations. In addition, Landlord may recover any damages suffered in excess of the unused Security Deposit. Any portion not so used, applied or retained shall be refunded to Resident in accordance with applicable law after termination of the tenancy and delivery of possession of the premises to Landlord with interest, if any, required by law. Landlord will send an itemized list of deductions to the designated resident (designated by Residents) with the remainder of funds. It is the responsibility of the Residents to disburse the funds accordingly. Resident shall not utilize the Security Deposit as rent, deduct the same from the last month's rent, or require Landlord to indemnify itself by resort to the Security Deposit with respect to any violation or default by Resident. If during the lease term, Xxxxxxxx uses any part of the Security Deposit to pay obligations of Resident under this lease or applicable law, Resident shall upon demand immediately deposit with Landlord a sum equal to the amount so applied by Landlord so Landlord shall have the full Security Deposit on hand at all times during the lease term including any extension, renewal or holdover term. If Landlord sells, transfers or assigns its interest in the premises, Landlord shall transfer the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damagebuyer, injury, expensetransferee, or assignee who accepts liability caused to LICENSOR by such event of defaulttherefore, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application Resident hereby releases Landlord from all liability for the return of the Security Deposit, LICENSEE agrees Deposit transferred. Security Deposit cannot be used for last month’s rent. Xxxxxxxx will account for and return unused Security Deposit as provided by RC 5321.16. All disputes relating to pay to LICENSOR on demand the amount so applied in order to restore the Security Deposit shall be submitted to its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to 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 $25,000 amount put mandatory mediation as a Security Deposit within ten days condition precedent to litigation. The mediation service shall be Capital Mediation Associates, 000 Xxxxx Xxxxx Xxxxx, Xxxxx 000 Xxxxxx, Xxxx 00000, unless the parties otherwise agree. The cost of mediation shall be borne equally by the date parties and any required deposit shall be made by both parties before commencement of LICENSEE's request.mediation. This lease is secured by a deposit of <<Monthly Rent>>

Security Deposit. If LICENSEE defaults under any of the terms or conditions Tenant shall deposit concurrently with Tenant’s execution of this Agreement more than two times during any twelve consecutive months during Lease, with Landlord the term of this Agreement, LICENSEE agrees, that amount set forth in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Article 1 as the Security Deposit"), which will be held by LICENSOR without interest Deposit as security for the full and faithful performance by LICENSEE Tenant of LICENSEE's covenants the terms of this Lease to be performed by Tenant, and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment as prepayment of license fees or rent. Tenant hereby grants to Landlord a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of security interest in the Security Deposit, upon the occurrence including, but not limited to, replenishments thereof. Landlord may apply such portion or portions of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit 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 late charge or interest on defaulted rent, or any other monetary payment obligation of Tenant under this Lease; (ii) to repair damage to the extent necessary Leased Premises, the Building or the Common Areas caused or permitted to make good occur by Tenant; (iii) to clean and restore and repair the Leased Premises, the Building or the Common Areas following their surrender to Landlord if not surrendered in the condition required pursuant to the provisions of Article 2, (iv) to remedy any arrearages other default of payment owed Tenant including, without limitation, paying in full on Tenant’s behalf any sums claimed by LICENSEE materialmen or contractors of Tenant to LICENSOR be owing to them by Tenant for work done or improvements made at Tenant’s request to the Leased Premises, and (v) to cover any other expense, loss or damage which Landlord may at any time suffer due to Tenant’s default. In this regard, Tenant hereby waives any restriction on the uses to which the Security Deposit 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 Deposit or any amount as to which LICENSEE portion thereof is in default or for any other damageso used, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to Tenant shall pay to LICENSOR on demand the Landlord, promptly upon demand, an amount so applied in order cash sufficient to restore the Security Deposit to its the full original amount and LICENSEE's failure to do so within ten days sum. Landlord shall not be deemed a trustee of the date of demand will be, at LICENSOR's election, a material default under this AgreementSecurity Deposit. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, 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 Landlord may use the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will Landlord’s ordinary business and shall not be required to keep this segregate it from Landlord’s general accounts. Tenant shall not be entitled to any interest on the Security Deposit. If Landlord transfers the Building or the Property during the Lease Term, Landlord may pay the Security Deposit separate to any subsequent owner in conformity with the provisions of Section 1950.7 of the California Civil Code and/or any successor statute, in which event the transferring landlord shall be released from its general fundsall liability for the return of the Security Deposit. LICENSEE agrees that it will not assign or encumberTenant specifically grants to Landlord (and Tenant hereby waives the provisions of California Civil Code Section 1950.7 to the contrary) a period of sixty (60) days following a surrender of the Leased Premises by Tenant to Landlord within which to inspect the Leased Premises, or attempt to assign or encumbermake required restorations and repairs, the monies deposited under this Agreement as securityreceive and verify workmen’s xxxxxxxx therefor, cure any other defaults, deduct any damages, and that LICENSOR and its successors and assigns will not be bound by any such actual or attempted assignment or encumbranceprepare a final accounting with respect to the Security Deposit. If LICENSEE cures In no event shall the event of default that triggered the obligation to put up the $25,000 Security Deposit and is not then in defaultor any portion thereof, LICENSOR agrees to refund the $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestbe considered prepaid rent.

Security Deposit. If LICENSEE defaults under any Upon the execution of this Lease by Tenant, Tenant shall deposit with Landlord the sum of ONE THOUSAND FIVE HUNDRED ($1,500.00) DOLLARS, to guarantee the return of the terms or conditions of this Agreement more than two times during any twelve consecutive months during the term of this Agreement, LICENSEE agrees, that in addition demised premises to curing such event of default, it shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit"), which will be held by LICENSOR without interest as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and obligations under this Agreement, it being expressly understood that such deposit is not an advance payment of license fees or a measure of LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any other remedy provided in this Agreement or by law, use the Security Deposit to the extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, LICENSEE agrees to pay to 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 date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement Landlord upon the termination of this AgreementLease in as good condition as when received by Tenant, LICENSOR agrees reasonable wear and tear and damage by fire or other casualty excepted, and to return any remaining balance of such Security Deposit to LICENSEE within thirty days indemnify Landlord against loss or damage caused by Tenant's occupancy of the date of demised premises and any other indebtedness due from Tenant. In the event Landlord applies the Security Deposit, in whole or in part, against any obliga- tions due from Tenant to Landlord, Tenant shall, upon demand by landlord, deposit sufficient funds with Landlord to maintain the Security deposit in the initial mount. At the termination of this Agreement. LICENSOR's deduction of Lease or any amounts owed by LICENSEE to LICENSOR from renewal thereof, the Security Deposit will be returned to Tenant, without interest, within thirty (30) days following the vacation of the demised premises, or within thirty (30) days after Tenant provides Landlord with his new address in no event release LICENSEE from being in default writing, whichever comes later, after deducting any amount needed to cover damages to the demised premises, replacement of keys, unpaid obligations to Landlord, cleaning and restoring the demised premises and any other amount due Landlord. It is understood that the Security Deposit is not to be considered as payment toward any rental installment due under the terms of this Agreement. LICENSOR will Lease and it shall not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign or encumber, or attempt to assign or encumber, so applied without 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 written approval 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestLandlord.

Security Deposit. If LICENSEE defaults under any of Concurrently with the terms or conditions execution of this Agreement more than two times during any twelve consecutive months during the term of this AgreementLease by Tenant, LICENSEE agrees, that in addition to curing such event of default, it Tenant shall pay LICENSOR a security deposit equal to $25,000 ("Security Deposit")Landlord the Estimated Deposit Amount, which will shall be held by LICENSOR without interest as a Security Deposit as security for the full and faithful performance by LICENSEE of LICENSEE's covenants and Tenant’s obligations under this AgreementLease. Upon determination of the Rentable Area of the Premises pursuant to Section 1.18 above, it being expressly understood that such deposit is not an advance payment Tenant shall pay Landlord or Landlord shall refund to Tenant, as applicable, the difference between the Estimated Deposit Amount and the amount of license fees or a measure of LICENSOR's damages if LICENSEE defaults againthe Security Deposit established pursuant to Section 1.18. Following If at any time during the Term, Tenant shall be in default beyond any applicable notice and cure period in the payment of the Security Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to Rent or for any other remedy provided in this Agreement reason, Landlord may use, apply or by law, use retain all or part of the Security Deposit to the extent necessary for payment of any amount due Landlord or to make good cure such default or to reimburse or compensate Landlord for any arrearages liability, loss, cost, expense or damage (including attorneys’ fees) which Landlord may suffer or incur by reason of payment owed by LICENSEE to LICENSOR Tenant’s defaults. If Landlord uses or applies all or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application part of the Security Deposit, LICENSEE agrees to Tenant shall, within ten (10) days of demand therefor, pay to LICENSOR on demand the amount so applied in order Landlord a sum sufficient to restore the Security Deposit to its original the full amount and LICENSEE's failure to do so within ten days required by this Lease. Upon expiration of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the Term or earlier termination of this AgreementLease and after Tenant has vacated the Premises, LICENSOR agrees to Landlord shall return any remaining balance of such the Security Deposit to LICENSEE within thirty days Tenant, reduced by such amounts as may be required by Landlord to remedy defaults on the part of Tenant in the date payment of Rent, to repair damages to the termination Premises caused by Tenant and to clean the Premises. The portion of this Agreement. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from the Security Deposit will not so required shall be paid over to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in no event release LICENSEE from being in default under this Lease) within thirty (30) days after expiration of the terms of this AgreementTerm or earlier termination hereof. LICENSOR will not be required to keep this Landlord shall hold the Security Deposit separate for the foregoing purposes; provided, however, that Landlord shall have no obligation to segregate the Security Deposit from its general fundsfunds or to pay interest in respect thereof. LICENSEE agrees that it will not assign or encumberNo part of the Security Deposit shall be considered to be held in trust, or attempt to assign or encumber, the be prepayment of any monies deposited to be paid by Tenant 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 $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's requestLease.