Common use of Security Deposit Clause in Contracts

Security Deposit. Upon execution of this Lease, Tenant shall pay to Landlord the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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).

Security Deposit. Upon execution The parties have agreed that [*] ---------------- Security Deposit will be required of Tenant at the outset of this Lease. However, if Tenant is late in paying monthly rentals in two (2) consecutive months, or if Tenant is late paying monthly rentals three (3) or more times in a twelve (12) month period, then Landlord reserves the right at such time to demand (in writing) that a Security Deposit in the amount of [*] the average monthly rental payments be deposited with Landlord and retained for the remainder of the Lease Term. Tenant hereby grants to Landlord a security interest in the Security Deposit. Landlord shall have, and Landlord expressly retains and reserves, all rights of setoff, recoupment, and similar remedies available to Landlord under applicable laws or in equity. Landlord may commingle the Security Deposit with its other funds and shall receive and hold the Security Deposit without liability for interest. Upon default by Tenant, Landlord may from time to time, and without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrears of Rent or other sums then due from Tenant to Landlord or to pay the cost of any damage, injury, expense, or liability caused by any default by Tenant under this Lease. After any such application of any portion of the Security Deposit, Tenant shall pay to Landlord Landlord, immediately upon demand, the amount so applied so as to restore the Security Deposit specified in Paragraph 2.dto its original amount; and such amount shall then be deemed to be part of the Security Deposit. above as security for Tenant’s performance of all of Tenant’s covenants and obligations 's failure to restore the Security Deposit may, at Landlord's sole option, constitute a default under this Lease; provided, however, that the Security Deposit . If Tenant is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies in default under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount after application of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure repair of any damage or injury to make such payment the Project caused by Tenant or by any Tenant Related Party, any remaining balance of the Security Deposit held by Landlord shall be returned by Landlord to Landlord Tenant within five (5) days a reasonable period of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days time after the expiration or termination of this Lease, Landlord shall return to Tenant the . The Security Deposit shall not be considered an advance payment of rental or the balance thereof then held by Landlord after application a measure of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Landlord for Landlord's damages resulting from termination of this Lease and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)a default by Tenant.

Security Deposit. Upon Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the Security Deposit specified in Paragraph 2.d. above as security for Deposit, which shall be held by Landlord to secure Tenant’s performance of all of Tenant’s covenants and its obligations under this Lease; provided, however, that the . The Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor Rent or a measure or limit of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use part of the Security Deposit shall not constitute a bar or defense to perform any of Landlord’s remedies under this Lease or at lawobligation Tenant fails to perform hereunder. In Following any such event and upon written notice from Landlord to Tenant specifying the amount application of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was appliedDeposit, Tenant shall immediately deposit with pay to Landlord an on demand the amount sufficient so applied in order to return restore the Security Deposit to the amount specified in Paragraph 2.dits original amount. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord Provided that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale Landlord shall, within 60 days after the expiration of the Real Property or any portion thereofTerm and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, shall be responsible return to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part portion of the Security Deposit which was not applied to compensate satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord for damages resulting from termination may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the tenancy created hereunder (includingtransferee assumes Landlord’s obligations under this Lease, without limitation, damages recoverable then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under California Civil Code this Section 1951.2)6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Deposit.

Security Deposit. Upon Tenant shall pay to Port upon execution of this Lease, in addition to the advance payment of the first month's Base Rent, the Security Deposit, in cash, in the sum specified in the Basic Lease Information, as security for the faithful performance by Tenant of all terms, covenants and conditions of this Lease. If Base Rent is increased beyond the amount set forth in the Basic Lease Information for the last year of the Term, then from and after such increase, Tenant shall pay to Landlord increase the amount of the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s performance to maintain the same ratio of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s defaultto Base Rent as existed on the date immediately prior to such Base Rent increase. Landlord shall not be required to segregate Any increase in the Security Deposit from its other funds and no interest shall accrue or be payable delivered to Port on the same date that such increase in Base Rent is first due. Tenant with respect thereto. Landlord agrees that Port may (but shall not be required to) use apply the Security Deposit in whole or in part to (a) pay any portion thereof sum due to Port under this Lease; (b) compensate Port for any expense incurred or damage caused by Tenant, its Agents or Invitees; (c) cure any Event default by Tenant; or (d) cure, or attempt to cure, any failure of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure Tenant to perform any of its covenants other covenant, term or obligations hereunder, it being understood that any use condition contained herein. Tenant shall immediately upon demand pay Port a sum equal to the portion of the Security Deposit expended or applied by Port. Port shall not constitute a bar or defense be required to keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to any interest on the Security Deposit. Nothing contained in this Section shall in any way diminish or be construed as waiving any of Landlord’s Port's other remedies under set forth in this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized provided by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration law or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the sameequity. Tenant hereby unconditionally and irrevocably waives the benefits and protections provisions of California Civil Code Section 1950.71950.7 and/or any successor statute, and, without limitation of the scope of such waiver, acknowledges it being expressly agreed that Landlord Port may use apply all or any part portion of the Security Deposit in payment of any and all sums reasonably necessary to compensate Landlord Port for damages resulting from any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any Agent or Invitee of Tenant, and that following a default by Tenant, all or any portion of the Security Deposit may be retained by Port following a termination of this Lease and applied to future damages, including damages for future Rent, pending determination of the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)same.

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

Security Deposit. Upon The Security Deposit shall be due and payable to Landlord within ten (10) business days after the execution of this LeaseLease (but in no event later than the commencement of any Early Occupancy), Tenant and shall pay to be held by Landlord the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s the performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the obligations. The Security Deposit is not an advance rent deposit rental deposit, or an advance payment of any other kind, nor a measure of Landlord’s damages upon in an Event of Default (as hereinafter defined). Upon any Event of Default, Landlord may use all, or part of, the Security Deposit to pay delinquent payments due under this Lease, and the cost of any damage, injury, expense or liability caused by such Event of Default, without prejudice to any other remedy provided herein or provided by law. Tenant shall pay Landlord within ten (10) business days of Landlord’s demand the amount that will restore the Security Deposit to its original amount. ▇▇▇▇▇▇▇▇’s obligation respecting the Security Deposit is that of a debtor, not a trustee. The Security Deposit shall be the property of Landlord, and any remaining amount of the Security Deposit shall be paid to Tenant when Tenant’s defaultobligations under this Lease have been fulfilled. Landlord shall not be required to segregate keep the Security Deposit separate from its other funds general accounts, and no interest shall accrue or thereon. Landlord shall be payable to Tenant released from any obligation with respect thereto. Landlord may (but shall not be required to) use to the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Landlord for damages resulting from termination transfer of this Lease and the tenancy created hereunder 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 (including“Letter of Credit”). The Letter of Credit shall either provide that it does not expire until 60 days following the Expiration Date or, if it is for less than the full Lease Term, shall be renewed by Tenant at least 60 days prior to its expiration during the Lease Term. The Letter of Credit shall provide that it may be drawn down upon by Landlord at any time Landlord delivers its site draft to the bank. If Landlord sells or conveys the Premises, Tenant shall, at ▇▇▇▇▇▇▇▇’s request, cooperate in having the Letter of Credit transferred to the purchaser and Landlord agrees to notify Tenant in the event of such transfer. If the Letter of Credit is ever drawn upon by Landlord pursuant to the terms of the Lease, Tenant shall within ten (10) business days thereafter cause the Letter of Credit to be restored to the then existing amount at the time immediately prior to the draw down. Notwithstanding anything contained herein to the contrary, 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 Lease, an immediate Event of Default shall be deemed to have occurred, without limitationthe requirement of notice or opportunity to cure, damages recoverable under California Civil Code Section 1951.2)in which case Landlord may immediately draw down on the Letter of Credit.

Security Deposit. Upon execution Subtenant shall deposit with Sublandlord the sum of this Lease, Tenant shall pay to Landlord $23,364.84 (the “Security Deposit specified in Paragraph 2.d. above Deposit”) as security for Tenant’s the performance by Subtenant of all the provisions of Tenant’s covenants and obligations under this Lease; providedSublease. If Subtenant defaults with respect to any provision of this Sublease, however, that the Security Deposit is not an advance rent deposit or an advance including payment of any other kindthe Rent, nor a measure of Landlord’s damages Sublandlord may use, apply, draw upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use retain all or any part of the Security Deposit to the extent necessary for the payment of any Rent, or to compensate Landlord Sublandlord for damages resulting any other loss, cost or damage which Sublandlord may suffer by reason of Subtenant’s default. If any portion of the Security Deposit is so used, applied, or drawn upon, Subtenant shall, within ten (10) days after notice thereof, deposit cash with Sublandlord in an amount sufficient to restore the Security Deposit to its original amount. Subtenant’s failure to do so shall be a breach of this Sublease. Sublandlord shall not, unless otherwise required by law, be required to keep the Security Deposit separate from its general funds, nor pay interest to Subtenant. If Subtenant shall fully and faithfully perform every provision of this Sublease to be performed by it, the Security Deposit or any balance thereof shall be returned to Subtenant (or to the last transferee of Subtenant’s interest hereunder) within thirty (30) days after the expiration of the Term (or sooner termination of this Sublease) and upon Subtenant’s vacation of the Premises in accordance with this Sublease. If the Lease is assigned, the Security Deposit shall be transferred to the assignee, and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)thereupon Sublandlord shall be discharged from further liability with respect thereto.

Security Deposit. Upon execution The Security Deposit shall be held by Landlord as security for the performance of Tenant's obligations under this Lease. If Tenant fails to pay Rent, or otherwise an Event of Default occurs under this Lease, Landlord may use, apply or retain all or any portion of said Security Deposit for the payment of any amount already due Landlord, for Rents which will be due in the future, and/or to reimburse or compensate Landlord for any liability, expense, loss or damage which Landlord may suffer or incur by reason thereof. If Landlord uses or applies all or any portion of the Security Deposit, Tenant shall within 10 days after written request therefor deposit monies with Landlord sufficient to restore said Security Deposit to the full amount required by this Lease. If the Base Rent increases during the term of this Lease, Tenant shall pay to shall, upon written request from Landlord, deposit additional monies with Landlord so that the total amount of the Security Deposit specified shall at all times bear the same proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base Rent. Should the Permitted Use be amended to accommodate a material change in Paragraph 2.dthe business of Tenant or to accommodate a sublessee or assignee, Landlord shall have the right to increase the Security Deposit to the extent necessary, in Landlord's reasonable judgment, to account for any increased wear and tear that the Premises may suffer as a result thereof. above as security Landlord may use, apply or retain all or any portion of the Security Deposit (i) first, for Tenant’s performance of all of Tenant’s covenants and obligations 's repair obligations, including without limitation, the obligation to restore the Premises to the condition required under this Lease; provided, however(ii) second, that to the Security Deposit is not an advance payment of any rent deposit or an advance other sum in default or for the payment of any other kindsum to which Tenant may become obligated by reason of Tenant's default, nor and (iii) third, to compensate Landlord for any loss or damage which Landlord may suffer thereby. If a measure change in control of Tenant occurs during this Lease and following such change the financial condition of Tenant is, in Landlord’s damages upon Tenant’s default's reasonable judgment, significantly reduced, Tenant shall deposit such additional monies with Landlord as shall be sufficient to cause the Security Deposit to be at a commercially reasonable level based on such change in financial condition. Landlord shall not be required to segregate keep the Security Deposit separate from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Defaultgeneral accounts. Within thirty (30) 90 days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application that portion of the Security Deposit as permitted hereunder; provided, however, not used or applied by Landlord. Landlord shall upon written request provide Tenant with an accounting showing how that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all portion of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only that was not returned was applied. No part of the Security Deposit shall be considered to the extent such holder be held in trust, to bear interest or purchaser shall have actually received the sameto be prepayment for any monies to be paid by Tenant under this Lease (including, without limitation, Base Rent). Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, andand all other provisions of law, without limitation of the scope of such waivernow or hereafter in force, acknowledges which may provide that Landlord may use all can claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant or any part of to clean the Security Deposit Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for damages resulting from termination any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of this Lease and the tenancy created hereunder (includingTenant or any officer, without limitation, damages recoverable under California Civil Code Section 1951.2)employee or agent of Tenant.

Security Deposit. Upon execution of this Lease, Tenant shall Owner agrees to pay to Landlord the Marina the amount of the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s above, to secure the faithful performance of Owner's obligations hereunder. In addition to all of Tenant’s covenants and obligations remedies that ▇▇▇▇▇▇ ▇▇▇ have under this Lease; providedAgreement, however, that the ▇▇▇▇▇▇ ▇▇▇ at its sole option and judgment apply such amounts of said Security Deposit is not an advance rent deposit or an advance Fee as are reasonably necessary to: (a) remedy Owner's default in payment of the fees and other charges due hereunder; (b) repair damage to Marina property caused by Owner's or Owner's family, guests, agents or other invitees; (c) clean the berth/mooring/storage space; (d) pay attorneys' fees, litigation expenses and costs incurred in enforcing the Marina's rights and remedies relating to this Agreement; and/or (e) to satisfy any other kind, nor a measure of Landlord’s damages upon Tenant’s defaultthe Owner's obligations hereunder. Landlord shall not be required to segregate In the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the event this Security Deposit or any portion thereof is applied as provided herein, Owner agrees to cure any Event of Default or deposit with the Marina, within ten (10) days after written demand from ▇▇▇▇▇▇, an amount sufficient to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the restore said Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at lawits original sum. In such event and upon written notice from Landlord to Tenant specifying If the amount of the Security Deposit so utilized by Landlord and is increased during any term of the particular purpose for which such amount was appliedAgreement, Tenant shall immediately deposit with Landlord an amount sufficient Owner agrees to return pay additional sums as will cause the Security Deposit paid by him/her/it to equal the amount specified in Paragraph 2.drequired by the Marina's then current "Rate Schedule." Failure to do so shall constitute a material breach of this Agreement. Tenant’s failure to make such All Security Deposits are fully earned at the time of payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of DefaultMarina. Within thirty (30) days after the expiration or Upon termination of this Lease, Landlord shall return to Tenant the Agreement any remaining portion of said Security Deposit or will be returned to Owner within 30 days following the balance thereof then held by Landlord after application date the Marina has regained possession of the berth/mooring/storage space and is able to determine the amount of any refund if any, to the Owner. Unless the Marina expressly so approves in writing, Owner may not use any portion of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale payment of the Real Property or any portion thereoflast month's wharfage fees. ▇▇▇▇▇▇ shall have the right to combine said Security Deposit with other funds of the Marina. ▇▇▇▇▇▇ shall not be obligated to, and shall be responsible to Tenant for not, pay interest on the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)Deposit.

Security Deposit. Upon execution of this Lease, Tenant shall pay to deposit with Landlord upon execution hereof that sum identified in the Summary as the Security Deposit specified in Paragraph 2.d. above (the “Security Deposit”) as security for Tenant’s faithful performance of all of Tenant’s covenants and 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 Lease; provided, howeverLandlord may use, that apply, or retain all or any portion of said deposit for the Security Deposit is not an advance payment of any rent deposit or an advance other charge in default or for the payment of any other kind, nor a measure sum to which Landlord may become obligated by reason of Landlord’s damages upon 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 by Landlord shall not prevent Landlord from 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 an amount sufficient to restore said deposit to the full amount then required of Tenant. Landlord shall not be required to segregate keep the Security Deposit separate from its general accounts and Tenant shall not be entitled to, and Tenant hereby specifically waives any requirement that Landlord pay interest on the Security Deposit. If Tenant performs all of Tenant’s obligations hereunder, the Security Deposit, or so much thereof as has not theretofore been applied by Landlord, shall be returned, without payment of interest or other funds increment for its use, to Tenant or, at Landlord’s option, to the last assignee, if any, of Tenant’s interest hereunder. at the expiration of the Term hereof, and no interest shall accrue after Tenant has vacated the Leased Premises. No trust or be payable to fiduciary relationship is created herein between Landlord and Tenant with respect theretoto the Security Deposit. If Landlord transfers the Leased Premises during the Term hereof, Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return pay the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after successor in interest in accordance with Civil Code § 1950.7 or any successor statute, in which event the expiration or termination of this Lease, transferring Landlord shall be released from all liability for the return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)Deposit.

Security Deposit. Upon execution of this Lease, Tenant shall pay acknowledges and agrees that Tenant has delivered to Landlord the a Security Deposit specified (as defined in the 901 Gateway Lease) pursuant to the terms of the 901 Gateway Lease and that Landlord shall have the right to apply all or any portion of such Security Deposit in connection with any Default (as defined in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s covenants and obligations 24) under this Lease; provided, however, that the . The Security Deposit is not an advance rent rental deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon in case of Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Upon each occurrence of a Default by Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Landlord for pay delinquent payments due under this Lease, future rent damages resulting from termination of this Lease and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2, and the cost of any damage, injury, expense or liability caused by such Default, without prejudice to any other remedy provided herein or provided by law. Landlord’s right to use the Security Deposit under this Paragraph 7 includes the right to use the Security Deposit to pay future rent damages following the termination of this Lease pursuant to Paragraph 25.5 below. Upon any use of all or any portion of the Security Deposit, Tenant shall pay Landlord within twenty (20) days after receipt of written demand the amount that will restore (by the delivery of a replacement or amended Letter of Credit) the Security Deposit to the amount set forth in the definition of “Letter of Credit” set forth in the Basic Lease Information of the 901 Gateway Lease. Tenant hereby waives the provisions of any law, now or hereafter in force, including, without limitation, California Civil Code Section 1950.7, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the Default of Tenant or any of Tenant’s Agents under this Lease. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings, subject to applicable bankruptcy law. If Tenant shall fully perform every provision of this Lease to be performed by Tenant and Landlord is holding cash in the amount of a bifurcated Letter of Credit (as described below) or cash proceeds therefrom, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all amounts to which Landlord is entitled under the provisions of this Lease), shall be returned to Tenant within ninety (90) days after the expiration or earlier termination of this Lease. If Landlord is holding a bifurcated Letter of Credit upon the expiration or earlier termination of this Lease, Landlord shall comply with the LC Issuer’s requirements necessary to cancel the bifurcated Letter of Credit by the date that is ninety (90) days after the expiration or earlier termination of this Lease. Notwithstanding anything contained in this Paragraph 7 to the contrary, if Landlord draws on the Letter of Credit for any reason, then Tenant shall have the right, upon ten (10) days’ prior written notice to Landlord, to obtain a refund from Landlord of any unapplied proceeds of the Letter of Credit which Landlord has drawn upon, any such refund being conditioned upon Tenant simultaneously delivering to Landlord a replacement Letter of Credit in the amount required by, and otherwise meeting the requirements contained in, this Paragraph 7 and Paragraph 7 of the 901 Gateway Lease. Notwithstanding anything to the contrary contained herein or in the 901 Gateway Lease, if requested by Landlord at any time following the date of this Lease, Tenant shall cause the LC Issuing Bank (as defined in the 901 Gateway Lease) to bifurcate the Letter of Credit (as defined in the 901 Gateway Lease) into two separate letters of credit, one securing Tenant’s obligations under the 901 Gateway Lease and the other securing Tenant’s obligations under this Lease. Such bifurcated letters of credit shall each be in an amount specified by Landlord, provided that the aggregate amount of such letters of credit shall equal the amount of the Letter of Credit immediately prior to such bifurcation. Concurrently with the bifurcation of the Letter of Credit, Landlord and Tenant shall enter into a modification of the 901 Gateway Lease and a modification of this Lease, which modifications shall amend Paragraph 7 of the 901 Gateway Lease and this Paragraph 7 to provide for separate, stand-alone security deposit provisions in the 901 Gateway Lease and this Lease. If Landlord transfers its interest in the Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this Paragraph 7, or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to such transferee or the return of the Security Deposit to Tenant, Landlord shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon.”

Security Deposit. Upon execution of this Lease, Tenant shall hereby agrees to pay to Landlord a security deposit of eight thousand four hundred forty dollars and fifty cents ($8,440.50), which is equal to first month’s Base Rental, on the day this Lease is executed by Tenant (the “Security Deposit”). Upon the occurrence of any Event of Default by Tenant, Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit specified in Paragraph 2.dto the extent necessary to make good any arrears of Base Rental or Additional Rental or any other payment obligation hereunder, including, but not limited to, the cost of any damage, injury, expense, or liability caused by any Event of Default by Tenant hereunder. above as security for Tenant’s performance Any remaining balance of all the Security Deposit shall be returned by Landlord to Tenant within a reasonable period of time after the termination or expiration of this Lease and the satisfaction of Tenant’s covenants and obligations under this Lease; provided, however, that the hereunder. The Security Deposit is shall not an advance rent deposit or be considered an advance payment of any other kind, nor rental or a measure of Landlord’s damages upon in case of default by Tenant’s default. Landlord Tenant shall not be required entitled to segregate receive and shall not receive any interest on the Security Deposit from its other funds Deposit, and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use commingle the same with other monies of Landlord. In the event Landlord applies the Security Deposit or any portion thereof to cure the payment of any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under sum described above and this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was appliedis not terminated, Tenant shall immediately deposit with Landlord an amount sufficient of money equal to return 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 amount specified in Paragraph 2.d. Tenant’s failure to make purchaser or lessor, as the case may be, and upon any such payment to Landlord within five (5) days transfer and acknowledgement of Landlord’s notice shall constitute an Event receipt of Default. Within thirty (30) days after the expiration or termination of this LeaseSecurity Deposit by such transferee, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application be relieved of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible liability to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part return of the Security Deposit Deposit, and Tenant shall look solely to compensate Landlord the new owner or lessor for damages resulting from termination the return of this Lease and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Security Deposit.

Security Deposit. Upon Tenant’s execution of this Lease, Tenant shall pay to Landlord the Security Deposit specified deposit with Landlord, cash in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized set forth in the Principal Lease Provisions, to secure the performance by Tenant of its obligations under this Lease, including without limitation Tenant’s obligations (i) to pay Basic Monthly Rent and Additional Rent (as defined below), (ii) to repair damages to the Premises and/or the Project caused by Tenant or Tenant’s agents, employees, contractors, licensees, and invitees (collectively, “Tenant’s Invitees”), (iii) to surrender the Premises in the condition required by Paragraph 24, below, and (iv) to remedy any other Event of Default by Tenant in the performance of any of its obligations under this Lease. If Tenant commits an Event of Default under this Lease, Landlord and the particular purpose for which such amount was appliedmay, Tenant shall immediately deposit with Landlord an amount sufficient to return at its election, use the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make cure such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Landlord for damages resulting from termination all damage suffered by Landlord which are directly attributable to such Event of this Lease and the tenancy created hereunder (Default, including, without limitation, damages recoverable under California Civil Code Section 1951.2)reasonable attorneys’ fees and costs incurred by Landlord. Upon demand by Landlord, Tenant shall promptly pay to Landlord a sum equal to any portion of the Security Deposit so used by Landlord, in order to maintain the Security Deposit in the amount set forth in the Principal Lease Provisions. Following the Expiration Date, and within the earlier of 30 days or the time frame otherwise required by applicable law, Landlord shall deliver to Tenant, at Tenant’s last known address, any portion of the Security Deposit not used by Landlord, as provided in this Paragraph. Landlord may commingle the Security Deposit with Landlord’s other funds and Landlord will not pay interest on such Security Deposit to Tenant.

Security Deposit. Upon Concurrently with Tenant’s execution of this Lease, Tenant shall pay deliver to Landlord a sum equal to the amount stated in Section l(i) as security for the performance by Tenant of every covenant and condition of this Lease. Landlord’s obligations with respect to the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s performance are those of all of Tenant’s covenants a debtor and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect theretotrustee. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of maintain such sums separate and apart from Landlord’s remedies under this Lease general funds or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit may commingle them with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Defaultgeneral or other funds. Within thirty (30) days after the expiration or termination of this LeaseLandlord is not required to pay Tenant interest on such sums, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof. If Tenant defaults with respect to any covenant or condition of this Lease beyond any applicable notice and cure period, shall be responsible to Tenant for the Security Deposit unless and only including but not limited to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections payment of California Civil Code Section 1950.7rent, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all apply the whole or any a part of the Security Deposit to compensate the payment of any sum in default or any other sum which Landlord for damages resulting may be required to spend by reason of Tenant’s default. Tenant shall replenish any amounts spent by Landlord pursuant to the terms of Section 23 below within thirty (30) days following receipt of notice from Landlord. Within a reasonable period of time (not to exceed thirty (30) days) after expiration of the Lease Term or earlier termination of this Lease, the Security Deposit shall be returned to Tenant, less those amounts that may be required by Landlord under the terms of this Lease (a) to remedy defaults on the part of Tenant in the payment of Rent or otherwise, (b) to repair damages to the Premises caused by Tenant, provided Landlord is entitled to the same under the terms of this Lease, and (c) to restore the tenancy created hereunder (includingPremises to the condition required by this Lease. If Landlord disposes of its interest in the Premises, without limitationLandlord shall deliver or credit the Security Deposit to Landlord’s successor in interest in the Premises and provided such successor assumes Landlord’s obligations hereunder, damages recoverable under California Civil Code Section 1951.2)Landlord shall be relieved of further responsibility with respect to the Security Deposit.

Security Deposit. Upon the later of execution of this LeaseAmendment and Landlord's receipt of Tenant's deposit in the amount of $150,000.00 (the "Security Deposit"), Tenant shall pay Landlord agrees to Landlord waive the Security Deposit specified in Paragraph 2.d. above requirement of a letter of credit as security for Tenant’s performance of all of Tenant’s covenants and 's obligations under this the Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use apply all or any part of the Security Deposit to compensate any unpaid Rent or to cure any other defaults of Tenant. If Landlord for damages resulting from termination uses any part of this the Security Deposit, Tenant shall restore the Security Deposit to its original amount within 1O business days after Landlord's written request. Tenant's failure to do so shall be a default under the Lease and the tenancy created hereunder (includingoverdue amount shall accrue interest as any delinquent payment. If twice within any 12 month period, without limitationlate charges are assessed against Tenant by Landlord, damages recoverable Landlord may, by written notice to Tenant, require Tenant to pay Landlord an amount equal to two months Base Rent as an increase in the Security Deposit, due within 5 business days after Tenant's receipt of the notice. If Landlord transfers its interest in the Premises, Landlord shall transfer the Security Deposit to its successor in interest, and notify Tenant in writing of such transfer, including the date of the transfer, the amount transferred, and the name and address of the transferee, whereupon Landlord shall be automatically released from any liability for the return of the Security Deposit. If, at the end of the Term, Tenant has fully complied with all obligations under California Civil Code Section 1951.2)the Lease, then the remaining Security Deposit shall be returned to Tenant after Landlord has verified that Tenant has fully vacated the Premises, removed all of its property and surrendered the Premises in the condition required; provided that Landlord may hold back a reasonable portion of the Security Deposit until final determination of Tenant's Share of Common Expenses due hereunder, which shall be made no later than 6 months following the expiration of the Term or earlier termination of the Lease, whereupon any final adjustment shall be made and any remaining Security Deposit shall be returned to Tenant. Landlord's obligations with respect to the Security Deposit are those of a debtor and not of a trustee, and Landlord can commingle the Security Deposit with Landlord's general funds and no interest shall be paid to Tenant on the Security Deposit. If the Premises is further increased in size due to any option Tenant exercises or otherwise, the Security Deposit shall be increased to an amount to be determined by Landlord at the time of expansion.

Security Deposit. Upon Tenant agrees to deposit with Landlord $198,800.00 as security for the performance by Tenant of every covenant and condition of this Lease by Tenant to be performed (the “Security Deposit”). Notwithstanding the foregoing, Landlord has waived the requirement of Tenant to deposit with Landlord the Security Deposit in the amount set forth in this Section 3.06 concurrently upon the execution of this Lease. Nevertheless, if Tenant defaults in the timely payment of the Base Rent or any Additional Rent required under this Lease on more than two (2) occasions during the Term of this Lease, then Tenant shall pay be required, within ten (10) days written notice from Landlord to deposit with Landlord the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s complete performance of all of Tenant’s covenants and its obligations under this Lease; provided, however, that Lease and the remainder of the terms and provisions of this Section 3.06 shall be applicable to the Security Deposit. The failure by Tenant to deposit with Landlord the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor as required hereunder shall constitute a measure of Landlord’s damages upon Tenant’s default. material default under this Lease and Landlord shall not be required to segregate deliver to Tenant any further notice of such default or allow any grace period for the cure of such default. Said deposit may be commingled with other funds of Landlord, and shall bear no interest. Upon the deposit of the Security Deposit, if Tenant shall default with respect to any covenant or condition of this Lease, including, but not limited to, the payment of any sum due hereunder, then Landlord may use such portion of the Security Deposit from its other funds as is necessary to cure such default. In the event Landlord so uses the Security Deposit in part or in whole, Tenant will restore the Security Deposit to the required amount upon notice of said default and no interest failure to do so shall accrue or be payable to a default under this Lease. Should Tenant comply with respect thereto. Landlord may (but shall not be required to) use all of the covenants and conditions of this Lease, the Security Deposit or any portion balance thereof shall be returned to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use Tenant at the expiration of the Term thereof. The Security Deposit shall not constitute a bar be deemed an advanced payment of Rent or defense to any measure of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized damages for any default hereunder by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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).

Security Deposit. Upon execution of Tenant shall, at the time that Tenant executes and delivers this LeaseLease to Landlord, Tenant shall pay to Landlord a security deposit (the “Security Deposit specified Deposit”) in Paragraph 2.d. above as security for the amount set forth in Exhibit 1 securing Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that . In no event shall the Security Deposit is not an advance be deemed to be a prepayment of rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s defaultliquidated damages. Landlord shall not be required to segregate the Security Deposit from its other funds and ▇▇▇▇▇▇ agrees that no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use on the Security Deposit or any portion thereof and that Landlord shall have the right to cure any Event commingle the Security Deposit with other funds of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform Landlord. In the event that Tenant shall default in any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return have the right, without prior notice to Tenant Tenant, to apply the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof) 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 default of Tenant under this Lease, or a rejection of this Lease pursuant to the provisions of the Federal Bankruptcy Code, Landlord shall be responsible have the right to Tenant for apply the Security Deposit unless (from time to time, if necessary) to cover the full amount of damages and only other amounts due from Tenant to Landlord under this Lease. Any amounts so applied shall, at ▇▇▇▇▇▇▇▇’s election, be applied first to any unpaid rent and other charges which were due prior to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation filing of the scope petition for protection under the Federal Bankruptcy Code. The application of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Landlord for damages resulting from termination any obligation or default of Tenant under this Lease and shall not deprive Landlord of any other rights or remedies Landlord may have or constitute a waiver by Landlord. Provided that Tenant is not in default of any of its obligations under this Lease at the tenancy created hereunder (includingexpiration of the Term, without limitation, damages recoverable under California Civil Code Section 1951.2)Landlord shall refund to Tenant any portion of the Security Deposit which Landlord is then holding.

Security Deposit. Upon Subject to the terms of Article 35 below, the Security Deposit, if any, shall be delivered to Landlord upon the execution of this Lease, Lease by Tenant and shall pay to be held by Landlord the Security Deposit specified in Paragraph 2.d. above without liability for interest (unless required by Law) as security for Tenant’s the performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the obligations. The Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor Rent or a measure of Landlord’s damages upon Tenant’s defaultliability for damages. The amount of the Security Deposit shall be subject to reduction in the manner and at the times specified as though it were a Letter of Credit (as described in Article 35). Landlord may, from time to time, without prejudice to any other remedy, use all or a portion of the Security Deposit to satisfy past due Rent or to cure any uncured default by Tenant. If Landlord uses the Security Deposit, Tenant shall on demand restore the Security Deposit to its original amount. At the later of (1) termination of this Lease, or (ii) the date Tenant surrenders the Premises to Landlord in accordance with the provisions of this Lease, Landlord shall return any unapplied portion of the Security Deposit (less any amounts retained to reimburse Landlord for any uncured defaults) to Tenant within 10 Business Days after the date this Lease expires or terminates and Tenant surrenders possession of the Premises to Landlord in accordance with this Lease. In addition to any other deductions Landlord is entitled to make pursuant to the terms hereof, Landlord shall have the right to make a good faith estimate of any unreconciled Expenses and/or Taxes as of the Termination Date and to deduct any anticipated shortfall from the Security Deposit. If Landlord transfers its interest in the Premises, Landlord may assign the Security Deposit to the transferee and, following the assignment, Landlord shall have no further liability for the return of the Security Deposit, provided that such transferee has agreed in writing to assume the obligations of Landlord under this Lease with respect to the Security Deposit. Landlord shall not be required to segregate keep the Security Deposit separate from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the sameaccounts. Tenant hereby unconditionally and irrevocably waives the benefits and protections provisions of Section 1950.7 of the California Civil Code Section 1950.7Code, and, without limitation of the scope of such 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)similar or successor Laws now or hereinafter in effect.

Security Deposit. Upon execution of this Lease, Tenant shall pay agrees to Landlord deposit the Security Deposit specified in Paragraph 2.dwith Landlord on the date hereof. above The Security Deposit shall be retained by Landlord as security for Tenant’s the faithful performance and observance by Tenant of all of Tenant’s covenants and its obligations under this Lease; provided, however, it being expressly agreed that the Security Deposit is not an advance rent rental deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default's damages. Except as may otherwise be required by applicable law, (a) Tenant shall not be entitled to any interest on the Security Deposit, (b) Landlord shall not be required obligated to segregate hold the Security Deposit from its other funds in trust or in a separate account, and no interest (c) Landlord shall accrue or be payable have the right to Tenant with respect thereto. Landlord may (but shall not be required to) use commingle the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of with its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies other funds. If Tenant defaults under this Lease and such default extends beyond any applicable grace or at law. In such event and upon written cure period (following notice from Landlord of default being given to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, andrequired hereunder), without limitation limiting any other right or remedy of the scope of such waiverLandlord, acknowledges that Landlord may use all also apply the whole or any part of the Security Deposit to compensate the extent required for the payment of any Rent or other sums payable under this Lease as to which Tenant is in default or on account of any sum which Landlord may expend or may be required to expend by reason of Tenant's default. If any portion of the Security Deposit is applied by Landlord for damages resulting from termination any such purpose, Tenant shall, within ten (10) days after demand is made by Landlord, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant shall fully and faithfully comply with all of the covenants and conditions of this Lease Lease, the Security Deposit shall be promptly returned to Tenant after the expiration date of the Term and the tenancy created hereunder (includingsurrender of the Premises to Landlord. In no event shall the Security Deposit be applied to the last monthly installment of Base Rent or Additional Rent due prior to the expiration date of the Term. In the event of a sale of the Premises, without limitationLandlord shall have the right to transfer the Security Deposit to the purchaser subject to the terms of this Lease, damages recoverable under California Civil Code Section 1951.2)whereupon Landlord shall be released by Tenant from all liability for the return of the Security Deposit and Tenant shall look solely to the new landlord for its return.

Security Deposit. Upon Tenant shall deposit with Landlord the amount set forth in Article 1 (“Security Deposit”), upon Tenant’s execution and submission of this Lease. The Security Deposit shall serve as security for the prompt, full and faithful performance by Tenant shall pay of the provisions of this Lease. If Tenant commits a Default, or owes any amounts to Landlord upon the expiration or earlier termination of this Lease (including estimated amounts under Article 3, which shall 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 specified in Paragraph 2.d. above as security for Tenant’s performance of all the payment of Tenant’s covenants obligations hereunder. The use or application of the Security Deposit or any portion thereof shall not prevent Landlord from exercising any other right or remedy provided hereunder or under any Law and obligations under this Lease; provided, however, that shall not be construed as liquidated damages. In the event the Security Deposit is not reduced by such use or application, Tenant shall deposit with Landlord within ten (10) days after notice, an advance rent deposit or an advance payment amount sufficient to restore the full amount of any other kind, nor a measure of Landlord’s damages upon Tenant’s defaultthe Security Deposit. Landlord shall not be required to segregate keep the Security Deposit separate from its other Landlord’s general funds and no or pay interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use on the Security Deposit or any Deposit. Any remaining portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit not used or applied hereunder shall not constitute a bar or defense be returned to any of Tenant (or, at Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was appliedoption, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. last assignee of Tenant’s failure to make such payment to Landlord interest in this Lease) within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after Tenant (or such assignee) has vacated the expiration or Premises in accordance with Article 23 and this obligation shall survive termination of this the Lease. If the Premises shall be expanded at any time, Landlord or if the Term shall return to Tenant be extended at an increased rate of Rent, the Security Deposit shall thereupon be proportionately increased. Tenant shall not assign, pledge or the balance thereof then held by Landlord after application of otherwise transfer any interest in the Security Deposit except as permitted hereunder; provided, however, that in no event shall any such return be construed as part of an admission assignment of this Lease approved by Landlord that under Article 13, and any attempt to do so shall be null and void. Landlord shall provide Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale with written notice of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part transfer 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)any other party.

Security Deposit. 9.1 Upon execution of this Lease, Tenant shall pay to deposit with Landlord cash in the Security Deposit specified in Paragraph 2.d. above amount of $268,583 as security for Tenant’s the faithful performance by Tenant of all of the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the term and any extension term hereof If Tenant defaults with respect to any provision of this Lease, including but not limited to any provision relating to the payment of Rent, and subject to any notice requirements and cure periods for Tenant’s covenants and obligations under this Lease; providedbenefit set forth in Article 24, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required torequired) use to use, apply or retain the Security Deposit security deposit for the payment of any Rent or any portion thereof to cure any Event of Default other sum in default, or to compensate Landlord for any other loss or damage which Landlord incurs as a result may suffer by reason of Tenant’s failure default. Landlord may use the security deposit without giving notice of default to perform Tenant as otherwise required by Article 24 if Landlord is precluded from giving such notice by any of its covenants or obligations hereunder, it being understood that any use provision of the Security Deposit Bankruptcy Code. Tenant hereby grants to Landlord a security interest in the security deposit in accordance with the applicable provisions of the California Commercial Code to secure the obligations of this Lease. 9.2 In the event any or all of the security deposit is used to cure a Tenant default, Tenant shall not constitute a bar within fifteen (15) days after request therefore replenish the security deposit to the full amount set forth above. 9.3 In the event of bankruptcy or defense other debtor/creditor proceedings against Tenant, the security deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 9.4 Landlord shall deliver the security deposit to any purchaser of Landlord’s remedies under this Lease or at lawinterest in the Premises, and thereupon Landlord shall be discharged from any further liability with respect thereto provided that such purchaser has agreed to assume in writing the obligations of Landlord hereunder. In such event and upon written notice from Landlord This provision shall also apply to any subsequent transfers. 9.5 The security deposit shall be returned to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after following the expiration or termination of this Lease, except for amounts which are actually used to pay or reimburse Landlord shall return to Tenant the Security Deposit or the balance thereof then held for costs incurred by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall to cure any such return be construed as an admission default by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)Tenant.

Security Deposit. Upon execution of this Lease, Tenant shall pay to Landlord deposit the Security Deposit specified with Landlord on the date this Lease is executed by Tenant, which, in Paragraph 2.d. above as security for the manner described in and subject to the provisions of ,Section (M) of the Basic Lease Terms, shall be held by Landlord to secure Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the . The Security Deposit is not an advance rent rental deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s defaultfor an Event of Default (defined below). Landlord shall not be required to segregate may use any portion of the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. satisfy Tenant’s unperformed obligations under this Lease, to reimburse Landlord may (but shall not be required to) use the Security Deposit or for performing any portion thereof to cure any Event of Default such obligations or to compensate Landlord for any damage Landlord incurs as a result of its damages arising from Tenant’s failure to perform any of its covenants or obligations hereunderobligations, it being understood that any use of the Security Deposit shall not constitute a bar or defense without prejudice to any of Landlord’s remedies under this Lease or at lawother remedies. In such event and If so used, Tenant shall, upon written notice from request, pay Landlord an amount that will restore the Security Deposit to Tenant specifying the amount its original amount. The Security Deposit shall be Landlord’s property. The Security Deposit shall be maintained by Landlord in a segregated, non-interest bearing account. The unused portion of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, will be returned to Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within forty-five (545) days of Landlord’s notice shall constitute an Event of Default. Within thirty following the Expiration Date (30or the date on which Tenant surrenders the Premises, if later) days after the expiration or sooner termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord provided that Tenant has performed all of its covenants and obligations hereundervacated the Premises. No holder In the event of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial sale or private foreclosure sale other transfer of the Real Property or any portion thereofBuilding, Landlord shall be responsible to Tenant relieved of all liability for the Security Deposit unless and only provided that Landlord transfers the same to the extent such holder purchaser or transferee, and provided that the purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Landlord for damages resulting from termination of transferee assumes Landlord’s obligations under this Lease and in writing (which may be in the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2form of a general assignment).

Security Deposit. Upon execution of this Lease, Tenant shall hereby agrees to pay to Landlord a security deposit of twelve thousand six hundred twenty-six dollars ($12,626), which is equal to first month’s Base Rental, on the day this Lease is executed by Tenant (the “Security Deposit”). Upon the occurrence of any Event of Default by Tenant, Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit specified in Paragraph 2.dto the extent necessary to make good any arrears of Base Rental or Additional Rental or any other payment obligation hereunder, including, but not limited to, the cost of any damage, injury, expense, or liability caused by any Event of Default by Tenant hereunder. above as security for Tenant’s performance Any remaining balance of all the Security Deposit shall be returned by Landlord to Tenant within a reasonable period of time after the termination or expiration of this Lease and the satisfaction of Tenant’s covenants and obligations under this Lease; provided, however, that the hereunder. The Security Deposit is shall not an advance rent deposit or be considered an advance payment of any other kind, nor rental or a measure of Landlord’s damages upon in case of default by Tenant’s default. Landlord Tenant shall not be required entitled to segregate receive and shall not receive any interest on the Security Deposit from its other funds Deposit, and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use commingle the same with other monies of Landlord. In the event Landlord applies the Security Deposit or any portion thereof to cure the payment of any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under sum described above and this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was appliedis not terminated, Tenant shall immediately deposit with Landlord an amount sufficient of money equal to return 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 amount specified in Paragraph 2.d. Tenant’s failure to make purchaser or lessor, as the case may be, and upon any such payment to Landlord within five (5) days transfer and acknowledgement of Landlord’s notice shall constitute an Event receipt of Default. Within thirty (30) days after the expiration or termination of this LeaseSecurity Deposit by such transferee, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application be relieved of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible liability to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part return of the Security Deposit Deposit, and Tenant shall look solely to compensate Landlord the new owner or lessor for damages resulting from termination the return of this Lease and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Security Deposit.

Security Deposit. Upon execution of this Leasethe Execution Date, Tenant shall pay to deposit with Landlord the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s faithful performance of all of Tenant’s covenants obligations hereunder. If Tenant fails to timely pay rent or other charges due hereunder, or otherwise defaults with respect to any provisions of this Lease beyond applicable notice and obligations under this Lease; providedcure periods hereunder, howeverLandlord may use, that apply, or retain all or any portion of the Security Deposit is not an advance for the payment of any rent deposit or an advance other charge in default or for the payment of any other kind, nor a measure sum to which Landlord may become obligated by reason of Landlord’s damages upon Tenant’s default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby. Landlord shall have no obligation to apply the Security Deposit against any amount due or owing from Tenant under this Lease or against any Advance made by Landlord, nor shall the rights and remedies of Landlord under this Lease be affected in any manner by the fact that Landlord holds the Security Deposit. If, however, Landlord so uses or applies all or any portion of the Security Deposit, Tenant shall within ten (10) days after written demand therefor, deposit with Landlord an amount sufficient to restore the Security Deposit to the full amount stated above, and Tenant’s failure to do so shall constitute a default under this Lease. Landlord shall not be required to segregate keep the security deposit separate from its general accounts or to pay interest thereon, unless otherwise required by applicable law. If Tenant performs all of Tenant’s obligations hereunder, the Security Deposit from Deposit, or so much thereof after application thereof by Landlord in accordance with this Section 3.7, as has not been applied by Landlord, shall be returned, in cash, without payment of interest or other increment for its other funds use, to Tenant at the expiration of the Lease Term. No trust relationship is created herein between Landlord and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use to the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)Deposit.

Security Deposit. Upon Concurrently with Subtenant’s execution of this LeaseSublease, Tenant Subtenant shall deposit with Sublandlord the sum of $20,512.89 (the “Security Deposit”). The Security Deposit shall be held by Sublandlord as security for the faithful performance by Subtenant of all the provisions of this Sublease to be performed or observed by Subtenant. If Subtenant fails to pay rent or other sums due hereunder, or otherwise defaults with respect to Landlord any provisions of this Sublease after all applicable cure periods, Sublandlord may use, apply or retain all or any portion of the Security Deposit specified for the payment of any rent or other sum in Paragraph 2.d. above as security default or for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure sum to which Sublandlord may become obligated by reason of Landlord’s damages upon TenantSubtenant’s default, or to compensate Sublandlord for any loss or damage which Sublandlord may suffer thereby. Landlord If Sublandlord so uses or applies all or any portion of the Security Deposit, Subtenant shall within ten (10) business days after receipt of written notice therefor deposit cash with Sublandlord in an amount sufficient to restore the Security Deposit to the full amount thereof and Subtenant’s failure to do so shall be a material breach of this Sublease. Sublandlord shall not be required to segregate keep the Security Deposit separate from its other funds and no interest shall accrue or be payable to Tenant with respect theretogeneral accounts. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event If Subtenant performs all of Default or to compensate Landlord for any damage Landlord incurs as a result of TenantSubtenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall Deposit, or so much thereof as has not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized theretofore been applied by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereofSublandlord, shall be responsible returned, without interest, to Tenant for Subtenant (or, at Sublandlord’s option, to the last assignee, if any, of Subtenant’s interest hereunder) following the expiration of the Term, and after Subtenant has vacated the Subleased Premises; in addition to any other deductions Sublandlord is entitled to make pursuant to the terms hereof, Sublandlord shall have the right to make a good faith estimate of any unreconciled Operating Costs as of the date of expiration and to deduct any anticipated shortfall from the Security Deposit unless Deposit. Such estimate shall be final and only binding upon Subtenant. No trust relationship is created herein between Sublandlord and Subtenant with respect to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)Deposit.

Security Deposit. Tenant has deposited with Landlord the Security Deposit in the amount set forth above for the performance of each and every covenant and agreement to be performed by Tenant under this Lease. Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not limited to the amount of the Security Deposit. Landlord shall give Tenant written notice of the application of the Security Deposit or any part thereof within thirty (30) days of said application. If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon execution receipt of said notice, Tenant shall at once pay to Landlord an amount sufficient to restore the Security Deposit in full. Upon termination of this Lease, Tenant shall pay to Landlord the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s full payment of all amounts due and performance of all of Tenant’s 's covenants and obligations under this Lease; providedagreements (including surrender of the Property in accordance with Paragraph 15), however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof remaining unapplied shall be returned to cure any Event Tenant in accordance with applicable law. In the event of Default a sale, lease, or other transfer of the Building, Landlord may transfer or assign said Security Deposit to compensate Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or assumes all Landlord's obligations hereunder, it being understood that any use Tenant agrees to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall apply to each and every sale, lease or other transfer of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)Building.

Security Deposit. Upon execution On or before the Execution Date of this Lease, Tenant shall pay to deposit with Landlord the initial installment of the Security Deposit specified as set forth in Paragraph 2.d. above Section 2.2, which sum shall be held by Landlord as security for Tenant’s the faithful performance by Tenant of all of Tenant’s the terms, covenants and obligations under conditions of this Lease; provided, however, that Lease to be kept and performed by Tenant during the Term. Interest shall accrue on the Security Deposit for the benefit of Tenant and shall be paid to Tenant to the extent that Tenant is not an advance rent deposit or an advance payment entitled to the return of any other kind, nor a measure of Landlord’s damages upon Tenant’s defaultthe Security Deposit as provided in this Lease. Landlord shall not be required to segregate maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord; provided however, Landlord shall keep the Security Deposit from its other funds and no interest shall accrue or be payable to in a federally insured, interest-bearing account for the benefit of Tenant. If Tenant Defaults with respect thereto. to any provision of this Lease, then without notice to Tenant, Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use apply all or any part of the Security Deposit for the payment of any Rent or any other sum in Default. If any portion of the Security Deposit is so used or applied, then Tenant shall, upon demand therefor, restore the Security Deposit to its original amount. So long as no default has occurred and is continuing, the unapplied portion of the Security Deposit shall be returned to Tenant, or, at Landlord's option, to the last assignee of Tenant's interest hereunder, within sixty (60) days following the expiration of the Term. Tenant hereby irrevocably waives and relinquishes any and all rights, benefits, or protections, if any, Tenant now has, or in the future may have under any provision of law which (a) establishes the time frame by which a landlord must refund a security deposit under a lease, or (b) provides that a landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by a tenant, or to clean the subject premises. Tenant acknowledges and agrees that (x) any statutory time frames for the return of a security deposit are superseded by the express period identified in this Section 5.4, and (y) rather than be so limited, Landlord may claim from the Security Deposit (i) any and all sums expressly identified in this Section 5.4, and (ii) any additional sums reasonably necessary to compensate Landlord for any and all losses or damages resulting from caused by Tenant's default of this Lease, including, but not limited to, all damages or rent due upon termination of this Lease 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 tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)filing of such proceedings.

Security Deposit. Upon (a) Tenant shall deliver to Heritage Title Company of Austin, Inc. (“Escrow Agent”) upon execution and delivery of this Lease by Tenant the Security Deposit as security for the full and faithful performance of each of the terms hereof by Tenant. The Security Deposit shall be delivered to Landlord by the Escrow Agent upon Landlord’s achievement of the Delivery Date Milestone and delivery to the Escrow Agent and Tenant of the evidence of completion for such Milestone as set forth in Section 2.3 above. Landlord and Tenant shall execute a commercially reasonable escrow agreement regarding the escrow of the Security Deposit promptly after execution of this Lease, Tenant it being agreed that the Escrow Agent’s standard escrow agreement is commercially reasonable. Landlord shall pay be required to Landlord keep the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit separate from its other general funds and no Tenant shall be entitled to interest shall accrue or be payable to Tenant with respect theretothereon. If an Event of Default occurs, Landlord may (may, but shall not be required to) use , use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any portion thereof other sum in default, or for the payment of any other amount which Landlord may spend or become obligated to cure any spend by reason of such Event of Default or to compensate Landlord for any other loss or damage which Landlord incurs as a result may suffer by reason of such Event of Default, including, without limitation, costs and attorneys’ fees incurred by Landlord to recover possession of the Premises. If any portion of the Security Deposit is so used or applied, Tenant shall, upon demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount and Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit do so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default. (30b) days after the expiration or termination of Except as expressly set forth in this Lease, Tenant acknowledges that Landlord has the right to transfer or mortgage its interest in the Building and in this Lease, and Tenant agrees that in the event of any such transfer or mortgage, Landlord shall have the right to transfer or assign the Security Deposit to the transferee or mortgagee. Upon such transfer or assignment of the Security Deposit, Landlord shall be deemed released by Tenant from all liability or obligation for the return of the Security Deposit and Tenant shall look solely to such transferee or mortgagee for the return of the Security Deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit or the any balance thereof then held by Landlord after application 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 Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all Term and surrender of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale possession of the Real Property or any portion thereof, shall be responsible Premises to Tenant for Landlord in compliance with the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Landlord for damages resulting from termination provisions of this Lease and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Lease.

Security Deposit. Upon execution Section 29.1 Tenant has deposited the Security Deposit with Landlord as security for the full and faithful performance of every provision of this Lease to be performed by Tenant through the Term and all renewals thereto. If an Event of Default shall have occurred with respect to any provision of this Lease, Tenant shall pay including but not limited to the provisions relating to the payment of Fixed Rent and Additional Rent, Landlord the may use, apply or retain all or any part of this Security Deposit specified for the payment of any Fixed or Additional Rent or any other sum as to which Tenant is in Paragraph 2.d. above as security default or for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kindamount which Landlord may spend or become obligated to spend by reason of such Event of Default, nor a measure or to compensate Landlord for any other loss, cost or damage which Landlord may suffer by reason of Landlord’s damages upon such Event of Default to the extent permitted under this Lease. Landlord shall give Tenant notice contemporaneously with such use or application of any portion of the Security Deposit. Tenant shall, within ten (10) Business Days after the giving of such notice, deposit with Landlord cash (or other suitable collateral such as an additional letter of credit) in an amount sufficient to restore the Security Deposit to the amount then required pursuant to the terms of this Article 29 and Tenant’s defaultfailure to do so shall be a breach of this Lease. Landlord shall not, unless otherwise required by Laws, pay interest to Tenant on the Security Deposit, and if Landlord is required to maintain the Security Deposit in an interest bearing account, Landlord will retain the maximum amount permitted under Laws as a bookkeeping and administrative charge. Tenant shall not assign or encumber any part of the Security Deposit, and no assignment or encumbrance by Tenant of all of any part of the Security Deposit shall be binding upon Landlord, whether made prior to, during, or after the Term. Landlord shall not be required to segregate exhaust its remedies against Tenant or against the Security Deposit from its before having recourse to any other funds form of security held by Landlord and no interest shall accrue or be payable recourse by Landlord to Tenant with respect thereto. Landlord may (but any Security Deposit shall not affect any remedies of Landlord which are provided in this Lease or which are available to Landlord in law or in equity. If Tenant shall fully and faithfully perform every covenant and provision of this Lease to be required to) use performed and observed by Tenant, the Security Deposit or any portion balance thereof shall be returned to cure any Event Tenant reasonably promptly after the expiration or sooner termination (other than a termination pursuant to Article 17) of Default or to compensate Landlord for any damage Landlord incurs as a result of the Term and Tenant’s failure surrender to perform any of its covenants or obligations hereunder, it being understood that any use Landlord of the Security Deposit shall not constitute a bar Premises, but in no event later than sixty (60) days after such expiration or defense to any of Landlord’s remedies under this Lease or at lawtermination. In such the event and upon written notice from the Building is sold, Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return transfer the Security Deposit to the amount specified new owner and Landlord shall thereupon be released by Tenant from all liability for the return of said Security Deposit; and Tenant agrees to look to the new owner solely for the return of the Security Deposit. A lease of the entire Building shall be deemed a transfer within the meaning of the foregoing sentence. Landlord shall notify or cause Tenant to be notified in Paragraph 2.dthe event of any transfer of the Building. Section 29.2 Landlord agrees to reduce the Security Deposit as set forth below. Tenant’s failure Landlord shall have no obligation to make such payment reduce and Tenant shall have no right to request a reduction in the Security Deposit unless all of the following conditions have been satisfied on the date of the scheduled reduction to the Security Deposit: (a) No Event of Default shall have occurred and be continuing under this Lease; and (b) there shall not have occurred any material adverse change in the financial condition of Tenant from the condition described in the financial statements submitted by Tenant to Landlord within five (5) days of Landlord’s notice shall constitute in connection with this Lease. Notwithstanding the foregoing, if an Event of Default. Within thirty (30) days after Default existed on the expiration or termination date of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application scheduled reduction of the Security Deposit and Tenant subsequently cures said Event of Default without Landlord having terminated this Lease, Tenant shall then be entitled to an immediate reduction of said Security Deposit at the time of said cure by Tenant by the amount as permitted hereunder; providedto which said Security Deposit would have been reduced had such Event of Default not existed. Section 29.3 (a) Subject to the terms in Section 29.2, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless shall be reduced from the original Two Hundred Ninety-Five Thousand and only to no/100 Dollars ($295,000.00): (i) on the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections first day of California Civil Code Section 1950.7December 2006, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Landlord shall be reduced by Seventy-Two Thousand Four Hundred Forty-Six and 80/100 Dollars ($72,446.80) and such amount shall be credited towards the monthly Rent for damages resulting from termination December 2006 and January 2007; (ii) on the first day of this Lease December 2007, the Security Deposit shall be reduced by Seventy-Two Thousand Four Hundred Forty-Six and 80/100 Dollars ($72,446.80) and such amount shall be credited towards the tenancy created hereunder monthly Rent for December 2006 and January 2008; and (includingiii) on the first day of December 2008, without limitation, damages recoverable under California Civil Code Section 1951.2)the Security Deposit shall be reduced by Seventy-Two Thousand Four Hundred Forty-Six and 80/100 Dollars ($72,446.80) and such amount shall be credited towards the monthly Rent for December 2008 and January 2009.

Security Deposit. Upon Letter of Credit. BLC Holdings shall, upon the execution of this LeaseAgreement by BLC Holdings, Tenant shall pay either (i) cause to Landlord be deposited with PSLT-BLC Holdings cash in the amount of the Security Amount (the "Security Deposit"), or (ii) cause to be delivered to PSLT-BLC Holdings a letter of credit (the "Letter of Credit") issued in favor of PSLT-BLC Holdings in the amount of the Security Amount, as security for the performance and observance by BLC Holdings of the terms, conditions and provisions of this Agreement and as security for the performance and the observance by each of the Brookdale Lessees of the terms, conditions and provisions of the Property Leases, including, without limitation, the surrender of possession of the Facilities by the Brookdale Lessees as provided in the Property Leases. Upon the occurrence and during the continuance of an Event of Default, PSLT-BLC Holdings may draw upon the Letter of Credit or apply any portion of the Security Deposit specified to the extent required for the payment of any sum as to which BLC Holdings or the Brookdale Lessee(s) under the Property Lease(s) to which the applicable Event of Default relates is in default or for any sum which PSLT-BLC Holdings may have expended or may be required to expend by reason of the occurrence of such Event of Default, including any damages or deficiency accrued before or after summary proceedings or other re-entry by any Provident Lessor pursuant to any Property Lease. Subject to the provisions of Paragraph 2.d. above as security for Tenant’s performance 10(b) hereof, if PSLT-BLC Holdings draws upon the Letter of Credit and applies or retains any portion or all of Tenant’s covenants and obligations under this Lease; providedthe sum received upon such draw, howeveror applies any portion of the Security Deposit, BLC Holdings shall forthwith take such action as is necessary to restore the face amount of the Letter of Credit to the Security Amount or pay any deficiency to PSLT-BLC Holdings such that the Security Deposit is not an advance rent deposit at all times equal to the Security Amount. The Security Deposit shall be held in a segregated bank account and shall be invested in Permitted Investments. BLC Holdings or an advance the party posting the Security Deposit in accordance with the terms and conditions set forth in Paragraph 33(d) below shall be responsible for payment of any federal, state or local income or other kind, nor a measure of Landlord’s damages upon Tenant’s defaulttax applicable to income earned from Permitted Investments. Landlord shall not be required to segregate the Security Deposit from its other funds and no All interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of accruing on the Security Deposit shall not constitute a bar be held by PSLT-BLC Holdings for the account of BLC Holdings or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of other party posting the Security Deposit so utilized by Landlord Deposit, and shall be distributed to BLC Holdings or such other party on the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five fifteenth (515th) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days day after the expiration or termination end of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Landlord for damages resulting from termination of this each Lease and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Year.

Security Deposit. Upon As of the parties’ execution of this Lease, Tenant shall pay to Landlord deliver the Security Deposit specified in Paragraph 2.d. above the amount of $20,000 to Landlord paid over twelve months beginning September 1, 2015 as $1,666.67 consistent with Section 1.01 as partial security for Tenant’s the performance by Tenant of all the provisions of Tenant’s covenants and obligations this Lease. In the event of any Default by Tenant under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required have the right to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit apply all or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar to cure the Default and reinstate this Lease, or defense to any of Landlord’s remedies under this Lease otherwise compensate Landlord for all damages sustained by Landlord resulting from or at lawin connection with such Default. In the event of any such event and upon written notice from Landlord to Tenant specifying the amount application of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was appliedLandlord, Tenant shall immediately deposit with upon demand deliver to Landlord an amount sufficient the sum required to return restore the Security Deposit to the amount specified set forth in Paragraph 2.dSection 1.01. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after Provided that Tenant is not in Default at the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any remaining portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Tenant within thirty (30) days after the date of such expiration or termination. Landlord's rights with respect to the Security Deposit are those of a trustee. Landlord shall be entitled to commingle the Security Deposit with Landlord's general funds and shall have no obligation to pay Tenant interest on the Security Deposit. In the event of a transfer of Landlord's interest in this Lease during the Term hereof, provided Landlord transfers the then unapplied Security Deposit to the transferee and the transferee agrees and actually does deposit the check to a trust account held for damages resulting from termination the sole use of this Lease and provision, Landlord shall be discharged from any further liability with respect to the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Security Deposit.

Security Deposit. Upon execution of signing this Lease, Tenant shall pay immediately deposit with Landlord the amount set forth in Article 1 as the “Security Deposit” as security for the performance by Tenant of the terms of this Lease to be performed by Tenant, and not as prepayment of rent. Landlord may apply such portion or portions of the Security Deposit specified as are reasonably necessary for the following purposes: (i) to remedy any default by Tenant in Paragraph 2.d. above as security for the payment of Base Monthly Rent or Additional Rent or a late charge or interest on defaulted rent; (ii) to repair damage to the Leased Premises caused by Tenant; (iii) to clean and repair the Leased Premises following their surrender to Landlord if not surrendered in the condition required pursuant to the provisions of Article 2; and (iv) to remedy any other default of Tenant to the extent permitted by Law including, without limitation, paying in full on Tenant’s performance behalf any sums claimed by materialmen or contractors of all of Tenant to be owing to them by Tenant for work done or improvements made at Tenant’s covenants and obligations under request to the Leased Premises. In this Lease; providedregard, however, that Tenant hereby waives any restriction on the uses to which the Security Deposit is not an advance rent deposit or an advance payment may be applied as contained in Section 1950.7(c) of the California Civil Code and/or any other kind, nor a measure of Landlord’s damages upon Tenant’s defaultsuccessor statute. Landlord shall not be required to segregate In the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use event the Security Deposit or any portion thereof is so used, Tenant shall pay to cure any Event of Default or Landlord, promptly upon demand, an amount in cash sufficient to compensate restore the Security Deposit to the full original sum. Landlord for any damage Landlord incurs as shall not be deemed a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use trustee of the Security Deposit. Landlord may use the Security Deposit in Landlord’s ordinary business and shall not constitute a bar or defense be required to segregate it from its general accounts. Tenant shall not be entitled to any interest on the Security Deposit. If Landlord transfers the Building during the Lease Term, Landlord shall pay the Security Deposit to any subsequent owner in conformity with the provisions of Landlord’s remedies under this Lease or at law. In such Section 1950.7 of the California Civil Code and/or any successor statute, in which event and upon written notice the transferring landlord shall be released from Landlord to Tenant specifying all liability for the amount return of the Security Deposit so utilized Deposit. Tenant specifically grants to Landlord (and hereby waives the provisions of California Civil Code Section 1950.7 to the contrary) a period of sixty days following a surrender of the Leased Premises by Tenant to Landlord and the particular purpose for within which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit (less permitted deductions) to Tenant, it being agreed between Landlord and Tenant that sixty days is a reasonable period of time within which to inspect the amount specified in Paragraph 2.dLeased Premises, make required repairs, receive and verify workmen’s ▇▇▇▇▇▇▇▇ therefore, and prepare a final accounting with respect to such deposit. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in In no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below)the Security Deposit, nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)considered prepaid rent.

Security Deposit. Upon Within 10 banking days after execution of this LeaseSublease, Tenant Subtenant shall pay to Landlord deposit with Sublandlord a security deposit (“Security Deposit”) in the amount of $175,840.00 (the “Deposit Amount”). The Security Deposit specified in Paragraph 2.d. above shall be held by Sublandlord as security for TenantSubtenant’s performance of all of Tenant’s covenants and its obligations under this Lease; providedSublease and may be applied, howeverat Sublandlord’s sole discretion, against any obligation incurred by Subtenant in connection with this Sublease that is not timely paid or performed (as the case may be), including the payment of Basic Rent and Additional Rent, the repair of any damage that is Subtenant’s responsibility, and all other obligations of Subtenant under this Sublease. If Sublandlord debits the Security Deposit is not an advance rent deposit or an advance payment of any other kindDeposit, nor a measure of Landlord’s damages upon Tenant’s default. Landlord Sublandlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use notify Subtenant of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event occurrence and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord debit, and Subtenant shall promptly pay to Sublandlord the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient necessary to return restore the Security Deposit to the amount specified full Deposit Amount. A. Subtenant may elect to provide all or any portion of the Security Deposit in Paragraph 2.dthe form of cash or in the form of a letter of credit (the “LOC”). Tenant’s failure If Subtenant elects to make such payment satisfy all or any portion of the Security Deposit with cash, Sublandlord, Sublandlord is not required to keep the Security Deposit separate from its general funds and Subtenant is not entitled to interest on the Security Deposit. B. If Subtenant elects to satisfy all or any portion of the Security Deposit with an LOC, the LOC will be an irrevocable and unconditional standby letter of credit, issued by a financial institution (other than Subtenant) satisfactory to Sublandlord in its discretion, with a term of at least one year, drawable by Sublandlord upon presentation, and substantially in the form of Exhibit L attached to the Prime Lease (except that the references to Landlord as beneficiary and Sublandlord as applicant shall be changed to Sublandlord as beneficiary and Subtenant as applicant). Sublandlord may draw upon the LOC under the same terms and conditions as Sublandlord may apply a cash security deposit. In addition, Sublandlord may draw upon the LOC if Subtenant fails to deliver to Sublandlord no later than 30 days prior to the expiration date of the existing LOC a renewal or extension of the LOC for a term of not less than one year. Notwithstanding the foregoing, and unless a renewal or extension of the LOC has not been delivered to Sublandlord 30 days prior to the expiration date of the existing LOC, Sublandlord will give Subtenant 5 business days prior written notice before drawing upon the LOC. C. If Subtenant performs each of its obligations under this Sublease, then the Security Deposit, or any then-remaining balance thereof, shall be returned to Subtenant (or the LOC cancelled, as the case may be) within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the later of (i) the expiration of the Sublease Term or termination of this LeaseSublease, Landlord shall return and (ii) the date on which Subtenant surrenders the Subleased Premises to Tenant Sublandlord in the Security Deposit or the balance thereof then held condition required by Landlord after application this Sublease (unless Subtenant retains possession of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest Subleased Premises pursuant to the Recognition Agreement (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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 in which case clause (including, without limitation, damages recoverable under California Civil Code Section 1951.2i) will apply).

Security Deposit. Upon Concurrently with its execution of this Lease, Tenant shall pay deliver to Landlord the amount identified in the Basic Lease Information as the Security Deposit specified in Paragraph 2.d. above to be held by Landlord without liability for interest (unless required by Law) as security for Tenant’s the performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the obligations. The Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor Rent or a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect theretodamages. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof from time to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereundertime, it being understood that any use of the Security Deposit shall not constitute a bar or defense without prejudice to any of Landlord’s remedies under other remedy provided in this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount by Law, use all or a portion of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the extent necessary to satisfy past due Rent or to satisfy Tenant’s Default under this Lease or to reimburse or compensate Landlord for any liability, expense, loss or damage which Landlord may suffer or incur and has a right of recovery for the same from Tenant. If Landlord so uses or applies all or any portion of the Security Deposit, then within fifteen (15) days after demand therefore, Tenant shall deposit cash with Landlord in an amount specified in Paragraph 2.d. sufficient to restore the deposit to the full amount thereof, and Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice do so shall constitute an Event a Default under this Lease. If there are no payments to be made from the Security Deposit as set out in this paragraph, or if there is any balance of Default. Within thirty (30) days the Security Deposit remaining after all payments have been made, the Security Deposit, or such balance thereof remaining, will be refunded to the Tenant after the expiration or earlier termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections benefit of the provisions of California Civil Code Section 1950.7. In the event of an act ▇▇▇▇▇▇▇▇.v9 of bankruptcy by or insolvency of Tenant or the appointment of a receiver for Tenant or general assignment for the benefit of ▇▇▇▇▇▇’s creditors, andthe Security Deposit shall be deemed immediately assigned to Landlord. Except in the event of a current unresolved Tenant Default, without limitation at the end of the scope of such waiver, acknowledges that Term the Landlord may use all or any part of will deliver the Security Deposit to compensate Landlord for damages resulting from termination Tenant within forty five (45) days following the Landlord’s acceptance of the surrender of the Premises upon the expiration date of this Lease delivered by Tenant in accordance with the surrender conditions set forth herein. Provided that Tenant is not in default under the terms and conditions of this Lease, Tenant will have the tenancy created hereunder right to substitute the cash Security Deposit described in the Basic Lease Information for a clean, irrevocable, unconditional and transferable standby letter of credit in the same amount (including“Letter of Credit”) issued by and drawn upon a reputable commercial bank or financial institution (the “Issuing Bank”), which Letter of Credit shall have a term of not less than one year, and, be in the amount of $188,023.50. If in accordance with the terms of Section 4.1(a) above, Tenant has not provided the Letter of Credit to Landlord with the delivery of the Lease and has delivered the Security Deposit to the Landlord then upon delivery to Landlord of an approved original Letter of Credit the Landlord shall deliver to Tenant the cash Security Deposit within ten (10) business days of receipt of the approved original Letter of Credit. The Letter of Credit shall provide that: (i) the Issuing Bank shall pay to Landlord an amount up to the face amount of the Letter of Credit upon presentation of a signed draw down demand form acceptable to Issuing Bank delivered either by electronic mail or facsimile to cure a default by Tenant after notice of default from Landlord and certification from Landlord that a default has occurred under the Lease and is continuing; (ii) the Letter of Credit shall be automatically renewed, without limitationamendment, damages recoverable under California Civil Code for consecutive periods of one year each during the Term of this Lease not to extend beyond the Expiration Date; (iii) the Issuing Bank will retain the right to deliver written notice (the “Non-Renewal Notice”) to Landlord not less than thirty (30) days preceding the then expiration date of the Letter of Credit, that it elects not to renew such Letter of Credit and in the event that the Issuing Bank sends a Non-Renewal Notice, Tenant shall have thirty (30) days to provide Landlord with a substitute Letter of Credit acceptable to Landlord in the commercially reasonable exercise of its judgment or to post the cash Security Deposit. In the event that ▇▇▇▇▇▇ fails within said thirty (30) day period to provide Landlord with a substitute Letter of Credit or cash Security Deposit, Landlord shall have the right to draw the full amount of the Letter of Credit (which moneys shall be held by Landlord as a cash Security Deposit pursuant to the terms of this Section 1951.27).. If Landlord makes a draw upon the Letter of Credit then any balance of the drawn monies received by Landlord not applied to cure a default will be held by Landlord as Security Deposit for the remainder of the Term. If a draw upon the Letter of Credit is made by Landlord due to a default of Tenant the right to provide Landlord a Letter of Credit as alternative security to delivery of the cash Security Deposit shall be suspended for the remainder of the Term unless, in Landlord’s sole and absolute discretion without any obligation to approve the same, ▇▇▇▇▇▇▇▇ agrees to permit Tenant to provide a replacement clean, irrevocable, unconditional and transferable standby letter of credit upon the terms described in this Section 7 with any other commercially reasonable conditions required by Landlord. Tenant acknowledges and agrees that the Letter of Credit shall be at all times a third party obligation of the Issuing Bank to the Landlord and independent of the terms of this Lease. The terms of this Section 7 shall expressly survive the expiration or earlier termination of the Lease. 60447235.v9

Security Deposit. Upon execution To the extent that the unapplied amount of this Leasethe security deposit held by Existing Landlord under the Existing Lease (such amount, Tenant shall pay to Landlord the “Original Security Deposit”) is less than the amount of the Security Deposit specified in Paragraph 2.d. above as security the Basic Provisions, on the Commencement Date, Tenant shall deposit with Landlord the difference between such amount of the Security Deposit and the Original Security Deposit, which, when combined with the Original Security Deposit shall be the Security Deposit for Tenant’s the performance by Tenant of all of Tenant’s covenants and obligations its obligation under this Lease; provided. Tenant agrees that if Tenant defaults in its performance of this Lease, howeveror in the payment of any sums owing to Landlord, that or in the Security Deposit is not an advance rent deposit or an advance payment of any other kindsums required from Tenant under the provisions of this Lease, nor a measure of Landlord’s damages upon Tenant’s default. then Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (may, but shall not be required obligated to) , use the Security Deposit Deposit, or any portion thereof thereof, to cure any Event of Default such default or to compensate Landlord for any damage damage, including Rent that is unpaid either before or after the termination of this Lease, late charges and costs of enforcement, and any other damages suffered by Landlord incurs as a result before or after the termination of this Lease which Landlord is entitled to recover pursuant to the terms of this Lease, and which are sustained by Landlord resulting from Tenant’s failure to perform 's default or nonpayment. If Landlord does so apply any of its covenants or obligations hereunder, it being understood that any use portion of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was appliedDeposit, Tenant shall immediately deposit with pay Landlord an amount sufficient cash to return restore the Security Deposit to the amount specified of the then current Minimum Monthly Rent. If Tenant is not in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after default at the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application unexpended portion of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for within sixty (60) days following expiration or termination of this Lease, without interest. Landlord's obligations with respect to the Security Deposit unless shall be those of debtor, and only not of a trustee, and Landlord shall be entitled to commingle the Security Deposit with the general funds of Landlord. With the understanding that it is the parties’ intent that the terms of this Lease control their obligations regarding the Security Deposit, to the maximum extent permitted by applicable law (it being the specific intent of the parties that, to the extent applicable law permits Landlord to reserve greater rights with respect to the Security Deposit under the terms of this Lease than would otherwise be available under applicable law, Landlord be allowed to reserve such holder or purchaser shall have actually received the same. greater rights), Tenant hereby unconditionally waives (a) any and irrevocably waives the benefits and protections all terms of applicable law, including, without limitation, California Civil Code Section 1950.7, and, without limitation of applicable to security deposits in the scope of such waiver, acknowledges that Landlord may use all or any part of commercial context to the Security Deposit to compensate Landlord for damages resulting from termination extent inconsistent with the terms of this Lease and the tenancy created hereunder (Lease, including, without limitation, damages recoverable under California Civil Code Section 1951.2any laws that provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant or to clean the Premises (“Security Deposit Laws”), and (b) to the extent inconsistent with the terms of this Lease, any and all rights, duties and obligations either Party may now or, in the future, will have under, relating to or arising from the Security Deposit Laws.

Security Deposit. Upon execution 40.01. Tenant shall deposit with Landlord on the signing of this Lease the Security Deposit, as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this Lease, . Tenant shall pay to Landlord agrees that in the Security Deposit specified event Tenant has defaulted in Paragraph 2.d. above as security for Tenant’s the performance of all any of Tenant’s covenants and its obligations under this Lease; provided, however, that including the Security Deposit is not an advance rent deposit or an advance payment of any other kinditem of rental, nor and whether or not the transmittal of a measure Notice of Landlord’s damages upon Tenant’s default by Landlord is barred by applicable law, Landlord may use, apply or retain the whole or any part of the Security Deposit, to the extent required for the payment of any basic annual rent or additional rent as to which Tenant is in default. , or for any sum that Landlord shall not may expend or may be required to segregate expend by reason of the Security Deposit from its default (including any damages or deficiency accrued before or after summary proceedings or other funds and no interest shall accrue re-entry by Landlord). If Landlord applies or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or retains any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use all of the Security Deposit Deposit, Tenant shall not constitute a bar forthwith restore the amount so applied or defense to any of Landlord’s remedies under this Lease or retained by delivering additional cash so that, at law. In such event and upon written notice from Landlord to Tenant specifying all times, the amount of the Security Deposit so utilized shall be the amount set forth on the Reference Page. Provided there is no uncured default, any balance of the Security Deposit held by Landlord and not used, applied or retained by Landlord as above provided shall be returned to Tenant after the particular purpose for which such amount was appliedExpiration Date and after delivery of possession of the entire demised premises to Landlord in accordance with the terms of this Lease. Tenant shall not be entitled to any interest on the Security Deposit. 40.02. At Landlord’s sole option, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified give Landlord, upon its demand, a Letter(s) of Credit (as defined and further described in Paragraph 2.dthis Section). Tenant’s failure to make such payment to Landlord within five (5) days of After Landlord’s notice shall constitute an Event receipt from Tenant of Default. Within thirty (30the Letter(s) days after the expiration or termination of this LeaseCredit, if so requested by Landlord, Landlord shall return to Tenant the any cash Security Deposit or the balance thereof then held by Landlord after application as security under this Lease. “Letter of Credit” shall mean a clean irrevocable and unconditional standby letter of credit issued and drawn upon any commercial bank approved by Landlord having a net worth of at least One Billion U.S. Dollars and with offices for banking purposes in the continental United States of America (“Issuing Bank”). Tenant shall cause each Letter of Credit to have a term of not less than one year, be in form and content satisfactory to Landlord, be for the account of Landlord and be in the amount of the Security Deposit set forth in the Reference Page. Landlord, at its sole option, may at any time require Tenant to deliver more than one (1) (as permitted hereunder; provideddetermined by Landlord in its absolute discretion) Letter of Credit from different Issuing Banks, howevereach having a net worth of at least One Billion U.S. Dollars and each meeting the other requirements set forth in this Article 40 that an Issuing Bank must satisfy. Landlord, that in its sole judgment, shall determine the dollar amount of each Letter of Credit, but in no event shall any such return be construed as an admission by Landlord that Tenant has performed all the combined Letters of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for Credit exceed the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the sameDeposit. Tenant hereby unconditionally and irrevocably waives shall cause the benefits and protections Letter(s) of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit Credit 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).provide that:

Security Deposit. Upon execution of this Lease, Tenant shall pay to has deposited with Landlord the Security Deposit specified set forth in Paragraph 2.d. above the Basic Provisions as security for Tenant’s the full and faithful performance of every provision of this Lease to be performed by Tenant. If Tenant fails to pay Base Rent, Additional Rent or other charges due hereunder or otherwise defaults with respect to any provision of the Lease, Landlord may use, apply or retain all or any portion of the Security Deposit for the payment of any Base Rent, Additional Rent or other charge in default or for the payment of any other sum to which Landlord may become entitled by reason of Tenant’s covenants default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby. Tenant acknowledges and obligations under this Lease; provided, however, agrees that the Security Deposit is not an advance rent deposit or an advance payment of any other kindRent, nor a measure of or limit on the amount of Landlord’s damages upon in the event of any default by Tenant. If Landlord uses or applies all or any portion of the Security Deposit, Tenant shall within ten (10) days after written demand, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to the full amount stated above and Tenant’s defaultfailure to do so shall be a material breach of this Lease. Landlord shall not be required to segregate keep the Security Deposit separate from its other funds and no general accounts or to pay interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use on the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use Deposit. The balance of the Security Deposit after deducting any amounts applied by Landlord as provided above, shall not constitute a bar be returned, without payment of interest for its use, to Tenant (or defense to any of at Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was appliedoption, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. last assignee, if any, of Tenant’s failure to make such payment to Landlord interest hereunder) within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; providedlater of (i) the last day of the Term, however(ii) the date Tenant vacated the Premises, that in no event shall any such return be construed as an admission by Landlord that or (iii) the date Tenant has performed fulfilled all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to trust relationship is created between Landlord and Tenant for regarding the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)Deposit.

Security Deposit. Upon Within ten (10) business days after the parties’ execution of this LeaseSublease and receipt of Master Landlord’s consent hereto, Tenant Subtenant shall deposit with Sublandlord upon Subtenant’s execution hereof ($175,000.00) one hundred seventy five thousand dollars (“Security Deposit”) as security for Subtenant’s faithful performance of Subtenant’s obligations hereunder. If Subtenant fails to pay Rent or other charges due hereunder, or otherwise defaults with respect to Landlord any provision of this Sublease, in either case beyond applicable notice and cure periods, Sublandlord may use, apply or retain all or any portion of the Security Deposit specified for the payment of Rent or any other charge in Paragraph 2.d. above as security default or for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure sum to which Sublandlord may become obligated by reason of Landlord’s damages upon TenantSubtenant’s default, or to compensate Sublandlord for any loss or damage which Sublandlord may suffer thereby. Landlord If Sublandlord so uses or applies all or any portion of the Security Deposit, Subtenant shall within ten (10) days after written demand therefor deposit cash with Sublandlord in an amount sufficient to restore the Security Deposit to its full amount, and Subtenant’s failure to do so shall be a material breach of this Sublease. Sublandlord shall not be required to segregate keep the Security Deposit separate from its other funds general accounts and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at lawbear interest. In such event and upon written notice from Landlord to Tenant specifying At the amount expiration of the Security Deposit so utilized by Landlord Term hereof and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days following performance of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and Subtenant’s obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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 vacation of the Premises in accordance with the provisions hereof), the Security Deposit, or so much thereof as has not theretofore been applied by Sublandlord, shall be returned, without payment of interest or other incurment for its use to Subtenant (or at Sublandlord’s option, to the last assignee, if any, of Subtenant’s interest hereunder). No trust relationship is created herein between Sublandlord and Subtenant with respect to the Security Deposit. Any deposit under California Civil Code Section 1951.2)the Master Lease which may be returned by the Master Landlord shall be the property of Sublandlord.

Security Deposit. Upon execution of this Lease, Tenant shall pay to deposit with Landlord the Security Deposit specified in Paragraph 2.dthe amount set forth in Article 1. above The Security Deposit shall be held by Landlord as security for Tenant’s the full and faithful performance by Tenant of all of Tenant’s the terms, covenants and obligations under provisions of this Lease; providedLease during the term hereof. In no event shall Landlord be obligated to pay, howeveror Tenant is entitled to receive, that any interest or other earnings on the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s defaultsecurity deposit. Landlord shall not be required obligated to segregate hold the Security Deposit from its in trust or in a separate account but may freely commingle the security deposit with Landlord’s other funds funds. In the event Tenant fails to keep and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its the terms, covenants or obligations hereunderprovisions of this Lease, it being understood that any use of then Landlord, at Landlord’s option, may appropriate and apply the Security Deposit Deposit, or so much thereof as may be necessary to pay any Rent or other sums due hereunder for which Tenant shall not constitute a bar or defense to any be in default of Landlord’s remedies under this Lease or at lawpayment. In such event and Tenant, upon written notice from Landlord Landlord, immediately shall remit to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return restore this Security Deposit to the amount required to be maintained in accordance with this Article. Upon ▇▇▇▇▇▇’s full and complete performance and compliance with all of the terms, covenants and provisions of this Lease during the lease term, upon the expiration of the term and within thirty (30) days following ▇▇▇▇▇▇’s surrender of the Premises in accordance with the terms of this Lease, the Security Deposit shall be returned to Tenant. In the event of a sale of the Building, Landlord may deliver the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make purchaser, and upon such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Leasedelivery, Landlord shall return be discharged from any further liability with respect to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)Deposit.

Security Deposit. Upon (a) Simultaneously with the execution and delivery of this Lease, Tenant shall pay deliver to Landlord the Security Deposit specified in Paragraph 2.d. above as cash or immediately available funds. (b) The Security Deposit is security for Tenant’s the faithful performance and observance by Tenant of all the terms and conditions of Tenant’s covenants this Lease and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s defaultrent. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any If an Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Leaseoccurs, Landlord shall return to Tenant the Security Deposit may use, apply or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use retain all or any part of the Security Deposit to compensate the extent required for payment of any Base Rent or any other sum as to which Tenant is in default or for any sum which Landlord for damages resulting from termination may expend or may be required to expend by reason of this Lease the occurrence of an Event of Default, including, but not limited to, any damage or deficiency accrued before or after summary proceedings or other re-entry by Landlord, including the costs of such proceeding or re-entry and the tenancy created hereunder (further including, without limitation, damages recoverable under California Civil Code Section 1951.2)reasonable attorneys’ fees. If an Event of Default occurs, Landlord shall have the right to apply the Security Deposit, or any part thereof, as aforesaid, without additional notice and without prejudice to any other remedy or remedies which Landlord may have, or Landlord may pursue any other such remedy or remedies in lieu of applying the Security Deposit or any part thereof. No interest shall be payable on the Security Deposit and Landlord shall have the right to commingle the Security Deposit with other funds of Landlord. If Landlord applies the Security Deposit in whole or in part, Tenant shall immediately upon demand pay to Landlord the amount so applied to restore the Security Deposit to its original amount. In the event of a sale or other transfer of Landlord’s Property, or leasing of Landlord’s Property subject to Tenant’s tenancy hereunder, Landlord shall transfer the Security Deposit then remaining to the vendee or lessee, in which event Landlord shall thereupon be released from all liability for the return of such Security Deposit to Tenant; and Tenant shall look solely to the new landlord for the return of the Security Deposit then remaining. The holder of any mortgage on Landlord’s Property shall not be responsible to Tenant for the Security Deposit or its application or return unless the Security Deposit shall actually have been received by such holder. Tenant shall not assign or encumber or attempt to assign or encumber the Security Deposit, and Landlord shall not be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.

Security Deposit. Upon execution Within ten (10) days of this Leasethe Effective Date, Tenant shall deposit with Landlord the Security Deposit as set forth in Item 13 of the Summary of Basic Lease Terms as security for the full and faithful performance by Tenant of all Tenant’s obligations hereunder. No interest shall be 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 faithful performance of any of the terms hereof, then Landlord may either retain the Security Deposit as liquidated damages, or a portion thereof, for damages caused by Tenant beyond ordinary wear and tear, or Landlord may retain the same and apply it toward any damages sustained by Landlord, 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 Security Deposit specified in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; providedsum so applied, however, that which shall be added to the Security Deposit is not an advance rent deposit so that the same shall be restored to the amount first set forth above. In the event of bankruptcy or an advance payment of any other kinddebtor-creditor proceedings, nor a measure of Landlord’s damages upon either voluntarily or involuntarily instituted by or against Tenant’s default. Landlord shall not be required to segregate , the Security Deposit from its shall be deemed to be applied in the following order: to actual damages caused by Tenant beyond ordinary wear and tear, obligations and other funds charges, including any damages sustained by Landlord, other than unpaid Rent, due to Landlord for all periods prior to the filing of such proceedings; to accrued and no interest unpaid Rent prior to the filing of such proceeding, and thereafter to actual damages, obligations, other charges and damages sustained by Landlord and Rent due the Landlord for all periods subsequent to such filing. In the event of a sale of the Land and the Building, Landlord shall accrue or be payable transfer the Security Deposit to the buyer, and shall confirm the same to Tenant in writing, after which transfer and written confirmation Landlord shall have no further obligation regarding the Security Deposit. Notwithstanding the foregoing, and so long as Tenant is not in default of this 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 first anniversary of the Commencement Date and also upon the date that is eighteen (18) months after the Commencement Date. The remaining balance of the Security Deposit shall be held until the expiration of the Lease Term. If Tenant fully and faithfully complies with respect thereto. Landlord may (but shall not be required to) use all of the terms hereof, the Security Deposit or any portion balance thereof shall be returned to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use Tenant within thirty (30) days after expiration of the Security Deposit shall not constitute a bar Lease Term or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to final day Tenant occupies the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)Premises.

Security Deposit. Upon execution The Landlord herewith acknowledges receipt of the Security Deposit in the amount stated in Section 1 hereof, which it is to retain as security for the faithful performance of all covenants, conditions and agreements of this Lease, Tenant . Landlord shall pay have the right (but not the obligation) to Landlord apply the Security Deposit specified upon Rent or other obligations in Paragraph 2.d. above as security arrears or upon damages for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any the said covenants, conditions and agreements. Any such application by Landlord shall be credited to such obligations of its covenants or obligations hereunderTenant, it being understood that any use of the Security Deposit but shall not constitute a bar or defense to cure of Tenant’s Default barring Landlord from pursuing any of Landlord’s other remedies available under this Lease or at law. In Upon such event and application of the Security Deposit, Tenant shall be obligated to replace such amounts so applied within ten (10) days after demand therefor by Landlord and, upon written notice from Landlord Landlord’s request, increase the amount of such Security Deposit to Tenant specifying an amount not greater than two hundred fifty (250%) percent of the original amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit Deposit. Landlord’s right to the amount specified possession of the Demised Premises for non-payment of Rent or for any other reason shall not in Paragraph 2.dany event be affected by reason of the fact that the Landlord holds or applies this Security Deposit. Upon the expiration of the Lease Term, surrender of possession of the Demised Premises by Tenant and Tenant’s failure to make such payment to Landlord within five (5) days full and complete performance of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after all the expiration or termination terms and conditions of this Lease, Landlord shall return to Tenant the Security Deposit or shall be returned to the balance thereof then held by Tenant without interest. Landlord after application shall have the right to apply such Security Deposit to any liquidated damages calculated pursuant to Section 21.2 and any undisbursed portion of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return may be construed as an admission retained by Landlord that and applied to any obligations of Tenant has performed all or damages incurred by reason of its covenants and obligations hereunderTenant’s subsequent Default or breach. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, The Landlord shall not be responsible obliged to Tenant for keep the Security Deposit unless and only to the extent such holder as a separate fund or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord pay interest thereon but may use all or any part of commingle 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)with its own funds.

Security Deposit. Upon The Security Deposit (as defined above) shall be paid by Licensee to JTC on the date of Licensee’s execution of this Lease, Tenant Agreement and shall pay to Landlord be held by JTC for the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s Licensee's covenants and obligations under this Lease; provided, however, that the Agreement. The Security Deposit is shall not an advance rent deposit or be considered an advance payment of any Monthly License Fee or other kind, nor charge or a measure of Landlord’s damages upon Tenant’s defaultJTC's damage in case of default by Licensee. Landlord JTC shall not be required obligated to segregate place the Security Deposit from its in an interest bearing account, but instead may commingle the Security Deposit with other funds and no interest of JTC, nor shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not JTC be required to) to pay interest thereon. Upon the occurrence of any default by Licensee or breach by Licensee of Licensee's covenants under this Agreement, JTC may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrears of payments of the Monthly License Fee or any portion thereof other sum due to cure any Event of Default JTC hereunder, or to compensate Landlord for repair any damage Landlord incurs or injury, and pay any expense or liability incurred by JTC as a result of Tenant’s failure to perform the default or breach of covenant, and any of its covenants or obligations hereunder, it being understood that any use remaining balance of the Security Deposit shall not constitute a bar be returned by JTC to Licensee upon termination of this Agreement as provided below. If any portion of the Security Deposit is so used or defense to any of Landlord’s remedies under this Lease or at law. In such event and applied, Licensee shall upon ten (10) days written notice from Landlord JTC, deposit with JTC an amount sufficient to Tenant specifying restore the Security Deposit to its original amount. In the event that JTC shall transfer all or any part of its interest in the Master Premises, JTC may transfer the Security Deposit to such transferee and shall thereupon be released by Licensee from any and all liability for the return of the Security Deposit and Licensee agrees thereafter to look only to such transferee for the return of the Security Deposit. Licensee shall not assign or encumber its interest in the Security Deposit, and JTC shall not be bound by any attempted assignment or encumbrance of Licensee's interest therein. The Security Deposit (or any lesser amount of the Security Deposit so utilized by Landlord and the particular purpose for to which such amount was appliedLicensee is entitled, Tenant shall immediately deposit with Landlord an amount sufficient if applicable) will be returned to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord Licensee within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after JTC’s final walk-through inspection of the Premises upon the expiration or earlier termination of this LeaseAgreement, Landlord shall return to Tenant provided that Licensee has vacated the Security Deposit or Building in strict compliance with the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants terms and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)conditions hereof.

Security Deposit. Upon execution of this Lease, Tenant shall pay to Landlord the The Security Deposit specified in Paragraph 2.d. above shall be held by Landlord as security for Tenant’s the performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the . The Security Deposit is not an advance rent rental deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon in case of Tenant’s default. Upon each occurrence of an Event of Default (hereinafter defined), Landlord may use all or part of the Security Deposit to pay delinquent payments due under this Lease, and the cost of any damage, injury, expense or liability caused by such Event of Default, without prejudice to any other remedy provided herein or provided by law. Tenant shall pay Landlord on demand the amount that will restore the Security Deposit to its original amount. Any such restoration payment which is not paid within ten days after Landlord’s written demand therefor shall bear interest from the date of such written demand until paid at the lesser of fifteen percent or the maximum lawful rate of interest. The parties agree that such interest represents a fair and reasonable estimate of the costs that Landlord will incur by reason of such late payment by Tenant. The provision for such interest shall be in addition to all of Landlord’s other rights and remedies hereunder or at law and shall not be required to segregate construed as a penalty. Landlord’s obligation respecting the Security Deposit from its other funds and is that of a debtor, not a trustee; no interest shall accrue or be payable to thereon. If Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any all of its covenants or obligations hereunderunder this Lease and return the Premises to Landlord at the end of the Lease Term in the condition required upon surrender pursuant to the terms of this Lease, it being understood that any use Landlord shall return all of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event remaining after deducting all damages, charges and upon written notice from Landlord other amounts permitted by law to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration end of the Lease Term. Landlord and Tenant agree that such deductions shall include all damages and losses that Landlord has suffered or termination that Landlord reasonably estimates that it will suffer as a result of any breach of this Lease, Lease by Tenant. If Landlord transfers its interest in the Premises Landlord shall return to Tenant assign the Security Deposit or to the balance thereof then held by Landlord after application transferee and, upon such transfer and the delivery to Tenant of an acknowledgement of the transferee’s responsibility for the Security Deposit as permitted hereunder; providedprovided by law, however, that in Landlord thereafter shall have no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant further liability for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part return 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)Deposit.

Security Deposit. Upon execution of this LeaseIn addition, Tenant shall pay ▇▇▇▇▇▇ agrees to deposit with Landlord on or before the Lease Date the Security Deposit specified in Paragraph 2.d. above Deposit, which sum shall be held by Landlord, without obligation for interest, as security for Tenant’s the performance of all of Tenant’s covenants and obligations under this Lease; provided, however, it being expressly understood and agreed that the such Security Deposit is not an advance rent rental deposit or an advance payment of any other kind, nor a measure of Landlord’s damages in case of an Event of Default or other breach by Tenant hereunder. Upon the occurrence of any Event of Default (as defined below in this Lease) by Tenant, Landlord may, from time to time, without prejudice to any other remedy provided herein or provided by law, use such fund to the extent necessary to make good any arrears of rent or other payments due Landlord hereunder, and any other damage, injury, expense or liability caused by such Event of Default; and Tenant shall pay to Landlord, upon demand, as Additional Rent, the amount so applied in order to restore the Security Deposit to its original amount. Landlord may commingle the Security Deposit with the Landlord’s own funds and use such funds as Landlord determines. In no event shall Landlord be required to hold such funds in escrow or trust for Tenant’s default. Landlord shall not be required obligated to segregate pay interest to Tenant on account of the Security Deposit. In the event of a transfer by Landlord of Landlord’s interest in the Premises, Landlord or the property manager of Landlord may deliver the remaining balance of any Security Deposit to the transferee of Landlord’s interest and Landlord and such property manager shall thereupon be discharged from its other funds and no interest shall accrue or be payable any further liability to Tenant with respect theretoto such Security Deposit. Landlord may (but shall not be required to) use Although the Security Deposit or shall be deemed the property of Landlord, any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use remaining balance of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from be returned by Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which at such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days time after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Landlord for damages resulting from earlier termination of this Lease and the tenancy created hereunder (that all of Tenant’s obligations under this Lease have been fulfilled, including, without limitationbut not limited to, damages recoverable under California Civil Code the provisions of Section 1951.227 hereof. The Letter of Credit shall be governed pursuant to the terms of Exhibit F attached hereto until such sums are drawn upon whereupon such proceeds shall be governed by the terms of this Section 3(B).. Landlord DCB 2 Tenant D.A.

Security Deposit. Upon execution Prior to the Commencement Date and prior to the start of any construction or alterations, Tenant shall deposit with the Authority the Security Deposit described in Section 1.1 as security for the full and faithful performance of every provision of this Lease to be performed by Tenant. If Tenant defaults with respect to any provision of this Lease, Tenant shall pay including but not limited to, the provisions relating to Landlord the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kindRent or Additional Rent, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue Authority may use, apply or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use retain all or any part of the Security Deposit for the payment of any Rent, Additional Rent or any other sum in default, or for the payment of any other amount which the Authority may spend or may become obligated to spend by reason of Tenant’s default or to compensate Landlord the Authority for any other loss, cost or damage which the Authority may suffer by reason of Tenant’s default. Such application shall not preclude the Authority from recovering greater damages resulting if the same can be established. If any portion of the Security Deposit is so used or applied, Tenant shall, within thirty (30) days after written demand therefor, deposit cash with the Authority in an amount sufficient to restore the Security Deposit to the amount required under this Lease. The Authority shall not, unless otherwise required by law, have any obligation to pay interest on the Security Deposit or keep the Security Deposit separate from termination its general funds. 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 the Authority’s option, to the last transferee of Tenant’s interest hereunder) within a reasonable time after both the expiration or earlier termination of the Term and Tenant’s delivery of the tenancy created hereunder (includingPremises to the Authority in compliance with the requirements of Section 3.4, without limitationprovided, damages recoverable however, that the Authority may retain the Security Deposit until such time as any amount due from Tenant under California Civil Code Section 1951.2)this Lease has been determined and paid in full. Tenant shall not assign nor encumber its contingent rights in the Security Deposit separate from this Lease, and neither shall the Authority nor its successors or assigns be bound by any such assignment or encumbrance. In the event of an adjustment in the Base Rent Rate during the Term, Tenant agrees that the Security Deposit required to be deposited by Tenant hereunder, shall be adjusted to reflect such change in the Base Rent Rate. Tenant shall promptly deposit with the Authority the amount of the adjustment to the Security Deposit on or before the 1st day of the month following such adjustment in the Base Rent Rate.

Security Deposit. Upon execution of this Lease, Tenant shall pay to Landlord the The Security Deposit specified in Paragraph 2.d. above shall be held by Landlord as security for Tenant’s the performance of all of Tenant’s covenants and 's obligations under this Lease; provided, however, that the . The Security Deposit is not an advance rent rental deposit or an advance payment of any other kind, nor a measure of Landlord’s 's damages upon in case of Tenant’s 's default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder Upon each occurrence of a Superior Interest (as defined in Paragraph 21 below)Default, nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate pay delinquent payments due under this Lease, and the cost of any damage, injury, expense or liability caused by such Default, without prejudice to any other remedy provided herein or provided by law. Upon any such use of all or any portion of the Security Deposit, Tenant shall pay Landlord on demand the amount that will restore the Security Deposit to its original amount. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for damages resulting periods prior to the filing of such proceedings. Landlord's obligation respecting the Security Deposit is that of a debtor, not a trustee; no interest shall accrue thereon. The Security Deposit shall be the property of Landlord, but shall be paid to Tenant when Tenant's obligations under this Lease have been completely fulfilled. Landlord shall be released from termination any obligation with respect to the Security Deposit upon transfer of this Lease and the tenancy created hereunder Premises to a person or entity assuming Landlord's obligations under this Section 6. Tenant hereby waives the provisions of any law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant, as provided herein. 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 (includingor, without limitationat Landlord's option, damages recoverable under California Civil Code Section 1951.2)to the last assignee of Tenant's interest hereunder) within 90 days after the expiration or earlier termination of this Lease.

Security Deposit. Upon execution The Security Deposit paid herein represents a security for the faithful performance of the Lease Agreement by the Tenants. At the expiration or termination of the Lease, said Security Deposit will be applied to any damages suffered by the Landlord as result of the Tenant’s occupancy, including, without limitation, required professional cleaning, professional carpet cleaning, and pest control as this was done prior to Tenants taking occupancy. Professional cleaning, carpet cleaning and pest control will be deducted if proof is not shown by Tenant of having services done on move out. The security deposit shall never be construed or intended to be applied as rent, but may be applied against rent and against late charges in the event of a default by Tenants in the payment of said rent or late charges to the Landlord. The Tenants will forfeit the security deposit held by Landlord to the Landlord in the event of any default or breach of this Leaselease. Landlord reserves the right to seek additional damages if they exceed the above amounts. Tenant acknowledges that the premises were clean and in good repair to his/her satisfaction at beginning of his/her occupancy. Exceptions must be recorded on the “Move-in Condition of the House” form. Tenants have fifteen (15) days from the date of moving in to complete it, copy it and mail it to Landlord, otherwise Tenants agree to the Landlord’s description of Premises. Failure to notify Landlord in writing will be construed as evidence of Premises being fully acceptable. The house should be in Move-in Condition at the end of the Lease term. Any refund of security deposit will be by one check. Refund to any Tenant is a refund to all Tenants. Tenants agree to allow Landlord to co-mingle Security Deposit with Landlord’s personal funds in a no interest bearing account at the ▇▇▇▇▇ Fargo Bank in Gainesville, Florida. The Landlord shall pay mail said security deposit within Fifteen (15) days to the forwarding address of Tenant, or mail said party written notice by certified mail of the landlord’s intention to impose a claim against the deposit as required by Statue 83.49(3), Florida Statutes within thirty (30) days. If Landlord fails to give notice within the thirty (30) day period, she forfeits her right to impose a claim upon the Security Deposit specified in Paragraph 2.dDeposit. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; providedUnless the Tenants object, howeverby certified mail, that to the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure imposition of Landlord’s claim or the amount thereof within 15 days after receipt of the Landlord’s claim for damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying then deduct the amount of her claim and shall remit the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return balance of the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord Tenants within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) 30 days after the expiration or termination day of this Lease, Landlord shall return Tenants receipt of the notice of intention to Tenant impose a claim for damages. The Tenants will forfeit the Security Deposit or the balance thereof then security deposit held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder Landlord in the event of any default or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Landlord for damages resulting from termination breach of this Lease and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)lease.

Security Deposit. Upon Concurrently with Tenant’s execution of this Lease, Tenant shall pay to deposit with Landlord a security deposit (“Security Deposit”) in the amount set forth in Paragraph 1.10 above. The Security Deposit specified in Paragraph 2.d. above shall be held by Landlord as security for the faithful performance by Tenant of each and every term, covenant, or condition of this Lease applicable to Tenant’s performance , and not as prepayment of all Rent. If Tenant shall at any time fail to keep or perform any term, covenant or condition of this Lease applicable to Tenant’s covenants and obligations under this Lease; provided, howeverincluding without limitation, that the Security Deposit is not an advance rent deposit or an advance payment of any other kindRentals or those provisions requiring Tenant to repair damage to the Premises caused by Tenant or to surrender the Premises in the condition required pursuant to Paragraph 35 below, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (may, but shall not be required obligated to) use the Security Deposit , and without waiving or releasing Tenant from any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies obligation under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant use, apply or retain the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all whole or any part of the Security Deposit reasonably necessary for the payment of any amount which Landlord may spend by reason of Tenant’s default or as necessary to compensate Landlord for damages resulting from any loss or damage which Landlord may suffer by reason of Tenant’s default, including without limitation loss of future rents due under this Lease upon termination of this Lease due to a Default by Tenant and the tenancy created hereunder (including, without limitation, other damages recoverable under California Civil Code Section 1951.2). Tenant hereby waives California Civil Code Section 1950.7, or any similar law now or hereafter in effect which may have the effect of limiting the circumstances under which Landlord would be allowed to use or apply the Security Deposit or amount that could be so used or applied, or imposing a deadline for the return of the Security Deposit. In the event Landlord uses or applies any portion of the Security Deposit, Tenant shall, within five (5) business days after written demand by Landlord, remit to Landlord sufficient funds to restore any Security Deposit to its original sum. Failure by Tenant to so remit funds shall be a Default by Tenant. Should Tenant comply with all of the terms, covenants and conditions of this Lease applicable to Tenant, the balance of the Security Deposit shall be returned to Tenant within thirty (30) days after Lease Termination and surrender of the Premises by Tenant.

Security Deposit. Upon On execution of this Lease, Tenant shall pay to deposit with Landlord the sum set forth in the Basic Lease Information (the “Security Deposit specified Deposit”), in Paragraph 2.d. above cash, as security for Tenant’s the performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required have no obligation to) use the Security Deposit or any portion thereof to cure any Event of Default under this Lease or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or Tenant’s obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with pay to Landlord an amount sufficient to return replenish the Security Deposit to the amount specified sum initially deposited with Landlord. If Tenant is not in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after default at the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of and not applied as provided above. Landlord may commingle the Security Deposit as permitted hereunder; providedwith Landlord’s general and other funds, however, that in no event and Landlord shall any such return not be construed as an admission by Landlord that required to pay interest on the Security Deposit. Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial shall not assign or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for encumber the Security Deposit unless without the consent of Landlord; any attempt to do so shall be void and only to not binding on Landlord. If Landlord disposes of its interest in the extent such holder Premises, Landlord shall deliver or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of credit the Security Deposit to compensate Landlord for damages resulting from termination Landlord’s successor in interest and thereupon be relieved of all further responsibility with respect to the Security Deposit. Tenant waives all provisions of law now in force or that become in force after the date of execution of this Lease and Lease, that provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the tenancy created hereunder (includingpayment of rent, without limitationto repair damage caused by Tenant, damages recoverable under California Civil Code Section 1951.2)or to clean the Premises.

Security Deposit. Upon execution of this Lease, (a) Tenant shall pay Landlord upon execution and delivery hereof by Tenant the amount of $ (the “Security Deposit”) as security for the full and faithful performance of each of the terms hereof by Tenant. Landlord shall [not] be required to Landlord keep the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit separate from its other general funds and no Tenant shall [not] be entitled to interest shall accrue or be payable to Tenant with respect theretothereon. If an Event of Default occurs, Landlord may (may, but shall not be required to) use , use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any portion thereof other sum in default, or for the payment of any other amount which Landlord may spend or become obligated to cure any spend by reason of such Event of Default or to compensate Landlord for any other loss or damage which Landlord incurs as a result may suffer by reason of such Event of Default, including, without limitation, costs and attorneys’ fees incurred by Landlord to recover possession of the Premises. If any portion of the Security Deposit is so used or applied, Tenant shall, upon demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount and Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit do so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty . (30b) days after Tenant acknowledges that Landlord has the expiration right to transfer or termination of mortgage its interest in the Building and in this Lease, and Tenant agrees that in the event of any such transfer or mortgage, Landlord shall have the right to transfer or assign the Security Deposit to the transferee or mortgagee. Upon such transfer or assignment of the Security Deposit, Landlord shall be deemed released by Tenant from all liability or obligation for the return of the Security Deposit and Tenant shall look solely to such transferee or mortgagee for the return of the Security Deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit or the any balance thereof then held by Landlord after application shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within 30 days following the expiration of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all Term and surrender of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale possession of the Real Property or any portion thereof, shall be responsible Premises to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the sameLandlord. Tenant hereby unconditionally and irrevocably waives the benefits and protections all provisions of California Civil Code Section 1950.7law, andnow or hereafter in force, without limitation of the scope of such waiver, acknowledges which provide that Landlord may use all 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 any part of to clean the Security Deposit Premises; rather, Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for damages resulting from termination any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of this Lease and the tenancy created hereunder (includingTenant or any officer, without limitationemployee, damages recoverable under California Civil Code Section 1951.2)agent or invitee of Tenant.

Security Deposit. Upon execution SECTION 29.1 Tenant has deposited with Landlord the sum of One Million and 00/100 Dollars ($1,000,000.00) as security for the full and faithful performance of every provision of this Lease to be performed by Tenant (all or any part of such amount, the "Security Deposit"). If an Event of Default shall have occurred with respect to any provision of this Lease, Tenant shall pay including but not limited to the provisions relating to the payment of Fixed Rent and Additional Rent, Landlord the may use, apply or retain all or any part of this Security Deposit specified for the payment of any Fixed or Additional Rent or any other sum in Paragraph 2.d. above as security default or for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kindamount which Landlord may spend or become obligated to spend by reason of such Event of Default, nor or to compensate Landlord for any other loss, cost or damage which Landlord may suffer by reason of such Event of Default. Landlord shall give Tenant notice contemporaneously with such use or application of any portion of the Security Deposit. Tenant shall, within five (5) days after the giving of such notice, deposit with Landlord cash in an amount sufficient to restore the Security Deposit to the amount then required pursuant to the terms of this Article 29 (Tenant's obligation to make such payment shall be deemed a measure requirement that Tenant pay an item of Additional Rent) and Tenant's failure to do so shall be a breach of this Lease. Landlord shall not, unless otherwise required by Legal Requirements, pay interest to Tenant on the Security Deposit, and if Landlord is required to maintain the Security Deposit in an interest bearing account, Landlord will retain the maximum amount permitted under Legal Requirements as a bookkeeping and administrative charge. Tenant shall not assign or encumber any part of the Security Deposit, and no assignment or encumbrance by Tenant of all of any part of the Security Deposit shall be binding upon Landlord’s damages upon Tenant’s default, whether made prior to, during, or after the Term. Landlord shall not be required to segregate exhaust its remedies against Tenant or against the Security Deposit from its before having recourse to any other funds form of security held by Landlord and no interest shall accrue or be payable recourse by Landlord to Tenant with respect thereto. Landlord may (but any Security Deposit shall not affect any remedies of Landlord which are provided in this Lease or which are available to Landlord in law or in equity. If Tenant shall fully and faithfully perform every covenant and provision of this Lease to be required to) use performed and observed by Tenant, the Security Deposit or any portion balance thereof shall be returned to cure any Event Tenant reasonably promptly after the expiration or sooner termination (other than a termination pursuant to Article 16) of Default or the Term and Tenant's surrender to compensate Landlord of the Premises. In the event the Building is sold, Landlord shall transfer the Security Deposit to the new owner and Landlord shall thereupon be released by Tenant from all liability for any damage Landlord incurs as a result the return of Tenant’s failure said Security Deposit; and Tenant agrees to perform any of its covenants or obligations hereunder, it being understood that any use look to the new owner solely for the return of the Security Deposit Deposit. A lease of the entire Building shall be deemed a transfer within the meaning of the foregoing sentence. Landlord shall use reasonable efforts to notify or cause Tenant to be notified in the event of any transfer of the Building. SECTION 29.2 In lieu of a cash deposit, Tenant may deliver to Landlord a clean, irrevocable, non-documentary and unconditional Letter of Credit issued by and drawn upon any commercial bank, trust company, national banking association or savings and loan association having offices for banking purposes in the City of New York and which is a member of the New York Clearinghouse Association (the "Issuing Bank") and which (or the parent company of which) shall have outstanding unsecured, uninsured and unguaranteed indebtedness, or shall have issued a letter of credit or other credit facility that constitutes the primary security for any outstanding indebtedness (which is otherwise uninsured and unguaranteed), that is then rated, without regard to qualification of such rating by symbols such as "+" or "-" or numerical notation, "Aa" or better by Mood▇'▇ ▇▇▇estors Service and "AA" or better by Standard & Poor's Corporation, and has combined capital, surplus and undivided profits of not constitute less than $500,000,000.00, which Letter of Credit shall have a bar or defense term of not less than one year, be in form and content satisfactory to any Landlord (and substantially as shown on Exhibit D attached hereto and made a part hereof), be for the account of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying , be in the amount of the Security Deposit so utilized then required to be deposited hereunder, and be fully transferable by Landlord and to successor owners of the particular purpose Building without the payment of any fees or charges, it being agreed that if any such fees or charges shall be so imposed, then such fees or charges, shall be paid by Tenant. The Letter of Credit shall provide that it shall be deemed automatically renewed, without amendment, for which such amount was appliedconsecutive periods of one year each thereafter during the term of this Lease, Tenant shall immediately deposit with Landlord an amount sufficient to return unless the Security Deposit to Issuing Bank sends notice (the amount specified in Paragraph 2.d. Tenant’s failure to make such payment "Non-Renewal Notice") to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within by certified mail, return receipt requested, not less than thirty (30) days after next preceding the then expiration or termination date of the Letter of Credit that it elects not to have such Letter of Credit renewed. Additionally, the Letter of Credit shall provide that Landlord shall have the right, exercisable within twenty (20) days of its receipt of the Non-Renewal Notice, by sight draft on the Issuing Bank, to receive the monies represented by the existing Letter of Credit and to hold such proceeds pursuant to the terms of this Section 29.2 as a cash security pending the replacement of such Letter of Credit. If an Event of Default shall have occurred and be continuing with respect to any provision of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only including but not limited to the extent such holder or purchaser shall have actually received provisions relating to the same. Tenant hereby unconditionally payment of Fixed Rent and irrevocably waives the benefits and protections of California Civil Code Section 1950.7Additional Rent, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all apply or retain the whole or any part of the Security Deposit cash security so deposited or may notify the Issuing Bank and thereupon receive all the monies represented by the Letter of Credit and use, apply, or retain the whole or any part of such proceeds, as provided in this Section 29.2. Any portion of the cash proceeds of the Letter of Credit not so used or applied by Landlord in satisfaction of the obligations of Tenant as to compensate which such Event of Default shall have occurred shall be deposited by Landlord for damages resulting from termination of this Lease and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code retained in an interest-bearing account as provided in Section 1951.2)29.

Security Deposit. Upon execution of this Lease(A) Supplementing Article 34, Tenant shall pay to Landlord deliver as the Security Deposit specified an irrevocable letter of credit (the “Letter of Credit”) in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized issued by a New York City commercial bank acceptable to Landlord in its sole discretion, and in the form of the letter of credit annexed hereto as Exhibit G, to be held by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return as the Security Deposit in accordance with Article 34 and this Article 60. The Letter of Credit shall (i) initially expire not less than one (1) year from the Commencement Date or the date of issuance if delivered to Landlord thereafter, (ii) provide for automatic renewals for periods of not less than one (1) year, (iii) be presentable and payable in Manhattan, and (iv) have a final expiration date not less than three (3) months after the Expiration Date. In the event of a default by Tenant in the performance of any of the terms, provisions and conditions of this lease that is not cured within any applicable notice and/or cure period, Landlord shall be permitted to draw down any portion or the entire amount of the Letter of Credit and apply the proceeds or any part thereof in accordance with Article 34 of this lease and retain the balance for the Security Deposit. Landlord agrees to give an accounting to Tenant regarding the application of any such proceeds. Landlord shall also have the right to draw down any portion or the entire amount of the Letter of Credit in the event that Landlord receives notice that the date of expiry of the Letter of Credit will not be extended by the issuing bank and retain the proceeds for the Security Deposit. If Landlord shall have drawn against the Letter of Credit and applied all or any portion thereof, or if Landlord shall have applied any portion of any cash Security Deposit, then Tenant shall deposit with Landlord, upon demand, a sufficient amount of cash to bring the balance of the monies held by Landlord to the amount specified of the Security Deposit. In addition, at any time that Landlord is holding cash as the Security Deposit, Landlord may demand by notice to Tenant that Tenant provide a Letter of Credit in Paragraph 2.dthe total amount of the required Security Deposit (upon receipt of which Landlord will deliver the cash security to Tenant), and if Tenant fails to provide such Letter of Credit within twenty (20) days after such demand is given, Landlord may itself arrange for the issuance thereof, using the cash security it is then holding, and Tenant shall upon demand reimburse Landlord, as additional rent, for the amount by which the cost thereof, including fees and other reasonable costs of issuance, exceeds the cash security theretofore held by Landlord. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after comply with the expiration or termination provisions of this Lease, Article will entitle Landlord shall return to Tenant exercise all the Security Deposit or same remedies as are available in the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest default in the payment of Fixed Rent. (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of B) Tenant will be permitted to reduce the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part amount of the Security Deposit to compensate Landlord (x) $4,350,000.00 at such time as it has completed and fully paid for damages resulting from termination Phase I and has obtained all required permits and approvals therefor, the Meet-Me Room is at least partially (but significantly) operational, Tenant has expended not less than $4,000,000.00 of this Lease the Start-Up Cost and there are no liens filed with respect to such work; (y) $3,500,000.00 at such time as it has completed and fully paid for the entire construction and equipping of the Meet-Me Room and has obtained all required permits and approvals therefor, the Meet-Me Room is fully operational, and there are no liens filed with respect to such work; and (z) $2,500,000.00 on the date that is five (5) years after Tenant has satisfied the conditions listed in clause (y); provided in each such case that (i) as of the applicable date of reduction, no default had occurred on Tenant’s part that remained uncured after notice and the tenancy created hereunder expiration of the applicable grace period and (includingii) on such date no monetary or material non-monetary default exists. If (notwithstanding the provisions of Section (A) above requiring that the Security Deposit take the form of a letter of credit) the Security Deposit is in cash, without limitationLandlord will pay to Tenant the amount of the applicable reduction within fifteen (15) business days after Tenant’s request therefor. If the Security Deposit is a Letter of Credit, damages recoverable under California Civil Code Section 1951.2)Landlord will accept a Letter of Credit in the applicable reduced amount in exchange for the existing Letter of Credit, or will enter into an amendment of the Letter of Credit reducing the amount thereof to the applicable amount.

Security Deposit. Upon Concurrently with the execution of this Lease, Tenant has deposited with Landlord the Security Deposit set forth in Subparagraph l(m) above to secure the full and faithful performance by Tenant of Tenant's covenants and obligations hereunder. The Security Deposit shall not bear interest and shall not be considered an advance payment of rent or a measure of Landlord's damages in case of default by Tenant. Landlord shall have the right to commingle the Security Deposit with the other funds of Landlord. In the event Tenant defaults in the performance of any of the covenants and obligations to be performed by it hereunder, including, but not limited to the payment of all rent to be paid hereunder, Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages in rent or any sum as to which Tenant is in default and any other damage, injury, expense or liability caused to Landlord by such default, including any damages or deficiency in the reletting of the Premises, whether such damages or deficiency may accrue before or after termination of this Lease and including reasonable attorneys' fees incurred by Landlord in connection with such default or damage. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit specified in Paragraph 2.dto its original amount. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit If Tenant is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations then in default hereunder, it being understood that any use remaining balance of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from be returned by Landlord to Tenant specifying upon termination of this Lease and after delivery of the amount entire possession of the Premises to Landlord in accordance with this Lease. If Landlord assigns its interest in the Premises during the Term, Landlord may assign the Security Deposit to the assignee and, thereafter, Landlord shall have no further liability for the return of the Security Deposit, and Tenant agrees to look solely to the new landlord for the return of the Security Deposit. The provisions of the preceding sentence shall apply to each and every transfer or assignment made of the Security Deposit so utilized by to a new landlord. Tenant agrees that it will not assign or encumber or attempt to assign or encumber the moneys deposited herein as security, and that Landlord and the particular purpose for which its successors and assigns shall not be bound by any such amount was appliedactual or attempted assignment or encumbrance. Regardless of any assignment of this Lease by Tenant, Tenant shall immediately deposit with Landlord an amount sufficient to may return the Security Deposit to the amount specified original Tenant in Paragraph 2.d. Tenant’s failure to make such payment the absence of evidence satisfactory to Landlord within five (5) days to an assignment of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return right to Tenant receive the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)balance thereof.

Security Deposit. Upon At the time of the execution of this Leasehereof, Tenant shall deposit with the Landlord a security deposit (the "Security Deposit") in the amount of $135,000.00 in cash to be held by Landlord without interest during the term hereof, and any extensions, and for so long thereafter as Tenant is in possession of the Premises or has unsatisfied obligations hereunder to Landlord, which deposit the Landlord may apply from time to time against outstanding obligations of Tenant hereunder. Each time that the monthly installment of Base Rental shall increase, Tenant shall promptly pay Landlord as additional Security Deposit the amount of any increase in such Base Rental, said additional sums to be added to the Security Deposit held hereunder. Tenant shall have no right to require the Landlord to so apply said Security Deposit, nor shall Tenant be entitled to credit the same against rents or other sums payable hereunder. If and to the extent that Landlord makes such use of the Security Deposit, or any part thereof, the sum so applied by Landlord shall be restored to the Security Deposit by Tenant upon notice from Landlord, and failure to pay to Landlord the amount to be so restored (within the grace period applicable to rents hereunder) shall be a default hereunder giving rise to all of the Landlord's rights and remedies applicable to a default in the payment of rent. Any portion of said Security Deposit specified in Paragraph 2.d. above which has not been applied as security for Tenant’s performance aforesaid by Landlord shall be repaid by Landlord to Tenant after the end of the term and any extensions hereof, or as soon thereafter as all obligations of Tenant’s covenants and obligations Tenant under this Lease; provided, however, that Lease have been performed in full. Upon any conveyance by Landlord of its interest under this Lease the Security Deposit is not an advance rent deposit may be turned over by the Landlord to Landlord's grantee or an advance payment of transferee, and upon any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use such delivery of the Security Deposit shall not constitute a bar or defense Deposit, Tenant hereby releases Landlord herein named of any and all liability with respect to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord Deposit, its application and the particular purpose for which return, and Tenant agrees to look solely to such amount was appliedgrantee or transferee, Tenant and it is further understood that this provision shall immediately deposit with Landlord an amount sufficient also apply to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants subsequent grantees and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)transferees.

Security Deposit. Upon The Security Deposit shall be delivered to Landlord upon the execution of this LeaseLease by Tenant and may be held by Landlord in commingled accounts (without liability for interest, Tenant shall pay except to Landlord the Security Deposit specified in Paragraph 2.d. above extent required by Law) as security for Tenant’s the performance of all of Tenant’s covenants and obligations under this Lease; provided. Landlord may, howeverfrom time to time while an event of default after expiration of the applicable cure period remains uncured, that use all or a portion of the Security Deposit is not an advance rent deposit to cure any uncured default by Tenant, or an advance for the payment of any other kind, nor a measure amount that Landlord may spend or become obligated to spend by reason of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default , or to compensate Landlord for any other loss or damage that Landlord incurs as a result may suffer by reason of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of default. If Landlord uses the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was appliedDeposit, Tenant shall immediately deposit with Landlord an amount sufficient to return on demand restore the Security Deposit to the amount specified in Paragraph 2.dits original amount. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord Provided that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor Landlord shall return any purchaser at any judicial or private foreclosure sale of the Real Property or any unapplied portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to Tenant within sixty (60) days after the later to occur of: (A) the date Tenant surrenders possession of the Premises to Landlord in accordance with this Lease; or (B) the Expiration Date. Tenant does hereby authorize Landlord to withhold from the Security Deposit all amounts allowed by Law and the amount reasonably anticipated by Landlord to be owed by Tenant as a result of an underpayment of Tenant’s Pro Rata Share of any Operating Expenses for the final year of the Term. To the fullest extent permitted by applicable Law, Tenant agrees that the provisions of this Section 6 shall supersede and replace all statutory rights of Tenant under applicable Law regarding the retention, application or return of security deposits, including the provisions of Section 1950.7 of the California Civil Code, or any similar or successor Laws now or hereinafter in effect which (i) establish the time frame by which Landlord must refund collateral or security for performance of a tenant’s obligations under a lease, and/or (ii) provide that Landlord may claim from collateral or security for performance of a tenant’s obligations under a lease 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 damages resulting from termination any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of this Lease Tenant or any officer, employee, agent or invitee of Tenant. If Landlord transfers its interest in the Premises, Landlord shall assign the Security Deposit to the transferee and thereafter Landlord shall have no further liability for the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Security Deposit.

Security Deposit. Upon execution The Security Deposit shall be held by Landlord in a ---------------- separate account, i.e., an account expressly identified as being Tenant's Security Deposit and without Landlord's using any monies in the account for purposes other than refunding the Security Deposit or applying all or a portion of the Security Deposit to cure Tenant's defaults. The account will be maintained in a financial institution selected by Landlord; and provided that Tenant complies with the reasonable requests of the financial institution (such as supplying Tenant's taxpayer identification number and executing forms required by the financial institution), all interest accruing on the account shall be paid annually to Tenant. It is expressly understood and agreed that the Security Deposit is intended solely as security for the performance by Tenant of Tenant's covenants and obligations under this Lease and it shall not be considered an advance payment of rental or a measure of Landlord's damages in case of default by Tenant upon the occurrence of any event of default by Tenant or upon termination of this Lease. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of rent or to satisfy any other covenant or obligation of Tenant hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit specified to its original amount. If Tenant is not in Paragraph 2.d. above as security for Tenant’s performance default at the conclusion of all the 81st month of Tenant’s covenants and obligations under this Lease; providedthe Lease Term, howeverthen Landlord shall immediately return to Tenant one-sixth of the Security Deposit, that thereby retaining in Landlord's account five-sixths of the Security Deposit which Landlord held through the first 81 months of the Lease Term. If Tenant is not an advance rent deposit or an advance payment in default at the conclusion of any other kindthe 82nd month of the Lease Term, nor a measure of Landlord’s damages upon Tenant’s default. then Landlord shall not be required immediately return to segregate Tenant another one-sixth of the Security Deposit, thereby retaining in Landlord's account two-thirds of the Security Deposit from its other funds and no interest which Landlord held through the first 81 months of the Lease Term. If Tenant is not in default at the conclusion of the 83rd month of the Lease Term, then Landlord shall accrue or be payable immediately return to Tenant with respect thereto. Landlord may (but shall not be required to) use another one-sixth of the Security Deposit, thereby retaining in Landlord's account one-half of the Security Deposit or any portion thereof which Landlord held through the first 81 months of the Lease Term. If Tenant is not in default at the conclusion of the 84th month of the Lease Term, then Landlord shall immediately return to cure any Event Tenant another one-sixth of Default or the Security Deposit, thereby retaining in Landlord's account one-third of the Security Deposit which Landlord held through the first 81 months of the Lease Term. If Tenant is not in default at the conclusion of the 85th month of the Lease Term, then Landlord shall immediately return to compensate Tenant another one-sixth of the Security Deposit, thereby retaining in Landlord's account one-sixth of the Security Deposit which Landlord for any damage Landlord incurs as a result held through the first 81 months of Tenant’s failure to perform any the Lease Term. Upon the termination of its covenants or obligations hereunderthis Lease, it being understood that any use the balance of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from be returned by Landlord to Tenant specifying Tenant, except to the amount of the Security Deposit so utilized extent applied by Landlord and to make good any arrearages of rent or to satisfy any other covenant or obligation of Tenant hereunder. If Intervest-Parkway, Ltd. or any subsequent Landlord transfers its interest in the particular purpose for which such amount was appliedPremises during the term of this Lease, Tenant the assigning Landlord shall immediately deposit with Landlord an amount sufficient to return assign the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make transferee; and upon such payment to Landlord within five (5) days assignment and the assignee's assumption of the Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of 's obligations under this Lease, the assigning Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall not have any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant further liability for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope return of such 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)Deposit.

Security Deposit. Upon 32.1 The Security Deposit set forth in the Schedule is due from Tenant upon Tenant’s execution and delivery of this Lease, Tenant shall pay to and will be held by Landlord the Security Deposit specified in Paragraph 2.d. above without liability for interest and as security for Tenant’s the performance of all by Tenant of Tenant’s covenants and obligations under this Lease; provided, however, it being expressly understood that the Security Deposit is will not an advance rent deposit or be considered an advance payment of any other kind, nor rental or a measure of Tenant’s damages in case of default by Tenant. In the alternative, Tenant may substitute for the cash Security Deposit a letter of credit pursuant to Paragraph 34. 32.2 Landlord may, from time to time without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of rent or to satisfy any other covenant or obligation of Tenant hereunder. Following any such application of the Security Deposit, Tenant will pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. 32.3 If Tenant is not in default at the termination of this Lease and has fulfilled all of its obligations under this Lease, the balance of the Security Deposit remaining after any such application will be returned by Landlord to Tenant. 32.4 If Landlord transfers its interest in the Premises during the Lease Term, Landlord may assign the Security Deposit to the transferee and thereafter Landlord will have no further liability for the return of such Security Deposit. 32.5 Landlord may apply such portion or portions of the Security Deposit as are reasonably necessary for the following purposes: (i) to remedy any default by Tenant in the payment of 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 Premises or the Building caused or permitted to occur by Tenant; (iii) to clean and restore and repair the Premises or the Building following their surrender to Landlord if not surrendered in the condition required pursuant to the provisions of this Lease, (iv) to remedy any other default of Tenant to the extent permitted by applicable laws including, without limitation, paying in full on Tenant’s behalf any sums claimed by materialmen or contractors of Tenant to be owing to them by Tenant for work done or improvements made at Tenant’s request to the Premises, and (v) any and all rent and other amounts to which Landlord may be entitled pursuant to Paragraph 22.2(a) of this Lease, including, without limitation, such rent and other amounts to which Landlord may be entitled under California Civil Code Section 1951.2. 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 of the California Civil Code or any similar or successor laws now or hereafter in effect, that restrict Landlord’s damages upon Tenant’s defaultuse or application of the Security Deposit, or that provide specific time periods for return of the Security Deposit. Landlord shall not be deemed a trustee of the Security Deposit. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Landlord’s general accounts. Tenant with respect thereto. Landlord may (but shall not be required to) use entitled to any interest on the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)Deposit.

Security Deposit. Upon Concurrently with Tenant’s execution of this Lease, Tenant shall pay to deposit with Landlord the Security Deposit specified in Paragraph 2.d. above amount of $20,385.00 as security for Tenant’s the performance of all of Tenant’s covenants and obligations under this Lease; providedlease. Each time monthly fixed rent is increased, howeverTenant shall deposit additional cash with Landlord sufficient to increase the security deposit to the then current monthly fixed rent. Upon any default by Tenant under this lease, that Landlord may, but shall not be obligated to, use, apply or retain all or any part of the Security Deposit is not an advance rent security deposit or an advance for the payment of any rent in default, or any other kind, nor liabilities which Landlord may incur as a measure result of Landlord’s damages upon or in connection with Tenant’s default. If any portion of the security deposit is so used or applied, Tenant shall, within five (5) days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the security deposit to the full amount required. Tenant’s failure to do so shall constitute a material default hereunder. Landlord shall not be required to segregate keep the Security Deposit security deposit separate from its other funds general funds, and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be entitled to receive interest on the security deposit unless required to) use by applicable law. If Tenant complies with all of the Security Deposit or any provisions of this lease, the unused portion thereof of the security deposit shall be returned to cure any Event of Default or Tenant (or, at Tenant’s option, to compensate Landlord for any damage Landlord incurs as a result the last assignee of Tenant’s failure to perform any of its covenants or obligations interest hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord ) within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or sooner termination of this Leasethe lease term and the surrender of possession of the premises to Landlord in the condition required hereby. If Landlord transfers or mortgages its interest in the premises during the lease term and transfers or assigns any unapplied portion of the security deposit to the transferee or mortgagee, Landlord shall return have no further liability to Tenant (or any assignee of Tenant’s interest hereunder) with respect to the Security Deposit security deposit and Tenant shall look solely to such transferee or mortgagee for the balance thereof then held by Landlord after application return of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)security deposit.

Security Deposit. Upon execution of this Lease, Tenant shall pay to Landlord upon execution of this Lease a security deposit in the Security Deposit specified amount set forth in Paragraph 2.d. above the Basic Lease Information as security for Tenant’s the faithful performance of all of Tenant’s terms, covenants and obligations under conditions of this Lease; provided, however, . The security deposit shall be increased on each Adjustment Date to equal the then-applicable Minimum Base Rent. Tenant agrees that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use apply the Security Deposit security deposit in whole or in part to remedy any damage to the Premises caused by Tenant, Tenant’s Agents or Tenant’s Invitees, or any failure of Tenant to perform any other terms, covenants or conditions contained in this Lease, without waiving any of Landlord's other rights and remedies hereunder or at Law or in equity. Should Landlord use any portion thereof of the security deposit to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations by Tenant hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately replenish the security deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. original amount, and Tenant’s 's failure to make such payment to Landlord do so within five (5) days of Landlord’s 's notice shall constitute an a material Event of DefaultDefault under this Lease. Within thirty Landlord's obligations with respect to the security deposit are solely that of debtor and not trustee. Landlord shall not be required to keep the security deposit separate from its general funds, and Tenant shall not be entitled to any interest on such deposit. The amount of the security deposit shall not be deemed to limit Tenant's liability for the performance of any of its obligations under this Lease. To the extent that Landlord is not entitled to retain or apply the security deposit pursuant to this Section, Landlord shall return such security deposit to Tenant within forty-five (3045) days after of the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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).

Security Deposit. Upon Within ten (10) days of mutual execution and delivery of this Lease, Tenant shall pay agrees to deposit with Landlord a letter of credit in the amount of $1,985,507.25 on a form reasonably acceptable to Landlord (the “Security Deposit specified in Paragraph 2.d. above as security for Tenant’s Deposit”) to guarantee the payment of rent and the performance by Tenant of all the terms and provisions of Tenant’s covenants and obligations under this LeaseLease Agreement; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood acknowledged and agreed that any use Chase Bank is approved as an issuer of the Security Deposit shall not constitute a bar or defense and the form of letter of credit attached to this Lease as Exhibit F has been approved by the parties. Upon the occurrence of any of Landlord’s remedies default under this Lease Agreement by Tenant that continues beyond the expiration of applicable notice and cure periods, Landlord may draw upon said Security Deposit to the extent necessary to cure such default, whether rent or at lawotherwise. In such event and upon written notice from Landlord The Security Deposit shall be returned or released to Tenant specifying upon compliance with the terms and provisions of this Lease Agreement, including, without limitation, Article 18 hereof. Tenant understands that its potential liability under this Lease Agreement is not limited to the amount of the Security Deposit. Use of such Security Deposit so utilized by Landlord and the particular purpose for which such amount was appliedshall not constitute a waiver, Tenant shall immediately deposit with Landlord an amount sufficient but is in addition to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment any other remedies available to Landlord within five (5) days under this Lease Agreement and under law. Upon the use of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate cure any default of Tenant, Tenant shall forthwith deposit with Landlord for damages resulting from termination a renewed letter of credit in the full amount of the Security Deposit. In the event of any rightful and permitted assignment of Tenant’s interest in this Lease Agreement, the Security Deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further liability to the tenancy created hereunder (includingassignor with respect to the return of the Security Deposit. Provided that on the date that is one year after the Commencement Date Tenant is not in default, without limitationand no occurrence or condition then exists for which notice has been given and, damages recoverable with the passage of time, would constitute an event of default under California Civil Code Section 1951.2)this Lease Agreement, then the amount of the letter of credit deposited as a Security Deposit shall be reduced by $397,101.44, and references to the “Security Deposit” shall mean such revised amount thereafter. Every 12 months thereafter, provided that on such date Tenant is not in default and no occurrence or condition then exists for which notice has been given and, with the passage of time, would constitute an event of default under this Lease Agreement, then the amount of the letter of credit deposited as a Security Deposit shall be further reduced by an additional $397,101.44, and references to the “Security Deposit” shall mean such revised amount thereafter, until such amount reaches $0.00, at which time the Security Deposit letter of credit shall be released. Should a default exist at the time of the applicable reduction, such reduction shall be held in abeyance until such time as the default is cured and no other default exists or occurrence or condition then exists for which notice has been given and, with the passage of time, would constitute an event of default under this Lease Agreement.

Security Deposit. Upon Tenant shall also pay to Landlord concurrently with the execution of this Lease the sum of $142, 845 to be retained by Landlord as security ("Deposit") for the faithful performance by Tenant of all of the provisions, conditions, and covenants of this Lease. At no time during the Term shall Tenant construe the Deposit to be rent or elect to apply the same to any other sums due and payable by Tenant hereunder. In the event of a default of any kind or nature by Tenant under this Lease, Landlord may elect to retain the applicable portion of the Deposit to offset the same against the actual loss or damage sustained, or expend so much thereof as may be necessary to cure any such default, but the liability of Tenant shall only be discharged proportionately should the Deposit be insufficient to satisfy the debts due or damages incurred by Landlord. If at any time during the term Landlord should use the Deposit as aforementioned, then Tenant agrees to promptly replace the sum expended upon demand by Landlord. Nothing contained in this Article shall require or be deemed to require Landlord to resort to the Deposit prior to exhausting any and all other rights and remedies available against Tenant nor shall anything contained herein be construed to deprive Landlord of any other remedy, whether at law, in equity, or reserved under this Lease should Landlord resort to the Deposit pursuant to this Section. Landlord shall not pay Tenant any interest on the Deposit nor be required to maintain the same separately from other funds of Landlord. Landlord shall return the Deposit or so much to Tenant thereof as has not heretofore been applied by Landlord for the purposes stated herein, without interest or other increment, upon Landlord’s determination that upon expiration of the Lease Tenant has complied with all terms of this Lease, Tenant shall pay to Landlord the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment without default of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)nature whatsoever.

Security Deposit. Upon execution Subject to the provisions of this addendum, in lieu of the cash security deposit required to be provided by Tenant under the Lease (referenced in Subsection 1(g) and Section 6 of the Lease), Landlord agrees to accept from Tenant 240,000 common shares of High Plains Gas, Inc. (HPGS.OB) (the “Shares”). Tenant shall transfer ownership of the Shares to Landlord concurrently with the signing of this addendum. Should the value of the Shares ever fall below $240,000 (the “Threshold Value”), as determined by the per share price at the close of trading on the Over-the-Counter Bulletin Board of NASDAQ on the business date immediately preceding the date of determination, Tenant agrees to, within one business day, transfer ownership to Landlord of sufficient additional Shares or cash to meet the Threshold Value. Should Tenant fail to adhere to the foregoing obligation, Landlord shall have the right to immediately convert the Shares to cash in any manner deemed reasonable by Landlord in its sole and absolute discretion. Tenant agrees that Landlord shall have the right to sell the Shares for cash and apply and use such cash under the terms provided for the Security Deposit under the Lease, including Paragraph 6 thereof, and further that, upon Landlord selling the Shares or a portion thereof and applying or using such cash as provided for under the Lease, Tenant shall pay have the obligation to immediately transfer additional shares to Landlord to meet the Security Deposit specified Threshold Value. Tenant represents and warrants as follows with respect to the Shares (including any Shares transferred to Landlord in Paragraph 2.d. above the future): (a) Tenant has timely filed each statement, report, registration statement (with the prospectus in the form required to be filed pursuant to Rule 424(b) of the Securities Act), definitive proxy statement, and other filing required to be filed with the Securities and Exchange Commission (“SEC”) by Tenant prior to the Effective Date (collectively, the “Tenant SEC Documents”). (b) As of their respective filing dates, the Tenant SEC Documents complied in all material respects with the requirements of the Securities Exchange Act of 1934 and the rules promulgated thereunder (the “Exchange Act”) and the Securities Act of 1933, as security for Tenant’s performance amended (the “Securities Act”)and none of all the Tenant SEC Documents contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading, except to the extent corrected by a subsequently filed Tenant SEC Document prior to the date hereof. (c) The financial statements of Tenant’s covenants , including the notes thereto, included in the Tenant SEC Documents (“Tenant Financial Statements”), complied as to form in all material respects with applicable accounting requirements and obligations under this Lease; provided, however, that with the Security Deposit is not an advance rent deposit or an advance payment published rules and regulations of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant SEC with respect thereto. thereto as of their respective dates, and have been prepared in accordance with generally accepted accounting principles applied on a basis consistent throughout the periods indicated and consistent with each other (except as may be indicated in the notes thereto or, in the case of unaudited statements included in Quarterly reports on Form 10-Q, as permitted by Form 10-Q of the SEC). (d) The Tenant Financial Statements fairly present the consolidated financial condition, operating results and cash flow of Tenant and its Subsidiaries at the dates and during the periods presented therein (subject, in the case of unaudited statements, to normal, recurring year-end adjustments). (e) The issuance and delivery of the Shares as consideration in accordance with this addendum shall be, at or prior to the Effective Date (or the date on which such Shares are delivered to Landlord may (but shall not be required to) use if at a later time to meet the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result Threshold Value), duly authorized by all necessary corporate action on the part of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of and, when issued at the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at lawEffective Time as contemplated hereby, such Shares will be duly and validly issued, fully paid and nonassessable. In such event Such Shares, when so issued and upon written notice from Landlord to Tenant specifying delivered in accordance with the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination provisions of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereofaddendum, shall be responsible to Tenant for the Security Deposit unless free and only to the extent such holder or purchaser shall clear of all liens and encumbrances and adverse claims, other than restrictions on transfer created by applicable securities laws and will not have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections been issued in violation of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all their respective properties or any part preemptive rights or rights 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)first refusal or similar rights.

Security Deposit. Upon execution of this Lease, Tenant shall pay The Security Deposit previously delivered to Landlord by Tenant has been returned to Tenant, receipt of which is acknowledged by Tenant. Except as provided in Exhibit G, Section 19.02 attached hereto, no Security Deposit shall be required to be deposited by Tenant. If a Security Deposit is required by Exhibit G, Section 19.03, the Security Deposit specified in Paragraph 2.d. above as security for shall secure Tenant’s performance of all of Tenant’s covenants and 's obligations under this Lease; providedLease to pay rent and other monetary amounts, howeverto maintain the Premises and repair damages thereto, that to surrender the Premises to Landlord in clean and sanitary condition and repair upon termination of this Lease as required pursuant to Section 18.15 below and to discharge Tenant's other obligations hereunder. Landlord may use and commingle the Security Deposit is not an advance rent deposit or an advance payment of any with other kind, nor a measure funds of Landlord’s damages upon . If Tenant fails to perform Tenant’s default. 's obligations hereunder, Landlord shall not be required may, but without any obligation to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit do so, apply all or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to towards fulfillment of Tenant's unperformed obligations. If Landlord does so apply any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount portion of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was appliedDeposit, Tenant Tenant, shall immediately deposit with pay Landlord an a sufficient amount sufficient in cash to return restore the Security Deposit to the amount specified full original amount. In the event that Landlord shall expend the same in Paragraph 2.d. order to cure Tenant’s 's default hereunder, Tenant's failure to make such payment forthwith remit to Landlord a sufficient amount in cash to restore the Security Deposit to the original sum deposited within five ten (510) days after Tenant's receipt of Landlord’s notice from Landlord that such amounts have been so expended shall constitute an Event of Default. Within thirty (30) days after The Security Deposit shall be held by Landlord without liability for interest on the expiration or same. Upon termination of this Lease, if Tenant has then performed all of Tenant's obligations hereunder, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Tenant. If Landlord for damages resulting sells or otherwise transfers Landlord's rights or interest under this Lease, Landlord may deliver the Security Deposit to the transferee, whereupon Landlord shall be released from termination of this Lease and any further liability to Tenant with respect to the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Security Deposit.

Security Deposit. Upon Tenant, contemporaneously with the execution of this Lease, Tenant shall pay to Landlord deposit the amount set forth as in Section 1(O) as the Security Deposit specified in Paragraph 2.dwith Landlord. above as security for Tenant’s The Security Deposit is being given to secure the faithful performance by Tenant of all of Tenant’s the terms, covenants and obligations under conditions of this Lease; providedLease by Tenant to be kept and performed during the Lease Term. The Security Deposit shall remain on account for the duration of the Lease Term. The Security Deposit shall never be less than the then current GMMR, howeverand Tenant, that upon request by Landlord, agrees to remit to Landlord a sufficient amount to maintain the Security Deposit is not in an advance rent deposit or an advance payment amount equal to the then current GMMR. Tenant agrees that if Tenant shall fail to pay the Rent herein reserved promptly when due, the Security Deposit may be applied, at the option of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord (but Landlord shall not be required to), to segregate any Rent due and unpaid, and if Tenant violates any of the other terms, covenants and conditions of this Lease, the Security Deposit from its other funds and no interest shall accrue or be payable applied to Tenant with respect thereto. any damages suffered by Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure default to perform the extent of the amount of the damages suffered. The Security Deposit shall be held by Landlord for Tenant and the claim of Tenant to such payment or deposit shall be prior to the claim of any creditor of its covenants Landlord except a trustee in bankruptcy. Landlord may claim of the Security Deposit only such amounts as are reasonably necessary to remedy Tenant’s defaults and payment of Rent, to repair damages to the Premises caused by Tenant or obligations hereunder, it being understood that any use to clean the Premises upon termination of the tenancy. Any remaining portion of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord be returned to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within no later than thirty (30) days after the expiration termination of its tenancy. Nothing contained in this Section 4(F) shall in any way diminish or termination be construed as waiving any of Landlord’s other remedies as provided in any other provision of this Lease, Landlord shall return to Tenant or by law or in equity. Should the entire Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; providedDeposit, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible appropriated and applied by Landlord for the payment of overdue Rent or other sums due and payable to Landlord by Tenant for hereunder, then Tenant shall, on the written demand of Landlord, promptly remit to Landlord a sufficient amount in cash to restore the Security Deposit unless and only to a sum equal to the extent then current GMMR, and Tenant’s failure to do so within fifteen (15) days after the date of such holder or purchaser statement of demand, shall have actually received the sameconstitute a material breach of this Lease. Should Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation comply with all of the scope terms, covenants and conditions of such waiverthis Lease and promptly pay all of the Rent herein provided for as it falls due, acknowledges that and all other sums payable by Tenant to Landlord may use all hereunder, the Security Deposit shall be returned in full to Tenant within thirty (30) days of the end of the Lease Term, or upon the earlier termination of this Lease pursuant to the provisions of Section 20, except in the event the Premises are sold as a result of the exercise of any part power of sale under any mortgage or deed of trust, in which event this Lease shall be automatically amended to delete any reference to this Section 4(F), and Tenant shall be entitled to immediate reimbursement 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)party then holding same.

Security Deposit. Upon Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the Security Deposit specified (as defined in Paragraph 2.d. above as security for the Basic Lease Information), which shall be held by Landlord to secure Tenant’s 's performance of all of Tenant’s covenants and its obligations under this Lease; provided, however, that the . The Security Deposit is not an advance rent deposit or an advance payment of Rent or a measure or limit of Landlord's damages upon an Event of Default (as defined in Section 17). Landlord may, at Landlord's discretion, from time to time following an Event of Default and without prejudice to any other kindremedy, nor use all or a measure part of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from to perform any obligation Tenant fails to perform hereunder or in connection with Landlord's remedies under this Lease. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Subject to the 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 remaining after deducting all damages, charges and other funds 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 any breach of this Lease by Tenant. Unless required otherwise by applicable Law, the Security Deposit may be commingled with other funds, and no interest shall accrue or be payable to Tenant with respect theretopaid thereon. If Landlord transfers its interest in the Premises, Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return assign the Security Deposit to the amount specified transferee and, upon such transfer (and the delivery to Tenant of an acknowledgement by the transferee of the transferee's responsibility for the Security Deposit), Landlord thereafter shall have no further liability for the return of the Security Deposit. The Security Deposit shall be in Paragraph 2.d. Tenant’s failure to make such payment the form of a letter of credit and Tenant shall deliver to Landlord within five (5) days after the date of execution of the Lease an irrevocable, unconditional letter of credit in the amount of Thirty-Five Thousand One Hundred Ninety-Nine and 00/100 ($35,199.00) Dollars (the "LETTER OF CREDIT"). The Letter of Credit shall be addressed to Landlord’s notice , issued in a form and substance similar to that attached hereto as Exhibit I and by a financial institution with minimum assets of Ten Billion Dollars ($10,000,000,000.00), upon which presentment may be made in Boston, Massachusetts which is reasonably acceptable to Landlord, shall constitute be freely transferable without fee, and having an Event of Default. Within expiration date falling no sooner than three (3) years and thirty (30) days after the expiration or termination Commencement Date. Tenant agrees that upon any Event of Default by Tenant under the terms and provisions of this Lease, Landlord shall return have the right to Tenant receive payment under any Letter of Credit of the Security Deposit or the balance thereof then entire amount of such Letter of Credit at such time, and any such amounts received by Landlord shall be held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that and applied in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Landlord for damages resulting from termination of accordance with this Lease and in the tenancy created hereunder (includingsame manner as a Security Deposit. Landlord shall at all times during the Term, without limitation, damages recoverable under California Civil Code Section 1951.2)hold a letter of credit in the amounts described above.

Security Deposit. Upon The Security Deposit shall be delivered to Landlord upon the execution of this LeaseLease by Tenant and shall be held by Landlord (without liability for interest, Tenant shall pay except to Landlord the Security Deposit specified in Paragraph 2.d. above extent required by Law) as security for Tenant’s the performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the . The Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor Rent or a measure of Landlord’s damages upon Tenant’s defaultliability for damages. Landlord shall not be required may, from time to segregate time while an event of default remains uncured, without prejudice to any other remedy, use all or a portion of the Security Deposit to satisfy past due Rent, cure any uncured default by Tenant, or repay Landlord for damages and charges for which Tenant is legally liable under this Lease or resulting from its other funds and no interest Tenant’s breach of this Lease. If Landlord uses the Security Deposit, Tenant shall accrue or be payable to Tenant with respect thereto. Landlord may within ten (but shall not be required to10) use days after written demand restore the Security Deposit or any portion thereof to cure any Event of Default or to compensate its original amount and such use by Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense cure of the existing event of default until such time as the entire amount owing to any of Landlord’s remedies under this Lease or at law. In such event Landlord is paid in full and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.dis fully restored. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord Provided that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor Landlord shall return any purchaser at any judicial or private foreclosure sale of the Real Property or any unapplied portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Tenant within 30 days after the later to occur of: (A) the date Tenant surrenders possession of the Premises to Landlord in accordance with this Lease; or (B) the Expiration Date. Tenant does hereby authorize Landlord to withhold from the Security Deposit all amounts allowed by Law and the amount reasonably anticipated by Landlord to be owed by Tenant as a result of an underpayment of Tenant’s Pro Rata Share of any Excess Operating Expenses for damages resulting from termination the final year of the Term. To the fullest extent permitted by applicable Law, Tenant agrees that the provisions of this Lease Article 6 shall supersede and replace all statutory rights of Tenant under applicable Law regarding the retention, application or return of security deposits. If Landlord transfers its interest in the Premises, Landlord shall assign the Security Deposit to the transferee and, following the assignment and the tenancy created hereunder (includingdelivery to Tenant of an acknowledgement of the transferee’s responsibility for the Security Deposit if required by Law, without limitation, damages recoverable under California Civil Code Section 1951.2)Landlord shall have no further liability for the return of the Security Deposit. Landlord shall not be required to keep the Security Deposit separate from its other accounts.

Security Deposit. Upon execution At the time of signing this Lease Tenant shall deposit with Landlord the sum set forth in Item (l) of Basic Terms, to be retained by Landlord as a Security Deposit for the faithful performance and observance by Tenant of the covenants, agreements and conditions of this Lease, . Tenant shall pay grants to Landlord the Security Deposit specified a security interest in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to secure the amount specified in Paragraph 2.dpayment of all Rent owing under this Lease. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice This Lease shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, a security agreement between Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless purpose of creating such security interest. Upon request by Landlord at any time, Tenant shall execute and only deliver to Landlord UCC Financing Statements to further evidence and perfect the security interest herein granted. If and to the extent such holder or purchaser permitted by applicable law, Tenant shall have actually received not be entitled to any interest whatever on the sameSecurity Deposit. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all use, apply or retain the whole or any part of the Security Deposit to compensate the extent required for the payment of any Rent payable hereunder as to which Tenant is in default or to the extent required for the reimbursement to Landlord for damages resulting from termination of any sum which Landlord may expend or may be required to expend by reason of Tenant’s default with respect to any of the covenants, agreements or conditions of this Lease. Upon notice by Landlord of Landlord’s application of all or any portion of the security deposit as aforesaid, Tenant shall replenish the security deposit in full by promptly paying to Landlord the amount so applied. Notwithstanding anything in this Lease to the contrary, provided that Tenant has not at any time been in default under the Lease, Landlord and Tenant hereby agree that, starting on the first day of the month commencing immediately following the first anniversary of the Commencement Date, Landlord shall apply the Security Deposit against payment of monthly Rent owing by the Tenant under this Lease, until the Security Deposit is reduced to the final month’s Rent under the Lease Term, at which time Tenant will resume payment of monthly Rent in accordance with the terms of this Lease (including any residual Rent owing for the month in which the Security Deposit is reduced to the last month’s Rent), and Tenant will have no obligation to replenish the tenancy created hereunder (includingSecurity Deposit for Rent paid by reduction of the Security Deposit pursuant to this sentence. If Tenant shall fully and faithfully comply with all of the covenants, without limitationagreements and conditions of this Lease, damages recoverable under California Civil Code Section 1951.2)the balance of the Security Deposit shall be returned to Tenant after the Expiration Date and surrender of the Premises to Landlord. If the Premises are sold to a bona fide purchaser, Landlord shall have the obligation to transfer the Security Deposit to such purchaser, by which transfer Landlord shall be released from all liability for the return thereof, and Tenant shall look solely to the new landlord for the return thereof.

Security Deposit. Upon Tenant has deposited or shall deposit concurrently with Tenant’s execution of this Lease, with Landlord the amount set forth in Article 1 as the “Security Deposit” as security for the performance by Tenant shall pay of the terms of this Lease to be performed by Tenant, and not as prepayment of rent. Tenant hereby grants to Landlord a security interest in the Security Deposit, including but not limited to replenishments thereof. Landlord may apply such portion or portions of the Security Deposit specified as are reasonably necessary for the following purposes: (i) to remedy any default by Tenant in Paragraph 2.d. above as security for Tenant’s performance the payment of all Base Monthly Rent or Additional Rent or a late charge or interest on defaulted rent, or any other monetary payment obligation of Tenant’s covenants and obligations Tenant under this Lease; provided(ii) to repair damage to the Leased Premises, howeverthe Building or the Outside Areas caused or permitted to occur by Tenant; (iii) to clean and restore and repair the Leased Premises, that the Building or the Outside Areas following their surrender to Landlord if not surrendered in the condition required pursuant to the provisions of Article 2, and (iv) to remedy any other default of Tenant to the extent permitted by Law including, without limitation, paying in full on Tenant’s behalf any sums claimed by materialmen or contractors of Tenant to be owing to them by Tenant for work done or improvements made at Tenant’s request to the Leased Premises. In this regard, Tenant hereby waives any restriction on the uses to which the Security Deposit is not an advance rent deposit or an advance payment may be applied as contained in Section 1950.7(c) of the California Civil Code and/or any other kind, nor a measure of Landlord’s damages upon Tenant’s defaultsuccessor statute. Landlord shall not be required to segregate In the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use event the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit is so utilized by Landlord and the particular purpose for which such amount was appliedused, Tenant shall immediately deposit with Landlord pay to Landlord, promptly upon demand, an amount in cash sufficient to return restore the Security Deposit to the amount specified full original sum. Landlord shall not be deemed a trustee of the Security Deposit. Landlord may use the Security Deposit in Paragraph 2.dLandlord’s ordinary business and shall not be required to segregate it from Landlord’s general accounts. Tenant’s failure Tenant shall not be entitled to make such payment any interest on the Security Deposit. If Landlord transfers the Building or the Property during the Lease Term, Landlord may pay the Security Deposit 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 all liability for the return of the Security Deposit. Tenant specifically grants to Landlord (and Tenant hereby waives the provisions of California Civil Code Section 1950.7 to the contrary) a period of ninety days following a surrender of the Leased Premises by Tenant to Landlord within five (5) days of Landlordwhich to inspect the Leased Premises, make required restorations and repairs, receive and verify workmen’s notice ▇▇▇▇▇▇▇▇ therefor, and prepare a final accounting with respect to the Security Deposit. In no event shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)considered prepaid rent.

Security Deposit. Upon execution of this Lease, Tenant shall pay to Landlord the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within Within five (5) days after the full execution and delivery hereof, Tenant shall deliver to Landlord the sum of Landlord’s notice shall constitute an Event $75,000 (the “Security Deposit”) to be held by Landlord as security for the performance by Tenant of Defaultall obligations imposed on Tenant hereunder. Within thirty forty-five (3045) days after the expiration or earlier termination of this Lease, Landlord shall return to Tenant the Security Deposit to Tenant, less any amount reasonably necessary to cure any default by Tenant hereunder. Landlord shall be entitled to commingle the Security Deposit with its other assets. The Security Deposit shall not accrue interest. If Tenant shall default in any obligation imposed on or the balance thereof then held accepted by Tenant hereunder, Landlord after application shall be entitled to apply all or a portion of the Security Deposit as permitted hereunder; providedtowards Landlord’s costs or damages incurred in remedying, howeveror otherwise resulting from, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunderdefault. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use If all or any part of the Security Deposit is applied to compensate an obligation of Tenant hereunder at any time during the Term, Landlord for damages resulting from termination shall have the right to call upon Tenant to restore the Security Deposit to the amount required hereunder by giving notice to Tenant, and Tenant shall restore such deposit by payment thereof to Landlord within ten (10) days following receipt of Landlord’s notice. It is understood and agreed that should Landlord convey its interest under this Lease to another party, said Security Deposit may be turned over by Landlord to Landlord’s grantee or transferee, and upon Tenant’s receipt of the tenancy created hereunder (includingwritten acknowledgement of such grantee or transferee that it is in receipt of the Security Deposit, without limitationTenant hereby releases the party herein named as Landlord from any and all liability with respect to the Security Deposit, damages recoverable under California Civil Code Section 1951.2)or its application and return, and Tenant agrees to look solely to such grantee or transferee, and it is further understood that this provision shall also apply to each of such grantees and transferees as if they were the Landlord named herein. In no event may Tenant apply the Security Deposit toward the last installment(s) of rent or additional rent.

Security Deposit. Upon Tenant’s execution of this Lease, Tenant shall pay to Landlord deposit with Landlord, cash in the amount of the Security Deposit specified set forth in Paragraph 2.d. above as security for Tenant’s the Principal Lease Provisions, to secure the performance by Tenant of all of Tenant’s covenants and its obligations under this Lease; provided, howeverincluding without limitation Tenant’s obligations (i) to pay Basic Monthly Rent and Additional Rent (as defined below), that (ii) to repair damages to the Premises and/or the Project caused by Tenant or Tenant’s agents, employees, contractors, licensees, and invitees (collectively, “Tenant’s Invitees”), (iii) to surrender the Premises in the condition required by Paragraph 19, below, and (iv) to remedy any other defaults by Tenant in the performance of any of its obligations under this Lease. If Tenant fails to pay Rent, or otherwise defaults under this Lease, Landlord may use, apply or retain all or any portion of said Security Deposit for the payment of any amount due Landlord or to reimburse or compensate Landlord for any liability, expense, loss or damage which Landlord may suffer or incur by reason thereof. If Landlord uses or applies all or any portion of the Security Deposit, Tenant shall within twenty (20) days after written request therefor deposit monies with Landlord sufficient to restore said Security Deposit to the full amount required by this Lease. Should the Permitted Use be amended to accommodate a material change in the business of Tenant or to accommodate a subtenant or assignee, Landlord shall have the right to increase the Security Deposit is not an advance rent deposit or an advance payment of any other kindto the extent necessary, nor a measure of in Landlord’s damages upon Tenant’s defaultreasonable judgment, to account for any increased wear and tear that the Premises may suffer as a result thereof. Landlord shall not be required to segregate keep the Security Deposit separate from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Defaultgeneral accounts. Within thirty sixty (3060) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application that portion of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission not used or applied by Landlord that Tenant has performed all of its covenants and obligations hereunderLandlord. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit shall be considered to compensate Landlord be held in trust, to earn interest or to be prepayment for damages resulting from termination of any monies to be paid by Tenant under this Lease and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Lease.

Security Deposit. Upon execution of this LeaseOn or prior to the Execution Date, Tenant shall pay to Landlord an amount equal to one installment of Monthly Base Rent, or $ , as a security deposit to be held as security for the full and faithful performance by Tenant of all obligations owed to Landlord under this Agreement (“Security Deposit”). If, at any time during the Agreement term, Tenant's Monthly Base Rent is increased above the amount initially paid hereunder, the Security Deposit specified shall be increased in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, the same manner such that the Security Deposit is not always equals one current monthly installment of Monthly Base Rent. Upon each increase of the Monthly Base Rent, Tenant shall deposit with Landlord an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s defaultamount sufficient to increase the Security Deposit to the appropriate amount. Landlord shall not be required to segregate keep the Security Deposit separate from its other general funds and no Tenant shall not be entitled to interest shall accrue or be payable to thereon at the rate earned by Landlord, less any reasonable administrative handling fees. If Tenant is in Default (Section 15.1) with respect thereto. to any provision of this Agreement, including, without limitation, the provisions relating to the payment of Monthly Base Rent, Additional Rent, or the cleaning of the Premises upon the termination of this Agreement, Landlord may (may, but shall not be required to) use the Security Deposit , use, apply or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use retain all or any part of the Security Deposit for the following: (i) payment of any Rent or any other sum in default; (ii) payment of any other expense which Landlord may incur by reason of Tenant's default hereunder; (iii) to compensate Landlord for damages resulting any other loss or damage which Landlord may suffer by reason of Tenant's default hereunder; and (iv) all costs and reasonable attorneys' fees incurred by Landlord to recover possession of the Premises following a default by Tenant hereunder. If any portion of the Security Deposit is so used or applied, Tenant shall, upon demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to the appropriate amount, as determined hereunder. The Security Deposit or any balance thereof shall be returned to Tenant (or to Tenant’s assignee approved in writing by Landlord and Tenant) within 30 days following Tenant's returning of possession of the Premises to Landlord; provided, however, that Landlord may retain the Security Deposit until such time as any amount due from termination of Tenant in accordance with this Lease Article IV has been determined and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code paid to Landlord in full. No right or remedy available to Landlord as provided in this Section 1951.2)shall preclude or extinguish any other right or remedy to which Landlord may be entitled.

Security Deposit. Upon execution of this LeaseSublease, Tenant Subtenant shall pay deposit with Sublandlord the sum stated in Section 1.6 (the “Security Deposit”), to Landlord be held by Sublandlord as security for the full and faithful performance of Subtenant’s obligations under this Sublease. Upon any default by Subtenant, Sublandlord may apply all or part of the Security Deposit specified in Paragraph 2.das full or partial compensation. above as security for Tenant’s performance If any portion of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant Subtenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days after written demand by Sublandlord deposit cash with Sublandlord in an amount sufficient to restore the Security Deposit to its original amount. Sublandlord shall not be required to keep the Security Deposit separate from its general funds, and Subtenant shall not be entitled to interest on the Security Deposit. In no event may Subtenant utilize all or any portion of Landlordthe Security Deposit as a payment toward any rental sum due under this Sublease. Any unapplied balance of the Security Deposit shall be returned to Subtenant or, at Sublandlord’s notice shall constitute an Event option, to the last assignee of Default. Within Subtenant’s interest in this Sublease within thirty (30) days after following the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application Sublease and Subtenant's vacation of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunderPremises. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably Subtenant waives the benefits and protections provisions of California Civil Code Section §1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part similar or successor laws now or hereafter in effect, which (i) establish the time frame by which a landlord must refund collateral or security for performance of a tenant's obligations under a lease, and/or (ii) provide that a landlord may claim from collateral or security for performance of a tenant's obligations under a lease only those sums reasonably necessary to remedy defaults in the Security Deposit payment of rent, to repair damage caused by the tenant or to clean the Premises. In that regard, Subtenant agrees that Sublandlord may, in addition, claim those sums specified hereinabove and/or those sums reasonably necessary to compensate Landlord Sublandlord for damages resulting from termination any loss or damage caused by Subtenant's breach of this Lease and Sublease or the tenancy created hereunder acts or omission of Subtenant or any of Subtenant's Agents (including, without limitation, damages recoverable under California Civil Code Section 1951.2as hereinafter defined).

Security Deposit. During the Original Term, Subtenant shall maintain a Security Deposit, herein so-called, with Sublandlord in the amount of the LOC Amount (hereinafter defined). No Security Deposit shall be required during the Extension Term. Upon the execution of this LeaseSublease, Tenant shall pay to Landlord and as the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this LeaseSublease, Subtenant shall deliver to Sublandlord an executed original irrevocable standby letter of credit (“LOC”) in the LOC Amount, in favor of Sublandlord. The initial LOC shall have a term commencing no later than January 1, 2005 and expiring no earlier than December 31, 2005 (subject to the LOC extension requirement hereinafter specified). The LOC may be drawn upon and used upon each occurrence of any Event of Default (as defined in Section 14 of this Sublease) which remains uncured after applicable notice and cure periods. Sublandlord may use all or part of the LOC to pay past due Basic Rent, Additional Payments or other payments due Sublandlord under this Sublease, or to cure any other defaults of Subtenant under this Sublease without prejudice to any other remedy provided by law or herein. The LOC shall be issued in a form and by a national banking association or other financial institution acceptable to Sublandlord. With respect to any Event of Default occurring during the Original Term of the Sublease and which remains uncured following applicable notice and cure periods, Sublandlord shall have the right to proceed against the total LOC Amount at the sole discretion of Sublandlord regarding items and the amounts to be drawn upon relating to any Event of Default by Subtenant; provided, however, that any drawn amounts not properly applied by Sublandlord in accordance with this Section 3.5 shall be promptly paid by Sublandlord to Subtenant, or at Subtenant’s option deposited and maintained by Sublandlord in a separate bank account in the financial institution which issued the LOC on account of Subtenant’s Security Deposit obligations hereunder. Interest shall be paid on any portion of the LOC converted to cash pursuant to the provisions hereof. In the event of the sale of the Leased Premises, Sublandlord shall transfer the Security Deposit Deposit, both the LOC and any cash proceeds thereof, to the vendee, provided such vendee agrees in a writing delivered to Subtenant to accept and hold the same in compliance with the terms hereof. Sublandlord shall return the LOC and any amount held in cash by Sublandlord as part of the security deposit promptly upon the expiration of the Original Term; provided, Subtenant is not in default under this Sublease. The “LOC Amount” shall be (i) for Sublease Years 1 through and including Sublease Year 7, an advance rent deposit or amount equal to Two Million Six Hundred Sixty-Five Thousand Nine Hundred Sixty-Six Dollars ($2,665,966.00) and (ii) for Sublease Years 8 through the expiration of the Original Term, an advance payment amount equal to One Million Three Hundred Thirty-Two Thousand Nine Hundred Eighty-Three Dollars ($1,332,983.00); provided Subtenant remains in continuous compliance with the financial covenants contained in paragraphs 1, 10 through 13 of any the Compliance Certificate attached as Exhibit A to the Seventh Amendment to Second Amended and Restated Credit Agreement dated May 23, 2002 by and between Horizon Health Corporation and its subsidiaries and ▇.▇. ▇▇▇▇▇▇ ▇▇▇▇▇ Bank and certain other kindfinancial institutions as lenders, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not as the same may be required amended from time to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit time, or any portion thereof to cure comparable financial covenants that may be contained in a credit facility that replaces such credit facility or such other financial covenants as Subtenant and Sublandlord may agree upon (“Financial Covenants”); and, in the event at any Event time after the commencement of Default or to compensate Landlord Sublease Year 8 Subtenant is not in compliance with the Financial Covenants for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereundertwo consecutive fiscal quarters, it being understood that any use of then the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit LOC Amount will be restored to the amount specified in Paragraph 2.dLOC Amount required pursuant to clause (i) immediately preceding until Subtenant has achieved four consecutive quarters of compliance with the Financial Covenants. Tenant’s failure Failure to make such payment to Landlord within five (5) days of Landlord’s notice so restore the LOC Amount shall constitute an Event of Default. Within thirty The LOC shall contain the following terms and conditions: (30a) The LOC shall be extended without further amendment from year to year unless, at least 30 days after prior to its then current expiration date, the issuing bank notifies Sublandlord, in writing, that the issuing bank intends not to renew the LOC. (i) In the event the LOC is not extended at least 30 days prior to its then stated expiration date and the Original Term of the Sublease has not expired or will not expire prior to the expiration or termination date of this Leasethe then LOC, Landlord shall return then (unless Subtenant has, prior to Tenant drafting by Sublandlord, deposited with Sublandlord a substitute LOC in the Security Deposit or the balance thereof then held by Landlord after application amount of the Security Deposit as permitted hereunder; provided, however, that in no Deposit) such event shall any such return constitute an Event of Default under this Sublease and Sublandlord shall be construed as an admission by Landlord that Tenant has performed all allowed to draft upon the issuing bank to draw the full amount of its covenants the LOC, subject to the terms and obligations hereunder. No holder of a Superior Interest provisions hereinabove set forth. (as defined in Paragraph 21 belowii) The LOC shall be subject to the “Uniform Customs and Practices for Documentary Credits (1993 Revision), nor any purchaser at any judicial or private foreclosure sale International Chamber of Commerce Publication No. 500. (iii) The amount of the Real Property or any portion thereof, LOC shall be responsible payable at sight to Tenant Sublandlord within ten (10) business days of presentation of the sight draft, in whole or partial drawings; upon presentation to the issuer of the following documents: (x) Sublandlord’s written demand for payment making reference to the date and number of the LOC; (y) Sublandlord’s signed certificate that the amount drawn is required to satisfy an Event of Default which has remained uncured beyond applicable notice and grace periods, as set forth in the Sublease, or that Subtenant has failed to deposit cash or a substitute LOC as required under paragraph (ii) above; and (z) The original LOC for endorsement of the amount paid and if the draft is for the Security Deposit unless full amount the LOC is to be surrendered to the issuer. Sublandlord shall have the right to assign and transfer its right and interests in the LOC only to the extent such holder or a purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of Leased Premises; provided such waiver, acknowledges that Landlord may use all or any part of the Security Deposit purchaser issues a written receipt therefor delivered 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)Subtenant.

Security Deposit. Upon Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the Security Deposit specified (as defined in Paragraph 2.d. above as security for the Basic Lease Information), which shall be held by Landlord to secure Tenant’s performance of all of Tenant’s covenants and its obligations under this Lease; provided, however, that the . The Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor Rent or a measure or limit of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect theretoan Event of Default (as defined in Section 17). Landlord may (but shall not be required to) use the Security Deposit or any portion thereof at Landlord’s discretion, from time to cure any time following an Event of Default and without prejudice to any other remedy, use all or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use part of the Security Deposit shall not constitute a bar to perform any obligation Tenant fails to perform hereunder or defense to any of in connection with Landlord’s remedies under this Lease Lease. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Subject to the requirements of, and conditions imposed by, Laws applicable to security deposits under commercial leases, Landlord shall, within the time required by applicable Law (but in any event within thirty (30) days following the expiration or at law. In such event and upon written notice from Landlord earlier termination of this Lease), return to Tenant specifying the amount portion of the Security Deposit so utilized remaining after deducting all damages, charges and other amounts permitted by Law. Landlord and Tenant agree that such deductions shall include, without limitation, all damages and losses that Landlord has suffered or that Landlord reasonably estimates that it will suffer as a result of any breach of this Lease by Tenant. Unless required otherwise by applicable Law, the particular purpose for which such amount was appliedSecurity Deposit may be commingled with other funds, Tenant and no interest shall immediately deposit with be paid thereon. If Landlord an amount sufficient to return transfers its interest in the Premises, Landlord shall assign the Security Deposit to the amount specified in Paragraph 2.dtransferee and, upon such transfer (and the delivery to Tenant of an acknowledgement of the transferee’s responsibility for the Security Deposit), Landlord thereafter shall have no further liability for the return of the Security Deposit. Tenant’s failure to make such payment In lieu of a cash Security Deposit, Tenant may deliver to Landlord within five ten (510) days after the date of execution of the Lease an irrevocable, unconditional letter of credit in the amount of $91,960.55 (the “Letter of Credit”). The Letter of Credit shall be addressed to Landlord, issued in a form and substance similar to that attached hereto as Exhibit M and by a national financial institution approved by Landlord, in Landlord’s notice reasonable discretion, shall constitute be freely transferable without fee payable by the beneficiary thereof, shall permit partial draws, shall have a one-year term with automatic one-year renewals and an Event of Default. Within expiration date falling no sooner than thirty (30) days after OFFICE LEASE AGREEMENT CentrePort/Radiant Systems, Inc. 3 the expiration or termination of the Lease Term. In the event Tenant fails to renew the Letter of Credit as required hereunder, Landlord shall have the right to draw down the entire amount of such Letter of Credit and hold such amount as the Security Deposit hereunder. Tenant agrees that upon any occurrence of any other Event of Default by Tenant under the terms and provisions of this Lease, Landlord shall return have the right to Tenant receive payment under any Letter of Credit of such portion of the Security Deposit or Letter of Credit as Landlord reasonably estimates is necessary to effectuate a cure of the balance thereof then subject Event of Default. Any such amounts received by Landlord shall be held by Landlord after application and applied in accordance with this Lease in the same manner as a Security Deposit. Landlord shall at all times during the Term, hold a letter of credit in the Security Deposit as permitted hereunder; providedamounts described above. Notwithstanding the foregoing, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest subject to the Conditions (as defined in Paragraph 21 below), nor any purchaser if Tenant waives its Termination Option set forth in Exhibit K, then at any judicial or private foreclosure sale the expiration of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation ninetieth (90th) month of the scope of such waiver, acknowledges that Lease Term (the “Release Date”) Landlord may use all or any part shall return one-half of the Security Deposit to compensate Tenant (or Tenant may reduce the amount of the Letter of Credit to $46,000.00, if the Security Deposit is held in the form of a Letter of Credit). Such return or reduction is conditioned upon the following: (i) not more than one (1) written notice of Tenant’s failure to pay any monetary amounts under the Lease when due shall have been sent by Landlord for damages resulting from termination in any twenty-four (24) month period of this the Lease Term; and (ii) on the tenancy created hereunder Release Date Tenant shall not be in default under the Lease (includingcollectively, without limitation, damages recoverable under California Civil Code Section 1951.2the “Conditions”).

Security Deposit. Upon Tenant has deposited with Landlord on or before the execution of this Lease, Tenant Lease the sum of Eight Two Thousand Nine Hundred and Seventy Six and 40/100 Dollars ($82,976.40) which shall pay to be held by Landlord the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s the performance of all of Tenant’s 's covenants and obligations under this Lease; providedLease (the "Security Deposit"), however, it being expressly understood and agreed that the Security Deposit is not an advance rent rental deposit or an advance payment of any other kind, nor a measure of the Landlord’s 's damages upon in case of Tenant’s 's default. Landlord agrees to pay to Tenant interest of three percent (3%) per annum, compounded annually, on the Security Deposit, such interest to be held with and increase the Security Deposit on an annual basis. Upon the occurrence of any Event of Default by Tenant, Landlord may, from time to time and without prejudice to any other remedy provided by this Lease or by law, use the Security Deposit to the extent necessary to make good any arrears of rent or other payments or liability caused by the Event of Default. Tenant shall pay to Landlord on demand the amount that was applied in order to restore the Security Deposit to the amount held by Landlord prior to the application. Although the Security Deposit together with any interest accruing thereon shall be deemed the property of Landlord, any remaining balance of the Security Deposit shall promptly be returned by Landlord to Tenant at the time after termination of this Lease that all of Tenant's obligations under this Lease have been fulfilled to Landlord's reasonable satisfaction. Landlord shall not be required to segregate keep the Security Deposit separate from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any general accounts of Landlord’s remedies under . Tenant shall concurrent with the execution of this Lease or at law. In such event and upon written notice from provide Landlord with its federal employer identification number to allow Landlord to Tenant specifying report on an annual basis the amount of interest paid on the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)Deposit.

Security Deposit. Upon Tenant shall deposit concurrently with Tenant’s execution of this Lease, Tenant shall pay to with Landlord the amount set forth in Article 1 as the Security Deposit specified in Paragraph 2.d. above as security for the performance by Tenant of the terms of this Lease to be performed by Tenant’s performance , and not as prepayment of all rent. Tenant hereby grants to Landlord a security interest in the Security Deposit, including but not limited to replenishments thereof. Landlord may apply such portion or portions of Tenant’s covenants the Security Deposit as are reasonably necessary for the following purposes: (i) to remedy any default beyond applicable periods of notice and obligations grace 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; provided(ii) to repair damage to the Leased Premises, howeverthe Building or the Common Areas caused or permitted to occur by Tenant and not repaired or restored by Tenant within the applicable notice and grace period; (iii) to clean and restore and repair the Leased Premises, that 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 other default of Tenant beyond applicable notice and grace periods including, without limitation, paying in full on Tenant’s behalf any sums claimed by materialmen or contractors of Tenant to be owing to them by Tenant for work done or improvements made at Tenant’s request to the Leased Premises, and (v) to cover any other reasonable out of pocket expense, loss or damage which Landlord may at any time suffer due to Tenant’s default of its obligations under this Lease beyond applicable periods of notice and grace. In this regard, Tenant hereby waives any restriction on the uses to which the Security Deposit is not an advance rent deposit or an advance payment of may be applied as contained in any other kind, nor a measure of Landlord’s damages upon Tenant’s defaultLaws. Landlord shall not be required to segregate In the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use event the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit is so utilized by Landlord and the particular purpose for which such amount was appliedused, Tenant shall immediately deposit with Landlord pay to Landlord, promptly upon demand, an amount in cash sufficient to return restore the Security Deposit to the amount specified full original sum. Landlord shall not be deemed a trustee of the Security Deposit. Landlord may use the Security Deposit in Paragraph 2.dLandlord’s ordinary business and shall not be required to segregate it from Landlord’s general accounts. Tenant’s failure Tenant shall not be entitled to make such payment any interest on the Security Deposit. If Landlord transfers the Building, the Property, or the Project during the Lease Term, Landlord shall pay or transfer the Security Deposit to any subsequent owner in conformity with Laws, in which event the transferring landlord shall be released from all liability for the return of the Security Deposit. Tenant specifically grants to Landlord (and Tenant hereby waives the provisions of Texas Property Code Sections 93.005-93.011 to the contrary) a period of sixty (60) days following a surrender of the Leased Premises by Tenant to Landlord within five (5) days of Landlordwhich to inspect the Leased Premises, make required restorations and repairs, receive and verify workmen’s notice ▇▇▇▇▇▇▇▇ therefor, cure any other defaults, deduct any damages, and prepare a final accounting with respect to the Security Deposit. In no event shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible considered prepaid rent. Notwithstanding the foregoing, Tenant may deliver to Tenant Landlord a clean, unconditional, irrevocable, transferable, fully cash-collateralized letter of credit in lieu of cash for the Security Deposit unless (the “Letter of Credit”) in form and only issued by a financial institution (“Issuer”) reasonably satisfactory to Landlord in its sole discretion, substantially in the extent such holder or purchaser shall have actually received the sameform attached as Exhibit D. Landlord hereby approves Silicon Valley Bank as Issuer. Tenant hereby unconditionally and irrevocably waives any right to protest the benefits and protections of California Civil Code Section 1950.7, and, without limitation Issuer’s honoring of the scope Letter of such waiverCredit. The Letter of Credit shall permit partial draws, acknowledges and provide that Landlord may use all draws thereunder will be honored upon presentation by Landlord. The Letter of Credit shall have an expiration period of one (1) year but shall automatically renew by its terms unless affirmatively cancelled by either Issuer or any part of the Security Deposit to compensate Landlord for damages resulting from termination of this Lease and the tenancy created hereunder (includingTenant, without limitation, damages recoverable under California Civil Code Section 1951.2).in which

Security Deposit. Upon The total security deposit at the time of execution of this LeaseLease Contract for all residents in the apartment is $2,400.00 , Tenant shall pay due on or before the date this Lease Contract is signed. We will hold the security deposit for the term of the tenancy and, upon termination of the tenancy, reserve the right to Landlord use the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s deposit, or portions thereof, to cover any charges related to your, performance of all this Lease Contract, including, but not limited to, cleaning, repair of Tenant’s covenants damages, unpaid rent, late fees, and obligations under this Lease; provided, however, that returned check fees. The primary purpose of the Security Deposit is not an advance rent deposit to secure the full performance of this Lease by Resident and such Security Deposit to pay Rent and that he or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be she is required to segregate pay Rent for the full term of the lease. The Security Deposit from its other funds shall be forfeited in the event Resident has breached lease and no interest shall accrue Resident has either voluntarily or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs through legal process, terminated occupancy as a result of Tenant’s failure such breach. It is agreed that there are certain costs, effort, and inconvenience imposed on Management by a Residents early departure from occupying a leased premises which may be difficult to perform any anticipate in advance or establish after the fact does not prevent Management from claiming damages in excess of its covenants the Security Deposit. Lessor shall be the sole judge as to whether the Premises are in good order and repair, and Lessor shall have 60 DAYS following the expiration of the term of the this Lease within which to account for and return such Security Deposit, or obligations hereunderportions thereof, it being understood if any. Residence agrees that any use ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ shall be the spokesperson for Resident, shall be responsible for the accounting and disbursement of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible authorized to Tenant for the Security Deposit unless act on behalf of and only to the extent such holder bind all persons or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use occupants concerning all or any part of the Security Deposit matters related to compensate Landlord for damages resulting from termination of this Lease and Premises. If a forwarding address is not provided upon move-out in order for Lessor to mail an applied refund amount, then Lessor shall retain the tenancy created hereunder (includingfund for Resident. For pick up contact DTG Enterprises, without limitation, damages recoverable under California Civil Code Section 1951.2)Inc with mailing address.

Security Deposit. Upon 5.1 Tenant shall deposit the Security Deposit with Landlord upon the execution of this Lease, Tenant . Said sum shall pay to be held by Landlord the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s the faithful performance by Tenant of all of Tenant’s the terms, covenants and obligations under conditions of this Lease; provided, however, that the Security Deposit is Lease to be kept and performed by Tenant and not as an advance rent rental deposit or an advance payment of any other kind, nor as a measure of Landlord’s damages upon damage in case of Tenant’s default. If Tenant defaults with respect to any provision of this Lease (after the expiration of any applicable grace or cure period), Landlord shall not be required to segregate may use any part of the Security Deposit from its for the payment of any rent or any other funds and no interest shall accrue sum in default, or be payable to Tenant with respect thereto. for the payment of any amount which Landlord may (but shall not be required to) use the Security Deposit spend or any portion thereof become obligated to cure any Event spend by reason of Default Tenant’s default, or to compensate Landlord for any other loss or damage which Landlord incurs as a result may suffer by reason of Tenant’s failure to perform default. If any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit portion is so utilized by Landlord and the particular purpose for which such amount was appliedused, Tenant shall immediately within thirty (30) days after written demand therefor, deposit with Landlord an amount sufficient to return restore the Security Deposit to the its original amount specified in Paragraph 2.d. and Tenant’s failure to make do so shall be a material breach of this Lease. Except to such payment extent, if any, as shall be required by law, Landlord shall not be required to Landlord keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit or any balance thereof shall be returned to Tenant within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the . 5.2 The required Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for in the Security Deposit unless and only to form of an Irrevocable Standby Letter of Credit in favor of Landlord (the extent such holder or purchaser shall have actually received “letter of credit”) in the sameamount set forth on the Reference Pages. Tenant hereby unconditionally and irrevocably waives Under any circumstance under which Landlord is entitled the benefits and protections use of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any a part of the Security Deposit Deposit, then, Landlord, in addition to compensate all other rights and remedies provided under the Lease, shall have the right to a partial draw upon the letter of credit in the amount to which Landlord is entitled. The following terms and conditions shall govern the letter of credit: 5.2.1 Upon expiration of the Term, the letter of credit shall be returned to Tenant when Tenant is entitled to return of its Security Deposit. 5.2.2 The letter of credit shall be in favor of Landlord, shall be issued by a commercial bank reasonably acceptable to Landlord having a Standard & Poors rating of “A” or better, shall comply with all of the terms and conditions of this Section 5.2 and shall otherwise be in form reasonably acceptable to Landlord. Landlord acknowledges and confirms that Silicon Valley Bank shall be an acceptable commercial bank to issue such letter of credit. The initial letter of credit shall have an expiration date not earlier than fifteen (15) months after the Commencement Date. A draft of the form of letter of credit must be submitted to Landlord for damages resulting its approval prior to issuance. 5.2.3 The letter of credit or any replacement letter of credit shall be irrevocable for the term thereof and shall automatically renew on a year to year basis until a period ending not earlier than one (1) month after the Termination Date (“End Date”) without any action whatsoever on the part of Landlord; provided that the issuing bank shall have the right not to renew the letter of credit by giving written notice to Landlord not less than sixty (60) days prior to the expiration of the then current term of the letter of credit that it does not intend to renew the letter of credit. Tenant understands that the election by the issuing bank not to renew the letter of credit shall not, in any event, diminish the obligation of Tenant to maintain such an irrevocable letter of credit in favor of Landlord through such date. 5.2.4 Landlord, or its then managing agent, shall have the right from termination time to time to make one or more draws on the letter of credit at any time that an Event of Default has occurred. Funds may be drawn down on the letter of credit upon presentation to the issuing or corresponding bank of Landlord’s (or Landlord’s then managing agent’s) certificate stating as follows: “Beneficiary is entitled to draw on this credit pursuant to that certain Lease dated for reference August 25, 2006 between GATEWAY SHERWOOD, INC., a California corporation, as Landlord and BIGBAND NETWORKS, INC., a Delaware corporation, as Tenant, as amended from time to time.” It is understood that if Landlord or its managing agent be a corporation, partnership or other entity, then such statement shall be signed by an officer (if a corporation), a general partner (if a partnership), or any authorized party (if another entity). 5.2.5 Tenant acknowledges and agrees (and the letter of credit shall so state) that the letter of credit shall be honored by the issuing bank without inquiry as to the truth of the statements set forth in such draw request and regardless of whether the Tenant disputes the content of such statement. 5.2.6 In the event of a transfer of Landlord’s interest in the Premises, Landlord shall have the right to transfer the letter of credit to the transferee and thereupon the Landlord shall, without any further agreement between the parties, be released by Tenant from all liability therefor, and it is agreed that the provisions hereof shall apply to every transfer or assignment of said letter of credit to a new landlord; and Landlord shall pay all fees to the issuer necessary to effect and evidence such transfer. 5.2.7 Without limiting the generality of the foregoing, if the letter of credit expires earlier than the End Date, or the issuing bank notifies Landlord that it will not renew the letter of credit, Landlord shall accept a renewal thereof or substitute letter credit (such renewal or substitute letter of credit to be in effect not later than thirty (30) days prior to the expiration of the expiring letter of credit), irrevocable and automatically renewable as above provided to the End Date upon the same terms as the expiring letter of credit or upon such other terms as may be reasonably acceptable to Landlord. However, if (i) the letter of credit is not timely renewed, or (ii) a substitute letter of credit, complying with all of the terms and conditions of this Lease Section is not timely received, then Landlord may present the expiring letter of credit to the issuing bank, and the tenancy created hereunder entire sum so obtained shall be paid to Landlord, to be held by Landlord until Tenant would otherwise be entitled to the return of the letter of credit, and to be retained by Landlord if an Event of Default occurs. 5.2.8 As of the expiration of the twenty-fourth (including24lh) full calendar month and also upon the expiration of the thirty-sixth (36th) full calendar month of the Term, without limitationprovided that Tenant is not then in default (after the expiration of any applicable grace or cure period), damages recoverable under California Civil Code Section 1951.2)and that prior thereto there has occurred no monetary Event of Default, Landlord shall permit the amount of the letter of credit to be reduced by $129,159.35.

Security Deposit. Upon Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the Security Deposit specified in Paragraph 2.d. above as security for Deposit, which shall be held by Landlord to secure Tenant’s performance of all of Tenant’s covenants and its obligations under this Lease; provided, however, that the . The Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor Rent or a measure or limit of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any an Event of Default or (as defined herein). Landlord may, from time to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute time following an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any a part of the Security Deposit to compensate perform any obligation Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its determined amount for damages resulting from termination that given calendar year. 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 this Lease the Security Deposit remaining after deducting all damages, charges and the tenancy created hereunder (includingother amounts permitted by Law. Landlord and Tenant agree that such deductions shall include, without limitation, all damages recoverable under California Civil Code and losses that Landlord has suffered or that Landlord reasonably estimates that it will suffer as a result of any breach of this Lease by ▇▇▇▇▇▇. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises, Landlord will assign the Security Deposit to the transferee and, upon such transfer and the delivery to Tenant of an acknowledgement of the transferee’s responsibility 5 Approved Texas Industrial Lease Form Based On Master Lease Version 22 for the Security Deposit as provided by Law, Landlord thereafter shall have no further liability for the return of the Security Deposit. Provided no monetary Event of Default occurs prior to each anniversary of the Commencement Date, Tenant shall be entitled to a reduction of the Security Deposit in the amount of $25,000.00 upon each anniversary of the Commencement Date during the initial Term. The remainder of the Security Deposit as exists from time to time will be held and applied by Landlord in accordance with the terms of this Section 1951.2)6. To the extent Tenant is entitled to any such reduction, Landlord shall automatically apply the amount of such reduction as a credit against the monthly installment(s) of Basic Rent from Tenant next becoming due to Landlord with such credit being clearly delineated on the invoice submitted to Tenant.

Security Deposit. Upon Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the Security Deposit specified (as defined in Paragraph 2.d. above as security for the Basic Lease Information), which shall be held by Landlord to secure Tenant’s performance of all of Tenant’s covenants and its obligations under this Lease; provided, however, that the . The Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor Rent or a measure or limit of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any an Event of Default (as defined in Section 17). Landlord may, at Landlord’s discretion, from time to time following an Event of Default and without prejudice to any other remedy, use all or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use part of the Security Deposit shall not constitute a bar to put the Premises in the condition required under this Lease and to perform any obligation Tenant fails to perform hereunder or defense to any of in connection with Landlord’s remedies under this Lease or at lawLease. In Following any such event application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Subject to the requirements of, and upon written notice from conditions imposed by, Laws applicable to security deposits under commercial leases, Landlord shall, within the time required by applicable Law, return to Tenant specifying the amount portion of the Security Deposit so utilized remaining after deducting all damages, charges and other amounts permitted by Law. Landlord and Tenant agree that such deductions shall include, without limitation, all damages and losses that Landlord has suffered or that Landlord reasonably estimates that it will suffer as a result of any breach of this Lease by Tenant. Unless required otherwise by applicable Law, the particular purpose for which such amount was appliedSecurity Deposit may be commingled with other funds, Tenant and no interest shall immediately deposit with be paid thereon. If Landlord an amount sufficient to return transfers its interest in the Premises, Landlord may assign the Security Deposit to the amount specified transferee and, upon such transfer (and the delivery to Tenant of an acknowledgment of the transferee’s responsibility for the Security Deposit if required by Law), Landlord thereafter shall have no further liability for the return of the Security Deposit. The Security Deposit shall be in Paragraph 2.dthe form of an irrevocable, unconditional letter of credit (the “Letter of Credit”). Tenant’s failure The Letter of Credit shall be addressed to make such payment Landlord, issued in a form and substance similar to Landlord within five (5) days of that attached hereto as Exhibit G and by a financial institution approved by Landlord, in Landlord’s notice sole discretion, shall constitute be freely transferable without fee, and having an Event of Default. Within expiration date falling no sooner than ten (10) years and thirty (30) days after the expiration or termination Commencement Date. Tenant agrees that upon any default by Tenant under the terms and provisions of this Lease, Landlord shall return have the right to Tenant receive payment under any Letter of Credit of the Security Deposit or the balance thereof then entire amount of such Letter of Credit at such time, and any such amounts received by Landlord shall be held by Landlord after application and applied in accordance with this Lease in the same manner as for a cash Security Deposit. Provided no Event of Default shall have occurred under this Lease, the amount of the Security Deposit shall be reduced by $11,600.00 as permitted hereunderof the second (2nd) anniversary of the Commencement Date, and by$54,800.00 as of each subsequent anniversary of the Commencement; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only be reduced to an amount less than $127,794.00. Prior to any such reduction, Tenant shall be required to have furnished to Landlord a replacement Letter of Credit in the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope reduced amount of such 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)Deposit.

Security Deposit. Upon execution of this Lease, Tenant The Security Deposit shall pay be delivered to Landlord on or before the Security Deposit specified in Paragraph 2.d. above Commencement Date of the Lease by Tenant and shall be held by Landlord (without liability for interest, except to the extent required by Law) as security for Tenant’s the performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the . The Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor Rent or a measure of Landlord’s damages upon Tenant’s defaultliability for damages. Landlord shall not be required may, from time to segregate time while an event of default remains uncured, without prejudice to any other remedy, use all or a portion of the Security Deposit to satisfy past due Rent, cure any uncured default by Tenant, or repay Landlord for damages and charges for which Tenant is legally liable under this Lease or resulting from its other funds and no interest Tenant’s breach of this Lease. If Landlord uses the Security Deposit, Tenant shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use on demand restore the Security Deposit or any portion thereof to cure any Event of Default or to compensate its original amount and such use by Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense cure of the existing event of default until such time as the entire amount owing to any of Landlord’s remedies under this Lease or at law. In such event Landlord is paid in full and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.dis fully restored. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord Provided that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor Landlord shall return any purchaser at any judicial or private foreclosure sale of the Real Property or any unapplied portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Tenant within 30 days after the later to occur of: (A) the date Tenant surrenders possession of the Premises to Landlord in accordance with this Lease; or (B) the Expiration Date. Tenant does hereby authorize Landlord to withhold from the Security Deposit all amounts allowed by Law and the amount reasonably anticipated by Landlord to be owed by Tenant as a result of an underpayment of Tenant’s Pro Rata Share of any Excess Operating Expenses for damages resulting from termination the final year of the Term. To the fullest extent permitted by applicable Law, Tenant agrees that the provisions of this Lease Article 6 shall supersede and replace all statutory rights of Tenant under applicable Law regarding the retention, application or return of security deposits. If Landlord transfers its interest in the Premises, Landlord shall assign the Security Deposit to the transferee and, following the assignment and the tenancy created hereunder delivery to Tenant of an acknowledgement of the transferee’s responsibility for the Security Deposit if required by Law, Landlord shall have no further liability for the return of the Security Deposit. Landlord shall not be required to keep the Security Deposit separate from its other accounts. Notwithstanding the foregoing and provided no event of default has occurred, Landlord shall credit one-third of the Security Deposit against the Base Rent due for the thirty-seventh (including37) month of the Term, without limitation, damages recoverable under California Civil Code Section 1951.2)and one-third of the Security Deposit (being one-half of the remaining balance thereof) against the Base Rent due for the forty-ninth (49) month of the Term.

Security Deposit. Upon mutual execution of this Lease, Tenant shall pay to deposit with Landlord the Security Deposit specified good funds in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized (if any) set forth in the Principal Lease Provisions, to secure the performance by Tenant of its obligations under this Lease, including without limitation Tenant’s obligations (i) to pay Basic Monthly Rent and Additional Rent (as defined below), (ii) to repair damages to the Premises and/or the Project caused by Tenant or Tenant’s agents, employees, contractors, licensees, and invitees (collectively, “Tenant’s Invitees”), (iii) to surrender the Premises in the condition required by Paragraph 24, below, and (iv) to remedy any other defaults by Tenant in the performance of any of its obligations under this Lease. If Tenant commits any default under this Lease, Landlord and the particular purpose for which such amount was appliedmay, Tenant shall immediately deposit with Landlord an amount sufficient to return at its election, use funds from the Security Deposit to pay the reasonable cost of curing such default, and to compensate Landlord for all damages actually suffered by Landlord which are directly attributable to such default, including, without limitation, reasonable attorneys’ fees and costs incurred by Landlord. Upon demand by Landlord, Tenant shall promptly pay to Landlord a sum equal to any portion of the Security Deposit so used by Landlord, in order to maintain the Security Deposit in the amount specified set forth in Paragraph 2.d. Tenant’s failure the Principal Lease Provisions above (subject to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Defaultincrease as set forth below). Within thirty (30) 30 days after following the expiration Expiration Date or earlier termination of this Lease, Landlord shall return deliver to Tenant the Security Deposit or the balance thereof then held by Landlord after application Tenant, at Tenant’s last known address, any portion of the Security Deposit not used by Landlord, as permitted hereunder; provided, however, that provided in no event shall any such return be construed as an admission by this Paragraph. Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for may commingle the Security Deposit unless (and only any advance Rent received by Landlord) with Landlord’s other funds and Landlord shall not pay interest on such Security Deposit to the extent such holder or purchaser shall have actually received the sameTenant. Tenant hereby unconditionally and irrevocably waives the benefits and protections provisions of California Civil Code Section 1950.7, and, without limitation any similar principals of the scope of such waiver, acknowledges that Landlord may use all or any part of law with respect to Landlord’s ability to apply the Security Deposit to compensate Landlord for damages resulting from against future rent damages. Furthermore, upon lawful termination of this the Lease as a result of Tenant’s default, Landlord shall be entitled to immediately apply the Security Deposit against damages without the requirement that Tenant first be given notice and an opportunity to cure, and notwithstanding that the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)have not been finally adjudicated by a court.

Security Deposit. Upon execution of this Lease, Tenant shall pay to Landlord the Security Deposit specified in Paragraph 2.d. 1.7 above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to an amount equal to one hundred ten percent (110%) of the amount specified in Paragraph 2.d1.7 as the same may have been increased by prior applications of this Paragraph 5. Tenant’s failure to make such payment to Landlord within five (5) business days of Landlord’s notice shall constitute an Event of Event of Default. Within thirty (30) days after If Tenant is not in default at the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunderLandlord; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 16.8 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property Industrial Center or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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). Notwithstanding anything to the contrary above, if additional space is added to the Premises after the date hereof, then the amount of the Security Deposit provided for above shall, effective as of the Lease commencement date as to the subject additional space, be increased so that, based on the new total rentable square footage of the Premises (with the additional space added thereto) the amount of the Security Deposit is the same amount per rentable square foot of the Premises that was in effect on the date immediately prior to the date the subject additional space was added to the Premises.

Security Deposit. Upon execution the date of this LeaseLease Commencement, Tenant shall pay to deposit with Landlord the Security Deposit specified cash in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized set forth in Paragraph 2.7, above (the “Security Deposit”), to secure the performance by Tenant of its obligations under this Lease, including without limitation Tenant’s obligations (i) to pay Basic Monthly Rent, Additional Rent, and (if applicable) Percentage Rent, (ii) to repair damages to the Premises and/or the Project caused by Tenant or Tenant’s agents, employees, contractors, licensees, and invitees (collectively, “Tenant’s Invitees”), (iii) to surrender the Premises in the condition required by Paragraph 25, and (iv) to remedy any other defaults by Tenant in the performance of any of its obligations under this Lease. If Tenant commits any default under this Lease, Landlord and the particular purpose for which such amount was appliedmay, Tenant shall immediately deposit with Landlord an amount sufficient to return at its election, use the Security Deposit to cure such defaults, and to compensate Landlord for all damage suffered by Landlord from such defaults, including, without limitation, attorneys’ fees and costs incurred by Landlord. Upon demand by Landlord, Tenant shall promptly pay to Landlord a sum equal to any portion of the Security Deposit so used by Landlord, in order to maintain the Security Deposit in the amount specified set forth in Paragraph 2.d2.7, above (subject to increase as set forth below). Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after Following the expiration Expiration Date or earlier termination of this Lease, and within the time frame required by applicable law, Landlord shall return deliver to Tenant the Security Deposit or the balance thereof then held by Landlord after application Tenant, at Tenant’s last known address, any portion of the Security Deposit not used by Landlord, as permitted hereunder; provided, however, that provided in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property this or any portion thereof, shall be responsible to Tenant for other Paragraph. Landlord may commingle the Security Deposit unless with Landlord’s other funds and only to the extent Landlord shall not pay interest on such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)Tenant.

Security Deposit. Upon Within ten (10) Business Days following the execution of this Lease, Tenant shall pay to deposit with Landlord the Security Deposit. The Security Deposit specified in Paragraph 2.d. above shall be held by Landlord as security for Tenant’s the faithful performance of all the terms of this Lease to be observed and performed by T▇▇▇▇▇. The Security Deposit shall not be mortgaged, assigned, transferred or encumbered by Tenant and any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. Tenant shall cause the Security Deposit to be maintained throughout the term in the amount set forth in Section 1.1. Provided that as of the second (2nd) anniversary of the Commencement Date there are no uncured Defaults of Tenant under this Lease, the Security Deposit shall be reduced to by one-half such that it shall be equal to three (3) months of the Base Rent due per month for Months 5-16 as set forth in the schedule in Section 1.1, as the same may have been adjusted pursuant to Section 3.6 (leaving the Security Deposit at an amount equal to three (3) months of the Base Rent due per month for Months 5-16 as set forth in the schedule in Section 1.1). If Tenant shall be entitled to a reduction in the Security Deposit as aforesaid, Tenant may deliver either an amendment to the Letter of Credit or a new Letter of Credit in the amount of then applicable Security Deposit. If the Annual Fixed Rent or Additional Rent payable hereunder shall be overdue and unpaid or should Landlord make any payment on behalf of the Tenant, or Tenant shall fail to perform any of the terms of this Lease, then Landlord may, at its option and without notice or prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply the entire Security Deposit or so much thereof as may be necessary to compensate Landlord toward the payment of Annual Fixed Rent, Additional Rent or other sums or loss or damage sustained by Landlord due to such breach by Tenant, provided that Landlord shall not appropriate and apply the Security Deposit on account of any breach of this Lease by Tenant unless Tenant’s covenants breach of this Lease shall have ripened into a Default of Tenant (i.e. after any applicable notice and expiration of any applicable cure period); and Tenant shall forthwith upon demand restore the Security Deposit to the amount stated in Section 1.1. Notwithstanding the foregoing, upon the application by Landlord of all or any portion of the Security Deposit (with or without notice thereof to Tenant) to compensate Landlord for a failure by Tenant to pay any Annual Fixed Rent or Additional Rent when due or to perform any other obligation hereunder, and until Tenant shall have restored the Security Deposit to the amount required by Section 1.1, Tenant shall be deemed to be in default in the payment of Additional Rent for purposes of Section 8.1(a)(I) hereof. So long as Tenant shall not be in default of its obligations under this Lease; provided, however, that Landlord shall return the Security Deposit is Deposit, or so much thereof as shall have not an advance rent deposit theretofore been applied in accordance with the terms of this Section 4.7 (and less any amounts Landlord shall estimate shall be due from Tenant following year-end reconciliation of Operating Costs and Taxes) to Tenant within thirty (30) days following the expiration or an advance payment earlier termination of any other kindthe term of this Lease and the surrender of possession of the Premises by Tenant to Landlord in accordance with the terms of this Lease. While Landlord holds the Security Deposit, nor a measure of Landlord shall have no obligation to pay interest on the same and shall have the right to commingle the same with Landlord’s damages upon Tenant’s default. other funds, provided that Landlord shall not be required to segregate keeps an accounting of the Security Deposit from its other funds and no Deposit. If Landlord conveys Landlord’s interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use under this Lease, the Security Deposit Deposit, or any portion part thereof not previously applied, shall be turned over by Landlord to cure any Event of Default or Landlord’s grantee, and Tenant shall look solely to compensate Landlord such grantee for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use proper application of the Security Deposit in accordance with the terms of this Section 4.7 and the return thereof in accordance herewith. The holder of a mortgage on the Property shall not constitute be responsible to Tenant for the return or application of the Security Deposit, whether or not it succeeds to the position of Landlord hereunder, unless such holder actually receives the Security Deposit. Tenant shall post the Security Deposit in the form of a bar letter of credit (the “Letter of Credit”) (which shall be in the form attached as Exhibit K or defense such other form reasonably approved by Landlord, which approval shall not be unreasonably withheld, conditioned or delayed, and which satisfied the requirements of this paragraph), which shall (a) be unconditional and irrevocable and otherwise in form and substance reasonably satisfactory to Landlord; (b) permit multiple draws; (c) be issued by a commercial bank reasonably acceptable to Landlord from time to time; (d) be made payable to, and expressly transferable and assignable at no charge by, Landlord; (e) be payable at sight upon presentment of a sight draft accompanied by a certificate of Landlord stating either that there is a Default of Tenant or that Landlord is otherwise permitted to draw upon such Letter of Credit under the express terms of this Lease, and the amount that Landlord is owed (or is permitted to draw) in connection therewith; and (f) expire not earlier than thirty (30) days following the expiration of the term of this Lease, provided however such Letter of Credit may expire one (1) year following date of issuance but in such case Tenant shall deliver a replacement Letter of Credit and subsequent replacement Letters of Credit not less than thirty (30) days prior to the expiration of any existing Letter of Landlord’s remedies under Credit so that the original Letter of Credit or a replacement thereof (each of whose expiration date shall be not earlier than one year from issuance) shall be in full force and effect throughout the term of this Lease or and for a period of at lawleast ninety (90) days thereafter. In such event and upon written notice from Landlord to Tenant specifying shall maintain the Letter of Credit in the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment deliver to Landlord within five (5) days any replacement Letter of Landlord’s notice shall constitute an Event of Default. Within Credit not less than thirty (30) days after prior to the expiration of the then current Letter of Credit. Notwithstanding anything in this Lease to the contrary, any grace period or termination cure periods which are otherwise applicable under Section 8.1 hereof, shall not apply to any of this Leasethe foregoing, Landlord and, specifically, if Tenant fails to comply with the requirements of subsection (f) above or if Tenant shall return fail to Tenant maintain the Security Deposit or Letter of Credit in the balance thereof then held by Landlord after application full amount of the Security Deposit after any draw thereon by Landlord, Landlord shall have the immediate right to draw upon the Letter of Credit in full and hold the proceeds thereof as permitted hereunder; provideda cash security deposit. Each Letter of Credit shall be issued by a commercial bank that has a credit rating with respect to certificates of deposit, howevershort term deposits or commercial paper of at least P-2 (or equivalent) by M▇▇▇▇’▇ Investor Service, that Inc., or at least A-2 (or equivalent) by Standard & Poor’s Corporation. If the issuer’s credit rating is reduced below P-2 (or equivalent) by M▇▇▇▇’▇ Investor Service, Inc., or at least A-2 (or equivalent) by Standard & Poor’s Corporation, or if the financial condition of the issuer changes in no event any other materially adverse way, then Landlord shall any such return be construed as an admission by Landlord have the right to require that Tenant has performed obtain from a different issuer a substitute Letter of Credit that complies in all respects with the requirements of its covenants this Section, and obligations hereunderT▇▇▇▇▇’s failure to obtain such substitute Letter of Credit within ten (10) days after Landlord’s demand therefor (with no other notice, or grace or cure period being applicable thereto) shall entitle Landlord immediately to draw upon the existing Letter of Credit in full, without any further notice to Tenant. No holder of a Superior Interest (as defined in Paragraph 21 below)Landlord may use, nor any purchaser at any judicial apply or private foreclosure sale retain the proceeds of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only Letter of Credit to the same extent such holder that Landlord may use, apply or purchaser shall have actually received retain any cash security deposit, as set forth herein. If Landlord is entitled to draw on the sameLetter of Credit, Landlord may draw on the Letter of Credit, in whole or in part, at Landlord’s election. If Landlord draws against the Letter of Credit, Tenant shall, within ten (10) days after notice from Landlord, provide Landlord with either an additional Letter of Credit in the amount so drawn or an amendment to the existing Letter of Credit restoring the amount thereof to the amount initially provided. Tenant hereby unconditionally agrees to cooperate promptly, at its expense with L▇▇▇▇▇▇▇ to execute and irrevocably waives the benefits deliver to Landlord any modifications, amendments and protections of California Civil Code Section 1950.7, and, without limitation replacements of the scope Letter of such waiverCredit, acknowledges that as Landlord may use all or any part of reasonably request to carry out the Security Deposit to compensate Landlord for damages resulting from termination of this Lease terms and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)conditions hereof.

Security Deposit. Upon As a condition to Sublandlord’s execution of this LeaseSublease, Tenant Subtenant shall pay deliver to Landlord Sublandlord a $1,000,000 letter of credit (the “Security Deposit”) that is issued by a national banking association and is in form and substance reasonably satisfactory to Sublandlord. The letter of credit shall be valid during the Term of the Sublease and for a period of sixty (60) days following the later of expiration of the Term or Subtenant’s vacation of the Subleased Premises. Upon the occurrence of any Event of Default by Subtenant, Sublandlord shall have the right, without prejudice to any other remedy, and without notice to or pre-approval of Subtenant, to submit a sight draft to the bank that issued the letter of credit representing the Security Deposit specified Deposit, in Paragraph 2.dan amount equal to a sum necessary to pay any arrearages in Rent, and any other damage, injury or expense, provided that such sight draft must be accompanied by a statement from an officer of the Sublandlord setting forth under penalty of perjury that an Event of Default of Subtenant has occurred, and that the amount requested is the amount reasonably believed necessary to cure such Event of Default. above as security for Tenant’s performance If any portion of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit so used or an advance payment applied, then Subtenant shall deliver to Sublandlord a replacement letter of any other kind, nor credit in the amount of $1,000,000 that is issued by a measure national banking association and is in form and substance reasonably satisfactory to Sublandlord and Sublandlord shall return the original letter of Landlord’s damages upon Tenant’s defaultcredit to Subtenant on receipt of the replacement letter of credit. Landlord In no event shall not Sublandlord be required to segregate apply the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect theretoDeposit. Landlord Subtenant may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return apply the Security Deposit to the amount specified in Paragraph 2.dpayment of Rent or the performance of other obligations. TenantThe Security Deposit will not be deemed a limitation on Sublandlord’s failure damages or a payment of liquidated damages. The original letter of credit will be returned to make Subtenant (minus such payment amounts as are reasonably necessary to Landlord within five (5) days of Landlord’s notice shall constitute an cure any then existing Event of Default. Within thirty (30Default by Subtenant) within 30 days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application later of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale expiration of the Real Property Term or any portion thereof, shall be responsible to Tenant for the Security Deposit unless Subtenant’s vacation and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation surrender of the scope of such waiverSubleased Premises in the condition required under the Lease. If Sublandlord transfers its interest in the Sublease during the Term, acknowledges that Landlord may use all or any part of Sublandlord shall assign the Security Deposit to compensate Landlord the transferee (and Subtenant shall execute such documents as may be necessary to effect such transfer), and thereafter Sublandlord shall have no further liability to Subtenant for damages resulting from termination the Security Deposit. Subtenant shall pay all fees charged by the bank issuing the letter of this Lease and credit representing the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Security Deposit.

Security Deposit. Upon execution Tenant has deposited with Landlord the Security Deposit in the amount set forth in the Basic Lease Provisions. The Security Deposit shall be held by Landlord as security for the performance and observance by Tenant of this Leaseall Tenant's obligations hereunder. If the Annual Basic Rent is increased during the Term, then, within fifteen (15) days of notification by Landlord of the increased Annual Basic Rent, without further notice, Tenant shall pay to Landlord the Security Deposit specified in Paragraph 2.d. above an additional amount to be held as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount part of the Security Deposit so utilized that the total Security Deposit held by Landlord is in the same proportion to the increased Annual Basic Rent as the original Security Deposit bore to the original Annual Basic Rent. No interest shall accrue with respect to the Security Deposit. If Tenant performs and observes all of the particular purpose for terms, covenants and conditions of this Lease which such amount was appliedare required to be performed and observed by it and pays all sums due Landlord, Tenant then Landlord shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration Deposit, or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord, without interest, to Tenant within two weeks after Landlord after application recovers and accepts possession of the Security Deposit as permitted hereunder; providedPremises. If Tenant defaults, howeverLandlord may, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of at its covenants option and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below)without notice, nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use apply all or any part of the Security Deposit in payment of rent or to compensate cure any other default. If Landlord for damages resulting from termination does so, then Tenant shall, upon notice of this Lease such application, deposit with the Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the Security Deposit. Landlord shall not be required to hold the Security Deposit as a separate account, but may commingle it with Landlord's other funds. In the event of a sale or other disposition of the Premises, Landlord shall have the right to transfer the Security Deposit to the new owner and deliver to Tenant the tenancy created hereunder (including, without limitation, damages recoverable under California notice required by Section 1950.7 of the Civil Code Section 1951.2)of California. Thereafter, Landlord shall be released by Tenant from all responsibility for the return of such Security Deposit, and Tenant shall look solely to the new owner for the return of such Security Deposit. If Tenant assigns this Lease, Tenant's rights in the Security Deposit shall be deemed to be assigned to the assignee, such Security Deposit shall be held by Landlord as a Security Deposit made by the assignee and Landlord shall have no further responsibility for the return of the Security Deposit to Tenant.

Security Deposit. Upon execution The Security Deposit paid herein represents a security for the faithful performance of the Lease Agreement by the Tenants. At the expiration or termination of the Lease, said Security Deposit will be applied to any damages suffered by the Landlord as result of the Tenant’s occupancy, including, without limitation, required professional cleaning, professional carpet cleaning, and pest control as this was done prior to Tenants taking occupancy. Professional cleaning, carpet cleaning and pest control will be deducted if proof is not shown by Tenant of having services done on move out. The security deposit shall never be construed or intended to be applied as rent, but may be applied against rent and against late charges in the event of a default by Tenants in the payment of said rent or late charges to the Landlord. The Tenants will forfeit the security deposit held by Landlord to the Landlord in the event of any default or breach of this Leaselease. Landlord reserves the right to seek additional damages if they exceed the above amounts. Tenant acknowledges that the premises were clean and in good repair to his/her satisfaction at beginning of his/her occupancy. Exceptions must be recorded on the “Move-in Condition of the House” form. Tenants have fifteen (15) days from the date of moving in to complete it, copy it and mail it to Landlord, otherwise Tenants agree to the Landlord’s description of Premises. Failure to notify Landlord in writing will be construed as evidence of Premises being fully acceptable. The house should be in Move-in Condition at the end of the Lease term. Any refund of security deposit will be by one check. Refund to any Tenant is a refund to all Tenants. Tenants agree to allow Landlord to co-mingle Security Deposit with Landlord’s personal funds in a no interest bearing account at the Wachovia Bank in Gainesville, Florida. The Landlord shall pay mail said security deposit within Thirty (30) days to the forwarding address of Tenant, or mail said party written notice by certified mail of the landlord’s intention to impose a claim against the deposit as required by Statue 83.49(3), Florida Statutes. If Landlord fails to give notice within the thirty (30) day period, she forfeits her right to impose a claim upon the Security Deposit specified in Paragraph 2.dDeposit. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; providedUnless the Tenants object, howeverby certified mail, that to the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure imposition of Landlord’s claim or the amount thereof within 15 days after receipt of the Landlord’s claim for damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying then deduct the amount of her claim and shall remit the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return balance of the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord Tenants within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) 30 days after the expiration or termination day of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application Tenants receipt of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all notice of its covenants and obligations hereunder. No holder of intention to impose a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant claim for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)damages.

Security Deposit. Upon the execution of this Lease, Tenant shall pay to deposit with Landlord $88,333.00 as a security deposit (the "Security Deposit"). The Security Deposit specified in Paragraph 2.d. above shall be held by Landlord without liability for interest and as security for Tenant’s the performance of all by Tenant of Tenant’s 's covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being expressly understood that any use of the Security Deposit shall not constitute be considered an advance payment of rent or a bar measure of Tenant's liability for damages in case of Default by Tenant. Landlord shall have no fiduciary responsibilities or defense trust obligations whatsoever with regard to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by and shall not assume the duties of a trustee for the Security Deposit. Landlord may, from time-to-time, without obligation and the particular purpose for which without prejudice to any other remedy and without waiving such amount was appliedDefault, Tenant shall immediately deposit with Landlord an amount sufficient to return use the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure extent necessary to make such payment to Landlord within five (5) days cure any Default of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in Landlord has no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible obligation to Tenant for use the Security Deposit unless and only to the extent cure any Default of Tenant. Following any such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation application of the scope Security Deposit, Tenant shall pay to Landlord on demand in cash the amount so applied in order to restore the Security Deposit to its original amount. If Tenant is not in Default at the termination of such waiverthis Lease, acknowledges that Landlord may use all or any part the balance of the Security Deposit remaining after any such application shall be returned by Landlord to compensate Tenant. If Landlord for damages resulting from termination transfers its interest in the Premises during the term of this Lease Lease, and the tenancy created hereunder (includingtransferee accepts all legal obligations of Landlord under the Lease, without limitationLandlord may assign the Security Deposit to the transferee and thereafter shall have no further liability for the return of such Security Deposit. Tenant agrees to look solely to such transferee or assignee or successor thereof for the return of the Security Deposit. Landlord and its successors and assigns shall not be bound by any actual or attempted assignment or encumbrance of the Security Deposit by Tenant. Tenant, damages recoverable under California Civil Code Section 1951.2)at its option, may substitute a letter of credit for the cash Security Deposit; provided, however, such letter of credit must be in a form and content acceptable to Landlord, in its sole and absolute discretion.

Security Deposit. Upon In order to secure the payment of the Termination Damages Buyer, upon execution hereof, shall wire transfer, in immediately available funds, in USD and to an account specified by the Seller, an amount equal to 30% of the Purchase Price (the “Security Deposit”). Buyer hereby pledges to Seller, as the secured party, as security for the payment of the Termination Damages, and grants to Seller, a first priority continuing prenda against the Security Deposit. In no event the Security Deposit shall be construed as a down, advance or anticipated payment of the Purchase Price. The transfer of the Security Deposit shall be deemed a necessary condition for the execution of this Lease, Tenant Agreement. Seller shall pay exercise reasonable care to Landlord assure the safe custody of the Security Deposit to the extent required by applicable law, and in any event Seller shall be deemed to have exercised reasonable care if it exercises at least the same degree of care as it would exercise with respect to its own property. Except as specified in Paragraph 2.dthe preceding sentence, Seller shall have no duty with respect to the Security Deposit. above as security for Tenant’s performance The Security Deposit shall accrue no interest in favor of all of Tenant’s covenants and obligations under this Lease; B▇▇▇▇, provided, however, that if the Security Deposit is not returned to Buyer as provided in Sections 9.4 (a) then, together with the reimbursement of the Security Deposit, the Seller shall pay to the Buyer an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required amount equal to segregate the interest accrued by the Security Deposit from its other funds and no interest as provided in Section 9.4(a). Seller shall accrue or be payable entitled to Tenant with respect thereto. Landlord may (but shall not be required to) use hold the Security Deposit or any portion thereof to cure any Event of Default or appoint an agent (a “Custodian”) to compensate Landlord hold the Security Deposit for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use the Seller. The holding of the Security Deposit by a Custodian shall not constitute a bar or defense be deemed to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying be the amount holding of the Security Deposit so utilized by Landlord and the particular purpose Seller for which such amount was appliedthe Custodian is acting. Seller shall have the right to invest, Tenant shall immediately deposit with Landlord an amount sufficient to return use, commingle or otherwise dispose of, or otherwise use in its business the Security Deposit to Deposit. Seller shall be liable vis a vis Buyer for the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all Custodian´s performance of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)obligations.

Security Deposit. Upon execution Landlord hereby acknowledges receipt of this Leasea security deposit in the amount of (the "Security Deposit"), which shall be held by Landlord without interest throughout the Term, and Tenant shall pay hereby pledges such Security Deposit to Landlord the and grants Landlord a continuing, unconditional security interest in such Security Deposit specified in Paragraph 2.d. above as security for Tenant’s to secure the full payment by Tenant of all sums due under this Agreement and the full performance by Tenant of all of Tenant’s covenants and obligations under hereunder. Should Tenant fail to leave the Unit in the condition required hereunder at the expiration or earlier termination of this Lease; providedAgreement, however, that the Security Deposit is not an advance rent deposit or an advance payment of should Tenant otherwise fail to pay any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue sums due or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or Tenant’s obligations hereunder, it being understood that then Landlord may use, apply or retain the whole or any use part of the Security Deposit shall not constitute a bar for the payment of any such sum in default, or defense for any other sum which Landlord may expend or be required to expend by reason of Tenant's failure, including without limitation any costs of Landlord’s remedies under this Lease cure and any damages that Landlord may have incurred by reason of such failure. If Landlord uses, applies or at law. In such event and upon written notice from Landlord to Tenant specifying the amount retains any of the Security Deposit so utilized by Landlord and as aforesaid during the particular purpose for which such amount was appliedTerm, Tenant shall immediately deposit with pay to Landlord an the amount sufficient necessary to return restore the Security Deposit to its original amount. In no event shall the amount specified in Paragraph 2.dSecurity Deposit be considered to be a prepayment of the Occupancy Charge. Tenant’s failure Subject to make such payment to Landlord the requirements of the next sentence, within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the last to occur of the expiration of the Agreement or termination of the date on which Tenant vacated the Unit, and provided that Tenant is in full compliance with this LeaseAgreement at such time, Landlord shall return refund to Tenant any unused portion of the Security Deposit. The following provisions shall also apply to the Security Deposit: a. Tenant will be eligible for a Security Deposit refund upon termination of the tenancy only if Tenant has given Landlord at least 30 days’ advance written notice of intent to move, permanently vacated the Unit, returned to Landlord the keys to the Unit and given to Landlord Tenant’s new address. b. Landlord will inspect the Unit after Tenant has vacated it, complete a Unit Inspection Report and permit Tenant upon request to accompany Landlord during the inspection. c. Landlord will give Tenant a written list of charges that were deducted from the Security Deposit. Landlord will meet with Tenant upon request to informally discuss any disputed fees or the balance thereof then held by Landlord after application charges. d. Tenant acknowledges that no portion of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return will be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only applied to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)last month's Occupancy Charge.

Security Deposit. Upon execution of this Lease, Tenant shall pay to deposit with Landlord the Security Deposit in the amount of $360,000.00 specified in Paragraph 2.d. above as security Item 11 of the Basic Lease Provisions for Tenant’s the performance by Tenant of all of Tenant’s terms, covenants and obligations under conditions of this Lease; provided, however, it being expressly understood and agreed that the Security Deposit such deposit is not an advance rent rental deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon in case of Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to If Tenant defaults with respect thereto. to any provision of this Lease, including, but not limited to, the provisions relating to the payment of rent or the obligation to repair and maintain the Premises or to perform any other term, covenant or condition contained herein, Landlord may (but shall not be required to) ), without prejudice to any other remedy provided herein or provided by law and without notice to Tenant, use the Security Deposit Deposit, or any portion thereof of it, to cure any Event of Default the default or to compensate Landlord for any damage all damages sustained by Landlord incurs as a result of resulting from Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use default. Tenant shall immediately on demand restore and replenish the portion of the Security Deposit shall not constitute a bar expended or defense applied by Landlord as provided in this Section so as to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of maintain the Security Deposit so utilized by Landlord and in the particular purpose for which such amount was applied, Tenant shall immediately deposit sum initially deposited with Landlord an amount sufficient to return Landlord. Although the Security Deposit to shall be deemed the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days property of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after , if Tenant is not in default at the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Tenant within sixty (60) days thereafter. In the event Landlord withholds any funds from the Security Deposit, Landlord shall within said sixty (60) day period provide Tenant with written notice thereof, identifying the specific reasons for damages resulting the withholding of any portion of the Security Deposit, together with the specific dollar amounts related thereto. Landlord shall not be required to keep the Security Deposit separate from termination its general funds and Tenant shall not be entitled to interest on any such deposit. Upon any sale or transfer of its interest in the Building, Landlord may transfer the Security Deposit to its successor-in-interest, and thereupon, Landlord shall be released from any liability or obligation with respect thereto. It is expressly understood that the Security Deposit may only be applied to address Tenant’s defaults hereunder, and may not be applied for any deferred maintenance or other matters with respect to the condition of the Premises which are not the result of a Tenant default during the term of this Lease and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Lease.

Security Deposit. Upon Tenant shall deposit with Landlord, upon Tenant’s execution of this Lease, Tenant the sum of Four Thousand Four Hundred Forty-One Dollars and 67/100 ($4,441.67), to be held by Landlord as Tenant’s “Security Deposit.” Such Security Deposit shall pay be equal to Landlord one monthly installment of Base Rent unless otherwise adjusted as provided for in 3.G. above. 1. If at any time during this Agreement the Security Deposit specified then held on account by Landlord becomes less than the prevailing monthly installment of Base Rent, Tenant will make an additional payment to Landlord so that the Security Deposit held by Landlord is increased to equal one monthly installment of Base Rent, unless otherwise adjusted as provided for in Paragraph 2.d3.G. above. 2. above Landlord shall hold such Security Deposit without interest as security for Tenant’s the performance of all by Tenant of Tenant’s covenants and obligations under this Lease; provided. Landlord may commingle the Security Deposit with Landlord's other funds, howeverand no trust relationship is created with respect to the Security Deposit. Tenant shall not assign, that otherwise transfer, or encumber or attempt to assign, otherwise transfer, or encumber the Security Deposit, and Landlord and its successors and assigns shall not be bound by any actual or attempted assignment, other transfer, or encumbrance. Regardless of any assignment, other transfer, or encumbrance of the Security Deposit by Tenant, Landlord may return the Security Deposit to the Tenant. 3. The Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor Rent or a measure of Landlord’s liquidated damages upon in case of default by Tenant’s . Upon the occurrence of any event of default. , Landlord shall not be required may, from time to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereundertime, it being understood that any use of the Security Deposit shall not constitute a bar or defense without prejudice to any of Landlord’s remedies under this Lease other remedy provided herein or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized provided by Landlord and the particular purpose for which such amount was appliedLaw, Tenant shall immediately deposit with Landlord an amount sufficient to return use the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure extent necessary to make such payment good any arrearages of Rent and any other damage, injury, expense or liability caused to Landlord within five (5) days by such event of default. Following any such application of the Security Deposit, Tenant shall pay to Landlord’s notice , on demand, the amount so applied in order to fully restore the Security Deposit to its required amount. 4. If Tenant is not then in default hereunder, such Security Deposit, less any lawful deductions by Landlord, shall constitute be returned by Landlord to Tenant with an Event accounting of Default. Within said deductions taken no later than thirty (30) days after following the termination or expiration or termination of this Hangar Lease, Landlord shall return to Tenant . Permitted deductions from the Security Deposit may include but not be limited to: unpaid Base Rent; unpaid utility charges incurred by Tenant; unpaid service charges; damages by Tenant to the Premises (beyond normal wear and tear) or repairs by Landlord; replacement cost of Landlord’s property that was in or attached to the balance thereof then held Premises and is missing; cost to replace unreturned keys; agreed reletting charges; Landlord’s cost of cleaning the Premises to a broom- swept condition if required; Landlord’s cost of removal of any trash or debris left in the Premises; Landlord’s cost of the removal and storage of Tenant’s personal property left or abandoned by Tenant or otherwise disposed of by Landlord; Landlord’s cost of removal of unauthorized vehicles or aircraft left on the Premises; government fees or fines against Landlord because of Tenant; late fees and other costs of collection incurred by Landlord after application of the Security Deposit as permitted hereunderin connection with this Lease; provided, however, interest that in no event shall any such return be construed as an admission would have been earned by Landlord that Tenant has performed all of its covenants on unpaid balances; attorneys’ fees, court costs and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)filing fees.

Security Deposit. Upon Tenant's execution of this Lease, Tenant shall pay deliver to Landlord the Landlord, as a Security Deposit specified in Paragraph 2.d. above as security for Tenant’s the performance by Tenant of all of Tenant’s covenants and its obligations under this Lease; provided, howeverthe amount specified in the Basic Lease Information. If Tenant is in default (beyond applicable notice and cure periods, that the Security Deposit is not an advance rent deposit or an advance payment of any other kindif any), nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required may, but without obligation to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) do so, use the Security Deposit Deposit, or any portion thereof thereof, to cure any Event of Default the default or to compensate Landlord for any damage all damages sustained by Landlord incurs as resulting from Tenant's default, including, but not limited to the Enforcement Expenses. Tenant shall, immediately on demand, pay to Landlord a result of Tenant’s failure sum equal to perform any of its covenants or obligations hereunder, it being understood that any use the portion of the Security Deposit shall not constitute a bar so applied or defense used so as to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying replenish the amount of the Security Deposit so utilized by held to increase such deposit to the amount initially deposited with Landlord. At any time after Tenant has defaulted hereunder, Landlord and may require an increase in the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return of the Security Deposit required hereunder for the then balance of the Lease Term and Tenant shall, immediately on demand, pay to Landlord additional sums in the amount specified of such increase, provided that at no time shall Tenant be required to deposit an amount larger than the then applicable Security Deposit Cap. The "Security Deposit Cap" at any time shall be computed by increasing the initial security deposit amount set forth in Paragraph 2.dthe Basic Lease Information above by four percent (4%) per annum compounded annually from the Commencement Date through the date of computation of the cap. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days As soon as practicable after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit to Tenant, less such amounts as are reasonably necessary, as determined solely by Landlord, to remedy Tenant's default(s) hereunder or to otherwise restore the balance thereof then held Premises to the condition required by this Lease. If the cost to restore the Premises exceeds the amount of the Security Deposit, Tenant shall promptly deliver to Landlord after application any and all of such excess sums as reasonably determined by Landlord. Landlord shall not be required to keep the Security Deposit separate from other funds, and, unless otherwise required by law, Tenant shall not be entitled to interest on the Security Deposit. In no event or circumstance shall Tenant have the right to any use of the Security Deposit and, specifically, Tenant may not use the Security Deposit as permitted a credit or to otherwise offset any payments required hereunder; provided, howeverincluding, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below)but not limited to, nor any purchaser at any judicial or private foreclosure sale of the Real Property Rent or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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).

Security Deposit. Upon The Security Deposit, in the amount set forth in Section 1.H. above, shall be delivered to Landlord upon the execution of this Lease, Lease by Tenant and shall pay to be held by Landlord the Security Deposit specified in Paragraph 2.d. above without liability for interest (unless required by Law) as security for Tenant’s the performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the obligations. The Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor Rent or a measure of Landlord’s damages upon Tenant’s defaultliability for damages. Landlord shall not be required may, from time to segregate the Security Deposit from its time, without prejudice to any other funds and no interest shall accrue remedy, use all or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any a portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar to satisfy Rent which remains unpaid after notice and the expiration of any applicable cure period or defense to cure any other default by Tenant which remains uncured after notice and the expiration of Landlord’s remedies under this Lease or at lawany applicable cure period. In such event and upon written notice from If Landlord to Tenant specifying the amount of uses the Security Deposit so utilized by Landlord and the particular purpose for which such amount was appliedDeposit, Tenant shall immediately deposit with Landlord an amount sufficient to return on demand restore the Security Deposit to its original amount. If Tenant is not in default at the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the any unapplied balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate Tenant within thirty (30) days after Tenant surrenders 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. Such estimate shall be final and binding upon Tenant. If Landlord transfers its interest in the Premises, Landlord may assign the Security Deposit to the transferee and, following the assignment, Landlord shall have no further liability for damages resulting the return of the Security Deposit. Landlord shall not be required to keep the Security Deposit separate from termination its other accounts. Tenant hereby waives the provisions of this Lease and Section 1950.7 of the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Code, or any similar or successor Laws now or hereinafter in effect.

Security Deposit. Upon As of the execution date of this Lease, Tenant shall pay deposit the sum of TWENTY-ONE THOUSAND THREE HUNDRED AND NO/100 DOLLARS ($21,300.00) with Landlord, such amount (the "Security Deposit") to be held by Landlord the Security Deposit specified in Paragraph 2.d. above as security for Tenant’s the performance by Tenant of all of Tenant’s covenants and obligations under this Lease; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use each of the Security Deposit shall not constitute a bar or defense to any terms and provisions of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord on Tenant's part to Tenant specifying be performed; provided that the amount of the Security Deposit so utilized by shall be adjusted in the event that the net rentable floor area of the Premises is adjusted upon finalizing the preliminary space plan or in the event that the net rentable floor area of the Premises is adjusted upon finalizing the preliminary space plan or in the event Tenant exercises the Expansion Option. Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return hold the Security Deposit to in a separate interest-bearing account; provided that (i) the amount specified income tax due on interest earned shall be paid by Tenant and (ii) all accrued interest shall remain in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then account and be held by Landlord after application as part of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunderDeposit. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or apply any part of the Security Deposit to compensate satisfy any default of Tenant and any expenses arising from such default including, but not limited to, any damages or deficiency in payment of Base Rent or Additional Rent before or after re-entry by Landlord; provided that Tenant shall, upon demand, deposit with Landlord for damages resulting from termination the full amount so applied, in order that Landlord shall have the full Security Deposit on hand at all times during the Term of this Lease Lease. If Tenant shall comply fully with all of the terms of this Lease, then the Security Deposit shall be returned to Tenant after the Expiration Date of the Lease. In the event of a sale or lease of the Property or any portion thereof which includes the Building, Landlord may transfer the Security Deposit to the purchaser thereof, and Landlord shall thereupon be released from all liability for the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)return of the Security Deposit. This provision shall apply to every transfer or assignment of the Security Deposit to a new landlord. Tenant shall not be permitted to assign or encumber the Security Deposit.

Security Deposit. Upon execution of this Leaselease, Tenant shall pay deliver to Landlord a security deposit in the amount of $651,956.80 (Initial Security Deposit specified in Paragraph 2.d. above Deposit), as security for Tenant’s Tenants performance of all of Tenant’s 's covenants and obligations under this Lease; provided, however, that the said Initial Security Deposit is shall not be deemed an advance rent deposit or an advance payment of any other kind, nor or a measure of Landlord’s damages 's damage upon Tenant’s 's default. If Tenant fails to pay Base Rent or Additional Rent as required hereunder, or otherwise defaults with respect to any provision of this Lease, Landlord may use, apply or retain all or any portion of said Initial Security Deposit for the payment of any Base Rent or Additional Rent in default or for the payment of any other sum 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, including without limitation, the cleaning, restoration and repair of the Premises. Landlord and Tenant agree that the Initial Security Deposit shall be invested in an interest bearing "money market" account in the name of the Landlord and shall be deposited at a interest rate and with a banking institution of Landlord's choice, both in Landlord's sole and absolute discretion. Tenant acknowledges that preservation of the principal balance of the Initial Secuirty Deposit is an important consideration with respect to its investment, and as such, Tenant hereby waives any claims, past, present or future with respect to the method of investment of the Initial Security Deposit, including, but not limited to, any claim that alternative investment options may have earned a higher rate of interest; provided, however, that Landlord shall bear all risk with respect to any loss or reduction in the principle balance of the Initial Security Deposit. Provided that (i) Tenant is not in breach of or in default under the Lease and there exists no act or omission on the part of Tenant which, with the passage of time or the giving of notice, or both would constitute a breach of or default under the Lease, and (ii) the Initial Security Deposit has not been used, applied or retained by Landlord pursuant to the foregoing provisions of this Article 5, then (a) as and when the monthly installments of Base Rent come due with respect to each of the second (2nd) through seventeenth (17th) months of the Term, the Initial Security Deposit shall be reduced by the amount of $38,350.40 and such amount will be applied as a credit to pay the respective monthly installments of Base Rent as and when they become due during the second (2nd) through the seventeenth (17th) months of the Term and (b) as and when the monthly installment of Base Rent comes due with respect to the eighteenth (18th) month of the Term, the entire remaining balance (including interest earned thereon) of the Initial Security Deposit shall be disbursed to Tenant (as opposed to being applied as a credit against Base Rent) provided; however, that said disbursement shall be conditioned upon Tenant first providing Landlord a cash deposit in the amount of $38,350.40 (Replacement Security Deposit), as security for Tenant's continued faithful performance of all of Tenant's covenants and obligations under this Lease. Landlord shall not be required to segregate the keep said $38,350.40 Replacement Security Deposit from its as a separate fund, but may commingle it with other funds and no interest shall accrue or be payable to funds. If Tenant with respect thereto. Landlord may (but shall not be required to) use the performs all of Tenant's obligations hereunder, said Replacement Security Deposit or any portion thereof so much as has not theretofore been applied by Landlord, shall be returned, without payment of interest or other increment for its use, to cure any Event of Default or Tenant (or, at Landlord's option, to compensate Landlord for any damage Landlord incurs as a result the last assignee, if any, of Tenant’s failure to perform any of its covenants or obligations 's interest hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord ) within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; providedterm hereof, however, that in no event shall any such return be construed as an admission by Landlord that or after Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below)vacated the Premises, nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)whichever is later.

Security Deposit. Upon execution of this Lease, Tenant shall pay to Landlord the The Security Deposit specified in Paragraph 2.d. above shall be held by Landlord without obligation for interest thereon as security for Tenant’s the performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the . The Security Deposit is not an advance rent rental deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon in case of Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder Upon each occurrence of a Superior Interest Default (as defined in Paragraph 21 belowSection 20), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit to compensate pay delinquent payments due under this Lease, future rent damages, and the cost of any damage, injury, expense or liability caused by such Default, without prejudice to any other remedy provided herein or provided by law. Landlord’s right to use the Security Deposit under this Section 6 includes the right to use the Security Deposit to pay future rent damages following the termination of this Lease pursuant to Section 21(c) below. Upon any use of all or any portion of the Security Deposit, Tenant shall pay Landlord on demand the amount that will restore the Security Deposit to its original amount. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for damages resulting periods prior to the filing of such proceedings. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee; no interest shall accrue thereon. The Security Deposit shall be the property of Landlord, but shall be paid to Tenant when Tenant’s obligations under this Lease have been completely fulfilled. Landlord shall be released from termination any obligation with respect to the Security Deposit upon transfer of this Lease and the tenancy created hereunder Premises to a person or entity assuming Landlord’s obligations under this Section 6. Tenant hereby waives the provisions of any law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. The Security Deposit, or any balance thereof (includingi.e., without limitationafter deducting therefrom all amounts to which Landlord is entitled under the provisions of this Lease), shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within 90 days after the expiration or earlier termination of this Lease. If Landlord transfers its interest in the Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this Section 6, or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to such transferee or the return of the Security Deposit to Tenant, Landlord shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages recoverable under California Civil Code Section 1951.2)in case of Tenant’s default. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon.

Security Deposit. Upon execution of this Leasethe Concession Agreement, Tenant Concessionaire shall pay deposit with the Trust the amount provided in Part I, Section 1.8 (“Security Deposit”) by certified check payable to Landlord “▇▇▇▇▇▇ River Park Trust” or to the order of such other entity as The Trust may designate in writing. The Trust may use, retain or apply all or any portion of the Security Deposit specified to satisfy any cost or expense arising from the occurrence of a default by Concessionaire hereunder, or any other cost or expense incurred by The Trust in Paragraph 2.d. above as security for Tenant’s performance connection with the failure of all Concessionaire to pay Fees hereunder, when such Fees or other amount becomes due and payable, or the failure of Tenant’s covenants and obligations under this Lease; providedConcessionaire to perform when due any other term, howevercovenant or condition of the Concession Agreement, or to satisfy any liability incurred by Concessionaire to the Trust, provided that the application of any portion of the Security Deposit is not an advance rent deposit or an advance payment to the cure of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord such default shall not be required deemed to segregate have cured such default unless the Security Deposit from its other funds and no interest entire outstanding amount due or damages suffered by the Trust shall accrue have been paid in full. If the Trust uses or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use applies the Security Deposit or any portion part thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was appliedforegoing purposes, Tenant Concessionaire shall immediately deposit with Landlord The Trust an amount sufficient to return restore the Security Deposit to its amount prior to such use or application. The Security Deposit shall be returned to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord Concessionaire within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Leasethe Concession Agreement, Landlord shall return without interest, subject to Tenant any outstanding substantiated claims, costs or liabilities that the Security Deposit Trust, has or the balance thereof then held by Landlord after application may reasonably expect to have, that are attributable to or arise out of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale use of the Real Property or any portion thereof, shall be responsible to Tenant for Premises by the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such 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)Concessionaire.