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 tenant agrees to pay the Landlord a deposit of . It is agreed between the Tenant and the Landlord that interest on the deposit shall be compounded annually and be paid to the Tenant at the termination of tenancy in accordance with current statutory requirements. At the time of the signing of this Leaseagreement, Tenant shall pay to the interest rate paid on security deposits is 0%. The Landlord may deduct from 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, deposit any amounts that the Security Deposit is not an advance rent deposit Landlord seems necessary to provide for: (a) repairing any damage or an advance payment of loss to the premises, fixtures, furniture, appliances and any other kinditems leased pursuant to the Lease which damages may have been cause by the Tenant (any damage or residual odor left by pets; ▇▇▇▇▇ and other marks on carpets, nor a measure of Landlord’s damages upon Tenant’s default. Landlord furnishings and walls shall not be required considered normal wear and tear) (b) cleaning the premises and any property rented with it, (including but not limited to segregate professional cleaning of carpet and drapery) if 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 gives up possession of the Security Deposit shall not constitute a bar premises in such condition that the premises require cleaning; (c) payment of rent 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 other fees owing 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 by the expiration or termination of this Lease, Landlord shall return to Tenant upon 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; (d) the discharge of any other obligations or liabilities of the Tenant to the Landlord (e) recovery of lost revenue or expenditures incurred for the time that the suite is unavailable for rent while outstanding issues cause by the Tenant are being addressed (ie the property is being cleaned or damages are being repaired) The Tenant is responsible for the amount of any damages or cleaning costs in excess of the deposit. It is further agreed and understood that the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Tenant cannot apply the security deposit against any rent owing to the Landlord during the tenancy. The Tenant agrees that any security deposit refundable to the Tenant may be paid by the Landlord to any of the tenants or to all names shown by the tenants.

Security Deposit. Upon execution The Tenant shall keep on deposit with the Landlord at all times during the term of this Lease the Security Deposit specified on the Lease Lease Agreement Facing Page hereof as security for the payment by the Tenant of the Rent and any other sums due under this Lease and for the faithful performance of all the terms, conditions, and covenants 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, it being expressly understood that the Security Deposit is shall not an advance rent deposit or an be considered advance payment of any other kind, nor Rent or a measure of Landlord’s damages upon in the case of default by Tenant. Security Deposit is due in full prior to Tenant’s defaultpossession of the Premises. Landlord shall not be required to segregate Any interest earned on the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect theretoretained by Landlord. If an event of a default set forth in Section 35.1 occurs, the Landlord may (but shall not be required to) use the Security Deposit any such deposit, or so much thereof as necessary in payment of any Rent 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 other sums due under this Lease in default, in reimbursement of any expense incurred by the Landlord, and to repair any damage or at lawto clean, paint, carpet and fumigate the Leased Premises after termination of possession by Tenant. In such event and upon the Tenant shall on written notice from Landlord to Tenant specifying the amount demand 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 forthwith remit to the Landlord a sufficient amount specified in Paragraph 2.dcash to restore such deposit to its original amount. Tenant’s failure to make If 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 has not been utilized as aforesaid, such deposit, or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance as much thereof then held by Landlord after application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any has not been utilized for 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 thereofpurposes, shall be responsible to Tenant for the Security Deposit unless and only refunded 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 upon full performance of this Lease by the Tenant. Landlord shall have the right to commingle such deposit with other funds of the Landlord, and such deposit need not be kept in an escrow or other segregated account. Landlord shall deliver the tenancy created hereunder (includingfunds deposited herein by the Tenant to any purchaser of the Landlord’s interest in the Leased Premises in the event such interest be sold, without limitationand thereupon, damages recoverable under California Civil Code Section 1951.2)the Landlord shall be discharged from further liability with respect to such deposit.

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 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 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) business 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 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 The Security Deposit shall be delivered to Landlord upon the execution of this Lease by Tenant and shall be held by Landlord without liability for interest (except as required by law) and as security for the performance of Tenant's obligations under this Lease. The Security Deposit shall not be considered an advance payment of Rent or a measure of Tenant's liability for damages. Landlord may, from time to time, without prejudice to any other remedy, use all or a portion of the Security Deposit to make good any arrearage of Rent, to repair damages to the Premises, to clean the Premises upon termination of this Lease or otherwise to satisfy any other covenant or obligation of Tenant hereunder. Following 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 termination of all of Tenant’s covenants and obligations under this Lease; , after Tenant surrenders the Premises to Landlord in accordance with this Lease and all amounts due Landlord from Tenant are finally determined and paid by Tenant or through application of the Security Deposit, the balance of the Security Deposit remaining after any such application shall be returned to Tenant. If Landlord transfers its interest in the Premises during the Lease Term, Landlord 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 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, provided, however, if Tenant's interest in this Lease has been assigned, Landlord shall, provided that Landlord has been furnished with a fully executed copy of the agreement assigning such Security Deposit, return the Security Deposit is not an advance rent deposit or an advance payment of to such assignee in accordance with the terms and conditions hereof. If Landlord return the Security Deposit to Tenant's assignee as aforesaid, Landlord will have no further obligation to any other kind, nor a measure of Landlord’s damages upon Tenant’s defaultparty with respect thereto. 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 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)accounts.

Security Deposit. Upon execution of this LeaseOn the Effective Date, Tenant shall deposit with Landlord the Security Deposit as set forth in Paragraph 16 of the Summary of Basic Lease Terms as security for the full and faithful performance by Tenant of all Tenant’s obligations hereunder. No interest shall be paid upon the Security Deposit nor shall Landlord be required to maintain the deposit in a segregated account. The Security Deposit shall not be construed as prepaid Rent. In the event that Tenant shall fail to cure a default under this Lease within the time allowed for cure, then Landlord may retain the Security Deposit, or a portion thereof, and apply it toward any damages sustained by Landlord, including but not limited to actual damages sustained by the Landlord by reason of the default of Tenant, including any past due Rent. Upon each such application, Tenant shall, on demand, pay to Landlord the sum so applied, which shall be added to the Security Deposit specified so that the same shall be restored to the amount first set forth above. In the event of bankruptcy or other debtor-creditor proceedings, either voluntarily or involuntarily instituted by or against Tenant, the Security Deposit shall be deemed to be applied in Paragraph 2.dthe following order: to actual damages caused by Tenant beyond ordinary wear and tear, obligations and other charges, including any damages sustained by Landlord, other than unpaid Rent, due to Landlord for all periods prior to the filing of such proceedings; to accrued and unpaid Rent 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. above as security for Tenant’s performance In the event of a sale of the Building, Landlord shall have the right to transfer the Security Deposit to the buyer, and, assuming the buyer assumes all of TenantLandlord’s covenants and obligations under this Lease; provided, however, that Lease and with respect to the Security Deposit Deposit, Landlord shall have no further obligation regarding the Security Deposit. If Tenant is not an advance rent deposit or an advance payment of any other kindthen in default under this Lease, 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 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 forty-five (45) 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 forty-five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (3045) 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)Leased Premises.

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 (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 with the execution and delivery of this Lease by Tenant, Tenant shall deliver to Landlord an unconditional, irrevocable and renewable standby letter of credit (the “Letter of Credit”) naming Landlord as beneficiary, in favor of Landlord and in the form attached hereto as Appendix 5, or other form reasonably acceptable to Landlord. The Letter of Credit shall be issued by a bank reasonably satisfactory to Landlord with a branch located in California in the principal amount of $179,697.00 (hereinafter, the “Stated Amount”). The form and content of the Letter of Credit shall conform to International Standby Practices 1998 International Chamber of Commerce Publication No. 590. The Letter of Credit shall state that an authorized officer or other representative of Landlord may make demand on Landlord’s behalf for the Stated Amount, or any portion thereof, upon certifying that such sum is due and owing to Landlord under 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 issuing bank must immediately honor such demand, without qualification or satisfaction of any conditions, except the proper identification of the party making such demand. In addition, the Letter of Credit shall indicate that it is not an advance rent deposit freely transferable in its entirety by Landlord as beneficiary to any person or an advance entity to whom Landlord’s leasehold interest in the Building is transferred by Landlord, and that upon receiving written notice of transfer certifying that Landlord’s leasehold interest in the Building has been transferred to such transferee, and upon presentation to the issuing bank of the original Letter of Credit together with Landlord’s payment of any other kindthe issuing bank’s fee required for transfer of the Letter of Credit from Landlord to such transferee, nor a measure the issuer or confirming bank will reissue the Letter of Landlord’s damages upon Tenant’s defaultCredit naming such transferee as the beneficiary. Landlord The Letter of Credit may be re-issued or renewed provided that except as provided herein, the Letter of Credit amount shall not be required reduced below the Stated Amount at any time during the Term of the Lease. Each renewal or replacement Letter of Credit shall be in substantially the same form as the original Letter of Credit or such form as is otherwise reasonably acceptable to segregate Landlord. In the Security Deposit from its other event that Tenant fails to renew or re-issue the Letter of Credit at least twenty (20) days prior to the expiration of the then existing Letter of Credit, Landlord shall be entitled to make demand for the Stated Amount of said Letter of Credit and, thereafter, to hold such funds and no interest as a cash security deposit in accordance with Section 2.6.5 of the Lease. Once deposited with Landlord, the Letter of Credit (or a replacement thereof reasonably acceptable to Landlord) shall accrue or be payable to remain in effect for a period of at least sixty (60) days following the Term Expiration. Upon any Default by Tenant with respect thereto. beyond the applicable cure period, Landlord may (but shall not be required to) use the Security Deposit draw upon all or any portion thereof of the Stated Amount of the Letter of Credit, and Landlord may then hold such proceeds as a cash security deposit and/or use, apply or retain all or any part of the proceeds for the payment of any sum which is in default, or for the payment of any other amount which Landlord may spend or become obligated to cure any Event spend by reason of Default Tenant’s default or to compensate Landlord for any 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 portion of the Security Deposit Letter of Credit proceeds is so used or applied, Tenant shall, within ten (10) days after demand therefor, post an additional Letter of Credit in an amount to cause the aggregate amount of the unused proceeds and such new Letter of Credit to equal the Stated Amount required in this Section 2.6. Landlord shall not constitute a bar or defense be required to keep any proceeds from the Letter of Landlord’s remedies Credit separate from its general funds. Should Landlord transfer its interest in the Premises during the Lease Term Landlord shall deposit with the purchaser thereof the Letter of Credit and all proceeds of the Letter of Credit required under this Lease or at lawto be held by Landlord immediately prior to such transfer, thereupon Landlord shall be discharged from any further liability with respect to the Letter of Credit and said proceeds. In such event and upon written notice from Landlord to Tenant specifying the amount Any remaining proceeds 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 Letter 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 Credit held by Landlord after application expiration of the Security Deposit as permitted hereunder; providedLease Term, however, that after any deductions described 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 thereofthis Section 2.6.1, shall be responsible returned to Tenant for or, if there has been an assignment of the Security Deposit unless and only Lease, to the extent such holder or purchaser shall last assignee of Tenant’s interest hereunder, after all of Tenant’s obligations 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)been fulfilled.

Security Deposit. Upon 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 Tenant’s covenants . The Security Deposit shall not be mortgaged, assigned, transferred or encumbered by Tenant and obligations under this Lease; provided, however, that 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 is not an advance rent deposit to be maintained throughout the term in the amount set forth in Section 1.1. If the Annual Fixed Rent or an advance Additional Rent payable hereunder shall be overdue and unpaid or should Landlord make any payment on behalf of any other kindthe Tenant, nor a measure of Landlord’s damages upon Tenant’s default. Landlord or Tenant 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 fail to perform any of the terms of this Lease, then Landlord may, at its covenants option and without notice or obligations hereunderprejudice to any other remedy which Landlord may have on account thereof, it being understood that any use of appropriate and apply the entire Security Deposit shall not constitute a bar or defense so much thereof as may be necessary to any compensate Landlord toward the payment of Landlord’s remedies under this Lease Annual Fixed Rent, Additional Rent or at law. In such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized other sums or loss or damage sustained by Landlord due to such breach by Tenant; and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return forthwith upon demand restore the Security Deposit to the amount specified stated in Paragraph 2.dSection 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’s ) to compensate Landlord for a failure by Tenant to make such 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 to Landlord within five (5of Additional Rent for purposes of Section 8.1(i) days hereof. So long as Tenant shall not be in default of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of its obligations under this Lease, Landlord shall return the Security Deposit, or so much thereof as shall have not theretofore been applied in accordance with the terms of this Section 4.7, to Tenant promptly following the expiration or earlier termination of the term of this Lease and the surrender of possession of the Premises by Tenant to Landlord in accordance with the terms of this Lease. While Landlord holds the Security Deposit Deposit, Landlord shall have no obligation to pay interest on the same and shall have the right to commingle the same with Landlord’s other funds. If Landlord conveys Landlord’s interest under this Lease, the Security Deposit, or the balance any part thereof then held not previously applied, shall be turned over by Landlord after to Landlord’s grantee, and Tenant shall look solely to such grantee for proper application of the Security Deposit as permitted hereunder; provided, however, that in no event shall any such accordance with the terms of this Section 4.7 and the return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunderthereof in accordance herewith. No The holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of mortgage on the Real Property or any portion thereof, shall not be responsible to Tenant for the Security Deposit unless and only to the extent such holder return 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 application of the Security Deposit Deposit, whether or not it succeeds to compensate the position of Landlord for damages resulting from termination of this Lease and hereunder, unless such holder actually receives the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Security Deposit.

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 11.1. Tenant shall deposit with Landlord on or before the Execution Date the sum set forth in Section 2.6 (the “Security Deposit”), which sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of Tenant’s obligations under this Lease. If Tenant Defaults (as defined below) with respect to any provision of this Lease, Tenant shall pay including any provision 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, 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. then Landlord 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 to cure any Event of Default other sum in default, or to compensate Landlord for any other loss or damage that Landlord incurs as a result may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to perform any do so shall be a material breach of its covenants this Lease. The provisions of this Article shall survive the expiration or obligations hereunderearlier termination of this Lease. TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, it being understood that any use AS THE SAME MAY BE AMENDED FROM TIME TO TIME. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall not constitute a bar or defense 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. 11.3. Landlord may deliver to any purchaser of Landlord’s remedies under interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. Landlord shall provide notice of such transfer to Tenant, which notice shall include the name and address of the transferee. This provision shall also apply to any subsequent transfers. 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or at law. In such event and upon written notice from Landlord any balance thereof, 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(or, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit at Landlord’s option, to the amount specified in Paragraph 2.d. last assignee 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 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 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 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 (a) Tenant's Security Deposit, which shall be delivered by Tenant to Landlord, together with the first (1st) month's payment of Base Rent and Equipment Space Rent concurrently with Tenant's delivery to Landlord of this LeaseLease as executed by Tenant, Tenant shall pay to Landlord the Security Deposit specified in Paragraph 2.d. above be held by Landlord, without liability for interest, as security for Tenant’s the performance of all of Tenant’s covenants and 's 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 keep the Security Deposit segregated from its other funds and no interest shall accrue or be payable to of Landlord. Tenant with respect thereto. Landlord may (but shall not be required to) assign or in any way encumber the Security Deposit. Upon the occurrence of any default by Tenant (beyond the giving of acceptable notice and the passage of applicable grace periods), Landlord shall have the right, without prejudice to any other remedy, to use the Security Deposit Deposit, or portions thereof, to the extent necessary to pay any arrearages in Rent, and any other damage, injury or expense. Following any such application of all or any portion thereof of the Security Deposit, Tenant shall pay to cure any Event Landlord, on demand, the amount so applied in order to restore the Security Deposit to its original amount (or if the Security Deposit is a Letter of Default Credit, Tenant may either deliver cash, a replacement Letter of Credit, or to compensate Landlord for any damage Landlord incurs as a result an additional Letter of Tenant’s failure to perform any of its covenants or obligations Credit). Provided Tenant is not in default hereunder, it being understood that Landlord will return any use unapplied 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 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 later to occur of (i) the expiration or termination of the Term, and (ii) Tenant's vacancy of the Premises and Building in accordance with the provisions of this Lease. (b) If the Security Deposit is in the form of a Letter of Credit , the Letter of Credit shall (i) be in form and substance satisfactory to Landlord; (ii) name Landlord as its beneficiary; (iii) be drawn on an FDIC insured financial institution satisfactory to the Landlord; (iv) expressly allow Landlord to draw upon it: (A) in the event that the Tenant is in default under the Lease by delivering to the issuer of the Letter of Credit written notice that Landlord is entitled to draw thereunder pursuant to the terms of this Lease; or (B) if Tenant, within sixty (60) days prior to expiration of the Letter of Credit then held by Landlord, fails to provide Landlord with a replacement Letter of Credit meeting the requirements herein; (v) expressly state that it will be honored by the issuer without inquiry into the accuracy of any such notice or statement made by Landlord; (vi) expressly permit multiple or partial draws up to the stated amount of the Letter of Credit; (vii) expressly provide that it is transferable to any successor of Landlord; and (viii) expire no earlier than sixty (60) days after the Expiration Date (alternatively, the Letter of Credit [and any renewals or replacements thereof] may be for a term of not less than one (1) year; in such event Tenant agrees that it shall from time to time, as necessary, [whether as a result of a draw on the Letter of Credit by Landlord pursuant to the terms hereof or as a result of the expiration of the Letter of Credit then in effect], renew or replace the original and any subsequent Letter of Credit so that a Letter of Credit, in the amount required hereunder, is in effect until a date which is at least sixty (60) days after the Expiration Date. If Tenant fails to furnish such renewal or replacement at least thirty (30) days prior to the stated expiration date of the Letter of Credit then held by Landlord, Landlord may draw upon such Letter of Credit and hold the proceeds thereof [and such proceeds need not be segregated] as a Security Deposit pursuant to the terms of this Article 18). (c) Any renewal of or replacement for the original or any subsequent Letter of Credit shall meet the requirements for the original Letter of Credit as set forth above, except that such replacement or renewal shall be issued by a national bank satisfactory to Landlord at the time of the issuance thereof. Landlord agrees that in the event of any event which would give Landlord the right to draw upon the Letter of Credit, Landlord shall return only draw down such amount as Landlord reasonably believes to be necessary to cure or remedy any default on the part of Tenant and to reimburse Landlord for any costs, expenses or liability incurred in connection with such default; notwithstanding the Security Deposit foregoing, if the amount of any draw upon the Letter of Credit exceeds the amount necessary to reimburse Landlord for such costs, expenses or liability, any excess proceeds of any draw on the balance thereof then Letter of Credit shall be held by Landlord after application of the as a 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 pursuant 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)Article 18.

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 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 '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 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 under Chapter 83, Florida Statutes, 2006, 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, including, without limitation, Chapter 83, Florida Statutes, 2006, 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 (i.e., after 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 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 Concurrently with Subtenant’s execution of this LeaseSublease, Tenant Subtenant shall deposit with Sublandlord the sum of $31,160.00 (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 defaults in its obligation to pay Rent or other sums due hereunder, or otherwise defaults with respect to Landlord any provisions of this Sublease and fails to cure such default within the applicable cure period, 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) days after demand 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. If Subtenant performs all of Subtenant’s obligations hereunder, the Security Deposit, or so much thereof as has not theretofore been applied by Sublandlord, shall be returned, without interest, to Subtenant (or, at Sublandlord’s option, to the last assignee, if any, of Subtenant’s interest hereunder) following the expiration of the Term, and after Subtenant has vacated the Subleased Premises. No trust relationship is created herein between Sublandlord and Subtenant with respect to the Security Deposit. Sublandlord shall not be required to segregate keep the Security Deposit separate from its other funds accounts. Subtenant hereby waives any and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use all rights under and the Security Deposit or any portion thereof to cure any Event benefits 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 Section 1950.7 of the Security Deposit shall not constitute a bar California Civil Code, and all other provisions of law now in force 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 that become 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 force after the expiration or termination date of execution of this LeaseSublease, 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 the same provide that Sublandlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Subtenant, or purchaser shall have actually received to clean the sameSubleased Premises. Tenant hereby unconditionally Sublandlord and irrevocably waives the benefits and protections of California Civil Code Section 1950.7Subtenant agree that Sublandlord may, andin addition, without limitation of the scope of such waiver, acknowledges that Landlord may use all or any part of the Security Deposit claim those sums reasonably necessary to compensate Landlord Sublandlord for damages resulting from termination any other foreseeable or unforeseeable loss or damage caused by the act or omission of this Lease and the tenancy created hereunder (includingSubtenant or Subtenant’s officers, without limitationagents, damages recoverable under California Civil Code Section 1951.2)employees, independent contractors, or invitees.

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 execution of this Lease, Tenant shall pay to deposit with Landlord the Security Deposit specified in Paragraph 2.d. above Deposit, as security for Tenant’s the prompt, full and faithful performance by Tenant of each and every provision of this Lease and of all obligations of Tenant hereunder. The Security Deposit shall be in the form of cash. If an Event of Default occurs, Landlord may use, apply or retain the whole or any part of the Security Deposit for the payment of (i) any Base Rent or Additional Rent which Tenant shall not have paid or which may become due after the occurrence of such Event of Default, (ii) any sum expended by Landlord on Tenant's behalf in accordance with the provisions of this Lease or (iii) any other sum which Landlord may expend or be required to expend by reason of Tenant’s covenants 's default, including damages or deficiency in the reletting of the Premises. The use, application or retention of the Security Deposit, or any portion thereof, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by law and obligations under this Lease; provided, however, that shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. If any portion of the Security Deposit is not an advance rent deposit used, applied 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 retained 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 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 appliedpurposes set forth above, Tenant shall immediately agrees, within fifteen (15) days to deposit cash with Landlord in an amount sufficient to return restore the Security Deposit to the amount specified in Paragraph 2.dheld by Landlord prior to Landlord's exercising any of its rights to use or apply the Security Deposit hereunder. Tenant’s failure If Tenant shall fully and faithfully comply with all of the provisions of this Lease, the Security Deposit, or any balance thereof, shall be returned to make such payment to Landlord Tenant within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty Thirty (30) days after the expiration of the Term, with interest accruing at three percent (3%) per annum. In the absence of evidence satisfactory to Landlord of any permitted assignment of the right to receive the Security Deposit, or termination of this Leasethe remaining balance thereof, Landlord shall may return the same to Tenant Tenant, regardless of one or more assignments of Tenant's interest in this Lease or the Security Deposit or Deposit. In such event, upon the balance thereof then held by Landlord after application return of the Security Deposit as permitted hereunder; provided(or balance thereof) to Tenant, howeverLandlord shall be completely relieved of liability under this Article. In the event of a transfer of Landlord's interest in the Premises, that in no event Landlord shall any transfer the Security Deposit to the transferee thereof. In such return be construed as an admission event, upon the delivery by Landlord that Tenant has performed all to the transferee 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's interest of the Real Property or any portion thereofSecurity Deposit, Landlord shall be deemed to have been released by Tenant from all liability or obligation for the return of such Security Deposit, and Tenant agrees to look solely to such transferee for the return of the Security Deposit and the transferee shall be bound by all provisions of this Lease relating to the return of the Security Deposit provided however that Landlord's lender is not responsible to Tenant for the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the sameby Landlord's lender or its affiliate. 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 The Security Deposit shall not be mortgaged, assigned or encumbered in any manner whatsoever by Tenant without the prior written consent of Landlord to compensate Landlord for damages resulting from termination of this Lease be granted or withheld in Landlord's sole and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)absolute discretion.

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 9.1. Tenant has deposited with Landlord the sum set forth in Section 2.6 (the “Security Deposit”), which sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant defaults with respect to any provision of this Lease, Tenant shall pay including, but not limited to, any provision 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, 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. then Landlord 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 to cure any Event of Default other sum in default, or to compensate Landlord for any other loss or damage that Landlord incurs as a result may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to perform any do so shall be a material breach of its covenants this Lease. The provisions of this Article 9 shall survive the expiration or obligations hereunderearlier termination of this Lease. TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, it being understood that any use AS THE SAME MAY BE AMENDED FROM TIME TO TIME. 9.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall not constitute a bar or defense be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 9.3. Landlord may deliver to any purchaser of Landlord’s remedies under interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 9.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or at law. In such event and upon written notice from Landlord any balance thereof, 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(or, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit at Landlord’s option, to the amount specified in Paragraph 2.d. last assignee 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 earlier termination of this Lease. 9.5. Provided that Tenant is not then in default of its obligations under this Lease, upon the expiration of the thirty-sixth (36th) month of the Term, the Security Deposit requirement shall be reduced to $78,889.20 and (a) Landlord shall return shall, on or before the end of the thirty-seventh (37th) month of the Term, refund to Tenant 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 event shall any such return be construed as an admission held by Landlord that Tenant has performed all in excess thereof or (b) the amount of its covenants and obligations hereunder. No holder of a Superior Interest the L/C Security (as defined below) shall be reduced accordingly, as applicable. 9.6. If the Security Deposit shall be in Paragraph 21 below)cash, nor any purchaser Landlord shall deposit the Security Deposit into an interest-bearing account at any judicial or private foreclosure sale of a banking organization selected by Landlord. All interest and/or dividends, if any, accruing on the Real Property or any portion thereofSecurity Deposit, less a one percent (1%) per annum charge on the Security Deposit for administrative expenses, shall be responsible added to, held and included within the term Security Deposit and, provided that no Default shall have occurred and be continuing, shall accrue to the account of Tenant. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 9.7. The Security Deposit unless and only may be in the form of cash, a letter of credit or any other security instrument acceptable to the extent such holder or purchaser shall have actually received the sameLandlord in its sole discretion. Tenant hereby unconditionally may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and irrevocably waives maintain in full force and effect throughout the benefits and protections Term, a letter of California Civil Code Section 1950.7credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, and, without limitation of in the scope of such waiver, acknowledges that Landlord may use all or any part amount of the Security Deposit, with an initial term of at least one year. Landlord hereby approves of Silicon Valley Bank as the issuer of Tenant’s L/C Security. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires; and (iii) in such extended period, Landlord shall not unreasonably refuse to consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s actual legal costs (as calculated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 30 (thirty) days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to compensate Landlord an amendment or replacement for damages resulting from termination such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord asks the issuer to confirm the current L/C Security expiry date, and the issuer fails to do so within ten (10) business days; (iv) Tenant fails to pay (when and as Landlord reasonably requires, provided that Tenant shall not be required to pay any such charges earlier than twenty (20) days following Landlord’s demand therefor) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security, and Tenant fails to obtain a replacement letter of credit conforming to the requirements of this Lease and at least fifteen (15) business days prior to such cessation. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the tenancy created hereunder L/C Security under specified circumstances. (includingd) Tenant shall not seek to enjoin, without limitationprevent, damages recoverable or otherwise interfere with Landlord’s draw under California Civil Code Section 1951.2)L/C Security, even if it violates this Lease. (e) If Landlord transfers its interest in the Premises, then Tenant shall at Tenant’s expense, within five Business Days after receiving a request from Landlord, deliver (and, if the issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

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 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 execution Tenant shall deposit with Landlord, upon delivery of an copy of this Lease to Landlord, a security deposit (the “Security Deposit”) for the performance all of Tenant’s obligations hereunder in the amount set forth in Section 1.1 of this Lease, which Security Deposit shall be in the form of an unconditional and irrevocable letter of credit (the “Letter of Credit”): (i) in form and substance satisfactory to Landlord, (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by an FDIC-insured financial institution satisfactory to Landlord, (v) redeemable by presentation of a sight draft in the state of Landlord’s choice, and (vi) transferable without fee or cost to Landlord. Landlord hereby approves Silicon Valley Bank as the issuer of the Letter of Credit. If Tenant not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall have the right to draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit. The Letter Credit shall be held by Landlord as security for the performance of Tenant’s obligations under Lease. The Letter of Credit is not an advance rental deposit or a measure of Landlord’s damages case of Tenant’s default. Upon each occurrence of a Default (as defined in Section 16.1), Landlord may draw all or any part of the Letter of Credit to pay delinquent payments due under this Lease, future rent damages, and the cost of any damage, injury, expense or liability caused such Default, without prejudice to any other remedy provided herein or provided by law. Landlord’s right to use the Letter of Credit under this Section includes the right to use the Letter Credit to pay future rent damages following the termination of this Lease pursuant to Section below. Upon any use of all or any portion of the Letter of Credit, Tenant shall pay on demand a new Letter of Credit or amend the existing Letter of Credit to restore the Letter of Credit to the amount set forth on Page 1 of this Lease. Tenant hereby waives the provisions of any law, now hereafter in force which provide that Landlord may claim from a security deposit only those 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. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Letter of Credit shall be deemed to be applied first to the of Rent and other charges due Landlord for periods prior to the filing of such proceedings. The Letter of Credit, 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 (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. Provided that no Default (as defined in Section 16.1) or event that with the passage of or the giving of notice, or both, would constitute a Default has occurred that remains uncured, amount of the Security Deposit specified in Paragraph 2.d. above shall be reduced to $862,274.00 effective as security for Tenant’s performance of all the Rent Commencement Date, whereupon, within thirty (30) days following receipt of Tenant’s covenants and written request, any portion of the Security Deposit in excess of the respective reduced amounts shall, if held by Landlord in cash, be refunded to Tenant, without interest, or Landlord shall agree to an appropriate replacement or amendment of the Letter of Credit in order to effect such reduction. Notwithstanding the foregoing, if any uncured monetary Default exists as of such reduction date, such reduction will occur at the later of: (i) one year from the original reduction date; or (ii) such time as the Default shall have been cured. If any uncured material non-monetary Default exists of such reduction date, such reduction will occur at the later of: (i) six months from the original reduction date; or (ii) such time as the Default shall have been cured. If any event that with the passage of time, or the giving of notice, or both, would constitute a monetary Default or material non-monetary Default exists as of such reduction date, such reduction will occur at such time as the uncured default shall have been cured. 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 Lease; providedSection, howeveror (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, that 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 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 Landlord’s obligation respecting the Security Deposit from its other funds is that of a debtor, not a trustee, 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)thereon.

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 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 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 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 execution If LICENSEE defaults under any of the terms or conditions of this LeaseAgreement more than two times during any twelve consecutive months during the term of this Agreement, Tenant LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to Landlord the $25,000 ("Security Deposit specified in Paragraph 2.d. above Deposit"), which will be held by LICENSOR without interest as security for Tenant’s the full and faithful performance by LICENSEE of all of Tenant’s LICENSEE's covenants and obligations under this Lease; providedAgreement, however, it being expressly understood that the Security Deposit such deposit is not an advance rent deposit or an advance payment of any other kind, nor license fees or a measure of Landlord’s LICENSOR's damages upon Tenant’s defaultif LICENSEE defaults again. Landlord shall not be required to segregate Following 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 payment of the Security Deposit shall not constitute a bar or defense Deposit, upon the occurrence of any event of default by LICENSEE, LICENSOR may, from time to time, without prejudice to any of Landlord’s remedies under other remedy provided in this Lease Agreement or at by 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 use the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure extent necessary to make good any arrearages of payment owed by LICENSEE to LICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such payment to Landlord within five (5) days event of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days default, regardless whether such damages or deficiency accrue before or 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 Agreement. Following any such application of the Security Deposit as permitted hereunder; providedDeposit, however, that LICENSEE agrees to pay to LICENSOR on demand the amount so 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 order 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 restore the Security Deposit to compensate Landlord for damages resulting from its original amount and LICENSEE's failure to do so within ten days of the date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Lease Agreement, LICENSOR agrees to return any remaining balance of such Security Deposit to LICENSEE within thirty days of the date of the termination of this Agreement. LICENSOR's deduction of any amounts owed by LICENSEE to LICENSOR from the Security Deposit will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not be required to keep this Security Deposit separate from its general funds. LICENSEE agrees that it will not assign or encumber, or attempt to assign or encumber, the monies deposited under this Agreement as security, and that LICENSOR and its successors and assigns will not be bound by any such actual or attempted assignment or encumbrance. If LICENSEE cures the tenancy created hereunder (includingevent of default that triggered the obligation to put up the $25,000 Security Deposit and is not then in default, without limitation, damages recoverable under California Civil Code Section 1951.2)LICENSOR agrees to refund the $25,000 amount put as a Security Deposit within ten days of the date of LICENSEE's request.

Security Deposit. 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, (a) Tenant shall pay to deposit with Landlord upon ▇▇▇▇▇▇'s execution hereof the Security Deposit specified set forth in Paragraph 2.d. above 1.6 of this lease as security for Tenant’s 's faithful performance of all of Tenant’s covenants and 's obligations under this Lease; providedlease. If Tenant fails to pay Base Rent or Additional Rent or otherwise defaults under this lease, howeverand such failure or default by Tenant continues after the giving of all required notices by Landlord and the expiration of all applicable cure periods, that then and in any such event, Landlord may use the Security Deposit is not an advance rent deposit or an advance for the payment of any other kindamount due Landlord or to reimburse or compensate Landlord for any liability, nor a measure cost, expense, loss or damage (including reasonable attorney's fees) which Landlord may suffer or incur by reason thereof. Tenant shall on demand pay Landlord the amount so used or applied so as to restore the Security Deposit to the amount set forth in Paragraph 1.6 of Landlord’s damages upon Tenant’s defaultthis lease. 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 keep all or any part of the Security Deposit to compensate in an interest bearing account. Landlord for damages resulting from shall, at the expiration or earlier termination of the Term and after ▇▇▇▇▇▇ has vacated the demised premises, return to Tenant that portion of the Security Deposit not used or applied by Landlord. No part of the Security Deposit shall be considered to be prepayment for any monies to be paid by Tenant under this Lease lease. (b) Tenant shall have the right to deliver to Landlord an unconditional, irrevocable letter of credit in substitution for the cash Security Deposit required in Paragraph 5(a) above, subject to the following terms and condition. Such letter of credit shall be: (i) in the tenancy created hereunder form attached to and hereby made a part of this lease as Exhibit B; (ii) at all times in the amount of the Security Deposit set forth in Paragraph 1.6 of this lease and shall permit multiple draws without a corresponding reduction in the amount of the letter of credit; (iii) issued by a commercial bank reasonably acceptable to Landlord from time to time and located in the United States of America; (iv) made payable to Landlord and expressly transferable and assignable at no charge, which transfer/assignment shall be conditioned only upon delivery of notice to the issuer of the letter of credit; (v) payable at sight upon presentment to a local branch of the issuer of a sight draft stating only that Landlord is entitled to draw on the letter of credit pursuant to this lease; (vi) for a term not less than one year; and (vii) contain an "evergreen" provision which provides that the letter of credit will be automatically renewed on an annual basis unless the issuer delivers at least 30 days prior written notice of cancellation to Landlord and Tenant, such that the letter of credit remains in existence through the date occurring 90 days after the expiration of the Term. At least 30 days prior to the then current expiration date of such letter of credit, Tenant shall either: (A) cause such letter of credit to be renewed (or automatically and unconditionally extended) from time to time for a period of one year through the 90th day after the expiration of the Term; or (B) cause such letter of credit to be replaced with cash in the amount of the Security Deposit. Notwithstanding anything in this lease to the contrary, any cure or grace period set forth in Paragraph 13.1 of this lease shall not apply to any of the foregoing, and, specifically, if Tenant fails to timely comply with the foregoing terms of this Paragraph, then Landlord shall have the right to immediately draw upon the letter of credit without notice to Tenant and hold the proceeds as the Security Deposit. Each letter of credit shall be issued by a commercial bank that has a credit rating with respect to certificates of deposit, short term deposits or commercial paper of at least A-3 (or equivalent) by Moody's Investment Service, Inc., or at least AA (or equivalent) by Standard & Poor's, a division of McGraw Hill, and shall be otherwise acceptable to Landlord, in its reasonable discretion. If the issuer's credit rating is reduced below A-3 (or equivalent) by Moody's Investment Service, Inc. or below AA (or equivalent) by Standard & Poor's, a division of McGraw Hill, or if the financial condition of such issuer changes in any other materially adverse way, then Tenant shall obtain from a different issuer a substitute letter of credit that complies in all respects with the requirements of this paragraph, and ▇▇▇▇▇▇'s failure to obtain such substitute letter of credit within 10 days following its receipt of Landlord's demand therefor (and Tenant's failure to do so shall, notwithstanding anything in this lease to the contrary, constitute a Default for which there shall be no notice or grace or cure period applicable thereto other than the aforesaid 10 day period) shall entitle Landlord to immediately draw upon the then existing letter of credit in whole or in part, without notice to Tenant and to hold the proceeds thereof as the Security Deposit. If the issuer of the letter of credit is insolvent or placed into receivership or conservatorship by the Federal Deposit Insurance Corporation or Resolution Trust Corporation, or any successor or similar entity, or if a trustee, receiver or liquidator is appointed for the issuer, then Tenant shall obtain from a different issuer a substitute letter of credit that complies in all respects with the requirements of this paragraph, and ▇▇▇▇▇▇'s failure to obtain such substitute letter of credit within 10 days following its receipt of Landlord's demand therefor (and ▇▇▇▇▇▇'s failure to do so shall, notwithstanding anything in this lease to the contrary, constitute a Default for which there shall be no notice or grace or cure periods applicable thereto other than the aforesaid 10 day period) shall entitle Landlord to immediately draw upon then existing letter of credit in whole or in part, without notice to Tenant and to hold the proceeds thereof as the Security Deposit. Landlord shall have the right to assign its interest (including, without limitation, damages recoverable under California Civil Code Section 1951.2)a collateral assignment thereof) in any letter of credit delivered to it by Tenant pursuant to this paragraph to the holder of any Mortgage and Landlord shall give notice of any such assignment to Tenant. If requested by any such Mortgagee, Tenant shall obtain an amendment to such letter of credit which names such Mortgagee as the beneficiary thereof in lieu of Landlord. Any failure or refusal of the issuer to honor the letter of credit shall be at Tenant's sole risk and shall not relieve Tenant of its obligations hereunder with respect to the Security Deposit.

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 the balance remaining, if any, after Tenant's obligations under this Lease have been completely fulfilled shall be paid to Tenant. Landlord shall be released from 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. 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 60 days after the expiration or earlier termination of this Lease.

Security Deposit. Upon execution of this Lease, Section 15.01. Tenant shall pay to has deposited with Landlord the Security Deposit specified sum stipulated in Paragraph 2.d. above the Basic Lease Provisions, as security for Tenant’s 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 (after notice and the expiration of any applicable cure period), including but not limited to the provisions relating to the payment of Basic Rent and Additional Rent, Landlord may use, apply or retain all or any part of Tenant’s covenants and obligations under this Lease; providedsecurity deposit for the payment of any Basic Rent or Additional Rent or other sum in default, however, that or for the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure amount which Landlord may spend or become obligated to spend by reason of Landlord’s damages upon Tenant’s default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant’s default. If any portion of said deposit is so used or applied, Tenant shall within five (5) days after written demand therefor deposit cash with Landlord in amount sufficient to restore the security deposit to its original amount and Tenant’s failure to do so shall be an Event of Default under this Lease. Landlord shall not be required to segregate the Security Deposit keep this security deposit separate from its other funds funds, and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use 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 security deposit or any portion balance thereof shall be returned 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 of Tenant’s failure to perform any of its covenants or obligations interest hereunder, it being understood that any use ) at the expiration of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this Lease or at lawTerm. In such the event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and insolvency of Tenant or in the particular purpose for event of the entry of a judgment in bankruptcy in any court against Tenant 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 is not discharged within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after entry, or in the expiration event a petition is filed by or termination against Tenant under any chapter of the bankruptcy laws of the State of New Jersey or the United States of America, then and in such event Landlord may require the Tenant to deposit additional security in an amount which in Landlord’s sole judgment would be sufficient to adequately assure Tenant’s performance of all of its obligations under this Lease, Landlord including all payments subsequently accruing. Failure of Tenant to deposit the security required by this Section within ten (10) days after Landlord’s written demand shall 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 constitute 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 material breach of this Lease by Tenant. The security deposit is being made by means of an irrevocable “evergreen” letter of credit, which shall be in form and substance, and drawn on a bank which is a member of the tenancy created hereunder New York clearinghouse, satisfactory to Landlord. It shall have a final expiry of not less than six (including6) months after the Expiration Date. In the event that the “Guarantor Loan” (hereinafter defined) shall be accepted by Landlord, without limitationthen, damages recoverable under California Civil Code Section 1951.2)provided that Tenant shall not be in default in the performance or observance of any of its obligations hereunder, not later than ninety (90) days after the Rent Commencement Date, the security deposit shall be reduced by an amount equal to two (2) months Basic Rent and a new letter of credit, in such reduced amount (but otherwise conforming to the provisions hereof) shall be substituted therefor. As the Basic Rent increases throughout the Term, the amount of the security shall be increased accordingly, so that Landlord shall at all times have a security deposit letter of credit in an amount equal to ten (10) or twelve (12) months Basic Rent, as the case may be.

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 The Security Deposit shall be delivered to Landlord upon the execution of this Lease, Lease by Tenant shall pay to and 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 damages. If Tenant is in Default, Landlord may from time to time and without prejudice to any other remedy provided in this Lease or by Law, use all or a portion of the Security Deposit to the extent necessary to satisfy past due Rent or to satisfy any other loss or damage resulting from Tenant’s defaultDefault under this Lease. If Landlord uses any portion of the Security Deposit, Tenant, within 10 days after written demand, shall restore the Security Deposit to its original amount. Landlord shall return any unapplied portion of the Security Deposit to Tenant within forty-five (45) days following the Termination Date or earlier expiration of this Lease. Landlord may assign the Security Deposit to a successor or transferee and, following the assignment, Landlord shall have no further liability for the return of the Security Deposit. Landlord shall not be required to segregate keep the Security Deposit separate from its other funds and no interest accounts. Notwithstanding anything in this Section 6 to the contrary, Tenant shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use satisfy the Security Deposit or any portion thereof to cure any Event requirement 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 delivery of the Security Deposit shall not constitute a bar or defense by the delivery to any Landlord of Landlord’s remedies under this Lease or at law. In such event an unconditional and upon written notice from Landlord to Tenant specifying irrevocable letter of credit (“Letter of Credit”) in the amount of the Security Deposit so utilized set forth in Section 1.10 above, and in a form acceptable to Landlord in its reasonable discretion. The Letter of Credit shall be issued by a bank reasonably satisfactory to Landlord; provided that Landlord and hereby approves Silicon Valley Bank as the particular purpose for which such amount was applied, issuing bank. Tenant shall immediately deposit with Landlord ensure that at all times after the execution and delivery of this Lease until forty-five (45) days after the Termination Date, as the same may be extended, an unexpired Letter of Credit in the amount sufficient to return of the Security Deposit set forth in Section 1.10 above shall be in the possession of Landlord. The Letter of Credit shall contain a so-called “evergreen” clause providing that the Letter of Credit shall not be canceled unless the issuing bank delivers thirty (30) days’ prior written notice to Landlord. Tenant shall deliver to Landlord, no later than ten (10) days prior to the expiry date of the then outstanding and expiring Letter of Credit (a) a replacement Letter of Credit or (b) cash in the amount specified then required as the Security Deposit. Landlord shall be entitled to draw on the Letter of Credit (i) if Tenant fails to deliver any replacement Letter of Credit or pay the amount of the Security Deposit in Paragraph 2.dcash as required, in which event Landlord shall be permitted to retain the entire proceeds of such Letter of Credit for application as the Security Deposit hereunder, (ii) to cure or attempt to cure, in whole or in part, any Default by Tenant under this Lease, in which event Tenant shall replenish the amount so drawn upon demand by Landlord, and (iii) if the credit rating of the long-term debt of the issuer of the Letter of Credit (according to ▇▇▇▇▇’▇ or similar national rating agency) is downgraded to a grade below investment rate), or if the issuer of the Letter of Credit shall enter into any supervisory agreement with any governmental authority, or if the issuer of the Letter of Credit shall fail to meet any capital requirements imposed by applicable Law, unless Tenant delivers to Landlord a replacement Letter of Credit complying with the terms of this Lease or cash in the amount required as the Security Deposit within ten (10) days after written demand therefor from Landlord. Each Letter of Credit shall be for the benefit of Landlord and its successors and assigns and shall entitle Landlord or its successors or assigns to draw from time to time under the Letter of Credit in portions or in whole upon presentation of a sight draft and statement by Landlord that Landlord is entitled to draw thereunder pursuant to the terms and provisions of this Lease. Landlord shall have an unrestricted right to transfer the Letter of Credit at any time and to any party selected by the Landlord. Tenant shall pay any transfer commission (fee) and all other costs (hereinafter collectively referred to as the “Transfer Fee”) which may be imposed by the bank issuing the Letter of Credit for the transfer of the Letter of Credit by Landlord. The Tenant’s failure to make such payment to Landlord within five pay the Transfer Fee, which failure continues for ten (510) days following written notice from Landlord of Landlord’s notice same, shall constitute an Event of Default. Within thirty (30) days after the expiration or termination a Default of this Lease, and Landlord shall return have the right to Tenant the Security Deposit or the balance thereof then held by pursue any and all remedies provided Landlord after application of the Security Deposit as permitted hereunder; providedunder this Lease, however, that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants equity 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)law.

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 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 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 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 16), 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 5. 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), damages recoverable under California Civil Code Section 1951.2)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.

Security Deposit. Upon execution The Security Deposit shall be held by Landlord without liability for interest and as security for the performance by Tenant of Tenant's covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of rent or a measure of Landlord's damages in case of default by Tenant. 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 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 Landlord shall be entitled to 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 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 be deemed to be held in trust by Landlord for Tenant or defense to any other person. Although the Security Deposit shall be deemed the property of Landlord’s remedies under this Lease or at law. In , any remaining balance of such event and upon written notice from deposit shall be returned by Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which or Tenant's last permitted assignee 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 termination of this Lease and the tenancy created hereunder when Landlord shall have determined that all of Tenant's obligations under this Lease (including, without limitation, damages recoverable under California Civil Code Section 1951.2)the obligations, of Tenant to maintain and repair the Premises) have been fulfilled. On the occurrence of any events of default as described in the Lease, said Security Deposit shall become due and payable to Landlord. If the Building is conveyed by Landlord, said Security Deposit shall become due and payable to Landlord. If the Building is conveyed by Landlord, said Security Deposit may be paid over to Landlord's successor and, if so, Tenant hereby releases Landlord from any and all liability with respect to said Security Deposit and its application or return. The Security Deposit shall not be assigned or encumbered by Tenant without the written consent of Landlord and such assignment or encumbrance without Landlord's consent shall be void.

Security Deposit. Upon execution of this LeaseLease by Landlord, Tenant shall pay to Landlord deposit the Security Deposit specified in Paragraph 2.dsum of $120,000.00 (the “Escrow Deposit”) into an escrow account at Commercial Bank & Trust Co., ▇▇▇ ▇. above ▇▇▇▇▇▇▇▇▇▇ Road, Memphis, Tennessee 38117, (“Escrow Agent”) which sum shall be held as security for Tenant’s the full, timely and faithful performance of all of Tenant’s 's covenants and obligations under this Lease; provided, however, it being expressly agreed that the Security such Escrow Deposit is not an advance rent rental deposit or an advance payment of any other kind, nor a measure of Landlord’s damages upon 's damages. Provided Tenant is not, nor has been in default of any material obligation hereunder, $24,000.00 of the amount held in escrow shall be released and disbursed to Tenant on each anniversary of the Commencement Date. Upon the occurrence of any event of default Tenant’s , Landlord may, from time to time, without prejudice to any other remedy, use such funds 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 Tenant's default. ; and Tenant shall pay to Landlord on demand the amount so applied in order to restore the security deposit to its original amount or to such lesser amount as shall not then be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable maintained by Tenant after any annual disbursements to Tenant with respect theretopreviously made as stated above. Landlord may (but Such escrow shall not be required to) use held by Escrow Agent under its standard form of escrow agreement. The escrow agreement shall provide that the Security Deposit or any portion thereof funds held in escrow will be invested and the interest paid 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 Tenant annually. Although the Security Escrow Deposit shall not constitute a bar or defense to any be deemed the property of Landlord’s remedies under this Lease or at law. In , any remaining balance of such event and upon written notice from Landlord to Tenant specifying the amount of the Security Deposit so utilized deposit shall be returned 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, whether by expiration of the term or exercise of Tenant's option to terminate provided in Section 31.01c below, when 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, have determined that in no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and Tenant'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 under this Lease and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)have been fulfilled.

Security Deposit. Upon execution (a) The Dealer shall, whenever called upon by the Corporation to do so, lodge with the Corporation deposits of this Leasesuch sums of money as may be stipulated by the Corporation from time to time as Security for the due fulfillment of the obligations and undertakings hereunder and for securing payment of all sums due to the Corporation. Such deposits shall be in cash or securities approved in writing by the Corporation and endorsed in favour of the Corporation. The Corporation will not allow interest to the Dealer on cash deposits but in the case of securities yielding interest, Tenant the Corporation may without being bound to do so, collect the interest thereon, and pay the amount thereof to the Dealer. The document of deposit or security, etc. shall pay be held by the Corporation subject to Landlord such further terms and conditions as may be stipulated by the Corporation from time to time. The Dealer agrees that the Corporation shall be under no obligation to the Dealer with regard to nor shall the Dealer be entitled to any benefit arising out of and the manner of use or disposal of the funds received as deposits, etc. from the Dealer. (b) Any such deposit shall be regarded by the Dealer as Security Deposit specified in Paragraph 2.d. above as security for Tenant’s performance of all of Tenant’s covenants only and obligations under this Lease; provided, however, the Dealer shall have no right to claim that the Security Deposit is not an advance rent deposit or an advance be utilised in payment of any other kindof the due(s) to the Corporation. The Corporation may, nor a measure however, at any time at its discretion sell the approved securities and apply the sale proceeds of Landlordthe securities or any part thereof in payment pro-tanto of any amount due to it by the Dealer and the Dealer hereby authorises the Corporation to do so. Should the Corporation at any time do so advise the Dealer of the same, the Dealer shall forthwith lodge with the Corporation such further sums in cash as may be necessary to restore the Dealer’s damages upon Tenant’s defaultsecurity deposit to the required extent. Landlord The Dealer shall not be required entitled to segregate raise any dispute with regard to time or the Security Deposit from its other funds and no interest shall accrue price at which or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit manner in which the approved securities or any portion thereof of them may be sold by the Corporation. The. amount representing the said deposit or the approved securities shall be returnable to cure any Event the Dealer only on the termination of Default or to compensate Landlord for any damage Landlord incurs as a result of Tenant’s failure to perform any this Agreement and after receipt by the Corporation of its covenants deposit receipt duly discharged and after all accounts whatsoever in connection with this Agreement and/or in connection with the Dealer’s dealings, if any, in any other products or obligations hereunder, it being understood that any use goods of the Security Deposit shall not constitute Corporation, whether under a bar written agreement or defense to any otherwise, have been finally settled and the obligations hereunder and in particular under clause 36 have been fully discharged. (c) In the event of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying the death of the dealer, if the dealer be an individual, the Corporation will return the amount of the Security Deposit so utilized security deposit, after making all necessary deductions, against presentation of the deposit receipt only to such person or persons who establish title to receive the same from the Corporation after complying with the requirements that may be prescribed by Landlord the Corporation in that regard. (d) In the event of the death of a partner in the Dealer’s firm, the Corporation shall return the amount of the security deposit, after making all necessary deductions, against presentation of the deposit receipt duly signed by the surviving partners and such person or persons who establish title to the particular purpose for which such amount was applied, Tenant estate of the deceased partner after complying with the requirements that may be prescribed by the Corporation in that regard. The receipt issued by the Corporation shall immediately alone be proof of the 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 Corporation and of the Security Deposit as permitted hereunder; provided, however, that value thereof. (e) In the event of any change 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 the constitution of the Real Property or any portion thereofDealership firm and in case, the Corporation exercises its option under Clause 29 hereof to continue the Dealership with the changed partnership, the continuing partner(s) shall forthwith lodge with Corporation as security deposit, such sum of money as may be responsible determined by the Corporation and called upon 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 the execution of this Lease, Tenant shall pay to deposit with Landlord the Security Deposit specified in Paragraph 2.dthe amount set forth above. above The Security Deposit 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. 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 Upon each occurrence of 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 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 belowhereinafter defined), 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 Event of Default, without prejudice to any other remedy provided herein or provided by law. Tenant shall pay Landlord for damages resulting on demand the amount that will restore the Security Deposit to its original amount. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee; no interest shall accrue thereon. The Security Deposit shall be the property of Landlord, but shall be paid (to the extent remaining) 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 (includingPremises to a person or entity assuming Landlord’s obligations under this Paragraph 5. In the event of a sale or other disposition of the Premises, without limitationLandlord may transfer the Security Deposit to the new owner, damages recoverable under California Civil Code Section 1951.2)and, thereafter, Landlord shall be released by Tenant from all responsibility for returning the Security Deposit, and Tenant shall look solely to the new owner for return of the 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 return of the Security Deposit to Tenant. Tenant hereby waives the provisions of any law, now or hereafter in effect, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums specified in this Paragraph 5 and/or those sums reasonably necessary to compensate Landlord for any other actual loss or damage, foreseeable or unforeseeable, caused by the acts or omissions of Tenant or any officer, member, manager, director, employee, agent, contractor or invitee of Tenant.

Security Deposit. Upon execution of this LeaseAgreement, Tenant TENANT, shall pay deposit with LANDLORD as a Security Deposit of<<Security Deposit Charges>>. At any time during the term of this Agreement and upon termination of the tenancy by either party for any reason, and as provided herein, the LANDLORD, may claim, from the Security Deposit, such amounts due LANDLORD under this Agreement, including but not limited to, remedying any default of the tenant in the payments of rent; repairing damages to Landlord the premises other than normal wear and tear caused by TENANT; and cleaning the Premises. TENANT shall not apply the Security Deposit specified to, or in Paragraph 2.d. above as security lieu of, rent.Any termination prior to the initial Term set forth herein, or failure of TENANT to provide proper notice of termination, is a default in the payment of rent for Tenant’s performance the remainder of all of Tenant’s covenants and obligations under this Lease; providedthe Term, however, that which may be offset by the Security Deposit is not an advance rent deposit or an advance payment Deposit. LANDLORD shall provide TENANT with a written, itemized accounting 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 disposition 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 of termination.TENANT agrees, upon termination of the expiration or tenancy, to provide LANDLORD with a forwarding address to prevent a delay in receiving the accounting and any refund. At the termination of this Leaseagreement, Landlord shall return to Tenant the TENANT will be refunded the remaining Security Deposit or (if any).In the balance thereof then held by Landlord after application event 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 damage to the extent such holder Premises caused by TENANT or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7TENANT’s family, andagents or visitors, without limitation of the scope of such waiver, acknowledges that Landlord LANDLORD may use all or any part of funds from the Security Deposit to compensate Landlord repair, but is not limited to this fund and TENANT remains liable for damages resulting any remaining costs. In addition to the above, to be fully refundable, the Premises must be professionally cleaned, including the carpets, tile, grout, and all other hard surface flooring. TENANT must produce an invoice from termination a reputable company to LANDLORD upon surrender of this Lease the Premises indicating the work performed and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)applicable costs. The service provided and company used must be pre-approved by LANDLORD prior to commencing the work and must meet with the LANDLORD’S minimum standards.

Security Deposit. Upon Tenant’s execution of this Lease, Tenant shall pay to deposit with Landlord the Security Deposit, as shown on the Lease Summary. The Security Deposit specified in Paragraph 2.d. above shall serve as security for Tenant’s the prompt, full, and faithful performance by Tenant of all the terms and provisions of this Lease. In the event that Tenant is in Default hereunder, or in the event that Tenant owes any amounts to Landlord upon the expiration of this Lease, Landlord may use or apply the whole or any part of the Security Deposit for 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 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 lawDeposit. 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 Provided Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below)under this Lease, 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 shall be returned to compensate Tenant within thirty (30) days subsequent to the Expiration Date. If the Premises shall be expanded at any time, or if the Term shall be extended at any increased rate of Rent, the Security Deposit shall thereupon be proportionately increased. No trust or fiduciary relationship is created herein between Landlord for damages resulting from termination and Tenant with respect to the Security Deposit. If Landlord transfers the Premises during the Term of this Lease and Lease, Landlord may pay the tenancy created hereunder (includingSecurity Deposit to Landlord’s successor-in-interest, without limitation, damages recoverable under California Civil Code Section 1951.2)in which event the transferring Landlord shall be released from all liability for the return of the Security Deposit.

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 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 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.

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 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. If Tenant fails to pay Rent, howeveror otherwise an Event of Default occurs under this Lease, that 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. Should the Permitted Use be amended to accommodate a material change in the business of Tenant or to accommodate a sublessee or assignee, Landlord shall have the right to increase the Security Deposit is not an advance 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. Landlord may use, apply or retain all or any portion of the Security Deposit (i) first, for Tenant’s repair obligations, including without limitation, the obligation to restore the Premises to the condition required under this Lease, (ii) second, to the payment of any rent deposit or an advance other sum in default or for the payment of any other kind, nor a measure sum to which Tenant may become obligated by reason of Landlord’s damages upon Tenant’s default, and (iii) third, to compensate Landlord for any loss or damage which Landlord may suffer thereby. If a change in control of Tenant occurs during this Lease and following such change the financial condition of Tenant is, in Landlord’s reasonable judgment, significantly reduced, Tenant shall deposit such additional monies with Landlord as shall be sufficient to cause the Security 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) 60 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 now or hereafter in force, which may provide that Landlord can claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee or agent of Tenant. Provided that Tenant has not breached any Lease terms and conditions beyond any applicable notice and cure periods and has delivered all rental payments to Landlord not later than the fifth (5th) day of each month, the Landlord shall credit: (i) $99,359.86 towards the Base Rent (and only the Base Rent) due for the twenty-fifth month of the scope Lease term, which is January 2024 and; (ii) $105,410.88 towards Base Rent (and only the Base Rent) due for the forty-ninth (49th) month of the Lease term, which is January 2026. After such waivercredit, acknowledges that Landlord may use all or any part of the Security Deposit to compensate be held by Landlord for damages resulting from termination shall be $300,311.94. Notwithstanding the foregoing, upon any monetary Event of this Lease and Default, Tenant shall be required to immediately replenish the tenancy created hereunder (includingSecurity Deposit, without limitationupon demand by Landlord, damages recoverable under California Civil Code to the original amount, as indicated in Section 1951.2).1.F.

Security Deposit. Upon execution Pursuant to the provisions of this the Termination Agreement, Landlord hereby agrees that upon the termination of the Current Lease, Current Landlord shall, after first deducting all amounts necessary to cure all defaults by Tenant shall pay under the Current Lease, transfer to Landlord all amounts then held by Current Landlord as a security deposit for the benefit of Tenant pursuant to the Current Lease, and all sums so transferred shall be held by Landlord as a Security Deposit specified in Paragraph 2.d. above as security for Tenant’s the faithful performance by Tenant of all of Tenant’s covenants and its obligations under this Lease; provided. Within five (5) days following written demand from Landlord, howeverTenant shall deliver to Landlord the difference, that if any, between 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 remainder of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies security deposit under this the Current Lease or at law. In such event and upon written notice from delivered by Current Landlord to Tenant specifying Landlord and the amount of the Security Deposit so utilized required by and as set forth in the Basic Lease Information. If Tenant is in default hereunder, Landlord and the particular purpose for which such amount was appliedmay, Tenant shall immediately deposit with Landlord an amount sufficient but without obligation to return do so, use all or any portion of the Security Deposit to cure the default or to compensate Landlord for all damages sustained by Landlord in connection therewith, Tenant shall, within ten (10) business days of written demand, pay to Landlord a sum equal to the portion of the Security Deposit so applied or used to replenish the amount specified of the Security Deposit held to increase such deposit to the amount initially deposited with Landlord. Such notice by Landlord may be in Paragraph 2.d. Tenant’s failure the form of a notice to make such payment perform covenant or quit pursuant to Landlord within five (5) days Code of Landlord’s notice shall constitute an Event of DefaultCivil Procedure 1161, or any successor statute. Within thirty (30) days after the expiration or termination of this LeaseLease and vacation of the Premises by Tenant, Landlord shall return to Tenant the Security Deposit to Tenant, less such amounts as are reasonably necessary, as determined by Landlord, to remedy Tenant’s default(s) hereunder or to otherwise restore the balance thereof then held by Landlord after application Premises to the condition required hereunder. If the cost to restore the Premises exceeds the amount of the Security Deposit as permitted hereunder; provided, however, that in no event Tenant shall promptly deliver to Landlord any such return be construed as an admission by Landlord that Tenant has performed and all of its covenants and obligations hereundersuch excess sums. 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, Landlord shall not be responsible required to Tenant for keep 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 1950.7separate from other funds, and, without limitation of unless otherwise required by law, Tenant shall not be entitled to interest on the scope of such waiver, acknowledges that Landlord may Security Deposit. In no event or circumstance shall Tenant have the right to any use all or any part of the Security Deposit and, specifically, Tenant may not use the Security Deposit as a credit or 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)otherwise offset any payments required hereunder.

Security Deposit. Upon execution Lessee shall deposit with the Authority, and continuously maintain throughout the term of this LeaseAgreement, Tenant shall pay to Landlord the a Security Deposit specified in Paragraph 2.dthe amount of which shall equal approximately ninety (90) days Concession Fees, ground rent and maintenance and operations fees. above as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that the The Security Deposit is not must be in the form of an advance rent deposit irrevocable Letter of Credit ("LC"), a surety bond or an advance payment cash, when permitted in the sole discretion of any other kind, nor a measure of Landlord’s damages upon Tenant’s defaultthe Authority. Landlord shall not be required to segregate the A Security Deposit from its in the form of a LC or bond must be drawn on a bank, insurance or other funds financial institution acceptable to the Authority and no interest shall accrue or be payable in a form acceptable to Tenant with respect theretothe Authority. 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 The Security Deposit shall not constitute a bar be subject to annual increases or defense to any of Landlord’s remedies under this decreases each Lease or Year and shall be adjusted at lawthe same time each year. 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 Lessee 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 have thirty (30) days after receipt of the expiration or termination of this Lease, Landlord shall return new Security Deposit amount to Tenant adjust the Security Deposit by amending the LC, bond or, when permitted, the amount of cash on hand with the Authority. The Security Deposit shall secure ▇▇▇▇▇▇'s full and faithful performance and observance of all of ▇▇▇▇▇▇'s obligations under this Agreement and under any other written agreement between Lessee and the Authority specifically referring to this Security Deposit. The Security Deposit shall not be considered to be held in trust by the Authority for the benefit of ▇▇▇▇▇▇, and shall not be considered an advance payment of Rent or a measure of the balance thereof then held Authority's damages in the case of an Event of Default by Landlord after application of ▇▇▇▇▇▇. The Authority may, but shall not be obligated to, draw upon and apply the Security Deposit to: (a) pay any Rent or Additional Rent not paid on or before the date it is due and the Authority shall not be required to give notice or opportunity to cure before drawing on the Security Deposit; and/or (b) remedy any other violation of this Agreement, after ▇▇▇▇▇▇ has received notice and opportunity to cure as permitted hereunder; providedprovided in Article 13. Default of this Agreement. Further, howeverthe Authority may draw down the entire Security Deposit immediately, 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 without notice to ▇▇▇▇▇▇, upon receipt of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale notice of non-renewal of the Real Property Letter of Credit or surety bond. If the Authority applies 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 any of the above, Lessee shall, immediately upon demand, replenish the Security Deposit to its full amount. If ▇▇▇▇▇▇ fully performs all of its obligations under this Agreement, the Security Deposit, or any balance remaining, will be released within thirty (30) days from the expiration date or termination of this Lease Agreement and delivery of the tenancy created hereunder Leased Premises to the Authority. However, if any question exists concerning Lessee's full compliance with the Agreement or if there is any obligation under this Agreement to be performed after the expiration date or earlier termination of this Agreement, the Authority shall be entitled to require that the Security Deposit remain in place until the Authority is fully satisfied that there has been no violation of the Agreement and all obligations due under this Agreement have been fully performed, even if it takes the Authority longer than ninety (including, without limitation, damages recoverable under California Civil Code Section 1951.2)90) days to make such a determination to the Authority's satisfaction.

Security Deposit. Upon execution of this Lease, Tenant shall pay to Landlord the Security Deposit specified in Paragraph 2.d. above shown on the Lease Summary as security for Tenant’s the faithful performance by Tenant of all the terms and conditions of Tenant’s covenants this Lease of which ▇▇▇▇▇▇ is obligated to perform hereunder, and obligations for the payment of any damages to which Landlord may be entitled hereunder if Tenant defaults under the Lease, following all applicable notice and cure periods. Landlord shall inspect the Office Suite within twenty (20) days after the Expiration Date or earlier termination date of this Lease; provided, howevershall note in writing any damages or other items for which ▇▇▇▇▇▇ was responsible hereunder, that shall deduct from 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 amounts reasonable necessary 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 hereunderremedy such items, it being understood that any use and shall return the balance of the Security Deposit to Tenant, without interest, with the written list of deductions, within thirty (30) days after the Expiration Date or earlier termination date of this Lease. At any time during the Term, Landlord shall not constitute a bar have the right to apply any 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 all of the Security Deposit so utilized by to cure any default of Tenant following the applicable notice and opportunity to cure. If Landlord and the particular purpose for which such amount was applieddoes so, then Tenant shall immediately upon demand, deposit with Landlord an amount sufficient equal to the amount so applied so that Landlord shall have the full Security Deposit on hand at all times during the Term. In the event Landlord sells or transfers its interest in the Building and this Lease, then Landlord shall have the right to transfer the Security Deposit. If it does so, then Landlord shall be considered released by Tenant from all liability for the return of the Security Deposit, and Tenant shall look solely to the transferee for the return of the Security Deposit. In the event of any permitted assignment of Tenant’s estate or interest in the Office Suite, the Security Deposit shall be deemed to be held by Landlord as a deposit made by the assignee and Landlord shall not have to return the Security Deposit to the amount specified in Paragraph 2.d. original Tenant’s failure , but shall return it 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 new tenant as required by 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 Landlord and Tenant acknowledge and agree that Landlord is, as of the date hereof, holding an amount equal to Thirty-One Thousand Dollars ($31,000.00) as the security deposit (“Existing Deposit”) under that certain office lease dated January 22, 1997 by and between Landlord (as successor-in-interest in the lease to the prior landlord) and Tenant (as amended, the “Existing Lease”). On the date of the full execution and delivery of this Lease by Landlord and Tenant, such Existing Deposit (less any amounts of the Existing Deposit applied by Landlord to remedy any default by Tenant under the Existing Lease) shall be transferred by Landlord so that the Existing Deposit (or portion thereof) shall constitute a portion of the Security Deposit required hereunder. Concurrently with Tenant's execution and delivery of this Lease to Landlord, Tenant shall pay to deposit with Landlord the difference (i.e., $4,273.92 as of the date hereof) between the Security Deposit specified in Paragraph 2.drequired hereunder and the actual amount of the Existing Deposit under the Existing Lease so transferred by Landlord. 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 conditions of this Lease to be performed by Tenant during the Term. If Tenant defaults with respect to any of its 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 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 payment of any rent or any other sum in default, or for the payment of any other amount, loss or damage which Landlord may spend, incur or suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, Tenant shall, within ten (10) days after demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. Landlord shall not be required to keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. If Landlord sells its interest in the Building during the Term and if Landlord deposits with the purchaser the Security Deposit (or balance thereof), and such purchaser acknowledges receipt thereof, then, upon such sale, Landlord shall be discharged from any further liability with respect to the Security Deposit. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code, and all other provisions of law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to 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 any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any Tenant Parties (as defined in Section 6.4 below). Within sixty (60) days after the expiration of the Term, and provided Tenant fully and faithfully performs every provision of this Lease, the Security Deposit or any balance thereof shall be returned to Tenant (or, at Landlord's option, to Tenant’s “Transferee”, as such term is defined in Section 14 below), provided that subsequent to the expiration of this Lease, Landlord may retain from termination said Security Deposit (i) an amount reasonably estimated by Landlord to cover potential Operating Expense reconciliation payments due with respect to the calendar year in which this Lease terminates or expires (and any amounts so retained and not applied to such reconciliation shall be returned to Tenant within sixty (60) days after Landlord’s delivery of the Statement for such calendar year), (ii) any and all amounts reasonably estimated by Landlord to cover the anticipated costs to be incurred by Landlord to remove any signage provided to Tenant under this Lease, to remove cabling and other items required to be removed by Tenant under this Lease and the tenancy created hereunder to repair any damage caused by such removal (includingin which case any excess amount so retained by Landlord shall be returned to Tenant within sixty (60) days after such removal and repair), without limitation, damages recoverable under California Civil Code and (iii) any and all amounts permitted by law or this Section 1951.2)5.

Security Deposit. Upon The Security Deposit shall be paid by Tenant within five (5) business days after execution of this Lease and shall be held by Landlord as security for the performance by Tenant of its covenants and agreements under this Lease. In the event that cash is, at any time, held as the Security Deposit hereunder, the holder thereof shall hold such cash in an interest bearing segregated account for the benefit of the Tenant subject only to the terms and conditions of this Lease. Upon the occurrence of any default hereunder and the expiration of any grace period for the cure thereof without such cure, Landlord may use such portion of the Security Deposit as is necessary to cure such default. In the event of any such draw down of the Security deposit, Tenant shall pay to replace the amount drawn down within ten (10) days of receipt of notice thereof, by delivery of a sight draft Letter of credit in substantially the form of the Letter of Credit initially delivered hereunder or cash in the amount drawn. At any time Landlord is holding cash as the Security Deposit specified hereunder, Tenant shall have the right, in Paragraph 2.daccordance with the terms hereof, to replace such cash with a sight draft Letter of Credit from a bank acceptable to Landlord and which provides that draw downs may be made solely upon submission of a statement from a representative of Landlord stating that Tenant is in default under its Lease beyond any grace period and Landlord is entitled to the amount claimed. above Any Letter of Credit shall have a term of not less than one (1) year and a replacement Letter of Credit from a bank acceptable to Landlord shall be delivered to Landlord at least thirty (30) days prior to any expiration of any Letter of Credit or Landlord may draw down the full proceeds of the Letter of Credit and hold the cash as collateral security for Tenant’s performance of all of Tenant’s covenants and 's obligations under this Lease; provided. Upon replacement of cash with a Letter of Credit meeting the Letter of Credit requirements set forth above, 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 return the cash to segregate Tenant. If Landlord shall transfer its interest in the Security Deposit from its other funds and no interest Premises, Landlord 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 assign the Security Deposit to the amount specified in Paragraph 2.dtransferee. Tenant’s failure Any balance of the Security Deposit remaining at the end of the Term after deduction of amounts owed by Tenant hereunder shall be returned to make such payment to Landlord 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 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. Section 6 of the Lease is hereby amended by adding the following at the end of Section 6: a. The security deposit shall be in the form of an irrevocable letter of credit (the "Security Deposit L/C") in the amount set forth in Section 1.10 as security for Tenant's full and faithful performance of Tenant's obligations hereunder. The Security Deposit L/C shall be delivered to Landlord at Tenant's sole cost and expense. The Security Deposit L/C shall be issued by and drawn on Commerce Bank or any other bank reasonably acceptable to Landlord, in Landlord's sole discretion, and shall name Landlord as Beneficiary. The Security Deposit L/C shall be substantially in the form attached hereto as Exhibit H. If the maturity date of the Security Deposit L/C is prior to the end of the Term of the Lease, Tenant shall renew the Security Deposit L/C as often as is necessary with the same bank or financial institution (or a similar bank or financial institution reasonably acceptable to Landlord) and upon the same terms and conditions, not less than thirty (30) days prior to the purported expiration date of the Security Deposit L/C. In the event that Tenant fails to timely renew the Security Deposit L/C as aforesaid, Landlord shall be entitled to draw against the entire amount of the Security Deposit L/C. The Security Deposit L/C shall be assignable by Landlord and upon such assignment to any party assuming in writing the lessor interest in this Lease, Landlord shall be relieved from all liability to Tenant therefor. b. Upon execution the occurrence of any default by Tenant in the payment of Base Rent or upon the occurrence of the events described in Section 13.1 of the Lease or in the event that Landlord terminates this Lease in accordance with the terms hereof following a default by Tenant after the expiration of any applicable notice and cure period, Landlord shall have the right to draw the entire amount of the Security Deposit L/C. Landlord agrees to copy Tenant on any notice to the issuing bank requesting a draw against the Security Deposit L/C. In the event that Tenant defaults after the expiration of any applicable notice and cure period in making any money payment required to be made by Tenant under the terms of this Lease other than the payment of Base Rent, then Landlord shall be entitled to draw upon so much of the Security Deposit L/C as equals the defaulted payment(s), plus any interest or other charges due thereon in accordance with this Lease. If Landlord elects to make a partial draw upon the Security Deposit L/C, Tenant shall promptly restore the Security Deposit L/C to its original amount within ten (10) days after written demand therefor. Landlord's election to make a partial draw upon the Security Deposit L/C shall in no event prejudice or waive Landlord's right to terminate this Lease if permitted under applicable provisions of this Lease, Tenant nor shall pay such election prejudice or waive any other remedy of Landlord reserved under the terms of this Lease, including the right to Landlord draw the entire amount of the Security Deposit specified L/C, if applicable. The Security Deposit L/C shall be available for payment against the presentation of a sight draft by the Landlord (with simultaneous notice to Tenant) together with a certificate from Landlord that Tenant is in Paragraph 2.ddefault of its obligations hereunder beyond expiration of any applicable notice and cure periods and that Landlord is entitled, by the terms of this Lease, to draw upon the Security Deposit L/C. The proceeds of the Security Deposit L/C, if drawn by Landlord pursuant to the terms hereof, shall be held by Landlord and applied to reduce any amount owed by Tenant to Landlord. above Interest shall be payable on any proceeds held on account at the interest rate being paid by a standard commercial depository account. c. In the event that (i) Landlord draws the full amount of the Security Deposit L/C as a result of a default by Tenant, (ii) this Lease is not terminated by Landlord as a result of such default, (iii) such default is fully cured by Tenant, and (iv) there is no outstanding uncured default by Tenant, then the balance of the sums drawn (after the payment of any sums related to the curing of any defaults) shall be applied first to obtain a replacement letter of credit as security for Tenant’s 's performance hereunder, and the remaining balance, if any, will be refunded to Tenant. Upon the termination of this Lease and the payment in full to Landlord of all damages, costs and expenses to which Landlord is entitled, the balance of any funds drawn from the Security Deposit L/C after satisfying such obligations in full shall be refunded to Tenant’s covenants and obligations under this Lease; provided, however, . d. To the extent that the Security Deposit L/C is either lost or the issuing bank will 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 honor the Security Deposit from its other funds and no interest shall accrue or be payable to L/C, Tenant with respect thereto. Landlord may (but shall not be required to) use personally guarantees 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 proceeds of the Security Deposit shall not constitute a bar or defense L/C and will immediately remit 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 in cash to be held in accordance with this Section 6 of the Lease. e. Notwithstanding anything to the contrary contained in Section 6 of the Lease, provided Tenant has not been in default under the Lease beyond the expiration of any applicable notice and cure periods at any time during the Term of the Lease, Landlord shall permit the Security Deposit L/C to be amended (at Tenant's sole cost and expense) to reduce the face amount of the Security Deposit L/C according to the following schedule: -------------------------------------------------------------------------------- Date of Reduction New Security Deposit L/C Amount -------------------------------------------------------------------------------- February 1, 2006 $1,825,000.00 -------------------------------------------------------------------------------- February 1, 2007 $1,650,000.00 -------------------------------------------------------------------------------- February 1, 2008 $1,475,000.00 -------------------------------------------------------------------------------- February 1, 2009 $1,300,000.00 -------------------------------------------------------------------------------- February 1, 2010 $1,125,000.00 -------------------------------------------------------------------------------- February 1, 2011 $950,000.00 -------------------------------------------------------------------------------- February 1, 2012 $775,000.00 -------------------------------------------------------------------------------- February 1, 2013 $600,000.00 -------------------------------------------------------------------------------- In no event shall a reduction to the amount of the Security Deposit L/C be deemed to have occurred absent an amendment to the Security Deposit L/C in writing by Landlord the issuing bank. It shall be Tenant's sole obligation to obtain such written amendment from the issuing bank. The remaining Six Hundred Thousand and 00/100 Dollars ($600,000.00) shall be held as the particular purpose for which such amount was applied, Security Deposit during the initial Term of the Lease. Tenant shall immediately deposit with Landlord be required to maintain an amount sufficient equal to return one (1) month of the then-escalated Base Rent at the commencement of the Option term as a Security Deposit during the Option Terms set forth in Paragraph 8 below. Tenant shall have the option at any time after February 1, 2010, as long as Tenant is not in default under the Lease and has not been in default under the Lease for the prior twenty-four (24) months of the Term of the Lease, to convert the Security Deposit to cash. If Tenant elects to convert the amount specified Security Deposit to cash, such Security Deposit shall still be subject to reduction in Paragraph 2.daccordance with the above-referenced terms and conditions. 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 If Tenant is in default beyond the expiration or termination of any applicable notice and cure period prescribed under the Lease at any time during the Term of this Lease, Landlord shall return then Tenant's right thereafter to Tenant reduce 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 L/C (or the cash Security Deposit) pursuant to this subparagraph (e) shall no event longer apply and shall any such return be construed as an admission by Landlord that Tenant has performed all become null and void and of its covenants no further force 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)effect."

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 (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 the OE Payment 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 of this Lease, Tenant shall pay to Landlord a good-faith deposit in the Security Deposit specified amount of $ . Parties agree that this entire lease agreement is null and void until good-faith deposit is paid to Landlord. This good-faith deposit shall be retained by Landlord as damages if Tenant (a) fails to submit a properly executed & notarized co-signer responsibility form by an income-earning adult family member or friend within seven days of signing this lease agreement and (b) fails to follow through and lease the Premises according to the terms of this lease agreement. The good- faith deposit shall convert into the Tenant’s security deposit after 1st month’s rent is paid. Landlord shall hold deposit as security for the protection of the Premises from any damages, to be deposited into an account at Bank of Lexington, ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇ in Paragraph 2.d. above account #200-5360, and as security for Tenant’s performance of all of Tenant’s covenants and other obligations under this Lease; providedLease (“Security Deposit”). Tenant shall be responsible to Landlord for a minimum turnover fee of $150 in all cases, however, which shall be payable out of the Security Deposit. This minimum turnover fee represents an advance cleaning fee for cleaning the Premises upon expiration of this lease. The cleaning fee is only for normal maid service and normal professional carpet cleaning. Any additional services needed to clean the unit further will be taken out of the Security Deposit. Tenant shall not be entitled to any interest that may accrue on the Security Deposit. The Security Deposit shall bear no interest. Landlord shall be entitled to co-mingle the Security Deposit with Landlord’s other funds in said account above. If the Premises is not an advance rent deposit or an advance payment rented to more than one person, Tenants agree to work out the details concerning division 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 theretorefund among themselves. Landlord may (but pay the refund to any individual identified as “Tenant” on page 1 of this lease, and in doing so, satisfies its legal obligation for return of the deposit. Tenant shall clean Premises, paying particular attention to the stove, refrigerator, bathrooms, and walls. Premises must be in equal or better condition than at the time of occupancy. Move-in inspection sheet will determine condition. All debris, rubbish, and discards are removed and placed in dumpster. No stickers, scratches, or holes in walls, ceilings, or floors. Tenant must return all apartment & mailbox keys to Landlord. There is a $50 charge per key that is not be required to) use returned upon moving out. If Tenant fails to perform as stated above, and Landlord is forced to clean and/or repair premises and/or to restore the Premises to a rentable condition, then Landlord shall have the right to charge the fees and amounts specified within this lease agreement to clean, repair and/or restore the Premises, and to retain Tenant’s Security Deposit according to the fee schedules set forth herein. Although Landlord may assess these charges against the Security Deposit Deposit, nothing in this section shall prohibit landlord from fixing or any portion thereof otherwise repairing damage caused by Tenant and invoicing Tenant for said amounts, plus reasonable charges for Landlord’s time and expense, on a monthly basis. If the Premises are not left in the same or substantially the same condition as reflected in the move-in inspection form, Tenant shall be responsible to cure any Event of Default or to compensate Landlord for any damage all charges set forth herein for administrative work, cleaning, painting, and other damages to the Premises at the end of the Lease Term, which shall be due and payable by Tenant to Landlord incurs as a result at the end of Tenant’s failure to perform any the Term and payable out of its covenants or obligations hereunder, it being understood that any use the remainder of the Security Deposit (less the minimum turnover fee and minimum painting fee provided for above and herein). Landlord and Tenant acknowledge that the Uniform Residential Landlord and Tenant Act (“Act”) (Fayette County Ordinance #98-84 / KRS 383), in its definition of security deposit, makes mention of “damage” and “ordinary wear and tear” but does not explicitly define either concept. Landlord and Tenant further acknowledge that the Act fails to even offer examples of what findings constitute “damage” and “ordinary wear and tear.” In light of such ambiguity / lack of clarity, Landlord and Tenant desire to avoid potential dispute at the end of the lease term, specifically with respect to the Premises’ interior paint, regarding what findings fall within the undefined concept of “ordinary wear and tear” and what findings cross the threshold beyond “ordinary wear and tear.” Thus, Landlord and Tenant agree in advance that, specifically with respect to the Premises’ interior paint, the following graduated painting fee schedule shall not be utilized at the end of the lease term rather than trying to determine wall by wall and room by room what conditions constitute “ordinary wear and tear.” Tenant shall be responsible to Landlord for a bar minimum painting fee $100 if length of tenancy is one year or defense to any of Landlord’s remedies under this Lease or at lawless, $175 if tenancy is between one and two years, and $250 if tenancy is greater than two years. In such event and upon written notice from Landlord to Tenant specifying all cases, the amount minimum painting fee as set forth above shall be payable out of the Security Deposit so utilized by Landlord Deposit. Should Tenant be responsible for damage and/or loss of value to the Premises greater than the value of the remainder of the Security Deposit, less the minimum turnover fee and the particular purpose minimum painting fee provided for which such amount was appliedabove, 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 agrees to make such payment to Landlord for such loss within five fourteen (514) days after presentation of Landlord’s notice shall constitute an Event of Defaulta ▇▇▇▇ by Landlord for the damage and/or loss. Within The Security Deposit, less the minimum turnover fee and minimum painting fee provided for above, less any charges if applicable as set forth above and herein, less rent or other late fees or other charges due and owing, and less any unpaid utilities, is to be refunded within thirty (30) days after Tenant vacates the expiration Premises, provided no damage occurs, the Premises have been left in good condition, appearance and repair, and all of the terms of this Lease have been fulfilled. Any unpaid late fees, return-check charges, or other fees or charges accumulated over the period of this or any prior Lease on this property by this Tenant, at Landlord’s sole discretion, and without notice by Landlord and without Landlord waiving the right to collect such fees monthly or at the termination of this the Lease, may be deducted by Landlord shall return to Tenant from the Security Deposit or at the balance thereof then held by Landlord after application termination 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 sameLease instead being collected monthly from Tenant. Tenant hereby unconditionally and irrevocably waives authorizes 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 release of the Security Deposit to compensate Landlord for damages resulting from termination satisfaction and payment of any and all expenses incurred by Landlord due to Tenant’s non-compliance with the terms and conditions of this Lease Lease, as well as any late fees not paid in advance by Tenant. Once Tenant notifies Landlord of intent to not renew lease agreement, Tenant agrees to show Premises to prospective renters for Landlord over the last 90 days of the lease agreement. Tenant gives Landlord authorization to share contact information (e-mail and/or phone number) to prospective renters for the purpose of arranging a time to show Premises. Over the last 90 days of lease agreement Tenant agrees to set aside 15 minutes one day / week show Premises to prospective renters. If Tenant fails to cooperate with such showing, then Tenant agrees to forfeit entire security deposit to cover lost rent Landlord will likely incur by not having a renter secured for the Premises after Tenant’s move out. No portion of the deposit may be applied as Rent by Tenant for payment of any rent due to Landlord and the tenancy created hereunder full monthly Rent shall be received in hand on or before the 1st day of every month including the last month of occupancy. Tenant shall submit to Landlord a forwarding address within seven (including7) days after vacating the premises for the purpose of returning the deposit or for any other reason that might occur. At least seven (7) days prior to the Termination Date, without limitationTenant shall schedule a move-out walk through with Landlord, which shall occur after Tenant has vacated the property. Failure to schedule such walk through or appear for the move-out walk through shall be deemed a waiver of Tenant’s right to object to Landlord’s assessment of damages recoverable under California Civil Code Section 1951.2).or costs against Tenant and assessment of the security deposit against such damages or costs; and Tenant shall accept Landlord’s decision of the deposit refund or forfeiture according to the provisions stated herein. Should Tenant be responsible for damage and or loss of value to the premises greater than the value of the deposit, Tenant agrees to make payment to Landlord for such loss within fourteen

Security Deposit. Upon Tenant shall upon the execution hereof deposit with Landlord ($ ) as security (the “Security Deposit”) for the faithful performance of the conditions, covenants and terms of this Lease. Said Security Deposit may be applied by the Landlord in the event the Tenant fails to make a Rent or Additional Rent payment as called for herein above, but such application shall not excuse the Tenant shall pay to from the balance of any Rent or Additional Rent due. Landlord may also apply 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 reimburse itself for any damage Landlord incurs cost or expense incurred as a result of the Tenant’s failure to perform any of its covenants maintain, repair or obligations hereunder, it being understood keep the Leased Premises in the condition that any use of the Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies is required under this Lease or at lawTenant’s breach of any condition or covenant under this Lease. In such event and upon written notice from Landlord Tenant agrees to Tenant specifying the amount of replace the Security Deposit so utilized by immediately upon notice that the Landlord and has applied it for any of the particular purpose for which such amount was applied, reasons stated herein. Failure of the Tenant shall immediately deposit with Landlord an amount sufficient to return replace the Security Deposit to with 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 shall be considered a Default under this Lease. The Security Deposit shall be returned to Tenant, with interest if required by law, at the end of the Lease Term after deducting all expenses, if any, caused by the expiration breach of any condition or termination covenant of this LeaseLease or any sums due and unpaid by Tenant and any other expenses the Landlord may apply Security Deposit, as allowed by law. If the Landlord sells or leases the Building, 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 transfer the Security Deposit to compensate Landlord Purchaser or Lessor, in which event the Tenant will look only to the Purchaser or Lessor for damages resulting from termination the return of this Lease the Security Deposit, and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)any interest if applicable.

Security Deposit. Upon execution 11.1 Except where otherwise provided in writing, the Agent shall hold the deposit in accordance with the Housing Act 2004 and the Tenant Fees Act 2019. Such deposit shall be the equivalent of this Leasefive or six weeks rent. The Agent will within thirty days of the signing of the Tenancy Agreement (or such other period as shall be prescribed by legislation) subscribe to one of the designated Tenancy Deposit Schemes and within such period shall provide to the Landlord and to the Landlord's tenant full details of the scheme including such other information as may be reasonably required. 11.2 After the termination of the Tenancy the Landlord shall use his best endeavors to agree with his tenant what deductions should be made from the deposit and will in any event within ten days of the termination of the Tenancy notify the Agent of what sums/issues remain in dispute. 11.3 The Agent will, Tenant shall pay as soon as reasonably practicable after such notification, refer the dispute to the Administrator of the Tenancy Deposit Scheme subscribe to who will then determine matters in accordance with the provisions of that scheme. The Landlord agrees to provide such co-operation as is reasonably required to assist in such a referral and 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 termination of any other kind, nor a measure of dispute. This obligation does not in any way limit the Landlord’s damages upon Tenantright to make an application to the County Court where appropriate. 11.4 Except with the consent of the Landlord’s default. tenant or where there has been a determination made by the relevant Tenancy Deposit Scheme or by a Court of Law, the Landlord shall accepts that notwithstanding the terms of his Tenancy Agreement, no deductions will be made from the deposit and that he will not be required entitled to segregate the Security Deposit from its other funds and no claim 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 thereon. 11.5 Westwood ▇▇▇▇▇ Lettings LTD is a result of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use member of the Security Deposit shall not constitute a bar or defense to Protection Service which is administered by: The Deposit Protection Service The Pavilions Bridgwater Road Bristol BS99 6AA +▇▇ (▇)▇▇▇ ▇▇▇ ▇▇▇▇ ▇▇▇.▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇ 1. If there is no dispute, Westwood ▇▇▇▇▇ Lettings LTD will keep 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 amounts as deductions where expenditure has been incurred on behalf of the Security Deposit so utilized by Landlord and landlord or repay 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 whole 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 deposit according to the conditions of the tenancy agreement with the landlord and the tenant. Payment of the deposit will be construed as an admission made within 10 days of written agreement by Landlord that Tenant has performed all of its covenants the landlord and obligations hereunderthe tenant. 2. No holder If following notification of a Superior Interest (as defined dispute to Westwood ▇▇▇▇▇ Lettings LTD and reasonable attempts have been made in Paragraph 21 below)that time to resolve any differences of opinion, nor any purchaser at any judicial or private foreclosure sale there remains an unresolved dispute between the landlord and the tenant over the allocation of the Real Property deposit, it may be submitted to DPS for adjudication. All parties agree to co-operate with an adjudication. Either party may decide to take the dispute to the small claims court rather thanDPS. 3. The statutory rights of either the landlord or any portion thereof, shall be responsible tenant to Tenant take legal action against the other party are not affected. 4. It is not compulsory for the Security Deposit unless parties to refer a dispute to DPS for adjudication. The parties may seek a decision from the Court. However, this process may take longer and only will incur costs. If the parties do agree that DPS may resolve the dispute, then they have to abide by that decision. 5. The Agent must co-operate with DPSin 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 adjudication of the scope of such waiver, acknowledges that Landlord may use all or dispute and follow any part recommendations of the Security Deposit DPS. 6. Where there are rent arrears, the deposit will in the first instance be used to compensate Landlord for damages resulting from termination of this Lease clear these and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)any balance will go towards dilapidations.

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 the execution of this Lease, Tenant shall pay a Security Deposit in an amount equal to Landlord one (1) month of Monthly Rent (the “Security Deposit”). For clarification, the Security Deposit specified does not constitute pre-payment of any Rent (not first month’s rent, not last month’s rent, not any rent). Tenant remains obligated to pay Monthly Rent each month for the entire Lease term in Paragraph 2.daddition to the Security Deposit. above Landlord shall hold the Security Deposit as security for Tenant’s the full performance of all of Tenant’s covenants and obligations under this Lease; provided. In addition, howeverTenant shall pay a rental application fee of $50 which is non-refundable to Tenant and does not apply towards Rent or any other payment obligation under this Lease. The application fee is deemed fully earned upon payment, and covers the costs of Landlord and its property manager to review the Tenant’s credit-history, rental application, and other relevant information in electing whether to lease the Premises to Tenant. Acceptance of the rental application fee does not guarantee that the Premises will be leased to Tenant. If Tenant defaults in any of its payment obligations under this Lease, Landlord shall have the right, but not the obligation, to apply the Security Deposit is not an advance rent deposit or an advance to satisfy such payment of any other kindobligations, nor a measure of Landlord’s damages upon Tenant’s default. in which event, in order to keep this Lease in effect, Tenant shall promptly pay Landlord shall not be required the amount necessary to segregate replenish 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 full amount of the Security Deposit shall not constitute a bar Deposit. Following the expiration or defense to any earlier termination of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant specifying Lease, the remaining amount of the Security Deposit so utilized by Landlord funds will be used to pay for costs to re-key the Premises, clean the Premises, and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit make any repairs necessary to the amount specified in Paragraph 2.dPremises. 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 In connection with the expiration or termination of this Lease, Tenant shall cooperate with the “offboarding” process of Landlord shall return and its property manager, which includes, without limitation, returning keys, inspection the Premises to determine Tenant’s cleaning and repair obligations, and identifying any and all items or fixtures to be removed by Tenant from the Security Deposit or Premises. After completing the balance thereof then held by Landlord after application of offboarding process and applying the Security Deposit as permitted hereunderdescribed above, if any portion thereof has not been used, it will be refunded to Tenant within sixty (60) days after the termination or expiration of the Lease; provided, however, that in no event shall if any such return be construed as an admission amounts are still owed 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 after applying the Security Deposit unless Deposit, Tenant shall pay the remaining balance in full within ten (10) days, and only to interest shall accrue at the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections rate of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that Landlord may use eighteen percent (18%) per annum on 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)amounts not paid within said 10-day period until paid in full.

Security Deposit. Upon Concurrently with the execution of this Leasehereof, Tenant shall pay to Landlord the agreed upon Security Deposit specified in Paragraph 2.d. above as security for Tenant’s the full and faithful performance of all of Tenant’s covenants and obligations under this Lease. If at any time during the Term, Tenant shall be in default in the payment of Rent or in default for any other reason, Landlord may use, apply or retain all or part of the Security Deposit for payment of any amount due to Landlord or to cure such default or to reimburse or compensate Landlord for any liability, loss, cost, expense or damage (including attorneys’ fees) which Landlord may suffer or incur by reason of Tenant’s defaults. If Landlord uses or applies all or any part of the Security Deposit, Tenant shall, on demand, pay to Landlord a sum sufficient to restore the Security Deposit to the full amount required by this Lease. Upon expiration of the Term or earlier termination of this Lease and after Tenant has vacated the Leased Premises, Landlord shall return the Security Deposit to Tenant, reduced by such amounts as may be required by Landlord to remedy defaults on the part of Tenant in the payment of Rent, to repair damages to the Leased Premises caused by Tenant and to clean the Leased Premises. The portion of the deposit not so required shall be paid over to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after expiration of the Term or earlier termination hereof. Landlord shall hold the Security Deposit for the foregoing purposes; 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 no obligation to segregate the Security Deposit from its other general 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 pay interest in respect thereof. No part of the Security Deposit shall not constitute a bar be considered to be held in trust, or defense to be prepayment of any of Landlord’s remedies monies to be paid by Tenant under this Lease Lease. Tenant hereby waives (i) the protections of Section 1950.7 of the California Civil Code, as it may hereafter be amended and any and all other laws, rules and regulations applicable to security deposits in the commercial context (“Security Deposit Laws”), and (ii) any and all rights, duties and obligations either party may now or, in the future, will have relating to or at law. In such event and upon written notice arising from Landlord to Tenant specifying the amount of the Security Deposit so utilized by Landlord and Laws. Notwithstanding anything to the particular purpose for which such amount was appliedcontrary herein, Tenant shall immediately deposit with Landlord an amount sufficient to return the Security Deposit may be retained and applied by Landlord (a) 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 offset Rent which is unpaid either before or after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held and (b) against other damages suffered by Landlord before or after application termination of this Lease. If Landlord sells its interest in 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 Project (as defined in Paragraph 21 below), nor any purchaser at any judicial or private foreclosure sale of the Real Property or any portion thereof) during the Term hereof and deposits with the purchaser thereof the then unappropriated funds deposited by Tenant as aforesaid, Landlord shall be responsible discharged from any further liability with respect to Tenant for the such 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 Section 4 shall not apply to Pharmedium Healthcare Corporation as the original tenant under this Lease, or to any affiliate of Pharmedium Healthcare Corporation (either, a “Pharmedium Party”), but shall apply to any subsequent party succeeding to the interests of a Pharmedium Party under this Lease. Upon the earlier of (i) the execution of any assignment of the tenant’s interest in this Lease to any party other than a Pharmedium Party, or (ii) the date on which any party other than a Pharmedium Party shall take possession of the Premises, Tenant shall pay to deposit with Landlord the amount specified in the Basic Lease Information as the Security Deposit specified in Paragraph 2.d. above (the “Security Deposit”), 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 on demand an amount sufficient to return replenish the Security Deposit to the amount specified Deposit. 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; provided, however, that in no event with Landlord’s general and other funds. Landlord shall any such return not 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 required 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 pay interest on the Security Deposit to compensate Landlord for damages resulting from termination Tenant. The provisions of this Section 4 do not in any way alter or expand any Tenant’s (including any Pharmedium Party) rights or obligations with respect to assignment of the Lease and or subletting the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Premises as otherwise provided in this Lease.

Security Deposit. In addition, Tenant agrees to deposit with Landlord on the date hereof the sum of Seven thousand and 00/100 Dollars ($7,000.00), which shall be held by Landlord, without obligation for interest, as security for the performance of Tenant's obligations under the Lease, it being expressly understood and agreed that this deposit is not an advance rental deposit or a measure of Landlord's damages in case of Tenant's default. Upon execution each occurrence of an event of default, Landlord may use all or part of the deposit to pay rent or other payments due Landlord under this Lease, and the cost of any other damage, injury, expense or liability caused by such event of default without prejudice to any other remedy provided herein or provided by law. On demand, Tenant shall pay Landlord the amount that will restore the 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 Use be amended to accommodate a material change in Paragraph 2.d. above as security for Tenant’s performance the business of all of Tenant’s covenants and obligations under this Lease; providedTenant or to accommodate a Tenant or assignee, however, that Landlord shall have the right to increase the Security Deposit is not an advance rent 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. The security deposit or an advance payment shall be deemed the property of any other kind, nor a measure of Landlord’s damages upon Tenant’s default. Landlord and Landlord shall not be required to segregate keep the Security Deposit separate from its other funds and no interest general accounts, but any remaining balance of such deposit 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 returned by 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 from 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 time Tenant'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 under this Lease and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)have been fulfilled.

Security Deposit. Upon execution If any cash is deposited with Landlord as a Security Deposit pursuant to Section 4.5, such amounts shall constitute a Security Deposit and if Landlord calls on the LOC, any funds remaining after cure of any then outstanding defaults shall become the Security Deposit, and such amounts shall serve as a security for the performance by Tenant of the provisions 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 apply all or any part of the Security Deposit to compensate any unpaid rent from Tenant or to cure any other defaults of Tenant. If Landlord uses any part of the Security Deposit, Tenant shall restore the Security Deposit to its original amount within 10 days after Landlord’s written request. The Security Deposit shall be commingled with Landlord’s other funds and shall not bear interest. If Landlord transfers its interest in the Premises, Landlord shall transfer the Security Deposit to its successor in interest, whereupon Landlord shall be automatically released from any liability for damages resulting the return of the Security Deposit, provided that transferee assumes all of Landlord’s obligation under the Lease regarding return of the Security Deposit. If, at the end of the Lease Term, Tenant has fully cured any defaults under 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 by this Lease; provided that Landlord may hold back a portion of the Security Deposit until final determination of Tenant’s share of costs such as insurance and taxes, whereupon any final adjustment shall be made and any remaining Security Deposit shall be returned to Tenant. As with all other defaults, if the Premises are not surrendered in the condition required, Landlord may perform the work necessary to put them in that condition and deduct the cost from termination the Security Deposit. Landlord’s obligations with respect to the Security Deposit are those of this Lease a debtor and not of a trustee, and Landlord can commingle the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Security Deposit with Landlord’s general funds.

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 execution 9.1. Tenant shall deposit with Landlord on or before the Commencement Date of this Lease a security deposit (together with all interest earned thereon, the “Security Deposit”) in an amount equal to the Security Deposit Amount, which Security Deposit shall be held by Landlord as security for the performance by Tenant of all of the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant defaults with respect to any provision of this Lease, Tenant shall pay including, without limitation, any provision 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 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 LeaseRent, Landlord shall return have the right, but not the obligation, to Tenant the Security Deposit 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 for the payment of any Rent or any other sum in default, or to compensate Landlord for damages resulting from termination any other loss or damage which Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, Tenant shall, upon written demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to the Security Deposit Amount, and Tenant’s failure to do so shall be a material breach of this Lease Lease. Landlord shall not be required to keep the Security Deposit separate from its general fund, but Tenant shall be entitled to any interest on the Security Deposit (to be credited to and added to the tenancy created hereunder Security Deposit) at the rate as may be actually earned thereon by Landlord from time to time but no less often than annually. Tenant shall provide landlord or its designee with such information and instruments (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Tenant’s taxpayer identification number) as Landlord may reasonably require in order to maintain the Security Deposit in an interest-bearing account. 9.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 9.3. Landlord shall deliver the unapplied portion of the Security Deposit to any purchaser of Landlord’s interest in the Premises and thereupon Landlord shall be discharged from any and all further liability with respect to the Security Deposit. This provision shall also apply to any subsequent transfers. 9.4. If as of the expiration of the Term, Tenant shall have surrendered the Premises in the condition required by this Lease and shall have paid all Rent, the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within ninety (90) days after the expiration or earlier termination of this Lease.

Security Deposit. Upon execution of this Lease, (a) Tenant shall pay to deposit with Landlord upon Tenant's execution hereof the Security Deposit specified set forth in Paragraph 2.d. above 1.6 of this lease as security for Tenant’s 's faithful performance of all of Tenant’s covenants and 's obligations under this Lease; providedlease. If Tenant fails to pay Base Rent or Additional Rent or otherwise defaults under this lease, howeverand such failure or default by Tenant continues after the giving of all required notices by Landlord and the expiration of all applicable cure periods, that then and in any such event, Landlord may use the Security Deposit is not an advance rent deposit or an advance for the payment of any other kindamount due Landlord or to reimburse or compensate Landlord for any liability, nor a measure cost, expense, loss or damage (including reasonable attorney's fees) which Landlord may suffer or incur by reason thereof. Tenant shall on demand pay Landlord the amount so used or applied so as to restore the Security Deposit to the amount set forth in Paragraph 1.6 of Landlord’s damages upon Tenant’s defaultthis lease. 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 keep all or any part of the Security Deposit to compensate in an interest bearing account. Landlord for damages resulting from shall, at the expiration or earlier termination of the Term and after Tenant has vacated the demised premises, return to Tenant that portion of the Security Deposit not used or applied by Landlord. No part of the Security Deposit shall be considered to be prepayment for any monies to be paid by Tenant under this Lease lease. (b) Tenant shall have the right to deliver to Landlord an unconditional, irrevocable letter of credit in substitution for the cash Security Deposit required in Paragraph 5(a) above, subject to the following terms and condition. Such letter of credit shall be: (i) in the tenancy created hereunder form attached to and hereby made a part of this lease as Exhibit B; (ii) at all times in the amount of the Security Deposit set forth in Paragraph 1.6 of this lease and shall permit multiple draws without a corresponding reduction in the amount of the letter of credit; (iii) issued by a commercial bank reasonably acceptable to Landlord from time to time and located in the United States of America; (iv) made payable to Landlord and expressly transferable and assignable at no charge, which transfer/assignment shall be conditioned only upon delivery of notice to the issuer of the letter of credit; (v) payable at sight upon presentment to a local branch of the issuer of a sight draft stating only that Landlord is entitled to draw on the letter of credit pursuant to this lease; (vi) for a term not less than one year; and (vii) contain an "evergreen" provision which provides that the letter of credit will be automatically renewed on an annual basis unless the issuer delivers at least 30 days prior written notice of cancellation to Landlord and Tenant, such that the letter of credit remains in existence through the date occurring 90 days after the expiration of the Term. At least 30 days prior to the then current expiration date of such letter of credit, Tenant shall either: (A) cause such letter of credit to be renewed (or automatically and unconditionally extended) from time to time for a period of one year through the 90th day after the expiration of the Term; or (B) cause such letter of credit to be replaced with cash in the amount of the Security Deposit. Notwithstanding anything in this lease to the contrary, any cure or grace period set forth in Paragraph 13.1 of this lease shall not apply to any of the foregoing, and, specifically, if Tenant fails to timely comply with the foregoing terms of this Paragraph, then Landlord shall have the right to immediately draw upon the letter of credit without notice to Tenant and hold the proceeds as the Security Deposit. Each letter of credit shall be issued by a commercial bank that has a credit rating with respect to certificates of deposit, short term deposits or commercial paper of at least A-3 (or equivalent) by ▇▇▇▇▇'▇ Investment Service, Inc., or at least AA (or equivalent) by Standard & Poor's, a division of McGraw Hill, and shall be otherwise acceptable to Landlord, in its reasonable discretion. If the issuer's credit rating is reduced below A-3 (or equivalent) by ▇▇▇▇▇'▇ Investment Service, Inc. or below AA (or equivalent) by Standard & Poor's, a division of McGraw Hill, or if the financial condition of such issuer changes in any other materially adverse way, then Tenant shall obtain from a different issuer a substitute letter of credit that complies in all respects with the requirements of this paragraph, and Tenant's failure to obtain such substitute letter of credit within 10 days following its receipt of Landlord's demand therefor (and Tenant's failure to do so shall, notwithstanding anything in this lease to the contrary, constitute a Default for which there shall be no notice or grace or cure period applicable thereto other than the aforesaid 10 day period) shall entitle Landlord to immediately draw upon the then existing letter of credit in whole or in part, without notice to Tenant and to hold the proceeds thereof as the Security Deposit. If the issuer of the letter of credit is insolvent or placed into receivership or conservatorship by the Federal Deposit Insurance Corporation or Resolution Trust Corporation, or any successor or similar entity, or if a trustee, receiver or liquidator is appointed for the issuer, then Tenant shall obtain from a different issuer a substitute letter of credit that complies in all respects with the requirements of this paragraph, and Tenant's failure to obtain such substitute letter of credit within 10 days following its receipt of Landlord's demand therefor (and Tenant's failure to do so shall, notwithstanding anything in this lease to the contrary, constitute a Default for which there shall be no notice or grace or cure periods applicable thereto other than the aforesaid 10 day period) shall entitle Landlord to immediately draw upon then existing letter of credit in whole or in part, without notice to Tenant and to hold the proceeds thereof as the Security Deposit. Landlord shall have the right to assign its interest (including, without limitation, damages recoverable under California Civil Code Section 1951.2)a collateral assignment thereof) in any letter of credit delivered to it by Tenant pursuant to this paragraph to the holder of any Mortgage and Landlord shall give notice of any such assignment to Tenant. If requested by any such Mortgagee, Tenant shall obtain an amendment to such letter of credit which names such Mortgagee as the beneficiary thereof in lieu of Landlord. Any failure or refusal of the issuer to honor the letter of credit shall be at Tenant's sole risk and shall not relieve Tenant of its obligations hereunder with respect to the Security Deposit.

Security Deposit. Upon Tenant’s 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 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 the Security Deposit to cure such default, and to compensate Landlord for all damages actually suffered by Landlord which are directly attributable to such default, including, without limitation, reasonable attorneys' fees and costs incurred by Landlord. Upon demand by Landlord, Tenant shall promptly pay to Landlord a sum equal to any portion of the Security Deposit so used by Landlord, in order to maintain the Security Deposit in the amount specified set forth in Paragraph 2.dthe Principal Lease Provisions above (subject to increase as set forth below). Tenant’s failure If the Basic Monthly Rent shall, from time to make time, increase during the Term, then, upon demand by Landlord, Tenant shall deposit with Landlord cash in an amount necessary to increase the Security Deposit such payment that it shall at all times bear the same proportion to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Defaultthe then‑current Basic Monthly Rent as the initial Security Deposit bears to the initial Basic Monthly Rent. Within thirty (30) 45 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 of the scope of such waiver, acknowledges that Landlord may use all 1950.7 (or any part successor statute), and any similar principals 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 and as a result of Tenant’s default, Landlord shall be entitled to immediately apply the tenancy created hereunder (including, without limitation, Security Deposit against damages recoverable computed under California Civil Code Section 1951.2), without the requirement that Tenant first be given notice and an opportunity to cure, and notwithstanding that the damages have not been finally adjudicated by a court.

Security Deposit. Upon execution The Letter of Credit evidencing 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 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 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, draw on the Letter of Landlord’s remedies under this Lease Credit and use the proceeds thereof to the extent necessary to make good any arrearages of Rent or at lawto satisfy any other covenant or obligation of Tenant hereunder. In Following any such event and upon written notice from Landlord application of the Security Deposit, Tenant shall cause the Letter of Credit to Tenant specifying be amended to increase the amount available for draw thereunder to the original amount of the Letter of Credit (subject to the reduction of the Letter of Credit and Security Deposit so utilized by as provided below). If Landlord and transfers its interest in the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to return Project during 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 term of this Lease, Landlord shall return may assign the Letter of Credit to Tenant the Security Deposit or 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 return of the scope Letter of such waiver, acknowledges that Landlord may use Credit or any draws thereof. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Letter of Credit to its original face amount. No application of the proceeds of the Letter of Credit by Landlord will be deemed to have cured Tenant's default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. So long as no Event of Default has occurred and is continuing on each anniversary date of this Lease, the Security Deposit to compensate Landlord for damages resulting from termination will reduce in amount automatically on such anniversary date in the amount set forth on Exhibit "K" hereto: on the first and second anniversary dates of this Lease and shall be released and of no further force or effect on the tenancy created hereunder third anniversary date of this Lease. Tenant shall have the right to effect such reduction by substituting a new Letter of Credit in the reduced face amount so long as such Letter of Credit is otherwise in the form required by this Lease. Tenant acknowledges that if Tenant fails to timely cause the expiry date of the Letter of Credit (includingsubject to the reduction of the Letter of Credit and Security Deposit as provided below) to be extended for a period of at least one (1) year thirty (30) days prior to the then applicable expiry date, without limitation, damages recoverable Landlord shall have the right to present the Letter of Credit for payment in the full amount available under California Civil Code Section 1951.2)the Letter of Credit and thereafter to hold and apply the proceeds thereof as a Security Deposit in accordance with its rights under this Lease.

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 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 Lease, Tenant shall pay to Landlord deposit the Security Deposit specified with a financial institution in Paragraph 2.d. above as security for Tenant’s performance an account of all of Tenant’s covenants and obligations under Landlord to be designated by Landlord upon signing this Lease; provided, however, that Lease (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 defaultAccount”). Landlord shall not be required to segregate the Security Deposit from its the other funds of Landlord and no maintain the Security Deposit in the account together with all interest accrued thereon until the Security Deposit is applied or returned in accordance with the terms hereof. The Security Account shall accrue or be payable an interest bearing account offering the highest yield generally available for deposits similar in amount to Tenant with respect theretothe Security Deposit. Landlord may (but shall instruct the financial institution maintaining the Security Account to deliver a copy of the account statements regarding the Security Account to Tenant. Any balance shown in the Account, whether or not be required to) use resulting from the deposit of the Security Deposit or any portion thereof to cure any Event of Default or to compensate Landlord for any damage Landlord incurs as the reinvestment interest accrued thereunder, shall become 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 and may not constitute a bar be disposed of by Landlord except if disposed of in accordance with the terms of this Lease. All interest or defense to any of Landlord’s remedies under this Lease or at law. In such event and upon written notice other return resulting from Landlord to Tenant specifying the amount deposit of the Security Deposit so utilized by Landlord in the Security Account minus any applicable expenses resulting from the account fees payable for the maintenance of the Security Account and income tax derived from interest payments thereunder, if any, shall be reinvested in the particular purpose for which Security Account (and hence bear interest) any such amount was appliedto be considered as a part of the Security Deposit subject to the terms and conditions set forth in the Lease). If Tenant does not fulfill any of its obligations under the Lease, Tenant Landlord may apply the Security Deposit on account of such obligation or to reimburse Landlord for any sum which Landlord may expand due to Tenants default. If Landlord applies any part of the Security Deposit, Tenant, immediately after written notice from Landlord, shall immediately deposit with Landlord an the amount sufficient to return so applied so that Landlord shall have the full Security Deposit available at all times during the Term. If Tenant complies with all the terms, covenants and conditions of this Lease, the Security Deposit (or any balance thereof, including anciliary amounts thereto) shall be returned 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 , together with interest accrued thereon, not later than thirty (30) days after the expiration or termination Expiration Date and delivery of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application 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 (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 entire Premises 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)Landlord.

Security Deposit. Upon execution Tenant has deposited with First Meridian Management LLC ENTER AMOUNT as security for the performance of this Lease. The security deposit shall serve as a fund from which the Landlord may (a) obtain reimbursement for losses, Tenant shall pay damages and expenses due to unreasonable wear and tear or damage to the Premises or resulting from ▇▇▇▇▇▇'s failure to maintain the Premises as required in the Lease and (b) recover any other amounts that may become due and owing 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 's damages upon Tenant’s default. Landlord shall not be required limited 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 security deposit. Whenever Landlord and applies any portion of the particular purpose security deposit for which such amount was appliedthe purposes stated above, Tenant shall immediately promptly pay Landlord the funds necessary to restore the security deposit with to its original amount. Any portion of the security deposit that is not applied by Landlord an amount sufficient for the purposes stated above shall be returned to return Tenant, at the Security Deposit to the amount specified in Paragraph 2.d. Tenant’s failure to make such payment to Landlord forwarding address supplied by ▇▇▇▇▇▇ at that time, within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) 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 surrender of the Security Deposit as permitted hereunder; providedPremises to Landlord, however, that in no event shall together with a statement itemizing any such return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereunderdeductions. 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, interest shall be responsible to Tenant paid on the security deposit unless the security deposit exceeds one month's rent. THE SECURITY DEPOSIT MAY NOT BE APPLIED BY TENANT TO THE PAYMENT OF ANY RENT DUE UNDER THIS LEASE. • Electric- The Illuminating Company 1-800-589-3101 • Gas – Dominion ▇-▇▇▇-▇▇▇-▇▇▇▇ The following utilities are included: • Water** • Sewer** • Trash **Water and Sewer: First Meridian Management LLC will pay for the Security Deposit water and sewer bills unless they are more than 2x the yearly average. This is only caused by higher usage or a leak and only tenants will be responsible for both and to reach out to First Meridian Management LLC via the service email address: ▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇▇▇.▇▇▇ when they are experiencing any type of leak or running toilet etc. First Meridian Management LLC will investigate any issue free of charge to the extent such holder tenant and fix them unless the leak or purchaser shall have actually received damage was caused directly by the sametenant. Tenant hereby unconditionally and irrevocably waives If the benefits and protections unit is a multi-family then each tenant will be responsible equally for the higher water bill. Occupants: The number of California Civil Code Section 1950.7occupants is limited to ENTER, and, without limitation of only the scope of such waiver, acknowledges that Landlord following persons may use all or any part of the Security Deposit to compensate Landlord for damages resulting from termination of live in this Lease and the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)dwelling.

Security Deposit. Upon Concurrently with Tenant’s execution of this Lease, Tenant shall pay to deposit with Landlord the Security Deposit specified a cash sum 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 stated in the Summary of Basic Lease Information. Landlord shall hold the Security Deposit as security for the performance of Tenant’s obligations under this Lease. If Tenant defaults on any provision of this Lease, Landlord may, without prejudice to any other remedy it has, apply all or part of the Security Deposit to: (a) any Rent or other sum in default; (b) any amount that Landlord may spend or become obligated to spend in exercising Landlord’s rights following a default by Tenant (as provided below); or (c) any expense, loss, or damage that Landlord may suffer because of Tenant’s default. Tenant waives the provisions of California Civil Code Section 1950.7, and all other provisions of law now in force or that become in force after the date of execution of this Lease, that provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant, or to clean the Premises. Landlord and Tenant agree that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other foreseeable or unforeseeable loss or damage caused by the particular purpose for which such amount was appliedact or omission of Tenant or Tenant’s officers, agents, employees, independent contractors, or invitees. If Landlord disposes of its interest in the Premises, Landlord shall deliver or credit the Security Deposit to Landlord’s successor in interest in the Premises and thereupon be relieved of further responsibility with respect to the Security Deposit. If Landlord applies any portion of the Security Deposit, Tenant shall immediately shall, within thirty (30) days after demand by Landlord, deposit with Landlord an amount sufficient to return restore the Security Deposit to its original amount. Tenant is not entitled to any interest on the amount specified in Paragraph 2.dSecurity Deposit and may commingle the Security Deposit with other funds of Landlord. The unused portion of the Security Deposit, if any, shall be returned to the last known address of Tenant or the last assignee of Tenant’s failure to make such payment to Landlord interest under this Lease, 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, 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)Term.

Security Deposit. Upon Tenant shall deposit with Landlord upon execution hereof $15.000.00 as security for Tenant’s faithful performance of Tenant’s obligation hereunder. If Tenant fails to pay 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 said deposit for the payment of any Rent or other charge in default or for the payment of any other sum to which Landlord may become obligated by reason of Tenant’s default, or to compensate Landlord for any loss or damage which Lessor may suffer thereby. 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 me full amount herein above stated and Tenant’s failure to do so shall be a material breach of this Lease. If the monthly Rent shall, from time to time increase during the Lease Term, Tenant shall pay thereupon deposit with Landlord additional security deposit so that the amount of security deposit held by Landlord shall at all times bear the same proportion to Landlord current rent as the Security Deposit specified original security deposit bears to the original monthly Rent set forth in Paragraph 2.d3A hereof. above Landlord shall not be required to keep said deposit separate from its general accounts. If Tenant performs all of Tenant’s obligations hereunder, said deposit, or so much thereof as has not theretofore been applied by Landlord shall be returned, without payment of interest or other increment for its use to Tenant (or at Landlord’s option, to the last assignee, if any, of Tenant’s interest hereunder) at the expiration of the Lease Term hereof, and after Tenant has vacated the Premises. No trust relationship is created herein between Landlord and Tenant with respect to said Security Deposit. Tenant hereby agrees not to look to any mortgagee as mortgagee, mortgagee-in-possession or successor in title to the Premises for accountability for any security deposit required by Landlord hereunder, unless said sums have actually been received by said mortgagee as security for Tenant’s performance of all of Tenant’s covenants and obligations under this Lease; provided, however, that . Landlord may deliver the Security Deposit is not an advance rent deposit or an advance payment of any other kind, nor a measure funds deposited hereunder by Tenant to the purchaser of Landlord’s damages upon Tenant’s default. interest in the Premises, in the event that such interest is sold, and thereupon Landlord shall not be required to segregate the Security Deposit discharged from its other funds and no interest shall accrue or be payable to Tenant any further liability 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)said security deposit.

Security Deposit. Upon execution Tenant has deposited with Landlord the Security Deposit as security for the faithful performance and observation of Tenant of the terms, provisions and conditions of this Lease. It is agreed that in the event Tenant defaults in respect of any of the terms, provisions and conditions of this Lease, Tenant shall pay to Landlord may use, apply or retain the whole or any part of the Security Deposit specified in Paragraph 2.d. above as security to the extent required 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 Annual Rent, Additional Rent, or any other kind, nor a measure of Landlord’s damages upon Tenant’s default. sum as to which Tenant is in default or for any sum which Landlord shall not may expend or may be required to segregate expend by reason of Tenant's default in respect of any of the terms, covenants and conditions of this Lease, including but not limited to any damage or deficiency accrued before or after summary proceedings or other reentry by Landlord, including the costs of such proceeding or reentry and further including, without limitation, reasonable attorney's fees. It is agreed that Landlord shall always have the right to apply the Security Deposit from its Deposit, or any part thereof, as aforesaid, without notice land without prejudice to any other funds and no interest shall accrue remedy or be payable to Tenant with respect thereto. remedies which Landlord may (but shall not be required to) use have, or Landlord may pursue any other such remedy or remedies in lieu of applying the Security Deposit or any portion thereof part thereof. No interest shall be payable on the Security Deposit. If Landlord shall apply the Security Deposit in whole or in part, Tenant shall upon demand pay the Landlord the amount so applied to cure any Event restore the Security Deposit to its original amount. In the event that Tenant shall fully and faithfully comply with all of Default or to compensate Landlord for any damage Landlord incurs as a result the terms, provisions, covenants and conditions of Tenant’s failure to perform any of its covenants or obligations hereunderthis Lease, 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 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 ninety (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (3090) days after the expiration or termination date fixed as the end of the Lease and after delivery of entire possession of the Premises to Landlord in accordance with the terms of this Lease. In the event of a sale or other transfer of the Building, or leasing of the entire Building including the Premises subject to ▇▇▇▇▇▇'s tenancy thereunder, Landlord shall return to Tenant transfer the Security Deposit then remaining to the vendee or lessee and Landlord shall thereupon be released from all liability for the balance thereof then held by Landlord after application return of the such Security Deposit as permitted hereunderto Tenant; provided, however, that in no event shall any such and ▇▇▇▇▇▇ agrees to look solely to the new Landlord for the return be construed as an admission by Landlord that Tenant has performed all of its covenants and obligations hereundersaid Security Deposit then remaining. No The holder of a Superior Interest (as defined in Paragraph 21 below), nor any purchaser at any judicial mortgage upon the Building or private foreclosure sale of the Real Property or any portion thereof, Lot shall never be responsible to Tenant for the Security Deposit or its application or return 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 actually have been received in hand by such holder. Tenant further convenants that it will not assign or encumber or attempt to compensate assign or encumber the Security Deposit and that neither Landlord for damages resulting from termination of this Lease and the tenancy created hereunder (includingnor its successors or assigns shall be bound by any such assignment, without limitationencumbrance, damages recoverable under California Civil Code Section 1951.2)attempted assignment or attempted encumbrance.

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$2,014,492.75 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 $402,898.56, 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 $402,898.56, 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 Contemporaneously with Tenant’s 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 or (as defined in Section 17). Notwithstanding anything to compensate the contrary contained herein, upon the first day after the expiration of the twelfth (12th) Lease Month of the Term (the “Reduction Date”), provided that Tenant is not then in default of this Lease and Landlord for has not applied 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 portion of the Security Deposit in accordance herewith, the Security Deposit shall not constitute a bar or defense be reduced to $46,935.90, with any balance being held by Landlord in excess of such amount to be returned Tenant within thirty (30) days of the Reduction Date. 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 a part of the Security Deposit to perform any obligation Tenant fails to perform hereunder or in connection with Landlord’s remedies under this Lease or at lawLease. 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.dthen required to be held by Landlord pursuant hereto. Tenant’s failure Subject to make such payment the requirements of, and conditions imposed by, Laws applicable 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 Leasesecurity deposits under commercial leases, Landlord shall shall, within the time required by applicable Law, return to Tenant the Security Deposit or the balance thereof then held by Landlord after application portion of the Security Deposit remaining after deducting all damages, charges and other amounts permitted by Law. Landlord and Tenant agree that such deductions shall include, without limitation, all damages and losses that Landlord has suffered or that Landlord reasonably estimates that it will suffer as permitted hereunder; provided, however, that in no event shall a result of any such return be construed as an admission breach of this Lease by Landlord that Tenant. Tenant has performed all hereby waives the protections 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 Section 1950.7(c) of the Real Property California Civil Code, as it may hereafter be amended, or any portion thereofsimilar laws of like import. Unless required otherwise by applicable Law, the Security Deposit may be commingled with other funds, and no interest shall be responsible paid thereon. If Landlord transfers its interest in the Premises, Landlord may assign the Security Deposit to the transferee and, upon such transfer (and the delivery to Tenant of an acknowledgement of the transferee’s responsibility for the Security Deposit unless and only to the extent such holder or purchaser if required by Law), Landlord thereafter 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 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 (includingDeposit. OFFICE LEASE AGREEMENT ▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇, without limitation▇▇▇▇▇▇▇▇ ▇▇▇▇, damages recoverable under California Civil Code Section 1951.2).▇▇▇▇▇▇▇▇▇▇ Arcutis, Inc. 6

Security Deposit. Upon execution of this Lease, Tenant shall pay to Landlord deposit with Landlord, the sum of Eight Hundred Sixty Eight and 15/100 Dollars ($868.15) ("Security Deposit") as security for its prompt and proper performance of all the terms, covenants and agreements contained in this Lease. Tenant understands, acknowledges and agrees (i) that the Security Deposit specified is not a prepayment of rent; (ii) that Landlord shall not be obligated to apply the Security Deposit to any unpaid Rent or portion thereof, although it may do so at its option; (iii) that the Security Deposit does not constitute a trust fund; (iv) that the Security Deposit may be deposited in Paragraph 2.dany account including an interest bearing account maintained by Landlord, in any bank or depository selected by Landlord, and commingled with Landlord's other funds; and (v) that Landlord shall have no obligation to pay interest on the Security Deposit and Tenant shall have no right to recover from Landlord and Landlord shall have no obligation to account to Tenant for any interest, earnings or other increments which may accrue during the time the Security Deposit is held by Landlord, except as otherwise specifically provided in this Lease. above The Security Deposit shall be held by Landlord as security for Tenant’s the performance by Tenant of all of Tenant’s 's covenants and obligations under this Lease; provided. Landlord may, howeverfrom time to time, that the Security Deposit is not an advance rent deposit or an advance payment of without prejudice to any other kindremedy, 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 extent necessary to make good any arrearage of Rent or to satisfy any other covenant or obligation of the Tenant hereunder. Following any such payment application of the Security Deposit, Tenant shall pay to Landlord within five (5) days on demand the amount so applied in order to restore the Security Deposit to its original amount. If Tenant is not in default at the termination of Landlord’s notice this Lease and has paid in full all Rent and prorations and assuming Landlord is not required to make repairs to the Leased Premises caused by Tenant's vacating or by extraordinary wear and tear, or remove any then existing leasehold improvements, then the balance of the Security Deposit remaining after any such application shall constitute an Event of Defaultbe returned by Landlord to Tenant. Within thirty (30) days after If Landlord transfers its interest in the expiration or termination Leased Premises during the term 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 assign the Security Deposit to compensate Landlord the transferee and thereafter shall have no further liability 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)such Security Deposit.

Security Deposit. Upon execution of this Lease, Tenant shall pay to Landlord deposit the Security Deposit specified Amount with the Landlord or a letter of credit in Paragraph 2.dthe same amount in a form acceptable to Landlord in Landlord's reasonable discretion. above The issuer of the Letter of Credit shall be a banking institution with at least a rating of A and otherwise reasonably acceptable to Landlord. Although Landlord shall only have the right to draw under the Letter of Credit in the event of a default as security set forth herein, under the terms of the Letter of Credit, the sole condition to Landlord's draw upon the Letter of Credit shall be presentment to the issuer thereof, prior to or on the expiration date, of a demand for Tenant’s performance payment. The Letter of all Credit shall be self-renewing from year to year during the term of Tenant’s covenants this Lease so as to expire no earlier than thirty (30) days following the Lease expiration date and obligations under this Lease; providedshall contain such other customary terms as Landlord requires in its reasonable discretion, howeverincluding, but not limited to, a provision that the Security Deposit Letter of Credit is transferable to Landlord's successors and assigns. For and during the Term, Landlord shall have the irrevocable right, without further notice or approval of Tenant but not an advance rent deposit or an advance payment of the obligation from time to time without prejudice to 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. remedy Landlord may (but shall not be required to) use have on account thereof, to apply the Security Deposit or any portion thereof or interest thereon, to Landlord's damage resulting from any default after applicable grace and cure any Event of Default or to compensate Landlord for any damage Landlord incurs as a result of periods by Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use . On termination 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 Term, 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 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 portion thereof then held by Landlord after application shall be returned to Tenant, beyond the amount necessary to cure the breach of an provision of this Lease by Tenant. If all or any part of the Security Deposit as permitted is applied to an obligation of Tenant hereunder; provided, however, that in no event Tenant shall any such return be construed as an admission immediately upon request 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 restore the Security Deposit unless and only to the extent such holder or purchaser shall have actually received the sameits original amount. Tenant hereby unconditionally and irrevocably waives shall not have the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the scope of such waiver, acknowledges that right to call upon Landlord may use to apply all or any part of the Security Deposit to compensate cure any default or fulfill any obligation of Tenant, but such use shall be solely in the discretion of Landlord. Upon any conveyance by Landlord for damages resulting from termination of its interest under this Lease Lease, the Security Deposit shall be delivered by Landlord to Landlord's grantee or transferee. Upon any such delivery, Tenant hereby releases Landlord herein named of any and all liability with respect to the tenancy created hereunder (includingSecurity Deposit, without limitationits application and return, damages recoverable under California Civil Code Section 1951.2)and Tenant agrees to look solely to such grantee or transferee. It is further understood that this provision shall also apply to subsequent grantees and transferees.

Security Deposit. Upon The Security Deposit, which shall be paid upon execution of this Lease, Tenant shall pay to be held by Landlord the Security Deposit specified without liability for interest and not in Paragraph 2.d. above trust or in a separate account, as security for Tenant’s the performance of all by Tenant of Tenant’s covenants and obligations under this Lease; provided, however, that the . 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 Tenant’s defaultin case of default by ▇▇▇▇▇▇. Landlord shall not be required to segregate Upon 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 occurrence of any Event of Default by ▇▇▇▇▇▇, Landlord may, from time to time in its sole discretion, without prejudice to any other remedy, use and apply the Security Deposit to the extent necessary to make good any arrearages of rent and any other damage, injury, expense or liability suffered by Landlord by such Event of Default. Following any such application of the Security Deposit, Tenant shall pay to compensate Landlord for any damage Landlord incurs on demand as a result of Tenant’s failure Additional Rent the amount so applied in order to perform any of restore the Security Deposit to its covenants or obligations original amount. If Tenant is not 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 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 (i) Tenant shall have surrendered the tenancy created hereunder entire Premises to Landlord, (includingii) Landlord shall have inspected the Premises after such vacation, without limitationand (iii) Tenant shall have complied with all of the terms, damages recoverable under California Civil Code Section 1951.2)conditions and covenants in the Lease including payment of Basic Rental, Additional Rent, and accrued but unpaid late charges. If Landlord transfers its interest in the Premises during the Lease Term, Landlord shall assign the Security Deposit to the transferee and thereafter shall have no further liability for the return of such deposit.

Security Deposit. Upon execution of this Lease, Landlord acknowledges that it has received from Tenant shall pay to Landlord the Security Deposit specified in Paragraph 2.d. above as Deposit, which amount shall be security for Tenant’s the full and faithful performance and observance by Tenant of all of Tenant’s its covenants and obligations under this the Lease; provided, howeveras amended hereby. No interest shall be payable on the Security Deposit, and it is agreed and acknowledged by Tenant that 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 's damages upon in the case of default by Tenant’s default. Landlord shall not be required to segregate Upon 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 occurrence of Default or to compensate Landlord for any damage Landlord incurs as a result an event 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 default 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; providedamended hereby, 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 use, apply, or retain the whole or any part of the Security Deposit to compensate Landlord the extent required for damages the payment of any Base Rental and additional rent or any other sums to which Tenant is in default or for the payment of any other damage, injury, expense, or liability resulting from termination any event of default. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount necessary to restore the Security Deposit to its original amount. In the event that Tenant shall fully and faithfully comply with all of its covenants and obligations under this Lease, as amended hereby, the Security Deposit shall be returned to Tenant within thirty (30) days after the Expiration Date (or any permitted extensions thereof) and after delivery of possession of the Premises to Landlord in accordance with the terms hereof. In the event of a sale of the Building or a lease of the Building, subject to this Lease and provided that Landlord shall have obtained the tenancy created hereunder (includingagreement of the new landlord to be responsible for the return of the Security Deposit, without limitation, damages recoverable under California Civil Code Section 1951.2)Landlord shall be released from all liability for the return of the Security Deposit and Tenant shall look to the new landlord for the return of the Security Deposit. This provision shall apply to every transfer or assignment made of the Security Deposit to a new landlord.

Security Deposit. Upon In the event Tenant does not exercise, its first and/or second option to extend the Term pursuant to Paragraph 38.B. of this Lease, Tenant agrees to deposit with Landlord no later than twelve (12) months prior to the expiration of the Term, or the extended Term upon execution of this Lease, Tenant a security deposit as stated in the Basic Lease Information (the "Security Deposit"), which sum shall be held and owned by Landlord, without obligation to pay to Landlord the Security Deposit specified in Paragraph 2.d. above interest, as security for Tenant’s the performance of all of Tenant’s '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 incurred by Landlord in case of Tenant’s 's default. Upon the occurrence of any event of default by Tenant, Landlord may from time to time without prejudice to any other remedy provided herein or by law, use such fund as a credit to the extent necessary to credit against any arrears of Rent or other payments due to Landlord hereunder, and any other damage, injury, expense or liability caused by such event of default, and Tenant shall not be required pay to segregate Landlord, on demand, the amount so applied in order to restore the Security Deposit from to its other funds and no interest shall accrue or be payable to Tenant with respect theretooriginal amount. 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 Although the Security Deposit shall not constitute a bar or defense to any be deemed the property of Landlord’s remedies under this Lease or at law. In , any remaining balance of such event and upon written notice from deposit shall be returned by Landlord to Tenant specifying shall pay to Landlord, on demand, 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 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 Although the Security Deposit or shall be deemed the property of Landlord, any remaining balance thereof then held of such deposit shall returned 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 at 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 time after termination of this Lease that all of Tenant's obligations under this Lease have been fulfilled, reduced by such amounts as may be required by Landlord to remedy defaults on the part of Tenant in the payment of Rent or other obligations of Tenant under this Lease, to repair damage to the Premises, Building or Project caused by Tenant or any Tenant's Parties and to clean the tenancy created hereunder (including, without limitation, damages recoverable under California Civil Code Section 1951.2)Premises. Landlord may use and commingle the Security Deposit with other funds of Landlord.

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 execution of this Lease, Tenant shall pay to ---------------- deposit with Landlord in cash the Security Deposit specified amount set forth in Paragraph 2.d. above Section M of the Summary --------- as security for Tenant’s the performance by Tenant of all of Tenant’s covenants and its obligations under this Lease; provided, however, that the Security Deposit is and 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 prepayment of Tenant’s failure to perform any of its covenants or obligations hereunder, it being understood that any use of rent (the "Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies Deposit"). If Tenant defaults 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 other sum in default, the repair of any damage to the Premises caused by Tenant or the payment of any other amount which Landlord may spend or become obligated to spend by reason of Tenant's default or to compensate Landlord for damages resulting any other loss or damage which Landlord may suffer by reason of Tenant's default to the full extent permitted by law. To the extent any portion of the Security Deposit is used, Tenant shall within five (5) days after demand from termination Landlord restore the Security Deposit to its full amount. Landlord may keep the Security Deposit in its general funds. If Tenant shall perform all of its obligations under this Lease and return the tenancy created hereunder Premises to Landlord at the end of the Term, Landlord shall return all of the remaining Security Deposit to Tenant within thirty (including30) days after the end of the Term. The Security Facility:_____________ Deposit shall not serve as an advance payment of rent or a measure of Landlord's damages for any default under this Lease. If Landlord transfers its interest in the Project or this Lease, without limitationLandlord may transfer the Security Deposit to its transferee. Upon such transfer, damages recoverable under California Civil Code Landlord shall have no further obligation to return the Security Deposit. Tenant shall look solely to the new landlord for the return of the Security Deposit. Tenant covenants and agrees that it shall not assign or encumber or attempt to assign or encumber the Security Deposit and neither Landlord or its successors or assigns shall be bound by any such agreement, encumbrance, attempted assignment or attempted encumbrance. Landlord shall pay to Tenant (or, at Landlord's election, credit against Base Monthly Rent) interest on the cash Security Deposit held by Landlord in the amount of four percent (4%) per annum; provided, however, in the event Landlord fails to obtain by the second (2/nd/) anniversary of the Commencement Date an amendment to that certain Owner Participation and Development Agreement dated December 25, 1991 by and among the Redevelopment Agency of the City of Scotts Valley, the City of Scotts Valley and Borland International, Inc. that would permit Landlord, as transferee, to construct office and ancillary facility space of up to a total of 700,000 square feet on the Project (notwithstanding the limitation in Section 1951.21(C) thereof), then Landlord shall only be required to pay Tenant (or credit against Base Monthly Rent) interest in the amount of one half of a percent (.5%) per annum. Such amounts shall be paid or credited on each anniversary of the Commencement Date.