Common use of Lease Security Provisions Clause in Contracts

Lease Security Provisions. 3.3.1 On execution of this Lease, Tenant shall deliver in favor of Landlord a letter of credit in the sum specified in the definition of the term “Lease Security Deposit” (the “Letter of Credit”), as security for the full and faithful payment of all sums due under this Lease and the full and faithful performance of every covenant and condition of this Lease to be performed by Tenant; provided, however, commencing on the third (3rd) anniversary of the Commencement Date and on each anniversary of the Commencement Date thereafter, the amount of the Letter of Credit shall be reduced by Three Hundred Fifteen Thousand and No/100 Dollars ($315,000.00); provided that if Tenant is in default under this Lease as of any such anniversary of the Commencement Date (beyond the expiration of any applicable notice and cure periods), the amount of the Letter of Credit shall not be reduced unless and until such default is cured, and provided further that, if Tenant is entitled to the reduction of the Letter of Credit pursuant to the terms set forth herein, Landlord shall promptly deliver to the issuing bank a statement signed by an authorized party of Landlord authorizing the reduction of the Letter of Credit as permitted hereunder. Notwithstanding anything to the contrary in this Lease, the amount of the Letter of Credit shall not be reduced below One Million One Hundred Seventy Four Thousand One Hundred Sixty-Four and 78/100 Dollars ($1,174,164.78), and after the reduction of the Letter of Credit on the fifth (5th) anniversary of the Commencement Date, the Letter of Credit shall not be reduced further and shall remain at such amount for the remainder of the Lease Term. The Letter of Credit initially delivered pursuant to this paragraph and all substitutions, replacements and renewals of the Letter of Credit, must be consistent with and shall satisfy all the requirements in the letter of credit criteria in Rider 1, attached hereto. 3.3.2 If the Letter of Credit is not delivered to and in a form reasonably acceptable to Landlord within ten (10) Business Days after the execution of this Lease, Landlord may, at its election, exercised in its absolute discretion, (a) void the Lease for failure of a condition subsequent or (b) proceed with its rights and remedies for an Event(s) of Default (as defined below). 3.3.3 Landlord may draw on the Letter of Credit, in whole or in part at Landlord’s election, without advance notice to Tenant, at any time or from time to time, but only on or after (a) the occurrence of any Event of Default, (b) if Tenant, or anyone in possession of the Premises through Tenant, wrongfully holds over after the expiration or earlier termination of this Lease, (c) if Landlord is given notice by the issuing bank of the Letter of Credit that it is terminating the Letter of Credit, (d) if the issuing bank gives notice to Landlord that it will cease to act in that capacity, (e) if the Letter of Credit expires on a specified date by its terms and is not renewed or replaced at least thirty (30) days in advance of its expiration date, (f) to the extent permitted by law, in the event any bankruptcy, insolvency, reorganization or any other debtor creditor proceeding is instituted by or against Tenant or (g) as otherwise specified in or in connections with the letter of credit. Notwithstanding, any draw(s) on the Letter of Credit shall not exceed those amounts reasonably necessary to cure any such Event of Default. 3.3.4 Landlord may apply any sum drawn on the Letter of Credit to amounts owing to Landlord under this Lease in such order and priority as Landlord elects in its absolute discretion. If any of the proceeds drawn on the Letter of Credit are not applied immediately to sums owing to Landlord under this Lease, Landlord shall credit any such excess proceeds to future sums next due and owing to Landlord under this Lease. Tenant shall, within fifteen (15) Business Days after Landlord’s written demand, restore the amount of the Letter of Credit drawn to its then-current amount (taking into account any reduction(s) pursuant to Section 3.3.1, above). If Tenant does not restore the Letter of Credit to its original amount within the required time period, such non-restoration shall be considered an Event of Default. 3.3.5 Additionally, Landlord’s draw and application of all or any portion of the proceeds of the Letter of Credit shall not impair any other rights or remedies provided under this Lease or under applicable law and shall not be construed as a payment of liquidated damages. If Tenant shall have fully complied with all of the covenants and conditions of this Lease, the remaining balance of the Letter of Credit shall be returned to Tenant or, if Landlord has drawn on the Letter of Credit, the remaining proceeds of the Letter of Credit which are in excess of sums due the Landlord shall be repaid to Tenant, if not previously applied in accordance with Section 3.3.4, without interest, within thirty (30) Business Days after the expiration or termination of the Lease Term and delivery of possession of the Premises to Landlord in accordance with this Lease. 3.3.6 On any request by Landlord made during the Lease Term, Tenant shall cooperate in accomplishing any reasonable modification of the Letter of Credit requested by Landlord. If the Letter of Credit should be lost, mutilated, stolen or destroyed, Tenant shall cooperate in obtaining the issuance of a replacement. 3.3.7 Tenant shall not assign or grant any security interest in the Letter of Credit and any attempt to do so shall be void and of no effect. 3.3.8 In the event of a sale or transfer of Landlord’s estate or interest in the Land and Building, Landlord shall have the right to transfer the Letter of Credit to the vendee or the transferee, Tenant shall pay any transfer fees charged by the issuing bank and Landlord shall thereafter be considered released by Tenant from all liability for the return of the Letter of Credit, subject to applicable law. Tenant shall reasonably cooperate in effecting such transfer. 3.3.9 No mortgagee or purchaser of any or all of the Building at any foreclosure proceeding brought under the provisions of any mortgage shall (regardless of whether the Lease is at the time in question subordinated to the lien of any mortgage) be liable to Tenant or any other person for any or all amounts drawn against the Letter of Credit or any other or additional Lease Security Deposit or other payment made by Tenant under the provisions of this Lease), unless Landlord has actually delivered it in cash to such mortgagee or purchaser, as the case may be. 3.3.10 The parties hereto (1) recite that the Letter of Credit is not intended to serve as a security deposit and such Section 1950.7 and any and all other laws, rules and regulations applicable to security deposits in the commercial context (“Security Deposit Laws”) shall have no applicability or relevancy thereto and (2) waive any and all rights, duties and obligations either party may now or, in the future, will have relating to or arising from the Security Deposit Laws.

Lease Security Provisions. 3.3.1 On execution of this Lease, Tenant shall deliver in favor of Landlord a letter of credit in the sum specified in the definition of the term “Lease Security Deposit” (the “Letter of Credit”), as security for the full and faithful payment of all sums due under this Lease and the full and faithful performance of every covenant and condition of this Lease to be performed by Tenant; provided, however, commencing on the third (3rd) anniversary Tenant shall deliver a letter of the Commencement Date and on each anniversary of the Commencement Date thereafter, credit in the amount of the Letter of Credit shall be reduced by Three Five Hundred Fifteen Thirteen Thousand Eight Hundred Thirty-Seven and No/100 00/100 Dollars ($315,000.00); provided that if Tenant is 513,837.00) in default under this Lease as favor of any such anniversary of the Commencement Date (beyond the expiration of any applicable notice and cure periods), the amount of the Letter of Credit shall not be reduced unless and until such default is cured, and provided further that, if Tenant is entitled to the reduction of the Letter of Credit pursuant to the terms set forth herein, Landlord shall promptly deliver to the issuing bank a statement signed by an authorized party of Landlord authorizing the reduction of the Letter of Credit as permitted hereunder. Notwithstanding anything to the contrary in this Lease, the amount of the Letter of Credit shall not be reduced below One Million One Hundred Seventy Four Thousand One Hundred Sixty-Four and 78/100 Dollars ($1,174,164.78), and after the reduction of the Letter of Credit on the fifth (5th) anniversary of the Commencement Date, the Letter of Credit shall not be reduced further and shall remain at such amount for the remainder of the Lease TermLandlord. The Letter letter of Credit credit initially delivered pursuant to this paragraph and all substitutions, replacements and renewals of the Letter of Creditit, must be consistent with and shall satisfy all the requirements in the letter of credit criteria in Rider 1, attached set forth on Exhibit F hereto. 3.3.2 . The term “Letter of Credit” shall mean and refer to a letter of credit conforming to this subparagraph. If the a Letter of Credit is has not been delivered to and in a form reasonably acceptable to accepted by Landlord within ten (10) Business Days after on or before the full execution of this Lease, Landlord may, at its election, exercised in its absolute discretion, (a) void the Lease for failure of a condition subsequent or (b) proceed with its rights and remedies for an Event(s) of Default (as defined below). 3.3.3 Landlord may draw on the Letter of Credit, in whole or in part at Landlord’s election, without advance the failure to deliver such Letter of Credit may be treated by Landlord (a) as a condition subsequent to the effectiveness of this Lease such that this Lease shall be voidable by Landlord by notice to Tenant, Tenant at any time or from time prior to time, but only on or after (a) the occurrence of any Event of Default, (b) if Tenant, or anyone in possession of the Premises through Tenant, wrongfully holds over after the expiration or earlier termination of this Lease, (c) if Landlord is given notice by the issuing bank Landlord’s receipt of the Letter of Credit that it is terminating or (b) as Tenant Delay and an Event of Default. If Landlord elects to treat the Letter of Credit, (d) if the issuing bank gives notice failure to Landlord that it will cease to act in that capacity, (e) if deliver the Letter of Credit expires on a specified date by its terms and is not renewed or replaced at least thirty (30) days in advance execution of its expiration date, (f) to the extent permitted by law, in the event any bankruptcy, insolvency, reorganization or any other debtor creditor proceeding is instituted by or against Tenant or (g) as otherwise specified in or in connections with the letter of credit. Notwithstanding, any draw(s) on the Letter of Credit shall not exceed those amounts reasonably necessary to cure any such Event of Default. 3.3.4 Landlord may apply any sum drawn on the Letter of Credit to amounts owing to Landlord under this Lease in such order and priority as Landlord elects in its absolute discretion. If any of the proceeds drawn on the Letter of Credit are not applied immediately to sums owing to Landlord under this Lease, Landlord shall credit any such excess proceeds to future sums next due and owing to Landlord under this Lease. Tenant shall, within fifteen (15) Business Days after Landlord’s written demand, restore the amount of the Letter of Credit drawn to its then-current amount (taking into account any reduction(s) pursuant to Section 3.3.1, above). If Tenant does not restore the Letter of Credit to its original amount within the required time period, such non-restoration shall be considered an Event of Default. 3.3.5 Additionally, Landlord’s draw and application of all or any portion of the proceeds of the Letter of Credit shall not impair any other rights or remedies provided under this Lease or under applicable law and shall not be construed as a payment of liquidated damages. If Tenant shall have fully complied with all of the covenants and conditions of this Lease, the remaining balance of the Letter of Credit shall be returned to Tenant or, if Landlord has drawn on the Letter of Credit, the remaining proceeds of the Letter of Credit which are in excess of sums due the Landlord shall be repaid to Tenant, if not previously applied in accordance with Section 3.3.4, without interest, within thirty (30) Business Days after the expiration or termination of the Lease Term and delivery of possession of the Premises to Landlord in accordance with this Lease. 3.3.6 On any request by Landlord made during the Lease Term, Tenant shall cooperate in accomplishing any reasonable modification of the Letter of Credit requested by Landlord. If the Letter of Credit should be lost, mutilated, stolen or destroyed, Tenant shall cooperate in obtaining the issuance of a replacement. 3.3.7 Tenant shall not assign or grant any security interest in the Letter of Credit and any attempt to do so shall be void and of no effect. 3.3.8 In the event of a sale or transfer of Landlord’s estate or interest in the Land and Building, Landlord shall have may pursue all available rights and remedies, including the right to transfer specific performance and the Letter right to attach assets of Credit to the vendee or the transferee, Tenant shall pay any transfer fees charged by the issuing bank and Landlord shall thereafter be considered released by Tenant from all liability for the return of the Letter of Credit, subject to applicable law. Tenant shall reasonably cooperate in effecting such transferTenant. 3.3.9 No mortgagee or purchaser of any or all of the Building at any foreclosure proceeding brought under the provisions of any mortgage shall (regardless of whether the Lease is at the time in question subordinated to the lien of any mortgage) be liable to Tenant or any other person for any or all amounts drawn against the Letter of Credit or any other or additional Lease Security Deposit or other payment made by Tenant under the provisions of this Lease), unless Landlord has actually delivered it in cash to such mortgagee or purchaser, as the case may be. 3.3.10 The parties hereto (1) recite that the Letter of Credit is not intended to serve as a security deposit and such Section 1950.7 and any and all other laws, rules and regulations applicable to security deposits in the commercial context (“Security Deposit Laws”) shall have no applicability or relevancy thereto and (2) waive any and all rights, duties and obligations either party may now or, in the future, will have relating to or arising from the Security Deposit Laws.

Lease Security Provisions. 3.3.1 On execution of this Lease, Tenant shall deliver in favor of Landlord a letter of credit in the sum specified in the definition of the term “Lease Security Deposit” (the “Letter of Credit”), as As security for the full and faithful payment of all sums due under this Lease and the full and faithful performance of every covenant and condition of this Lease to be performed by Tenant; provided, however, commencing on the third (3rd) anniversary Tenant shall be required to deliver a letter of the Commencement Date and on each anniversary of the Commencement Date thereafter, credit in the amount of the Letter $425,000.00 in favor of Credit shall be reduced by Three Hundred Fifteen Thousand and No/100 Dollars ($315,000.00); provided that if Tenant is in default under this Lease as of any such anniversary of the Commencement Date (beyond the expiration of any applicable notice and cure periods), the amount of the Letter of Credit shall not be reduced unless and until such default is cured, and provided further that, if Tenant is entitled to the reduction of the Letter of Credit pursuant to the terms set forth herein, Landlord shall promptly deliver to the issuing bank a statement signed by an authorized party of Landlord authorizing the reduction of the Letter of Credit as permitted hereunder. Notwithstanding anything to the contrary in this Lease, the amount of the Letter of Credit shall not be reduced below One Million One Hundred Seventy Four Thousand One Hundred Sixty-Four and 78/100 Dollars ($1,174,164.78), and after the reduction of the Letter of Credit on the fifth (5th) anniversary of the Commencement Date, the Letter of Credit shall not be reduced further and shall remain at such amount for the remainder of the Lease TermLandlord. The Letter letter of Credit credit initially delivered pursuant to this paragraph and all substitutions, replacements and renewals of the Letter of Creditit, must be consistent with and shall satisfy all the requirements in the letter of credit criteria in Rider 1, attached hereto. 3.3.2 made Exhibit E. If the Letter a letter of Credit is not credit has been delivered to and in a form reasonably acceptable to accepted by Landlord within ten (10) Business Days after at or before the full execution of this Lease, it shall be deemed to satisfy the criteria appearing in Exhibit E. Landlord may, at its election, exercised in its absolute discretion, (a) void the Lease for failure of a condition subsequent or (b) proceed with its rights and remedies for an Event(s) of Default (as defined below). 3.3.3 Landlord may draw on agrees that the Letter of Credit issued by Silicon 3.1. The term “Letter of Credit, in whole or in part at Landlord’s election, without advance notice ” shall mean and refer to Tenant, at any time or from time a letter of credit conforming to time, but only this subparagraph. If a Letter of Credit has not been delivered to and accepted by Landlord on or after (a) before the occurrence of any Event of Default, (b) if Tenant, or anyone in possession of the Premises through Tenant, wrongfully holds over after the expiration or earlier termination full execution of this Lease, (c) if Landlord is given notice by the issuing bank of the Letter of Credit that it is terminating the Letter of Credit, (d) if the issuing bank gives notice to Landlord that it will cease to act in that capacity, (e) if the Letter of Credit expires on Tenant shall deliver a specified date by its terms and is not renewed or replaced at least thirty (30) days in advance of its expiration date, (f) to the extent permitted by law, in the event any bankruptcy, insolvency, reorganization or any other debtor creditor proceeding is instituted by or against Tenant or (g) as otherwise specified in or in connections with the letter of credit. Notwithstanding, any draw(s) on the Letter of Credit shall not exceed those amounts reasonably necessary to cure any such Event of Default. 3.3.4 Landlord may apply any sum drawn on the Letter of Credit to amounts owing to Landlord under this Lease in such order and priority as Landlord elects in its absolute discretion. If any within five (5) Business Days from the full execution of the proceeds drawn on the Letter of Credit are not applied immediately to sums owing to Landlord under this Lease, Landlord shall credit any such excess proceeds to future sums next due and owing to Landlord under this Lease. Tenant shall, within fifteen (15) Business Days after Landlord’s written demand, restore the amount of the Letter of Credit drawn to its then-current amount (taking into account any reduction(s) pursuant to Section 3.3.1, above). If Tenant does not restore the Letter of Credit to its original amount within the required time period, such non-restoration shall be considered an Event of Default. 3.3.5 Additionally, Landlord’s draw and application of all or any portion of the proceeds of the Letter of Credit shall not impair any other rights or remedies provided under this Lease or under applicable law and shall not be construed as a payment of liquidated damages. If Tenant shall have fully complied with all of the covenants and conditions of this Lease, the remaining balance of the Letter of Credit shall be returned to Tenant or, if Landlord has drawn on the Letter of Credit, the remaining proceeds of the Letter of Credit which are in excess of sums due the Landlord shall be repaid to Tenant, if not previously applied in accordance with Section 3.3.4, without interest, within thirty (30) Business Days after the expiration or termination of the Lease Term and Pending delivery of possession of the Premises to Landlord in accordance with this Lease. 3.3.6 On any request by Landlord made during the Lease Term, Tenant shall cooperate in accomplishing any reasonable modification of the Letter of Credit requested by Landlord. If the Letter of Credit should be lost, mutilated, stolen or destroyed, Tenant shall cooperate in obtaining the issuance of a replacement. 3.3.7 Tenant shall not assign or grant any security interest in the Letter of Credit and any attempt to do so shall be void and of no effect. 3.3.8 In the event of a sale or transfer of Landlord’s estate or interest in the Land and Building, Landlord shall have the right to transfer the Letter of Credit to the vendee or the transferee, Tenant shall pay any transfer fees charged by the issuing bank and Landlord shall thereafter be considered released by Tenant from all liability for the return of the Letter of Credit, subject to applicable law. Tenant shall reasonably cooperate in effecting such transfer. 3.3.9 No mortgagee or purchaser of any or all Landlord may defer payment of the Building at any foreclosure proceeding brought under the provisions Tenant Improvement Allowance. Timely delivery of any mortgage shall (regardless of whether the Lease is at the time in question subordinated to the lien of any mortgage) be liable to Tenant or any other person for any or all amounts drawn against the Letter of Credit or any other or additional Lease Security Deposit or other payment made by Tenant under shall, at Landlord’s election, be treated as a condition subsequent to the provisions effectiveness of this Lease), unless Lease such that this Lease shall be voidable by Landlord has actually delivered it in cash by notice to such mortgagee or purchaser, as the case may be. 3.3.10 The parties hereto (1) recite that Tenant if timely delivery of the Letter of Credit is does not intended occur or be treated by Landlord as an Event of Default. If Landlord elects to serve treat the failure to deliver the Letter of Credit in a timely manner as a security deposit an Event of Default, Landlord may pursue all available rights and such Section 1950.7 remedies, including the right to specific performance and any and all other laws, rules and regulations applicable the right to security deposits in the commercial context (“Security Deposit Laws”) shall have no applicability or relevancy thereto and (2) waive any and all rights, duties and obligations either party may now or, in the future, will have relating to or arising from the Security Deposit Lawsattach assets of Tenant.

Lease Security Provisions. 3.3.1 On execution of this Lease, Tenant shall deliver in favor of Landlord a letter of credit in the sum specified in the definition of the term “Lease Security Deposit” (the “Letter of Credit”), as security for the full and faithful payment of all sums due under this Lease and the full and faithful performance of every covenant and condition of this Lease to be performed by Tenant; provided, however, commencing on the third (3rd) anniversary Tenant shall deliver a letter of the Commencement Date and on each anniversary of the Commencement Date thereafter, credit in the amount of the Letter of Credit shall be reduced by Three Seven Hundred Fifteen Thousand and No/100 00/100 Dollars ($315,000.00); provided that if Tenant is 700,000.00) in default under this Lease as favor of any such anniversary of the Commencement Date (beyond the expiration of any applicable notice and cure periods), the amount of the Letter of Credit shall not be reduced unless and until such default is cured, and provided further that, if Tenant is entitled to the reduction of the Letter of Credit pursuant to the terms set forth herein, Landlord shall promptly deliver to the issuing bank a statement signed by an authorized party of Landlord authorizing the reduction of the Letter of Credit as permitted hereunder. Notwithstanding anything to the contrary in this Lease, the amount of the Letter of Credit shall not be reduced below One Million One Hundred Seventy Four Thousand One Hundred Sixty-Four and 78/100 Dollars ($1,174,164.78), and after the reduction of the Letter of Credit on the fifth (5th) anniversary of the Commencement Date, the Letter of Credit shall not be reduced further and shall remain at such amount for the remainder of the Lease TermLandlord. The Letter letter of Credit credit initially delivered pursuant to this paragraph and all substitutions, replacements and renewals of the Letter of Creditit, must be consistent with and shall satisfy all the requirements in the letter of credit criteria in Rider 1, attached set forth on Exhibit F hereto. 3.3.2 . The term “Letter of Credit” shall mean and refer to a letter of credit conforming to this subparagraph. If the a Letter of Credit is has not been delivered to and in a form reasonably acceptable to accepted by Landlord within ten (10) Business Days after on or before the full execution of this Lease, Landlord may, at its election, exercised in its absolute discretion, (a) void the Lease for failure of a condition subsequent or (b) proceed with its rights and remedies for an Event(s) of Default (as defined below). 3.3.3 Landlord may draw on the Letter of Credit, in whole or in part at Landlord’s election, without advance the failure to deliver such Letter of Credit may be treated by Landlord (a) as a condition subsequent to the effectiveness of this Lease such that this Lease shall be voidable by Landlord by notice to Tenant, Tenant at any time or from time prior to time, but only on or after (a) the occurrence of any Event of Default, (b) if Tenant, or anyone in possession of the Premises through Tenant, wrongfully holds over after the expiration or earlier termination of this Lease, (c) if Landlord is given notice by the issuing bank Landlord’s receipt of the Letter of Credit that it is terminating or (b) as an Event of Default. If Landlord elects to treat the Letter of Credit, (d) if the issuing bank gives notice failure to Landlord that it will cease to act in that capacity, (e) if deliver the Letter of Credit expires on a specified date by its terms and is not renewed or replaced at least thirty (30) days in advance execution of its expiration date, (f) to the extent permitted by law, in the event any bankruptcy, insolvency, reorganization or any other debtor creditor proceeding is instituted by or against Tenant or (g) as otherwise specified in or in connections with the letter of credit. Notwithstanding, any draw(s) on the Letter of Credit shall not exceed those amounts reasonably necessary to cure any such Event of Default. 3.3.4 Landlord may apply any sum drawn on the Letter of Credit to amounts owing to Landlord under this Lease in such order and priority as Landlord elects in its absolute discretion. If any of the proceeds drawn on the Letter of Credit are not applied immediately to sums owing to Landlord under this Lease, Landlord shall credit any such excess proceeds to future sums next due and owing to Landlord under this Lease. Tenant shall, within fifteen (15) Business Days after Landlord’s written demand, restore the amount of the Letter of Credit drawn to its then-current amount (taking into account any reduction(s) pursuant to Section 3.3.1, above). If Tenant does not restore the Letter of Credit to its original amount within the required time period, such non-restoration shall be considered an Event of Default. 3.3.5 Additionally, Landlord’s draw and application of all or any portion of the proceeds of the Letter of Credit shall not impair any other rights or remedies provided under this Lease or under applicable law and shall not be construed as a payment of liquidated damages. If Tenant shall have fully complied with all of the covenants and conditions of this Lease, the remaining balance of the Letter of Credit shall be returned to Tenant or, if Landlord has drawn on the Letter of Credit, the remaining proceeds of the Letter of Credit which are in excess of sums due the Landlord shall be repaid to Tenant, if not previously applied in accordance with Section 3.3.4, without interest, within thirty (30) Business Days after the expiration or termination of the Lease Term and delivery of possession of the Premises to Landlord in accordance with this Lease. 3.3.6 On any request by Landlord made during the Lease Term, Tenant shall cooperate in accomplishing any reasonable modification of the Letter of Credit requested by Landlord. If the Letter of Credit should be lost, mutilated, stolen or destroyed, Tenant shall cooperate in obtaining the issuance of a replacement. 3.3.7 Tenant shall not assign or grant any security interest in the Letter of Credit and any attempt to do so shall be void and of no effect. 3.3.8 In the event of a sale or transfer of Landlord’s estate or interest in the Land and Building, Landlord shall have may pursue all available rights and remedies, including the right to transfer specific performance and the Letter right to attach assets of Credit to the vendee or the transferee, Tenant shall pay any transfer fees charged by the issuing bank and Landlord shall thereafter be considered released by Tenant from all liability for the return Tenant. Pending delivery of the Letter of Credit, subject to applicable law. Landlord also may defer contracting for Tenant shall reasonably cooperate in effecting such transferImprovements and/or suspend work on same. 3.3.9 No mortgagee or purchaser of any or all of the Building at any foreclosure proceeding brought under the provisions of any mortgage shall (regardless of whether the Lease is at the time in question subordinated to the lien of any mortgage) be liable to Tenant or any other person for any or all amounts drawn against the Letter of Credit or any other or additional Lease Security Deposit or other payment made by Tenant under the provisions of this Lease), unless Landlord has actually delivered it in cash to such mortgagee or purchaser, as the case may be. 3.3.10 The parties hereto (1) recite that the Letter of Credit is not intended to serve as a security deposit and such Section 1950.7 and any and all other laws, rules and regulations applicable to security deposits in the commercial context (“Security Deposit Laws”) shall have no applicability or relevancy thereto and (2) waive any and all rights, duties and obligations either party may now or, in the future, will have relating to or arising from the Security Deposit Laws.

Lease Security Provisions. 3.3.1 On execution of this Lease, Tenant shall deliver in favor of Landlord a letter of credit in the sum specified in the definition of the term “Lease Security Deposit” (the “Letter of Credit”), as As security for the full and faithful payment of all sums due under this Lease and the full and faithful performance of every covenant and condition of this Lease to be performed by Tenant; provided, however, commencing on the third (3rd) anniversary Tenant shall be required to deliver a letter of the Commencement Date and on each anniversary of the Commencement Date thereafter, credit in the amount of the Letter of Credit shall be reduced by Three Hundred Fifteen Twenty-Two Thousand Three Hundred Forty-One and No/100 90/100 Dollars ($315,000.00); provided that if Tenant is 322,341.90) in default under this Lease favor of Landlord as of any such anniversary of a lease security deposit (as the Commencement Date (beyond the expiration of any applicable notice and cure periods)same may be adjusted pursuant to Section 3.3.10, the amount of the Letter of Credit shall not be reduced unless and until such default is cured, and provided further that, if Tenant is entitled to the reduction of the Letter of Credit pursuant to the terms set forth herein, Landlord shall promptly deliver to the issuing bank a statement signed by an authorized party of Landlord authorizing the reduction of the Letter of Credit as permitted hereunder. Notwithstanding anything to the contrary in this Lease, the amount of the Letter of Credit shall not be reduced below One Million One Hundred Seventy Four Thousand One Hundred Sixty-Four and 78/100 Dollars ($1,174,164.78“Lease Security Deposit”), and after the reduction of the Letter of Credit on the fifth (5th) anniversary of the Commencement Date, the Letter of Credit shall not be reduced further and shall remain at such amount for the remainder of the Lease Term. The Letter letter of Credit credit initially delivered pursuant to this paragraph and all substitutions, replacements and renewals of the Letter of Creditit, must be consistent with and shall satisfy all the requirements in the letter of credit criteria set forth in Rider 1, attached hereto. 3.3.2 Exhibit G and incorporated by reference herein. If the Letter a letter of Credit is not credit has been delivered to and in a form reasonably acceptable to accepted by Landlord within ten (10) Business Days after at or before the full execution of this Lease, Landlord may, at its election, exercised it shall be deemed to satisfy the criteria appearing in its absolute discretion, (a) void the Lease for failure of a condition subsequent or (b) proceed with its rights and remedies for an Event(s) of Default (as defined below). 3.3.3 Landlord may draw on the Exhibit G. The term “Letter of Credit, in whole or in part at Landlord’s election, without advance notice ” shall mean and refer to Tenant, at any time or from time a letter of credit conforming to time, but only this subparagraph. If a Letter of Credit has not been delivered to and accepted by Landlord on or after (a) before the occurrence of any Event of Default, (b) if Tenant, or anyone in possession of the Premises through Tenant, wrongfully holds over after the expiration or earlier termination full execution of this Lease, (c) if Landlord is given notice by the issuing bank of the Letter of Credit that it is terminating the Letter of Credit, (d) if the issuing bank gives notice to Landlord that it will cease to act in that capacity, (e) if the Letter of Credit expires on Tenant shall deliver a specified date by its terms and is not renewed or replaced at least thirty (30) days in advance of its expiration date, (f) to the extent permitted by law, in the event any bankruptcy, insolvency, reorganization or any other debtor creditor proceeding is instituted by or against Tenant or (g) as otherwise specified in or in connections with the letter of credit. Notwithstanding, any draw(s) on the Letter of Credit shall not exceed those amounts reasonably necessary to cure any such Event of Default. 3.3.4 Landlord may apply any sum drawn on the Letter of Credit to amounts owing to Landlord under this Lease in such order and priority as Landlord elects in its absolute discretion. If any of the proceeds drawn on the Letter of Credit are not applied immediately to sums owing to Landlord under this Lease, Landlord shall credit any such excess proceeds to future sums next due and owing to Landlord under this Lease. Tenant shall, within fifteen (15) Business Days after Landlord’s written demand, restore days from the amount of the Letter of Credit drawn to its then-current amount (taking into account any reduction(s) pursuant to Section 3.3.1, above)Effective Date. If Tenant does not restore the Letter of Credit to its original amount within the required time period, Pending such non-restoration shall be considered an Event of Default. 3.3.5 Additionally, Landlord’s draw and application of all or any portion of the proceeds of the Letter of Credit shall not impair any other rights or remedies provided under this Lease or under applicable law and shall not be construed as a payment of liquidated damages. If Tenant shall have fully complied with all of the covenants and conditions of this Lease, the remaining balance of the Letter of Credit shall be returned to Tenant or, if Landlord has drawn on the Letter of Credit, the remaining proceeds of the Letter of Credit which are in excess of sums due the Landlord shall be repaid to Tenant, if not previously applied in accordance with Section 3.3.4, without interest, within thirty (30) Business Days after the expiration or termination of the Lease Term and delivery of possession of the Premises to Landlord in accordance with this Lease. 3.3.6 On any request by Landlord made during the Lease Term, Tenant shall cooperate in accomplishing any reasonable modification of the Letter of Credit requested by Landlord. If the Letter of Credit should be lost, mutilated, stolen or destroyed, Tenant shall cooperate in obtaining the issuance of a replacement. 3.3.7 Tenant shall not assign or grant any security interest in the Letter of Credit and any attempt to do so shall be void and of no effect. 3.3.8 In the event of a sale or transfer of Landlord’s estate or interest in the Land and Building, Landlord shall have the right to transfer the Letter of Credit to the vendee or the transferee, Tenant shall pay any transfer fees charged by the issuing bank and Landlord shall thereafter be considered released by Tenant from all liability for the return of the Letter of Credit, subject to applicable lawLandlord may defer funding the Tenant Improvement Allowance. Tenant shall reasonably cooperate in effecting such transfer. 3.3.9 No mortgagee or purchaser Timely delivery of any or all of the Building at any foreclosure proceeding brought under the provisions of any mortgage shall (regardless of whether the Lease is at the time in question subordinated to the lien of any mortgage) be liable to Tenant or any other person for any or all amounts drawn against the Letter of Credit or any other or additional Lease Security Deposit or other payment made by Tenant under shall, at Landlord’s election, (a) be treated as a condition subsequent to the provisions effectiveness of this Lease), unless Lease such that this Lease shall be voidable by Landlord has actually delivered it in cash by notice to such mortgagee or purchaser, as the case may be. 3.3.10 The parties hereto (1) recite that Tenant if timely delivery of the Letter of Credit is does not intended occur or (b) be treated by Landlord as an Event of Default. If Landlord elects to serve treat the failure to deliver the Letter of Credit in a timely manner as a security deposit an Event of Default, Landlord may pursue all available rights and such Section 1950.7 remedies, including the right to specific performance and any and all other laws, rules and regulations applicable the right to security deposits attach assets of Tenant located in the commercial context (“Security Deposit Laws”) shall have no applicability or relevancy thereto and (2) waive any and all rights, duties and obligations either party may now or, in the future, will have relating to or arising from the Security Deposit LawsPremises.